Marketing Communication

Week 6

Lecture Outline

• Meaning and Purpose of Promotion

• Communication Process & Barriers to Communication

• Marketing Communication Models & Types of Communication Systems

• Selection of Promotional Mix

• Advertising & Sales Promotion: Its Meaning and Objectives

• Marketing Communication Mix & Selection of Advertising Media

• Personal Selling, Public Relations and Publicity

Learning Outcomes

• To understand the role of marketing communication

• To learn the major steps in developing effective marketing communication

• To learn various elements of marketing communication mix and how it

works

• To understand how selection of promotion mix is done

• To understand what is integrated marketing communication program

Communication

Communication is a process of transferring information from one entity to

another.

Communication is commonly defined as "the imparting or interchange of

thoughts, opinions, or information by speech, writing, or signs".

Although there is such a thing as one-way communication, communication can be

perceived better as a two-way process in which there is an exchange and

progression of thoughts, feelings or ideas (energy) towards a mutually accepted

goal or direction (information)

Communication & Marketing Communication

Communication requires that all parties have an area of communicative

commonality. There are auditory means, such as speech, song, and tone of voice,

and there are nonverbal means, such as body language, sign language,

paralanguage, touch, eye contact, and writing.

Marketing Communication: Are the means by which the firms attempt to inform,

persuade and remind consumers – directly or indirectly – about the products and

brands they intend to sell.

It is a voice of the company and its brands and are means by which it can establish a

dialogue and build relationships with consumers.

Scope for Marketing Communication

• Companies use it as a tool to assist the consumers how and why product is

used.

• It provides the information where and when the products and its substitutes are

available

• The consumers can come to know about the manufacturers, brands and

company standing in the market.

• Marketing communication helps in creating & contributing to brand equity.

• It helps the company in driving sales.

• It also affect the shareholders’ value.

Role of Marketing Communication

The Changing Marketing Communication Environment:

Technology has changed the communication process. The rapid diffusion

through broadband internet connection, multipurpose cell phones, portable music

and video players have forced marketer to rethink about practices they are

adopting. Mass Media effectiveness is completely eroded

Marketing Communications, Brand Equity and Sales:

Brand Equity:

Brand Awareness

Brand Image

Brand Responses

Brand Relationships

Elements in the Communications Process

Macro Model of Communication Process

The above figure represents a macro model of communication process with nine

elements.

• SENDER & RECEIVER are major parties in the communication process.

• MESSAGE & MEDIA are two major tools

• ENCODING, DECODING, RESPONSE & FEEDBACK are major

communication functions

• NOISE in the environment is last element that may interfere in the

communication process.

• The model emphasizes on key factors for effective communication.

Field of Experience

Receiver’s

field

Sender’s

field

The more the sender’s field of experience overlaps that of the receiver, the more

effective the message is likely to be.

The Communications Process

Selective Attention

Selective Distortion

Selective Retention

A consumer cant attend to all stimuli,

instead screen out most. Marketers must work

hard to attract consumer’s notice. A consumer will notice stimuli that is related to a

current need they anticipate and stimuli whose deviations are large in relation to

normal stimuli.

A tendency in a consumer to interpret

information in a way that fits our preconceptions.

So as to be consistent with prior brand, product belief and expectations.

We retain information that supports our attitude and

belief, but not to what we are exposed to.

Repetition is done so that message is not

overlooked.

Response Hierarchy Models

Steps in Developing Effective

Communications

Identify Target Audience

Determine Objectives

Design Communications

Select Channels

Establish Budget

Decide on Media Mix

Measure Results/ Manage IMC

Potential buyer’s, Current User,

Decider’s, Influencer’s, Individuals,

Groups, General or particular public.

Usage rate & Loyalty can also be used

Communications Objectives

Category Need

Brand Awareness

Brand Attitude

Purchase Intention

To remove or satisfy a perceived

discrepancy between a current motivational

state & desired emotional state.

Ability to identify (recognize & recall) the

brand within a category. It provides a

foundation for brand equity.

Evaluating a brand with respect to its

perceived ability to meet a currently

relevant need

Self Instructions to purchase the brand or

to take purchase related action

Designing the Communications

• Message Strategy ( What to say): Appeals, themes or idea that will help in the

brand positioning and help establish Points of Parity & Points of Difference.

Some may be related to product or service performance directly (quality,

economy or value of the brand) whereas others relate to extrinsic

consideration(contemporary, popular or traditional).

Buyers expects one of four types of reward from a product: rational, sensory,

social or ego satisfaction.

Buyers might visualize these rewards from results of use experience, product

in use experience or incidental to use experience.

Crossing the four types of rewards with three types of experience generates 12

types of messages.

