MARKETING COMMUNICATIONIntegrated Marketing Communication [IMC]

Birat Shrestha

MBA, KUSOMFebruary 11/March, 2018

Enabling Objectives

• Analyzing the communication process

• Setting objectives and budgeting for IMC programs

• Developing and creating the IMC program

• Creating monitoring, evaluating and control mechanisms

• Evaluating the Social, Ethical, and Economical Aspects of Advertising and Promotion

Course Outline

• Introduction to the concept of IMC

• Setting objectives and budgeting for IMC programs

• Developing, creating and planning IMC programs

• Creating monitoring, evaluating and control mechanisms

• Evaluating the Social, Ethical, and Economical Aspects of Advertising and Promotion

Course Delivery Method

• Interactive lectures

• Group discussion and presentations

• Case study analysis

• Comprehensive Marketing Communication Plan as the final project

INTRODUCTION TO THE CONCEPT OF IMC

LU: 1

The Role of Marketing

• “Marketing is the process of planning and executing the conception, pricing, promotion and distribution, of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives” – AMA

• “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large” - AMA– Developing products– Pricing them strategically– Making them available through a distribution network– Promoting them through sales and advertising activities– Marketing as an exchange process

IMC (Integrated Marketing Communication)• IMC is integrating all the messages created by the advertiser’s various

communication agencies and sent out by various departments within the company to achieve consistency

• IMC involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers

• IMC – a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – for example general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact.

• The need for IMC– Changing consumers, technology, and media consumption – The efficiencies of mass media advertising are not what they used to be– Consumers are more sophisticated, cynical, and distrusting than ever before– Tremendous gap exist between what companies say in their advertising and

what they actually do– In the long-run, nourishing good customer relationships is far more

important than making simple exchanges

Marketing

“I’m a great lover”

Advertising

“I’m a great lover”“I’m a great lover”“I’m a great lover”

Personal Selling

“Let me demonstrate that I’m a great lover”

Sales Promotion

“If you agree to believe that I’m a great lover,I’ll give you a free vacation package”

Public Relations

“Trust me,He’s a great lover”

Publicity“You know,he’s a great lover”

“I heard,he’s a great lover”

“Yes,he’s a great lover”

Branding

“I understand you’re a great lover”

Roles of IMC in Marketing Process

1. Marketing Strategy and Analysis

2. The Target Marketing Process

3. Developing A Positioning Strategy

4. Developing The Marketing Planning Program

Marketing Strategy and Analysis• Opportunity Analysis –

developing new markets, new products in terms of demand trends, customer needs

• Competitive Analysis –detecting direct and indirect competitors or substitute products and development of competitive advantage through product quality, premium pricings, brand image, direct distribution channel, production efficiency

• Target Market Selection –focus of the firm’s marketing effort as a firm’s marketing activities are aimed at a particular segment and advertising is aimed at particular group of target audience of consumer or business users

The Target Marketing Process• Identifying Markets –

consumers with similar lifestyles, needs, and specific requirements

• Market Segmentation –dividing up a market into groups with common needs and responding similarly to a marketing mix, based on geographic (region, country), demographic (age, gender, income, family type), psychographic (values & lifestyle), behavioristic (usage rate), and benefit sought (attributes)

• Selecting a Target Market –how many segments to enter (undifferentiated, differentiated, or concentrated marketing) as per their potentiality

• Market Positioning –the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition

Developing the Positioning Strategy• Positioning by Product Attributes and Benefits –

communicating the brand salient features or characteristics

• Positioning by Product Quality –Ads reflecting the image of a high-quality brand

• Positioning by Use or Application –Showing the occasion to consume the product (Cadbury, Kellogg's breakfast time cereal)

• Positioning by Product Class –Depicting the standard of the product (Maaza – real mango, energy drink, sport drink, soft drinks)

• Positioning by Product User –Associating the product with a particular user or a group of users (celebrity, CEOs, athlete)

• Positioning by Cultural Symbol –Associating the product with a meaningful symbol, icon (Amul Girl, Pillsbury Doughboy, Tony the Tiger)

Developing The Marketing Planning Program

• Product Decisions –a bundle of benefits; product symbolism (brand meaning to consumers); brand name, package design; brand identity (name, logo, color, symbol), brand equity (favorable image or association)

• Price Decisions –establishing price levels, developing pricing policies that are to be consistent with consumer product perception and the price should communicate brand positioning – premium or value positioning

