Marketing Management Arab World Edition Kotler Keller Hassan

Marketing Management Arab World Edition Kotler, Keller, Hassan, Baalbaki and Shamma Chapter 17 Designing and Managing Integrated Marketing Communications

Chapter Questions 1. What is the role of marketing communications? 2. How do marketing communications work? 3. What are the major steps in developing effective communications? 4. What is the communications mix and how should it be set? 5. What is an integrated marketing communications program? Copyright © 2012 Pearson Education 17 -2

Chapter Question 1: What is the role of marketing communications? The Role of Marketing Communications What are marketing communications? Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. Copyright © 2012 Pearson Education 17 -3

Marketing Communications, Brand Equity, and Sales Chapter Question 1: What is the role of marketing communications? Marketing communications mix The marketing communications mix consists of eight major modes of communication: 1. Advertising 5. Direct marketing 2. Sales promotion 6. Interactive marketing 3. Events and experiences 7. Word-of-mouth marketing 4. Public relations and publicity 8. Personal selling Copyright © 2012 Pearson Education 17 -4

Chapter Question 1: What is the role of marketing communications? Advertising Sales Promotion • Print and broadcast ads • Contests, games • Packaging inserts • Premiums • Motion pictures • Sampling • Brochures and booklets • Trade shows, exhibits • Posters • Coupons • Billboards • Rebates • POP displays • Entertainment • Logos • Continuity programs • Videotapes • Tie-ins Copyright © 2012 Pearson Education 17 -5

Chapter Question 1: What is the role of marketing communications? Events/ Experiences Public Relations • Sports • Press kits • Entertainment • Speeches • Festivals • Seminars • Art • Annual reports • Causes • Charitable donations • Factory tours • Publications • Company museums • Community relations • Street activities • Lobbying • Identity media • Company magazine Copyright © 2012 Pearson Education 17 -6 (cont. )

Chapter Question 1: What is the role of marketing communications? (cont. ) Personal Selling Direct Marketing Word-of-Mouth • Sales presentations • Catalogs • Person-to-person • Sales meetings • Mailings • Chat rooms • Incentive programs • Telemarketing • Blogs • Samples • Electronic shopping • Fairs and trade shows • TV shopping • Fax mail • E-mail • Voice mail • Blogs • Websites Copyright © 2012 Pearson Education 17 -7

Marketing Communications, Brand Equity, and Sales Chapter Question 1: What is the role of marketing communications? Marketing communications mix As Figure 17. 1 shows, marketing communications activities contribute to brand equity and drives sales, by: • Creating awareness of the brand; • Linking the right associations to the brand image in consumers’ memory; • Drawing positive brand judgments or feelings; and/or • Facilitating a stronger consumer–brand connection. Copyright © 2012 Pearson Education 17 -8

Marketing Communications, Brand Equity, and Sales Chapter Question 1: What is the role of marketing communications? Fig. 17. 1: Integrating Marketing Communications to Build Brand Equity Copyright © 2012 Pearson Education 17 -9

The Communications Process Models Chapter Question 2: How do marketing communications work? Macromodel of the communications process: Fig. 17. 2: Elements in the Communications Process ﺇﻋﻼﻧﺎﺕ ﺧﻄﺄ Copyright © 2012 Pearson Education 17 -10

The Communications Process Models Chapter Question 2: How do marketing communications work? For a successful marketing communications campaign, marketers must try to ensure that each step occurs. For example, the ideal ad campaign would ensure that: • The right consumer is exposed to the message at the right time and place • The ad causes consumer to pay attention • The ad reflects consumer’s level of understanding and behaviors with product • The ad correctly positions brand in terms of points-of-difference and points-of-parity • The ad motivates consumer to consider purchase of the brand • The ad creates strong brand associations Copyright © 2012 Pearson Education 17 -11

Chapter Question 3: What are the major steps in developing effective communications? Developing Effective Communications Figure 17. 4 shows the eight steps in developing effective communications. 1. Identify target audience 2. Determine objectives 3. Design communications 4. Select channels 5. Establish budget 6. Decide on media mix 7. Measure results 8. Manage IMC Copyright © 2012 Pearson Education Fig. 17. 4: Steps in Developing Effective Communications 17 -12

1 - Identify the Target Audience Chapter Question 3: What are the major steps in developing effective communications? • The process must start with a clear target audience in mind. • The target audience is a critical influence on the communicator’s decisions about what to say, how, when, where, and to whom. • Often useful to profile the target audience in terms of: o Usage New/current o Loyalty loyal/competitors/switcher o Brand knowledge Aware/not aware Copyright © 2012 Pearson Education 17 -13

