Lectures Marketing management: Chapter 17 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 17: Designing and managing integrated marketing communications provides students with the knowledge: The role of marketing communications, developing effective communications, deciding on the marketing communications mix,... Invite you to refer to the disclosures.

CHAPTER 17 DESIGNING AND MANAGING INTEGRATED

MARKETING COMMUNICATIONS

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

Chapter Questions

1. What is the role of marketing

communications?

2. How do marketing communications work?

3. What are the major steps in developing

Main Contents

1. The Role of Marketing Communications

2. Developing Effective Communications

3. Deciding on the Marketing Communications

Mix

4. Managing the Integrated Marketing

Communications Process

1 The Role of Marketing Communications

● The Changing Marketing Communications

The Changing Marketing Communication Environment

● Reduced effectiveness of the mass media

● Three (ABC, CBS, NBC) to a hundred

● Fragmentation of audiences with various

communications technologies and Internet

● Mobile broadband: 3G, 4G

● High-speed Internet connection

● DVRs allow consumers to eliminate

commercials with the push of fast-forward

button

Marketing Communications, Brand Equity and Sales

© Nguyễn Tiến Dũng 7

Macro Model of the Communication Process

Micro-models of Consumer Responses: Response

Hierarchy Models

2 Developing Effective Communications

Step 1: Identify Target Audiences

● Usually target customers

● Sometimes broader

● Current Image analysis

● What do they know about

us? (Brand Awareness)

● How do they feel about us?

(Brand Preferences)

Step 2: Determining Objectives

Determine the communications objectives: Examples

● Brand awareness: 80% know

● Brand attitude: 60% like

● Brand purchase intention: 30% intend to buy

the next time

Step 3: Designing the communications

● Message content: what to say?

● Message form: how to say?

● Creative strategy

● Informational appeals: product-related benefits

● Transformational appeals: non-product-related benefits

● Message source: who will present the

Mini-Case: Celebrity Endorsement as a Strategy, p 486

1 What are the good points

and risky points when

using celebrities to

endorse a company

product?

2 What do you think about

the title of the case? What

does it mean by “as a

strategy”? What are

strategic aspects of using

celebrities?

What are the good points and risky points when using celebrities to endorse a company product?

● Draw customer attention

● His or her (positive) image  brand image

● Help designing products, positioning …

● Brand effect:

● Better known, more awareness

● better, more positive image

● Sales effect : higher sales volume and

value?

Risks when using celebrities?

● High and higher costs

● Bad / negative issues with celebrities 

negative brand image

● Fit image to your brands

● Singers (Lam Truong)  detergents

● Strategic aspects:

● Use or do not use?

● Use one or several

● Create own celebrities or use outside sources

Step 4: Selecting communications channels

● Personal communications channels

● Non-personal communications channels

● Integration of communications channels

Mini-case: John Deere, p 487

● Pay similarly to the main competitors

● Unilever vs P&G, Omo, Viso vs Ariel, Tide

● Objective-and-task method

Objective and task method

1 Establish the market share goal

2 Determine the percentage of the market that should be

reached by advertising (E = Exposure)

3 Determine the percentage of aware prospects that should

be persuaded to try the brand

4 Determine the number of advertising impressions per 1%

trial rate (F = Frequency)

5 Determine the number of gross rating points (GRP) that

would have to be purchased: GRP = E x F

6 Determine the necessary advertising budget on the basis

of the average cost of buying a gross rating point

3 Deciding on the Marketing Communications Mix

● Characteristics of the Marketing

Factors in setting the marketing communications mix

● Types of product market

● Consumer markets

● Business markets

● Product-life cycle stage

● Introduction: ads, PRs, events and experiences >

personal selling, sales promotion, direct marketing.

● Growth

● Maturity stage: ads, events and experiences,

personal selling are more important

● Decline: sales promotion

● Buyer-readiness stage

Sales promotion

● Gain attention

● Incentive

● Invitation

Events and Experiences

● Relevant

● Involving

● Implicit

Direct and Interactive Marketing

● Customized

● Up-to-date

● Interactive

Word-Of-Mouth Marketing

● Credible

● Personal

● Timely

Buyer-Readiness Stage

Measuring communications results

● Communication effect: perception and

4 Managing the Integrated Marketing

Managing the IMC process

● From single-vehicle, single-stage campaigns

● To multiple-vehicle, multiple-stage campaigns

Events

and PR

Paid ads with a response mechanism

Direct mail telemarketingOutbound Personal selling communicationsOngoing

Two programs