CHAPTER 17: INTEGRATED MARKETING COMMUNICATIONS ...
CHAPTER 17: INTEGRATED MARKETING COMMUNICATIONS Integrated Marketing Communications (IMC) •
It represents the promotional element of the marketing mix.
•
It uses different tools of communication such as advertising, personal selling, sales promotion, public relations, direct marketing and online marketing including social media in combination to provide clarity, consistency and maximum communications impact.
I. •
COMMUNICATING WITH CONSUMERS The Communication Process Sender ( Firm)
•
Transmitter (Intermediary) Encodes Message
•
Is the medium that carries the message
Receiver (Consumer Decodes Message)
•
Sender works with creative department to develop marketing communications Converts the sender’s ideas into a message
Communications Channel
•
The message originates from the sender who must be clearly identified to the intended audience
Noise: Any interference from competitors, lack of clarity in message or a flaw in the medium Influences the communication process
Feedback Loop
Allows the receiver to communicate with the sender
Inform the sender of the effectiveness of the message collected by the receiver The AIDA Model
Awareness
•
Customer’s ability to recognize that the brand name is a particular type of retailer or product/service
•
Senders first must gain the attention of the consumers
•
A multichannel approach increases the likelihood the message will be received
Interest
•
After the customer is aware, they must be persuaded that the product worth investigating
•
Marketers ensure that the ad’s message includes attributes that are of interest to the target audience
• •
Desire Move the consumer from “I like it” to “I want it” Action Ultimate goal of marketing communication
Lagged Effect •
II.
In some situations, consumers do not take a action after receiving the marketing communication because of the lagged effect – a delayed response to the communication campaign. ELEMENTS OF AN IMC STRATEGY Advertising
•
Most visible element of IMC
•
Extremely effective at creating awareness and generating interest Public Relations (PR)
•
“Free” media attention
•
Importance of PR has grown as cost of other media has increased
•
Consumers becoming more skeptical about marketing, PR becoming more important Sales Promotions
•
Can be aimed at both end user consumers or channel members
•
Used in conjunction with other forms of IMC
•
Can be used for both short-term and long-term objectives Personal Selling
•
Some products require the help of a salesperson
•
More expensive than other forms of promotion
•
Salespeople can add significant value, which makes the expense worth it Direct Marketing
•
Growing element of IMC
•
Includes e-mail and m-commerce
•
Good for multicultural groups
•
Database technology improves Online Marketing
•
Websites
•
Blogs
•
Social Media
III.
PLANNING FOR & MEASURING IMC SUCCESS
•
Understand the outcome they hope to achieve before they begin
•
Short-term or long-term
•
Should be explicitly defined and measured Setting and Allocating the IMC Budget
•
Objective-and-task method
•
Determines the budget required to undertake specific tasks to accomplish communication objectives
Rule-of-thumb methods (used to set budget)
Competitive Parity – Communication expenses are proportionate to the share of the market.
Percentage of Sales-Budget is a fixed percentage of sales.
Available Budget- Budget amount is the one available after operating costs and profits have been budgeted.
CHAPTER 18: ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTIONS Definitions of Marketing
Steps in Planning and Ad Campaign
• • • • •
1. Identify Target Audience Conduct research Set the tone for the advertising program & select media Target audience may or may not be the same as current users 2. Set Advertising Objectives Generally appear in advertising plan Pull strategy: Goal is to get consumers to pull the product into the supply chain by demanding it Push strategy: Designed to increase demand by focusing on wholesalers, retailers or salespeople Informative Advertising
•
Communicates to create and build brand awareness
•
Retailers aim to push the consumer through the buying cycle to final purchase
•
Often used to inform customers about upcoming sales events or arrival of new merchandise Persuasive Advertising
•
Generally occurs in the growth and early maturity stages of the Product Life Cycle when competition is most intense
•
May be used to reposition an established brand in the later stage of the Product Life Cycle Reminder Advertising
•
Communication used to remind or prompt repurchases
•
Occurs after the products have gained market acceptance
• • •
Focus of Advertisements Institutional advertisements Product-focused advertisements Social Marketing
Public Service Advertising (PSA): Under Federal Communication Commission rules, broadcasters must devote a specific amount of free airtime to PSAs
3. Determining Advertising Budget •
Considerations:
Role that advertising plays in their attempt to meet their overall promotional objectives
Expenditures vary over the course of the Product Life Cycle
Nature of the market and the product influence the size of the budget
4. Convey the Message •
The Message: Unique selling proposition (USP)
Red Bull . . . Gives You Wings
Nike . . . Just Do It.
