Marketing Communications

Lecture 8

Marketing Communications

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

Steps in Developing Effective Communications

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

Promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Differential Advantage
High Product Quality High Product Quality Rapid Delivery Rapid Delivery Low Prices Low Prices Excellent Service Excellent Service Unique Features Unique Features

Features Features that Provide that Provide Differential Differential Advantage Advantage

Promotional Mix
Combination of promotion tools used to reach the target market and fulfill Advertising the organizations Public Relations overall goals. Sales Promotion Personal Selling Public Relations Word-of-Mouth
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Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

The Five Ms of Advertising

Advertising Media
Traditional Traditional Advertising Media Advertising Media Electronic Electronic Advertising Media Advertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

Advertising
Advantages

Disadvantages

Reach large number of people Low cost per contact Can be microtargeted

Total cost is high

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Public Relations
The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.
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Publicity
Public information about a company, good, or service appearing in the mass media as a news item, which is free to the company.

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Sales Promotion
Free samples Free samples Contests Contests Premiums Premiums Trade Shows Trade Shows

Popular Tools Popular Tools for for Consumer Sales Consumer Sales Promotion Promotion

Vacation Giveaways Vacation Giveaways Coupons Coupons

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Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.

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Personal Selling
Traditional Traditional Selling Selling Relationship Relationship Selling Selling

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Communications Objectives
Category Need

Brand Awareness

Brand Attitude

Purchase Intention

Designing the Communications

Message strategy Creative strategy Message source Personal communication channels Nonpersonal communication channels Integration

Creative Strategy

Informational and transformational appeals Positive and negative appeals Fear Guilt Shame Humor Love Pride Joy
CHP: 17&18-18

Select Communication Channels

Personal channels Non personal channels Integration of channels

Personal Communications Channels

Advocate channels Expert channels Social channels

Nonpersonal Communication Channels

Media Sales Promotion Events and Experiences Public Relations

Setting the Total Promotion Budget

One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion.

Based on What the Company Can Afford

Affordable

Based on a Certain Percentage Based on a Certain Percentage of Current or Forecasted Sales of Current or Forecasted Sales Based on the Competitors Based on the Competitors Promotion Budget Promotion Budget

Percentage of Sales Percentage of Sales

Objective-and-Task Objective-and-Task

Based on Determining Based on Determining Objectives & Tasks, Then Objectives & Tasks, Then Estimating Costs Estimating Costs

Competitive-Parity Competitive-Parity

CHP: 17&18-22

Characteristics of Advertising
Advertising Advertising
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Indirect and non-personal Indirect and non-personal Low Low Little Little Delayed Delayed One-way One-way Yes Yes Yes Yes Fast Fast Same message to all audiences Same message to all audiences
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Characteristics of Public Relations

Public Relations Public Relations
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Usually indirect, non-personal Usually indirect, non-personal Moderate to low Moderate to low Little Little Delayed Delayed One-way One-way No No No No Usually fast Usually fast Usually no direct control Usually no direct control
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Characteristics of Sales promotion

Sales Promotion Sales Promotion
Communication Mode Usually indirect and non-personal Communication Mode Usually indirect and non-personal Communication Control Moderate to low Communication Control Moderate to low Feedback Amount Little to moderate Feedback Amount Little to moderate Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Varies Varies Mostly one-way Mostly one-way Yes Yes Yes Yes Fast Fast Same message to varied target Same message to varied target
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Characteristics of Personal Selling

Personal Selling Personal Selling
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Direct and face-to-face Direct and face-to-face High High Much Much Immediate Immediate Two-way Two-way Yes Yes Yes Yes Slow Slow Tailored to prospect Tailored to prospect
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Goals and Tasks of Promotion

Informing Informing Reminding Reminding

Target Target Audience Audience

Persuading Persuading

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Product Life Cycle

Intro Stage Dollars Growth Stage Maturity Stage Decline Stage

Product Category Sales 0

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Time

Goals and Tasks of Promotion

Informing Informing
PLC Stages: Stages Introduction Early Growth

Reminding Reminding
PLC Stages: Maturity

Target Target Audience Audience

PLC Stages: Growth Maturity

Persuading Persuading
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Goals and Tasks of Promotion

Informative Objectives
Increase awareness Explain how product works Suggest new uses Build company image
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Goals and Tasks of Promotion

Persuasion Objectives
Encourage brand switching Change customers perception of product attributes Influence buying decision Persuade customers to call
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Goals and Tasks of Promotion

Reminder Objectives
Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness

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Factors Affecting the Choice of Promotional Mix

Nature of the Product Nature of the Product Stage in PLC Stage in PLC Target Market Factors Target Market Factors Type of Buying Decision Type of Buying Decision Promotion Funds Promotion Funds Push or Pull Strategy Push or Pull Strategy
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Product Life Cycle and the Promotional Mix

Sales ($)
Maturity Introduction Growth Decline

Time
-Light Advertising -Heavy Ads -PR for Awareness -Advertising and PR for brand Loyalty -Personal Selling for Distribution -Reminder Ads -Sales Promotion -Personal Selling -Ads & PR Decrease -Limited Sales Promotion -Personal Selling for 34 Distribution

-PreIntroduction Publicity -Sales Promotion for Trial

Target Market Characteristics

FOR:

Widely scattered market Informed buyers Repeat buyers

Advertising Advertising Sales Promotion Sales Promotion Less Personal Selling Less Personal Selling

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Type of Buying Decision

Routine Routine
Advertising Sales Promotion Advertising Public Relations

Type of Type of Buying Decision Buying Decision Affects Affects Promotional Promotional Mix Choice Mix Choice

Not Routine Not Routine or Complex or Complex

Complex Complex

Personal Selling

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Setting the Promotion Mix

Advertising Advertising Personal Personal Selling Selling Sales Sales Promotion Promotion Public Public Relations Relations Direct Direct Marketing Marketing
Reach Many Buyers, Repeat Message Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive Many Times, Impersonal, Expensive Personal Interaction, Relationship Personal Interaction, Relationship Building, Most Expensive Promo Tool Building, Most Expensive Promo Tool Wide Assortment of Tools, Rewards Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived Quick Response, Efforts Short-Lived Very Believable, Dramatize a Company Very Believable, Dramatize a Company or Product, Underutilized or Product, Underutilized Nonpublic, Immediate, Customized, Nonpublic, Immediate, Customized, Interactive Interactive

CHP: 17&18-37

Push and Pull Strategies

PUSH STRATEGY (Office Depot and Office Max)
Manufacturer Manufacturer promotes to promotes to wholesaler wholesaler Wholesaler Wholesaler promotes to promotes to retailer retailer Retailer Retailer promotes to promotes to consumer consumer Consumer Consumer buys from buys from retailer retailer

Orders to manufacturer

PULL STRATEGY (Coke and Pepsi)

Manufacturer Manufacturer promotes to promotes to consumer consumer Consumer Consumer demands demands product product from retailer from retailer Retailer Retailer demands demands product product from wholesaler from wholesaler Wholesaler Wholesaler demands demands product from product from manufacturer manufacturer
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Orders to manufacturer

Developing the Advertising Campaign

Message generation and evaluation Creative development and execution Legal and social issues

Print Ad Components
Picture

Headline Copy Signature