assignment

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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter 1 An Introduction to Integrated

Marketing Communications

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Marketing

 Activity, set of institutions, and processes for

creating, communicating, delivering and

exchanging offerings that have value for:

 Customers, clients, partners, and society at large

 Exchange: Involves parties with:

 Something of value to one another

 Desire and ability to give up something to the other

party

 Way to communicate with each other

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Value

 Customer’s perception of benefits of a product or

service against the costs of acquiring and

consuming it

 Benefits are functional, experiential, and/or

psychological

 Costs - Money paid for:

 Acquiring a product or service or information about it

 Making the purchase and learning to use

 Maintaining and disposing the product

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Marketing Mix

 Product, price, place, and promotion

 To develop an effective marketing mix, marketers

must:

 Be knowledgeable about the issues and options of

each element of the mix

 Know how to combine the elements to form an

effective marketing program

 Analyze the market and use the data to develop the

marketing strategy and mix

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Integrated Marketing Communications

(IMC)

Coordinate various promotional elements and other marketing activities that communicate with a firm’s customers

•Evaluates the strategic roles of a variety of communication disciplines

•Combines the disciplines to provide clarity, consistency, and maximum communications impact

Recognizes the added value of a comprehensive plan that:

Ensures all marketing and promotional activities project a consistent, unified image

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Integrated Marketing Communications

(IMC)

 Criticism - Inside-out marketing approach

 Packs promotional mix elements together, making

them look and sound alike

 Contemporary perspective

 Goal - Generate short-term financial returns and

build long-term brand and shareholder value

 Views IMC ongoing strategic business process

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Growing Importance of IMC

Strategically integrates the various communications functions

Avoids duplication and takes advantage of synergy among promotional tools

Develops more efficient and effective marketing communications programs

•Evolution to micromarketing

•Consumers’ unresponsiveness to traditional advertising

•Changing rules of marketing

Changing environment

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Integrated Marketing Communications

(IMC): Role in Branding

Helps develop and sustain brand identity and equity

Recognizes the need for companies to connect with consumers based on trust, transparency, and authenticity

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Promotional Mix

 Tools that accomplish an organization’s

communication objectives

 Promotion: Coordination of all seller-initiated

efforts to:

 Set up channels of information and persuasion

 Sell goods and services or promote an idea

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Figure 1.2 - Elements of the Promotional

Mix

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Advertising

 Any paid form of nonpersonal communication:

 About an organization, product, or service

 With an idea from an identified sponsor

 Nonpersonal

 Involves mass media

 Message is transmitted to large groups of individuals

 No opportunity for immediate feedback

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Benefits of Advertising

Most cost-effective way to reach large numbers of consumers

Builds brand equity by influencing consumers’ perceptions

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Advertising to Consumer Markets

National advertising

• Done on a nationwide basis or in most regions of the country

Retail/local advertising - Encourage consumers to:

• Shop at a specific store

• Use a local service

• Patronize a particular establishment

Primary- versus selective-demand advertising

• Primary-demand - Stimulates demand for the general product class or entire industry

• Selective-demand - Creates demand for a specific company’s brands

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Advertising to Business and Professional

Markets

• Targets individuals who buy or influence the purchase of industrial goods or services for their companies

Business-to-business advertising

• Targets professionals, encouraging them to use a company’s product in their business operations

Professional advertising

• Targets marketing channel members, encouraging them to stock, promote, and resell the manufacturer’s branded products to their customers

Trade advertising

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Direct Marketing

 Communicating directly with target customers to

generate a response and/or a transaction

 Involves:

 Database management

 Direct selling

 Telemarketing

 Direct-response advertising

 Encourages the consumer to purchase directly from the

manufacturer

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Digital/Internet Marketing

Interactive media

• Allow users to participate in and modify the form and content of the information they receive in real time

Social media

• Online means of communication and interactions used to create, share, and exchange content

Mobile marketing

• Messages delivered are specific to a consumer’s location or consumption situation

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Advantages of Digital/Internet Marketing

Interactive nature

Capability to precisely measure the effects of advertising and other forms of promotion

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Sales Promotion

 Marketing activities that provide extra value or incentives to the:

 Sales force

 Distributors

 Ultimate consumer

 Aid in stimulating immediate sales

 Categories

 Consumer-oriented

 Trade-oriented

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Sales Promotion

 Increased emphasis due to:

 Declining brand loyalty

 Increased consumer sensitivity to promotional deals

 Retailers’ demand for more trade promotion support

from companies

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Publicity

 Nonpersonal communications regarding an

organization, product, service, or idea not directly

paid for or run under identified sponsorship

 Advantage

 High credibility and low cost

 Disadvantages

 Not always under the control of an organization

 Negative stories are highly damaging

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Public Relations

 Evaluates public attitudes

 Identifies policies and procedures of an individual

or organization with the public interest

 Goal - Establish and maintain a positive image

among various publics

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Personal Selling

 Person-to-person communication in which seller

attempts to assist and/or persuade prospective

buyers to:

 Purchase a company’s product

 Act on an idea

 Allows seller to tailor messages to the customer’s

specific needs or situation

 Involves immediate and precise feedback

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Contact or Touch Point

 Every opportunity a customer has to see or hear

about a company and/or its brands or have an

encounter or experience with it

 Categories

 Company created

 Intrinsic

 Unexpected

 Customer-initiated

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Figure 1.5 - IMC Audience Contact

Tools

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Figure 1.6 - IMC Contact Points: Control vs. Impact

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In the previous slide, there are the four basic contact or touch points.

• Unexpected - Unanticipated references or information about a company or

brand that a customer or prospect receives that is beyond the control of the

organization. For example, a word-of-mouth message, or a website that hosts

product reviews.

• Customer-initiated - Occurs whenever a customer or prospect contacts the

company. Many involve inquiries or complaints.

• Intrinsic - Interactions that occur with a company or brand during the process

of buying or using the product or service, such as discussions with retail sales

personnel. These touch points are not under the control of the company.

• Company created - Planned marketing communication messages created by

the company. This includes ads, websites, news/press releases, packaging,

brochures and collateral material, sale promotions, point-of-purchase displays,

and in-store décor.

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IMC Planning Process

• Planning, executing, evaluating, and controlling the use of the promotional-mix elements to effectively communicate with target audiences

Integrated marketing communications management

• Developing, implementing, and controlling an organization’s IMC program

Integrated marketing communications plan

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Marketing Plan

 Describes overall marketing strategy and programs

for an organization and includes:

 Detailed situation analysis

 Specific marketing objectives with time-frame and

mechanism for measuring performance

 Selection of target market(s) and plans for the four

elements of the marketing mix

 Program for implementing the marketing strategy

 Process for monitoring and evaluating performance

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Review of Marketing Plan

 Examining overall marketing plan and objectives

 Identifying the role of advertising and promotion

 Performing competitive analysis

 Assessing environmental influences

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Internal Analysis

 Assesses the firm and relevant areas involving the

product/service offering

 Assessment of:

 Capability to develop and implement promotional

program

 Brand image and implications for promotion

 A product’s relative strengths and weaknesses

 Reviews previous promotional programs and

results

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External Analysis

 Focuses on characteristics of a firm’s customers,

market segments, positioning strategies, and

competitors

 Customer analysis

 Competitive analysis

 Environmental analysis

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Analysis of Communication Process

 Involves analyzing:

 Receiver’s response processes

 Source, message, and channel factors

 Establishes communication goals and objectives

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Analysis of Communication Process

Marketing objectives

• Determine what is to be accomplished by the overall marketing program in terms of sales, market share, or profitability

Communication objectives

• Determine what the firm seeks to accomplish with its promotional program

• Stated in terms of:

• Nature of the message to be communicated

• Specific communication effects to be achieved

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Budget Determination

Set tentative marketing communications budget

Allocate tentative budget

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Developing Integrated Marketing

Communications Program

 Involves deciding the role and importance of each

promotional-mix element

 Aspects of an advertising program

 Creative strategy - Determining the basic appeal and

message to be conveyed to the target audience

 Media strategy - Determining the communication

channels to use to deliver the message

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Monitoring, Evaluation, and Control

 Determining how well the program is:

 Meeting communication objectives

 Helping the firm accomplish its overall marketing

goals and objectives

 Evaluating promotional program

results/effectiveness

 Taking measures to control and adjust promotional

strategies

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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter 2 The Role of IMC in the Marketing Process

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Strategic Marketing Plan

 Guides

 Allocation of organization’s resources

 Specific marketing programs and policies

 Evolves from an organization’s overall corporate

strategy

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Opportunity Analysis

 Market opportunities: Areas where:

 There are favorable demand trends

 Customer’s needs and opportunities are not being satisfied

 Firm can compete effectively

 Steps to identify market opportunities

 Examine the marketplace

 Observe demand trends and competition in various market segments

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Competitive Analysis

 Analyzing the competition in the marketplace and

searching for a competitive advantage

 Competitive advantage: Attributes that give a firm

an edge over competitors

 Better quality products

 Superior customer service

 Low production costs and lower prices

 Dominating channels of distribution

 Advertising

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Target Market Selection

 Done after evaluating market opportunities and

doing a competitive analysis

 Has direct implications on a firm’s advertising and

promotional efforts

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Figure 2.2 - The Target Marketing

Process

• Identifying markets with unfulfilled needs - In this step consumers with similar lifestyles, needs, and wants are isolated and increases the marketers knowledge of their specific requirements.