State Farm Insurance . . . Like a good neighbor, State Farm is there
TNT . . . We know drama
•
The Appeal Informational appeal: Help consumers make purchase decision by offering factual info that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides Emotional appeal: Aims to satisfy customers’ emotional desires rather than their needs (focus on self-feelings) 5. Evaluate and Select Media
•
Media planning: Process of evaluating and selecting the media mix
•
Media mix: The combination of the media used and the frequency of advertising in each medium that will deliver a clear, consistent, compelling message to the intended audience
•
Media buy: The actual purchase of airtime or print pages
• •
Choosing the Right Medium Determine the Advertising Schedule
Continuous: Runs steadily throughout the year (Tide)
Pulsing: Combines continuous and flighting (IKEA)
• •
• •
Flighting: Periods of heavy advertising (Staples)
6. Create Advertisement Relies on headlines, background, branding,… 7. Assess Impact Using Marketing Metrics Pretesting: Assessment performed before an ad campaign is implemented to ensure various elements are working in an integrated fashion and doing what they are intended to do Tracking: Includes monitoring key indicators (sales volume) Posttesting: Evaluation of the campaign’s impact after it has been implemented
Regulatory and Ethical Issues in Advertising Public Relations • •
Involves managing communications and relationships to achieve various objectives, such as building & maintaining positive image of the firm,… Often support other promotional efforts by generating “free: media intention and general goodwill
Sales Promotions • •
Are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service Types: Coupons, Deals, Prize, Samples, Loyalty Program,..
•
Can be targeted at either the end user consumers or channel members
•
Can be used in either push or pull strategies
•
Cross Promotion: 2 or more firms join together to reach a specific target market (J.Crew & Belstaff, Sperry Top-Sider, Timex,…) CHAPTER 19: PERSONAL SELLING AND SALES MANAGEMENT
Definition •
2-way flow of communication between a buyer or buyers and a seller that is designed to influence the buyer’s purchase decision
The Value Added by Personal Selling •
Salespeople Provide Information and Advice
•
Salespeople Save Time and Simplify Buying
•
Salespeople Build Relationships
Relationship Selling: A sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties
The Personal Selling Process Step 1: Generate and Qualify Leads •
Generate a list of potential customers (leads) and assess their potential (qualify leads) to see if they worth pursuing
•
Sources of Leads: Current Customers, Networking Events , The Internet, Trade Shows
•
Methods: Cold call, telemarketing
Step 2: Preapproach •
Extends the qualification procedure
•
Set goals for what is to be accomplished
Step 3: Sales Presentation and Overcoming Reservations •
The Presentation: person-to-person meeting
•
Handling Reservations (Objections)
Step 4: Closing the Sale •
Obtaining a commitment from the customer to make the purchase
•
Getting the order
•
Often most stressful part of sales process
•
A “no” one day may be the foundation for a “yes” another
Step 5: Follow-Up •
Five Service Quality Dimensions •
Reliability: Deliver the right product or service on time
•
Responsiveness: Be ready to deal quickly with any issue, question, or problem that may arise
•
Assurance: Adequate guarantees that the product will perform as expected
•
Empathy: Good understanding of the problems and issues faced by their customers
•
Tangibles: Reflect the physical characteristics of the seller’s business (website, packaging,…)
!! Managing the Sales Force!! •
Involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force
•
Sales force structure
Company sales force/ Manufacturer’s Representative (Independent Agents)
Salesperson duties: Order getter, Order taker, Sales support, Combination duties
•
Recruiting and selecting salespeople: Personality, Optimism, Resilience, Self-motivation, Empathy
•
Sales training
•
Motivating and Compensating salespeople: Financial Rewards (commission, bonus…), Nonfinancial Rewards (Employee of the Month, jewelries...), Evaluating using marketing metrics
•
Evaluating salespeople
Ethical and Legal Issues in Personal Selling •
The Sales Manager and the Sales Force: Fair and Equal treatment
•
The Sales Force and Corporate Policy
•
The Salesperson and the Customer
It represents the promotional element of the marketing mix.
