Download What is Marketing?

Marketing: An Introduction
Second Canadian Edition
Armstrong, Kotler, Cunningham, Mitchell and Buchwitz
Chapter Twelve
Integrated Marketing
Communications
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Copyright © 2007 Pearson Education Canada
Looking Ahead
• Explain why it is important for organizations to
integrate their marketing communications.
• Describe and discuss the major decisions involved
in developing an advertising program.
• List the major marketing communications goals
achieved through sales promotions.
• List and describe the steps in the personal selling
process.
• Discuss the major forms of direct response
marketing.
• Explain how companies use public relations to
communicate with their publics.
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Marketing Communications Mix
• Advertising.
– Any paid form of non-personal presentation
and promotion of ideas, goods or services
by an identified sponsor.
• Sales Promotion.
– Short-term incentives to encourage the
purchase or sale of a product or service.
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Marketing Communications Mix
• Public relations.
– Building good relations with the company’s
various publics by obtaining favorable
publicity, building up a good corporate
image and handling or heading off
unfavourable rumors, stories and events.
• Personal selling.
– Personal presentation by the firm’s sales
force for the purpose of making sales and
building customer relationships.
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Marketing Communication Mix
• Direct Marketing.
– Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships—the use of
telephone, mail, fax, e-mail, the Internet and
other tools to communicate directly with
specific consumers.
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The Changing Environment
• Two factors are changing the face of
today’s marketing communications:
– Vast improvements in information
technology are speeding the movement
toward segmented marketing
– As mass markets have fragmented,
marketers are shifting away from mass
marketing.
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Integrated Communications
• Response to fragmented mass markets
and new technologies.
• Allows promotions to be more targeted.
• Integrated means “fits together.”
– Message is consistent across all channels.
– Generate leverage through repetition and
multiple sources with the same message.
• Promotional mix must be coordinated
with other marketing mix elements.
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The Need for IMC
• Using IMC, the company carefully
integrates and coordinates its many
communication channels to deliver a
clear, consistent and compelling
message about the organization and its
brands.
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Marketing Agencies
• Nature of marketing agencies is
changing.
• Past habit was to have different
agencies. working on different
promotional elements.
– Result was more ineffective than an IMC
approach.
• Today’s agencies are striving to provide
IMC strategies and services.
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IMC Process
• Managing the customer relationship
over time.
– Start with audit.
– Assess the influence of each promotional
tool on the target market at each stage of
the buying process.
– Blend all elements into an integrated mix.
– Take into consideration product, distribution
and price.
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Promotional Strategies
• Push strategy:
– Promotional effort to channel members to
stock, promote products to consumers.
– Personal selling and trade promotiondriven.
• Pull strategy:
– Promotional effort to appeal directly to
consumers.
– Advertising and sales promotion-driven.
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Setting the Advertising Budget
• Affordable.
– Based on what the company thinks it can afford.
• Percentage-of-sales.
– Based on a percentage of current or forecasted
sales.
• Competitive-parity.
– Set budget to match competitors.
• Objective-and-task.
– Set objectives, determine tasks to achieve
objectives, sum of task costs equals budget.
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Advertising
• Reach large masses of geographically
dispersed.
• Allows for repetition and targeting of
audience.
• Builds awareness, image, positioning.
• Provides wide artistic possibilities.
• Can be expensive, impersonal, one-way.
• Media fragmentation makes finding large
audience difficult.
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Setting Advertising Objectives
• An advertising objective is a specific
communication task to be accomplished
with a specific target audience during a
specific period of time.
• Classified by purpose:
– Inform.
– Persuade.
– Compare.
– Remind.
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Developing Advertising Strategy
• Whether advertising should be an
element in an IMC campaign.
• If yes, then strategy consists of two
major elements:
– Creating advertising messages.
– Selecting advertising media.
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The Message Strategy
• Need a good message to communicate.
• Break through advertising clutter.
• Media proliferation has made attracting
attention very difficult for advertisers.
• Identify customer benefits related to
product’s positioning.
• Need a creative concept, or “big idea” to
express
that message.
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Message Execution
• Typical approaches:
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–
–
–
–
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Slice of life.
Lifestyle.
Fantasy.
Mood or image.
Musical.
Personality symbol.
– Technical expertise.
– Scientific evidence.
– Testimonial evidence
or endorsement.
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Selecting Advertising Media
• Reach.
– Percentage of people exposed to ad.
• Frequency.
– Number of times a person is exposed to ad.
• Media impact.
– The qualitative value of a message
exposure through a given medium.
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Choosing Media Type
• Newspapers, magazines, television, radio,
outdoors, direct mail, online.
• Factors to consider:
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–
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Media habits of target consumers.
Nature of the product.
Type of message.
Cost.
• Media vehicles-- specific media within each
general media type.
• Media timing – schedules, seasons, patterns.