• Promotional Strategies –Advertising, personal selling, sales promotions, public relations (pull or push promotions)

• Placement or Distribution Channel Decisions –it is making products or service available to the consumers; distribution channel selection as per brand image (integrated channel management)

The Roles of Advertising & Promotion

• Promotional Mix– Advertising– Personal Selling– Sales Promotion– Public Relations

• The Roles of Promotion– Inform– Persuade– Remind

DIFFERENT MODELS OF COMMUNICATION

THE COMMUNICATION PROCESS

Nature of Communication Process• Communication – passing of information, exchange of ideas, or the

process of establishing a commonness or oneness of thought between a sender and the receiver

• Effective communication – common link or thinking between two communicating parties

• Successful communication – depends on such factors as the nature of the message, the audience’s interpretation of it and the environment in which it is received

• Ability to communicate – affected by the receiver’s perception of the source and the medium used to transmit the message

• Meaning interpretations – words, symbols, pictures, sounds, colors, language have different meanings in different cultures and countries

– Coca-Cola in China Mandarin – sounded can happy, mouth happy– KFC “Finger-lickin good” – in China meant – “eat your fingers off”– GM’s Chevrolet Nova in Latin America – “no va” means “won’t go”– Tata Zica – Zica is an African virus – Use of hybrid language to connect – Pepsi – “Yeh Dil Maange More”

Coca Cola – “Life ho to aisi” Thanda matlap Coca Cola” Ford Ikon – “Josh machine” Snickers – “hungry kya” Cadbury Perk – “Thodi si pet puja” Mc Donalds – “What your bahana is”

A Basic Model of Communication• Source Encoding

– It is the sender of the message (company, Ad agency, salesperson, Ad spokesperson like celebrity, voiceover)

– Encoding – selecting words, symbols, pictures to deliver the message (brand IDs, colors, logos)

• Message– Content (information and meaning)– Structure and design (way the message is put together to deliver the

information or intended meaning – appeal)

• Channel– Personal channels (word-of-mouth, buzz to viral marketing – alcoholic brands

getting bartenders, waiters and waitresses to hype their brands while pharmaceutical companies having physicians to talk about their brands)

– Nonpersonal channels (mass media advertising – TVC, press Ads, hoarding boards, Websites)

• Receiver Decoding – It is the target audience – It is the process of transforming sender’s message back into thought – It is influenced by the receiver’s frame of reference or field of experience

• Noise (competing communication messages; poor communication)• Response/Feedback (questions, purchases from the audiences)

Source/Sender

EncodingChannel/Message

Decoding Receiver

Sender’s Field of Experience

Receiver’sField of Experience

Response/Feedbacks

Communication Process Model

TRADITIONAL RESPONSE HIERARCHY MODELSALTERNATIVE RESPONSE HIERARCHIESTHE FCB PLANNING MODEL

THE RESPONSE PROCESS

Traditional Response Hierarchy Models

• AIDA Model– Represents the stages of a personal-selling – Buyer passing through or taking buyers through –

Attention-Interest-Desire-Action

• Hierarchy of Effects Model– It shows the process by which advertising works– It assumes consumer passing through a series of steps in

sequential order from initial –awareness-knowledge-liking-preference-conviction-purchase

– Advertising effects occur over a period of time– Advertising communication may not lead to immediate

behavioral response or purchase; rather a series of effects must occur

– This has become a foundation for objective setting and measurement of advertising effects

Traditional Response Hierarchy Models• Innovation Adoption Model

– It evolved from work on the diffusion of innovation– This model represents the stages the consumer passes through in adopting a new

product or a service – The potential adopters must be moved through a series of steps before taking some

action – awareness-interest-evaluation-trial-adoption– Marketers encourage trial by using demonstration, allowing consumers to use the

product or sampling programs – This model is important to companies using IMC tools to introduce new products to

the target market– It is communicating to early adopters and encourage them to pass along information

to other consumers including early majority, late majority and laggards

• Information Processing Model– This model assumes the receiver in a persuasive communication situation like

advertising is an information processor or problem solver– The stages receiver goes through in being persuaded constitutes a response

hierarchy - presentation-attention-comprehension-yielding-retention-behavior– Retention stage of this model – provides information that she or he accepts as valid

or relevant, will be used later when making a purchase decision – This model is effective framework for planning and evaluating the effectiveness of

promotional campaign

Traditional Response Hierarchy Models

• Implication of the Traditional Hierarchy Models– They delineate the series of steps potential purchasers must be

taken through to move from unawareness of a product or service to readiness to purchase it

