Chapter 14 Integrated Marketing Communications Copyright © 2013 Pearson Canada Inc.

Chapter 14Integrated Marketing Communications

Copyright © 2013 Pearson Canada Inc.

TFTDThe Dog, The Monkey and The Panther.The Art of Controlling Perceptions

https://www.youtube.com/watch?v=WmYYHaJpzCo

Developing a Marketing Strategy: The Marketing Mix

Product

Price

MarketingCommunications

Distribution

MarketingMix

Consumeror Business Customer

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Integrated Marketing Communications

14-4Copyright © 2013 Pearson Canada Inc.

“The coordination of various forms of marketing communications into a uniform program that maximizes the impact on consumers and other types of customers.”

The P of Promotion• Integrated Marketing Communication (IMC)• Made up of four major components

– Advertising• Media Communications• Event management• Direct response• Social Media

– Sales promotion• Direct response• Social Media

– Personal Selling– Public Relations

• Purpose - Building Brand Position

IMC Planning

Copyright © 2013 Pearson Canada Inc. 14-6

Advertising Tools

Hierarchy of Effects & Role of IMC

Unawareness

Awareness

Knowledge

Liking

Conviction/Intention

Purchase

Repurchase/Loyalty

IMC

AIDA (attention/awareness, interest, desire, action)

PreferenceBehavioural Objectives:• Trial

– Category Trial– Brand Trial– Brand Retrial– Brand Switching

• Repeat Purchase• Purchase Related

Behaviour• Repeat Consumption

Brand Attitude Objectives

Top of mindShare of mind

Advertising’s Role


Advertising is the placement of informative and/or persuasive messages in any medium by an identified sponsor.The basic objectives of advertising are:

1.To influence the thought patterns of the target audience in a favourable manner2.To educate the audience about product features and benefits.3.To create awareness of sales promotions which motivate purchase of a specific brand of good.

Marketing Communications Planning


“The process of making systematic decisions about which components of the marketing communications mix to use in a campaign.”

Different communications components may be better at achieving different objectives:

Sample Objectives: • Awareness• Position / Reposition• Trial purchase• Alter perceptions• Diffuse damaging situation

Marketing Communications Strategy


Budget Determination


A marketing manager must carefully calculate and rationalize their annual marketing budget.

Advertising Agency’s Role


Advertising agencies usually create the ad campaigns for marketing organizations.

Creative Planning

MediaPlanning

Advertising Agency

IMCPlanning

Two Key Aspects

Creative Strategy• What is the message and

why?• What will be the tone?• How will we appeal

emotionally?• What techniques will we

use?

Media Strategy• Where will the message

be utilized and why?• How will we get the

message to the audience?

• How often do we send the message?

• How will different media complement each other?

Creating the Message


The creative plan has three essential components:

Creative ObjectivesWhat to say

Creative StrategyHow to say it

Creative ExecutionSpecific tactics

The message includes the key benefit the brand offers.

Creative Objectives: What to Say?


The key aspect of the message (primary benefit) must be clearly communicated. It becomes a theme to the series of communications.

Creative Strategy


Agencies get paid to come up with the “big idea” to market a brand. Their message strategy considers potential themes and a variety of appeal techniques. • Humour

• Comparison

• Emotion

• Lifestyle

A lifestyle image works for Harley-Davidson.

Advertising AppealsProfit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism

Environmental Consciousness

Product saves, makes, or protects money

Appeals to body-conscious or health seekers

Used in selling cosmetics and perfumes

Social embarrassment, old age, losing health

Reason for use of celebrity spokespeople

Used for fast foods and microwave foods

Key to advertising vacations, beer, parks

Used for expensive or conspicuous items

Centres around environmental protection

The Major Types of Advertising

Product AdvertisingPioneeringPioneering

Stimulates primary demand for new product or category

Used in the PLC introductory stage

CompetitiveCompetitive Influences demand for brand in the

growth phase of the PLC Often uses emotional appeal

ComparativeComparative Compares two or more competing

brands’ product attributes Used if growth is sluggish, or if

competition is strong

Online

http://www.pizzahut.com

Creative Strategy - Techniques


• Celebrity Endorsement

• Testimonial

• Sex

• Product Demonstrations The Think Marketing box on p.285 demonstrates how national pride worked well in a campaign for Molson Canadian.

Media Strategy


Media strategy involves decisions about how to best reach the target audience.

Numerous factors are considered:

• Match Target with Medium

• Reach• Frequency• Continuity• Engagement• Market Coverage• Timing• Media Alternatives

Media Planning


The media plan has three essential components:

MediaObjectives

MediaStrategy

MediaExecution

A good media plan employs the right media to reach the target audience effectively and efficiently.

Media Strategy


• Matching Target with Medium – matching media that have a user profile (viewer, reader, listener, etc.) similar to the target market profile.

• Reach – The total audience, potentially exposed to a message in a given period.

• Frequency – The average number of times an audience is exposed to a message in a given period.

• Continuity – The length of time required to generate impact on a target market through a particular medium.

Media Strategy


• Tradeoffs in Media – many media require that you sacrifice one for the other.

• Richness – the depth and content of the message. Magazines and direct mail can give you lots of opportunity to share deep detailed messages

• Reach – Mass media allows you to reach many people but television, radio and newspaper ads are short and to the point.

