Kotler, Armstrong Principles of Marketing 4e

1. Kotler, ArmstrongPrinciples of Marketing 4e Chapter 12 IMC: Advertising and Public Relations

2. Chapter Objectives (1) • 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. Chapter Objectives (2) • 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. Chapter Objectives (3) • 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. Integrated Marketing Communication (IMC) • IMC entails co-ordinating the organisation’s promotional efforts using such major communication elements as: • Advertising. • Sales promotion. • Public relations. • Direct and online marketing. • Personal selling. • An organisation’s integrated marketing communication program consists of a specific blend of the above mentioned elements that will most effectively meet objectives such as to inform, persuade, and remind consumers as well as to reinforce their attitudes and perceptions.

6. Classifying IMC Media, Tools and Technologies • Mass Communication: • The use of mass media such as free to air television, radio, newspapers and magazines, as well as cinema and outdoor media. • Advertising: • Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

7. Table 12.1 A Classification of IMC Media

8. Figure 12.1 The Marketing Communication System

9. Steps in Developing Integrated Marketing Communication • Marketers need to understand how communication works. • Communication involves nine elements: • The two major parties are the sender and the receiver of the information. • Two major communications tools are the message and media. • Four major communication functions are encoding, decoding, response and feedback.

10. Elements in the Communications Process (1) • Sender. The party sending the message to another party. • Encoding. The process of putting thought into symbolic form. • Message. The set of symbols that the sender transmits-the actual advertisement. • Media. The communication channels 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-a consumer watches the ad and interprets the words and illustrations it contains.

11. Elements in the Communications Process (2) • Receiver. The party receiving the message sent by another party-the consumer who watches the ad. • Response. The reactions of the receiver after being exposed to the message-any of hundreds of possible responses. • Feedback. That part of the receiver's response communicated back to the sender- research shows that consumers like and remember the ad. • Noise. The unplanned static or distortion during the communication process that results in the receiver getting a different message from the one which the sender sent.

12. Figure 12.2 Elements in the Communication Process

13. Table 12.2 Steps in Developing IMC

14. Figure 12.3 Buyer-readiness States

15. Determine Response Sought • Awareness • The communicator must be able to gauge the target audience’s awareness of the product or organisation. • Knowledge • Communicators need to learn the target audience’s level of knowledge. • Liking • How much does the target audience like the product? • Preference • Does the target audience prefer the product to others? • Conviction • The communicator must build the target’s conviction about buying the product. • Purchase • The communicator leads the target to purchase.

16. Figure 12.4 Brand and Corporate Image Reputation Pyramid

17. Selecting a Message • Ideally the message should: • Get Attention • Hold Interest • Arouse Desires • Obtain Action (A framework known as the AIDA model)

18. Selecting a Message: Message Content • Rational Appeals • Relate to the audience’s self interest. They show how the product will produce the desires benefits. • Emotional Appeals • These stir up positive or negative emotions that can motivate purchase. • Moral Appeals • These are directed to the audience’s sense of what is right and proper. • Message Structure • Message Format

19. An advertising message should get attention, hold interest, arouse desire, and obtain action according to the model known as: • AIDA • ACTA • promotional • communication • ADIA

20. Selecting a Message • Message Structure-there are three message-structure issues: • Whether to draw a conclusion or leave it to the audience? • Whether to present a one-sided or two-sided argument? • Whether to present the strongest argument first or last? • Message Format • The communicator needs a strong format for the message. • In print ads, the communicator decides on the headline, copy, illustration and colour. • For radio, the communicator chooses words, sounds and voices. • For TV, all elements plus body language have to be planned.

21. Choosing Media • Personal Communication channels • Channels through which two or more people communicate directly with each other, including face-to-face, person-to-audience, over the telephone or through the mail. • Non-personal communication channels • Channels that carry messages without personal contact or feedback, including media, atmosphere and events.

22. Selecting the Message Source • The message’s impact on the audience is also affected by how the audience views the sender. • Messages delivered by highly credible sources are more persuasive e.g. professionals, actors and athletes. • Sources are made credible by expertise, trustworthiness, and likeableness.

23. Collecting Feedback • After sending the message, the communicator must gauge its effect on the target audience – do they remember the message? What points are recalled? How they felt about the message and their past and present attitudes to the product and company.

24. Figure 12.5 Current Consumer States for Two Brands

25. Setting the IMC Budget and Mix • Four common methods used to set the total budget for advertising: • affordable method • percentage-of-sales method • competitive-parity method • objective-and-task method

26. Of the following, the one that is not one of the four common methods used to set the advertising budget is: • affordable method • percentage-of-sales method • bottom-up approach • objective-and-task method • follow-the-market-leader method

27. Setting the IMC Mix • The marketing organisation must now divide the total marketing communication budget among the major marketing communication categories specific media, tools and technologies: • Media advertising • Public relations • Sales promotion • Direct and digital marketing • Personal selling

28. Considerations in Developing Integrated Marketing Communication • Companies consider many factors when developing their IMC program, including type of product and market, ‘push versus pull’ strategy, buyer-readiness state and product life cycle stage. • A push strategy involves pushing the product through marketing channels to final consumers. • A pull strategy directs marketing activities towards final consumers to induce them to buy the product.

