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MARKETING MANAGEMENT
14th edition
17
Designing and
Managing Integrated
Marketing
Communications
Kotler
Keller
Marketing Communications
The means by which firms attempt to
inform, persuade, and remind
consumers, directly or indirectly, about
the products and brands they sell.
CHP: 17&18-2
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
Two Factors
are Changing the Face of Today’s
Marketing Communications:
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Market Fragmentation Led to
Media Fragmentation
The Changing
Communications Environment
CHP: 17&18-3
The Need for Integrated
Marketing Communications
With Integrated Marketing
Communications (IMC), the Company
Carefully Integrates and Coordinates
Its Many Communications Channels to
Deliver a Clear, Consistent, and
Compelling Message About the
Organization and Its Product or
Service.
CHP: 17&18-4
IMC Builds Brands
CHP: 17&18-5
Communication Platforms
Advertising
• Print and broadcast ads
• Packaging inserts
• Motion pictures
• Brochures and booklets
• Posters
• Billboards
• POP displays
• Logos
• Videotapes
Sales Promotion
• Contests, games,
sweepstakes
• Premiums
• Sampling
• Trade shows, exhibits
• Coupons
• Rebates
• Entertainment
• Continuity programs
CHP: 17&18-6
Communication Platforms
Events/ Experiences
• Sports
• Entertainment
• Festivals
• Arts
• Causes
• Factory tours
• Company museums
• Street activities
Public Relations
• Press kits
• Speeches
• Seminars
• Annual reports
• Charitable donations
• Publications
• Community relations
• Lobbying
CHP: 17&18-7
Communication Platforms
Personal Selling
• Sales presentations
• Sales meetings
• Incentive programs
• Samples
• Fairs and trade shows
Direct Marketing
• Catalogs
• Mailings
• Telemarketing
• Electronic shopping
• TV shopping
• Fax mail
• E-mail
• Voice mail
CHP: 17&18-8
Product Launch Communications Mix
Kleenex allocated its
communications
dollars:
•75% Television
•23% Print
•2% Online
CHP: 17&18-9
Promotion Mix Strategies
Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.
Strategy
Selected
Depends
on:
Type of
ProductMarket &
Product
Life-Cycle
Stage
Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.
CHP: 17&18-10
Elements in the Communications
Process
CHP: 17&18-11
The Communications Process
Selective attention
Selective distortion
Selective retention
CHP: 17&18-12
Response Hierarchy Models
CHP: 17&18-13
Steps in Developing Effective
Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Manage IMC
CHP: 17&18-14
Communications Objectives
Category Need
Brand Awareness
Brand Attitude
Purchase Intention
CHP: 17&18-15
Designing the Communications
•
•
•
•
Message strategy
Creative strategy
Message source
Personal
communication
channels
• Nonpersonal
communication
channels
• Integration
CHP: 17&18-16
Creative Strategy
• Informational and transformational
appeals
• Positive and negative appeals
– Fear
– Guilt
– Shame
– Humor
– Love
– Pride
– Joy
CHP: 17&18-17
Message Source
Celebrity Characteristics
– Expertise
– Trustworthiness
– Likeability
CHP: 17&18-18
Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.
Affordable
Percentage of Sales
Based on What the
Company Can Afford
Based on a Certain Percentage
of Current or Forecasted Sales
Objective-and-Task
Competitive-Parity
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Based on the Competitor’s
Promotion Budget
CHP: 17&18-19
Setting the Promotion Mix
Advertising
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
CHP: 17&18-20
Characteristics of Communications
Advertising
• Pervasiveness
• Amplified
expressiveness
• Impersonality
Sales Promotion
• Communication
• Incentive
• Invitation
CHP: 17&18-21
Characteristics of Communications
Public Relations
and Publicity
• High credibility
• Ability to catch
buyers off guard
• Dramatization
Events and
Experiences
• Relevant
• Involving
• Implicit
CHP: 17&18-22
Characteristics of Communications
Direct Marketing
• Customized
• Up-to-date
• Interactive
Personal Selling
• Personal interaction
• Cultivation
• Response
CHP: 17&18-23
Cost Effectiveness by Buyer
Readiness Stage
CHP: 17&18-24
MARKETING MANAGEMENT
14th edition
18
Managing Mass
Communications
Kotler
Keller
Advertising
Any paid form of nonpersonal presentation
and promotion of ideas, goods, or
services by an identified sponsor.
