Download Chapter 14: Integrated Marketing Communication Strategy

Integrated
Marketing
Communication
Strategy
The Marketing Communications
Mix
Advertising
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Personal Selling
Personal Presentations by
a Firm’s Sales Force.
Sales Promotion
Short-term Incentives to
Encourage Sales.
Public Relations
Direct Marketing
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Communications
With Individuals to Obtain
an Immediate Response.
The Communication Process
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Encoding
Feedback
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Message
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Response
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Decoding Noise Noise
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Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Steps in Developing Effective
Communication
Step 3. Designing a Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Attention
Message Structure
Draw Conclusions
Argument Type
Argument Order
Interest
Desire
Message Format
Headline, Copy, Color,
Words, & Sounds,
Body Language
Action
Steps in Developing Effective
Communication
Step 4. Choosing Media
Personal Communication
Channels
Nonpersonal Communication
Channels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
Setting the Total Promotion Budget
Affordable
Method
CompetitiveParity
Method
Percentageof-Sales
Method
Objectiveand-Task
Method
Setting the Promotion Mix
Nature of Each Promotion Tool
Advertising
Reaches Many Buyers, Expressive
Impersonal
Personal Selling
Personal Interaction, Builds Relationships
Costly
Sales Promotion
Provides Strong Incentives to Buy
Short-Lived
Public Relations
Believable, Effective, Economical
Underused by Many Companies
Direct Marketing
Nonpublic, Immediate, Customized,
Interactive
Factors in Developing Promotion
Mix Strategies
• Push Strategy - “Pushing” the Product Through
Distribution Channels to Final Consumers.
• Pull Strategy - Producer Directs It’s Marketing
Activities Toward Final Consumers to Induce Them
to Buy the Product.
Product
Life-Cycle
Stage
Type of
Product/
Market
Buyer/
Readiness
Stage
Changing Face of Marketing
Communications
New Marketing Communications Realities
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Integrated Marketing Communications
Company Carefully Integrates and
Coordinates Its Many Communication
Channels to Deliver a Clear, Consistent,
Compelling Message.
Packaging
Event
Marketing
Advertising
Message
Direct
Marketing
Personal
Selling
Sales
Promotion
Public
Relations
Managing the integrated
Marketing Communication
Process
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As defined by the American Association of Advertising agencies,
integrated marketing communications (IMC) is a concept of marketing
communications planning that recognizes the added value of a
comprehensive plan. Such a plan evaluates the strategic roles of a
variety of communications disciplines – for example, general
advertising, direct response, sales promotion and public relations – and
combines these disciplines to provide clarity, consistency, and
maximum impact through the seamless integration of messages.
Unfortunately many companies still rely on one or two communication
tools. This practice persists in spite of the fragmenting of mass markets
into a multitude of mini markets, each requiring its own approach; the
proliferation of new types of media; and the growing sophistication of
consumers. The wide range of communication tools, messages, and
audiences make it imperative that companies move toward integrated
marketing communications. Companies must adopt a “360-degree
view” of consumers to fully understand all the different ways that
communications that affect consumer behaviour in their daily lives
Coordinating Media

Media coordination can occur across and within media
types. Personal and non-personal communications
channels should be combined to achieve maximum impact.
Imagine a marketer using a single tool in a “one-shot” effort
to reach and sell a prospect. An example of a single-vehicle,
single-stage campaign is a one-time mailing offering a
cookware item. A single-vehicle, multi-stage campaign
would involve successive mailings to the same prospect.
Magazine publishers, for example, send about four renewal
notices to a household before giving up. A more powerful
approach is the multiple-vehicle, multiple-stage campaign.
Consider the following sequence
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News campaign about a new product  Paid ad with a
response mechanism  Direct mail  outbound
telemarketing  Face-to-face sales call  ongoing
communication.
Multiple media deployed within a tightly defined time frame
can increase message reach and impact. For a Citibank
campaign to market home equity loans, instead of using
only “mail plus an 800 number”, Citibank used “mail plus
coupon plus 800 number plus outbound telemarketing plus
print advertising.” Although the second campaign was more
expensive, it resulted in a 15 percent increase in the
number of new accounts compared with direct mail alone.
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Research has also shown that promotions can be more
effective when combined with advertising. The awareness
and attitudes created by advertising campaigns can improve
the success of more direct sales pitches. “Marketing Insight:
Coordinating Media to build Brand Equity” describes how to
leverage television advertising in other media.
