Chapter 14 Integrated Marketing Communications PDF

Chapter 14 Integrated Marketing Communicati ons © 2023 McGraw Hill Limited 14-1  Chapter 14: Integrated Marketing Communications LEARNING OBJECTIVES LO1 Outline the process that firms use to communicat...

Chapter 14 Integrated Marketing Communicati ons © 2023 McGraw Hill Limited 14-1  Chapter 14: Integrated Marketing Communications LEARNING OBJECTIVES LO1 Outline the process that firms use to communicate with consumers LO2 List the steps in planning an integrated marketing communications campaign LO3 Describe what appeals advertisers use to get customers’ attention LO4 Identify how firms determine which media to use LO5 Summarize how firms measure integrated marketing communications success LO6 Explain the six tools of integrated marketing communications campaigns © 2023 McGraw Hill Limited 14-2  Integrated Marketing Communications –L'Oréal's Switch To Digital Communications  Switching communication mediums to digital marketing and social media  Using technology to become “informed”  Leveraging online influencers to sell products © 2023 McGraw Hill Limited 14-3  Integrated Marketing Communications (IMC) Integrated marketing communication (IMC) Represents the promotion dimension of the four Ps. It encompasses a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, digital, social and mobile media—in combination to provide clarity, consistency, and maximum communicative impact. © 2023 McGraw Hill Limited 14-4 Communicating with consumers: the communication process © 2023 McGraw Hill Limited 14-5  How Consumers Perceive Communication  Receivers decode messages differently  Senders adjust messages according to the medium & receivers’ traits Pepsi’s latest slogan, “That’s What I Like,” reinforces its customers’ identification with the product. © 2023 McGraw Hill Limited 14-6  Decoding The Message Each receiver decodes a message in his or her own way, which is not necessarily the way the sender intended. Consumers will perceive this giant billboard differently depending on their level of knowledge and attitude toward the brand. © 2023 McGraw Hill Limited 14-7 Steps in planning an imc campaign © 2023 McGraw Hill Limited 14-8  1. Identify Target Audience Campaign success depends on how well the advertiser can identify its target audience Research is conducted Information gathered sets tone of advertising & media selected Who is the target audience for this ad: men or women? © 2023 McGraw Hill Limited 14-9  2. Set Objectives All marketing communications aim to achieve certain objectives: to inform, persuade, and remind customers. This can be accomplished via: Pull Push strategy strategy Nature of the market Nature of the product Stage in the product life cycle © 2023 McGraw Hill Limited 14-  2. Set Objectives Company and Target Outcome Goals Media Used Campaign Market ASICS Branch out Even split Television and 17% increase It’s a big world. beyond males and print ads, in market Go run it. serious females, aged online share runner 30–49 advertising market segment and target casual runners. Columbia Showcase 60% males, Print ads, 11% increase Sportswear Columbia’s aged 20–59 mobile media, in sales, Tested Tough technical social media, innovation. videos, online advertising BMW Highlight the Mostly men, Social media, Posts reached #Driving Luxury new aged 35 and blog posts, up to 13,500 technology of up videos likes on the Instagram redesigned 7 Series sedan. © 2023 McGraw Hill Limited 14-  3. Determine Budget Considera tions Role that advertising plays in their attempt to meet their overall promotional objectives Expenditures vary over the course of the Product Life Cycle Nature of the market and the product influence the size of the budget © 2023 McGraw Hill Limited 14-  Budgeting Method Definition Methods Limitations Objective The communication budget is set based It can be difficult to identify the specific tasks that and Task on the cost of specific tasks required to will achieve the objectives and, as a result, it is achieve stated communication the most difficult method to use. objectives. Competitiv A method of determining a Prevents firms from exploiting the unique e Parity communications budget in which the opportunities or problems they confront in a firm’s share of the communication market. expenses is in line with its market share. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time. A method of determining a Assumes the percentage used in the past, or by Percentage communications budget that is based on competitors, is still appropriate for the firm. of Sales a fixed percentage of forecasted sales. Does not take into account new plans (e.g., to For example, a company with $2.5 introduce a new line of products in the current million in projected sales that allocates year). 