MRKT20052 Marketing Management and Digital Communications
Lecture 9: Designing and Managing Integrated Marketing
Communications; Managing Mass Communications; and Managing
Personal Communications
• In today’s lecture we will discuss:
• IMC and communication processes;
• Multi-channel systems; and
• Budget and design of communications.
Lecture 9 Overview
Understanding Integrated Marketing Communication
(IMC)
• Consumers are taking a more active role in deciding what communications
they want to receive and how they want to communicate.
• Therefore, the question for most marketers is not whether to communicate
but rather: what to say, how and when to say it, to whom and how often.
• “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”.
Communication Process Models
• Two models are useful: the macro and micro models.
Macro Model: Elements in Communication Process
The Micro Model of Consumer Responses
• Micro models of marketing communications concentrate on consumers’
specific response to communications.
• All models assume that the buyer passes through a:
• Cognitive Stage – Learn;
• Affective Stage – Feel; and
• Behavioural Stage – Do.
Hierarchy of Effects Model
Awareness Stages
Knowledge
Liking Preference
Conviction
Purchase
Right consumer, right
message, right place,
right time.
Consumer pays attention
due to ad but does not
distract from the intended
message.
Ad properly reflects the
consumer’s level of
understanding about the
product and brand.
Ad correctly positions the brand
in terms of desirable and
deliverable points of difference
and points of parity.
Ad motivates consumers
to consider purchasing
the brand.
Ad creates strong brand associations
to all of these stored communication
effects so that they can have an
effect when consumers are
considering making a purchase.
Cost-Effectiveness of Three Different Communication
Tools
Current Consumer States for Two Brands
Deciding on Reach, Frequency and Impact
• The next task is to find out how many exposures “E*”, will produce an
audience awareness of “A*”.
• The effect of exposures on an audience awareness depends on the
exposures’ reach, frequency and impact:
• Reach (R): the number of different persons or households exposed to a
particular media schedule at least once during a specified time period;
• Frequency (F): the number of times within the specified time period that an
average person or household is exposed to the message; and
• Impact (I): the qualitative value of an exposure through a given medium.
Deciding on Reach, Frequency and Impact Continued…
• The relationship between reach, frequency and impact is captured in the
following concepts:
• Total number of exposures (E), is the reach times the average frequency,
E = R x F. This measure is referred to as Gross Rating Points (GRP).
• Weighted number of exposures (WE), is the reach times the average
frequency times the average impact, WE = R x F x I.
Reach Versus Frequency
• Reach: is most important when:
• Launching new products;
• Flanker brands;
• Extensions of well-known brands;
• Infrequently purchased goods; and
• Going after an undefined target
market.
• Frequency: is most important
where:
• There are strong competitors;
• A complex story to tell;
• High consumer resistance; and
• A frequent purchase cycle.
• Is “the use of consumer-direct channels to reach and deliver goods and services
to customers without using marketing middlemen”.
• It can be timed to reach prospects at the right moment and receive higher
readership because it is sent to more interested prospects.
• It permits the testing of alternative media and messages in search of the most
cost effective approach.
• It also make the direct marketer’s offer and strategy less visible to competitors.
• Direct marketers can measure responses to their campaigns to decide which
have been the most profitable.
Direct Marketing
Direct Marketing Continued…
• Direct marketing has been a fast-growing avenue for serving customers,
partly in response to the high and increasing costs of reaching business
markets through a sales force.
• Sales produced through traditional direct marketing channels (catalogs,
direct mail, and telemarketing) have been growing rapidly, along with
direct mail sales, which include sales to the consumer market, B2B and
fundraising by charitable institutions.
Sales Force Structure
• The sales force strategy has implications for the sales force structure.
• A company that sells one product line to one end using industry with
customers in many locations would use a territorial structure.
• A company that sells many products to many types of customers might
need a product or market structure.
• Some companies need a more complex structure.
• Established companies need to revise their sales force structure as market
and economic conditions change.
Workload Approach to Determining Sales Force Size
• Customers are grouped into size classes according to annual sales
volume.
• Desirable call frequencies (number of calls on an account per year) are
established for each class.
• The number of accounts in each size class is multiplied by the
corresponding call frequency to arrive at the total workload for the country,
in sales calls per year.
Workload Approach to Determining Sales Force Size Continued…
• The average number of calls a sales representative can make per year is
determined.
• The number of sales representatives needed is determined by dividing the
total annual calls required by the average annual calls made by a sales
representative.
Sales Force Compensation
• High quality sales reps equals attractive compensation packages.
• Sales force compensation must include four components:
• The fixed amount;
• The variable amount;
• Expense allowances; and
• Benefits.
• Fixed and variable compensation leads to three types of plans:
• Straight salary;
• Straight commission; and
• Combination of salary and commission.
Evaluating Advertising Effectiveness
Major Consumer Promotion Tools
• Involves “a variety of programs designed to promote or protect a
company’s image or its individual products”.
• Steps to managing successful Public Relations:
• Press Relations;
• Product Publicity;
• Corporate Communication;
• Lobbying; and
• Counseling.
Public Relations
Major Tools in Marketing Public Relations
To Sum Up
• IMC is underpinned by strategic intent and should be guided by the
business’s value proposition and target market.
• Deciding on reach, frequency and impact is an important task.
• There are many major tools available to us once the type of
communications have been identified.
• IMC can be measured and must be monitored to see if targets have been
reached.
End of Lecture 9.