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Marketing Management, 12/e

A South Asian Perspective

17

Designing and Managing

Integrated Marketing Communications

Kotler

Koshy

Keller

Jha

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 The 'Oreo Togetherness Bus' is currently running across the country, providing a platform for parents

The 'Oreo Togetherness Bus' is currently running across the country, providing a platform for parents and children to catch fun family moments. Stationed at entertainment hubs of the city, the bus is loaded with fun games, photo opportunities, a cookie corner, and more. Anyone can hop into the bus with their kids to have fun, and try their hand at games. Radio, digital media and outdoor also continue to create awareness about the bus, giving to consumers regular updates on togetherness activities.

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Chapter Questions  What is the role of marketing communications?  How do marketing communications work?

Chapter Questions

What is the role of marketing communications?

How do marketing communications work?

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 The means by which firms attempt to inform, persuade, and remind consumers, directly or

Marketing Communications

Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or

The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or

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Table 17.1 Communication Platforms Advertising  Print and broadcast ads  Packaging inserts  Motion pictures

Table 17.1 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 Tie-ins

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Table 17.1 Communication Platforms Events/ Experiences  Sports  Entertainment  Festivals  Arts  Causes

Table 17.1 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 Identity media Company magazine

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Table 17.1 Communication Platforms Personal Selling  Sales presentations  Sales meetings  Incentive programs 

Table 17.1 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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Figure17.2 Elements in the Communications Process  Sender  Message  Receiver  Response  Feedback

Figure17.2 Elements in the Communications Process

Sender Message Receiver Response Feedback Noise

The Communications Process  Selective attention  Selective distortion  Selective retention 17-17

The Communications Process

Selective attention Selective distortion Selective retention

Figure 17.4 Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels

Figure 17.4 Steps in Developing Effective Communications

Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results

Manage IMC

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Identify the target Audience 17-19

Identify the target Audience

Identify the target Audience 17-19

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 The First Café Coffee Day logo was a bright red cube with a green stroke

The First Café Coffee Day logo was a bright red cube with a green stroke above ‘e’ in ‘Café Coffee Day’. The word ‘Café’ was made to appear dominant to indicate Café Coffee Day’s introduction of ‘Café culture’ in India. The font used for ‘Café’ is called SLURRY – the font looks as though the letters have coagulated out of liquid. The current logo includes a dialogue box which highlights the connection between 'coffee' and 'conversations.' This logo also reflects their current tag line, "A lot can happen over coffee.“

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 Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading

Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). ABCTCL grows coffee in its own estates of 10,000 acres. The land value of the plantations is US$250–300 million. It is the largest producer of Arabica beans in Asia. Apart from this, the group also sources coffee from 11,000 small growers. ABCTCL is one of India’s leading coffee exporters with clients across USA, Europe and Japan. The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka.

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 The company is known for being vertically integrated to cut costs: from owning the plantations,

The company is known for being vertically integrated to cut costs: from owning the plantations, growing the coffee, making the coffee machines to making the furniture for the outlets.

The machines cost them 1.2 lakh each, which they say is half the cost of an imported coffee machine. The maintenance cost of CCD's machines is also less than foreign machines.

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Cafe Coffee Day introduces 'Cafe Moments' pre paid cards Convenient and cashless transactions over coffee and

Cafe Coffee Day introduces 'Cafe Moments' pre paid cards Convenient and cashless transactions over coffee and conversations

'Cafe Moments' are prepaid cards designed to enable cashless transactions at all the CCD outlets. Customers can top-up their cards with denominations ranging from Rs. 100 to Rs. 5001 on an ongoing basis, enabling ease of use on the purchase of food, beverages and merchandise at their favourite CCD outlets. What's more, the cards are designed to be a great gift item that can be given out to friends and family members at any occasion. Corporates can also use it as an ideal fun gift for their employees.

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 CCD introduced ‘smart’ tables which allows consumers to order with the touch of a screen.

CCD introduced ‘smart’ tables which allows consumers to order with the touch of a screen.

Merchandise it sells- Bags. Men T-shirts, Coffee maker, Coffee Powder, Cards, Women t-shirt, gifts, cookies, mugs, etc.

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 CCD is letting the young, hyper-networked café goer decide where the brand goes and what

CCD is letting the young, hyper-networked café goer decide where the brand goes and what it does next. With some 2.7 million Facebook fans CCD has a ready audience to act as food taster, décor critic and pastry chef.

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 CCD has even signed up with Apollo and Fortis hospitals to give caregivers a place

CCD has even signed up with Apollo and Fortis hospitals to give caregivers a place for quiet coffee.

CCD outlets will also open on Highways.

