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Chapter 12

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Chapter 12

Uploaded by

jayfan07
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© © All Rights Reserved
Available Formats
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Marketing Management 6e

Chapter 12:
Integrated Marketing Communications
and Media Choices

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives

After you have finished this chapter, you should be able to:

12-1: Discuss the optimal media choices for the placements of


your brand’s advertising

12-2: Describe the coordination efforts of marketers across


“integrated marketing communications”

12-3: Explain the various methods that media choices can be


evaluated for subsequent planning and budgeting

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Framework

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-1
What Media Decisions Are Made
in Advertising Promotional Campaigns?

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Decisions

1. How much do we spend?


2. What is the schedule of expenditure?
3. Which media do we use as channels of our communications?

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How Much to Spend
(1 of 3)
• Percentage of sales method
• Percentage is determined by prior years’ sales or industry norms.
• Percentage is then adjusted depending upon this year’s goals.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How Much to Spend
(2 of 3)
• Competitive parity
method
• Determine what
competitors are spending
• In some industries, ad
spending is proportional to
income

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How Much to Spend
(3 of 3)
• Strategic advertising goal method
• Set a strategic goal (awareness, attitude change, etc.).
• Then work backward to determine amount needed to reach goal.
• View advertising as an investment that will return sales and profits.
• Need to understand reach and frequency

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reach, Frequency, and GRPs
(1 of 2)
• Reach
• The share of your target that has seen your ad at least once
• Frequency
• The average number of times target saw the ad (within set duration)
• GRPs: Reach times Frequency
• Ad reached 25% of target an average of 3 times—the ad delivered 75
gross rating points.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reach, Frequency, and GRPs
(2 of 2)
• For reach, the goal is to expose as many of the target
customers as possible.
• Find the most cost-efficient media
Frequency depends on the goal.
• Awareness and memory—a few exposures
• Persuasion may take more
• Readily understood ads wear out quickly

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
When to Schedule

• It costs more to get


higher ratings.
• However, the
relationship is not
perfect.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Schedules
• Continuous
• Regular ad exposure; not necessarily predictable
• Need to avoid overexposure and overspending
• Occasional
• Called flighting or pulsing; pops up from time to time
• Seasonal
• Advertising pre-season for a given product

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 1
• When would you recommend advertising
1. Your school?
2. Oil changes?

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 1 Debrief
• When would you recommend advertising
1. Your school?
• Answer: A seasonal approach makes sense for a school: fall, for seniors looking at
applying to colleges; prior to semester changes; etc.
2. Oil changes?
• Answer: Approach would depend on goals: continuous could make sense in large
urban areas, but may result in overspending; occasional makes sense because
people may need to be reminded; seasonal could remind people to get oil changes
before bad weather, before summer vacations, etc.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-2
Integrated Marketing Communications
Across Media

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which Media
(1 of 2)
(slide 1 of 7)
• The choice of media outlet is difficult because …
• There are many media outlets.
• e.g., More television stations, more radio stations via XM, and the Internet
• Audiences are fragmented across the many media and use technology
to zip past ads.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which Media
(2 of 2)
(slide 1 of 7)
• Integrated marketing communication
• When advertising across media
• Consider the company’s overarching strategy.
• Ensure a consistent message across all communications.
• e.g., trade advertising, personal selling, direct marketing, and product placements
• Ensure consistent message across other marketing mix elements.
• e.g., product design, pricing, and channels
• Play to each media’s strength.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which Media
Relative (slide
Strengths
3 of 7) of Media

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which Media
Media Comparisons
(slide 4 of 7)
(1 of 2)
• TV ads
• Most expensive; yield the largest reach; yield a broad not targeted reach;
cable allows some targeting; frequency is expensive
• Magazines
• Have broad appeal or can be targeted
• Require long lead times for production; have good reproduction quality
• Nonintrusive; viewers can ignore ads
• Radio and newspapers
• Purchased nationally, but can be purchased for local markets
• Less expensive than TV, but also deliver smaller audiences

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Comparisons
(1 of 2)
• Billboards
• Relatively inexpensive
• Good for local coverage
• Online and direct mail
• Can be customized
• Online ads inexpensive and can be targeted; Internet penetration isn’t
100%
• Direct mail relatively inexpensive and targeted; not efficient (junk mail)

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Relative Strengths on Ad Content

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 2

1. Which media would you choose to advertise a new local


restaurant? Why?
2. What should you consider to help guarantee an integrated
approach?

