A FRAMEWORK for MARKETING MANAGEMENT

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A FRAMEWORK for MARKETING MANAGEMENT
Chapter 15 Designing and Managing Integrated
Marketing Communications
Kotler Keller
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Chapter Questions

• What is the role of marketing communications?
• What are the major steps in developing effective
  communications?
• What is the communications mix, and how should it
  be set?
• What is an integrated marketing communications
  program?

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Marketing Communications
Marketing communications are how firms attempt to
inform, persuade, and remind consumers, directly
or indirectly, about the products and brands they
sell
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Table 15.1 Communication Platforms

• Advertising
• Print/broadcast ads
• Packaging inserts
• Motion pictures
• Brochures/booklets
• Posters
• Billboards
• POP displays
• Logos

• Sales Promotion
• Contests, games, sweepstakes
• Premiums
• Sampling
• Trade shows/exhibits
• Coupons
• Rebates
• Entertainment
• Continuity programs

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Table 15.1 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

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Table 15.1 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

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Steps in Developing Effective Communications

• Identify target audience
• Determine objectives
• Design communications
• Select channels
• Establish budget
• Decide on media mix
• Manage IMC

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Communications Objectives

• Category need
• Brand awareness
• Brand attitude
• Purchase intention

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Design the Communications

• Creative strategy
• Informational appeal
• Transformational appeal
• Message strategy
• Message source

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Select Communication Channels

• Personal communication channels
• Nonpersonal communication channels
• Integration of communication channels

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Stimulating Personal Communications Channels

• Identify influentials
• Create opinion leaders
• Use influentials in communications
• Develop ads with high conversation value
• Use viral marketing

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Nonpersonal Communication Channels

• Media
• Sales promotion
• Events and experiences
• Public relations

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Establish the Budget

• Affordable
• Percentage-of-sales
• Competitive parity
• Objective-and-task

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Characteristics of Communications

• Advertising
• Pervasiveness
• Amplified expressiveness
• Impersonality

• Sales Promotion
• Communication
• Incentive
• Invitation

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Characteristics of Communications

• Public Relations and Publicity
• High credibility
• Ability to catch buyers off-guard
• Dramatization

• Events and Experiences
• Relevant
• Involving
• Implicit

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Characteristics of Communications

• Direct Marketing
• Customized
• Up-to-date
• Interactive

• Personal Selling
• Personal interaction
• Cultivation
• Response

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Factors in Setting Communications Mix

• Type of product market
• Consumer readiness to make a purchase
• Stage in the product life cycle
• Market rank

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A FRAMEWORK for MARKETING MANAGEMENT
Chapter 16 Managing Mass Communications
Kotler Keller
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Chapter Questions

• What steps are involved in developing an
  advertising program?
• How should sales promotion decisions be made?
• What are the guidelines for effective
  brand-building events and experiences?
• How can companies exploit the potential of public
  relations?

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Advertising
Any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an
identified sponsor
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The Five Ms of Advertising

• Mission
• Money
• Message
• Media
• Measurement

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Advertising Objectives

• Informative advertising
• Persuasive advertising
• Reminder advertising
• Reinforcement advertising

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Deciding on the Advertising Budget

• Product life cycle stage
• Market share and consumer base
• Competition and clutter
• Advertising frequency
• Product substitutability

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Developing the Advertising Campaign

• Message generation and evaluation
• Creative development and execution
• Social responsibility review

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Deciding on Media

• Step 1 Reach, frequency, and impact
• Step 2 Media types
• Step 3 Specific media vehicles
• Step 4 Media timing
• Step 5 Geographical media allocation

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Major Media Types

• Newspapers
• Television
• Direct mail
• Radio
• Magazines
• Outdoor

• Yellow Pages
• Newsletters
• Brochures
• Telephone
• Internet

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Newspapers

• Advantages
• Flexibility
• Timeliness
• Good local market coverage
• Broad acceptance
• High believability

• Disadvantages
• Short life
• Poor reproduction quality
• Small pass-along audience

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Television

• Advantages
• Combines sight, sound, and motion
• Appealing to senses
• High attention
• High reach

