Download Consumer Behavior: People in the Marketplace

Managing Integrated
Marketing Communications
Kolter and Keller Ch. 17 and18
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Kotler on
Marketing
Integrated marketing
communications is a
way of looking at the
whole marketing
process from the
viewpoint of the
customer.
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Marketing Communications Mix
Different tools
serve different
purposes...
Advertisin
g
Sales
promotion
Publicity
and PR
…but boundaries
blurred
Direct
marketing
Sponsorship
Personal
selling
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Marketing Communications Mix
non-personal communication by an identified sponsor,
transmitted to target audience via (mass) media
creating, developing
Advertisin
direct relationships
g
with individual
short-term
Sales
incentives
customers
Direct
to encourage
promotion
marketin
sales
g
etc..
Personal
Publicit
Sponsorship
selling
y
and PR
Making“news”;
building
Informing, persuading
supporting event, person,
goodwill, understanding
etc, to enhance sponsor’s potential customers through
between organisations &
personal communication
awareness, image, etc.
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publics
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Advertising
 Advertising has been used for centuries.
 U.S. advertisers spend more than $237 billion each
year; worldwide spending approaches $470 billion.
 Advertising is used by:





Business firms
Nonprofit organizations
Professionals
Social agencies
Government
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Advertising
Advertising plays a pivotal
role in world commerce and
in the way we experience
and live our lives. It is part
of our language and our
culture…It is both a
complex communication
process and a dynamic
business process.
O’Guinn et al (2003) Advertising and
Integrated Brand Promotion, Ohio: SouthWestern, p8
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Selecting Advertising Media
How many exposures, E*, will produce
audience awareness A* depends on the
exposures’:
 Reach
 Percentage of people exposed to ad
 Frequency
 Number of times a person is exposed to ad
 Media Impact
 The qualitative value of a message exposure
through a given medium
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Deciding on Media and
Measuring Effectiveness
 Total Number of Exposures (E)
E=RxF
where R = reach, F = frequency
Known as Gross Rating Points (GRP)
 Weighted Number of Exposures (WE)
WE = R x F x I
where R = reach, F = frequency,
I = average impact
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Figure 18.2: Relationship Among Trial, Awareness,
and the Exposure Function
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Sales promotion
A diverse collection of incentive tools,
mostly short-term, designed to
stimulate quicker or greater purchase
of particular products or services by
consumers or the trade
(Kotler 2003:609)
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Role of Sales Promotion
Encourages consumers to
 try
coupons, price reductions, samples,
competitions etc
 switch
coupons, price reductions, free gifts, extra
product etc
 buy more
extra product, price reductions, premiums,
loyalty programs etc
 buy more price reductions, free gifts, etc
evenly
Encourages trade to
discounts, allowances,
 stock
bonuses, gifts,
 stock more
competitions, etc.
 display/promote
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Table 18-5: Major Consumer-Promotion Tools
Samples: Offer of a free amount of a product or service delivered door to
door, sent in the mail, picked up in a store, attached to another product, or
featured in an advertising offer.
Coupons: Certificates entitling the bearer to a stated saving on the
purchase of a specific product: mailed, enclosed in other products or
attached to them, or inserted in magazines and newspaper ads.
Cash Refund Offers (rebates): Provide a price reduction after purchase
rather than at the retail shop: consumer sends a specified “proof of
purchase” to the manufacturer who “refunds” part of the purchase price by
mail.
Price Packs (cents-off deals): Offers to consumers of savings off the
regular price of a product, flagged on the label or package. A reduced-price
pack is a single package sold at a reduced price (such as two for the price
of one). A banded pack is two related products banded together (such as a
toothbrush and toothpaste).
See text for complete table
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A Magazine Ad with Coupon
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Direct marketing
An interactive marketing system that uses one
or more communications media to effect a
measurable response and/or transaction at any
location, forming a basis for creating and further
developing an ongoing direct relationship
between an organisation and its customers.
(adapted from DMA, Kotler 2003; Brassington & Pettit 2003)
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Using Lists and Data to Identify Markets
Known
circumstances
Specific
behaviour
Similarity to
existing customers
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Direct Marketing
 Catalog Marketing
 Telemarketing and M-Commerce
 Inbound telemarketing
 Outbound telemarketing
 Four types of telemarketing:
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Telesales
Telecoverage
Teleprospecting
Customer service and technical support
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Direct Marketing
 Other Media for Direct-Response Marketing
 Direct-response advertising
 At-home shopping channels
 Videotext and interactive TV
 Kiosk Marketing
 E-Marketing
 Give the customer a reason to respond
 Personalize the content of your e-mails
 Offer something the customer could not get via direct
mail
 Make it easy for the customer to “unsubscribe”
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Sponsorship
…a business relationship between a provider of
funds, resources or services and an individual,
event or organization which offers in return
some rights and association that may be used
for commercial advantage
Brassington & Pettit (2003)
/ BDS Sponsorship
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Public Relations
 Major Decisions in Marketing PR
Table 18.8: Major Tools in Marketing PR
Publications: Companies rely extensively on published materials to reach
and influence their target markets. These include annual reports, brochures,
articles, company newsletters and magazines, and audiovisual materials.
