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MARKETING MANAGEMENT 14 th edition 17 Designing and Managing Integrated Marketing Communications KotlerKeller.

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Presentation on theme: "MARKETING MANAGEMENT 14 th edition 17 Designing and Managing Integrated Marketing Communications KotlerKeller."— Presentation transcript:

1 MARKETING MANAGEMENT 14 th edition 17 Designing and Managing Integrated Marketing Communications KotlerKeller

2 CHP: 17&18-2 Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

3 CHP: 17&18-3 The Changing Communications Environment Two Factors are Changing the Face of Today’s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting Marketers Have Shifted Away From Mass Marketing Less Broadcasting Market Fragmentation Led to Media Fragmentation

4 CHP: 17&18-4 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.

5 CHP: 17&18-5 IMC Builds Brands

6 CHP: 17&18-6 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

7 CHP: 17&18-7 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

8 CHP: 17&18-8 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

9 CHP: 17&18-9 Product Launch Communications Mix Kleenex allocated its communications dollars: 75% Television 23% Print 2% Online

10 CHP: 17&18-10 Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy Selected Depends on: Type of Product- Market & Product Life-Cycle Stage Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels. Promotion Mix Strategies

11 CHP: 17&18-11 Elements in the Communications Process

12 CHP: 17&18-12 The Communications Process Selective attention Selective distortion Selective retention

13 CHP: 17&18-13 Response Hierarchy Models

14 CHP: 17&18-14 Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC

15 CHP: 17&18-15 Communications Objectives Category Need Brand Awareness Brand Attitude Purchase Intention

16 CHP: 17&18-16 Designing the Communications Message strategy Creative strategy Message source Personal communication channels Nonpersonal communication channels Integration

17 CHP: 17&18-17 Creative Strategy Informational and transformational appeals Positive and negative appeals –Fear –Guilt –Shame –Humor –Love –Pride –Joy

18 CHP: 17&18-18 Message Source Celebrity Characteristics –Expertise –Trustworthiness –Likeability

19 CHP: 17&18-19 Affordable Based on What the Company Can Afford Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitor’s Promotion Budget Competitive-Parity Based on the Competitor’s Promotion Budget One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Setting the Total Promotion Budget

20 CHP: 17&18-20 Advertising Personal Selling Personal Selling Sales Promotion Sales Promotion Public Relations Public Relations Direct Marketing Direct Marketing Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive 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 Setting the Promotion Mix

21 CHP: 17&18-21 Characteristics of Communications Advertising Pervasiveness Amplified expressiveness Impersonality Sales Promotion Communication Incentive Invitation

22 CHP: 17&18-22 Characteristics of Communications Public Relations and Publicity High credibility Ability to catch buyers off guard Dramatization Events and Experiences Relevant Involving Implicit

23 CHP: 17&18-23 Characteristics of Communications Direct Marketing Customized Up-to-date Interactive Personal Selling Personal interaction Cultivation Response

24 CHP: 17&18-24 Cost Effectiveness by Buyer Readiness Stage

25 MARKETING MANAGEMENT 14 th edition 18 Managing Mass Communications KotlerKeller

26 CHP: 17&18-26 Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

27 CHP: 17&18-27 The Five M’s of Advertising

28 CHP: 17&18-28 Advertising Objectives Informative advertising Reminder advertising Reinforcement advertising Persuasive advertising

29 CHP: 17&18-29 Creative Brief Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations

30 CHP: 17&18-30 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

31 CHP: 17&18-31 Print Ads Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use

32 CHP: 17&18-32 Media Selection Reach Frequency Impact Exposure

33 CHP: 17&18-33 Relationship among Trial, Awareness, and the Exposure Function

34 CHP: 17&18-34 Reach x Frequency = GRPs

35 CHP: 17&18-35 Major Media Types Newspapers Television Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet

36 CHP: 17&18-36 Marketing Communication Expenditures

37 15- 37 Turkish Market Communication Expenditures (2012) MediaMTL % of Total TV2.60756,0 Internet4219,0 Radio1292,8 Outdoor3287,1 Magazines1012,2 NewspaperCinemaTOTAL1.012544.65221,81,1100,0

38 Online Advertising in Europe CHP: 17&18-38

39 CHP: 17&18-39 Turkish Communications Environment (2009) MediaCountNewspaper TV National Regional Local 260 16 15 229 32 Magazines 85 Ad Agency Radio National Regional Local 1.200 30 108 1.062 83 Media Agency 12

40 CHP: 17&18-40 Place Advertising Billboards Public spaces Product placement Point-of-purchase

41 CHP: 17&18-41 Evaluating Advertising Effectiveness Communication Effect Research –Consumer feedback method –Portfolio tests –Laboratory tests Sales-Effect Research

42 CHP: 17&18-42 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.

43 CHP: 17&18-43 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

44 CHP: 17&18-44 Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Major Consumer Sales Promotion Tools

45 CHP: 17&18-45 Patronage Rewards Point-of-Purchase Contests Sweepstakes Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit an entry to be judged Consumers submit their names for a drawing Presents consumers with something every time they buy Major Consumer Sales Promotion Tools


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