dr. saleh alqahtani. chapter 19 managing integrated marketing communications by

Dr. Saleh Alqahtani.

Chapter 19 Chapter 19 Managing Integrated Managing Integrated Marketing CommunicationsMarketing Communicationsbyby


Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.

Kotler on Marketing


Chapter Objectives In this chapter, we focus on three major In this chapter, we focus on three major

questions:questions: How does communication work?How does communication work? What are the major steps in developing an What are the major steps in developing an

integrated marketing communications integrated marketing communications program?program?

Who should be responsible for marketing Who should be responsible for marketing communication planning?communication planning?


AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Trial or Purchase.

Public Relations

Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.

Protect and/or Promote Company’s Image/products.

Personal Presentations.

The Marketing Communications Mix


Elements in the Communication Process

SENDERSENDEREncodingEncoding DecodingDecoding

RECEIVERRECEIVER

MediaMedia

Message

FeedbackFeedback ResponseResponse

NoiseNoise


Figure 19.2: Steps in Developing Effective Communication


Effective CommunicationsStep 1. Identifying the Target AudienceStep 1. Identifying the Target Audience

PurchasePurchase

Conviction

Preference

Liking

Knowledge

Awareness

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages


Response Hierarchy Models

Communi-cationsModel d

AIDAModel a

Innovation-AdoptionModel c

Hierarchy-of-Effects Model b

Stages

Cognitivestage

Affectivestage

Behaviorstage

Awareness

Trial

Adoption

Interest

Evaluation

Purchase

Liking

Preference

Conviction

Awareness

Knowledge

Attention

Interest

Desire

Action Behavior

Attitude

Intention

Exposure

Reception

Cognitiveresponse


Message SourceExpertise,

Trustworthiness,Congruity

Step 3. Designing the MessageStep 3. Designing the Message

Message FormatLayout,

Words, & Sounds,Body Language

Message StructureDraw Conclusions

Argument TypeArgument Order

Message ContentRational Appeals

Emotional AppealsMoral Appeals


Message Problems

Selective Attention

Selective Distortion

Selective Retention


Step 4. Select Communications ChannelStep 4. Select Communications Channel

Nonpersonal CommunicationChannels

Personal CommunicationChannels


Step 5. Establish the BudgetStep 5. Establish the Budget

CompetitiveParity

Objective& Task

Affordable% OfSales


Step 6. Decide on Communications MixStep 6. Decide on Communications Mix

AdvertisingPublic, Pervasive, Expressive, Impersonal

AdvertisingPublic, Pervasive, Expressive, Impersonal

Sales PromotionCommunication, Incentive, Invitation

Sales PromotionCommunication, Incentive, Invitation

Public Relations & PublicityCredibility, Surprise, DramatizationPublic Relations & Publicity

Credibility, Surprise, Dramatization

Personal SellingPersonal Confrontation, Cultivation, Response

Personal SellingPersonal Confrontation, Cultivation, Response

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive


Step 7. Measure ResultsStep 7. Measure Results

Step 8. Manage the IMC ProcessStep 8. Manage the IMC Process


Product Life-Cycle

Stage

Type of Product/ Market

Push vs. Pull

Strategy

Factors in Developing Promotion Mix Strategies

Factors in Developing Promotion Mix Strategies

Buyer/ Readiness

Stage


Push Versus Pull Strategy

Producer

Producer

Interme-diaries

Marketingactivities

End users

Marketingactivities

Demand Interme-diaries

Demand

Push Strategy

Pull Strategy

End users

Marketing activities

Demand


Figure 19.6: Cost-Effectiveness of Different Promotional Tools


Managing the Integrated Marketing Communications Process

Integrated Marketing Communications Integrated Marketing Communications (IMC)(IMC)


Chapter 20 Chapter 20 Managing Advertising, Sales Managing Advertising, Sales Promotion, Public Relations, Promotion, Public Relations, and Direct Marketingand Direct Marketingbyby


Chapter Objectives In this chapter, we focus on the following In this chapter, we focus on the following

questions:questions: What steps are involved in developing an What steps are involved in developing an

advertising program?advertising program? What explains the growing use of sales What explains the growing use of sales

promotion, and how are sales-promotion promotion, and how are sales-promotion decisions made?decisions made?

How can companies exploit the potential of How can companies exploit the potential of public relations and publicity?public relations and publicity?

How can companies use integrated direct How can companies use integrated direct marketing for competitive advantage?marketing for competitive advantage?

How can companies do effective e-marketing?How can companies do effective e-marketing?