• Determining market segmentation - In this step a market is divided into distinct groups that have common needs and will respond similarly to a marketing action.

• Selecting a market to target - This step determines how many segments to enter, and which segments offer the most potential.

• Position through marketing strategies - This step determines the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition.

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Market Segmentation

 Dividing a market into distinct groups with common

needs, who respond similarly to a marketing situation

 Criteria

 Geographic segmentation: Markets are divided into

different geographic units

 Demographic segmentation: Dividing the market on

the basis age, sex, family size, education, income, and

social class

 Psychographic segmentation: Dividing the market on

the basis of personality, lifecycles, and/or lifestyles

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Bases for Market Segmentation

• Dividing consumers into groups according to their usage, loyalties, or buying responses to a product

• 80-20 rule: 20 percent of buyers account for 80 percent of sales volume

Behavioristic segmentation

• Grouping of consumers on the basis of attributes sought in a product

Benefit segmentation

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Selecting Target Market

Determine how many segments to enter

Determine which segments offer the most potential

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Market Coverage Alternatives

• Ignoring segment differences and offering just one product or service to the entire market

Undifferentiated marketing

• Involves marketing in a number of segments, developing separate marketing strategies for each

Differentiated marketing

• Selecting a segment and attempting to capture a large share of this market

Concentrated marketing

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Positioning

 Fitting a product or service to one or more

segments of the broad market to make it unique

within the marketplace

 Approaches

 Focusing on the consumer - Linking the product

with the benefits the consumer will derive

 Focusing on competition - Positions the product by

comparing the benefit it offers versus the

competition

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Positioning Strategies

 Positioning by product attributes and benefits

 Sets the brand apart from competitors on the basis of

specific characteristics or benefits offered

 Salient attributes: Important to consumers and are

the basis for making a purchase decision

 Positioning by price/quality

 Done where cost comes secondary to quality

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Positioning Strategies

 Positioning by use or application

 Used to enter a market on the basis of a particular use or application

 Positioning by product class

 Positioning by product user

 Positioning by competitor

 Positioning by cultural symbols

 Makes the brand easily identifiable and differentiated from others

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Repositioning

 Altering a product’s or brand’s position due to:

 Declining or stagnant sales

 Anticipated opportunities in other market positions

 Difficult to accomplish because of entrenched

perceptions and attitudes toward the product or

brand

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Product Decisions

 Product symbolism: Refers to:

 What a product or brand means to consumers

 What consumers experience in purchasing and using a product

 Branding

 Building and maintaining a favorable identity of the company and its products

 Packaging

 Provides functional benefits such as economy, protection, and storage

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Branding

Builds and maintains brand awareness and interest

Develops and enhances attitudes toward the company or product

Builds relationships between the consumer and the brand

Brand identity: Combination of name, logo, symbols, design, packaging, and image of associations held by consumers

Brand equity: Intangible asset of added value

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Price Decisions

 Price variable - Refers to what the consumer has to give in exchange for a purchase

 Factors that determine price

 Costs

 Demand factors

 Competition

 Perceived value

 Product quality

 Advertising

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Marketing Channels

 Interdependent organizations involved in making a

product or service available for use

 Direct channels: Directly deal with customers

 Driven by direct-response ads, telemarketing, the

Internet

 Used when selling expensive and complex products

 Indirect channels: Network of wholesalers and/or

retailers

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Promotional Push Strategies

 Programs designed to persuade the trade to stock,

merchandise and promote a manufacturer’s

products

 Goal

 Push the product through the channels of

distribution by selling and promoting it

 Trade advertising: Used to motivate wholesalers

and retailers to purchase products for resale

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Promotional Pull Strategies

 Spending money on advertising and sales

promotion efforts directed toward the ultimate

consumer

 Goal

 Create demand among consumers

 Encourage consumers to request the product from

the retailer