Module - 7

Designing and Managing Integrated Marketing Communications

Prof Bholanath Dutta

CMRIT/MBA DEPT

Prof Bholanath Dutta

Slide 0 in Chapter 7

Objectives
 Learn the major steps in developing an effective integrated marketing communications program.  Understand the steps involved in developing an advertising program.  Learn how companies can exploit the marketing potential of sales promotion, public relations, direct marketing, and e-marketing.
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 1 in Chapter 7

Marketing Communications
Communications Platforms
 Advertising  Sales Promotion  Public relations  Direct marketing

 Personal selling

CMRIT/MBA DEPT

Prof Bholanath Dutta

Slide 2 in Chapter 7

Developing Effective Marketing Communications

Steps in Marketing Communications Program Development
 Identify target audience  Determine objectives of communication  Design the message  Select communication channels
CMRIT/MBA DEPT

 Establish the budget  Select the marketing communications mix  Measure results  Manage the IMC process
Slide 3 in Chapter 7

Prof Bholanath Dutta

Developing Effective Marketing Communications

 Step 1: Identifying the target audience
Includes assessing the audiences perceptions of the company, product, and competitors company/product image

 Step 2: Cognitive, affective, and behavioral objectives may be set  Step 3: AIDA model guides message design
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 4 in Chapter 7

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
CMRIT/MBA DEPT

 Message content decisions involve the selection of appeal, theme, idea, or USP  Types of appeals
Rational appeals Emotional appeals Moral appeals

Prof Bholanath Dutta

Slide 5 in Chapter 7

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 6 in Chapter 7

 One-sided vs. two-sided messages  Order of argument presentation

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
CMRIT/MBA DEPT

 Message format decisions vary with the type of media, but may include:
Graphics, visuals Headline, copy or script Sound effects, voice qualities Shape, scent, texture of package

Prof Bholanath Dutta

Slide 7 in Chapter 7

Developing Effective Marketing Communications

Message Design
 Content  Structure  Format  Source
CMRIT/MBA DEPT

 Message source characteristics can influence attention and recall  Factors underlying perceptions of source credibility:
Expertise Trustworthiness Likability

Prof Bholanath Dutta

Slide 8 in Chapter 7

Developing Effective Marketing Communications

 Step 4: Selecting Communication Channels
Personal communication channels
 Effectiveness

derives from personalization and feedback  Several methods of stimulating personal communication channels exist

Nonpersonal communication channels

 Influence
CMRIT/MBA DEPT

derives from two-step flow-ofcommunication process

Prof Bholanath Dutta Slide 9 in Chapter 7

Developing Effective Marketing Communications

Methods of Stimulating Personal Communication
 Devoting extra effort to influential individuals or companies  Creating opinion leaders  Working through influential community members  Using influential people in testimonial advertising
CMRIT/MBA DEPT

 Developing advertising with high conversation value  Use viral marketing  Developing word-ofmouth referral channels  Establishing an electronic forum
Slide 10 in Chapter 7

Prof Bholanath Dutta

Developing Effective Marketing Communications

 Step 5: Establishing the Marketing Communications Budget
Affordability method Percentage-of-sales method Competitive-parity method Objective-and-task method

 Step 6: Deciding on the Marketing Communications Mix

CMRIT/MBA DEPT Prof Bholanath Dutta Slide 11 in Chapter 7

Developing Effective Marketing Communications

Communications Mix Selection
Types of promotional tools Selection factors
CMRIT/MBA DEPT

 Advertising  Sales promotion  Public relations and publicity  Direct marketing  Personal selling

Prof Bholanath Dutta

Slide 12 in Chapter 7

Developing Effective Marketing Communications

Communications Mix Selection
 Types of promotional tools  Selection factors
CMRIT/MBA DEPT

 Consumer vs. business market  Stage of buyer readiness  Stage of product life cycle  Market rank

Prof Bholanath Dutta

Slide 13 in Chapter 7

Developing Effective Marketing Communications

 Step 7: Measure Results
Recognition, recall, attitudes, behavioral responses

 Step 8: Manage the Integrated Marketing Communications Process

Provides stronger message consistency and greater sales impact Improves firms ability to reach right customers at right time with right message
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 14 in Chapter 7