Major Decisions in AdvertisingMajor Decisions in Advertising

Objectives SettingObjectives Setting

Budget DecisionsBudget Decisions

Message DecisionsMessage Decisions Media DecisionsMedia Decisions

Campaign EvaluationCampaign Evaluation


Informative AdvertisingBuild Primary Demand

Informative AdvertisingBuild Primary Demand

Persuasive AdvertisingBuild Selective Demand

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Comparison AdvertisingCompares One Brand to

Another

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Advertising Objectives

Specific Communication Specific Communication Task Task Accomplished with a Specific Accomplished with a Specific TargetTarget Audience Audience During a Specific Period of During a Specific Period of TimeTime


The Five Ms of Advertising

Mission

Salesgoals

Adver-tisingobjectives

Money

Factors toconsider:

Stage in PLC

Market shareand con-sumer base

Competitionand clutter

Advertisingfrequency

Productsubstituta-bility

Message

Message generation

Message evaluationand selection

Message execution

Social-responsibilityreview

MediaReach, frequency,impactMajor media typesSpecific mediavehicles

Media timingGeographicalmedia allocation

Measure-ment

Communi-cationimpact

Salesimpact


Advertising Budget Factors

Stage in the Product Life Cycle

Market Share &Consumer Base

Competition &Clutter

AdvertisingFrequency

ProductSubstitutability


Figure 20.2: Relationship Among Trial, Awareness, and the Exposure Function


Profiles of Major Media Types

NewspapersAdvantages: Flexibility, timeliness; good local market coverage;

broad acceptance, high believability

Limitations: Short life; poor reproduction quality; smallpass-along audience

TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses

Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity

Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-

tition within same medium; allows personalization

Limitations: Relative high cost; “junk mail” image


RadioAdvantages: Mass use; high geographic and demographic

selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences

MagazinesAdvantages: High geographic and demographic selectivity;

credibility and prestige; high-quality reproduction;long life; good pass-along readership

Limitations: Long ad purchase lead time; waste circulation; no guarantee of position

OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition

Limitations: Little audience selectivity; creative limitations

Profiles of Major Media Types


Classification ofAdvertising Timing Patterns

Month

Number ofmessagesper month

Concen-trated

(1) (2) (3)Level Rising Falling Alternating

(4)

Continuous

(8)(7)(6)(5)

(9)Inter-

mittent

(10) (11) (12)(9)


Simplified Rating Sheet for Ads

PoorPooradad

MediocreMediocreadad

AverageAverageadad

GoodGoodadad

GreatGreatadad

0 20 40 60 80 100 __Total__Total

(Attention) How well does the ad catch the reader’s attention? __20(Read-through) How well does the ad lead the reader to read further? __20(Cognitive) How clear is the central message or benefit? __20(Affective) How effective is the particular appeal? __20(Behavior) How well does the ad suggest follow-through action? __20


Advertising Strategy Message ExecutionAdvertising Strategy Message Execution

TypicalMessage

ExecutionStyles

TypicalMessage

ExecutionStyles

TestimonialEvidence

TestimonialEvidence Slice of LifeSlice of Life

ScientificEvidence

ScientificEvidence

LifestyleLifestyle

TechnicalExpertise

TechnicalExpertise

FantasyFantasy

MusicalMusical

PersonalitySymbol

PersonalitySymbol

Mood orImage

Mood orImage

Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.


Advertising Program EvaluationAdvertising Program Evaluation

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising Evaluation

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?


Why the increase in Sales Promotion?

Growing retailer powerGrowing retailer power Declining brand loyaltyDeclining brand loyalty Increased promotional sensitivityIncreased promotional sensitivity Brand proliferationBrand proliferation Fragmentation of consumer marketFragmentation of consumer market Short-term focusShort-term focus Increased managerial accountabilityIncreased managerial accountability CompetitionCompetition ClutterClutter