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Evaluating Advertising
• Ultimate test is whether sales have
increased.
• Measure before and after an ad
campaign to measure results.
• Online advertising the easiest to measure
based on conversion rates and the ability
to prompt immediate calls to action.
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International Advertising
• Think globally, but act locally.
• Consider language, cultural differences.
• Media costs and availability can vary.
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Sales Promotion
• Coupons, contests, premiums,
incentives.
• Used to attract attention.
• Provide incentive for trial or purchase.
• Generates results now versus later.
• Effectiveness easier to track than
advertising.
• May detract from brand equity and
loyalty.
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Sales Promotion Objectives
• Consumer: increase short-term sales or
help build long-term market share.
• Trade: get retailers to:
– carry new items and more inventory.
– advertise products.
– give products more shelf space.
– buy ahead.
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Personal Selling
• Personal, flexible, two-way
communication, provides direct feedback.
• Builds preference, conviction, action.
• Suited to complex, higher priced
products.
• Basis for building a buyer relationship.
• Most expensive on a per contact basis.
• Requires long-term commitment and
ongoing management.
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Sales Force Organization
• Territorial – each person is assigned a
geographic territory.
• Product – salespeople specialize in selling a
particular product.
• Customer – salespeople specialize in selling
to particular types of customers.
• Outside – salespeople work in the field.
• Inside – salespeople sell via phone or email.
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The Personal Selling Process
• Prospecting.
– Identify qualified potential customers.
• Pre-approach.
– Learn as much as possible about customer first.
• Approach.
– Meet the customer for the first time.
• Presentation.
– Tell the “product story” to the buyer, highlighting
customer benefits.
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The Personal Selling Process
• Handling objections.
– Seek out, clarify and overcome customer
objections to buying.
• Closing.
– The salesperson asks the customer for an order.
• Follow-up.
– The salesperson follows up after the sale to ensure
customer satisfaction and repeat business.
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Direct Response
• Direct connections with carefully
targeted individual consumers.
• Immediate and interactive.
• Cultivate lasting customer relationships.
• Can supplement to existing channels.
• Fastest growing form of marketing.
• Low-cost and efficient.
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Database Marketing
• An organized collection of
comprehensive data about individual
customers or prospects, including
geographic, demographic,
psychographic and behavioural data.
• Allows marketing messages to be finetuned to specific groups of people.
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Telemarketing
• Using the telephone to connect directly.
• Used in both consumer and B2B
markets.
• Can be outbound or inbound calls.
• Used for both sales and customer
service.
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Direct Mail Marketing
• Involves sending an offer,
announcement, reminder or other item to
a person at a particular address.
• Permits high target-market selectivity.
• Personal and flexible.
• Easy to measure results.
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Catalogue Marketing
• Direct marketing through print, video or
electronic catalogues that are mailed
directly.
• With the Internet, more and more
catalogues going electronic.
• Print catalogues still the primary medium.
• Harder to attract new customers with
Internet catalogues.
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Direct-Response TV Marketing
• Television spots that persuasively
describe a product and give customers a
toll-free number for ordering.
– Infomercials.
– The Shopping Channel.
– Kiosks.
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Public Policy and Ethics
• Key issues include:
– Misleading consumers including deception
and fraud.
– Taking advantage of impulse buyers, those
addicted to TV and unsophisticated buyers.
– Privacy and protection of personal
information.
– Invasion of privacy at home and the “do not
call” registry.
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Public Relations
• Public relations involves building good
relations with the company’s various
publics by obtaining favorable publicity,
building up a good corporate image and
handling or heading off unfavourable
rumors, stories and events.
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Public Relations
• News stories, features, press
conferences, annual reports, corporate
website.
• Seen as more believable than
advertising messages.
• More cost efficient.
• Can be difficult to control.
• Can be proactive and reactive.
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Public Relations Functions
• Press relations – get attention of media.
• Product publicity – publicizing new
products.
• Public affairs – manage national or local
community relations.
• Lobbying – manage relations with
legislators and officials.
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Public Relations Functions
• Investor relations – manage relations
with shareholders and financial
community.
• Development – fund raising for nonprofits.
• Crisis management – manage reaction
to sudden, bad publicity through
problems with products, employees or
the company.
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Public Relations Tools
•
•
•
•
•
•
News.
• Audiovisual
materials.
Speeches.
• Corporate identity
Special events.
materials.
Buzz marketing.
•
Public
service
Mobile marketing.
activities.
Written materials.
• Company website.
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Looking Back
• Explain why it is important for organizations to
integrate their marketing communications.
• Describe and discuss the major decisions involved
in developing an advertising program.
• List the major marketing communications goals
achieved through sales promotions.
• List and describe the steps in the personal selling
process.
• Discuss the major forms of direct response
marketing.
• Explain how companies use public relations to
communicate with their publics.
12-40
Copyright © 2007 Pearson Education Canada