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17 Designing and Integrating Marketing Communications

Chapter Questions

 What is the role of marketing communications?

 How do marketing communications work?

 What are the major steps in developing effective communications?

 What is the communications mix and how should it be set?

 What is an integrated marketing communications program? 14-2

Marketing Communications

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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Integrating Marketing Communications to Build Brand Equity

Advertising Sales Promotion Events & Experiences Public Relations & Publicity Marketing Communications Program Brand Equity Brand Awareness Brand Image Brand Responses WOM Personal Selling Direct Marketing Brand Relationships 14-4

Table 17.1 Communication Platforms (1) Advertising

  Print and broadcast ads Packaging inserts        Motion pictures Brochures and booklets Posters Billboards POP displays Logos Videotapes

Sales Promotion

 Contests, games, sweepstakes        Premiums Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs 14-5

Table 17.1 Communication Platforms (2) Events/ Experiences

  Sports Entertainment       Festivals Arts Causes Factory tours Company museums Street activities

Public Relations

  Press kits Speeches       Seminars Annual reports Charitable donations Publications Community relations Lobbying 14-6

Table 17.1 Communication Platforms (3) Personal Selling

  Sales presentations Sales meetings    Incentive programs Samples Fairs and trade shows

Direct Marketing

  Catalogs Mailings       Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail 14-7

Integrated Marketing Communications

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Magnum’s IMC Campaign 14-10

Promotion Strategy

Planning, implementing, and controlling an organization’s communications to its customers and other target audiences.

Integrated Marketing Communication

 IMC: A planned combination of various communication tools and techniques to produce clear, consistent, and high impact marketing messages.

Figure 17.2 Micromodels of Communications Copyright © 2012 Pearson Education 17-13

An Ideal Ad Campaign  The right consumer is exposed to the message at the right time and place   The ad causes consumer to pay attention The ad reflects consumer’s level of understanding and behaviors with product  The ad correctly positions brand in terms of points-of-difference and points-of-parity  The ad motivates consumer to consider purchase of the brand  The ad creates strong brand associations

New Media Habits of Indonesian People

Media habit of Indonesian People

Percentage of Indonesian people (>10 years old) who are exposed to media 2003 2006 2009 Listen to the radio 50.29

40.26

23.5

Watch TV 84.94

85.86

Read newspaper 23.7

Source: Central Bureau of Statistics (2009) 23.46

90.27

18.94

TV penetration is highest and keeps increasing.

Media habits of Indonesian People

Students

Internet Mobile Radio TV (Free to-air)

Passive

Newspaper Magazines Outdoor ads

Active Young working adults Older working adults with families Silvers Interactive Active Active Interactive Passive Active Passive Source: Nielsen Ethno Immersion Study, 2010 Interactive Active Passive

The Mobile Culture: Engagement in Internet and Mobile Phone

Circle of friends will encourage ones to buy a Blackberry, too!

Blackberry is the fastest growth smart phone in Indonesia because of its Blackberry Messenger (BBM) Service !

Indonesian User Age Distribution on Facebook

The Fast Growth of Social Media in Indonesia

 Facebook is the most popular social media.

The Controversy of Facebook

 In May 2009, a group of Muslim clerics from Indonesia’s largest Islamic organization, the Nahdatul Ulama, recommended devising regulations to govern how Muslims use Facebook — pitting the nation’s religious against its increasing modernity.  The clerics were concerned that social-networking sites could be used to flirt, leading to illicit affairs, adultery or the unimaginable. Their concerns are valid in the Islamic community and it is not the first time -- Muslim leaders in Indonesia have had concerns with Friendster and MySpace before Facebook became popular.  However, the discourse is not followed by further actions such as issuing ‘fatwa’ (a religious edict).

Figure17.2

: Elements in the Communications Process

 Sender  Message  Receiver  Response  Feedback  Noise 14-25

The Communications Process

 Selective attention  Selective distortion  Selective retention 14-26

Figure and Ground Strategy to gain attention

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Figure 17.4 Steps in Developing Effective Communications

Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC 14-28

Target Audience analysis

(on their image of the company)

Image: The set of beliefs, ideas, and impressions a person holds regarding an object.

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Communications Objectives

 Category need  Brand awareness  Brand attitude  Purchase intention 14-30

Designing the Communications

     

Message strategy Creative strategy Message source Personal communication channels Nonpersonal communication channels Integration

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Creative Strategy

 Informational and transformational appeals  Positive and negative appeals 

Fear



Guilt



Shame



Humor



Love



Pride



Joy

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Comment on their relative positioning and creative strategies……

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Humor appeals

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Sexual appeals

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Fear appeals

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The Importance of Taglines

Brand Theme Our hamburgers are bigger.

Our tissue is softer.

Ad Tagline Where’s the Beef?

Please Don’t Squeeze the Charmin.

Drivers Wanted No hard sell, just a good car.

We don’t rent as many cars, so we have to do more for our customers.

We Try Harder

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Message Source

Celebrity Characteristics 

Expertise



Trustworthiness



Likeability

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Personal Communications Channels  Advocate Channels  Expert Channels  Social Channels 14-39

Stimulating Personal Influence Channels

 Identify influential individuals and devote extra attention to them  Create opinion leaders   Use community influentials in testimonial advertising Develop advertising with high “conversation value”  Develop WOM referral channels  Establish an electronic forum  Use viral marketing 14-40

An ad with high conversational value

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Nonpersonal Communication Channels

 Media  Sales Promotion  Events and Experiences  Public Relations 14-42

Establish the Budget

 Affordable  Percentage-of-Sales  Competitive Parity  Objective-and-Task 14-43

Objective-and-Task Method

     

Establish the market share goal.

Determine the percentage that should be reached.

Determine the percentage of aware prospects that should be persuaded to try the brand.

Determine the number of advertising impressions per 1% trial rate.

Determine the number of gross rating points that would have to be purchased.

Determine the necessary advertising budget on the basis of the average cost of buying a GRP.

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Characteristics of Communications

Advertising  Pervasiveness  Amplified expressiveness  Impersonality Sales Promotion  Communication  Incentive  Invitation 14-45

Characteristics of Communications

Public Relations and Publicity  High credibility  Ability to catch buyers off guard  Dramatization Events and Experiences  Relevant  Involving  Implicit 14-46

Characteristics of Communications

Direct Marketing  Customized  Up-to-date  Interactive Personal Selling  Personal interaction  Cultivation  Response 14-47

Figure 17.4 Cost-Effectiveness of Different Communication Tools

Figure 17.5 Current Consumer States for Two Brands

Public Relations Challenges

Public Relations Challenges

Factors in Setting Communications Mix  Type of Product Market  Consumer Readiness to Make a Purchase  Stage in the Product Life Cycle  Market Rank 14-52

Coordinating Media to Build Brand Equity   

Brand Signatures Ad Retrieval Cues Media Interactions

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IMC as a branding strategy

Communicating through Social Networking Sites

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