Long-Term Promotional Allocation

0

10

20

30

40

50

60

1986 88 90 92 94 1996

Year

%t

of

tota

l -

3 yr

.MA

Trade Promo

Media Adv

Cons. Promo


Channels of Sales Promotions

MANUFACTURER

RETAILER

TradeTradePromotionsPromotions

CONSUMER

ConsumerConsumerPromotionsPromotions

Push

PushPullRetailRetail

PromotionsPromotions


Consumer PromotionConsumer Promotion

Consumer-Promotion Objectives

Consumer-Promotion Tools

Point-of-PurchaseDisplays

Point-of-PurchaseDisplays

PremiumsPremiums

Price PacksPrice Packs

Cash RefundsCash Refunds

CouponsCoupons

SamplesSamples

Patronage Rewards

Patronage Rewards

GamesGames

SweepstakesSweepstakes

ContestsContests

AdvertisingSpecialties

AdvertisingSpecialtiesPatronage Rewards

Entice Consumers to Try a New Product

Entice Consumers to Try a New Product

Lure Customers AwayFrom Competitors’ Products

Lure Customers AwayFrom Competitors’ Products

Get Consumers to “Load Up’on a Mature Product

Get Consumers to “Load Up’on a Mature Product

Hold & Reward Loyal Customers

Hold & Reward Loyal Customers

Consumer Relationship Building

Consumer Relationship Building


Trade-Promotion Objectives

Trade-Promotion Tools

Specialty Advertising

Items

Specialty Advertising

ItemsContestsContests

Free GoodsFree Goods

Buy-BackGuarantees

Buy-BackGuarantees

AllowancesAllowances

Price-OffsPrice-Offs

Patronage Rewards

Patronage Rewards

Push MoneyPush Money

DiscountsDiscounts

PremiumsPremiums

Displays

Persuade Retailers or Wholesalers to Carry a Brand

Persuade Retailers or Wholesalers to Carry a Brand

Give a Brand Shelf SpaceGive a Brand Shelf Space

Promote a Brand in Advertising

Promote a Brand in Advertising

Push a Brand to ConsumersPush a Brand to Consumers

Trade Promotions


Business-Promotion Objectives Business-Promotion

ToolsGenerate Business LeadsGenerate Business Leads

Stimulate PurchasesStimulate Purchases

Reward CustomersReward Customers

Motivate SalespeopleMotivate Salespeople

ConventionsConventions

Trade ShowsTrade Shows

Sales ContestsSales Contests

Business-to-Business Promotion


SpecialEvents

SpecialEvents

Written MaterialsWritten

Materials

Corporate Identity Materials

Corporate Identity Materials

SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Major Public Relations ToolsMajor Public Relations Tools

Public Service

Activities

Public Service

Activities

Web SiteWeb Site


Direct Marketing

Direct-Order MarketingDirect-Order Marketing Customer Relationship MarketingCustomer Relationship Marketing

The Growth of Direct MarketingThe Growth of Direct Marketing Market DemassificationMarket Demassification

The Benefits of Direct MarketingThe Benefits of Direct Marketing Integrated Direct MarketingIntegrated Direct Marketing


Direct Marketing

Major Channels for Direct MarketingMajor Channels for Direct Marketing Face-To-Face SellingFace-To-Face Selling Direct MailDirect Mail

New Forms of Mail DeliveryNew Forms of Mail Delivery Fax mailFax mail E-mailE-mail Voice mailVoice mail


Direct Marketing Direct marketing has passed through a number Direct marketing has passed through a number

of stages:of stages: Carpet bombingCarpet bombing Database marketingDatabase marketing Interactive marketingInteractive marketing Real-time personalized marketingReal-time personalized marketing Lifetime value marketingLifetime value marketing

Constructing a Direct-Mail CampaignConstructing a Direct-Mail Campaign ObjectivesObjectives Target Markets and ProspectsTarget Markets and Prospects Offer ElementsOffer Elements Testing ElementsTesting Elements Measuring Campaign Success: Lifetime ValueMeasuring Campaign Success: Lifetime Value


Direct Marketing

Catalog MarketingCatalog Marketing Telemarketing and M-CommerceTelemarketing and M-Commerce

Inbound telemarketingInbound telemarketing Outbound telemarketingOutbound telemarketing Four types of telemarketing:Four types of telemarketing:

TelesalesTelesales TelecoverageTelecoverage TeleprospectingTeleprospecting Customer service and technical supportCustomer service and technical support


Direct Marketing

Other Media for Direct-Response MarketingOther Media for Direct-Response Marketing Direct-response advertisingDirect-response advertising At-home shopping channelsAt-home shopping channels Videotext and interactive TVVideotext and interactive TV

Kiosk MarketingKiosk Marketing


Direct Marketing E-MarketingE-Marketing

Permission MarketingPermission Marketing Levels of Permission Marketing:Levels of Permission Marketing:

No permission levelNo permission level Low permission levelLow permission level Medium permission levelMedium permission level High permission levelHigh permission level Transaction levelTransaction level

E-Marketing GuidelinesE-Marketing Guidelines Give the customer a reason to respondGive the customer a reason to respond Personalize the content of your e-mailsPersonalize the content of your e-mails Offer something the customer could not get via direct mailOffer something the customer could not get via direct mail Make it easy for the customer to “unsubscribe”Make it easy for the customer to “unsubscribe”

dr. saleh alqahtani. chapter 19 managing integrated marketing communications by

Documents

saleh alqahtani

marketing slide

sales slide

effective communication

interactive slide

marketing process

effective communications

communication work