Integrated Marketing Communication

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Integrated Marketing Communication

Anuchit Sirikit D.B.A.

Certified Professional Marketer(Asia Pacific)


Marketing Focuses on Exchange


exchange


Relationship Marketing


relationship marketing


superior customer value


mass customization


lifetime value







The Evolution of IMC


integrated marketing
communications (IMC)


new advertising


orchestration


seamless communication



all sources of brands or company
contact



Reason for the Growing
Importance of IMC


A shifting of marketing dollars from
media advertising to other forms of
promotion, particularly consumer and
trade
-
oriented sales promotions.



A movement away from relaying on
advertising
-
focused approaches, which
emphasize mass media such as network
television and national magazines, to
solve communication problems.


A shift in marketplace power from
manufacturers to retailers.



The rapid growth and development of
database marketing.


Demands for greater accountability from
advertising agencies and changes in the
way agencies are compensated.


The rapid growth of the Internet, which
is changing the very nature of how
companies do business and the ways they
communicate and interact with
consumers.

Instrument of the marketing mix

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den
2000
.
Marketing Communications

Essex, England : Pearson Education Ltd. pp. 3

Product
Price
Place
Promotion
Benefits
List price
Channels
Adverising
Features
Discounts
Logistics
Public relations
Options
Credit terms
Inventory
Sponsorship
Quality
Payment periods
Transport
Sales promotions
Product
Price
Place
Promotion
Design
Incentives
Assortments
Direct marketing
Branding
Locations
Point-of-purchase
Packaging
Exhibitions and trade fairs
Services
Personal selling
Warranties
Interactive marketing
Personal versus mass marketing communications

Personal communications
Mass communications
Reach of big audience
Speed
Slow (selling), faster (DM)
Fast
Costs/reached person
High
Low
Influence on individual
Attention value
High
Low
Selective perception
Relatively lower
High
Comprehension
High
Moderate-low
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000.
Marketing
Communications

Essex, England : Pearson Education Ltd. pp. 6

Personal communications
Mass communications
Feedback
Direction
Two-way
One-way
Speed of feedback
High
Low
Measuring effectiveness
Accurate
Difficult
The marketing mix and Integrated marketing communications (1)

Public relations

Marketing communications

Advertising

Marketing

( f )

(a)

( b)

(d)

(e)

(c)

Source: Hutton, J.H. (1996),

Integrated Marketing Communication and the
Evolution of Marketing Thought


, Journal of business Research, 37, 155
-
62.


(a) Corporate advertising


(b) Salesforce and channel communications, trade shows, packaging, direct
marketing, sales promotions, etc.




(c) Distribution, logistics , pricing, new
-
product development, etc.


(d) Investor relations; community relations; employee communications;
public affairs/government relations; most media relations; crisis
communications, etc,
(e) Product publicity; brochures and other collateral materials; parts of
media relations, crisis communications and corporate identity; sponsorships,
etc.
( f ) Traditional mass
-
media advertising


The marketing mix and Integrated marketing communications (2)

Source: Hutton, J.H. (1996),

Integrated Marketing Communication and the Evolution of
Marketing Thought


, Journal of business Research, 37, 155
-
62.

BRANDING

Determinants of successful brands

Differentiation

Long
-

term
perspective

Successful
brand

Additional
service

Good
quality

Integrated
communications
support

Originality

Source; Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C. (1997), Marketing. Concepts and Strategies. Boston:
Houghton Mifflin.

Basic brand strategies

National

International

One brand

Category

Existing

New

Line
extension

Brand
extension

Corporate branding

Multi
-
brands

New brands

Global branding

Local branding

Existing

New

Two brands

Endorsement


Ingredient branding


Co
-
branding

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 40

Components of consumer brand equity


Brand equity



Awareness



Perceived quality



Strong brand associations



Others assets



High brand loyalty

Determinants

Benefits

Source: Aaker, D.A. (1991), Managing Brand Equity. New York; The Free Press.

