Transcript Formulating Strategic Marketing Programs

GLOBAL MARKETING
Integrated Marketing
Communications
Integrated Marketing
Communications (IMC)

Effective marketing requires an integrated
communications plan--relying not just on
one form of communication, but bringing
together a number of different modes in a
consistent and complementary way.

Standardization vs. adaptation (localization)
Communication Vehicles

Contrast communication options along two
dimensions:
– Broadcast vs. interactive (1-way message vs. 2way message)
– Mass vs. addressable/customized
Characteristics of
Communication Options
Addressable/
customized
Mass
Salesperson
Super Bowl
Ad
Broadcast
1-way message
2-way with
Time lag
2-way
instantaneous
Position of Major
Communication Vehicles
Salesperson
Addressable/
Customized
Direct
Media
Radio
Newspapers
Magazines
Mass
Web
Telemarketing
E-mail
Direct Mail
Catalogs
Infomercials
Television
1-way
2-way
Role of Promotions in Integrated
Marketing Communications
Promotions are a specific inducement to
generate purchase behavior.
 Consumer promotions
 Trade promotions

Consumer Promotions
Free samples
 Price-oriented programs

Cents-off coupons
Mail-in refunds
Rebates
Premiums
 Tie-ins
 Continuity programs
 Contest/sweepstakes

Price pacs
Bonus pacs
Trade Promotions
Slotting allowances
 Co-op advertising
 Floor planning
 Temporary price cuts
 Volume discounts
 Contests

Rounding out IMC:

Event Marketing Sponsorships

Publicity and Public Relations
Formulating the IMC Program

6 M’s Model for Communication Planning
1. Market
2. Mission
3. Message
4. Media
5. Money
6. Measurement
1. Market
Analyze the consumer situation in terms of
stages in the purchase and consumption
process
 Response hierarchy models

– Cognitive stages
– Affective stages
– Behavioral stages
Hierarchy Model: AIDA
Stages
AIDA Model
Cognitive
Attention
Affective
Interest
Desire
Behavioral
Action
Hierarchy-of-Effects Model
Stages
Hierarchy-ofEffects Model
Cognitive
Awareness
Knowledge
Affective
Liking
Preference
Conviction
Behavioral
Purchase
Innovation-Adoption Model
Stages
Cognitive
Affective
Behavioral
Innovation-Adoption
Model
Awareness
Interest
Evaluation
Trial
Adoption
Communication Model
Stages
Communication
Model
Cognitive
Exposure
Reception
Cognitive Response
Affective
Attitude
Intention
Behavioral
Behavior
Customer Response Index

The combination of effects in the customer
response hierarchy.

Tool for adjusting communications or other
marketing tactics.
Customer Response Index
Comprehend
(54%)
Aware
(63%)
Interested
(77%)
Intentions
(68%)
No intentions
(32%)
Not interested (23%)
Don’t comprehend (46%)
Unaware (37%)
Action
(90%)
No Action
(10%)
2. Mission

Communication objectives, related to
customer response
Build Awareness
Message Reinforcement
Stimulate Action
3. Message

Decisions related to message content,
structure, format, and source
–
–
–
–
What kind of an appeal?
One-sided or two-sided message?
Peripherals
Spokesperson
4. Media
Decisions related to media communication
channel/advertising agency
 Decisions related to media exposure

– Target market reach
– Frequency
– Advertising effectiveness
» GRPs
» CPMs
Media Exposure (continued)

Decisions related to message reinforcement
– Pulsing
– Heavy-up message frequency

Decisions related to use of consumer
promotions
5. Money

The optimal marketing communications
budget is typically a function of:
– The size and heterogeneity of the target
audience
– Nature of the message
– Receptivity of the audience
– Amount of clutter
Money (continued)

Some firms use:
– % of expected or previous year’s sales
– Competitively based benchmark

Spending levels vary greatly across
industries and even across firms within the
same category
6. Measurement

Plan a mechanism for evaluating the effects
of communications efforts.

Critical input to future spending levels,
allocation of the budget across media, and
specific communication messages.
Global Considerations

Cultural values/traditions
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Social and political contexts

Economic environments

Laws/regulations