Integrated Marketing Communication

1. Integrated Marketing Communication Anuchit Sirikit D.B.A. Certified Professional Marketer(Asia Pacific)

2. What is Marketing • Marketing Focuses on Exchange • exchange • Relationship Marketing • relationship marketing • superior customer value • mass customization • lifetime value

3. Integrated Marketing Communications • The Evolution of IMC • integrated marketing communications (IMC) • new advertising • orchestration • seamless communication • all sources of brands or company contact

4. 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.

5. 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.

6. 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.

7. Instrument of the marketing mix Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 3

8. Personal versus mass marketing communications Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 6

9. The marketing mix and Integrated marketing communications (1) Marketing communications Public relations Advertising ( f ) (a) (c) (e) ( b) (d) Marketing Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Evolution of Marketing Thought’ , Journal of business Research, 37, 155-62.

10. The marketing mix and Integrated marketing communications (2) • (a) Corporate advertising (b) Salesforce and channel communications, trade shows, packaging, direct marketing, sales promotions, etc. (c) Distribution, logistics , pricing, new-product development, etc. (d) Investor relations; community relations; employee communications; public affairs/government relations; most media relations; crisis communications, etc, (e) Product publicity; brochures and other collateral materials; parts of media relations, crisis communications and corporate identity; sponsorships, etc. ( f ) Traditional mass-media advertising Source: Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Evolution of Marketing Thought’ , Journal of business Research, 37, 155-62.

11. BRANDING

12. Determinants of successful brands Additional service Originality Successful brand Good quality Differentiation Integrated communications support Long- term perspective Source; Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C. (1997), Marketing. Concepts and Strategies. Boston: Houghton Mifflin.

13. Basic brand strategies National International Category Existing New Line extension Brand extension One brand Existing Global branding Corporate branding Multi-brands New brands New Local branding Two brands Endorsement Ingredient branding Co-branding Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 40

14. Components of consumer brand equity • Brand equity • Awareness • Perceived quality • Strong brand associations • Others assets • High brand loyalty Determinants Benefits Source: Aaker, D.A. (1991), Managing Brand Equity. New York; The Free Press.

15. The loyalty pyramid Committed buyer 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 Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 49

16. Brand equity components and branding benefits(1)

17. Brand equity components and branding benefits(2)

18. Brand equity components and advertising models Awareness-salience Brands awareness Symbolism 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.

19. Positioning

20. Market Positioning • Approaches to Positioning • Developing a Positioning Strategy

21. 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

22. Requirements for effective segmentation Measurable Attainable Effective segmentation Large enough Different Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 102.

23. Targeting strategies • Concentration on one segment • Selective specialization • Product specialization • Market specialization • Full market coverage

24. Determining the Positioning Strategy • Identifying competitors • Assessing consumers’ perceptions of competitors • Determining competitors’ positions. • Analyzing the consumers’ preferences. • Making the positioning decision. • Is the segmentation strategy appropriate?

25. 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.

26. Positioning strategies • Product attributes or benefits • Price / quality • Use or application • Product class • Product user • Competitor • Cultural symbols Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 108.

27. 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.

28. Stages in the product life-cycle and communications objectives Sales Time Marketing Top-of-mind awareness Brand attitude Brand loyalty Customer satisfaction Stage Marketing communications objectives Introduction Category need Brand awareness Brand knowledge Brand attitude Growth Brand attitude Brand preference Decline Purchase New target groups

29. Factors affecting the consumer choice situation Consumer / product relation Choice process Choice situation Point -of-purchase characteristics Consumer Advice involved with purchase Product characteristics Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 132.

30. Advertising objectives Product category need 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 Cognitive objectives Affective objectives Conative objectives

31. Advertising formats • Testimonial • Expert endorsement • Celebrity endorsement • Slice-of-life • Comparative advertising • Music

32. Moderating variables affecting the effectiveness of humour in advertising Product type Effective humorous ads Existing or new products Humour type Relation between humaour and product Prior brand evaluations Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 177.

33. Strengths of public relations Good citizenship Advice on important trends Crisis management Public relations Difficult-to-reach audiences Message flexibility More objective Cost effective Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 240.

34. Weaknesses of public relations Effectiveness hard to measure Lack of control Public relations Journalists as gatekeepers Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 249.

35. Trends and challenges in public relations Measuring effect Good employee relation Bad reputation Corporate branding Specialization PR Growing consumer awareness Globalization Single-issue publics New technologies Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 251.

36. RESEARCH

37. Motivation Research in Marketing • In-depth interviews • Projective techniques • Association tests • Focus groups • Problems and Contributions of Psychoanalytic Theory and Motivation Research

38. Strategic communication research • Pre-test of Advertising • Post-test of Advertising • Campaign evaluation Research

39. Objectives of pre-testing Selection of appropriate stimuli Optimise esposure frequency Pre-tests Testing a finished ad Assess communications effects Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 224.

40. Pre-testing techniques Internal evaluation • Checklists • Readability analysis Communications • Physiological tests • Recall • Direct opinion measurement Behavioural effects

41. Limitations of pre-testing Individual testing Never the best possible ad Influence of external factors Limitations of pre-testing Artificial setting Limited time between exposure and test Consumer jury effect Effect of repetition Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 230.

42. Post-testing techniques • Exposure • Message processing • recall • recognition • Behaviour

43. Limitations of post-testing Isolate effect of single ad Consumer’s honesty Message processing and buying Limitations of post-test Product involvement Relevance of recall Time between exposure and measurement Source: Pelsmacker, Patrick De., Geuens, Maggie and Bergh , Joeri Van den 2000. Marketing Communications Essex, England : Pearson Education Ltd. pp. 233.

44. Interactive Marketing Communication

45. Social presence and communications style in communications media Personal selling Higher Telemarketing X Electronic commerce Social presence 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 MCB University Press.

46. Consumer control on contact and content in communications media Consumer control of content Lesser Greater Lesser Direct mail advertising Telemarketing Consumer control of content 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.

47. Development cycles for websites on the net • Internet starters Transaction model--- Information model 1. Transactions 2. Client support/services 3. Information about image and products 4. Information-gathering/market research • Multinationals Information model-- Transaction model 1. Information about image and products 2. Information-gathering/market research 3. Client support/services 4. Internal support 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.

48. Business models for websites on the net Primary consequences for the company Cost-reduction Returns incteasing Internal Technical, legal and administration support Managing databases Internal research Internal reporting Marketing and sales support information Customer orientation Product information Promotion Developing databases Market research Transactions Customer service 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.

49. Internet advertising techniques E-mail Banners on e-mail Direct e-mail Good citizenship Sponsorship of e-mail newsletter Classified ads Banners on chat sites Adertorials World Wide Web Banners Interstitial Pushed advertising Buttons

50. Internet advertising in the future Purchase related content Experience rated content Sponsored content Internet advertising Targeted content Anchor tenancy deals Based on: Cartelliert, C., Rao, V., Parsons, A. and Zeisser, M. (1997), ‘The Impact of Internet Advertising’, The McKinsey Quarterly, 3, 45-62.