1. Managing Integrated Marketing Communications Kolter and Keller Ch
Managing Integrated Marketing Communications Kolter and Keller Ch. 17 and18

2. Kotler on Marketing
Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.

7. Marketing Communications Mix
Different tools
serve different
purposes...
…but boundaries
blurred
Advertising
Sales
promotion
Direct
marketing
Personal
selling
Publicity
and PR
Sponsorship

8. Marketing Communications Mix
non-personal communication by an identified sponsor,
transmitted to target audience via (mass) media
Advertising
creating, developing
direct relationships
with individual
customers
short-term
incentives
to encourage
sales
Sales
promotion
Direct
marketing
etc..
Personal
selling
Publicity
and PR
Sponsorship
Making“news”; building
goodwill, understanding
between organisations & publics
Informing, persuading
potential customers through
personal communication
supporting event, person,
etc, to enhance sponsor’s
awareness, image, etc.

9. Advertising Advertising has been used for centuries.
U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion.
Advertising is used by:
Business firms
Nonprofit organizations
Professionals
Social agencies
Government

10. Advertising
Advertising plays a pivotal role in world commerce and in the way we experience and live our lives. It is part of our language and our culture…It is both a complex communication process and a dynamic business process.
O’Guinn et al (2003) Advertising and Integrated Brand Promotion, Ohio: South-Western, p8

11. Selecting Advertising Media
How many exposures, E*, will produce
audience awareness A* depends on the exposures’:
Reach
Percentage of people exposed to ad
Frequency
Number of times a person is exposed to ad
Media Impact
The qualitative value of a message exposure through a given medium

12. Deciding on Media and Measuring Effectiveness
Total Number of Exposures (E)
E = R x F where R = reach, F = frequency
Known as Gross Rating Points (GRP)
Weighted Number of Exposures (WE)
WE = R x F x I
where R = reach, F = frequency, I = average impact

13. Figure 18.2: Relationship Among Trial, Awareness, and the Exposure Function

14. Sales promotion
A diverse collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade
(Kotler 2003:609)

15. Role of Sales Promotion
Encourages consumers to
try coupons, price reductions, samples, competitions etc
switch coupons, price reductions, free gifts, extra product etc
buy more extra product, price reductions, premiums, loyalty programs etc
buy more price reductions, free gifts, etc
evenly
Encourages trade to
stock
stock more
display/promote
discounts, allowances, bonuses, gifts, competitions, etc.

16. Table 18-5: Major Consumer-Promotion Tools
Samples: Offer of a free amount of a product or service delivered door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer.
Coupons: Certificates entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other products or attached to them, or inserted in magazines and newspaper ads.
Cash Refund Offers (rebates): Provide a price reduction after purchase rather than at the retail shop: consumer sends a specified “proof of purchase” to the manufacturer who “refunds” part of the purchase price by mail.
Price Packs (cents-off deals): Offers to consumers of savings off the regular price of a product, flagged on the label or package. A reduced-price pack is a single package sold at a reduced price (such as two for the price of one). A banded pack is two related products banded together (such as a toothbrush and toothpaste).
See text for complete table

17. A Magazine Ad with Coupon

18. Direct marketing
An interactive marketing system that uses one or more communications media to effect a measurable response and/or transaction at any location, forming a basis for creating and further developing an ongoing direct relationship between an organisation and its customers.
(adapted from DMA, Kotler 2003; Brassington & Pettit 2003)

19. Using Lists and Data to Identify Markets
Known
circumstances
Specific behaviour
Similarity to
existing customers

20. Direct Marketing Catalog Marketing Telemarketing and M-Commerce
Inbound telemarketing
Outbound telemarketing
Four types of telemarketing:
Telesales
Telecoverage
Teleprospecting
Customer service and technical support

21. Direct Marketing Kiosk Marketing E-Marketing
Other Media for Direct-Response Marketing
Direct-response advertising
At-home shopping channels
Videotext and interactive TV
Kiosk Marketing
E-Marketing
Give the customer a reason to respond
Personalize the content of your s
Offer something the customer could not get via direct mail
Make it easy for the customer to “unsubscribe”

22. Brassington & Pettit (2003) / BDS Sponsorship
…a business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage
Brassington & Pettit (2003) / BDS Sponsorship

23. Table 18.8: Major Tools in Marketing PR
Public Relations
Major Decisions in Marketing PR
Table 18.8: Major Tools in Marketing PR
Publications: Companies rely extensively on published materials to reach and influence their target markets. These include annual reports, brochures, articles, company newsletters and magazines, and audiovisual materials.
Events: Companies can draw attention to new products or other company activities by arranging special events like news conferences, seminars, outings, trade shows, exhibits, contests and competitions, and anniversaries that will reach the target publics.
Sponsorships: Companies can promote their brands and corporate name by sponsoring sport and cultural events and highly regarded causes.
News: One of the major tasks of PR professionals is to find or create favorable news about the company, its products, and its people, and get the media to accept press releases and attend press conferences.
See text for complete table

