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MARKETING MANAGEMENT14th edition
17 Designing and
Managing Integrated Marketing
Communications
Kotler Keller
CHP: 17&18-2
Marketing Communications
The means by which firms attempt to inform, persuade, and remind
consumers, directly or indirectly, aboutthe products and brands they sell.
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 MarketingMore Narrowcasting
Marketers Have ShiftedAway From Mass
MarketingLess Broadcasting
Mark
et
Fragm
en
tati
on L
ed
to
Media
Fra
gm
enta
tion
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.
CHP: 17&18-5
IMC Builds Brands
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
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
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
CHP: 17&18-9
Product Launch Communications Mix
Kleenex allocated its communications dollars:•75% Television•23% Print•2% Online
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
CHP: 17&18-11
Elements in the Communications Process
CHP: 17&18-12
The Communications Process
Selective attention
Selective distortion
Selective retention
CHP: 17&18-13
Response Hierarchy Models
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
CHP: 17&18-15
Communications Objectives
Category Need
Brand Awareness
Brand Attitude
Purchase Intention
CHP: 17&18-16
Designing the Communications
• Message strategy• Creative strategy• Message source• Personal
communication channels
• Nonpersonal communication channels
• Integration
CHP: 17&18-17
Creative Strategy
• Informational and transformational appeals
• Positive and negative appeals– Fear– Guilt– Shame– Humor– Love– Pride– Joy
CHP: 17&18-18
Message Source
Celebrity Characteristics– Expertise– Trustworthiness– Likeability
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 SalesBased on a Certain Percentageof Current or Forecasted Sales
Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales
Competitive-ParityBased on the Competitor’s
Promotion Budget
Competitive-ParityBased 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
CHP: 17&18-20
Advertising Advertising
Personal Selling
Personal Selling
SalesPromotion
SalesPromotion
PublicRelations
PublicRelations
DirectMarketing
DirectMarketing
Reach Many Buyers, Repeat Message Many Times, Impersonal,
Expensive
Reach Many Buyers, Repeat Message Many Times, Impersonal,
Expensive
Personal Interaction, Relationship Building, Most Expensive Promo
Tool
Personal Interaction, Relationship Building, Most Expensive Promo
Tool
Wide Assortment of Tools, Rewards Quick Response, Efforts
Short-Lived
Wide Assortment of Tools, Rewards Quick Response, Efforts
Short-Lived
Very Believable, Dramatize a Company or Product,
Underutilized
Very Believable, Dramatize a Company or Product,
Underutilized
Nonpublic, Immediate, Customized, InteractiveNonpublic, Immediate, Customized, Interactive
Setting the Promotion Mix
CHP: 17&18-21
Characteristics of Communications
Advertising• Pervasiveness• Amplified
expressiveness• Impersonality
Sales Promotion• Communication• Incentive• Invitation
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
CHP: 17&18-23
Characteristics of Communications
Direct Marketing• Customized• Up-to-date• Interactive
Personal Selling• Personal interaction• Cultivation• Response
CHP: 17&18-24
Cost Effectiveness by Buyer Readiness Stage
MARKETING MANAGEMENT14th edition
18 Managing Mass
Communications
Kotler Keller
CHP: 17&18-26
Advertising
Any paid form of nonpersonal presentationand promotion of ideas, goods, orservices by an identified sponsor.
CHP: 17&18-27
The Five M’s of Advertising
CHP: 17&18-28
Advertising Objectives
Informative
advertising
Reminder
advertising
Reinforcement
advertising
Persuasive
advertising
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
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
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
CHP: 17&18-32
Media Selection
• Reach
• Frequency
• Impact
• Exposure
CHP: 17&18-33
Relationship among Trial, Awareness, and the Exposure Function
CHP: 17&18-35
Major Media Types
• Newspapers• Television• Direct mail• Radio• Magazines
• Outdoor• Yellow pages• Newsletters• Brochures• Telephone• Internet
CHP: 17&18-36
Marketing Communication Expenditures
15- 37
Turkish MarketCommunication Expenditures (2012)
MediaMedia MTLMTL % of Total% of Total
TVTV 2.6072.607 56,056,0
InternetInternet 421421 9,09,0
RadioRadio 129129 2,82,8
OutdoorOutdoor 328328 7,17,1
MagazinesMagazines 101101 2,22,2
NewspaperNewspaper
CinemaCinema
TOTALTOTAL
1.0121.012
5454
4.6524.652
21,821,8
1,11,1
100,0100,0
Online Advertising in Europe
CHP: 17&18-38
CHP: 17&18-39
Turkish Communications Environment (2009)
Media Count Newspaper
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
CHP: 17&18-40
Place Advertising
• Billboards
• Public spaces
• Product placement
• Point-of-purchase
CHP: 17&18-41
Evaluating Advertising Effectiveness
• Communication Effect Research– Consumer feedback
method– Portfolio tests– Laboratory tests
• Sales-Effect Research
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.
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
CHP: 17&18-44
SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a productTrial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase priceRefund of part of the purchase price
Reduced prices marked on the label or package
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Articles imprinted with an advertiser’s name given as gifts
Major Consumer Sales Promotion Tools
CHP: 17&18-45
Patronage RewardsPatronage Rewards
Point-of-PurchasePoint-of-Purchase
ContestsContests
SweepstakesSweepstakes
GameGame
Cash or other rewards for the use of a certain product
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Consumers submit their names for a drawing
Presents consumers with something every time they buy
Presents consumers with something every time they buy
Major Consumer Sales Promotion Tools