– The marketer can plan the communication as per the stage the potential buyer is in

– The model is useful as intermediate measures of communication effectiveness

• Evaluating Traditional Hierarchy Models– The cognitive stage (the knowledge and perception of consumer

towards a brand including its awareness, comprehension, attributes, benefits, information)

– The affective stage (the receiver’s feelings or affect level of like or dislike for a brand including its desire, preference, or conviction)

– The conative or behavioral stage (the consumer’s action toward the brand including trial, purchase, adoption or rejection)

MODELS

Stages

AIDA Model Hierarchy of Effects Model

Innovation Adoption

Model

Information Processing

Model

Cognitive Stage

Attention Awareness

Knowledge

Awareness Presentation

Attention

Comprehension

Affective Stage

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Yielding

Retention

Conative/ Behavioral

Stage Action Purchase

Trial

Adoption Behavior

Models of the Response Process

Alternative Response Hierarchies• The Standard Learning Hierarchy

– Learn-feel-do sequence– Information and knowledge acquired or learned about the various brands are the

basis for developing affect or feelings, that guide what the consumer will do – Consumers learn through active information search– High involvement products like durables have the standard learning hierarchy – Ads of products will be detailed with information for consumers to evaluate

• The Dissonance/Attribution Hierarchy – Do-feel-learn– When consumers are choosing between two complex alternatives similar in quality

with hidden or unknown attributes– When buying on the basis of recommendation– Consumers may suffer form post-purchase dissonance which is reduced by

selective learning – consumers seeking information supporting the product choice

• The Low-Involvement Hierarchy – Learn-do-feel– Receiver is viewed as passing from cognition to behavior to attitude change – It occurs when involvement in the purchase decision is low with minimal

differences on brand alternatives– Mass media advertising is important– Consumer engages in passive learning and random information catching

The Standard Learning Hierarchy

Advertising for innovative new products, Samsung must make consumers aware of their features and benefits

The Dissonance/Attribution Hierarchy

This Ad reinforces the benefit of Owning KIA Sportage

The Low Involvement Hierarchy

Advertising promoting taste and quality has helped Heinz dominate the ketchup market

The FCB Planning Model • This model is from Foot Cone & Belding advertising agency

• Dimensions of thinking vs feeling processing at each involvement level by bringing in theories regarding brain specialization

• The right/left brain theory – left side of the brain is into rational or cognitive thinking while the right side is more visual and emotional and engages more in the affecting (feeling) functions

• The FCB grid delineates four advertising planning strategies

1. Informative strategy (standard hierarchy for rational thinking and economical considerations)

2. Affective strategy (advertisers should stress feelings, psychological and emotional motives like self-esteem, self image)

3. Habit formation strategy (for low-involvement routine products where there is learning by doing situations)

4. Self-satisfaction strategy (it is for lo involvement/feeling products where appeals to sensory pleasure and social motives are important with learn-do-feel model)

Thinking FeelingHigh Involvement

1. Informative (thinker)Car-house-furnishings-new products

Model: Learn-feel-do (economic)Possible implicationsTest: Recall diagnostics Media: long copy formats in

reflective vehiclesCreative: specific information

demonstration

2. Affective (feeler)Jewelry-cosmetics-fashion apparel-motorcycle

Model: Feel-learn-do (psychological)

Possible implicationsTest: Attitude change, emotional

arousal Media: large space; image

specialsCreative: executional impact

Low Involvement

3. Habit Formation (doer)Food-household itemsModel: Do-learn-feel (responsive)Possible implicationsTest: SalesMedia: Small size Ads released frequently Creative: Reminder

4. Self-Satisfaction (reactor)Food-household itemsModel: Do-learn-feel (social)Possible implicationsTest: SalesMedia: Billboards, newspaper, TV,

POSCreative: Attention

The Foote Cone & Belding (FCB) Grid

FCB Model: “Upgrade” Campaign

LG encourages consumers to upgrade their appliances by focusing on product design

COGNITIVE RESPONSE APPROACHTHE ELABORATION LIKELIHOOD MODEL (ELM)

