Lecture 2 27 14 Integrated Marketing Communications Thinking about PROMOTING the product now Outline Messages Budgeting Evaluation Message broken down into 3 parts 1 Objectives main goal big target you re trying to hit 2 Strategy general game plan for achieving objective 3 Tactics steps taken to implement the strategy Objective Formulation What do you need to accomplish What is the specific response you want from the targeted audience Increase awareness by 40 can actually calculate this objective Accomplish this requires understanding consumers Possible objectives o Awareness knowledge o Build strengthen brand associations o Liking attitude change o Actions intentions Hierarchy of Effects and Objective Selection o Where are we losing most of our market Radio example o Getting awareness 100 80 1 25 o Getting to knowledge 80 75 1 07 o Getting to liking 75 70 1 07 o Getting to intention 70 60 1 17 o Getting to listening 60 52 1 15 o Most productive objective might be to increase awareness because it has the highest ratio Promotional mix will need to be developed to meet the objective s Strategy Formula Three products tennis racquets o Wilson Pro Staff o Prince Pro 2 o Spalding Paradox Use the multi attribute approach to devise strategy Strategy Formulation Three possible strategies for Wilson Rating change assume to maximum Importance weight change assume to maximum Might need to add a new attribute all together e g Touch Tactics Types of appeals Informational appeals educating people about the product Shows Zoloft commercial which explains how depression is caused and how Zoloft will fix it Image appeals focuses on image of the user more abstract attributes about who you are Jaguar commercial showing how their car is powerful Fear appeals social or physical threats financial raise an effect then explain how your product can be the solution OnStar commercial showing a car crash what would you do if you did not have a cell phone on you OnStar will help you Humor appeals attract attention so you notice the product Olympus Optical zoom example Sex connection between product and how it will make you sexy beer ads GoDaddy woman in a bikini Emotion create emotion with your brand Beer commercial example of people clapping at the airport when the US Army soldiers get off the plane Appeal structure o Open ended or closed o Lead or finish with strong arguments o One sided or two sided Is the audience highly educated Address the negatives of your product so the consumers know you are aware o Comparative Show why your product is better than a competitor Advantages vs Disadvantages Lecture 2 27 14 Part 2 Guidelines for a S U C C E S S F U L Message Simple Unexpected Concrete Credible Emotional Story telling Salience of brand very clear what is being promoted All of these elements should make the ad stick Elaboration Likelihood Model ELM Peripheral Route Limited Involvement o Reduced processing of messages o Attend to heuristic simple cues o May not distinguish good vs bad arguments Central Route High Involvement o More extensive processing of messages o Less attention to heuristic cues o Distinguish good vs bad arguments o From this ELM perspective tactical decisions should hinge on involvement Remember the Communications Theory o Source o Message o Channel medium o Audience target market How Much to Spend Determining Spending o Budget Setting Do you always get more for the buck o Affordable Method what you can afford to spend on advertising o Percentage of Sales Method I m going to spend 10 on sales and 90 on promotions makes promotions drive your sales Problem if one drops so will the other o Optimization sound but not easy to use not very practical Acquating marginal cost with marginal revenue not very practical o Objective and Task Method Most balanced method finding your objective and what tasks you need to do knowing the costs of each task and totaling everything up most detailed and sound assumption you know what tasks you need Hard to do it precisely Competitive Parity Method figuring out what your competitors are doing o Maintenance objective figure out your market share then calculate Share of Marketing Effort or Share of Voice what you are going to spend on your ads based on what your competitors are spending o Growth Objective figure out what you want to grow to then find out the share of voice of competitors The 1 5 rule Desired market share gain x 1 5 Necessary Share of Voice SOV gain o How will you determine whether your campaign was Evaluation successful Ad recall Product brand awareness Liking of ad Favorable evaluation of product Effect on sales Key point What were your objectives Have you achieved them