Chapter 7 Designing and Managing IMC
Chapter 7 Designing and Managing IMC
Chapter 7 Designing and Managing IMC
Managing
Integrated
Marketing
Communications
Presented by:
Richard T. Gacisan
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Modern marketing calls for more than developing a good product, pricing it attractively and
making it accessible. Companies must also communicate with their present and potential
stakeholders and the general public.
To effectively reach and influence target markets,holistic marketers are creatively employing
multiple forms of communications
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MARKETING COMMUNICATIONS
are the means by which firms attempt to inform, persuade, and remind
consumers—directly or indirectly—about the products and brands they sell.
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○ Kleenex allocated
Product launch it’s communication
dollars
○ 75% TV
○ 23% Print
○ 2% Online
Communications Process Models
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MACROMODEL OF THE COMMUNICATIONS
PROCESS
The Figure how a macro model with nine key factors in
effective communication. Two represent the major parties
—sender and receiver. Two represent the major tools—
message and media.
Four represent major communication functions—
encoding, decoding, response, and feed back. The last
element in the System is noise, random and competing
messages that may interfere with the intended
communication.
11 Senders must know what audiences they want to reach
and what responses they want to get. They must encode
their messages so the target audience can decode them.
They must transmit the message through media that reach
the target audience and develop feedback channels to
monitor the responses. The more the sender’s field of
experience overlaps that of the receiver, the more
effective the message is likely to be.
Communications Process Models
MICROMODEL OF CONSUMER RESPONSES 11
Micromodels of marketing communications
concentrate on consumers
specific responses to communications.
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Identify the Target
Audience
The process must start with a clear target audience in mind:
potential buyers of the company’s products, current users,
deciders, or influencers, and individuals, groups, particular
publics, or the general public. The target audience is a critical
influence on the communicator’s decisions about what to say,
how, when, where ,and to whom.
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Category Need
—Establishing a product or service category as necessary to
2 remove or satisfy a perceived discrepancy between a current
motivational state and a desired motivational state. A new-
Determine the to-the-world product such as electric cars will always begin
Communications with a communications objective of establishing category
Objectives need
Brand Awareness
—Fostering the consumer’s ability to recognize or recall the brand within the
category, in sufficient detail to make a purchase. Recognition is easier to achieve
than recall—consumers asked to think of a brand of frozen entrées are more likely
to recognize Stouffer’s distinctive orange packages than to recall the brand. Brand
recall is important outside the store; brand recognition is important inside the
store. Brand awareness provides a foundation for brand equity
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Brand Attitude
—Helping consumers evaluate the brand’s perceived ability to meet a
currently relevant need. Relevant brand needs may be negatively oriented
(problem removal, problem avoidance, incomplete satisfaction, normal
depletion) or positively oriented (sensory gratification, intellectual
Determine the stimulation, or social approval).Household cleaning products often use
Communications problem solution; food products, on the other hand, often use sensory-
Objectives oriented ads emphasizing appetite appeal
Brand Purchase Intention
—Moving consumers to decide to purchase the brand or take purchase-
related action. Promotional offers like coupons or two-for-one deals
encourage consumers to make a mental commitment to buy. But many
consumers do not have an expressed category need and may not be in the
market when exposed to an ad, so they are unlikely to form buy intentions.
In any given week, only about 20 percent of adults may be planning to
buy detergent, only 2 percent to buy a carpet cleaner, and only 0.25
percent to buy a car.
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3 ○ Message strategy
Design the ○ Creative Strategy
Communications ○ Message Source
○ Personal Communication
Channels
○ Nonpersonal Communication
channels
○ Integration
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Creative Strategy
Creative strategies
are the way marketers translate their messages into a specific
communication. We can broadly classify them as either
informational or transformational appeals.
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Message Source
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DECIDE PROMOTION
MIX
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Senior managers want to know the outcomes and revenues resulting from their
communications investments. Too often ,however, their communications directors supply
only inputs and expenses: press clip-ping counts, numbers of ads placed, media costs. In
Measuring Communication fairness, communications directors try to translate inputs into intermediate outputs
Results such as reach and frequency ( the percentage of target market exposed to a communication
and the number of exposures),recall and recognition scores, persuasion changes, and cost-
per-thousand calculations. Ultimately, behavior-change measures capture the real payoff.
After implementing the communications plan, the communications director must measure its
impact .Members of the target audience are asked whether they recognize or recall the
message, how many times they saw it, what points they recall, how they felt about the
message, and what are their previous and current attitudes toward the product and the
company. The communicator should also collect behavioral measures of audience
response, such as how many people bought the product ,liked it, and talked to others
about it
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○ defines as "a planning process designed to assure that all brand contacts received by a
8 customer or prospect for a product, service, or organization are relevant to that person
and consistent over time." This planning process evaluates the strategic roles of a
Implementing IMC variety of communications disciplines -- and skillfully combines these disciplines to
provide clarity, consistency, and maximum impact through the seamless integration of
messages.
Integrated marketing communications can produce stronger message consistency and help
build brand equity and create greater sales impact.
It forces management to think about every way the customer comes in contact with the
company, how the company communicates its positioning, the relative importance of each
vehicle, and timing issues .It gives someone the responsibility—where none existed before—
to unify the company’s brand images and messages as they come through thousands of
company activities MC should improve the company’s ability to reach the right customers
with the right messages at the right time and in the right place.
