Part 7 : Communicating

Value
Chapter 17 – Designing and Managing
Integrated Marketing Communications
 The Role of Marketing Communications
• Marketing communications are the means by which firms attempt to
inform, persuade, and remind consumers – directly or indirectly –
about the products and brands that they sell
• Figure of Integrating Marketing Communications to build Brand Equity

Advertising Brand
awareness
Sales
Promotion
Brand
Image
Events &
Experiencing Marketing
Brand
Communications
Equity Brand
Program
Public relation responses
& publicity

Personal Direct Brand

selling Marketing relationships
 Developing Effective Communications

• Eight steps in developing effective communications:

a. Identify the Target Audience: it is often useful to define
target audience in terms of usage and loyalty
 Image analysis can be conducted to profile the target
audience in terms of brand knowledge
 The first step is measure the target audience’s
knowledge of the object by using the familiarity scale
I I I I I
Never Heard of Know a Know a Fair Know
Heard of only Little Bit amount very well
 Respondents who are familiar with the product by using
favorability scale
I I I I I
Very Somewhat Indifferent Somewhat Very
Unfavorable Unfavorable favorable favorable
 Developing Effective Communications
b. Determine the communication objectives:
 Category need: a (new) category product with “higher or little
involvement” will tell “more or less differentiation” e.g. a new-
to the world product the “electric car” begins with
establishing category need (to educate customers)
 Brand awareness: ability to identify the brand within category
(as recognition e.g. a sachet with yellow color and strong
hand for Extra Joss; or as recall the brand e.g. the brands in
healthy drinks)
 Brand attitude: evaluation of the brand with respect to its
perceived ability to meet current need e.g. IBM computer as
user friendly, with its processors, spare parts, maintenance,
services
 Brand purchase intention: to take purchase - related action.
Promotional offers in the form of coupons or two for one
deals encourage customers to make a mental commitment
to buy a product. But intensions will be less likely to be
formed if consumers do not have an expressed category
need
 Developing Effective Communications
c. Design the communications to achieve the desired response
will require solving three problems:
 What to say (message strategy): the appeals that establish
points of difference e.g. buyers seek rewards from results-of-
use experience (Darkie makes your teeth whiter), product-in-
use experience (Deodorant makes you accepted in society), or
incidental to use experience (Sanggar cuci Rinso)
 How to say it (creative strategy): either informational/rational
appeals (problem solution adv, product demonstration and
comparison adv) or transformational/emotional appeals
(Marlboro man)
 Who should say it (message source): delivered by popular
sources e.g. Michael Jordan for Nike (MJ known as expertise,
trustworthiness and likability)
d. Select the communications channel:
 Personal communications channel e.g. face-to-face, over the
telephone, through e-mail
 Non personal communications (mass communications)
channel e.g. radio, television, magazine, and billboard
 Developing Effective Communications

e. Establish the Total Marketing Communications Budget:

 Affordable method: promotion budget at what they think
the company can afford. It completely ignores the
immediate impact of promotion on sales volume
 Percentage-of-sales method: promotion expenditure will
vary with the company can “afford” (if sales grows up
and so does the promotion expenditures)
 Competitive-parity method: some companies set their
promotion budget to achieve share-of-voice parity with
competitors and thus prevents promotion wars
 Objective-and-task method e.g. establish 8% market
share goal from 50 million potential users – that is 4
million users would become loyal users
 Developing Effective Communications

f. Deciding on the marketing communication mix:

 Advertising with qualities of: pervasiveness, amplified
expressiveness, impersonality
 Sales promotion with qualities of: communication,
incentive, and invitation
 Public relations and publicity with qualities of: high
credibility, ability to catch buyers off guard, dramatization
 Events and experiences with qualities of: relevant,
involving and implicit
 Direct marketing with qualities of: customized, up-to-date,
interactive
 Personal selling with qualities of: personal interaction,
cultivation, response
 Developing Effective Communications

g. Measuring communication results: below figure indicates

that communication program is effective in creating
awareness, but the product fails to meet customer
expectation
20%
not aware
100%
40% 20%
market 80% didn’t try satisfied
aware
60% 80%
try disappointed

Total Awareness Brand Satisfaction

Trial
 Developing Effective Communications

h. Managing the Integrated Marketing

Communication (IMC) Process that evaluates
the strategic roles of a variety of
communication to provide clarity,
consistency, and maximum sales impact
through the seamless integration of discrete
messages
• IMC improves the company’s ability to reach
the right customers with the right messages at
the right time and in the right place