bus169 kotler chapter 12
DESCRIPTION
TRANSCRIPT
- 1. Advertising and Public Relations
2. Chapter Objectives
- Describe integrated marketing communication (IMC) and classify IMC media, tools and technologies.
- Outline the steps in developing IMC, including identifying a target audience and determining the response sought.
- Describe the communication process: selecting a message, choosing the media, selecting a message source and collecting feedback.
- Define the ways of setting an IMC budget: affordable, percentage-of-sales, competitive parity and objective-and-task methods.
3. Contd
- Explain the nature of each IMC tool advertising, public relations, direct and digital marketing, sales promotion and personal selling- and the factors involved when setting the IMC program: type of product and market, push versus pull strategies, buyer-readiness states and product life-cycle stage.
- Describe the nature of media advertising, including the main decisions involved: advertising budgeting, setting strategy, creative execution, media selection and evaluation in terms of communication and sales outcomes.
4. Contd
- Define public relations and outline the more common forms of this IMC tool.
- Explain the need for socially responsible marketing communication and describe how this is achieved.
5. Marketing Promotion
- Communicationbymarketers thatinforms, reminds, or persuadespotentialbuyersoftheproduct, sothattheycanbepositively influencedtowardstheproduct.
6. Integrated Marketing Communication (IMC)
- IMC is the coordination of a firms promotional efforts using major communication elements such as:
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- Advertising .
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- Sales promotion .
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- Public relations .
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- Direct and digital marketing .
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- Personal selling .
7. Contd
- A firms IMC program will consist of a specificblend ofthecommunication elements thatwillmosteffectively meettheir objectives toinform ,persuade ,andremind consumers of thefirms product; as wellastoreinforcetheconsumers attitudesandperceptions.
8. Contd
- Advertising
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- Impersonal, one-way mass communication paid for by the firm to raise awareness of the firm or its product
- Sales Promotion
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- Specific additional marketing activities to generate a significantshort-termincrease in sales volume
- Public Relations
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- Additionalpublicityfrom credible sources to help create a positive image within the general community
- Direct and Digital marketing
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- Inexpensive means of targeting large numbers of consumers
- Personal Selling
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- Direct approach aimed at convincing consumers to buy the particular product
9. Marketing Communication System 10. DevelopingIMC
- Communication has nine elements - Fig 12.2.
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- There are:
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- Two major parties; thesenderand thereceiverof the information.
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- Two major communications tools; themessageand themediaused.
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- Four major communication functions;encoding ,decoding ,responseandfeedback .
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- The final element isnoise(message interference).
11. Elements in the Communication Process
- Sender . The party sending the message.
- Encoding . The process of putting thoughts and ideas into symbolic form ready for transmission.
- Message . The set of symbols that are sent to the intended target-the actual advertisement.
- Media . The communication channel through which the message moves from sender to receiver.
- Decoding . The process by which the receiver assigns meaning to the symbols encoded by the sender - consumer watches the advertisement andinterpretsthe words and illustrations it contains.
12. Contd
- Receiver . The party that receives the message - the consumer who sees the advertisement.
- Response . Reactions of the receiver after being exposed to the message - many possible responses.
- Feedback . That part of the receiver's response which is communicated back to the sender-research can indicate whether or not the advertisement was liked.
- Noise . The unplanned distortion of the message during the communication process that results in the receiver getting a message that is different to the one the sender had intended.
13. Elements in the Communication Process 14. Steps in Developing IMC 15. Decisions in developing IMC
- IdentifytheTargetAudience
- DetermineCommunication Objectives
- DesignaMessage
- SelectaMedia
- SelectaMessage Source
- CollectFeedback
16. 1. Identifying the Audience
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- Must start with a specific audience in mind
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- The audience may be potential buyers or current users; those who make the buying decision; or those who influence the decision
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- The audience may be individuals; groups; special publics; or the general public
17. 2. Determining Objectives
- Whatresponseisthemarketertryingto achievethroughthemessage?
- Marketer needs to know what the target audiences
- state of readiness is, in regard to the product.
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- Awareness -may not even recognise product
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- Knowledge -aware, but knows very little
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- Liking -knows enough to like or dislike
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- Preference -likes product, but prefers others
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- Conviction -prefers, but not committed to buy
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- Purchase -needs more incentive to buy
18. 3. Designing the Message
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- RationalAppeal-highlightthebenefits
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- EmotionalAppeal-positive / negative
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- MoralAppeal-highlightwhatis right
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- MessageStructure-whatapproach?