• Internet – a medium that allows you to do both. Reach the whole world and give them a rich message. – Think Click-through

Media Strategy


• Engagement – A person’s degree of involvement with a medium when consuming it.

• Passive – television, magazine• Active – Internet, mobile – “click through”

• Market Coverage – The number of geographic markets in which advertising will occur for the duration of the plan (national, regional, city, etc.).

• Timing – The best time to reach the target market (time of day, day of week, season, etc.).

Media Alternatives


TelevisionRadio

NewspapersMagazines

Out-of-HomeDirect Response

___________

InternetMobile

Video Games

Blending the digital media with the traditional media is a challenge. Dollars are shifting towards digital media and away from mass media.

Media is always changing

Media Decisions in Advertising

Newspapers

Magazines

Yellow Pages

Internet / Mobility

Radio

Television

Outdoor Media

Direct Mail

Trade Exhibits

Cooperative Advertising

Brochures

Coupons

Catalogues

Special Events

Monitored Media Unmonitored Media

Media Related Opportunities


Advertisers are questioning the value of traditional advertising and are seeking new alternatives.

1. Product Placement

2. Branded Content (Sponsor Integration)

The Think Marketing box on p. 288 offers details about TD Canada Trust’s branded content campaign.

Media Execution


Specific plan details are clearly identified in this stage.

Evaluation of media cost comparisons (CPM)

Cost Per Mille(Thousand) – Cost per impression

Calendar outlining all media activities

Budget summaries (what, when, where, how much?)

Direct Response Advertising


“Advertising messages delivered by any medium that includes a direct means of response by the audience receiving the message.”

• Direct Mail• Direct Response

Television (DRTV) (Shopping Channel)

• Direct Email / Text

Direct Response and CRM


Reaching a customer individually and directly can be more efficient than using mass media.

Shoppers Drug Mart collects and analyzes information about customers and sends them offers they should be interested in by email or regular mail.

Online Advertising


“The placement of electronic communication on a website, in email, or over personal communications devices connected to the Internet.”

Ad placement is based on behavioural targeting:

“A data-base driven marketing system that tracks a consumer’s behaviour to determine his or her interests and then serves ads to that person relevant to that interest.”

Online Advertising Options


Numerous options are available to advertisers. • Search Advertising – An advertiser’s listing is placed within

or alongside search results in exchange for paying a fee each time someone clicks on the listing in those search results.

• Display Advertising – Banner ads in a variety of sizes.

• Rich Media – Banner ads that include animation, sound, video, and interactivity.

• Sponsorships – for a fee an advertiser commits to an extended relationship with a website.

Online Advertising Options


• Permission-Based Email – Consumers agree to accept online messages from commercial sources.

Intrawest Resorts sends offers of interest to customers in its database.

Social Media Communications


A few facts and figures about social media usage in Canada:

• The reach of social networking and blogging venues is growing at twice the rate of other Internet options.

• In Canada there are more than 16 million Facebook users.

• The shear size of the potential audience is overwhelming for marketers; many remain uncertain of the tangible benefits social communications offer.

Social Network Categories


Social networks fall into two basic categories:

• Broad-Based Sites such as Facebook and YouTube which offer an interactive network of friends, profiles, blogs, music and videos.

• Niche Sites such as Linkedin that attract people with specific interests (a network for business people and other working professionals).

Social Niche Site Example


Dogster is a niche site for dog lovers…600,000 of them!

That’s a significant audience for marketers of pet food and pet accessories.

Consumer Control


• Marketers are adapting to this shift in control and many are inviting consumer participation in brand communications programs, a concept referred to as crowdsourcing.

• Crowdsourcing uses the collective talents of the public to complete marketing tasks normally undertaken by a third party provider.

• Such tasks are completed more quickly and at lower cost.

“Whuffie”• A type of “on-line reputational currency” a

person or organization can create by offering value and help to others and thereby creating a relationship that can be cashed in from time to time

• http://www.youtube.com/watch?v=qyFaWoiL6Cc

• http://www.thewhuffiebank.org/

Advertising on Social Networks


Many standard Internet options are available on social networks along with some new opportunities.

• Display Advertising

• Brand Pages

• Referrals from a Friend Network (Whuffie)

• Company Blogs

Benefits of Social Media Communications


1. Word-of-Mouth communications among friend networks - trust - (such communications can also be damaging if a brand or company steps out of line).

2. Customer engagement with brands via contests and general conversation.

3. Direct contact with customers allows for feedback in a very quick manner.

4. Opportunity to learn about customer preferences.

Mobile Communications


Some facts and figures about the mobile communications market:

• 24.5 million wireless subscribers in Canada; 5.7 million subscribe to mobile broadband.

• Mobile only represents 7.5% of one’s media time but is growing faster than any other medium.

• Mobile communications allows marketers to reach consumers based on where they are located (location-based marketing was introduced earlier).

Mobile Marketing Communications


• Text Messaging

• Video Messaging

• Applications

• QR Codes – Two dimensional bar codes

The most common forms of communication thus far, include:

Mobile Communications: Applied


A quick response (QR) code communicates more information about a product to a customer.

Video Game Advertising


“The placement of ads in commercially sold games or games played online or on mobile phones.”

• Gamers are accepting of ads.

• The presence of ads adds some reality to the game.

• Brand recall scores increase after viewing in games.

Visual Model


Chapter 14 Integrated Marketing Communications Copyright © 2013 Pearson Canada Inc.

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