•
It uses different tools of communication such as advertising, personal selling, sales promotion, public relations, direct marketing and online marketing including social media in combination to provide clarity, consistency and maximum communications impact.
I. •
COMMUNICATING WITH CONSUMERS The Communication Process Sender ( Firm)
•
Transmitter (Intermediary) Encodes Message
•
Is the medium that carries the message
Receiver (Consumer Decodes Message)
•
Sender works with creative department to develop marketing communications Converts the sender’s ideas into a message
Communications Channel
•
The message originates from the sender who must be clearly identified to the intended audience
Noise: Any interference from competitors, lack of clarity in message or a flaw in the medium Influences the communication process
Feedback Loop
Allows the receiver to communicate with the sender
Inform the sender of the effectiveness of the message collected by the receiver The AIDA Model
Awareness
•
Customer’s ability to recognize that the brand name is a particular type of retailer or product/service
•
Senders first must gain the attention of the consumers
•
A multichannel approach increases the likelihood the message will be received
Interest
•
After the customer is aware, they must be persuaded that the product worth investigating
•
Marketers ensure that the ad’s message includes attributes that are of interest to the target audience
• •
Desire Move the consumer from “I like it” to “I want it” Action Ultimate goal of marketing communication
Lagged Effect •
II.
In some situations, consumers do not take a action after receiving the marketing communication because of the lagged effect – a delayed response to the communication campaign. ELEMENTS OF AN IMC STRATEGY Advertising
•
Most visible element of IMC
•
Extremely effective at creating awareness and generating interest Public Relations (PR)
•
“Free” media attention
•
Importance of PR has grown as cost of other media has increased
•
Consumers becoming more skeptical about marketing, PR becoming more important Sales Promotions
•
Can be aimed at both end user consumers or channel members
•
Used in conjunction with other forms of IMC
•
Can be used for both short-term and long-term objectives Personal Selling
•
Some products require the help of a salesperson
•
More expensive than other forms of promotion
•
Salespeople can add significant value, which makes the expense worth it Direct Marketing
•
Growing element of IMC
•
Includes e-mail and m-commerce
•
Good for multicultural groups
•
Database technology improves Online Marketing
•
Websites
•
Blogs
•
Social Media
III.
PLANNING FOR & MEASURING IMC SUCCESS
•
Understand the outcome they hope to achieve before they begin
•
Short-term or long-term
•
Should be explicitly defined and measured Setting and Allocating the IMC Budget
•
Objective-and-task method
•
Determines the budget required to undertake specific tasks to accomplish communication objectives
Rule-of-thumb methods (used to set budget)
Competitive Parity – Communication expenses are proportionate to the share of the market.
Percentage of Sales-Budget is a fixed percentage of sales.
Available Budget- Budget amount is the one available after operating costs and profits have been budgeted.
CHAPTER 18: ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTIONS Definitions of Marketing
Steps in Planning and Ad Campaign
• • • • •
1. Identify Target Audience Conduct research Set the tone for the advertising program & select media Target audience may or may not be the same as current users 2. Set Advertising Objectives Generally appear in advertising plan Pull strategy: Goal is to get consumers to pull the product into the supply chain by demanding it Push strategy: Designed to increase demand by focusing on wholesalers, retailers or salespeople Informative Advertising
•
Communicates to create and build brand awareness
•
Retailers aim to push the consumer through the buying cycle to final purchase
•
Often used to inform customers about upcoming sales events or arrival of new merchandise Persuasive Advertising
•
Generally occurs in the growth and early maturity stages of the Product Life Cycle when competition is most intense
•
May be used to reposition an established brand in the later stage of the Product Life Cycle Reminder Advertising
•
Communication used to remind or prompt repurchases
•
Occurs after the products have gained market acceptance
• • •
Focus of Advertisements Institutional advertisements Product-focused advertisements Social Marketing
Public Service Advertising (PSA): Under Federal Communication Commission rules, broadcasters must devote a specific amount of free airtime to PSAs
3. Determining Advertising Budget •
Considerations:
Role that advertising plays in their attempt to meet their overall promotional objectives
Expenditures vary over the course of the Product Life Cycle
Nature of the market and the product influence the size of the budget
4. Convey the Message •
The Message: Unique selling proposition (USP)
Red Bull . . . Gives You Wings
Nike . . . Just Do It.