THE COGNITIVE PROCESSING OF COMMUNICATION

The Cognitive Response Approach• This model analyzes the thoughts that occur while

reading, viewing, and/or hearing a communication

• Its focus has been to determine the types of responses evoked by an advertising message and how these responses relate to attitude toward the Ad, brand attitudes, and purchase intentions

• It is encouraging customers to purchase a product by focusing on specific product attribute like design

• Basic categories of cognitive response and how they may relate to attitudes and intentions

– Product/message

– Source oriented

– Execution thoughts

The Cognitive Response Approach• Product/Message Thought

– It comprises those directed at the product or service and/or claims being made in the communication

– It has focus on two types of responses • Counterarguments

(thoughts the recipients has that are opposed to the position taken in the message – disbelief or disapproval)

• Support arguments (thoughts that affirm the claims made in the message – relate to the message acceptance)

• Source-Oriented Thoughts– Source derogations (negative thoughts about spokesperson or

organization making claims)– Source bolsters (reacting favorably to the source)

• Ad Execution Thoughts– Ad execution-related thoughts (creativity, visual effects, colors, voice

tones)– Attitude toward the Ad (receivers’ feelings of favorability or unfavorability

toward the Ad)

The Cognitive Response Approach

Consumers often generate support arguments in response to Ads for quality products

DEEP DISASTER:DEEP CLEAN:When stains get deep inUltra TIDE gets them clean out

Exposure to Advertisements

Product/Message Thoughts

Source-Oriented Thought

Ad Execution Thoughts

Brand Attitudes

Attitude toward Advertisement

Purchase Intention

A Model of Cognitive Response

Cognitive Response Attitude Purchase Intent

The Elaboration Likelihood Model (ELM)• ELM addresses the ways consumers process and respond to

persuasive message

• It was devised to explain the process by which persuasive communication (Ads) lead to persuasion by influencing attitudes

• The attitude formation or change process depends on the amount and nature of elaboration or processing of information in persuasive message

• Low elaboration occurs when the receiver does not engage in active information processing or thinking but rather makes inferences about the position being advocated in the message on the basis of cues

• ELM is a function of two elements– Motivation (involvement, personal relevance, needs and arousal)

– Ability (knowledge, intellectual, opportunity to process)

ELM – Routes to Persuasion or Attitude Change• Central Route to Persuasion

– The receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend, and evaluate messages are high

– The consumer pays close attention to message content and scrutinizes the message arguments

– A high level of cognitive activity or processing occurs

– The Ad’s ability to persuade the receiver depends on the receiver’s evaluation of the quality of the arguments presented

– Favorable cognitive responses (support arguments and bolsters) lead to favorable changes in cognitive structures (attitude change)

• Peripheral Route to Persuasion– The receiver may use peripheral cues or cognitive short-cuts rather

than carefully evaluating the message arguments in an Ad

– Favorable attitudes may be formed if the endorser in an Ad is viewed as an expert or is attractive or likable

Ad Depicting Central Route to Persuasion

Ad Depicting Peripheral Route to Persuasion

The Elaboration Likelihood Model of Persuasion

ELM - Implications• If the purchase involvement level of target consumers is

high the Ad or sales message should contain strong and valid arguments that are difficult for the message recipient to refute or counter-argue – Detailed information

– Technical justifications

– Award presentations

• If the involvement level of target audience is low, peripheral cues may be more important than detailed message arguments – Lifestyle presentation

– Pack focus

– Celebrity endorsement

Response Process and The Effects of Advertising -Summarization

• Response process in which advertising works• Individual responses to advertising are mediated or filtered by factors like –

motivation and ability to process information • “Advertisers need to move away from explicit and implicit reliance on

hierarchical models of advertising effects and develop models that place affect and experience at the center of advertising process” - Hall

• Marketers should focus on cognition, affect, and experience as critical variables that advertising may affect

• “Hierarchical models provide insight into whether advertising strategies need to focus on impacting cognition, affect, and/or behavior and they provide conceptual framework for planning.” – Thomas Barry

• “Marketing communication program include more than advertising –consumers are continually immersed in brand- sponsored communications including public relations, sales promotion activities, websites, direct marketing, event sponsorships, movie and TV show product placements –hierarchy models must move beyond just explaining the effects of advertising and consider how, and with what effects, consumers synthesizes information from all the various Integrated Marketing Communications activities for a brand.” – William Weilbacher

ADVERTISING INPUTMessage Content, Media Scheduling, Repetition

FILTERSMotivation, Ability (Involvement)

CONSUMER

Cognition Affect Experience

CONSUMER BEHAVIORChoice, Consumption, Loyalty, Habit, etc.

