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Chapter 16
Designing and
Managing
Integrated
Marketing
Communications
PowerPoint by Yu Hongyan
Business School of Jilin University
Objectives
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Learn the major steps in developing an effective
integrated marketing communications program.
Understand the steps involved in developing an
advertising program.
Learn how companies can exploit the marketing
potential of sales promotion, public relations,
direct marketing, and e-marketing.
Marketing Communications
Direct
Marketing
Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Discussion Scenario
Research has shown that many people treat
their pets as they would true members of the
family.
Suppose you opened a bakery that made only
nutritional pet treats, doggy birthday cakes and
“cheesecakes”, and made-to-order pet food.
How could you use each of the previously
mentioned marketing communications platforms
in your business?
Developing Effective Marketing
Communications
Steps in Marketing Communications
Program Development
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Identify target audience
Determine objectives of
communication
Design the message
Select communication
channels
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Establish the budget
Select the marketing
communications mix
Measure results
Manage the IMC process
Developing Effective Marketing
Communications
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Step 1: Identifying the target audience
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Includes assessing the audience’s
perceptions of the company, product, and
competitors’ company/product image
Step 2: Cognitive, affective, and
behavioral objectives may be set
Step 3: AIDA model guides message
design
Developing Effective Marketing
Communications
Affective
Beliefs
Knowledge
Feelings
Emotions
Objectives
Behavioral
Cognitive
Intentions
Actions
Developing Effective Marketing
Communications
Figure 16-1:
Response
Hierarchy Models
Developing Effective Marketing
Communications
Message Design
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Content
Structure
Format
Source
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Message content
decisions involve the
selection of appeal,
theme, idea, or USP
Types of appeals
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Rational appeals
Emotional appeals
Moral appeals
Discussion Scenario
Consider the pet bakery example
discussed earlier in this presentation.
What tactics would you use to make
rational, emotional and/or moral appeals?
Which type of appeal would you favor
using and why?
Developing Effective Marketing
Communications
Message Design
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Content
Structure
Format
Source
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One-sided vs. twosided messages
Order of argument
presentation
Developing Effective Marketing
Communications
Message Design
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Content
Structure
Format
Source
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Message format decisions
vary with the type of
media, but may include:
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Graphics, visuals
Headline, copy or script
Sound effects,
voice qualities
Shape, scent,
texture of package
Developing Effective Marketing
Communications
Message Design
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Content
Structure
Format
Source
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Message source
characteristics can
influence attention
and recall
Factors underlying
perceptions of
source credibility:
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Expertise
Trustworthiness
Likability
Developing Effective Marketing
Communications
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Step 4: Selecting Communication
Channels
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Personal communication channels
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Effectiveness derives from personalization and
feedback
Several methods of stimulating personal
communication channels exist
Nonpersonal communication channels
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Influence derives from two-step flow-ofcommunication process
Developing Effective Marketing
Communications
Methods of Stimulating Personal
Communication
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Devoting extra effort to
influential individuals or
companies
Creating opinion leaders
Working through influential
community members
Using influential people in
testimonial advertising
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Developing advertising with
high “conversation value”
Use viral marketing
Developing word-of-mouth
referral channels
Establishing an electronic
forum
Discussion Scenario
Once again, think back to the pet bakery
example discussed earlier in this presentation.
What specific methods would you undertake to
stimulate personal communication, and how
would you go about implementation?