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- - howtopresentthe argument
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- MessageFormat-howtoconvey the
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- message.
19. Contd
- Ideallythefirmsmessageshould :
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- GetA ttention
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- HoldI nterest
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- ArouseD esire
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- ObtainA ction
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- ( A framework known as theAIDAmodel)
20. Designing Message-Content
- Rational Appeals
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- These relate to the audiences self interest, and indicate tothe consumer that the product will produce desired benefits.
- Emotional Appeals
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- These attempt to generate positive or negative emotions in consumers that can motivate them to make a purchase.
- Moral Appeals
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- These are directed to the audiences sense of what is socially and morally right.
21. Message-Structure/ Format
- Message Structure-three structure issues:
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- Whether to draw a conclusion, or leave it to the audience
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- Whether to present a one-sided or two-sided argument
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- Whether to present the strongest argument first, or last
- Message Format
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- The communicator needs a strong format for the message.
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- In print advertisements, the communicator decides on the headline; copy; illustration; and colour.
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- For radio, chooses words; sounds; and voices.
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- For TV, all elements, plus body language, are considered.
22.
- Personal Communication channels
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- Channels through which two or more people communicate directly with each other, including face-to-face; person-to-audience; telephone; or through the mail.
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- Extra important for high risk purchases
- Non-personal communication channels
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- Channels that carry messages without personal contact or direct feedback, including media; events; and particular environments.
4. SelectingMedia 23. 5. Selecting Message Source
- The impact of the message on the audience is also affected by how the audience views the sender of the message.
- Messages delivered by a highly credible source are more persuasive, e.g. entertainers; athletes; industry professionals.
- Sources are made credible by those who are well liked, trusted; or viewed as an expert.
24. 6. Collecting Feedback
- After sending the message, the communicator must assess what effect the message had on the target audience
- This might involve asking target audience if it:
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- remembers the message; how many times it was seen; what specific points are recalled; how they felt about the message; past and present attitude to the product or company.
25. Setting the IMC Budget
- Common methods used to set total IMC budget:
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- Affordable method
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- only what the firm can afford to spend .
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- Percentage-of-sales method (cause or result?)
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- as a % of current or projected sales .
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- Competitive-parity method
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- to match what competitors spend .
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- Objective-and-task method
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- estimate the cost of the tasks to meet set objectives .
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- the most logical approach, but the most difficult to use .
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- Each method has advantages/ disadvantages
26. Setting the IMC Mix
- The marketer needs to divide the total IMC budget among the major communication categories, using specific media, tools, and technologies to achieve marketing objectives:
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- Media advertising
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- Public relations
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- Sales promotion
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- Direct and digital marketing
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- Personal selling
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- Different companies within the same industry can
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- differ greatly in how they design their IMC mix.
27. Considerations in Developing IMC
- Companies need to consider many factors when developing their IMC program, including
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- type of product and market;
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- push versus pull strategy;
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- buyer-readiness state;
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- product life-cycle stage.
28. Type of Product/ Market
- Businessvs.Consumerproduct
- Costoftheproduct
- Levelofriskinvolved
- Major differences in B2C and B2B markets
- Consumer(B2C)
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- more emphasis on advertising and sales promo
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- much less on personal selling
- Industrial(B2B)
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- greater emphasis on personal selling
29. Push/ PullStrategies
- PUSH strategy involves pushing the product through marketing channels (intermediaries), whoarethenexpectedtogenerateinterestfromthefinal consumers/ end-userstoencouragepurchaseoftheproduct
- PULL strategy aims the marketing activities directly at final consumers who are then expected to demand that intermediaries make the product available to enable consumers to buy.
30. Buyer Readiness
- Thestateofreadinesshelpsdeterminewhich communicationapproachwillbemosteffective
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- AwarenessandKnowledge stages
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- UseofAdvertisingandPR
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- Liking; Preference; andConviction stages
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- UseofPersonalsellingandAdvertising
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- ReadytoPurchasestage
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- UseofDirectmarketing; SalescallsandSalespromotion
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31. Which stage in the PLC
- Introduction; Growth; Maturity; Decline
- Each stage of the Cycle will display different characteristics and, therefore, each may require a different approach
- Some IMC elements are more / less suited to particular PLC stages
32. Main Decisions in Advertising
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- Advertising Objectives
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- specific tasks for specific audience
- Budget Decisions
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- will depend on item/ market/ competitors
- Message Decisions
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- what needs to be communicated, and how
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- Media Decisions
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- Media type/ message frequency
33. Main DecisionsFig 12.7 34. Setting Advertising Objectives
- Theobjectiveis a specific communication task to be accomplished with a specific target audience, during a specific period of time.