• Disadvantages
• High absolute cost
• High clutter
• Fleeting exposure
• Less audience selectivity

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Direct Mail

• Advantages
• Audience selectivity
• Flexibility
• No ad competition within medium
• Personalization

• Disadvantages
• Relatively high cost
• Junk mail image

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Radio

• Advantages
• Mass use
• High geographic and demographic selectivity
• Low cost

• Disadvantages
• Audio presentation only
• Lower attention than television
• Nonstandardized rate structures
• Fleeting exposure

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Magazines

• Advantages
• High geographic and demographic selectivity
• Credibility
• Prestige
• High-quality production
• Long life
• Good pass-along readership

• Disadvantages
• Long lead time
• Some waste circulation
• No guarantee of position

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Outdoor

• Advantages
• Flexibility
• High repeat exposure
• Low cost
• Low competition

• Disadvantages
• Limited audience selectivity
• Creative limitations
• Fleeting exposure

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Yellow Pages

• Advantages
• Excellent local coverage
• High believability
• Wide reach
• Low cost

• Disadvantages
• High competition
• Long lead time
• Creative limitations

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Newsletters

• Advantages
• Very high selectivity
• Full control
• Interactive opportunities
• Relatively low cost

• Disadvantages
• Costs could run away

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Brochures

• Advantages
• Flexibility
• Full control
• Dramatization of messages

• Disadvantages
• Overproduction could lead to runaway costs

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Telephone

• Advantages
• Many users
• Opportunity to give a personal touch

• Disadvantages
• Relative high cost unless volunteers are used

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Internet

• Advantages
• High selectivity
• Interactive possibilities
• Relatively low cost

• Disadvantages
• Relatively new media with a low number of users
  in some countries

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Variables Affecting Choice of Media
Target Markets Media Habits
Product Characteristics
Message Characteristics
Cost
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Place Advertising

• Billboards
• Public spaces
• Product placement
• Point-of-purchase

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Measures of Audience Size

• Circulation
• Audience
• Effective audience
• Effective ad-exposed audience

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Deciding on Media Timing and Allocation
Macroscheduling Problems
Microscheduling Problems
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Media Schedule Patterns

• Continuity
• Concentration
• Flighting
• Pulsing

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Evaluating Advertising Effectiveness

• Communication Effect Research
• Consumer feedback
• Portfolio tests
• Laboratory tests

• Sales-Effect Research
• Share of expenditures
• Share of voice
• Share of heart
• Share of market

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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
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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

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Using Sales Promotions

• Establish objectives
• Select sales promotion tools
• Develop sales promotion program
• Pretest, implement, and control
• Evaluate results

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Considerations for Sales Promotion Programs

• Size of incentive
• Conditions for participation
• Duration
• Distribution vehicle
• Timing
• Total sales-promotion budget

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Why Sponsor Events?

• identify with a particular target market or
  lifestyle
• increase brand awareness
• create or reinforce consumer perceptions of key
  brand image associations
• enhance corporate image
• create experiences and evoke feelings
• express commitment to community
• entertain key clients or reward employees
• permit merchandising or promotional opportunities

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Major Event Decisions

• Choose event opportunities
• Design programs
• Create event
• Measure activities

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Public Relations Functions

• Press relations
• Product publicity
• Corporate communications
• Lobbying
• Counseling

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Marketing Public Relations Functions

• Assist in product launches
• Assist in repositioning mature products
• Build interest in a product category
• Influence specific target groups
• Defend products
• Build corporate image

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Major Tools in Marketing PR

• Publications
• Events
• Sponsorships
• News
• Speeches
• Public service activities
• Identity media

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Steps in Marketing PR

• Establish objectives
• Choose messages and vehicles
• Implement and evaluate

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A FRAMEWORK for MARKETING MANAGEMENT
Chapter 17 Managing Personal Communications
Kotler Keller
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Chapter Questions

• How can companies use integrated direct marketing
  for competitive advantage?
• How can companies do effective interactive
  marketing?
• What decisions do companies face in designing and
  managing a sales force?
• How can salespeople improve their selling,
  negotiating, and relationship marketing skills?

