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Synopsis

Marketing Communications

1. Introduction to Marketing Communications

Learning Objectives

Marketing communications is a management process through which an organisation engages with its various audiences. Through understanding an audience’s communi-cations environment, organisations seek to develop and present messages for their identified stakeholder groups, before evaluating and acting upon the responses. By conveying messages that are of significant value, they encourage audiences to offer attitudinal and behavioural responses.

The aims of this introductory module therefore are to explore some of the con-cepts associated with marketing communications and to develop an appreciation of the key characteristics of the main tools in the communications mix.

The objectives of this module are to:

examine the concept of exchange in the marketing context;

assess the role of promotion in the context of the marketing mix;

consider the range and potential impact of marketing communications;

identify the key characteristics of each major tool in the communications mix;

examine the effectiveness of each communication tool;

establish a need for marketing communications; and

compare marketing communications in the consumer and business markets.

Sections

1.1 Introduction

1.2 The Concept of Marketing as an Exchange

1.3 The Role of Communication in Exchange Transactions

1.4 Marketing Communications and the Process of Exchange

1.5 Defining Marketing Communications

1.6 The Role of Marketing Communications

1.7 The Marketing Communications Mix

1.8 Effectiveness of the Promotional Tools

1.9 Selection Criteria

1.10 Management of the Promotional Tools

1.11 Context and Marketing Communications

1.12 Communication Differences

Synopsis / Marketing Communications

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Learning Summary

The concept of exchange transactions is seen by many commentators as underpin-ning the marketing concept. Of the different types of exchange, market and relational are the two that can be observed most often in industrial societies.

Marketing communications has various roles to play in the context of both these types of exchange, but – as will be seen later in this text – there is a strong move-ment away from the reliance on market exchanges towards the longer-term perspective that relational exchanges enjoy, and towards the development of partnerships. This approach is referred to as ‘relationship marketing’, and it is here that changes in the use and deployment of marketing communications can be best observed.

Marketing communications is an audience-centred activity and uses six elements of the promotional mix: advertising, sales promotion, public relations, direct marketing, personal selling and digital marketing. Each has its strengths and weaknesses, and these tools are now beginning to be used in different ways to develop relationships with customers, whether they be consumers or organisational buyers.

Marketing communications have an important role to play in communicating and promoting products and services not only to consumers but also to the business-to-business sector and to other organisations representing differing stakeholders. The development of partnerships between brands and consumers, and between organi-sations within distribution channels or networks, is an important perspective of marketing communications. Communications in this context will be an important part of this text.

Finally, marketing communications can be seen as a series of episodes that occur within a particular set of circumstances or contexts. Marketing managers need to be able to identify the principal characteristics of the context they are faced with and contribute to the context with a suitable promotional programme.

2. Communication Theory

Learning Objectives

This module introduces communication theory and sets it in the context of market-ing communications.


understand the basic model of the communication process;

appreciate how the components of the model contribute to successful commu-nications;

provide an analysis of the linkages between components;

examine the impact of the media on the communication process;

examine the impact of personal influences on the communication process;

understand the impact of digital technology and media on the communication process;


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introduce more recent explanations of communication theory, including net-works;

explain how communication theory underpins our understanding of marketing communications.

Sections

2.1 An Introduction to the Communication Process

2.2 Linear Model of Communication

2.3 Influences of the Communication Process

2.4 Word-of-Mouth Communications

2.5 Process of Adoption

2.6 Process of Diffusion

2.7 Interactional Approaches to Communications

2.8 Relational or Contextual Approaches to Communications

2.9 Network Approaches to Communications

Learning Summary

An appreciation of the way in which communication works is important to under-standing and developing planned communications. The classic approach to communication views the process as linear, similar to the actions of a hypodermic syringe injecting its audience with information. Here the sender–message–channel–receiver approach is prevalent. Subsequent models have attempted to reflect the two-way perspective, and to account for the interpersonal components of commu-nications, which in themselves stress mutuality and shared perceptions (Windahl et al., 1992).

The linear approach is not rejected, as there are circumstances where a one-way transmission of information is required, such as public health warnings or the announcement that a product specification has been altered to meet new legislative requirements. However, with the advent of digital media and the context of devel-oping relationship-based marketing (see Module 1), the network approach to communications is both justified and compatible. Individuals are seen to engage in patterned flows of communication that partly reflect the diversity of their interests.

This course recognises the importance of both linear and interactional approach-es to communication, but uses the concept of communication networks, a contextual perspective, to explore marketing communications.

3. Understanding How Consumers Process Information

Learning Objectives

Understanding the way in which customers perceive their world, the way they learn, develop attitudes and respond to marketing communications stimuli is fundamental if effective communications are to be developed. The aim of this module is to provide an introduction to the main elements of buyer information processing, in


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order that readers may develop an appreciation of the way marketing communica-tions can be built on an understanding of buyer behaviour.


introduce cognitive theory as an important element in the development of planned communications;

examine personality as a substantial factor in the determination of successful communications;

explore perception in the context of marketing communications;

understand the main differences between conditioning and cognitive learning processes;

appraise the role of attitudes and the different ways in which attitudes are thought to be developed;

appreciate the importance of understanding an individual’s intention to act in a particular way and its part in the decision process;

understand how marketing communications can be used to influence these elements of buyer behaviour and in particular to change attitudes; and

provide a brief overview of the other environmental influences that affect the manner in which individuals process information.