2. Determine the Communications Objectives Chapter Question 3: What are the major steps in developing effective communications? Four possible communications objectives are: 1. Category need – establishing a product or service as necessary to fill a gap. (electrical cars) 2. Brand awareness – increasing the ability to identify the brand. (Tesla) 3. Brand attitude – raising the brand’s perceived ability to meet a need. 4. Purchase intention – promoting buying action. Copyright © 2012 Pearson Education 17 -14

3. Design the Communications Chapter Question 3: What are the major steps in developing effective communications? Designing the communications to get the desired response will require solving three problems: 1. What to say (message strategy) rational – sensory – social – ego satisfaction 2. How to say it (creative strategy) informational (logic reason) – transformational (emotional – motives) 3. Who should say it (message source) Copyright © 2012 Pearson Education 17 -15

3. Design the Communications Chapter Question 3: What are the major steps in developing effective communications? Creative strategies are the way marketers translate their messages into a specific communication. Two broad categories: • Informational appeals (logic reason) • Transformational appeals (emotional – motives) Michelin’s use of the Michelin Man brand character in its advertising helps to break through the clutter and reinforce the brand’s key safety and trust messages. Copyright © 2012 Pearson Education 17 -16

3. Design the Communications Chapter Question 3: What are the major steps in developing effective communications? Message source: Messages can be delivered in many different ways. • spokesperson • celebrity When a celebrity is used, the individual must have certain characteristics: • Expertise • Trustworthiness • Likeability Copyright © 2012 Pearson Education 17 -17

4. Select the Communications Channels Chapter Question 3: What are the major steps in developing effective communications? Communications channels include: • Personal communications channels two or more persons communicating directly face-to-face, person-toaudience, over the telephone, or through e-mail • Non-personal communications channels media, sales promotions, events and experiences, and public relations • Integration of communications channels mass media may be the most effective option Copyright © 2012 Pearson Education 17 -18

5. Establishing the Total Marketing Communications Budget Chapter Question 3: What are the major steps in developing effective communications? How do companies decide on the promotion budget? Four common methods: • The affordable method (Not investment – hard to plan) • The percentage-of-sales method (or sales price – cars) Vary as the company afford- relationship with cost/sales • The competitive-parity method (similar to competitors) • The objective-and-task method (clear association with cost) Copyright © 2012 Pearson Education 17 -19

6. Deciding on the Marketing Communications Mix Chapter Question 4: What is the communications mix and how should it be set? Characteristics of the Marketing Communications Mix Each communication tool has its own characteristics and costs. Advertising Sales Promotion • Spread • Communication • Amplified expression • Incentive • Impersonality • Invitation Copyright © 2012 Pearson Education 17 -20

Characteristics of the Marketing Communications Mix Public Relations and Publicity • High credibility • Ability to catch buyers off guard • Dramatization Copyright © 2012 Pearson Education Chapter Question 4: What is the communications mix and how should it be set? Events and Experiences • Relevant • Involving • Implicit 17 -21

Characteristics of the Marketing Communications Mix Direct Marketing Chapter Question 4: What is the communications mix and how should it be set? Personal Selling • Customized • Personal interaction • Up-to-date • Cultivation • Interactive • Response Word-of-Mouth Marketing • Credible • Personal • Timely Copyright © 2012 Pearson Education 17 -22

Factors in Setting the Marketing Communications Mix Chapter Question 4: What is the communications mix and how should it be set? Companies must consider several factors in developing their communications mix: • Type of product market • Buyer readiness stage • Product life cycle stage Fig. 17. 5: Cost-Effectiveness of Three Different Communications Tools at Different Buyer. Readiness Stages Copyright © 2012 Pearson Education 17 -23

7. Measuring Communications Results Chapter Question 4: What is the communications mix and how should it be set? Figure 17. 6 provides an example of good feedback measurement : Fig. 17. 6: Current Consumer States for Two Brands Copyright © 2012 Pearson Education 17 -24

8. Managing the Integrated Marketing Communications Process Chapter Question 5: What is an integrated marketing communications program? Integrated marketing communications (IMC) is a concept of marketing communications planning that recognizes the added value of a comprehensive plan. Mixed communication tools Copyright © 2012 Pearson Education 17 -25

Credits • • Slide 1 Alamy Images: Arkadius. Kozera Slide 16 Art Directors and TRIP Photo Library: Helene Rogers