Integrated Marketing

CHAPTER 6 Communication Strategy and Managemen

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-1

MARKETING COMMUNICATION

Marketing communication is the

process by which information about
a firm and its offerings is disseminated
to selected markets.
Its goals are to:
Achieve
Induce Generate
Postpurchase
Initial Trial Repeat Sales
Satisfaction

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-2

MARKETING COMMUNICATION

Communication informs buyers of the:

• Availability of an offering
• Unique benefits of the offering
• Where and how to obtain and use the
offering
The message should be:
Desirable to Believable as to
Exclusive to
the Target the Offering’s
the Offering
Market Benefits
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-3
MARKETING COMMUNICATION

Advertising

Personal Marketing Sales

Selling Communication Promotion
Mix

Public Direct
Relations Marketing
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-4
MARKETING COMMUNICATION

Integrated marketing communication is the

practice of blending different elements of the
communication mix in mutually reinforcing ways
to inform, persuade, and induce consumer action.

Examples:
Develop offering awareness and
Advertising
comprehension
Personal
Selling
Obtain final conviction and purchase

Sales Increase purchase intention and

Promotion induce actual purchase
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-5
SETTING REASONABLE
COMMUNICATION OJBECTIVES

Communication goals for the offering life cycle:

Primary Demand Selective Demand

Demand for the offering class Demand for a brand or offering

Occurs early in the life cycle Occurs later in the life cycle

The message focuses on: Substitute offerings exist

• Introducing the benefits The message:
of an offering
• Focuses on the benefits of a
• Overcoming the
specific brand or offering
objections to the offering
• Differentiates the offering from
competitive ones
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-6
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT

MARKETING WEBSITES
AND INTEGRATED
MARKETING
COMMUNICATIONS

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-7

MARKETING WEBSITES AND IMC

Is a place where a provider makes available

Website information to Internet users

Engages buyers/potential buyers in

Marketing
interactive communication to sell a firm’s
Website offerings or move them closer to a purchase

Is an electronic storefront that tries

Transactional
to convert online browsers into
Website online buyers

Promotes a firm’s offerings and

Promotional
provides information on how they are
Website used and where they are purchased
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-8
MARKETING WEBSITES AND IMC

Transactional Websites

Feature well-known, branded offerings

Have a technological infrastructure
designed to create a favorable
shopping and buying experience
Are a form of direct distribution

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-9

MARKETING WEBSITES AND IMC

Promotional Websites

Engage visitors with an interactive experience

involving games and contests
Provide prizes, such as electronic coupons
Generate awareness of, interest in, and trial
of a firm’s offerings
Support a firm’s advertising program and
traditional marketing channels
Are used for customer research and feedback
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-10
MARKETING WEBSITES AND IMC

Promotional Websites

Is a powerful information sources

Word of
that involves brand and offering
Mouth recommendations from friends

Buzz Consists of word-of-mouth behavior

Is an Internet-enabled strategy to:

Viral Encourage individuals to forward
marketer-initiated messages to others via
Marketing email
Offer consumers incentives for referrals
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-11
MARKETING WEBSITES AND IMC

Promotional Websites

Are cost effective in the:

Early stages of the process-need recognition

Development of product specifications
Supplier search
Evaluation and selection of the buying process
Providing feedback on offering performance
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-12
CHAPTER 6: INTEGRATED MARKETING
COMMUNICATION STRATEGY AND MANAGEMENT

COMMUNICATION MIX
BUDGETING

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-13

COMMUNICATION MIX BUDGETING

Make the communication budget

commensurate with the tasks required
of the communication activities
The more important communication is in a
marketing strategy, the larger the amount
of funds that should be allocated to it
Set the budget so that the marginal costs
of communication equals the marginal
revenues resulting from it

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-14

COMMUNICATION MIX BUDGETING

Budgeting Approaches

• Most widely used approach

• Past or anticipated sales are used as the basis
Percentage • When sales rise, communication expenses rise
of Sales • Simple to calculate
• Which comes first—sales or communication?
• Is not flexible or market-oriented

Fixed Dollar • Budget equals the per-unit allocation multiplied

Amount per by the number of units expected to be sold
Offering Unit • Used by durable-goods manufacturers