Managing Mass Communication:
Advertising, Sales Promotion,
Events and Experiences,
and Public Relations
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ADVERTISING
it is the activity or profession of producing advertisements for commercial products or services
Even in today’s challenging media environment, good ads can pay off. For example is the P&G
Company has always enjoyed double-digit sales gain in recent years from ads touting the efficacy
of Olay Definity Antiaging skin products and Head & Shoulders intensive treatment Shampoo.
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In developing an advertisement program, marketing managers must
always start by identifying the target market and buyer motives. Then they
can make the:
Advertising the Objective (or goal) is a specific communication task and achievement level to be
accomplished with a specific audience in a specific period of time.
(Hierarchy-of-effects)
1. Informative Advertising- aims to create brand 2. Persuasive Advertising- aims to create liking, preference,
awareness and knowledge of new products or new conviction, and purchase of a product or service.
products or new features of existing products. Persuasive advertising is highly competitive when there are
The objective is to develop initial demand for a similar products in the marketplace, and products are
good, service, organization, or cause. It is used when a competing for their share of the market. In this situation, the
new product is put on the market on when an old product winning product will differentiate itself from the
has been re-launched or update. competition and possess benefits that are superior to, or
compete strongly with, the competition. Comparative
approaches are common place, either directly or indirectly.
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Classifications of 31
Advertising Objectives
(Hierarchy-of-effects)
Stage in the product life cycle- New products typically merit large advertising budget to build
Competition and Clutter– in a market with a large number of competitors and high advertising spending,
a brand must advertise more heavily to be heard.
Advertising frequency- the number of repetitions needed to put the brand message across to consumers has an obvious
impact on the advertising budget.
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Developing the
Advertising Campaign
Message strategy ‒‒ or positioning of an ad.
1. Television Ads- television is generally acknowledged as the most powerful advertising medium and reaches a broad
spectrum of consumer at low cost per exposure.
Deciding on Reach,
Frequency, and
Impact
Media Selection- is finding the most cost-effective media to
deliver the desired number and type of exposures to the target
audience.
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Reach (R). the number of different persons or households exposed to a particular media schedule at least once
during a specified time period.
Frequency (F). the number of times within the specified time period that an average person or household is
exposed to the message.
Impact (I). the qualitative value of an exposure through a given medium (thus a food ad will have a higher impact
in Bon Appetit than in Fortune magazine)
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Sales Promotion
Consumer promotion
Trade promotion
Business and Sales force promotion
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Sellers use incentive-type promotions to attract new triers, to reward loyal customers, & to increase the
repurchase rates of occasional users. Price promotions usually build short-term volume that is not
maintained, but it enables manufacturers to adjust to short-term variations in supply & demand.
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Advertising vs Promotion
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• Events Objectives
– To identify with a particular target market or lifestyle
– To increase awareness of company or product name
• Creating Experiences
– "The idea is not to sell something, but to demonstrate how a brand can enrich a
customer's life.“
– Inviting prospects and customers to visit their headquarters and factories.
Public Relations
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Public Relations
Involves a variety of programs designed to promote &/or protect a company’s image or its
individual products. Marketing managers & PR do not always talk the same language, bottom-line
oriented vs. preparing & disseminating communications. Many companies are turning to
marketing public relations (MPR), playing a role in: Assisting I the launch of new products,
assisting in repositioning a mature product, building interest in a product category, influencing
specific target groups, defending products that have encountered public problems, & building e.g.
corporate image in a way that projects favorably on its products. MPR is found to be effective in
building awareness & brand knowledge for both new & established products.
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Direct mail
Catalogs
Telemarketing
Establish objectives
Execute
Measure success
RFM Formula for 57
Selecting Prospects
Recency
Recency
Frequency
Frequency
Monetary
Monetary value
value
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Elements of the Offer Strategy
Product
Offer
Medium
Distribution method
Creative strategy
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Components of the Mailing
Outside envelope
Sales letter
Circular
Reply form
Reply envelope
Public Issues in Direct Marketing
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Irritation
Unfairness
Deception/fraud
Invasion of privacy
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Interactive Marketing
1. Identify the triggers that can lead to an interactive marketing event. The best way to do this is through
surveys and analyzing data.
2. Determine the marketing event for the trigger. When the consumer does X, what do you want to
happen? Recommend Y? Ask if they want fries?
4. Assess. Is it working? Is your interactive marketing system it leading to more sales? Are you getting
complaints? Use the data to tweak your system.
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Word of mouth marketing (WOMM), also called word of mouth advertising, is the social media era’s
version of simple word of mouth.
• Traditionally, word of mouth marketing was spread from one person to another based on
recommendation.
• Modern word of mouth marketing describes both targeted efforts and naturally occurring instances
where users share their satisfaction with a brand.
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• Beyond friends and family, 88% of people trust online reviews written by other consumers
as much as they trust recommendations from personal contacts.
• But only 33% of businesses are actively seeking out and collecting reviews.
• Despite that fact that a little, can do a lot. When specific case studies were analyzed,
researchers found a 10% increase in word-of-mouth (off and online) translated into a sales
lifts between 0.2 – 1.5%.
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It could be that you market your business in a way that’s totally different to
anyone else in your space. Or that you take an old product and sell it in a
completely new way.
4. Emotional provocation.
This can be done via taking something you believe in and tying your company brand
closely to it on your social commerce networks, your website and anywhere you can
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Personal Selling
• Retail selling: in-store assistance from a sales clerk to help customers find, select, and
purchase products that meet their needs
• Reference selling: using satisfied customers and their positive experiences to convince
target customers to purchase a product or service
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CASE
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