The loyalty pyramid

Committed
buyer

Like the brand
-
considers it a friend

Satisfied buyer with switching costs

Satisfied/habitual buyer who has no reason to change

Switchers/price sensitive
-

indifferent
-
no brand loyalty

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 49

Brand equity components
Benefits
Brand awareness


Brand in evoked set


Influence on attitude and
perceptions


Anchor for associations


Signal of substance/ commitment
Perceived quality


Price premium


Differentiation/positioning


Reason to buy


Channel member interest


Brand extension potential
Brand equity components and branding benefits(1)

Brand equity components
Benefits
Strong brand associations


Differentiation/positioning


High price premium


Memory retrieval potential


Reason to buy


Brand extension potential
High brand loyalty


Reduced marketing costs


Trade leverage


Attracting new customers


Time to respond to competitive
threats
Brand equity components and branding benefits(2)

Brand equity components and advertising models

Awareness
-
salience

Symbolism

Likeability

Emotions

Persuasion

Relationship

Sales reponse

Brands awareness

Strong brand associations

High quality perception

High customer loyalty

Based on: Franzen, G. (1998), Merken en Reciame (Brands and Advertising). Kluwer Bedrijfsinformatie.

Positioning


Market Positioning


Approaches to Positioning


Developing a Positioning Strategy






Positioning by Product Attributes and
Benefits


Positioning by Price/Quality


Positioning by Use or Application


Positioning by Product Class


Positioning by Product User


Positioning by Competitor


Positioning by Cultural Symbols


Repositioning

Requirements for effective segmentation

Attainable

Measurable

Effective
segmentation

Different

Large enough

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 102.

Targeting strategies


Concentration on one segment


Selective specialization


Product specialization


Market specialization


Full market coverage


Identifying competitors


Assessing consumers


perceptions of
competitors


Determining competitors


positions.


Analyzing the consumers


preferences.


Making the positioning decision.


Is the segmentation strategy
appropriate?



Making the positioning decision.


Is the segmentation strategy
appropriate?


Are there sufficient resources available
to communicate the position effectively?


How Strong is the competition?


Is the current positioning strategy
working?


Monitoring the position.

Positioning strategies


Product attributes or benefits


Price / quality


Use or application


Product class


Product user


Competitor


Cultural symbols


Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 108.

Communications objectives: the DAGMAR model

Category need

Brand awareness

Brand knowledge / comprehension

Brand attitude

Brand purchase intention

Purchase facilitation

Purchase

Satisfaction

Brand loyalty

Source; Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results. New
York: Association of National Advertisers.

Stages in the product life
-
cycle and communications objectives

Stage
Marketing
communications
objectives

Introduction
Category need
Brand awareness
Brand knowledge
Brand attitude

Growth Brand
attitude Brand
preference

Marketing Top
-
of
-
mind
awareness
Brand attitude
Brand loyalty
Customer
satisfaction

Decline
Purchase
New target
groups

Sales

Time

Factors affecting the consumer choice situation

Choice process

Consumer

Product
characteristics

Choice
situation

Consumer /
product
relation

Point
-
of
-
purchase
characteristics

Advice involved
with purchase

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 132.

Advertising objectives

Cognitive objectives



Affective objectives






Conative objectives

Product category need

Brand awareness

Brand knowledge

Feelings evoked by the ad

Attitude towards the ad

Liking of the brand

Attitude towards the brand

Brand conviction

Brand satisfaction

Purchase intention

Purchase

Repeat
-
purchase

Brand loyalty

Advertising formats


Testimonial


Expert endorsement


Celebrity endorsement


Slice
-
of
-
life


Comparative advertising


Music

Moderating variables affecting the effectiveness of
humour in advertising

Existing or new
products

Relation between
humaour and
product

Effective
humorous ads

Humour type

Prior brand
evaluations

Product type

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 177.

Strengths of public relations

Crisis
management

Message flexibility

Cost effective

Public relations

Difficult
-
to
-
reach
audiences

More objective

Advice on
important
trends

Good
citizenship

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 240.

Weaknesses of public relations

Effectiveness
hard to measure

Lack of control

Public relations

Journalists as
gatekeepers

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 249.

