Download Principles of Marketing, Arab World Edition

Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki
CHAPTER ELEVEN
Communicating Customer
Value: Integrated Marketing
Communications Strategy
Lecturer: Insert your name here
Ch 11 - 0
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Ch 11 -1
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Chapter Learning Outcomes
The Promotion Mix
Topic Outline
Marketing Communication Mix
11 1 The
11.1
Th P
Promotion
ti
Mi
Mix
11.2 Integrated Marketing Communications
11.3 A View of the Communications Process
11.4 Steps in Developing Effective Marketing Communications
The promotion mix or marketing communication mix is the
specific blend of advertising, public relations, personal selling,
and direct-marketing tools that the company uses to
persuasively communicate customer value and build customer
relationships.
11.5 Setting the Total Promotion Budget and Mix
11 6 Socially
11.6
S i ll Responsible
R
ibl M
Marketing
k ti
C
Communications
i ti
Ch 11 - 2
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Ch 11 - 3
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1
The Promotion Mix
The Promotion Mix
Major Promotion Tools
Major Promotion Tools
Advertising is any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified sponsor.
• Broadcast
• Print
• Discounts
• Coupons
• Displays
• Internet
• Demonstrations
• Outdoor
Ch 11 - 4
Sales promotion is the short
short-term
term incentives to encourage
the purchase or sale of a product or service.
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Ch 11 - 5
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The Promotion Mix
The Promotion Mix
Major Promotion Tools
Major Promotion Tools
Public relations involves building good relations with the
company’s various publics by obtaining favorable publicity,
building up a good corporate image, and handling or heading
off unfavorable rumors, stories, and events.
Personal selling is the personal presentation by the firm’s
sales force for the purpose of making sales and building
customer relationships.
• Press releases
• Sponsorships
• Special events
• Sales presentations
• Trade shows
p g
• Incentive programs
• Web pages
Ch 11 - 6
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Ch 11 - 7
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2
The Promotion Mix
Integrated Marketing Communications
Major Promotion Tools
The New Marketing Communications Landscape
Direct marketing involves making direct connections with
carefully targeted individual consumers to both obtain an
immediate response and cultivate lasting customer
relationships—through the use of direct mail, telephone,
direct-response television, e-mail, and the Internet to
communicate directly with specific consumers.
• Catalog
• Consumers are better informed
• More communication
• Less mass marketing
• Changing communications technology
g
• Telemarketing
• Kiosks
Ch 11 - 8
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Ch 11 - 9
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Integrated Marketing Communications
Integrated Marketing Communications
The Shifting Marketing Communications Model
The Need for Integrated Marketing Communications
• Th
The explosive
l i
d
developments
l
iin communications
i
i
technology
h l
and changes in marketer and customer communication
strategies have had a dramatic impact on marketing
communications.
Integrated marketing communications is the integration
by the company of its communication channels to deliver a
clear, consistent, and compelling message about the
organization and its brands.
• Many large advertisers are shifting their advertising budgets
away from network television in favor of more targeted,
cost-effective, interactive, and engaging media.
Ch 11 - 10
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Ch 11 - 11
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3
Integrated marketing Communications
Ch 11 - 12
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Steps in Developing Effective Marketing
Communications
Identify the target audience
A View of the Communication Process
Ch 11 - 13
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Steps in Developing Effective Marketing
Communications
Identifying the Target market
Determine the communication objectives
Design the message
Choose the media
Select the message source
Collecting Feedback
Ch 11 - 14
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Ch 11 - 15
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4
Steps in Developing Effective Marketing
Communications
Steps in Developing Effective Marketing
Communications
Determining the Communication Objectives
Determining the Communication Objectives
Marketers seek a purchase response that results from a
consumer decision-making process that includes the stages of
buyer readiness.
Ch 11 - 16
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Steps in Developing Effective Marketing
Communications
Steps in Developing Effective Marketing
Communications
Designing a Message
Designing a Message
AIDA Model: Get Attention, Hold Interest, Arouse Desire,
Obtain Action
Message content
M
t t is
i an appeall or theme
th
that
th t will
ill produce
d
the
th
desired response.
• Rational appeal relates to the audience’s self-interest.
When putting the message together, the marketing
communicator must decide:
• Emotional appeal is an attempt to stir up positive or
negative emotions to motivate a purchase.
y ( message
g content )
• What to say
• Moral appeal is directed at the audience’s sense of right
and
d proper.
• How to say it ( message structure and format )
Ch 11 - 18
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Ch 11 - 19
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5
Steps in Developing Effective Marketing
Communications
Steps in Developing Effective Marketing
Communications
Designing a Message
Designing a Message
Message Structure:
Message Format:
• Do they draw a conclusion or leave it to the audience?
•
• Do they present the strongest arguments first or last?
Color, text, copy, images, headline, illustration, color,
message size and position, body language…
• Is the message one sided (strengths only) or two-sided?