29. Advertising • Advertising can be traced back to the very beginnings of recorded history. Early Greeks, Romans and Phoenicians used advertising to inform and sell. • Modern marketing is very different with $10 billion being spent each year on advertising in Australia alone.

30. The Main Decisions in Advertising • Advertising Objective • Budget Decisions • Message Decisions • Media Decisions

31. Setting Advertising Objectives • An advertising objective is 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 to inform, persuade or remind. Resulting in: • Informative advertising. • Persuasive advertising. • Comparison advertising. • Reminder advertising.

32. Figure 12.7 The Main Advertising Decisions

33. Figure 12.8 Possible Advertising Objectives

34. Setting the Advertising Budget • After determining its advertising objectives, the company can next set its advertising budget for each product. The role of advertising is to affect demand for a product. The company wants to spend the amount needed to achieve the sales goal. Specific factors to consider include: • Stage in the product life cycle: new products need larger budgets. • Market share: high market share brands usually need more advertising spending as a percentage of sales. • Competition and clutter: in a market with many competitors, more advertising is necessary. • Advertising frequency: many repetitions requires more budget. • Product differentiation: a brand that closely resembles others requires more advertising to differentiate.

35. Developing an Advertising Strategy • A large advertising budget does not guarantee a successful advertising campaign. Two advertisers can spend the same amount on advertising yet have very different results. • The first step in creating effective advertising messages is to decide what general message will be communicated to consumers –the message strategy.

36. Message Execution • Slice-of-life:this style shows one or more people using the product in a normal setting. • Lifestyle: this style shows how a product fits in with a lifestyle. • Fantasy: this style creates a fantasy around the product or its use. • Mood or image: this style builds a mood or image around the product, such as beauty, love or serenity. • Musical: this style shows one or more people or cartoon characters singing a song about the product.

37. Message Execution • Personality symbol:this style creates a character that represents the product. • Technical expertise:this style shows the company’s expertise in making the product. • Scientific evidence:this style presents survey or scientific evidence that the brand is better or better liked than one or more other brands. • Testimonial evidence:this style features a highly believable or likeable source endorsing the product.

38. Selecting Advertising Media • The advertiser next chooses advertising media to carry the message. • The four major steps in media selection are: • Deciding on reach, frequency and impact. • Selecting major media types. • Deciding on media timing. • Selecting specific media vehicles.

39. Table 12.7 Profiles of the Main Media Types

40. Advertising Evaluation • Measuring the communication effect (copy testing). • Three major methods of advertising pre-testing: • Direct rating • Portfolio tests • Laboratory tests • Two popular methods of post-testing advertisements: • Recall tests • Recognition tests

41. Measuring the Sales Effect • For example: ‘What sales are caused by an ad that increases brand awareness by 20% and brand preference by 10%?’ • The sales effects of advertising are often harder to measure than the communication effect as sales are affected by many factors besides advertising. • One way is to measure the sales effect of advertising is to compare past sales with past advertising expenditures, another is experimentation. • Measuring the results of advertising expenditure remains inexact.

42. International Advertising Decisions • The major decision is the degree to which global advertising should be adapted to the unique characteristics of various country markets. • Standardisation has benefits such as lower costs and greater coordination of global efforts but ignores cultural differences. • Most companies think globally and act locally. • Costs and legislative requirements in different countries need to be considered.

43. Public Relations Decisions • Another major mass-communication tool is public relations— it aims at building good relations with the company’s various publics using different tools: • Press relations • Product publicity • Public affairs • Lobbying • Investor relations • Development

44. Major Public Relations Tools • News • Speeches • Special events • Written materials • Audiovisual materials • Corporate identity materials • Community service activities

45. Socially Responsible Marketing Communication • Advertising • Companies must avoid false or deceptive advertising. Advertisers must not create ads that have the capacity to deceive. Sellers must avoid bait-and-switch advertising that attracts buyers under false pretences. • Personal selling • Companies must ensure their salespeople follow the rule of ‘fair competition’ when they sell the products directly.

46. The component of the promotion mix that is the most expensive per person reached is: • personal selling • advertising • sales promotion • public relations • publicity

47. Socially Responsible Marketing Communication • Direct and Digital Marketing: • Direct and digital marketers and their customers usually enjoy mutually rewarding relationships. • However, unfairness, deception and fraud are the dark side that may emerge. • The direct marketing industry has also faced growing concerns about invasion of privacy issues.