Transcript Consumer Behavior: People in the Marketplace - Home

Chapter 19
Managing Integrated
Marketing Communications
by
Dr. Saleh Alqahtani.
Kotler on
Marketing
Integrated marketing
communications is a
way of looking at the
whole marketing
process from the
viewpoint of the
customer.
Dr. Saleh Alqahtani.
Chapter Objectives
 In this chapter, we focus on three major
questions:
 How does communication work?
 What are the major steps in developing an
integrated marketing communications
program?
 Who should be responsible for marketing
communication planning?
Dr. Saleh Alqahtani.
The Marketing Communications Mix
Advertising
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Sales Promotion
Short-term Incentives to
Encourage Trial or Purchase.
Public Relations
Personal Selling
Direct Marketing
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Protect and/or Promote
Company’s Image/products.
Personal Presentations.
Direct Communications
With Individuals to Obtain
an Immediate Response.
Elements in the
Communication Process
SENDER
Message
Decoding
Encoding
Media
Noise
Feedback
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Response
RECEIVER
Figure 19.2: Steps
in Developing
Effective
Communication
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Effective Communications
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
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Purchase
Response Hierarchy Models
Stages
AIDA
Model a
Hierarchy-ofEffects
Model b
InnovationAdoption
Model c
Exposure
Awareness
Cognitive
stage
Attention
Awareness
Affective
stage
Interest
Attitude
Evaluation
Intention
Preference
Desire
Behavior
stage
Liking
Reception
Cognitive
response
Knowledge
Interest
Communications
Model d
Conviction
Trial
Action
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Purchase
Behavior
Adoption
Step 3. Designing the Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Layout,
Words, & Sounds,
Body Language
Message Source
Expertise,
Trustworthiness,
Congruity
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Message Problems
Selective Attention
Selective Distortion
Selective Retention
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Step 4. Select Communications Channel
Personal Communication
Channels
Nonpersonal Communication
Channels
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Step 5. Establish the Budget
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Affordable
% Of
Sales
Competitive
Parity
Objective
& Task
Step 6. Decide on Communications Mix
Advertising
Public, Pervasive, Expressive, Impersonal
Sales Promotion
Communication, Incentive, Invitation
Public Relations & Publicity
Credibility, Surprise, Dramatization
Personal Selling
Personal Confrontation, Cultivation, Response
Direct Marketing
Nonpublic, Customized, Up-to-Date, Interactive
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Step 7. Measure Results
Step 8. Manage the IMC Process
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Factors in Developing
Promotion Mix Strategies
Type of
Product/
Market
Buyer/
Readiness
Stage
Push vs.
Pull
Strategy
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Product
Life-Cycle
Stage
Push Versus Pull Strategy
Producer
Marketing
activities
Intermediaries
Demand
Marketing
activities
End users
Push Strategy
Marketing activities
Producer
Demand
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Intermediaries
Demand
End users
Pull Strategy
Figure 19.6: Cost-Effectiveness of
Different Promotional Tools
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Managing the Integrated Marketing
Communications Process
 Integrated Marketing Communications
(IMC)
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Chapter 20
Managing Advertising, Sales
Promotion, Public Relations,
and Direct Marketing
by
Dr. Saleh Alqahtani.
Chapter Objectives
 In this chapter, we focus on the following
questions:
 What steps are involved in developing an
advertising program?
 What explains the growing use of sales
promotion, and how are sales-promotion
decisions made?
 How can companies exploit the potential of
public relations and publicity?
 How can companies use integrated direct
marketing for competitive advantage?
 How can companies do effective e-marketing?
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Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
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Advertising Objectives
 Specific Communication Task
 Accomplished with a Specific Target Audience
 During a Specific Period of Time
Informative Advertising
Persuasive Advertising
Build Primary Demand
Build Selective Demand
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
Keeps Consumers Thinking
About a Product.
Dr. Saleh Alqahtani.
