Integrated Marketing Communication

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
Product Price Place Promotion
Benefits List price Channels Adverising
Features Discounts Logistics Public relations Product Price Place Promotion
Design Incentiv es Assortments Direct marketing
Options Credit terms Inventory Sponsorship
Branding Locations Point-of-purchase
Quality Payment periodsTransport Sales promotions
Packaging Exhibitions and trade fairs
Services Personal selling
Warranties Interactive marketing
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 200
0. Marketing Communications Essex, England : Pearson Education Ltd. pp. 3
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
Personal communications Mass communications
Feedback
Direction Two-way One-way
Speed of feedback High Low
Measuring effectiveness Accurate Difficult
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing
Communications Essex, England : Pearson Education Ltd. pp. 6
The marketing mix and Integrated marketing communications (1)
Marketing communications Public relations
Advertising
(f)
(a)
(c)
( b) (e) (d)
Marketing
Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Ev

olution of Marketing Thought’ , Journal of business Research, 37, 155-62.
The marketing mix and Integrated marketing communications (2)
 (a) Corporate advertising
(b) Salesforce and channel communications, trade s
hows, packaging, direct marketing, sales promotions, etc.
(c) Distribution, logistics , pricing, new-product development, etc.
(d) Investor relations; community relations; employee communications; public aff
airs/government relations; most media relations; crisis communications, etc,
(e) Product publicity; brochures an
d other collateral materials; parts of media relations, crisis communications and c
orporate identity; sponsorships, etc.
( f ) Traditional mass-media advertising
Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Evolution of Ma
rketing Thought’ , Journal of business Research, 37, 155-62.
BRANDING
Determinants of successful brands
Additional ser
Originality
vice
Successful br
and Good qualit
Differentiation y
Integrated commu
Long- term p nications support
erspective
Source; Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C. (1997), Marketing. Concepts and Strategies. Boston: Houghto
n Mifflin.
Basic brand strategies
National International
Category
Existing New
One brand Existing Line exte Brand ext Global branding
nsion ension
Corporate branding
New Multi-brands New brands Local branding
Two brands Endorsement Ingredient branding Co-branding
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing C
ommunications Essex, England : Pearson Education Ltd. pp. 40
Components of consumer brand equity
Brand equity
• Awareness
• Perceived quality
Determinants Benefits
• Strong brand associations
• Others assets
• High brand loyalty
Source: Aaker, D.A. (1991), Managing Brand Equity. New York; The Free Press.
The loyalty pyramid
Committed bu
yer
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
ommunications Essex, England : Pearson Education Ltd. pp. 49
Brand equity components and branding benefits(1)
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(2)
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 advertising models
Awareness-salience
Symbolism Brands awareness
Likeability
Strong brand associations
Emotions
Persuasion High quality perception
Relationship
High customer loyalty
Sales reponse
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 segm
entation
Different Large enough
Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communic
ations 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 compet
itors
 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
ommunications 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
Sales
Marketing Top-o Time

Stage Marketin Introduction CategoGrowth Brand Decline Purch
g communicatio ry need Brand awarattitude Brand pre f-mind awarenesase New targ
ns objectives eness Brand knowl ference s Brand attitude et groups
edge Brand attitude Brand loyalty Cu
stomer satisfacti
on
Factors affecting the consumer choice situation
Consumer /
Choice process product relat
ion
Choice situatio
n Point -of-purchase ch
Consumer aracteristics
Product character Advice involved

istics with purchase
Advertising objectives Product category need
Cognitive objectives 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 humo
ur in advertising
Product type
Existing or new pr Effective humoro

oducts us ads Humour type
Relation between h
Prior brand eval
umaour and produ
ct uations
Strengths of public relations
Good citize
Advice on imp
nship ortant trends
Crisis manage
ment
Public relations Difficult-to-reach

Message flexibility audiences
More objective
Cost effective
Weaknesses of public relations
Effectiveness ha
Lack of control
rd to measure
Public relations
Journalists as gate
keepers
Trends and challenges in public relations
Measuring eff
Bad reputatio ect Good employee relat
n ion
Corporate brandi
Specialization ng
PR
Growing consumer a
Globalization wareness
New technologie Single-issue public
s s
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 esposur Selection of approp
e frequency riate stimuli
Pre-tests
Assess communi Testing a finishe

cations effects d ad
Pre-testing techniques
Internal evaluation
 Checklists
 Readability analysis
Communications
 Physiological tests
 Recall
 Direct opinion measurement
Behavioural effects
Limitations of pre-testing
Individual
testing Never the bes
Influence of ext t possible ad
ernal factors
Limitations of pre
Limited time betwee -testing Artificial setting
n exposure and test
Effect of repeti Consumer jury e

tion ffect
Post-testing techniques
 Exposure
 Message processing
– recall
– recognition
 Behaviour
Limitations of post-testing
Isolate effect
of single ad
Message processi Consumer’s
ng and buying honesty
Limitations of po
st-test
Product involv Relevance of rec
ement all
Time between exposur
e and measurement
Interactive Marketing Communication
Social presence and communications style in communications
media
Higher Personal selling
Telemarketing
X Electronic co
Social pre mmerce
sence Direct mail
Traditional advertising
Lower
Synchronous Asynchronous
Communications
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 MC
B University Press.
Consumer control on contact and content in communications m
edia
Consumer control of content
Lesser Greater
Lesser
Direct mail advertising Telemarketing
Consumer co
ntrol of conte
nt
Personal selling Electronic commerce
Greater
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  Internet starters
Information model-- Transaction mo Transaction model--- Information mode
del l
1. Information about image and products 1. Transactions
2. Information-gathering/market research 2. Client support/services
3. Client support/services 3. Information about image and products
4. Internal support 4. Information-gathering/market research
5. Transactions
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
Cost-reduction Returns incteasing
Internal
Technical, legal and administr
ation support Managing datab Marketing and sales sup
Customer ori ases Internal research Internal port information
entation reporting
Product information Promoti
Customer service Trans on Developing databases M
actions arket research Transactions
External
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
E-mail
Banners on e- Direct e-mail

Sponsorship
Good citizeof e-
mail mail newsletter
nship
Classified a
ds Banners on ch
Adertorials at sites
World Wide Web Banners

Interstitial
Pushed adv
Buttons ertising
Internet advertising in the future
Purchase related conte
nt
Sponsored c Experience rated
ontent content
Internet advertisi
ng
Targeted cont Anchor tenancy

ent deals
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

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Integrated Marketing Communication

Anuchit Sirikit D.B.A.

Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Ev

Switchers/price sensitive - indifferent-no brand loyalty

Strong brand associations  Differentiation/positioning

Symbolism Brands awareness

Different Large enough

Marketing Top-o Time

Product character Advice involved

Existing or new pr Effective humoro

Public relations Difficult-to-reach

Assess communi Testing a finishe

Effect of repeti Consumer jury e

Banners on e- Direct e-mail

World Wide Web Banners

Targeted cont Anchor tenancy

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