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 2 Debrief

1. Which media would you choose to advertise a new local


restaurant? Why?
• Answer: Answers will vary but should address the target audience for
the ad and media expense vs. reach/effectiveness
2. What should you consider to help guarantee an integrated
approach?
• Answer: An integrated marketing communications strategy is essential
to make sure messaging is consistent no matter what media are used

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Beyond Advertising
• Personal selling
• Is an essential communication vehicle
• Accounts for approximately 14 million jobs
• About 10% of workforce
• Is especially important for expensive, complicated products

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Designing a Sales Force
• Questions to consider…
1. How many salespeople do I need?
• More with an aggressive launch or to protect territories
2. Where do I deploy them?
3. How do I compensate them?
• Salary and commission
• Proportion determined by tradition and competition

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advertising vs. Personal Selling Choices

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Communications Budget

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pull vs. Push Strategies
• Pull strategies
• Direct promotional efforts to consumers
• Rely on advertising and sales promotions

• Push relies more on personal selling


• Direct promotional efforts to channel
• Rely on trade allowances—price reductions to intermediaries for allocating
space, etc.
• May be passed on to retailer’s salespeople as cash, training and product
demonstrations, free merchandise, conventions, etc.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
(1 of 3)
• Purpose
• Provide information and build brand attributes
• Reach out to the company’s constituency
• Customers, suppliers, stockholders, government, employees, general community
• Convey a positive image and educate a constituency about the company
• Generate goodwill on behalf of the company

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
Public Relations
(slide 2 3)
(2 of of 3)

• PR tasks
• Issue press kits
• Press releases for newsworthy occurrences (e.g., product launch), company
information, bios, and history
• Maintain company information on website
• Arrange events (e.g., speaking engagements), sponsorships, and
community philanthropy
• Counter criticisms (recovery mode)
• Enhance and strengthen brand and corporate image (proactive mode)

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
Public Relations
(slide 3 3)
(3 of of 3)

• Publicity
• A communication tool the company does not pay for
• PR can issue press releases, but there is no guarantee that they will
be picked up
• Can be negative or positive because companies cannot directly
control it
• Has the appearance of objectivity

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Group Activity
• Form groups of 3-6 participants.
• Think of and describe an example of negative publicity that you
think a company handled well.
• Think of and describe an example of positive publicity and the
potential benefits of this publicity.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Group Activity Debrief
• Think of and describe an example of negative publicity that you
think the company handled well.
• Answer: Examples will vary, but may include Coke Classic, Cincinnati
Zoo gorilla, Facebook. Ways to handle bad publicity include:
• Act quickly and consistently with authenticity
• Monitor message tone and refrain from placing blame
• Commit to positive follow-up

• Think of and describe an example of positive publicity and the


potential benefits of this publicity.
• Answer: Examples will vary, but benefits include greater authenticity of
the brand in consumers’ minds; “free” advertising; overcoming negative
consumer perceptions; etc.
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Product Placement
• Products are integrated into movies, TV shows, and video
games.
• They are more subtle than ads.
• e.g., James Bond’s cars
• Consumers can’t “zip” past them.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Event Sponsorship
• Occurs in sports and cultural or artistic endeavors
• Brands draw from event’s positive valence and energy
• e.g., sponsoring NASCAR racing
• Not clear if it is cost-effective

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sales Promotion
• Activate purchase interest and influence short-term sales
• Can entice customers to switch brands
• Forms
• Coupons, rebates, promotional pricing, trade-ins, loyalty programs, trials,
contests, etc.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
IMC Choices Depend on Goals
• When deciding which promotional method to choose,
consider…
• The target audience
• The company’s goals (e.g., awareness, information, preferences,
purchase trial, and repeat purchase)
• Additional issues
• Should we schedule continuously, occasionally, or seasonally?
• What is the consumer’s purchase cycle?
• What is the level of saturation desired?
• What life cycle stage is the product in?
• What can we afford?
• What is best for our target?
• What do we want the target to know?
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example IMC Schedule

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-3
How Is the Effectiveness
of Advertising Media Measured?

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assessing Media Effectiveness
• If goal is awareness, reach matters.
• Measure viewership, readership, circulation numbers, traffic indices, etc.
• If goal is attitudinal, use surveys.
• It can be difficult to assess ROMI because customers may not
remember where they saw the ad.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assessing
Media Media Effectiveness
Effectiveness Considerations
(slide 2 of 3)

• Increasing ad budget relative to competition doesn’t increase


sales in general.
• Qualitative differences, such as better ad copy, can increase the
likelihood of sales.
• Ads that evoke positive feelings have been related to sales.
• Cost effectiveness of advertising to current customers who
already prefer the brand
• Online advertising
• Track click-thru rates, downloads, inquiries, purchases, returns, etc.
• Compare with cost per click, per download, per acquisition, etc.
• Online ad cost is low, but effectiveness is not great
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managerial Recap
• Decisions about expenditure and timing are integral to
promotional campaigns.
• Marketers must integrate marketing communications.
• Effectiveness of advertising is measured using long- and short-
term measures.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Knowledge Check Activity

Which of the following statements about the concept of pull as it


relates to marketing and sales is true?
a. The sales force is in charge of efforts to sell the product.
b. The most common example is direct marketing.
c. It does not rely on advertising.
d. It is bottom-up demand.

Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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