Promotions: Integrated Marketing Communication Strategy

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Marketing Communication Mix or PromotionMixPromotions:Integrated Marketing riceStores that Sellthe ProductProduct’sPackage1Marketers Have ShiftedAway From MassMarketingLess BroadcastingTwo Factorsare Changing the Face of Today’sMarketing Communications:Improvements inInformation TechnologyHas Led toSegmented MarketingMore NarrowcastingMarket Fragmentation Led toMedia FragmentationThe Changing Communications Environment2The Need for Integrated Marketing CommunicationsWith Integrated MarketingCommunications (IMC), theCompany Carefully Integrates andCoordinates Its ManyCommunications Channels toDeliver a Clear, Consistent, andCompelling Message About theOrganization and Its Product orService.3A View of the Communications Process4Elements in the Communication ProcessMarketers View Communications as theManagement of the Customer Relationship OverTime Through the Following onsumptionConsumptionConsumingConsuming671

Key Factors in Good CommunicationSteps in Developing Effective CommunicationStep 1. Identifying the Target AudienceSellersSellers NeedNeed totoKnowKnow WhatWhat AudiencesAudiencesTheyWishtoReachThey Wish to Reachandand ResponseResponseDesired.Desired.SellersSellers MustMust DevelopDevelopFeedbackFeedback ChannelsChannels totoAssessAssess Audience’sAudience’sResponseResponse totoMessages.Messages.Step 2. Determining the Communication ObjectivesBuyer Readiness StagesAwarenessKnowledgeSellersSellers MustMust bebe GoodGoodatat EncodingEncoding MessagesMessagesThatThat TargetTarget AudienceAudienceCanCan Decode.Decode.SellersSellers MustMust SendSendMessagesMessages ThroughThroughMediathatReachMedia that ReachTargetTarget AudiencesAudiencesLikingThis ad for the Toyota Celicamay be able to cover the firstthree stages of the buyerreadiness stages: awarenes s,knowledge, and liking.PreferenceThere is no mention ofcompetitors, so it does notseem to establish preference.ConvictionPurchasePurchase8Steps in Developing Effective CommunicationIs this ad making an emotional,rational, or moral appeal, or is itcombining them? How muchdo the personified cowscontribute to this ad?Is the ad structured to let theaudience make a decision?Is this an effective ad?The same company puts lifelikestatues of cows, with this slogan,into mall food courts. Whatmakes that practice effective?Message ContentContentThe pi ctures and theslogan make this whattype of appeal?Draw ConclusionsArgument TypeArgument OrderFormatThi s layout, al most likea yearbook or photoalbum, reinforces thesentimental aspectof this advertisement.b tPersonal CommunicationChannelsNonpersonal CommunicationChannelsMessage StructureDesigning aMessageCli kSteps in Developing Effective CommunicationStep 4. Choosing MediaStep 3. Designing a MessageRational AppealsEmotional AppealsMoral Appeals9Message FormatStep 5. Selecting the Message SourceHeadline, Illustration,Copy, & ColorBody LanguagetStep 6. Collecting Feedback10Setting the Total Promotion BudgetSetting the Promotion MixOne of the Hardest Marketing Decisions Facing aCompany is How Much to Spend on Promotion.AffordableBased on What theCompany Can 11PercentagePercentage ofof ReachReach ManyMany Buyers,Buyers, RepeatRepeat MessageMessageManyMany Times,Times, Impersonal,Impersonal, al Interaction,Interaction, RelationshipRelationshipBuilding,Building, MostMost ExpensiveExpensive PromoPromo ToolToolWideWide AssortmentAssortment ofof Tools,Tools, RewardsRewardsQuickQuick Response,Response, EffortsEfforts Short-LivedShort-LivedVeryVery Believable,Believable, DramatizeDramatize aa CompanyCompanyoror Product,Product, UnderutilizedUnderutilizedNonpublic,Nonpublic, Immediate,Immediate, Customized,Customized,InteractiveInteractive132

