marketing communications exam summary
DESCRIPTION
Booklet contains key information related to the Marketing Communications exam for BA Honours RGU examinationTRANSCRIPT
Adeel Qurashi
Robert Gordon University – BA Honours
Marketing Communications EXAM Review Summary of core text; including: lectures, core book and relevant internet sources
MC Exam Summary 1 General
Page 2 of 22
Table of Contents
1 General ........................................................................................................................................ 5
1.1 Definition MC ................................................................................................................................ 5
1.2 Learn ............................................................................................................................................. 5
1.3 Corporate PR ................................................................................................................................. 5
1.4 Marketing PR ................................................................................................................................. 5
1.5 Marketing Mix ............................................................................................................................... 5
1.6 Promotional Mix ........................................................................................................................... 6
1.7 Promotion ..................................................................................................................................... 6
1.8 Sales Promotion ............................................................................................................................ 6
1.9 Marketing and Communications ................................................................................................... 6
2 Marketing .................................................................................................................................... 7
2.1 Learn ............................................................................................................................................. 7
2.2 Marketing Communications .......................................................................................................... 7
2.3 Promotional Mix Factors ............................................................................................................... 7
2.4 Effective MC .................................................................................................................................. 7
2.5 Communication process ............................................................................................................... 8
3 Segmentation ............................................................................................................................... 9
3.1 Learn ............................................................................................................................................. 9
3.2 Definition ...................................................................................................................................... 9
3.3 Objective ....................................................................................................................................... 9
3.4 Criteria ........................................................................................................................................... 9
3.5 Most succesful .............................................................................................................................. 9
3.6 Segmentation model ..................................................................................................................... 9
4 Media ......................................................................................................................................... 10
4.1 Learn ........................................................................................................................................... 10
4.2 Traditional media types .............................................................................................................. 10
4.3 New media .................................................................................................................................. 10
4.3.1 Digital Media ....................................................................................................................... 10
4.3.2 Use of ‘tools’ in new media ................................................................................................. 10
MC Exam Summary 1 General
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4.4 Media vehicle selection .............................................................................................................. 11
5 PR .............................................................................................................................................. 12
5.1 Learn ........................................................................................................................................... 12
5.2 PR Definition ............................................................................................................................... 12
5.3 Publicity definition ...................................................................................................................... 12
5.4 PR Types ...................................................................................................................................... 12
5.5 PR Publics .................................................................................................................................... 12
5.6 PR Vehicles .................................................................................................................................. 12
5.7 Cause related marketing ............................................................................................................. 13
5.8 Objectives of PR .......................................................................................................................... 13
6 Sponsorship ............................................................................................................................... 14
6.1 Learn ........................................................................................................................................... 14
6.2 Definition .................................................................................................................................... 14
6.3 Aim of sponsorship ..................................................................................................................... 14
6.4 Key considerations ...................................................................................................................... 14
6.5 Sponsorship ‘tools’ ...................................................................................................................... 14
7 Advertising ................................................................................................................................. 15
7.1 Learn ........................................................................................................................................... 15
7.2 Definitions ................................................................................................................................... 15
7.3 Reasons for advertising ............................................................................................................... 15
7.4 Barriers ........................................................................................................................................ 15
7.5 How advertising works ................................................................................................................ 15
7.6 AIDA ............................................................................................................................................ 15
7.7 Hierarchy of effects ..................................................................................................................... 16
7.8 Advertising model (process) ....................................................................................................... 16
8 Sales Promo ............................................................................................................................... 17
8.1 Definition .................................................................................................................................... 17
8.2 Key features ................................................................................................................................ 17
8.3 Sales promo objectives ............................................................................................................... 17
8.4 Sales promo approach ................................................................................................................ 17
8.5 Aim Customer loyalty programmes ............................................................................................ 17
8.6 Objective Customer loyalty programmes ................................................................................... 17
MC Exam Summary 1 General