3.5% to advertising would have a budget of $87,500. Affordable A method of determining a Assumes communication expenses do not Budgeting communications budget based on what stimulate sales and profit. is left over after other operating costs have been covered. That is, marketers forecast their sales and expenses, excluding communication, during the budgeting period. The difference between the forecast sales, minus expenses plus desired profit is applied to © 2023 the communication budget McGraw (i.e., the Hill Limited 14- Advertising Spend As A Percentage Of Sales © 2023 McGraw Hill Limited 14-  4. Convey Message Unique selling proposition Differentiate a product by communicating its unique attributes Often becomes the common theme or slogan of the entire Canada Goose benefits when celebrities, like campaign Rihanna, are photographed wearing its clothing. © 2023 McGraw Hill Limited 14-  The Appeal A rational appeal helps consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage consumers to evaluate the brand favourably The Kellogg Company’s RXBAR “No B.S.” campaign nearly on the basis of the key doubled brand awareness. benefits it provides © 2023 McGraw Hill Limited 14-  The Appeal An emotional appeal aims to satisfy consumers’ emotional desires rather than their utilitarian needs. The key to a successful emotional appeal is the use of emotion to create a bond between the consumer and the brand. Emotional appeal © 2023 McGraw Hill Limited 14- 5. Evaluate & Select Media Media planning Media mix Media buy © 2023 McGraw Hill Limited 14-  Mass & Niche Media Mass media reach large anonymous audience Niche media reach a smaller more targeted audience © 2023 McGraw Hill Limited 14- Paid, Owned, Earned Media © 2023 McGraw Hill Limited 14-  Choosing the Right Medium Medium Advantages Disadvantages Television Wide reach High cost Incorporates sound and view Multitude of channel and program options may increase awareness of competitors’ products Radio Relatively inexpensive No video, which limits presentation Selectively targeted Consumers give less focused attention Wide reach Exposure periods are short Magazines Very targeted Relatively inflexible Subscribers pass along to others Long lead times Newspaper Flexible Expensive in some markets s Timely Ads have short lifespan Can localize Digital Can be linked to detailed content Becoming cluttered Social Highly flexible and interactive Ad may be blocked by software Mobile Allows for specific targeting Out-of- Relatively inexpensive Not easily targeted Home Offers opportunities for repeat exposure Placement problems in some markets Exposure time is very short Direct Highly targeted Cost can vary depending on type of Marketing Allows for personalization direct marketing used Direct mail is more expensive than newer media © 2023 McGraw Hill Limited 14-  Determining the Advertising Schedule Continuo us Flighting Pulsing © 2023 McGraw Hill Limited 14-  6. Create Communication Creativity Creativity plays a should not major role overshadow in the the execution message stage The The type of execution medium style must determines match the the medium execution and style Communications objectives © 2023 McGraw Hill Limited 14- 7. Assess Impact Using Marketing Metrics Pretestin g Tracking Post- testing © 2023 McGraw Hill Limited 14- Integrated Marketing Communications Tools © 2023 McGraw Hill Limited 14-  Advertising  Most visible element of IMC  Extremely effective at creating awareness and generating interest © 2023 McGraw Hill Limited 14-  Personal Selling  Some products require the help of a salesperson  More expensive than other forms of promotion  Salespeople can add significant value, which makes the expense worth it © 2023 McGraw Hill Limited 14- Sales Promotions  Can be aimed at both end user consumers or channel members  Used in conjunction with other forms of IMC  Can be used for both short- term and long-term objectives © 2023 McGraw Hill Limited 14- Direct Marketing © 2023 McGraw Hill Limited 14-  Direct Marketing Characteristics Targeted Motivates an action Is measurable Direct marketers often use mobile devices to reach potential customers. Provides © 2023 McGraw Hill Limited 14-  Forms of Direct Marketing – Direct Mail/Email Direct Mail/Email A targeted form of communication distributed to a prospective customer’s mailbox or inbox © 2023 McGraw Hill Limited 14-  Forms of direct marketing – Catalogues Hard copy and online Welcomed in 80% of Canadian homes E.g., Ikea, Canadian Tire, and MEC The IKEA catalogue is a key part of its IMC strategy and allows consumers to purchase a wide variety of products. © 2023 McGraw Hill Limited 14-  Forms Of Direct Marketing – Direct Response Tv (DRTV) Short television commercials and/or infomercials Strong call to action via 1-800 number, mail or website © 2023 McGraw Hill Limited 14-  Forms of Direct Marketing – Kiosks Facilitate service delivery, e.g., airline ticket printing Sell services and products to consumers, e.g., Dell, Virgin Mobile, Hallmark © 2023 McGraw Hill Limited 14-  Public Relations (PR)  “Free” media attention  Importance of PR has grown as cost of other media has increased  Consumers becoming more skeptical about marketing, PR becoming more important Lululemon became the official sponsor of Team Canada for the Olympic Games. © 2023 McGraw Hill Limited 14-  Elements of a PR Toolkit PR Element Function Publications: brochures, Inform various constituencies about the special-purpose single-issue activities of the organization and publications such as books highlight specific areas of expertise Video and audio: programs, Highlight the organization or support public service cause-related marketing efforts announcements Annual reports Give required financial performance data and inform investors and others about the unique activities of the organization Media relations: press kits, Generate news coverage of the news releases, speeches, organization’s activities or event sponsorships products/services Digital media: websites, Websites can contain all the previously email campaigns mentioned toolbox elements, while email directs PR efforts to specific target © 2023 McGraw Hillgroups Limited 14-  Social and Mobile Media Digital Media tools range from: Websites Blogs Social media Mobile apps © 2023 McGraw Hill Limited 14- Types of Social Media © 2023 McGraw Hill Limited 14- Social & Mobile Tool Use from the 4E Lens © 2023 McGraw Hill Limited 14-