Developing Effective Marketing
Communications
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Step 5: Establishing the Marketing
Communications Budget
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Affordability method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method
Step 6: Deciding on the Marketing
Communications Mix
Developing Effective Marketing
Communications
Figure 16-2:
Cost-Effectiveness of Different Promotional Tools at
Different Buyer-Readiness Stages
Developing Effective Marketing
Communications
Communications Mix
Selection
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Types of promotional
tools
 Selection factors
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Advertising
Sales promotion
Public relations and
publicity
Direct marketing
Personal selling
Developing Effective Marketing
Communications
Communications Mix
Selection
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Types of promotional
tools
Selection factors
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Consumer vs. business
market
Stage of buyer
readiness
Stage of product life
cycle
Market rank
Developing Effective Marketing
Communications
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Step 7: Measure Results
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Recognition, recall, attitudes, behavioral responses
Step 8: Manage the Integrated Marketing
Communications Process
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Provides stronger message consistency and
greater sales impact
Improves firms’ ability to reach right customers at
right time with right message
Developing and Managing the
Advertising Campaign
Figure 16-3:
The Five Ms of Advertising
Developing and Managing the
Advertising Campaign
The Five Ms of
Advertising
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Objectives can be
classified by aim:
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Mission
Money
Message
Media
Measurement
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Inform
Persuade
Remind
Reinforce
Developing and Managing the
Advertising Campaign
The Five Ms of
Advertising
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Factors considered
when budget-setting:
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Mission
Money
Message
Media
Measurement
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Stage of product life
cycle
Market share and
consumer base
Competition and clutter
Advertising frequency
Product substitutability
Developing and Managing the
Advertising Campaign
The Five Ms of
Advertising
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Mission
Money
Message
Media
Measurement
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Factors considered
when choosing the
advertising message:
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Message generation
Message evaluation and
selection
Message execution
Social responsibility
review
Developing and Managing the
Advertising Campaign
The Five Ms of
Advertising
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Mission
Money
Message
Media
Measurement
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Developing media
strategy involves:
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Deciding on reach,
frequency, and impact
Selecting media and
vehicles
Determining media
timing
Deciding on
geographical media
allocation
Developing and Managing the
Advertising Campaign
Newspapers
Internet
Radio
Direct Mail
Newsletters
Major
Media
Types
Magazines
Outdoor
Brochures
Television
Telephone
Yellow Pages
Developing and Managing the
Advertising Campaign
Does satellite
radio
threaten the
future of
radio
advertising?
Developing and Managing the
Advertising Campaign
Wireless
technologies
have recently
emerged as a
new media
channel
Developing and Managing the
Advertising Campaign
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Deciding on Media Categories
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Media Timing Decisions
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Target audience’s media habits, nature of the
product and message, cost
Macroscheduling vs. microscheduling
Continuity, concentration, flighting, and
pulsing scheduling options
Deciding on Geographical Allocation
Developing and Managing the
Advertising Campaign
The Five Ms of
Advertising
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Evaluating advertising
effectiveness
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Mission
Money
Message
Media
Measurement
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Communication-effect
research
Sales-effect research
Developing and Managing the
Advertising Campaign
Figure 16-4:
Formula for Measuring Sales Impact of Advertising
Sales Promotion
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Sales promotions are short-term incentives
designed to stimulate purchase among
consumers or trade
Purpose of sales promotion
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Attract new triers or brand switchers
Reward loyal customers
Increase repurchase rates
Sales Promotion
Technology
simplifies
coupon
redemption
for online
consumers
Sales Promotion
Steps in Sales Promotion
Program Development
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Establish objectives
Select consumerpromotion tools
Select trade-promotion
tools
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Select business- and
sales force promotion
tools
Develop the program
Pretest the program
 Implement and evaluate the program
Sales Promotion
Cross-Promotions
Premiums
Prizes
Samples
Product Warranties
Tie-in Promotions
Major
Consumer
Sales
Promotion
Tools
Cash Refunds
Coupons
Free Trials
Patronage Awards
POP Displays & Demonstrations
Public Relations
Public relations activities promote or
protect the image of the firm via:
Product Publicity
Counseling
Public Relations
Lobbying
Corporate Communications
Public Relations
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Marketing Public Relations (MPR)
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Plays an important role in
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New product launches
Repositioning of mature brand
Building interest in product category
Influencing specific target groups
Defending products with public problems
Building the corporate image
Three Major MPR Decisions
Public Relations
Major Public Relations Tools
News
Events
Speeches
Publications
Sponsorships
Identity Media
Public-service Activities
Direct Marketing
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Direct marketing uses consumer-direct
channels to reach and deliver offerings to
consumers without intermediaries.
Direct marketing is growing and offers
consumers key benefits.
Firms are recognizing the importance of
integrated direct marketing efforts.
Direct Marketing Channels
Major Direct Marketing Tools
Face-to-Face
Direct Mail
Catalog
Online
Kiosk
Telemarketing
TV Marketing
Direct Marketing
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Steps in Developing a Direct-Mail Campaign:
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Step
Step
Step
Step
Step
1:
2:
3:
4:
5:
Set objectives
Identify target markets
Define the offer
Test the elements
Measure results