Sections

3.1 Introduction

3.2 Cognitive Theory

3.3 Personality

3.4 Perception

3.5 Marketing and Perception

3.6 Learning

3.7 Attitudes

3.8 Changing Attitudes with Marketing Communications

3.9 How Digital Technology has Affected Communication Theory

Learning Summary

This module has reviewed some of the recent and current thinking about how individuals process information. Cognitive theory provides a valuable insight into the manner in which buyers use externally and internally generated stimuli to solve problems. Personality, perception, learning, attitudes and aspects pertinent to the wider environment and each purchase situation have been considered as major elements of the problem-solving approach adopted by both consumers and organi-sational buyers.

Marketing communications planners need to be aware of these elements and to understand how they operate in the target audience. Messages can be created to match the cognitive needs of the intended audience and change, for example, perception or attitudes, in such a way that communication with the target audience is likely to be more successful.


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4. Customer Decision Making

Learning Objectives

Customers make product purchase-related decisions in different ways. Understand-ing the ways in which buyers make decisions and the factors that impact upon the decision process can influence the effectiveness of marketing communications. In particular, it can affect message structure, content and scheduling.

The aim of this module is to consider some of the different processes that con-sumers and organisational buyers use to make purchase decisions.


present a general process for purchase decision making;

examine the sequence and methods used by consumers to make decisions;

explore the components of perceived risk;

introduce and explain involvement theory and relate it to planned communica-tion activities;

consider the different types of individual who contribute to purchase decisions made by organisations;

understand the stages that organisations use to make purchase decisions;

appreciate the differences in approach and content of marketing communica-tions between consumer and organisational buying.

Sections

4.1 Introduction

4.2 A General Buying Decision-Making Process

4.3 Types of Consumer Decision Making

4.4 Perceived Risk

4.5 Involvement Theory

4.6 Hedonic Consumption

4.7 Consumer Decision-Making Processes

4.8 Organisational Buying Decision Processes

4.9 Unifying Models of Buyer Decision Making

Learning Summary

The processes that buyers use to make purchase decisions differ according to a variety of factors. These vary with the nature of the purchase situation: that is, whether the purchase is oriented to consumer or organisational buying, and the depth of experience held by the buyer. Other relevant factors are the levels of perceived risk, involvement, knowledge and the number of others who are contrib-uting to the final outcome.

Some of the decision processes that have been presented in this module appear to be linear and based upon logic and reason. This is not the case, however, as decisions are often the result of experience, knowledge and an interpretative view of


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the environment. Therefore the decision processes used by buyers are not always sequential, nor do they reflect a rational approach to resolving problems and needs.

Marketing communications needs to be based on an understanding of the deci-sion processes used by buyers in the targeted market. This means that the content and style of messages and the form of delivery by the tools of the promotional mix (Module 11–Module 16) can be dovetailed closely into the needs of the receivers. This also demonstrates how the realm of understanding is an important issue in effective communications.

5. How Marketing Communications Might Work

Learning Objectives

The Red Bull minicase describes aspects of the marketing communications used by the drinks company to elevate itself. A range of channels and tools are used within a common theme to reinforce brand messages. What may not be clear is just how these elements work together and how marketing communications actually might work. Attempts to understand how the marketing communications might work must be accompanied by an appreciation of the complexity and contradictions inherent in this particular commercial activity. Understanding how marketing communications might work, with its rich mosaic of perceptions, emotions, attitudes, information and patterns of behaviour, presents the professional with a formidable challenge.

This module, therefore, considers some of the theoretical concepts associated with ideas about how marketing communications might work, and considers the complexities associated with understanding how clients can best use marketing communications.


explore some of the fundamental ideas about the role of marketing communica-tions;

examine the strengths and weaknesses of the sequential models of how market-ing communications works;

explain cognitive processing as a means of understanding how people use marketing communications messages;

discuss the contribution that the elaboration likelihood model can make to comprehending how motivation and attitude change can be brought together;

consider the concept of significant value; and

present a composite model of how marketing communications might work.

Sections

5.1 Introduction

5.2 Context – Strategy and Marketing Communications

5.3 The Emergence of Marketing Communications

5.4 The Role of Marketing Communications


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5.5 How Does Marketing Communications Work?

5.6 Cognitive Processing

5.7 Elaboration Likelihood Model

5.8 Interaction, Dialogue and Relationships

5.9 Developing Significant Value

5.10 Towards a Model of Marketing Communications

Learning Summary

Over time a variety of models have been developed, each of which has attempted to explain how advertising works. AIDA and sequential models, such as the hierarchy of effects approach, were for a long time the received wisdom in this area. Now they are regarded as quaint and out of date for a number of hard-hitting reasons.