CHP: 17&18-26
The Five M’s of Advertising
CHP: 17&18-27
Advertising Objectives
Informative
advertising
Persuasive
advertising
Reminder
advertising
Reinforcement
advertising
CHP: 17&18-28
Creative Brief
•
•
•
•
•
Positioning statement
Key message
Target market
Objectives
Key brand benefits
•
•
•
•
•
Brand promise
Evidence of promise
Media
Background
Creative
considerations
CHP: 17&18-29
Television
Advantages
• Reaches broad
spectrum of
consumers
• Low cost per exposure
• Ability to demonstrate
product use
• Ability to portray
image and brand
personality
Disadvantages
• Brief
• Clutter
• High cost of
production
• High cost of
placement
• Lack of attention by
viewers
CHP: 17&18-30
Print Ads
Advantages
• Detailed product
information
• Ability to communicate
user imagery
• Flexibility
• Ability to segment
Disadvantages
• Passive medium
• Clutter
• Unable to
demonstrate product
use
CHP: 17&18-31
Media Selection
•
•
•
•
Reach
Frequency
Impact
Exposure
CHP: 17&18-32
Relationship among Trial, Awareness,
and the Exposure Function
CHP: 17&18-33
Reach x Frequency = GRPs
CHP: 17&18-34
Major Media Types
•
•
•
•
•
Newspapers
Television
Direct mail
Radio
Magazines
•
•
•
•
•
•
Outdoor
Yellow pages
Newsletters
Brochures
Telephone
Internet
CHP: 17&18-35
Marketing Communication
Expenditures
CHP: 17&18-36
Turkish Market
Communication Expenditures (2012)
Media
MTL
% of Total
2.607
56,0
Internet
421
9,0
Radio
129
2,8
Outdoor
328
7,1
Magazines
101
2,2
Newspaper
Cinema
TOTAL
1.012
54
4.652
21,8
1,1
100,0
TV
15- 37
Online Advertising in Europe
CHP: 17&18-38
Turkish Communications
Environment (2009)
Media
Count
Newspaper
TV
National
Regional
Local
Radio
National
Regional
Local
260
16
15
229
1.200
30
108
1.062
32
Magazines
85
Ad Agency
83
Media Agency
12
CHP: 17&18-39
Place Advertising
•
•
•
•
Billboards
Public spaces
Product placement
Point-of-purchase
CHP: 17&18-40
Evaluating Advertising Effectiveness
• Communication Effect
Research
– Consumer
feedback method
– Portfolio tests
– Laboratory tests
• Sales-Effect Research
CHP: 17&18-41
Sales Promotion
Collection of incentive tools, mostly
short term, designed to stimulate
quicker or greater purchase
of particular products or services
by consumers or the trade.
CHP: 17&18-42
Sales Promotion Tactics
Consumer-directed
• Samples
• Coupons
• Cash refund offers
• Price offs
• Premiums
• Prizes
• Patronage rewards
• Free trials
• Tie-in promotions
Trade-directed
• Price offs
• Allowances
• Free goods
• Sales contests
• Spiffs
• Trade shows
• Specialty advertising
CHP: 17&18-43
Major Consumer Sales
Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified
products
Cash Refunds
Refund of part of the purchase price
Price Packs
Reduced prices marked on the label or
package
Premiums
Goods offered free or low cost as an
incentive to buy a product
Advertising
Specialties
Articles imprinted with an advertiser’s
name given as gifts
CHP: 17&18-44
Major Consumer Sales
Promotion Tools
Patronage Rewards
Cash or other rewards for the use of a
certain product
Point-of-Purchase
Displays and demonstrations that take
place at the point of sale
Contests
Consumers submit an entry to be judged
Sweepstakes
Consumers submit their names for a
drawing
Game
Presents consumers with something every
time they buy
CHP: 17&18-45