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9 Direct Marketing ........................................................................................................................ 18
9.1 Definition .................................................................................................................................... 18
9.2 Tools ............................................................................................................................................ 18
9.3 Advantages .................................................................................................................................. 18
9.4 Disadvantages ............................................................................................................................. 18
10 Design, Packaging and Merchandising, POS ................................................................................ 19
10.1 Design packaging Concern .......................................................................................................... 19
10.1.1 Good design ........................................................................................................................ 19
10.2 Labels .......................................................................................................................................... 19
10.3 Branding advantages ................................................................................................................... 19
10.4 Golden Rules of Branding............................................................................................................ 19
10.5 Merchandising ............................................................................................................................ 20
10.6 POS .............................................................................................................................................. 20
10.7 Six steps to an improved Identity ............................................................................................... 20
11 Advertising Agencies .................................................................................................................. 21
11.1 Learn ........................................................................................................................................... 21
11.2 Advertisers options ..................................................................................................................... 21
11.3 Types of agencies ........................................................................................................................ 21
11.4 Benefits ....................................................................................................................................... 21
11.5 Key staff agency .......................................................................................................................... 21
11.6 Review agencies .......................................................................................................................... 21
11.7 Selection Criteria ......................................................................................................................... 22
11.8 Partnership .................................................................................................................................. 22
11.9 Barriers to partnership ................................................................................................................ 22
MC Exam Summary 1 General
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1 General
1.1 Definition MC The process of presenting an integrated set of stimulus to a market with the intent of evoking desired
responses within that market set and setting up channels to receive, interpret and act upon messages
from the market for the purposes of modifying present company messages and identifying new
communication opportunities - Delozier (1976)
‘The process by which a marketer develops and presents stimuli to a defined target audience with the
purpose of eliciting a desired set of responses’ (Yeshin)
‘All elements in a brand’s marketing mix that facilitate exchanges by establishing shared meaning with
customers’ (Shimp)
1.2 Learn Consider learning Marketing Research; though not very significant
1.3 Corporate PR Cutlip et al (1985) ‘a function of management seeking to identify, establish and maintain mutually
beneficial relationships between an organisation and the various publics on whom its success or failure
depend’
1.4 Marketing PR Cutlip et al (1985) ‘not only concerned with organisational success and failure, but also with specific
publics: customers, consumers and clients with whom exchange transactions take place’
1.5 Marketing Mix The 7 p’s
Price
Promotion
Place
Product
Physical
People
Process
MC Exam Summary 1 General
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1.6 Promotional Mix A business' total marketing communications programme is called the "promotional mix" and consists of
a blend of advertising, personal selling, sales promotion and public relations tools
Advertising
Personal Selling
Sales Promotion
Publicity
1.7 Promotion Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix.
1.8 Sales Promotion “An activity designed to boost the sales of a product or service. It may include an advertising campaign,
increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging
demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price
reductions, door-to-door calling, telemarketing, personal letters on other methods”.
Price promotions Coupons Gift with purchase Competitions and prizes Money refunds Frequent user / loyalty incentives Point-of-sale displays
1.9 Marketing and Communications Messages and related media used to communicate with a market.
Advertising
Branding
Direct marketing
Graphic design
Marketing
Packaging
Promotion
Publicity
Sponsorship
Public relations
Sales
Sales promotion
Online marketing
MC Exam Summary 2 Marketing
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2 Marketing
2.1 Learn - Where does MC fit in
- How does MC work
2.2 Marketing Communications Advertising
Sponsorship
Design/Packaging
Sales Promotion
P.R./Publicity
Direct Marketing
2.3 Promotional Mix Factors Resources available
Promotional message
Complexity of product/service
Market type/size/location
Distribution
Marketing strategy/life-cycle stage
State of buyer readiness
Competitors’ actions
2.4 Effective MC Effective communication involves sending a stimulus to the senses and gaining a response - a
two way process
Messages received depend on the sender, the tone and the language
Message persuasiveness affects response
Audiences need to be on the same wavelength - interpretation is critical
Response and understanding stem from existing knowledge and attitudes
Repositioning is more difficult - reinforcement is more effective than conversion
Advertisers have low credibility - they are expected to be biased
Actions speak louder than words?
All organisations communicate
Images and impressions have a profound effect on success (the ‘Branson’ factor)
MC Exam Summary 2 Marketing
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Who do they target? Two step and multi step models
Introduce opinion leaders, style leaders (influencers) and listeners rather than the mass
audience
2.5 Communication process
Schramm (1955)
MC Exam Summary 3 Segmentation
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3 Segmentation
3.1 Learn How to decide upon target market
3.2 Definition ‘The division of the market into customer subsets, one or more of which becomes the target market,
each with a distinct marketing mix
3.3 Objective To identify populations that offers an opportunity to focus clearly on their needs and satisfy them
3.4 Criteria Geography
Demographics (age/sex/family/income/ occupation/family life cycle)
Geo-demographics
Psychographics (lifestyles, reflecting social class, personalities, etc.)
Behaviour traits (in terms of purchasing occasions, benefits sought, loyalty status, etc.)
3.5 Most succesful Most successful when targeted segments and strategies are:
Measurable and identifiable
Substantial and profitable
Accessible
Actionable
3.6 Segmentation model Stage One: Market Segmentation
Identify customer needs and segment the market Develop profiles of resulting segments
Stage Two: Target Marketing Evaluate attractiveness/growth potential Select target segments
Stage Three: Market Positioning Identify differential advantage for each segment Formulate marketing/communications strategy
Stage Four: Market Planning Develop plans for each segment
Develop marketing organisation
MC Exam Summary 4 Media
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4 Media
4.1 Learn - Combination of traditional media (tv, radio,billboards) and how they started to lose out to new
media (internet) and overall
4.2 Traditional media types Tv
Outdoor
o Billboards
o Stadia/trackside advertising
o Vehicle sides
o Miscellaneous
Press
Newspaper
Magazines
Radio
Cinema
4.3 New media Internet
Mobile phones
Computer games
Multimedia/CD-rom
Digital television
4.3.1 Digital Media
Add depth and engagement to standard advertising strategies
Generate leads on a cost per acquisition basis through paid search
Employ multiple channels: ‘media meshing’
But ... the web and mobiles do not replace ‘offline’ media.