Events: Companies can draw attention to new products or other company
activities by arranging special events like news conferences, seminars,
outings, trade shows, exhibits, contests and competitions, and anniversaries
that will reach the target publics.
Sponsorships: Companies can promote their brands and corporate name
by sponsoring sport and cultural events and highly regarded causes.
News: One of the major tasks of PR professionals is to find or create
favorable news about the company, its products, and its people, and get the
media to accept press releases and attend press conferences.
See text for complete table
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Common Communication Platforms
(Table 17.1)
Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Direct
Marketing
Print and
broadcast ads
Contests,
games,
sweepstakes,
lotteries
Press kits
Sales
presentation
Catalogs
Packagingouter
Premiums and
gifts
Speeches
Sales
meetings
Mailings
Packaging
inserts
Sampling
Seminars
Incentive
programs
Telemarketing
Motion
pictures
Fairs and
trade shows
Annual reports Samples
Electronic
shopping
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A Model of Communication
(Figure 17.2)
field of
experience
Source
field of
experience
Message
decodes
encodes
Receiver
feedback
noise
Source: adapted from W. Schramm (1971) “How communication works”, in
Schramm & Roberts (eds), The process and elements of mass communication
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The Communication
Process
 Target audience may not receive the
intended message for any of three reasons
(p. 500):
 Selective attention
 Selective distortion
 Selective retention
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Figure 17.4: Steps
in Developing
Effective
Communication
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Developing Effective
Communications
 Identify the Target Audience
 Image analysis
 Familiarity scale
Never
Heard of
Heard of
Only
Know a
Little Bit
Know a Fair
Amount
Know
Very Well
 Favorability scale
Very
Somewhat
Indifferent Somewhat Very
Unfavorable Unfavorable
Favorable favorable
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Figure 17.5: Familiarity-Favorability Analysis
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Example: Images of Three Hospitals
(Semantic Differential Scales)
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Developing Effective
Communications
 Determine the Communication Objective
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
Cognitive
Affective
Behavioral
Response-hierarchy models
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Developing Creative Strategy
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Figure 17.3: Response Hierarchy Models
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Developing Effective
Communications
 Hierarchy-of effects model
 Awareness
 Knowledge
 Liking
 Preference
 Conviction
 Purchase
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Developing Effective
Communications
 Design the Message
 AIDA model
 Gain attention
 Hold interest
 Arouse desire
 Elicit action
 Message Content
 Rational appeals
 Emotional appeals
 Moral appeals
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Developing Effective
Communications
 Message Structure
 Message Format
 Message Source
 Factors underlying source credibility
 Expertise
 Trustworthiness
 Principle of congruity
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Developing Effective
Communications
 Select the Communication Channels
 Personal Communication Channels
 Advocate channels
 Expert channels
 Social channels
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Developing Effective
Communications
 Establish the Total Marketing
Communications budget
 Affordable Method
 Percentage-of-Sales Method
 Competitive-Parity Method
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Deciding on the Marketing
Communications Mix
 The Promotional tools
 Advertising
 General Qualities:
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Public presentation
Pervasiveness
Amplified expressiveness
Impersonality
 Sales Promotion
 Benefits:
 Communication
 Incentive
 Invitation
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Deciding on the Marketing
Communications Mix
 Public Relations and Publicity
 Distinctive qualities:
 High credibility
 Ability to catch buyers off guard
 Dramatization
 Personal Selling
 Distinctive qualities:
 Personal confrontation
 Cultivation
 Response
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Deciding on the Marketing
Communications Mix
 Direct Marketing
 Distinctive qualities:
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Nonpublic
Customized
Up-to-date
Interactive
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Media Planning and Analysis
 Different types of medias used:
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Newspapers
Magazines
Radio and television
Satellite and cable
Direct Mail
The internet
Other (billboards, cinemas, trucks, ships, etc)
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Deciding on Media and
Measuring Effectiveness
 Choosing Among Major Media Types
Table 18.1: Profiles of Media Types
Medium
Advantages
Limitations
Newspapers
Flexibility; timeliness; good
local market coverage; broad
acceptance; high believability
Short life; poor reproduction
quality; small “passalong”
audience
Television
Combines sight, sound, and
High absolute cost; high
motion; appealing to the senses; clutter; fleeting exposure;
high attention; high reach
less audience selectivity
Direct mail
Audience selectivity; flexibility;
no ad competition within the
same medium; personalization
Relatively high cost; “junk
mail” image
See text for complete table
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Product Placement
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Cost-Effectiveness of
Different Promotional Tools
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Factors influencing choice of
mix
organisational resources
and objectives
nature of target market
and product
push / pull strategy
preferences
cost, availability of
options
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Integrated marketing communications
…the whole is greater than the sum of the parts
...so maximise the management of brand information
using every point of contact with consumers
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While traditional communication methods
make measurement of results difficult,
Internet communications offer different,
more immediate measures. How can
analysis of web site visitors’ behavior be
used to evaluate the effectiveness
of a company’s marketing
communications strategy?
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Many companies offer free samples as part
of a promotional campaign. This approach
extends beyond the grocery store or retail
outlet into large organizations like
universities. Can you identify any products
or services that are provided
to students or faculty at
your school as part of a
promotional campaign?
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