State Farm Insurance . . . Like a good neighbor, State Farm is there
TNT . . . We know drama
•
The Appeal Informational appeal: Help consumers make purchase decision by offering factual info that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides Emotional appeal: Aims to satisfy customers’ emotional desires rather than their needs (focus on self-feelings) 5. Evaluate and Select Media
•
Media planning: Process of evaluating and selecting the media mix
•
Media mix: The combination of the media used and the frequency of advertising in each medium that will deliver a clear, consistent, compelling message to the intended audience
•
Media buy: The actual purchase of airtime or print pages
• •
Choosing the Right Medium Determine the Advertising Schedule
Continuous: Runs steadily throughout the year (Tide)
Pulsing: Combines continuous and flighting (IKEA)
• •
• •
Flighting: Periods of heavy advertising (Staples)
6. Create Advertisement Relies on headlines, background, branding,… 7. Assess Impact Using Marketing Metrics Pretesting: Assessment performed before an ad campaign is implemented to ensure various elements are working in an integrated fashion and doing what they are intended to do Tracking: Includes monitoring key indicators (sales volume) Posttesting: Evaluation of the campaign’s impact after it has been implemented
Regulatory and Ethical Issues in Advertising Public Relations • •
Involves managing communications and relationships to achieve various objectives, such as building & maintaining positive image of the firm,… Often support other promotional efforts by generating “free: media intention and general goodwill
Sales Promotions • •
Are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service Types: Coupons, Deals, Prize, Samples, Loyalty Program,..
•
Can be targeted at either the end user consumers or channel members
•
Can be used in either push or pull strategies
•
Cross Promotion: 2 or more firms join together to reach a specific target market (J.Crew & Belstaff, Sperry Top-Sider, Timex,…) CHAPTER 19: PERSONAL SELLING AND SALES MANAGEMENT
Definition •
2-way flow of communication between a buyer or buyers and a seller that is designed to influence the buyer’s purchase decision
The Value Added by Personal Selling •
Salespeople Provide Information and Advice
•
Salespeople Save Time and Simplify Buying
•
Salespeople Build Relationships
Relationship Selling: A sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties
The Personal Selling Process Step 1: Generate and Qualify Leads •
Generate a list of potential customers (leads) and assess their potential (qualify leads) to see if they worth pursuing
•
Sources of Leads: Current Customers, Networking Events , The Internet, Trade Shows
•
Methods: Cold call, telemarketing
Step 2: Preapproach •
Extends the qualification procedure
•
Set goals for what is to be accomplished
Step 3: Sales Presentation and Overcoming Reservations •
The Presentation: person-to-person meeting
•
Handling Reservations (Objections)
Step 4: Closing the Sale •
Obtaining a commitment from the customer to make the purchase
•
Getting the order
•
Often most stressful part of sales process
•
A “no” one day may be the foundation for a “yes” another
Step 5: Follow-Up •
Five Service Quality Dimensions •
Reliability: Deliver the right product or service on time
•
Responsiveness: Be ready to deal quickly with any issue, question, or problem that may arise
•
Assurance: Adequate guarantees that the product will perform as expected
•
Empathy: Good understanding of the problems and issues faced by their customers
•
Tangibles: Reflect the physical characteristics of the seller’s business (website, packaging,…)
!! Managing the Sales Force!! •
Involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force
•
Sales force structure
Company sales force/ Manufacturer’s Representative (Independent Agents)
Salesperson duties: Order getter, Order taker, Sales support, Combination duties
•
Recruiting and selecting salespeople: Personality, Optimism, Resilience, Self-motivation, Empathy
•
Sales training
•
Motivating and Compensating salespeople: Financial Rewards (commission, bonus…), Nonfinancial Rewards (Employee of the Month, jewelries...), Evaluating using marketing metrics
•
Evaluating salespeople
Ethical and Legal Issues in Personal Selling •
The Sales Manager and the Sales Force: Fair and Equal treatment
•
The Sales Force and Corporate Policy
•
The Salesperson and the Customer