The developing interest in integrated marketing communications, and in particu-lar the complementary influence of brand values with calls to action and behaviour change, has stimulated a move away from an advertising-only perspective. Devel-opments concerning cognitive processing, feelings, likeability and elaboration enable a broader perspective on marketing communications as a whole to be achieved. At the same time many writers have become sceptical of advertising’s power to persuade consumers to change their purchasing habits, USPs have given way to ESPs, and industry and commerce have shifted the focus of their marketing spend from above- to below-the-line activities, as if to emphasise the need to affect behavioural change. Therefore understanding the way marketing communications works, rather than just the way advertising works, is now more important.

We now understand that marketing communications messages tend to be more successful when they are of particular significance to each individual. When signifi-cant they are of value, hence the need to generate messages that are of significant value to the target audience. To be significantly valuable, messages should present a new product or a product that is substantially different from the other products in the category, interesting and stimulating, and personally meaningful.

Reality suggests that the majority of marketing communications messages cannot claim to be of significant value to most people. Those messages that are of value are normally dissected so that only parts of the message are extracted and stored for future use. Messages or extracts of messages can be recalled or released from long-term memory when triggered by an association, such as new incoming messages or experiences with a particular brand. Marketing communications messages and brands should be regarded as complementary elements that need to work together if the marketing communications and their respective brands are to be successful.

6. Big Data and its Impact on Marketing Communications

Learning Objectives

Today big data is often touted as the panacea for pretty much any marketing problem and, as a result, is the subject du jour in the media and at conferences, commanding hundreds of thousands of column inches and thousands of dedicated


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events across the globe. This, coupled with the fact that the topic itself is vast with numerous concepts and techniques associated with it, means that this module will merely scratch the surface of this complex discipline. Consequently, the objectives of this module are to:

explain the difference between big and small data;

explore some of the fundamental ideas about the role of big data within market-ing communications; and

understand the major data capture, storage, analytics and visualisation techniques associated with big data in a marketing communications context.

That said, having a wider understanding of big data is recommended – for exam-ple, Davenport and Patil (2012) declared ‘data scientist’ to be the sexiest job of the century. Furthermore, as reported by Fisher (2013), Gartner (an information technology research company), predicts that big-data-related jobs will be the fastest-growing category over the next 10 years, but that only a third of the roles will be successfully filled because of an analytics skills gap, meaning that big data specialists will have licence to pretty much set their own salaries.

Sections

6.1 Introduction

6.2 The Difference between Big and Small Data

6.3 Datafication and the Big Data Paradox

6.4 Data Capture

6.5 Data Storage

6.6 Big Data Hygiene

6.7 Big Data Analytics

6.8 Big Data Visualisation

6.9 Data Protection

Learning Summary

This module has only scratched the surface of big data. The discipline is still emerging and new techniques, processes and technologies are introduced on a weekly basis. Big data now touches almost every facet of an organisation from HR through to financial forecasting. Furthermore, within the marketing domain, big data is not just applicable to marketing communications, but can also be harnessed by the remainder of the 4 Ps: product, price and place.

In terms of promotion, however, as we have seen, there are a number of areas that can aid marketers in making their stakeholder communications more relevant and targeted, particularly in a digital marketing context. These include understanding what data to collect, how to store it, how to keep it clean, how to analyse it, how to report success back to the organisation and fundamentally how to look after it in a legal and compliant manner.


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7. Marketing Communications: Strategies, Objectives and Planning

Learning Objectives

As the minicase highlights, a strategic perspective involves key decisions about the overall direction of the programme and target audiences, the fit with the marketing and corporate strategy, the key message and desired positioning the brand is to occupy in the market, plus the resources necessary to deliver the position and accomplish the goals. This module therefore explores the nature of strategy, and of marketing communications strategies in particular. The goal is to familiarise readers with the elements and concepts associated with marketing communications strategy and planning, and to introduce the marketing communications planning framework.


introduce the notion of marketing communications strategy as a separate concept from marketing communications plans;

consider three main marketing communications strategies: pull, push and profile;

understand the importance of setting objectives in achieving strategic success;

learn how to set realistic promotional objectives;

consider the different elements involved in marketing communications plans;

highlight the linkages and interaction between the different elements of the plan; and

present a framework for the development of marketing communications plans.

Sections

7.1 Introduction

7.2 Market Segmentation

7.3 The 3 Ps of Marketing Communications Strategy

7.4 Strategic Balance

7.5 The Role of Promotional Objectives and Plans

7.6 Derivation of Promotional Objectives

7.7 The Need for Realism when Setting Promotional Objectives

7.8 SMART Objectives

7.9 The Marketing Communications Planning Framework (MCPF)

7.10 Links and Essential Points

Learning Summary

The development of a marketing communications strategy is important if an organisation is to communicate effectively with its various target audiences. Unlike planning, which is an articulation of strategy, marketing communications needs to be rooted in its target audiences and the task that needs to be completed. Push, pull and profile strategies can be combined in different ways to meet the needs of different communication tasks.