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Marketing Communications

• Direct marketing
• Interactive marketing
• Personal selling

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Direct Marketing
Direct marketing is the use of consumer-direct
channels to reach and deliver goods and
services to customers without marketing middlemen
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Direct Marketing Channels

• Face-to-face
• Online
• Kiosk
• Interactive

• Telemarketing
• Catalog marketing
• Direct mail
• Email marketing

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Direct Marketing

• Steps in Developing a Direct-Mail Campaign
• Step 1 Set objectives
• Step 2 Identify target markets
• Step 3 Define the offer elements
• Step 4 Test the elements
• Step 5 Measure results (and lifetime value)

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Offer Elements

• Product
• Offer
• Medium
• Distribution
• Creative strategy

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Telemarketing

• Use of telephone operators and call centers to
  attract prospects, sell to existing customers,
  and provide service by taking orders and
  answering questions
• Telesales
• Telecoverage
• Teleprospecting
• Customer service and technical support

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Elements of Effective Website Design

• Context
• Content
• Community
• Customization

• Connection
• Communication
• Commerce

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Website Performance

• Physical Attractiveness
• Clean pages
• Readable fonts
• Good color and sound

• Ease of Use
• Fast downloads
• Intuitive first page
• Easy navigation

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E-Marketing Guidelines

• Give the customer a reason to respond
• Personalize the e-mail content
• Offer something the customer could not get via
  direct mail
• Make it easy to unsubscribe

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Types of Sales Representatives

• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor

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Designing a Sales Force

• Sales force objectives
• Sales force strategy
• Sales force structure
• Sales force size
• Sales force compensation

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Designing the Sales Force

• Objectives
• Sales volume and profitability
• Customer satisfaction
• Strategy
• Account manager
• Type of sales force
• Direct (company) or contractual

• Steps in Process
• Objectives and strategy
• Structure
• Sales force size
• Compensation

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Designing the Sales Force

• Types of sales force structures
• Territorial
• Product
• Market
• Complex
• Key accounts

• Steps in Process
• Objectives and strategy
• Structure
• Sales force size
• Compensation

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Designing the Sales Force

• Workload approach
• Group customers by volume
• Establish call frequencies
• Calculate total yearly sales call workload
• Calculate average number of calls/year
• Calculate number of sales representatives

• Steps in Process
• Objectives and strategy
• Structure
• Sales force size
• Compensation

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Designing the Sales Force

• Four components of compensation
• Fixed amount
• Variable amount
• Expense allowances
• Benefits
• Compensation plans
• Straight salary
• Straight commission
• Combination

• Steps in Process
• Objectives and strategy
• Structure
• Sales force size
• Compensation

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Managing a Sales Force

• Recruiting and selecting
• Training
• Supervising
• Motivating
• Evaluating

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Managing the Sales Force

• Recruiting begins with the development of
  selection criteria
• Customer-desired traits
• Traits common to successful sales representatives
• Selection criteria are publicized
• Various selection procedures are used to evaluate
  candidates

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Motivating Sales Representatives

• Most Valued Rewards
• Pay
• Promotion
• Personal growth
• Sense of accomplishment

• Least Valued Rewards
• Liking
• Respect
• Security
• Recognition

Which of the rewards are intrinsic rewards?
Extrinsic?
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Evaluating the Sales Force

• The amount of time needed and the training method
  used vary with the level of task complexity
• Successful firms have procedures to aid in
  evaluating the sales force
• Norms for customer calls
• Norms for prospect calls
• Using sales time efficiently

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Call Reports

• Average number of sales calls per rep per day
• Average sales call time per contact
• Average revenue per sales call
• Average cost per sales call
• Entertainment cost per sales call

• Percentage of orders per hundred sales calls
• Number of new customers per period
• Number of lost customers per period
• Sales force cost as a percentage of total sales

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Major Steps in Effective Selling

• Prospecting and qualifying
• Preapproach
• Approach
• Presentation and demonstration
• Overcoming objections
• Closing
• Follow-up and maintenance