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 15 in Chapter 7

 Objectives can be classified by aim:

Inform Persuade Remind Reinforce

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
CMRIT/MBA DEPT

 Factors considered when budget-setting:

Stage of product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability
Prof Bholanath Dutta Slide 16 in Chapter 7

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
CMRIT/MBA DEPT

 Factors considered when choosing the advertising message:

Message generation Message evaluation and selection Message execution Social responsibility review
Prof Bholanath Dutta Slide 17 in Chapter 7

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
CMRIT/MBA DEPT

 Developing media strategy involves:

Deciding on reach, frequency, and impact Selecting media and vehicles Determining media timing Deciding on geographical media allocation
Prof Bholanath Dutta Slide 18 in Chapter 7

Developing and Managing the Advertising Campaign

Major Media Types
 Newspapers  Television  Direct mail  Radio  Outdoor  Yellow pages  Newsletters  Brochures

 Magazines  Telephone  Internet

CMRIT/MBA DEPT Prof Bholanath Dutta Slide 19 in Chapter 7

Developing and Managing the Advertising Campaign

 Deciding on Media Categories
Target audiences media habits, nature of the product and message, cost

 Media Timing Decisions

Macroscheduling vs. microscheduling Continuity, concentration, flighting, and pulsing scheduling options

 Deciding on Geographical Allocation

CMRIT/MBA DEPT Prof Bholanath Dutta Slide 20 in Chapter 7

Developing and Managing the Advertising Campaign

The Five Ms of Advertising
 Mission  Money  Message  Media  Measurement
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 21 in Chapter 7

 Evaluating advertising effectiveness

Communicationeffect research Sales-effect research

Sales Promotion
 Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade  Purpose of sales promotion
Attract new triers or brand switchers Reward loyal customers Increase repurchase rates
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 22 in Chapter 7

Sales Promotion
Steps in Sales Promotion Program Development
 Establish objectives  Select consumerpromotion tools  Select trade-promotion tools  Select business- and sales force promotion tools  Develop the program  Pretest the program

 Implement and evaluate the program

CMRIT/MBA DEPT Prof Bholanath Dutta Slide 23 in Chapter 7

Sales Promotion
Major Consumer-Promotion Tools
 Samples  Coupons  Cash refunds (rebates)  Premiums  Prizes (contests, sweepstakes, games)  Patronage awards
CMRIT/MBA DEPT

 Free trials  Product warranties  Tie-in promotions  Cross-promotions  Point-of-purchase displays and demonstrations

Prof Bholanath Dutta

Slide 24 in Chapter 7

Public Relations
 Public relations activities promote or protect the image of a firm or product  Public relations functions:
Press relations Product publicity Corporate communications Lobbying Counseling
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 25 in Chapter 7

Public Relations
 Marketing Public Relations (MPR)
Plays an important role in
 New

product launches  Repositioning of mature brand  Building interest in product category  Influencing specific target groups  Defending products with public problems  Building the corporate image

 Three Major MPR Decisions

CMRIT/MBA DEPT Prof Bholanath Dutta Slide 26 in Chapter 7

Public Relations
Major Public Relations Tools
 Publications  Events  Sponsorships  News  Speeches  Public-service activities  Identity media

CMRIT/MBA DEPT

Prof Bholanath Dutta

Slide 27 in Chapter 7

Direct Marketing
 Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.  Direct marketing is growing and offers consumers key benefits.  Firms are recognizing the importance of integrated direct marketing efforts.
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 28 in Chapter 7

Direct Marketing
Major Direct Marketing Tools
 Face-to-face selling  Direct mail  Catalog marketing  Telemarketing  Direct-response TV marketing  Kiosk marketing  E-marketing

CMRIT/MBA DEPT

Prof Bholanath Dutta

Slide 29 in Chapter 7

Direct Marketing
 Steps in Developing a Direct-Mail Campaign:
Step 1: Set objectives Step 2: Identify target markets Step 3: Define the offer Step 4: Test the elements Step 5: Measure results
CMRIT/MBA DEPT Prof Bholanath Dutta Slide 30 in Chapter 7