Ch 11 - 20
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Ch 11 - 21
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Steps in Developing Effective Marketing
Communications
Steps in Developing Effective Marketing
Communications
Choosing Media
Choosing Media
Personal communication involves two or more people
communicating directly with each other.
• Face to face
• Phone
• Control of personal communication
• Company
• Mail
• Independent experts
• E-mail
E mail
• Internet chat
Ch 11 - 22
Personal communication is effective because it allows
personal addressing and feedback.
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• Word of mouth
Ch 11 - 23
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6
Steps in Developing Effective Marketing
Communications
Steps in Developing Effective Marketing
Communications
Choosing Media: Personal Communication
Non-Personal Communication Channels
Opinion leaders are people within a reference group who,
because of their special skills, knowledge, personality, or
other characteristics, exert social influence on others.
Non-personal communication is media that carry messages
without personal contact or feedback, including major media,
atmospheres, and events that affect the buyer directly.
Buzz marketing involves cultivating opinion leaders and
getting them to spread information about a product or service
to others
h
in
i their
h i communities.
ii
Ch 11 - 24
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Ch 11 - 25
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Steps in Developing Effective Marketing
Communications
Steps in Developing Effective Marketing
Communications
Non-Personal Communication Channels
Selecting the Message Source
Major
M
j
media
di include
i l d print,
i
b
broadcast,
d
di
display,
l
and
d online
li
media.
The message’s impact on the target audience is affected by
how the audience views the communicator.
Celebrities
Atmospheres are designed environments that create or
reinforce the buyer’s leanings toward buying a product.
Events are staged occurrences that communicate messages to
target audiences: press conferences, grand openings, exhibits,
public tours.
Ch 11 - 26
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•
Athletes
•
Entertainers
Professionals
•
Health care providers
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7
Steps in Developing Effective Marketing
Communications
Setting the Total Promotion Budget and Mix
Setting the Total Promotion Budget
Collecting Feedback
1. Affordable budget method
The communicator must research the effect of the message on
the target audience by measuring the behavior resulting from
the message.
2. Percentage-of-sales method
3. Competitive-parity method
4. Objective-and-task method
Ch 11 - 28
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Ch 11 - 29
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Setting the Total Promotion Budget and Mix
Setting the Total Promotion Budget and Mix
Setting the Total Promotion Budget
Setting the Total Promotion Budget
Affordable budget method sets the budget at an
affordable level.
Percentage of sales method sets the budget at a certain
percentage of current or forecasted sales or unit sales price.
• Ignores the effects of promotion on sales.
• Easy to use and helps management think about the
relationship between promotion, selling price, and profit per
unit.
• Wrongly views sales as the cause rather than the result of
p
promotion.
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Ch 11 - 31
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8
Setting the Total Promotion Budget and Mix
Setting the Total Promotion Budget and Mix
Setting the Total Promotion Budget
Setting the Total Promotion Budget
Competitive-parity method sets the budget to match
competitor outlays.
Objective-and-task method sets the budget based on what
the firm wants to accomplish with promotion and includes:
• Represents industry standards
• Defining promotion objectives
• Avoids promotion wars
• Determining tasks to achieve the objectives
• Estimating costs
Ch 11 - 32
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Ch 11 - 33
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Shaping the Overall Promotion Mix
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool
The Nature of Each Promotion Tool
Advertising reaches masses of geographically dispersed
buyers at a low cost per exposure, and it enables the seller to
repeat a message many times.
Sales promotion includes coupons, contests, cents-off deals,
and premiums that attract consumer attention and offer strong
incentives to purchase, and can be used to dramatize product
offers and to boost sagging sales.
Personal selling is the most effective method at certain
stages of the buying process, particularly in building buyers’
preferences, convictions, actions, and developing customer
relationships.
Ch 11 - 34
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Ch 11 - 35
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9
Shaping the Overall Promotion Mix
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool
Public relations is a very believable form of promotion that
includes news stories, features, sponsorships, and events.
Direct marketing is a non-public, immediate, customized,
and interactive promotional tool that includes direct mail,
catalogs, telemarketing, and online marketing.
Ch 11 - 36
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Shaping the Overall Promotion Mix
Integrating the Promotion Mix Checklist
Ch 11 - 37
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Socially Responsible Marketing Communication
Public policy: Rules and regulations
1. Identify customer touch points
2. Analyze trends—internal and external
3. Audit the areas of communication spending throughout the
organization
4. Team up in communications planning
Advertising and sales Promotion
• Avoid deceptive or false advertising
• Avoid bait-and-switch advertising
• Conform to all regulations and legislation
5. Create compatible themes, tones, and quality across all
communications media
6. Create performance measures that are shared by all communications
elements
7. Appoint a director responsible for the company’s persuasive
communications efforts
Ch 11 - 38
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Ch 11 - 39
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10
Socially Responsible Marketing Communication
Public policy: Rules and regulations
Personal Selling
• Follow rules of “fair competition”
• Do not offer bribes
• Do not attempt to obtain competitors’ trade secrets
• Do not disparage competitors or their products
Ch 11 - 40
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