Creative Strategy (How to say)

» Involves expression and content of the message. It is said that if a

communication is ineffective, it may mean the wrong message was

used, or the right one was just poorly used. It is either

• Informational and transformational appeals

• Positive and negative appeals

– Fear Guilt Shame

– Love Joy

– Pride Humor

Message Source (Who should say)

Celebrity Characteristics

– Expertise – Specialized

Knowledge he/she possess

– Trustworthiness- Objective &

honest source is perceived to be.

– Likeability- Attractiveness

Issues Facing Global Adaptations

• Is the product restricted in some countries?

• Are there restrictions on advertising the product to a specific target

market?

• Can comparative ads be used?

• Can the same advertising be used in all country markets?

• Can we use country of origin advantage?

• Is Globalization or Glocalization the main issue?

Select Communication Channels

Personal channels: Is a face to face, person to audience, over the telephone or

through email. It is mainly used for two reasons:

1. When products are expensive, risky or purchased infrequently.

2. When product suggest something about user’s status or taste.

Non-personal channels: it is directed to more than one person and include

media, sales promotions, events and experiences and public relations.

Integration of channels: Personal communication is more effective than mass

media but mass media might be the major means of stimulating personal

communication. Ideas flow from radio, television and print to opinion leaders

and then to less media involved population group.

Establish Budget

The most important task is to determine how much to spend on promotion and

marketing communication: There are four common methods:

Affordable

Percentage-of-Sales

Competitive Parity

Objective-and-Task

Decide on Media(Communication) Mix

There are eight major modes of communication and company must allocate the

marketing communication budget over them.

Advertising, Sales promotion, Public Relations & Publicity, Events &

Experiences, Direct Marketing, Interactive Marketing, WOM Marketing & Sales

Force.

Few Examples:

Amway concentrates on personal selling through network marketing.

L’Oreal spends heavily on advertising.

Videocon, LG & Onida spend on advertising.

Eureka Forbes focuses on door - to – Selling through field sales personnel.

Companies often substitute various methods during the course of

communication

Characteristics of The Marketing

Communications Mix

Advertising

» Pervasiveness

» Amplified

expressiveness

» Impersonality

Sales Promotion

• Communication

• Incentive

• Invitation

Public Relations and

Publicity

» High credibility

» Ability to catch buyers

off guard

» Dramatization

Events and Experiences

• Relevant

• Involving

• Implicit

Direct Marketing

» Customized

» Up-to-date

» Interactive

Word-of-Mouth

Marketing

• Credible

• Personal

• Timely

Personal Selling

• Personal interaction

• Cultivation

• Response

Measuring Communication Results

Developing and Managing an Advertising Program

Advertising is any paid form of non-personal presentation and promotion of ideas,

goods, or services by an identified sponsor.

• It has been derived from Latin word “Advertere” which means to “turn” the

attention. They may be listeners, readers, viewers or the onlookers towards the

product or service or an idea.

Attributes of Advertising

• Mass Communication process

• Informative & Persuasive

• Competitive Act

• It is paid for

• Has an identified Sponsor

• Not a part of product Non Personal Presentation

The Five M’s of Advertising

Advertising Objectives

Informative

advertising

Reminder

advertising

Reinforcement

advertising

Persuasive

advertising

Factors to Consider in Setting an

Advertising Budget

Stage in the Product Life Cycle

Market Share and Consumer Base

Competition and Clutter

Advertising Frequency

Product Substitutability

Developing the Advertising Campaign

• It is the message strategy or positioning of an ad – what an ad attempts to

convey about the brand.

• Its creative strategy – how the ad expresses the brand claims.

Advertisers go through three steps:

Message Generation & Evaluation

•They are looking for “big ideas” that connects with consumers rationally as well

as emotionally.

• It distinguishes the brand from competitors.

• Is broad and flexible enough to translate to different media , markets and time

periods.

• Fresh insights are important to have new appeals.

Creative Development and Execution

Advantages

• Reaches broad spectrum of

consumers

• Low cost per exposure

• Ability to demonstrate product

use

• Ability to portray image and

brand personality

Disadvantages

• Brief

• Clutter

• High cost of production

• High cost of placement

• Lack of attention by viewers

Television

The ad’s impact is not on what it says but more importantly how it says. Execution

is decisive.

Print Ads

Advantages

• Detailed product information

• Ability to communicate user

imagery

• Flexibility

• Ability to segment

Disadvantages

• Passive medium

• Clutter

• Unable to demonstrate product

use

Print Ad Components

Headline

Picture

Signature Copy

Print Ad Evaluation Criteria

• Is the message clear at a glance?

• Is the benefit in the headline?

• Does the illustration support the headline?

• Does the first line of the copy support or explain the headline and

illustration?

• Is the ad easy to read and follow?

• Is the product easily identified?

• Is the brand or sponsor clearly identified?