In addition to setting a strategy, the use of objectives in the management process is clearly vital if the organisation’s desired outcomes are to be achieved. Each of the


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objectives, at corporate, unit and functional levels, contributes to the formulation of the promotional objectives. They are all interlinked, interdependent, multiple and often conflicting.

The major task of the promotional objectives is twofold: first, to contribute to the overall direction of the organisation by fulfilling the communication require-ments of the marketing mix; second, to communicate the corporate thrust to various stakeholders so that they understand the focus of the organisation and can respond to its intentions. It is fundamental that objectives are expressed using the SMART technique as these are measurable and, if set correctly, can provide a barometer to the success of the strategy.

The next stage is the plan. The marketing communications planning framework offers a sequential format for the development of marketing communications plans. In real life, such plans are developed in parallel and involve the various individuals and stakeholders to varying degrees. The framework presented here is practical and robust, yet the linear approach should not be accepted without question.

8. Positioning, Branding and the Role of Marketing Communications

Learning Objectives

This module seeks to understand the concept of positioning and explore the nature and characteristics of branding. It will identify the ways in which marketing com-munications can be used to develop a positioning orientation and create and maintain a brand that is of significance to its respective target audiences.


evaluate the concept of positioning;

explore the technique of perceptual mapping;

understand and determine various positioning strategies;

introduce and explore the nature of branding;

examine the common characteristics of brands;

determine the benefits to both buyers and owners of brands;

identify the different types of brand and the relationships they can have with the parent organisation;

appreciate the strategic importance of brands;

understand the contribution of marketing communications and the way in which it can be used to build and support brands; and

appraise the nature and significance of brand equity.

Sections

8.1 Introduction

8.2 Positioning: An Introduction

8.3 The Positioning Concept

8.4 Developing and Managing a Position


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8.5 Positioning Strategies

8.6 Repositioning

8.7 Introducing Branding: Brand Characteristics

8.8 Benefits of Branding

8.9 Brand Portfolios: Architecture and Forms

8.10 The Strategic Role of Branding

8.11 The Role of Marketing Communications in Branding

8.12 Business-to-Business Branding

8.13 Corporate Branding

8.14 Online Branding

8.15 Employee Branding

8.16 Brand Equity

Learning Summary

The positioning process is very important, as the communications undertaken by the organisation help to shape the context in which individuals place the offering (or the organisation). The way in which an organisation decides to position itself and/or its offerings determines the form, intensity and nature of the messages transmitted through the promotional mix.

Branding provides customers with a quick and easy way of understanding what a product is and what value it represents. It can represent a measure of psychosocial reassurance. Branding provides manufacturers and distributors with a means of differentiating their products in order to gain competitive advantage in such a way that customers perceive added value. This allows for premium pricing, and the improved margin can be used to invest in new opportunities for commercial initiatives through, for example, innovation or improved levels of customer service.

Marketing communications has an important role to play in positioning and brand development and maintenance. In many circumstances advertising is used to develop strong brands. To help customers make associations with brands either a rational, information-based approach might be adopted or alternatively a more emotional relationship might be forged, one based more on imagery and feelings.

In many cases the opportunity to use advertising is restricted, and many smaller and B2B organisations need to rely on a below-the-line approach. In these circum-stances the brand name is important, because it needs to symbolise or convey meaning about the functionality of the brand. In addition, merchandising, packaging and other POP elements will be prominent in brand development.

There are many other factors that can influence the development of brands. Co-branding, geographic signals and award symbols can impact on brand associations so that ultimately risk is reduced, trust is enhanced, and there is sufficient confi-dence to purchase the brand on a regular basis.

Branding is a key strategic communication issue and not only affects FMCG products but is increasingly used by B2B organisations as a means of differentiation and added value.


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9. Media, Integration and Planning

Learning Objectives

As the Sony minicase suggests, media planning is essentially a selection and schedul-ing exercise. The selection refers to the choice of media vehicles to carry the message on behalf of the advertiser. With media fragmentation, audiences are switching between media with greater regularity, which impacts on media schedul-ing. Decisions regarding the number of occasions, timing and duration that a message is exposed in the selected vehicles to the target audience have become increasingly critical.

This module introduces the fundamental elements of media planning and sets out some of the issues facing media planners.


consider various theories concerning the content of different media and related media-switching behaviours;

explain the role of the media planner and highlight the impact of media and audience fragmentation;

examemine the key concepts used in media selection: reach and cover, frequen-cy, duplication, rating points and CPT;

appreciate the concept of repetition and the debate concerning effective fre-quency and recency planning;

understand the concepts of effectiveness and efficiency when applied to media selection decisions;

introduce media source effects as an important factor in the selection and timing of advertising in magazines and television programmes; and

explore the different ways in which advertisements can be scheduled.