A Framework for Studying How Advertising Works

Promotional Planning Through The Persuasion Matrix

• To develop an effective advertising and promotional campaign, a firm must select the right spokesperson to deliver a compelling message through appropriate channels or media

• Source, message, and channel factors are controllable elements in communications model

• The persuasion matrix helps marketers see how each controllable element interacts with the consumer’s response process

• The matrix has two set of variables – Independent variables (controllable components of the

communication process)

– Dependent variables (the steps a receiver goes through in being persuaded – marketers can choose the person or source who delivers the message, the type of message appeal used, channel or medium, select their target audience)

Decisions that Can Be Evaluated with The Persuasion Matrix

• Receiver/Comprehension: Can the receiver comprehend the Ad?

– Knowing the target audience; Understanding the audience

• Channel/ Presentation: Which media will increase presentation?

– Media popularity and program ratings

• Message/Yielding: What type of message will create favorable attitudes or feelings?

– Humorous message; Sex appeal; Comparative advertising

• Source/Attention: Who will be effective in getting consumers’ attention?

– Breaking the clutter; Using the source that will attract the target audience's attention

The Persuasion Matrix

Independent Variables: The Communication Components

Dependent Variables

Source Message Channel Receiver Destination

Message presentation (2)

Attention(4)

Comprehension(1)

Retention(3)

Behavior

Source Factors• Source is the person involved in communicating a marketing message

– Direct source (spokesperson delivering the message)

– Indirect source (model just drawing attention)

• Source Credibility – internalization (influences beliefs, opinions, attitudes, and behaviors)

– Applying expertise (spokesperson as an expert)

– Applying trustworthiness (celebrities, newscasters due to their unbiased image, corporate leaders)

• Source Attractiveness – identification (the receiver adopts similar beliefs, attitudes, preferences, or behavior as that of the source)

– Applying similarity (if a communicator and receiver have similar needs, goals, interests, and lifestyles, the position advocated by the source is better understood and received – sports-star; “slice-of-life” relations – Maggi 2 mins)

– Applying likability (using celebrities – Lux soap; “real consumers” work if the message is strong – Dove soap; problems – overshadowing and over exposure; using decorative or physically attractive models in cosmetics)

• Source Power – compliance (perceived control – source able to control positive or negative sanctions to the receiver; perceived concern – the receiver must think the source cares about whether or not the receiver confirms; perceived scrutiny – the receiver’s estimate of the source’s ability to observe conformity)

Source Dimension: Applying Similarity

Source Dimension: Applying Likability

Message Factors• Message Structure

– Order of presentation (primacy effect – strongest arguments presented at the beginning of the message; recency effect – putting the strong points at the end)

– Conclusion drawing (messages should draw a firm conclusion or allow receivers to draw their own conclusions)

– Message sidedness (one-sided message – mentions only positive attributes or benefits; two-sided message – presents both good or bad points by admitting a problem and announcing an improvement; refutation – “inoculate” the target audience against a competitor’s counterclaims)

– Verbal versus visual messages (visual to grab the attention or to support the verbal part)

• Message Appeals

– Comparative advertising (recall level, brand attitude development – used from brands with small market share comparing it with market leader on some attribute – attack advertising)

– Fear appeal (emotional response and arouse individuals take to remove the threat; a low level of fear can have facilitating effects on persuasion but a high level of fear can produce inhibiting effects as the receiver can emotionally block the message or perceiving it selectively)

– Humor appeals (attracts and hold consumer’s attention but can have “wear-out” effect if repeated for a longer time-period a new joke or humor is required to be presented)

Channel Factors• Personal versus non-personal channels

(personal selling and word-of-mouth is more persuasive than mass media channel)

• Effects of alternative mass media (environment based communication)

• Differences in information processing(press media – “self paced” as readers process the Ad at their own rate and can study as long as they desire; broadcast media – externally paced as the transmission is controlled by the medium)

• Effects of context and environment(a qualitative media – the influence the medium has on the message – product type and media type match – the image of the media vehicle and or program)

• Clutter (amount of advertising on the medium)

THANK YOU/BEST WISHES

Questions/Answers/Discussions