Many companies are coordinating their online and offline
communications activities. About a third of advertisers who
bought television advertising for the 2002-2003 season
bought ad space on the station’s websites. Listing the URL
Web addresses in ads (especially print) and on packages
allows people to more fully explore a company’s products,
find store locations, and get more product or service info.
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Dannon makes it a priority to drive traffic to its Dannon
Yogurt homepage so that the company can benefit from the
twin paybacks of (1) forging direct relationships with
customers and (2) building a database of its best customers
whose loyalty can be strengthened with more targeted
coupon and direct-mail promotional efforts.
Pepsi has been highly successful in linking its online and
offline efforts. In 2001, Pepsi and Yahoo! Joined forces for
an online promotion that increased sales 5 percent at a cost
of about one-fifth of the previous mail-in promotion. During
the promotion, Pepsi displayed a portal’s logo on 1.5 billion
cans while Yahoo! Created a co-branded PepsiStuff.com ecommerce site where visitors could redeem points from
bottle caps for prizes ranging from electronic goods to
concert tickets.
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When Dutch financial services firm ING Group
launched its brand in the United States, TV and
print ads were paired with online ads. In one
campaign on financial news sites, all the “ings” in
the news text turned orange - matching ING’s
corporate colours.
Even if consumers do not order online, they can
use web sites in ways that drive them into stores to
buy. Best Buy’s web site can be seen as a research
tool for consumers, as surveys revealed that 40
percent of its customers looked online first before
coming into the store.
Implementing IMC
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Integrated marketing communications has been
slow to take hold for several reasons. Large
companies often employ several communications
specialists to work with their brand managers who
may know comparatively little about the other
communication tools. Further complicating matters
is that many global companies use a large number
of ad agencies located in different divisions,
resulting in uncoordinated communications and
image diffusion.
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Today, however, a few large agencies have substantially improved their
integrated offerings. To facilitate one-stop shopping, major ad agencies
have acquired promotion agencies, public relation firms, packagedesign consultancies, web site developers, and direct-mail houses.
Many international clients have opted to put a substantial portion of
their communications work through one agency. An example is IBM
turning all of its advertising over to Ogilvy to attain uniform branding.
The result is integrated and more effective marketing communications
and a much lower total communication cost.
Integrated marketing communications can produce stronger message
consistency and greater sales impact. It forces management to think
about every way the consumer comes in contact with the company, how
the company communicates its positioning, the relative importance of
each vehicle, and timing issues. It gives someone the responsibility –
where none existed before – to unify the company’s brand images and
messages as they come through thousands of company activities. IMC
should improve the company’s ability to reach the right customers with
the right messages at the right time and in the right place.
Marketing Memo – How integrated
is your IMC program?
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In assessing the collective impact of an IMC program, the overriding goal is to
create the most effective and efficient communications program possible. The
following six criteria can be used to help determine whether communications
are truly integrated.
Coverage – Coverage is the proportion of the audience that is reached by
each communication option employed, as well as how much overlap exists
among communication options. In other words, to what extent do different
communication options reach the designated target market and the same or
different consumers making up that market?
Contribution – Contribution is the inherent ability of a marketing communication
to create the desired response and communication effects from consumers in
the absence of exposure to any other communication option. How much does
a communication affect consumer processing and build awareness, enhance
image, and induce sales?
Commonality – Commonality is the extent to which common associations are
reinforced across communication options, that is, the extent to which
information conveyed by different communication options share meaning. The
consistency and cohesiveness of the brand image is important because it
determines how easily existing associations and responses can be recalled
and how easily additional associations and responses can become linked to
the brand in memory.
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Complementarity – Communication options are often more often more effective
when used in tandem. Complementarity relates to emphasized across
communication options. Different brand associations may be most effectively
established by capitalizing on those marketing communication options best
suited to eliciting a particular consumer response or establishing a particular
type of brand association. As part of the highly successful “drivers wanted”
campaign, VW has used television to introduce a story line that it continued
and embellished on its Web site.
Versatility – with any integrated communication program, when consumers are
exposed to a particular marketing communication, some consumers will have
already been exposed to other marketing communications for the brand,
whereas other consumers will not have had any prior exposure. Versatility
refers to the extent to which a marketing communication option is robust and
“works” for different groups of consumers. The ability of a marketing
communication to work at “two levels” – effectively communicating to
consumers who have or have not seen other communications – is critically
important.
Cost – Evaluations of marketing communications on all of these criteria must
be weighed against their cost to arrive at the most effective and efficient
communications program.