Communicating to the Rural Audience

• Large variations in language and culture

• Campaigns have to be tailor made for product and region

• Product demonstrations in haats, mandis, and melas (fairs) are useful

• TV and print media do not reach all villages and all customers

• Wall paintings and signboards very popular

• Folk theatre, magic shows and puppet shows are also used as a media vehicle

Media Selection

• Reach: Number of persons exposed to a particular media schedule at least once

• Frequency: Number of times within specified time limit he/she is exposed to it.

• Impact: Qualitative value through a given medium.

• Exposure: Is the reach times of the average frequency.

Choosing Among Major Media Types

• Target Audience and Media Habits

• Product Characteristics: Demonstration, Visualization, Explanation, Color

etc.

• Message Characteristics: Timeliness and information content.

• Cost: Cost per thousand exposures

Major Media Types

• Newspapers

• Television

• Direct mail

• Radio

• Magazines

• Outdoor

• Yellow Pages

• Newsletters

• Brochures

• Telephone

• Internet

Place Advertising

• Billboards

• Public spaces

• Product placement

• Point-of-purchase

Measures of Audience Size( Selecting Media

Vehicle)

• Circulation : Number of physical units carrying the advertising.

• Audience : The number of people exposed to the vehicle.

• Effective audience : The number of people with target audience characteristics

exposed to the vehicle

• Effective ad-exposed audience: The number of people with target audience

characteristics who actually saw the ad

The media planner must search for the most cost effective vehicles within each

chosen media type. It depends upon the estimates of audience size, composition

and media cost

Classification of Advertising Timing Patterns

Factors Affecting Timing Patterns

The most effective pattern depends on the communications objectives in

relationship to the nature of product, target customers, distribution channels and

other marketing factors. Timing pattern should consider three factors:

Buyer turnover : Rate at which new buyers enters the market

Purchase frequency: Number of times during the period that the average buyer

buys the product.

Forgetting rate: Rate at which the buyer forgets the brand.

Media Schedule Patterns: Is required in launching a new product

• Continuity: Exposures appear evenly

through out a given period.

• Concentration: Calls for spending all budget

in a single period.

• Flighting: Advertising for a period, followed

by no advertising, then a second period of

advertising activity.

• Pulsing: Continuous advertising at low

weight levels reinforced periodically by

waves of heavier activity

Evaluating Advertising Effectiveness

Many advertisers try to measure the communication effect of an ad – that is

potential effect on awareness, knowledge, or preference. It also includes measuring

the ad effectiveness on sales.

Communication-Effect Research: It is also called copy testing determining

whether ads are communicating effectively or not. It may be pre testing or post

testing by an advertiser. Three methods of pre testing are:

Consumer feedback method

Portfolio tests

Laboratory tests to measure physiological reactions- heartbeat, blood pressure,

pupil dilation, perspiration to an ad. Measures attention getting powers

Measuring Sales Impact of Advertising

(Sales Effect Research)

What is Sales Promotion?

Sales promotions consist of a collection of incentive tools, mostly short term,

designed to stimulate quicker or greater purchase of particular products or

services by consumers or the trade.

Whereas advertising offers a reason to buy, sales promotion offers an incentive to

buy.

It includes tools for consumer promotion as well as trade promotion.

• Free sample stimulates trial, whereas free advise cements long lasting

relationships.

• To attract new triers, reward loyal customers, increase repurchase, attract brand

switchers, Stockpiling and extra purchase

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

• Trade shows

• Specialty advertising

Using Sales Promotions

Establish Objectives

Select Tools

Develop Program

Pretest

Implement and Control

Evaluate Results

Why Sponsor Events?

• To identify with a particular target market or life style

• To increase brand awareness

• To create or reinforce consumer perceptions of key brand image associations

• To enhance corporate image

• To create experiences and evoke feelings

• To express commitment to community

• To entertain key clients or reward employees

• To permit merchandising or promotional opportunities

Using Sponsored Events

Establish Objectives

Choose Events

Design Programs

Measure Effectiveness

Ideal Events

Audience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event lends itself to ancillary activities

Event enhances brand image of sponsor

Customer Experience Management: Experience Providers

• Communications

• Identity

• Product presence

• Co-branding

• Environments

• Internet

• Electronic media

• People

Steps in the CEM Framework

Analyze the customer’s experiential world

Build the experiential platform

Design the brand experience

Structure the customer interface

Engage in continuous innovation

Why to Engage in Public Relations

• Launching new products

• Repositioning a mature product

• Building interest in a product category

• Influencing specific target groups

• Defending products that have encountered public problems

• Building the corporate image in a way that reflects favorable on

products

Public Relations Functions

• Press relations

• Product publicity

• Corporate communications

• Lobbying

• Counseling

Major Tools in Marketing PR

• Publications

• Events

• Sponsorships

• News

• Speeches

• Public Service Activities

• Identity Media