Promotion Mix StrategiesStrategy thatCalls forSpending A Loton Advertisingand ConsumerPromotion toBuild Up e ofProductMarket &ProductLife-CycleStageAdvertisingStrategy thatCalls for Usingthe Salesforceand TradePromotion toPush theProduct Throughthe Channels.1514AdvertisingWhat is Advertising?Advertising is centuries old.U.S. advertisers spend in excess of 250 billioneach year; worldwide spending exceeds 500billion.Advertising is used by: Advertising is Any Paid Formof Nonpersonal Presentationand Promotion of Ideas,Goods, or Services by anIdentified Sponsor.Business firms,Nonprofit organizations,Professionals, andSocial agencies.16Major Advertising DecisionsSetting Advertising ObjectivesInformative AdvertisingMessage DecisionsObjectivesSetting Communicationobjectives Sales ObjectivesBudgetDecisions AffordableApproach Percent of sales Competitiveparity Objective andtask17Inform Consumers orBuild Primary Demandi.e CD Players Message Strategy Message ExecutionCampaignEvaluation Communication Impact Sales ImpactMedia DecisionsAdvertising ObjectiveCompares One Brand toAnotheri.e. Avis vs. Hertz19Build Selective Demandi.e Sony CD PlayersSpecific Communication TaskAccomplished with a SpecificTarget AudienceDuring a Specific Period of TimeComparison Advertising Reach, Frequency, Impact Major Media Types Specific Media Types Media TimingPersuasive AdvertisingReminder AdvertisingKeeps Consumers ThinkingAbout a Producti.e. Coca-Cola203

Developing Advertising Strategy: Creating AdDeveloping Advertising StrategyMessagesAdvertising Strategy Consists of Two Major Elementsand Companies are Realizing the Benefits of PlanningThese Two Elements Jointly.Plan a Message StrategyGeneral Message to Be Communicated to CustomersDevelopDevelop aa MessageMessageCreating tsBenefitsSelecting theAdvertising MediaSome phrases or Big Ideas become soeffective that they spark trends in speaking,fashion, or even in other ads.MessagesCreativeCreative ConceptConcept“Big“Big Idea”Idea”VisualizationAdvertising AppealsAppealsVisualizationororPhrasePhrase inctive21Me s s a geExe c ut i o nDeveloping Advertising Strategy: MessageAdvertising Strategy:What type of messageexecuti on do these twoads employ?In both cases, whatdis tingui shes theproduct from theres t of the ad?ExecutionCli kbtSelecting Advertising MediatTurning the “Big Idea” Into an Actual Ad to Capturethe Target Market’s Attention and Interest.This Colgate adinforms customersabout the necessityof brushing afterlunch.In addition toacquiring newcustomers, Colgatemay increasetoothpaste use bypresent customers.TestimonialTestimonial EvidenceEvidenceScientificScientific EvidenceEvidenceTechnicalTechnical ExpertiseExpertisePersonalityPersonality SymbolSymbolMedia Habits of Target Consumers,Nature of the Product, Types of Message, CostLifestyleLifestyleStep 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:FantasyFantasyAudience Quality & Attention, Editorial QualityMoodMood oror ImageImageStep 4. Deciding on Media TimingScheduling of Advertising Over the Course of a YearPattern of Ads: Continuity or PulsingWhat type of mood does this set ab ou tthe product?MusicalMusicalStep 1. Decide on Reach, Frequency,and ImpactStep 2. Choosing Among Major Media TypesSliceSlice ofof LifeLifeTypicalMessageExecutionStyles222324Which l ifestyle does it appeal to?Jon Steel, ofGoodby, Silverstein, and Partners:International Advertising DecisionsEvaluating AdvertisingAdaptation of Global AdvertisingAdvertising Program EvaluationAdvertising Media DifferConsiderably in Availability and CostRegulation in Advertising PracticesCommunicationCommunication EffectsEffectsSalesSales EffectsEffectsIsIs thethe AdAd CommunicatingCommunicating Well?Well?IsIs thethe AdAd IncreasingIncreasing Sales?Sales?Comparison Ads Not Acceptable inAll CountriesPrograms Must be Matched toLocal Cultures and Customs25274

Socially Responsible MarketingCommunicationAdvertising and Sales Promotion Companies must avoid false and deceptive advertising.Sellers must avoid bait-and-switch advertising.Trade promotion activities are also closely regulated.Personal Selling Salespeople must follow the rules of “fair competition”.Three-day cooling-off ruleSalespeople must not disparage competitors.375

With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Product or Service. 6 PresellingPreselling SellingSelling Post-Consumption Post-Consumption ConsumingConsuming Marketers View Communications as the Management of the