Chapter 16

Designing and
Managing
Integrated
Marketing
Communicatio
ns
PowerPoint by Yu Hongyan B
usiness School of Jilin Univers
ity
 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.
 Marketing Communications

Direct
Advertising
Marketing

Sales Public
Promotion Relations
Personal
Selling
 Discussion Scenario
Research has shown that many people treat
their pets as they would true members of the
family.
Suppose you opened a bakery that made only
nutritional pet treats, doggy birthday cakes and
“cheesecakes”, and made-to-order pet food.
How could you use each of the previously
mentioned marketing communications platforms
in your business?
 Developing Effective Marketing
Communications

Steps in Marketing Communications

Program Development
 Identify target audience
 Determine objectives of
communication
 Design the message
 Select communication
channels
 Establish the budget
 Select the marketing
communications mix
 Measure results
 Manage the IMC process
 Developing Effective Marketing
Communications

 Step 1: Identifying the target audience

 Includes assessing the audience’s
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
 Developing Effective Marketing
Communications

Affective
Feelings
Beliefs Emotions
Knowledge
Objectives
Cognitive Behavioral
Intentions
Actions
Developing Effective Marketing
Communications

Figure 16-1:
Response
Hierarchy Models
Developing Effective Marketing
Communications

Message Design  Message content

decisions involve the
 Content selection of appeal,
 Structure theme, idea, or USP
 Format  Types of appeals
 Rational appeals
 Source
 Emotional appeals
 Moral appeals
 Discussion Scenario
Consider the pet bakery example
discussed earlier in this presentation.
What tactics would you use to make
rational, emotional and/or moral appeals?
Which type of appeal would you favor
using and why?
Developing Effective Marketing
Communications

Message Design  One-sided vs. two-

sided messages
 Content  Order of argument
 Structure presentation
 Format
 Source
Developing Effective Marketing
Communications

Message Design  Message format decisions

vary with the type of
media, but may include:
 Content  Graphics, visuals
 Structure  Headline, copy or script
Sound effects,
Format


voice qualities
 Source  Shape, scent,
texture of package
Developing Effective Marketing
Communications

Message Design  Message source char

acteristics can influe
 Content nce attention and re
call
 Structure  Factors underlying p
 Format erceptions of source
 Source credibility:
 Expertise
 Trustworthiness
 Likability
Developing Effective Marketing
Communications

 Step 4: Selecting Communication Chann

els
 Personal communication channels
 Effectiveness derives from personalization and f
eedback
 Several methods of stimulating personal commu
nication channels exist
 Nonpersonal communication channels
 Influence derives from two-step flow-of-commu
nication process
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
 Developing advertising with
high “conversation value”
 Use viral marketing
 Developing word-of-mouth
referral channels
 Establishing an electronic
forum
 Discussion Scenario
Once again, think back to the pet bakery
example discussed earlier in this presentation.
What specific methods would you undertake to
stimulate personal communication, and how
would you go about implementation?
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
Developing Effective Marketing
Communications
Figure 16-2:
Cost-Effectiveness of Different Promotional Tools at
Different Buyer-Readiness Stages
Developing Effective Marketing
Communications

Communications Mix  Advertising

Selection  Sales promotion
 Public relations and
publicity
 Types of promotional
tools
 Direct marketing
 Selection factors
 Personal selling
Developing Effective Marketing
Communications

Communications Mix  Consumer vs. business

market
Selection  Stage of buyer
readiness
 Types of promotional  Stage of product life
tools cycle
 Selection factors  Market rank
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
Developing and Managing the
Advertising Campaign

Figure 16-3:
The Five Ms of Advertising
Developing and Managing the
Advertising Campaign

The Five Ms of  Objectives can be

Advertising classified by aim:
 Inform
 Mission  Persuade
 Money
 Remind
 Reinforce
 Message
 Media
 Measurement
Developing and Managing the
Advertising Campaign

The Five Ms of  Factors considered

Advertising when budget-setting:
 Stage of product life
cycle
 Mission
 Market share and
 Money consumer base
 Message  Competition and clutter
 Media  Advertising frequency
 Measurement  Product substitutability
Developing and Managing the
Advertising Campaign

The Five Ms of  Factors considered

Advertising when choosing the
advertising message:
 Mission  Message generation
 Message evaluation and
 Money
selection
 Message  Message execution
 Media  Social responsibility
 Measurement review
Developing and Managing the
Advertising Campaign

The Five Ms of  Developing media

strategy involves:
Advertising  Deciding on reach,
frequency, and impact
 Mission  Selecting media and
 Money vehicles
 Determining media
 Message timing
 Media  Deciding on
geographical media
 Measurement allocation
Developing and Managing the
Advertising Campaign

Newspapers Newsletters

Internet Magazines
Major
Radio Media Outdoor
Types
Direct Mail Brochures

Television Telephone

Yellow Pages
Developing and Managing the
Advertising Campaign

Does satellite
radio
threaten the
future of
radio
advertising?
Developing and Managing the
Advertising Campaign

Wireless
technologies
have recently
emerged as a
new media
channel
Developing and Managing the
Advertising Campaign

 Deciding on Media Categories

 Target audience’s media habits, nature of the
product and message, cost
 Media Timing Decisions
 Macroscheduling vs. microscheduling
 Continuity, concentration, flighting, and pulsin
g scheduling options
 Deciding on Geographical Allocation
Developing and Managing the
Advertising Campaign

The Five Ms of  Evaluating advertising

Advertising effectiveness
 Communication-effect
research
 Mission
 Sales-effect research
 Money
 Message
 Media
 Measurement
Developing and Managing the
Advertising Campaign

Figure 16-4:
Formula for Measuring Sales Impact of Advertising
 Sales Promotion
 Sales promotions are short-term incentives
designed to stimulate purchase among co
nsumers or trade
 Purpose of sales promotion
 Attract new triers or brand switchers
 Reward loyal customers
 Increase repurchase rates
Sales Promotion

Technology
simplifies
coupon
redemption
for online
consumers
 Sales Promotion
Steps in Sales Promotion
Program Development
 Establish objectives  Select business- and
 Select consumer- sales force promotion
promotion tools tools
 Select trade-promotion  Develop the program
tools  Pretest the program
 Implement and evaluate the program
 Sales Promotion
Cross-Promotions Tie-in Promotions

Premiums Major Cash Refunds

Consumer
Prizes Sales Coupons
Promotion
Samples Free Trials
Tools
Product Warranties Patronage Awards

POP Displays & Demonstrations

 Public Relations

Public relations activities promote or

protect the image of the firm via:

Product Publicity Public Relations

Counseling Lobbying

Corporate Communications
 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
Public Relations
Major Public Relations Tools
News
Events
Speeches
Publications
Sponsorships
Identity Media
Public-service Activities
 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.
 Direct Marketing Channels
Major Direct Marketing Tools

Face-to-Face Direct Mail

Online Catalog

Kiosk Telemarketing

TV Marketing
 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