BMGT 411: Chapter 15

Designing and Managing Integrated Marketing Communications

Chapter Questions

• What is the role of marketing communications?

• What are the major steps in developing effective communications?

• What is the communications mix and how should it be set?

• What is an integrated marketing communications program?

Modes of Marketing Communications

• Advertising

• Sales promotion

• Events and experiences

• Public relations and publicity

• Direct marketing

• Interactive marketing

• Word-of-mouth marketing

• Personal selling

• Social Media Marketing

Table 15.1 Communication Platforms: Advertising

• Print and broadcast ads

• Packaging inserts

• Motion pictures

• Brochures and booklets

• Posters

• Billboards

• POP displays

• Logos

• Videotapes

Table 15.1 Communication Platforms - Sales Promotion

• Contests, games, sweepstakes

• Premiums

• Sampling

• Trade shows, exhibits

• Coupons

• Rebates

• Entertainment

• Continuity programs

Table 15.1 Communication Platforms: Events and Sponsorships

• Sports

• Entertainment

• Festivals

• Art

• Causes

• Factory tours

• Company museums

• Street activities

Table 15.1 Communication Platforms: Public Relations

• Press kits

• Speeches

• Seminars

• Annual reports

• Charitable donations

• Publications

• Community relations

• Lobbying

• Identity media

Table 15.1 Communication Platforms: Personal Selling

• Sales presentations

• Sales meetings

• Incentive programs

• Samples

• Fairs and trade shows

Table 15.1 Communication Platforms: Direct Marketing

• Catalogs

• Mailings

• Telemarketing

• Electronic shopping

• TV shopping

• E-mail

• Voice mail

• Websites

An Ideal Ad Campaign

• The right consumer is exposed to the message at the right time and place

• The ad causes consumer to pay attention

• The ad reflects consumer’s level of understanding and behaviors the with product

• The ad correctly positions brand in terms of points-of-difference and points-of-parity

• The ad motivates consumer to consider purchase of the brand

The right consumer is exposed to the message at the right time and place

The right consumer is exposed to the message at the right time and place

The ad causes consumer to pay attentionhttp://www.webpronews.com/people-in-haiti-read-firstworldproblems-tweets-2012-10

The ad reflects consumer’s level of understanding and behaviors with the

producthttp://bit.ly/1rh2Z19

The ad correctly positions brand in terms of points-of-difference and points-of-parity http://youtu.be/9O2i28DU7fY

The ad motivates consumer to consider purchase of the brand http://youtu.be/79gMRVOPcoM

An Ideal Ad Campaign

• The right consumer is exposed to the message at the right time and place

• The ad causes consumer to pay attention

• The ad reflects consumer’s level of understanding and behaviors the with product

• The ad correctly positions brand in terms of points-of-difference and points-of-parity

• The ad motivates consumer to consider purchase of the brand

Figure 15.1 Elements in the Communications Process

Steps in Developing Effective Communications1.Identify target audience

2.Determine objectives

3.Design communications

4.Select channels

5.Establish budget

6.Decide on media mix

7. Manage the IMC

8.Measure results

1. Identify Target MarketOften Segment Based - Recall Segments from Chapter 7

2. Communications Objectives

• Category need: Establish a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state and desired emotional state

• Brand awareness: Foster the consumer’s ability to recognize or recall the brand within a category

• Brand attitude: Help customers evaluate the brands perceived ability to meet a current relevant need

• Purchase intention: Move consumers to decide to purchase the brand or take related action

Brand Awarenesshttp://youtu.be/Q-j7Lk4VvgE?list=PLCFM1h5Oz66g7udnOOB-v8-1c5TTMYWiH

Purchase Intention

3. Designing the Communications

• What to say (Message Strategy), how to say it (Creative Strategy) and who should say it (Message Source).

• Lets look at the new Ford Escape

• Message: Convenience and Technology

• Creative: Show it in real use, how it can solve problems

• Source: Delivered by people who represent the target segment and Ford Employees

Communication Design http://www.youtube.com/watch?v=I1V_rm645S0

4. Select the Channels Personal Channels

4. Select the Channels Mass Communication Channels

4. Select the ChannelsChoose Channels Most Related to Your Segment

5. Establish the Budget

• Affordable: Setting the budget on what the managers think the company can afford

• Percentage of Sales Method: Setting the communication budget at a specified percentage of current or anticipated sales

• Competitive Parity: Setting the communication budget to achieve share of voice parity with competitors

• Objective and Task Based: Developing the budget by defining specific objectives, determining tasks that must be performed to meet those objectives, and estimating the costs associated with them

6. Deciding on the Marketing Mix

Characteristics of the Mix

7. Managing the IMC

8. Measure Results

Main Categories of Marketing Metrics

Schedules

• Schedules are time-defined plans for completing a series of tasks or activities related to a specific program or objective.

• Help avoid conflicts.

• Help measure progress toward completion.

• http://office.microsoft.com/en-us/templates/results.aspx?qu=marketing+plan&ex=1&origin=TC001145556#ai:TC001142853|

• http://office.microsoft.com/en-us/templates/results.aspx?qu=marketing+plan&ex=1&origin=TC001145556#ai:TC001146469|

ROMI Equation

• ROMI - Return on Marketing Investment

• ROMI = Net Profit attributed to Marketing Activity/Marketing Investment

• Example - $20,000 Profit and $6,000 Marketing Spend = 333%