Sections

9.1 Introduction

9.2 Media-Switching Behaviour

9.3 Vehicle Selection

9.4 Media Planning Concepts

9.5 Effective Frequency

9.6 Recency Planning

9.7 Media Usage and Attitudes

9.8 Efficiency

9.9 Online Media Planning

9.10 Media Source Effects

9.11 Scheduling

Learning Summary

The task of buying time or space in media vehicles in order that an advertising message may be carried to a target audience appears seductively straightforward. It is


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not. It is complicated by several factors, ranging from the size and dispersion of the target audience to the increasing number and variety of available media. These factors are referred to as audience and media fragmentation, which bring both benefits and difficulties for media planners and advertisers. For example, it is easier to target more specialised and compact target audiences using new and specialised media. However, audience profiles are changing rapidly, and there is little control information about these audiences that allows advertising funds to be allocated ‘properly’ (Mueller-Heumann, 1992).

Another major difficulty, which is increasing in importance, is the question of how many times a message must be repeated before an impression, awareness or learning occurs. The search for effective frequency continues, particularly by product class. However, it is generally accepted that three exposures are necessary as a minimum and ten as a maximum.

Decisions regarding the media cannot be made in isolation from the qualitative factors associated with each vehicle. Known as vehicle source effects, these are concerned with the vehicle’s atmosphere, technical aspects and audience/product fit.

The final task concerns the timing or scheduling of advertisements. As with most things in life, timing is of the essence. Scheduling calls for subjectivity and, although there are numerous quantitative measures to assist decision making, media planning is essentially about management making judgements about where best to place its client’s messages to maximise their effectiveness and the efficiency of the spend.

10. Evaluating Marketing Communications

Learning Objectives

As part of the marketing communications process it is necessary to evaluate the overall impact and effect that a campaign has on a target audience. It needs to be reviewed in order that management can learn and better understand the impact of its communications on its audiences. In turn, this enables management to refine the organisation’s competitive position and provide for higher levels of customer satisfaction. Organisations need to ensure that they achieve the greatest possible efficiency with each unit of resource (pounds sterling, dollars, roubles, Swedish kronor) they allocate to promotional activities. They cannot afford to be profligate with scarce resources, and managers are accountable to the owners of the organisa-tion for the decisions they make, including those associated with the costs of their marketing communications.

This module examines the testing and evaluation methods that are appropriate to all the tools of the communications mix.


discuss the role of evaluation as part of marketing communications;

explore the value and methods of pre-testing and post-testing advertisements;


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provide an insight into the value of qualitative and quantitative testing tech-niques;

appreciate the role that technology plays in the assessment and evaluation of advertising;

examine ways in which sales promotions can be evaluated;

present the methods used to evaluate direct marketing;

discuss the techniques and approaches used to measure and evaluate public relations;

explore the ways in which personal selling activities can be measured; and

consider some of the issues associated with evaluating the effectiveness of online communications.

Sections

10.1 Introduction

10.2 The Role of Evaluation in Marketing Communications

10.3 The Evaluation of Advertising

10.4 Pre-testing

10.5 Post-testing

10.6 Other Tests

10.7 The Evaluation of Sales Promotion

10.8 The Evaluation of Public Relations

10.9 The Evaluation of Sponsorship

10.10 The Evaluation of Direct Marketing

10.11 The Evaluation of Personal Selling

10.12 The Evaluation of Digital Marketing

Learning Summary

The evaluation of a marketing communications plan, once implemented, is an essential part of the total system. The evaluation provides a potentially rich source of material for the next campaign and the ongoing communications that all organi-sations operate, either intentionally or not.

It would appear that, should resources be made available and should manage-ment appreciate the importance of measuring the effectiveness of their investment in marketing communications, then testing before and after exposure to each campaign activity is advisable, in order that a degree of change can be determined. Although pre- and post-testing is normally an advertising-related approach, the principle can be applied across all the tools of the mix, to some extent.

There are many issues involved with the assessment of each of the tools of the promotional mix, some associated with their individual characteristics. There is no perfect or ideal technique, but research must be undertaken if the communication performance of an offering is to be built or maintained.

Only by attempting to measure effectiveness will our understanding improve, leading to more efficient use of marketing communications.


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11. Advertising and Strategy, Advertising Messages and Creative

Approaches

Learning Objectives

Any attempt to understand how advertising might work must be tempered by an appreciation of the complexity and contradictions inherent in this commercial activity. Understanding how advertising might work, with its rich mosaic of percep-tions, emotions, attitudes, information and patterns of behaviour, has been a challenge for many eminent researchers, authors and marketing professionals.

This module therefore explores the different views about advertising strategy and considers the complexities associated with understanding how clients can best use advertising. Additionally, this module explores the context in which people receive and interpret advertising messages in order for the effectiveness of a communica-tion to be maximised. Ensuring that the right balance of information and emotions is achieved and that the presentation of the message is appropriate for the target audience represents a critical part of the creative process, both for the advertising agency and for the client. The module considers some of the ways in which advertis-ing messages can be created by focusing on some of the principal aspects of message construction and presentation.


consider the role that advertising plays in both consumer and business-to-business markets;

introduce the principal frameworks by which advertising is thought to influence individuals;

appraise the strong and weak theories of advertising;

present the alphabetical model of advertising;

evaluate the FCB grid as a tool for strategy development;

use the Rossiter–Percy grid as a means of creating strategic direction.

show how messages can be constructed to account for the context in which they are to be received;

examine the importance and characteristics of using source credibility;

examine the use of emotions and feelings in advertising messages;

explore the advantages and disadvantages of using spokespersons in message presentation; and

consider how advertising messages might be best presented.