The Five Ms of Advertising
Message
Mission
Sales
goals
Advertising
objectives
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Stage in PLC
Message execution
Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability
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Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation
Measurement
Communication
impact
Sales
impact
Advertising Budget Factors
Market Share &
Consumer Base
Stage in the
Product Life Cycle
Product
Substitutability
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Competition &
Clutter
Advertising
Frequency
Figure 20.2: Relationship Among Trial, Awareness,
and the Exposure Function
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Profiles of Major Media Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations:
Relative high cost; “junk mail” image
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.
Profiles of Major Media Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: 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
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
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Limitations:
Little audience selectivity; creative limitations
.
Classification of
Advertising Timing Patterns
Concentrated
Level
(1)
Rising
(2)
Falling Alternating
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(9)
(10)
(11)
(12)
Continuous
Intermittent
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Month
Number of
messages
per month
Simplified Rating Sheet for Ads
(Attention) How well does the ad catch
the reader’s attention?
(Read-through) How well does the
ad lead the reader to read further?
(Cognitive) How clear is the
central message or benefit?
(Affective) How effective is
the particular appeal?
(Behavior) How well does the
ad suggest follow-through action?
0
20
Poor
ad
40
60
Mediocre Average
ad
ad
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80
Good
ad
100
Great
ad
__20
__20
__20
__20
__20
__Total
Advertising Strategy Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Testimonial
Evidence
Scientific
Evidence
Technical
Expertise
Personality
Symbol
Slice of Life
Lifestyle
Typical
Message
Execution
Styles
Musical
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Fantasy
Mood or
Image
Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
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Why the increase in Sales
Promotion?
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Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
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%t of total - 3 yr.MA
Long-Term Promotional Allocation
60
50
40
30
20
10
0
Trade Promo
Media Adv
Cons. Promo
1986
88
90
92
Year
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94
1996
Channels of Sales Promotions
MANUFACTURER
Push
Trade
Promotions
RETAILER
Push
Retail
Promotions
CONSUMER
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Consumer
Promotions
Pull
Consumer Promotion
Consumer-Promotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
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Consumer-Promotion
Tools
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
Trade Promotions
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Patronage
Displays
Rewards
Promote a Brand in
Advertising
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
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Push Money
Specialty
Advertising
Items
Business-to-Business
Promotion
Business-Promotion
Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
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Business-Promotion
Tools
Conventions
Trade Shows
Sales Contests
Major Public Relations Tools
Web Site
Public
Service
Activities
News
Speeches
Corporate
Identity
Materials
Audiovisual
Materials
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Written
Materials
Special
Events
Direct Marketing
 Direct-Order Marketing
 Customer Relationship Marketing
 The Growth of Direct Marketing
 Market Demassification
 The Benefits of Direct Marketing
 Integrated Direct Marketing
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Direct Marketing
 Major Channels for Direct Marketing
 Face-To-Face Selling
 Direct Mail
 New Forms of Mail Delivery
 Fax mail
 E-mail
 Voice mail
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Direct Marketing
 Direct marketing has passed through a number
of stages:
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Carpet bombing
Database marketing
Interactive marketing
Real-time personalized marketing
Lifetime value marketing
 Constructing a Direct-Mail Campaign
 Objectives
 Target Markets and Prospects
 Offer Elements
 Testing Elements
 Measuring Campaign Success: Lifetime Value
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Direct Marketing
 Catalog Marketing
 Telemarketing and M-Commerce
 Inbound telemarketing
 Outbound telemarketing
 Four types of telemarketing:
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
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Telesales
Telecoverage
Teleprospecting
Customer service and technical support
Direct Marketing
 Other Media for Direct-Response Marketing
 Direct-response advertising
 At-home shopping channels
 Videotext and interactive TV
 Kiosk Marketing
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Direct Marketing
 E-Marketing
 Permission Marketing
 Levels of Permission Marketing:
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No permission level
Low permission level
Medium permission level
High permission level
Transaction level
 E-Marketing Guidelines
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Give the customer a reason to respond
Personalize the content of your e-mails
Offer something the customer could not get via direct mail
Make it easy for the customer to “unsubscribe”
Dr. Saleh Alqahtani.