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Image The set of beliefs, ideas, and impressions a person holds regarding an object. 17-36

Image

The set of beliefs, ideas, and impressions a person holds regarding an object.

Communications Objectives  Category need  Brand awareness  Brand attitude  Purchase intention 17-37

Communications Objectives

Category need Brand awareness Brand attitude Purchase intention

Designing the Communications  Message strategy  Creative strategy  Message source 17-38

Designing the Communications

Message strategy Creative strategy Message source

Creative Strategy-Way marketers translate their messages into a specific communication  Informational and transformational appeals 

Creative Strategy-Way marketers translate their messages into a specific communication

Informational and transformational appeals Positive and negative appeals

Fear Guilt Shame Humor Love Pride Joy

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Informational Appeal 17-40

Informational Appeal

Informational Appeal 17-40
Informational Appeal 17-41

Informational Appeal

Informational Appeal 17-41
Transformational Appeal 17-42

Transformational Appeal

Transformational Appeal 17-42

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Message Source Celebrity Characteristics  Expertise  Trustworthiness  Likeability 17-44

Message Source

Celebrity Characteristics

Expertise Trustworthiness Likeability

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Selecting the Communications Channels  Personal communication channels- Advocate channels, Expert Channels, Social channels.  Nonpersonal

Selecting the Communications Channels

Personal communication channels- Advocate channels, Expert Channels, Social channels.

Nonpersonal communication channels Integration

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Creative Strategy  Informational and transformational appeals  Positive and negative appeals  Fear  Guilt

Creative Strategy

Informational and transformational appeals Positive and negative appeals

Fear Guilt Shame Humor Love Pride Joy

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The Importance of Taglines Brand Theme  Our car is more spacious  It is prestigious

The Importance of Taglines

Brand Theme

Our car is more spacious

It is prestigious to own our brand of TV

Our butter is tasty and fun to eat

Our motorbike is fuel efficient

Ad Tagline

More Car per Car” (Tata Indica)

“Neighbor’s Envy; Owner’s Pride” (Onida TV)

“Utterly Butterly Delicious” (Amul Butter)

“Fill it, shut it, Forget it” (Hero Honda motorcycle)

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Message Source Celebrity Characteristics  Expertise  Trustworthiness  Likeability 17-49

Message Source

Celebrity Characteristics

Expertise Trustworthiness Likeability

Personal Communications Channels  Advocate Channels  Expert Channels  Social Channels 17-50

Personal Communications Channels

Advocate Channels Expert Channels Social Channels

Stimulating Personal Influence Channels  Identify influential individuals and devote extra attention to them  Create

Stimulating Personal Influence Channels

Identify influential individuals and devote extra attention to them

Create opinion leaders Use community influentials in testimonial advertising Develop advertising with high “conversation value” Develop WOM referral channels Establish an electronic forum Use viral marketing

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Nonpersonal Communication Channels  Media  Sales Promotion  Events and Experiences  Public Relations 17-52

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 17-53

Establish the Budget

Affordable Percentage-of-Sales Competitive Parity Objective-and-Task

Objective-and-Task Method  Establish the market share goal.  Determine the percentage that should be reached.

Objective-and-Task Method

Establish the market share goal. Determine the percentage that should be reached. Determine the percentage of aware prospects that should be persuaded to try the brand.

Determine the number of advertising impressions per 1 percent trial rate.

Determine the number of gross rating points that would have to be purchased.

Determine the necessary advertising budget on the basis of the average cost of buying a GRP.

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Characteristics of Marketing Communications Mix Advertising  Pervasiveness  Amplified expressiveness  Impersonality Sales Promotion 

Characteristics of Marketing Communications Mix

Advertising Pervasiveness

Amplified expressiveness

Impersonality

Sales Promotion Communication Incentive Invitation

Characteristics of Marketing Communications Mix Public Relations and Publicity  High credibility  Ability to catch

Characteristics of Marketing Communications Mix

Public Relations and Publicity High credibility

Ability to catch buyers off guard

Dramatization

Events and Experiences

Relevant Involving Implicit

Characteristics of Marketing Communications Mix Direct Marketing  Customized  Up-to-date  Interactive Personal Selling 

Characteristics of Marketing Communications Mix

Direct Marketing Customized Up-to-date Interactive

Personal Selling Personal interaction Cultivation Response

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Factors in Setting Marketing Communications Mix  Type of Product Market  Buyer Readiness to Make

Factors in Setting Marketing Communications Mix

Type of Product Market Buyer Readiness to Make a Purchase Stage in the Product Life Cycle

Coordinating Media to Build Brand Equity  Brand Signatures  Ad Retrieval Cues  Media Interactions

Coordinating Media to Build Brand Equity

Brand Signatures Ad Retrieval Cues Media Interactions