Sections

11.1 Introduction

11.2 Emotion in Advertising

11.3 Advertising Models and Concepts

11.4 The Strong and Weak Theories of Advertising

11.5 Using Advertising Strategically

11.6 Advertising to Engage


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11.7 Advertising Messages

11.8 Message Source

11.9 Message Balance

11.10 Message Structure

11.11 Message Presentation

Learning Summary

A variety of models have been developed in an attempt to explain how advertising works. In addition, some of these models have attempted to develop a strategic perspective for this mass communications tool. AIDA and the various sequential models, such as the hierarchy of effects approach, have now given way to new views of how advertising works.

Advertising, once considered the prime form of mass persuasion, is now subject to many different views. Those who are sceptical of advertising’s power to persuade consumers to change their purchasing habits now explore ideas concerning advertis-ing’s strategic role in reinforcing brand messages and repositioning brands. The strong theory of advertising reflects the persuasion concept, and has high credibility when used with new brands. However, the contrasting view is that advertising should be regarded as a means of defending customers’ purchase decisions and for protecting markets, not building them. Reality suggests that most advertising cannot claim to be of significant value to most people, and that the strong and the weak theories are equally applicable but not at the same time and not in the same context.

The FCB and Rossiter–Percy grids represent formalised attempts to interpret the strategic use of advertising. Intended to provide agencies with a method that might ensure consistency, meaning and value with respect to their client’s brands, these grids are no longer considered by agencies to be sufficiently flexible, rigorous or representative of how contemporary advertising performs.

As well as advertising theory, the design and assembly of advertising messages is crucially important. Through establishment of a good realm of understanding, messages can be created in such a way that they stand a far greater chance of building a dialogue between members of the target audience and the brand. By appreciating the underlying emotions of the target buyer and the motivations that drive attitudes and purchase intentions, the balance and the pattern they assume can be shaped in such a way that they lead to effective advertising.

12. Sales Promotion

Learning Objectives

Sales promotion seeks to offer buyers additional value as an inducement to generate an immediate sale. These inducements can be targeted at consumers, distributors, agents, or members of the salesforce. Sales promotions can form an important part of the communications mix, and are often of strategic importance to number three and four brands in fast-moving consumer goods markets.


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This module considers the nature and role of sales promotion, and appraises its position within the marketing communications mix.


explain the role of sales promotion in the promotional mix;

discuss the reasons for the increased use of sales promotions;

examine the way in which sales promotions are considered to work;

appraise the value of this promotional tool;

discuss the nature of loyalty programmes, and issues associated with customer retention;

appreciate how sales promotions can be used strategically;

examine the sales promotion techniques used by manufacturers and resellers; and

clarify the particular objectives sales promotions seek to satisfy.

Sections

12.1 Introduction

12.2 Understanding the Value of Sales Promotions

12.3 The Role of Sales Promotion

12.4 Sales Promotion Plans: the Objectives

12.5 An Overview of How Sales Promotions Work

12.6 Loyalty and Retention Programmes

12.7 The Strategic Use of Sales Promotions

12.8 Methods and Techniques

12.9 Sales Promotions: Manufacturers to Resellers

12.10 Sales Promotions: Resellers to Consumers

12.11 Sales Promotions: Manufacturers to Consumers

12.12 Sales Promotions: the Salesforce

12.13 Field Marketing

12.14 Brand Experience

12.15 Licensing

12.16 Other Sales Promotion Aids

Learning Summary

Sales promotions now command the lion’s share of the promotional budget. This is because it has been proved that they are very effective as a communication tool with consumers, members of the performance network and the salesforce. The range of techniques and methods used to add value to offerings is enormous, but there are growing doubts about the effectiveness and profitability of some sales promotions.

In comparison with advertising and public relations, many of the sales promotion techniques are easier to evaluate, if only because the number of variables is smaller and they are easier to isolate. Having said this, there is a lack of effective sales promotion measurement and control. This often leads to a short-term focus. Retailers are in the same position, except for the evaluation on a pre- and post-test


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basis of their own-brand promotions. Store traffic, sales volume and consumer attitude studies prevail.

Sales promotions have a strategic role to play, particularly when they are used to complement the other activities in the promotional mix. By attempting to develop a consistent theme for a promotional plan, sales promotions can follow advertising’s awareness-building activities with a series of messages that continue the theme already established. Success is much more likely when consumers are invited to take advantage of a promotion for a product that they are not only aware of but have raised consciousness of as a result of recent promotional messages.

Sales promotions used by manufacturers to communicate with resellers are aimed at encouraging resellers either to try new products or to purchase more of the ones they currently stock. To do this, trade allowances, in various guises, are the principal means.