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-15

COMMUNICATION MIX BUDGETING

Budgeting Approaches
• Balances the firm’s and competitors’
communication expenses
Competitive
• Uses advertising share of voice
Parity
• Expressed as a percentage of total advertising
by all competitors in a market at a point in time

• Employed in introducing a new offering for

All Available which maximum exposure is desired
Funds
• Used by nonprofit organizations

Objective- • Objectives are set for a communication program

Task • Costs are based on the tasks to achieve the goals
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-16
COMMUNICATION MIX BUDGETING

Objective-Task

Involves three steps:

• Define the communication objectives
• Identify the tasks needed to attain the objectives

• Estimate the costs associated with the

performance of these tasks

Is the best but most difficult method to apply

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-17
COMMUNICATION BUDGET
ALLOCATION

A communication budget must be allocated

across a firms’ communication tools

As a percentage of their communication

budget:
• Marketers of consumer products and services
spend more for advertising

• Marketers of industrial products and services

spend more for personal selling

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-18

COMMUNICATION BUDGET
ALLOCATION

Six types of mass media to be selected:

Newspaper
Television Radio
s

Outdoor Magazines Internet

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-19

COMMUNICATION BUDGET
ALLOCATION

These media or channels, consists of:

Specific entities in which ads

Vehicles
can appear

Mass-App Vehicles that appeal to a broad

eal audience

Selective- Vehicles that appeal to a narrow

Appeal audience

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-20

COMMUNICATION BUDGET
ALLOCATION

Media can also be:

Reaching
Wholesaler
only one
Horizontal Producer -or- level of a
marketing
Retailer
channel
-or-

V
e Producer
r
t Reaching more than one
Wholesaler
i level of a marketing channel
c
a Retailer

l
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-21
COMMUNICATION BUDGET
ALLOCATION

Media selection is based on these factors:

Expressed as cost per thousand (CPM) readers or

Cost viewers to facilitate cross-vehicle comparisons

The number of buyers potentially exposed to an

Reach advertisement in a particular vehicle

• The number of times buyers are actually exposed

Frequency to an ad in a given time period
Frequenc
• Total exposure = Reach × y

The more closely target market’s characteristics match

Audience those of a vehicle’s audience, the more appropriate it is

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-22

COMMUNICATION BUDGET
ALLOCATION

Other media selection considerations:

The purpose of the ad (image building, etc.)
Ads emphasizing product needs:
• Price and immediate purchase—place in
newspapers
• Products requiring color illustration and detailed
explanation—place in magazines

The editorial climate of the vehicle

Offerings whose purchase is seasonal or
geographical
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-23
COMMUNICATION BUDGET
ALLOCATION

Media timing strategies include:

Concentrating advertising dollars in a

Blitz
relatively short time period when new
Strategy
products or services are introduced

Continuity Spending advertising dollars over the

Strategy long term to maintain continuity

Concentrating its advertising but also

Pulse
attempts to maintain some semblance
Strategy
of continuity
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-24
SALES FORCE BUDGET ALLOCATION:
HOW MANY SALES REPS?

NS = Number of sales reps

NC = Number of customers (actual or potential)
FC = Necessary frequency of customer calls
LC = Length of average customer call; includes travel time
TA = Average available selling time per sales rep

NC × FC × LC
NS =
TA

Note: The time period is normally one business year.

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-25
SALES FORCE BUDGET ALLOCATION:
HOW MANY SALES REPS?

Example:
NS =Number of sales reps NC × FC × LC
NS =
NC =2,500 potential customers TA

FC =4 customer calls per year

LC =2 hours average customer call; includes travel time

TA =1,340 average available selling time per sales rep

2,500 × 4 × 2
NS =
1,340

NS = 15 sales reps needed

© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-26
SALES FORCE BUDGET ALLOCATION

A sales force should be allocated based on:

• Organization and marketing objectives

• Offering characteristics
• Competitor and industry practices

Have sales representatives specialize in:

• Certain offerings
• Customer types
• Combination of these
© 2013 Pearson Education, Inc. publishing as Prentice Hall Slide 6-27