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A FRAMEWORK for MARKETING MANAGEMENT Chapter 15 Designing and Managing Integrated Marketing Communications Kotler Keller Cunningham Chapter Questions • What is the role of marketing communications? • What are the major steps in developing effective communications? • What is the communications mix, and how should it be set? • What is an integrated marketing communications program? © Copyright 2008 Pearson Education Canada 15-2 Profile: Canadian Marketing Excellence L’OREAL CANADA • L’Oréal Canada is renowned • In 2002, partnered with for its integrated marketing CanWest Global to develop a communications strategies series of TV vignettes by high profile Canadian women • Philosophy- to innovate in its products and its distinctly • In 2003, L’Oréal signed its Canadian marketing initiatives lower-priced Maybelline line on as a major sponsor of • Fully integrated, intelligent Canadian Idol, leading to messaging and savvy increased sales associations © Copyright 2008 Pearson Education Canada 15-3 Marketing Communications Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell © Copyright 2008 Pearson Education Canada 15-4 Figure 15.1 IMC to Build Brands © Copyright 2008 Pearson Education Canada 15-5 Table 15.1 Communication Platforms Advertising • Print/broadcast ads • Packaging inserts • Motion pictures • Brochures/booklets • Posters • Billboards • POP displays • Logos Sales Promotion • Contests, games, sweepstakes • Premiums • Sampling • Trade shows/exhibits • Coupons • Rebates • Entertainment • Continuity programs © Copyright 2008 Pearson Education Canada 15-6 Table 15.1 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 © Copyright 2008 Pearson Education Canada 15-7 Table 15.1 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 © Copyright 2008 Pearson Education Canada 15-8 Figure15.2 Elements in the Communications Process © Copyright 2008 Pearson Education Canada 15-9 Figure 15.3 Response Hierarchy Models © Copyright 2008 Pearson Education Canada 15-10 Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC © Copyright 2008 Pearson Education Canada 15-11 Communications Objectives Category need Brand awareness Brand attitude Purchase intention © Copyright 2008 Pearson Education Canada 15-12 Design the Communications Creative strategy Message strategy Informational appeal Transformational appeal Message source © Copyright 2008 Pearson Education Canada 15-13 Select Communication Channels • Personal communication channels • Non-personal communication channels • Integration of communication channels © Copyright 2008 Pearson Education Canada 15-14 Stimulating Personal Communications Channels Identify influentials Create opinion leaders Use influentials in communications Develop ads with high “conversation value” Use viral marketing © Copyright 2008 Pearson Education Canada 15-15 Non-personal Communication Channels Media Sales promotion Events and experiences Public relations © Copyright 2008 Pearson Education Canada 15-16 Establish the Budget Affordable Percentage-of-sales Competitive parity Objective-and-task © Copyright 2008 Pearson Education Canada 15-17 Characteristics of Communications Advertising • Pervasiveness • Amplified expressiveness • Impersonality Sales Promotion • Communication • Incentive • Invitation © Copyright 2008 Pearson Education Canada 15-18 Characteristics of Communications Public Relations and Publicity • High credibility • Ability to catch buyers off guard • Dramatization Events and Experiences • Relevant • Involving • Implicit © Copyright 2008 Pearson Education Canada 15-19 Characteristics of Communications Direct Marketing • Customized • Up-to-date • Interactive Personal Selling • Personal interaction • Cultivation • Response © Copyright 2008 Pearson Education Canada 15-20 Factors in Setting Communications Mix • • • • Type of product market Consumer readiness to make a purchase Stage in the product life cycle Market rank © Copyright 2008 Pearson Education Canada 15-21 Figure 15.4 Cost Effectiveness by Buyer Readiness Stage © Copyright 2008 Pearson Education Canada 15-22 For Discussion What are your favourite TV ads? Why are these your favourites? How effective are the message and creative strategies? How do they create brand equity? © Copyright 2008 Pearson Education Canada 15-23