Trends and challenges in public relations

Bad
reputation

Globalization

New
technologies

PR

Corporate
branding

Single
-
issue
publics

Good employee
relation

Measuring
effect

Growing consumer
awareness

Specialization

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 251.

RESEARCH


Motivation Research in
Marketing



In
-
depth interviews


Projective techniques


Association tests


Focus groups


Problems and Contributions of
Psychoanalytic Theory and
Motivation Research


Strategic communication research


Pre
-
test of Advertising


Post
-
test of Advertising


Campaign evaluation Research

Objectives of pre
-
testing

Optimise
esposure
frequency

Assess
communications
effects

Pre
-
tests

Selection of
appropriate stimuli

Testing a
finished ad

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 224.

Pre
-
testing techniques

Internal evaluation


Checklists


Readability analysis

Communications


Physiological tests


Recall


Direct opinion measurement

Behavioural effects

Limitations of pre
-
testing

Influence of
external factors

Limited time
between exposure
and test

Effect of
repetition

Limitations of
pre
-
testing

Artificial setting

Consumer jury
effect

Never the
best possible
ad

Individual
testing

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 230.

Post
-
testing techniques


Exposure


Message processing


recall


recognition


Behaviour


Limitations of post
-
testing

Isolate effect
of single ad

Message
processing and
buying

Product
involvement

Limitations of
post
-
test

Consumer

s
honesty

Relevance of
recall

Time between
exposure and
measurement

Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 233.

Interactive Marketing Communication

Social presence and communications style in communications
media

Personal selling

Telemarketing

Electronic
commerce

X

Direct mail

Traditional advertising

Asynchronous

Synchronous

Communications

Higher

Social
presence

Lower

Based on
: Reza Kiami, G. (1998),

Marketing opportunities in the Digital Worls


,
Internet Research:
Electronic Networking Applications and Policy
, 8(2), 185
-
94. Reproduced with permission of MCB
University Press.

Consumer control on contact and content in communications
media

Consumer control of content

Lesser

Lesser

Greater

Greater

Consumer
control of
content

Direct mail advertising

Telemarketing

Personal selling

Electronic commerce

Based on : Reza Kiami, G. (1998),

Marketing opportunities in the Digital World


,
Internet
Research: Electronic Networking Applications and Policy,

8(2), 185
-
94. Reproduced with
permission of MCB University Press.

Development cycles for websites on the net


Multinationals

Information model
--

Transaction
model

1
. Information about image and products

2
. Information
-
gathering/market research

3
. Client support/services

4
. Internal support

5
. Transactions



Internet starters


Transaction model
---

Information
model

1
. Transactions

2
. Client support/services

3
. Information about image and products

4
. Information
-
gathering/market research


Based on
: Quelch, J.A. and Klein, L.R. (1996).

The Internet and International Marketing


,
Sloan Management Review

(Spring), 60
-
75. Reproduced with permission of Sloan School
of Management.

Business models for websites on the net

Primary consequences for the company

Internal

External

Customer
orientation

Technical, legal and
administration support
Managing databases Internal
research Internal reporting

Marketing and sales
support information

Customer service
Transactions

Product information
Promotion Developing
databases Market research
Transactions

Cost
-
reduction

Returns incteasing

Based on
: Quelch, J.A. and Klein, L.R. (1996).

The Internet and International Marketing


,
Sloan Management Review

(Spring), 60
-
75. Reproduced with permission of Sloan School
of Management.

Internet advertising techniques

Adertorials

Interstitial

Buttons

World Wide Web


Banners

Pushed
advertising

Banners on
chat sites

Good
citizenship

E
-
mail

Classified
ads

Direct e
-
mail

Sponsorship of e
-
mail newsletter

Banners on e
-
mail

Internet advertising in the future

Sponsored
content

Targeted
content

Internet
advertising

Experience rated
content

Anchor tenancy
deals

Purchase related
content

Based on
: Cartelliert, C., Rao, V., Parsons, A. and Zeisser, M. (1997),

The
Impact of Internet Advertising

,
The McKinsey Quarterly
,
3
,
45
-
62
.

Four types of relationship efforts


Communication


Differentiation


Personalising


Rewarding