- Advertising objectives can be classified by purpose, whether their aim is toinform; persuade;orremind.Will resultin:
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- Informative advertising.
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- Persuasive advertising.
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- Comparison advertising.
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- Reminder advertising.
35. Possible objectivesFig 12.8 36. Setting Advertising Budget
- After determining its advertising objectives, the company can set itsadvertising budgetfor each product .
- The role of advertising is to positively affect the level of demand for the product .
- A company wants to spendonlythat amount of money needed to achieve the sales goal .
37. Contd
- Specific factors to consider include :
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- Stage in the product life cycle: new products need larger budgets.
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- Market share: high market-share brands usually need more advertising spending as a percentage of sales.
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- Competition and clutter: in a market with many competitors, more advertising is necessary.
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- Advertising frequency: many repetitions requires more budget.
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- Product differentiation: a brand that closely resembles other brands will require more advertising to help differentiate it from the competition.
38. DevelopingAdvertising Strategy
- A large advertising budget does not guarantee a successful advertising campaign. Two advertisers can spend the same amount on advertising, yet produce very different results.
- The first step in creating effective advertising messages is to decide what general message will be communicated to consumers.
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- thisisthemessagestrategy
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39. Message Execution
- Slice-of-life : shows the product being used in a typical situation.
- Lifestyle : shows how product fits a particular lifestyle.
- Fantasy : creates a fantasy (suggested situation) around the product or its use.
- Mood or image : builds a mood or image around the product, such as beauty; love; or serenity.
- Musical : shows people or cartoon characters singing a song about the product.
40. Contd
- Personality symbol : creates a well known character that represents the product.
- Technical expertise : shows the companys expertise in making the product.
- Scientific evidence : presents survey or scientific evidence to indicate that the brand is better, or better liked, than other brands.
- Testimonial evidence : features a highly believable or likeable source endorsing the product.
41. Selecting Advertising Media
- The advertiser chooses advertising media to carry the message.
- The major steps in media selection are:
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- Deciding on reach, frequency and impact.
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- Selecting major media types.
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- Deciding on media timing.
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- Selecting specific media vehicles.
42. Profiles of Main Media Types 43. Advertising Evaluation
- Measuring communication effect(copy testing).
- Three major methods of advertising pre-testing
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- Direct rating ads rated by panel of consumers
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- Portfolio testslevel of consumer recall
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- Laboratory testsphysiological testing (attentiongetting)
- Two popular methods of advertising post-testing
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- Recall tests how well the ad was noticed
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- Recognition tests how ad compares to competitors
44. Measuring Sales Effect
- The effect of advertising on sales is often much harder to measure than the communication effect, because sales are influenced by many other factors.
- What volume of sales might be generated by an ad that increases brand awareness by 20%, and brand preference by 10%?
- One way to measure the effect advertising has on sales is to compare past sales with past advertising expenditures. Another is to conduct experiments.
- However, measuring the results of advertising expenditure is difficult and inexact.
45. International Advertising Decisions
- The major decision is the extent to which global advertising should be adapted to the unique characteristics of markets in various countries.
- Standardisation delivers benefits, such as lower costs and greater coordination of global efforts, but ignores important elements like cultural differences.
- Most companies try to think globally and act locally.
- Costs and legislative requirements in different countries will always need to be considered.
46. Public Relations Decisions
- Another major mass-communication tool is public relations, which aims at building good relations with the companys various publics, using different tools:
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- Press relations
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- Product publicity
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- Public affairs
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- Lobbying
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- Investor relations
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- Development
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- The objective is to build a good corporate image
47. Major Public Relations Tools
- News
- Public speeches
- Special events public openings
- Written materials
- Audiovisual materials
- Corporate identity materials
- Community service activities
48. Socially Responsible Marketing Communication
- Advertising
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- Companies must avoidfalse/ deceptive advertising.
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- Advertisers must not create advertisements that have the capacity to deceive the audience.
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- Sellers must avoidbait-and-switch advertisingthat attracts buyers under false pretences.
- Personal selling
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- Companies must ensure their salespeople follow the rule of fair competition when selling products directly to the public.
49. Contd
- Direct and Digital Marketing:
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- Direct and digital marketers and their customers usually enjoy mutually rewarding relationships.
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- However,unfairness, deception and fraudfrom aggressive markets can sometimes occur.
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- Direct marketing can also have a major impact on individual privacy .