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Chapter 16 Designing and Managing Integrated Marketing Communications PowerPoint by Yu Hongyan Business School of Jilin University Objectives 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 Identify target audience Determine objectives of communication Design the message Select communication channels Establish the budget Select the marketing communications mix Measure results Manage the IMC process Developing Effective Marketing Communications Step 1: Identifying the target audience 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 Content Structure Format Source Message content decisions involve the selection of appeal, theme, idea, or USP Types of appeals 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 Content Structure Format Source One-sided vs. twosided messages Order of argument presentation Developing Effective Marketing Communications Message Design Content Structure Format Source Message format decisions vary with the type of media, but may include: Graphics, visuals Headline, copy or script Sound effects, voice qualities Shape, scent, texture of package Developing Effective Marketing Communications Message Design Content Structure Format Source Message source characteristics can influence attention and recall Factors underlying perceptions of source credibility: Expertise Trustworthiness Likability Developing Effective Marketing Communications Step 4: Selecting Communication Channels Personal communication channels Effectiveness derives from personalization and feedback Several methods of stimulating personal communication channels exist Nonpersonal communication channels Influence derives from two-step flow-ofcommunication process Developing Effective Marketing Communications Methods of Stimulating Personal Communication Devoting extra effort to influential individuals or companies Creating opinion leaders Working through influential community members Using influential people in testimonial advertising 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 Step 5: Establishing the Marketing Communications Budget 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 Types of promotional tools Selection factors Advertising Sales promotion Public relations and publicity Direct marketing Personal selling Developing Effective Marketing Communications Communications Mix Selection Types of promotional tools Selection factors Consumer vs. business market Stage of buyer readiness Stage of product life cycle Market rank Developing Effective Marketing Communications Step 7: Measure Results Recognition, recall, attitudes, behavioral responses Step 8: Manage the Integrated Marketing Communications Process 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 Objectives can be classified by aim: Mission Money Message Media Measurement Inform Persuade Remind Reinforce Developing and Managing the Advertising Campaign The Five Ms of Advertising Factors considered when budget-setting: Mission Money Message Media Measurement 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 Mission Money Message Media Measurement Factors considered when choosing the advertising message: Message generation Message evaluation and selection Message execution Social responsibility review Developing and Managing the Advertising Campaign The Five Ms of Advertising Mission Money Message Media Measurement Developing media strategy involves: 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 Deciding on Media Categories Media Timing Decisions 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 Evaluating advertising effectiveness Mission Money Message Media Measurement Communication-effect research Sales-effect research Developing and Managing the Advertising Campaign Figure 16-4: Formula for Measuring Sales Impact of Advertising Sales Promotion Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade Purpose of sales promotion 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 Establish objectives Select consumerpromotion tools Select trade-promotion tools 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 Marketing Public Relations (MPR) Plays an important role in 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 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 Steps in Developing a Direct-Mail Campaign: Step Step Step Step Step 1: 2: 3: 4: 5: Set objectives Identify target markets Define the offer Test the elements Measure results