Chapter 14 Textbook Summary Notes.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 2320A/B
Kevin Thompson

Chapter 14 Textbook Summary Notes Integrated Marketing Communications Strategy  Communicate their value proportions to customers, and what they communicate should not be left to chance  Good communications is a crucial element  Promotion mix (marketing communications mix): the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationship o Advertising: any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor o Sales promotion: short term incentives to encourage the purchase or sale of a product or service o Personal selling: personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships o Public relations: building good relations with the company's various publics by obtaining favourable publicity, building up a good corporate image, and handling or heading off unfavourable rumors, stories, and events o Direct marketing: direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships – the use of direct mail, the telephone, direct-response television, email, the internet, and other tools to communicate directly with specific consumers  The products design, its price, the shape and colour of its package, and the stores that it all communicate something to buyers  The entire marketing mix – promotion and product, price, and place – must be coordinated for greatest communication impact  The New Marketing Communications Landscape o Several major factors are changing the face of todays marketing communications o Consumers are changing; they are better and more informed and more communications empowered o Marketing strategies are changing; as mass markets have fragmented, marketers are shifting away from mass marketing o Sweeping changes in communications technology are causing remarkable changes in the ways in which companies and customers communicate with each other  The Shifting Marketing Communications Model o Advertisers are now adding a broad selection of more-specialized and highly targeted media to reach smaller customer segments with more- personalized, interactive messages o Specialty magazines, cable television channels, VOD, companies are doing less broadcasting and more narrowcasting o Predict a doom-and-gloom “chaos scenario” in which the old mass- media communications model will collapse entirely and increasingly abandon traditional mass media o Thus, many large advertisers are shifting their advertising budgets away from network television in favour of more targeted, cost- effective, interactive, and engaging media o Other industry insiders see a more gradual shift to the new marketing communications model o It seems likely that the new marketing communications model will consist of a shifting mix of both traditional mass media and a wide array of exciting, new more-targeted, more –personalized media o Bridge the “media divide” that too often separates traditional creative and media approaches from new interactive digital ones  The Need for Integrated Marketing Communications o Consumers don’t distinguish between message sources the way marketers do o Conflicting messages from these different sources can result in confused company images, brand positions, and customer relationships o Advertising messages are planned and implemented by the advertising department or an advertising agency o Personal selling communications are developed by sales management o Other company specialists are responsible for public relations, sales promotion events, Internet marketing, and other forms of marketing communications o Integrated marketing communications (IMC): carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products  Calls for recognizing all touchpoints where the customer may encounter the company and its brands  Each brand contact will deliver a message, whether good, bad, or indifferent  The company wants to deliver a consistent and positive message with each contact  Leads to a total marketing communications strategy aimed at building strong customer relationships by showing how the company and its products can help customers solve their problems  Ties together all of the company's messages and images  Some companies appoint a marketing communications director who has overall responsibility for the company's communications efforts  A View of the Communication Process o Integrated marketing communications involve identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response o Viewing communications as managing the customer relationship over time o “How can we reach our customers” “how can we find ways to let our customer reach us?” o The communications process should start with an audit of all the potential touchpoints that target customers may have with the company and its brands o The marketer needs to assess what influence each of these communications experiences will have at different stages of the buying process o Communication involves nine elements  The major parties in a communication – the sender and the receiver  The major communications tools – the message and the media  The major communication functions – encoding, decoding, response, and feedback  Noise in the system o The senders encoding process must mesh with the receiver’s decoding process o Marketing communicators may not always share their customer’s field of experience o To communicate effectively, the marketing communicator must understand the consumer’s field of experience o They must send messages through media that reach target audiences and they must develop feedback channels so that they can assess the audience’s response to the message  Steps in Developing Effective Marketing Communications o Identifying the Target Audience  Clear target audience in mind  The target audience will heavily affect the communicator’s decisions o Determining the Communication Objectives  Marketers must decide what response they seek  Of course, in many cases, they will seek a purchase response  The target audience may be in any of the six buyer-readiness stages: the stages consumers normally pass through on their way to making a purchase  Awareness, knowledge, liking, preference, conviction (believing the item is best for them), purchase  Thus, good marketing communication calls for “good deeds followed by good words” o Designing a Message  The message should get attention, hold interest, arouse desire, and obtain action (AIDA Model)  Decide what to say (message content) and how to say it (message structure and format)  Message Content  Rational appeals relate to the audience’s self-interest  They show that the product will produce the desired benefits  Emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase (love, joy, humour, fear, guilt)  Moral appeals are direct to the audience’s sense of what is “right” and “proper”  Message Structure  Handle three message structure issues  The first whether to draw a conclusion or leave it to the audience  The second whether to present the strongest argument first or last  The third whether to present a one-sided argument (mentioning only the products strengths) or two sided argument (touting the products strength while also admitting its short comings)  Message Format  Needs a strong format for the message  Advertisers can use novelty and contract; eye catching pictures and headlines; distinctive formats; message size and position; and colour, shape, and movement  Marketers must consider colour and other seemingly unimportant details carefully  Choosing Media o Two broad types of communication channels: personal and non- personal o Personal Communication Channels  Two or more people communicate directly with each other  Channels are effective because they allow for personal addressing and feedback  Word of mouth influence: has considerable effect in many product areas
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