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MARKETING MANAGEMENT 12th edition 17 Designing and Managing Integrated Marketing Communications Kotler Keller Chapter Questions • What is the role of marketing communications? • How do marketing communications work? • 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? 17-2 Mini’s Guerrilla Marketing 17-3 Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. 17-4 Figure 17.1 IMC Builds Brands 17-5 Table 17.1 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 17-6 Table 17.1 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 17-7 Visitors to the Woodward Dream Cruise often tour Ford’s Factory Museum 17-8 Table 17.1 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 17-9 Product Launch Communications Mix Kleenex allocated its communications dollars: •75% Television •23% Print •2% Online 17-10 Figure17.2 Elements in the Communications Process 17-11 Field of Experience Sender’s field Receiver’s field 17-12 The Communications Process Selective attention Selective distortion Selective retention 17-13 Figure 17.3 Response Hierarchy Models 17-14 Figure 17.4 Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC 17-15 Figure 17.5 FamiliarityFavorability Analysis 17-16 Image The set of beliefs, ideas, and impressions a person holds regarding an object. 17-17 Communications Objectives Category Need Brand Awareness Brand Attitude Purchase Intention 17-18 Designing the Communications • • • • Message strategy Creative strategy Message source Personal communication channels • Nonpersonal communication channels • Integration 17-19 Creative Strategy • Informational and transformational appeals • Positive and negative appeals – Fear – Guilt – Shame – Humor – Love – Pride – Joy 17-20 The Importance of Taglines Brand Theme Ad Tagline Our hamburgers are bigger. Our tissue is softer. Where’s the Beef? Please Don’t Squeeze the Charmin. No hard sell, just a good Drivers Wanted car. We don’t rent as many We Try Harder cars, so we have to do more for our customers. 17-21 Message Source Celebrity Characteristics – Expertise – Trustworthiness – Likeability 17-22 Personal Communications Channels Advocate channels Expert channels Social channels 17-23 Stimulating Personal Influence Channels • Identify influential individuals and devote extra attention to them • Create opinion leaders • Use community influentials in testimonial advertising • Develop advertising with high “conversation value” • Develop WOM referral channels • Establish an electronic forum • Use viral marketing 17-24 Nonpersonal Communication Channels Media Sales Promotion Events and Experiences Public Relations 17-25 Establish the Budget Affordable Percentage-of-Sales Competitive Parity Objective-and-Task 17-26 Objective-and-Task Method • Establish the market share goal. • Determine the percentage that should be reached. • Determine the percentage of aware prospects that should be persuaded to try the brand. • Determine the number of advertising impressions per 1% trial rate. • Determine the number of gross rating points that would have to be purchased. • Determine the necessary advertising budget on the basis of the average cost of buying a GRP. 17-27 Characteristics of Communications Advertising • Pervasiveness • Amplified expressiveness • Impersonality Sales Promotion • Communication • Incentive • Invitation 17-28 Characteristics of Communications Public Relations and Publicity • High credibility • Ability to catch buyers off guard • Dramatization Events and Experiences • Relevant • Involving • Implicit 17-29 Characteristics of Communications Direct Marketing • Customized • Up-to-date • Interactive Personal Selling • Personal interaction • Cultivation • Response 17-30 Factors in Setting Communications Mix • Type of product market • Consumer readiness to make a purchase • Stage in the product life cycle • Market rank 17-31 Figure 17.6 Cost Effectiveness by Buyer Readiness Stage 17-32 Figure 17.7 Current Consumer States for Two Brands 17-33 Coordinating Media to Build Brand Equity Brand Signature Ad Retrieval Cues Media Interactions 17-34 Marketing Debate What is the biggest obstacle to integrating marketing communications? Take a position: 1. The biggest obstacle to effective IMC programs is a lack of agency coordination across communication units. 2. The biggest obstacle to effective IMC programs is a lack of understanding as to how to optimally design and evaluate such programs. 17-35 Marketing Discussion Pick a brand and go to the Web site. Locate as many forms of communication as you can find. Conduct an informal communications audit. What do you notice? How consistent are the different communications? 17-36