Sales promotions used by resellers (largely retailers) to influence consumers are normally driven by manufacturers, although some price deals and other techniques are used to generate store traffic. Most sales promotions are used by manufacturers to influence consumers. Again, the main tasks are to encourage trial or increase product purchase. A range of techniques, from sampling and coupons to premiums, contests and sweepstakes are used with varying levels of success, but there has been a distinct shift away from traditional promotional instruments to the use of digital media in order to reflect consumers’ preferences and media behaviour.

13. PR and Sponsorship

Learning Objectives

Public relations (PR) is a management activity that attempts to shape the attitudes and opinions held by an organisation’s stakeholders. The first part of the module explores PR in the context of promoting organisations and their products. The second half of this module focuses on sponsorship, which is becoming an increas-ingly popular element of the communications mix because of its reach, potential engagement and relative cost-effectiveness.


discuss the role of PR in the communications mix;

clarify the differences between corporate PR and marketing PR;

highlight the main audiences to whom PR activities are directed;

provide an overview of some of the main tools used by PR;

appreciate the development and significance of corporate advertising;

examine the nature and context of crisis management;

determine the manner in which PR complements the other tools of the promo-tional mix;

understand the reasons why sponsorship has become an important part of the promotional mix;

provide an insight into the main characteristics of this form of communication;


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consider where sponsorship may best be placed in the promotional mix; and

explore ways in which sponsorship can be best evaluated.

Sections

13.1 Introduction to PR

13.2 Characteristics of PR

13.3 Stakeholders

13.4 A Framework of PR

13.5 Corporate PR and Marketing PR

13.6 Objectives of a PR Plan

13.7 PR Methods and Techniques

13.8 Publicity and Events

13.9 Social Media and ePR

13.10 Lobbying

13.11 Investor Relations (Financial or City PR)

13.12 Crisis Management

13.13 Sponsorship

13.14 The Growth and Development of Sponsorship

13.15 Sponsorship Objectives

13.16 Types of Sponsorship

13.17 Brand Placement

13.18 Sponsorship Evaluation

Learning Summary

Public relations, whether oriented primarily to product support or to the develop-ment of corporate goodwill, plays an important role within the communications mix. According to Haywood (1991), PR can support marketing in various ways, from improving awareness and projecting credibility to creating direct sales leads and motivating the salesforce and members of the performance network. However, PR is now recognised as a communication discipline that can develop and maintain a portfolio of relationships with a range of key stakeholder audiences.

By providing all stakeholders with cues by which they can develop an image of an organisation, PR enables organisations to position themselves and provide stake-holders with a means of identifying and understanding the organisation. This may be accomplished inadvertently through inaction or deliberately through a planned presentation of a variety of cues. These range from publicity through press releases to the manner in which customers are treated, products perform, events are managed and expectations are met.

Finally, the area referred to as crisis communications management has grown in significance during recent years. PR plays an important role in preparing for and constraining the impact of a crisis and re-establishing an organisation once a crisis has passed.

By creating campaigns targeted at individual stakeholders, or at least identifying the needs of the performance network as separate from those of the support


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network, the effects intended at the outset can be measured at the close of different campaigns.

Sponsorship of events, activities and organisations will continue to grow in sig-nificance, if only because of its effectiveness and value as a tool of marketing communications relative to the other tools in the mix. Organisations believe that sponsorship allows them access to specific target audiences and enhances their corporate image (Marshall and Cook, 1992).

There seems little doubt that the introduction of new products and brands can be assisted by the use of appropriate sponsorship. Indeed, it appears that sponsorship, in certain contexts, can be used to prepare markets for the arrival and penetration of new brands.

The evaluation of sponsorship arrangements poses a problem, in that measure-ment is little better than that used for advertising. However, the impact and approach that sponsorship can have suggest that it should be used together with advertising and coordinated, if not integrated, to develop awareness and strong brand associations and triggers. There is a warning, and that concerns the degree to which sponsorship is capable of changing purchase behaviour through persuasion. Organisations considering the use of sponsorship as a means of directly impacting upon the bottom line are likely to be disappointed. Other tools are required to stimulate behaviour; sponsorship alone is not capable of persuading target audiences to behave differently.

14. Internal Marketing Communications

Learning Objectives

The concept of ‘internal marketing’ recognises the importance of organisational members (principally employees) as important markets in their own right. These markets can be regarded as segments (and can be segmented). Each segment has particular needs and wants that require satisfaction in order that an organisation’s overall goals can be accomplished. Internal (marketing) communications serves not only to convey managerial intentions and members’ feelings but in many circum-stances represents an integral aspect of communication with external stakeholder groups.

This module examines the context of internal marketing and how such issues might impact on an organisation’s overall marketing communications.


introduce the notion of internal marketing;

understand the significance of organisational issues when developing marketing communications strategies;

introduce the notion of organisational identity and the impact that employees can have on the way that organisations are perceived by members and non-members;

examine the impact of corporate culture on planned communications;


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provide an insight into the notion of strategic credibility and stakeholder perception of the focus organisation;

appreciate the interaction and importance of corporate strategy to planned communications;

examine how communication audits can assist the development of effective marketing communications; and

introduce ideas concerning the intellectual and emotional engagement of employees.