24. Common Communication Platforms
(Table 17.1)
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
Print and broadcast ads
Contests, games, sweepstakes, lotteries
Press kits
Sales presentation
Catalogs
Packaging-outer
Premiums and gifts
Speeches
Sales meetings
Mailings
Packaging inserts
Sampling
Seminars
Incentive programs
Telemarketing
Motion pictures
Fairs and trade shows
Annual reports
Samples
Electronic shopping

25. A Model of Communication (Figure 17.2)
field of
experience
field of
experience
Message
Source
encodes
decodes
Receiver
feedback
noise
Source: adapted from W. Schramm (1971) “How communication works”, in Schramm & Roberts (eds), The process and elements of mass communication

26. The Communication Process
Target audience may not receive the intended message for any of three reasons (p. 500):
Selective attention
Selective distortion
Selective retention

27. Figure 17.4: Steps in Developing Effective Communication

28. Developing Effective Communications
Identify the Target Audience
Image analysis
Familiarity scale
Favorability scale
Never Heard of
Heard of Only
Know a Little Bit
Know a Fair Amount
Know Very Well
Very Unfavorable
Somewhat Unfavorable
Indifferent
Somewhat Favorable
Very favorable

29. Figure 17.5: Familiarity-Favorability Analysis

30. Example: Images of Three Hospitals (Semantic Differential Scales)

31. Developing Effective Communications
Determine the Communication Objective
Cognitive
Affective
Behavioral
Response-hierarchy models

32. Developing Creative Strategy

33. Figure 17.3: Response Hierarchy Models

34. Developing Effective Communications
Hierarchy-of effects model
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

35. Developing Effective Communications
Design the Message
AIDA model
Gain attention
Hold interest
Arouse desire
Elicit action
Message Content
Rational appeals
Emotional appeals
Moral appeals

36. Developing Effective Communications
Message Structure
Message Format
Message Source
Factors underlying source credibility
Expertise
Trustworthiness
Principle of congruity

37. Developing Effective Communications
Select the Communication Channels
Personal Communication Channels
Advocate channels
Expert channels
Social channels

38. Developing Effective Communications
Establish the Total Marketing Communications budget
Affordable Method
Percentage-of-Sales Method
Competitive-Parity Method

39. Deciding on the Marketing Communications Mix
The Promotional tools
Advertising
General Qualities:
Public presentation
Pervasiveness
Amplified expressiveness
Impersonality
Sales Promotion
Benefits:
Communication
Incentive
Invitation

40. Deciding on the Marketing Communications Mix
Public Relations and Publicity
Distinctive qualities:
High credibility
Ability to catch buyers off guard
Dramatization
Personal Selling
Personal confrontation
Cultivation
Response

41. Deciding on the Marketing Communications Mix
Direct Marketing
Distinctive qualities:
Nonpublic
Customized
Up-to-date
Interactive

42. Media Planning and Analysis
Different types of medias used:
Newspapers
Magazines
Radio and television
Satellite and cable
Direct Mail
The internet
Other (billboards, cinemas, trucks, ships, etc)

43. Table 18.1: Profiles of Media Types
Deciding on Media and Measuring Effectiveness
Choosing Among Major Media Types
Table 18.1: Profiles of Media Types
Medium
Advantages
Limitations
Newspapers
Flexibility; timeliness; good local market coverage; broad acceptance; high believability
Short life; poor reproduction quality; small “passalong” audience
Television
Combines sight, sound, and motion; appealing to the senses; high attention; high reach
High absolute cost; high clutter; fleeting exposure; less audience selectivity
Direct mail
Audience selectivity; flexibility; no ad competition within the same medium; personalization
Relatively high cost; “junk mail” image
See text for complete table

44. Product Placement

45. Cost-Effectiveness of Different Promotional Tools

46. Factors influencing choice of mix
organisational resources
and objectives
push / pull strategy
preferences
cost, availability of
options
nature of target market
and product

47. Integrated marketing communications
…the whole is greater than the sum of the parts
...so maximise the management of brand information
using every point of contact with consumers

48. Discussion Question
While traditional communication methods make measurement of results difficult, Internet communications offer different, more immediate measures. How can analysis of web site visitors’ behavior be used to evaluate the effectiveness of a company’s marketing communications strategy?

49. Discussion Question
Many companies offer free samples as part of a promotional campaign. This approach extends beyond the grocery store or retail outlet into large organizations like universities. Can you identify any products or services that are provided to students or faculty at your school as part of a promotional campaign?