Sections

14.1 Introduction

14.2 Member/Non-Member Boundaries

14.3 Purpose of Internal Marketing

14.4 Organisational Identity

14.5 Brand Engagement

14.6 Advertising and the Impact on Employees

14.7 Strategic Credibility

14.8 Communications Audit

14.9 Common Internal Communications Channels

Learning Summary

Intra-organisational issues need to be appreciated when building a communications plan. One of the key factors to be considered is the corporate strategy, including the degree to which it is understood by stakeholders and the credibility that manage-ment has to manage strategic processes.

A major influence on the communication style is the prevailing culture. Culture is a reflection of the personality of the organisation, which in turn affects the corpo-rate identity or the way in which an organisation presents itself to its stakeholders. This presentation of visual cues can be managed deliberately or left unattended. Either way, stakeholders develop a picture of the organisation that enables them to position it among others. This corporate image may well be an accurate interpreta-tion of the real organisation. However, it may be inaccurate, in which case marketing communications needs to address the problem and narrow the gap between reality and image.

15. Direct Marketing

Learning Objectives

Direct marketing is a strategy used to create a personal and intermediary-free dialogue with customers. This should be a measurable activity, and it is very often media based, with a view to creating and sustaining a mutually rewarding relation-ship. The development and use of direct marketing principles by a variety of organisations are testimony to the power of this personal form of communication.


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This module explores the characteristics of direct marketing, and develops an understanding of interactive marketing communications.


introduce and define direct marketing;

consider the reasons behind the growth and development of this marketing communications tool;

examine the relationship of direct brands and direct response media and their role within the marketing communications mix;

appreciate the significance of the database in direct marketing;

identify and consider different direct response media; and

consider the value of integrating the activities of direct marketing with other elements of the mix.

Sections

15.1 Introduction

15.2 The Role of Direct Marketing

15.3 Types of Direct Brand

15.4 The Growth of Direct Marketing

15.5 The Role of the Database

15.6 Direct Response Media

15.7 Supporting the Salesforce

15.8 Multichannel Selling

Learning Summary

Direct marketing has become an established communications discipline. The various ways in which direct marketing can be used are proliferating, mainly as a result of developments in technology. Direct marketing uses direct response media based on database support, and permits the generation and feedback of messages with individual customers. The overarching objectives are to build and sustain a mutually rewarding relationship with each customer, to reduce media costs, and to improve effectiveness and measurement.

The use of direct marketing has grown considerably in recent years and will un-doubtedly continue to grow as new efficiency and effectiveness measures are developed. For some organisations their whole marketing approach has been built around the direct concept (e.g. First Direct in financial services), whereas for others the approach has been used to complement their use of the other tools in the promotional mix. Direct marketing will not replace mass-media-based communica-tions, but it is likely that an increasing proportion of marketing budgets will move towards direct communication activities.


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16. Digital Marketing

Learning Objectives

Digital marketing is the newest medium within the marketing communications mix. Due to its constantly evolving nature it is also one of the largest marketing commu-nications disciplines, comprising scores of techniques that enable organisations to engage with existing and potential customers online.

This module builds on the module on Digital Marketing Decisions within the core Marketing course, considers the nature and role of digital marketing, and appraises its position within the marketing communications mix.


explain the evolution of digital marketing;

discuss the reasons for the increasing usage of digital marketing;

clarify the particular objectives of digital marketing;

identify the common techniques used by digital marketers; and

appreciate how digital marketing can be used strategically.

Sections

16.1 Introduction

16.2 The Emergence of Digital Marketing

16.3 Understanding the Value of Digital Marketing

Learning Summary

Digital marketing has emerged as a result of the changing macro-environment. As technology becomes more advanced and the Internet becomes more prevalent in everyday life, coupled with the changing consumer, organisations have had to alter how they market to their customers. For those that failed to evolve there has been a shake-out, and we have witnessed the death of many huge brands such as HMV and Kodak that did not adapt to the rapidly changing marketplace.

Digital marketing is not a standalone channel; it touches every other communica-tion discipline within the marketing mix. The range of techniques and methods used is vast and this module only touches on a percentage of them. Likewise, as new technology comes to the fore and new platforms become popular, digital marketing evolves on an almost day-by-day basis. This makes investment in digital a necessary but sometimes risky strategy, and marketers have to weigh up the validity of different approaches according to their own specific audiences and objectives.

While tactical deployment can be quick and effective in addressing a need when planning is limited, alignment with other digital marketing initiatives and the overall strategy can be jeopardised. Conversely, when a business focuses on the strategic implementation of digital marketing, but with little thought to the ‘nuts and bolts’ – the tactical execution – this can lead to a lack of consistency, personality and content. Digital marketing is a 24/7 discipline that is constantly updated. If some-


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thing is posted one day, by the next it is almost invisible unless specifically searched for.

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