4.3.2 Use of ‘tools’ in new media
Video
Sound and music
Graphics
Animation
Internet links
MC Exam Summary 4 Media
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4.4 Media vehicle selection Choice criteria:
Audience profile
Product nature
Message types
Reach/cost
Reproduction quality/prestige/image
Submission deadlines
MC Exam Summary 5 PR
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5 PR
5.1 Learn Types of PR
Who are they looking to address (PR audiences)
Methodologies
5.2 PR Definition ‘All forms of planned communications between any organisation and its publics with the purpose of
establishing mutual goodwill and understanding’ (Yeshin)
‘Encoding and communicating messages to targeted audiences in order to influence a desired response’
(PRCA)
5.3 Publicity definition Any communication concerning a company, product or service which is not paid for, or sponsored’
(Yeshin)
5.4 PR Types Marketing P.R.
Defensive/reactive P.R. (issues management)
Proactive P.R. (lobbying)
Corporate P.R. (stakeholder relations)
5.5 PR Publics Commercial
Internal
Financial
Authorities
Media
Opinion formers
Community/society
5.6 PR Vehicles • Media contact • News stories/Press releases • Advertiser funded programmes/advertorials • Media events • Press office • Sponsorships/Exhibitions • Corporate hospitality
MC Exam Summary 5 PR
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5.7 Cause related marketing PR
Sales Promotion
Corporate philanthropy ... where customers engage in commercial exchanges with firms that produce revenue for good causes e.g. Comic Relief, Tesco’s Computers for Schools, RSPCA mastercard
5.8 Objectives of PR Create/maintain identity and image
Enhance the organisation’s standing
Communicate its philosophy and purpose and the benefits of its products and services
Improve media relations/manage publicity
Develop good employee relations
Aid liaison with and lobbying of key publics
Plan/manage crises and situations
MC Exam Summary 6 Sponsorship
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6 Sponsorship
6.1 Learn - How it works
- Gaining prestige, additional value
- Budget and targeting
6.2 Definition ‘The connection of a company/product with a public event in which the manufacturer covers part or all of the costs in return for the benefit of association’ (Yeshin) ‘Investment by a company in special events or causes in order to achieve promotional or corporate objectives’ (Shimp)
6.3 Aim of sponsorship Develop customer/consumer relationships
Foster goodwill
Build profile/prestige/reputation/image
Enhance brand equity
Increase brand name retention and reduce brand decay
Generate financial return (sales/market share)
6.4 Key considerations Relevance to target audience/brand
Value for money
Media coverage available i.e. PR potential
Can media coverage be leveraged? (e.g. innovative use of media)
Compatibility
Integration potential
Lifespan/long term value
Uniqueness/popularity
What elements are contracted? (Beware ‘ambush’ marketing!)
Editorial v. advertising value
6.5 Sponsorship ‘tools’ Active in sport, education, the arts, media, charitable enterprises, etc.
Supports employee/government/community relations through emphasising social responsibility
Typically a support communications activity
MC Exam Summary 7 Advertising
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7 Advertising
7.1 Learn - Why advertise
- When to advertise
- How does it work
- Background info
o Aida
o Hierarchy of effects
7.2 Definitions Any form of paid-for media used by marketers to communicate with their target audiences’
(Yeshin)
‘Mass or direct-to-consumer non-personal communication paid for by a firm or individual
identified in the advertising message, hoping to inform or persuade a specific target audience’
(Shimp)
7.3 Reasons for advertising Differentiates standard products
Reaches large numbers of end users i.e. where purchase amounts are small and volumes are high
Bypasses intermediaries
Supports new products
Highlights auxiliary services
Reinforces status and justifies premiums
7.4 Barriers Insufficient resources
Unquantifiable benefits
Lack of focus
Talking a good game, not playing one
7.5 How advertising works Persuasion model
Recency model
Low involvement processing
Permission marketing
7.6 AIDA Awareness – Interest – Desire - Action
MC Exam Summary 7 Advertising
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7.7 Hierarchy of effects Attention - Knowledge – Liking – Preference – Action
7.8 Advertising model (process) A chain of processes must be initiated:
• Creating a cognitive structure (message considered and understood)
• Creating a motivational (affective) structure (changes attitudes)
• Creating a behavioural (conative) structure (brings about action)
Complex and interrelated, sometimes incomplete or in a different order
MC Exam Summary 8 Sales Promo
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8 Sales Promo
8.1 Definition The use of short-term, often tactical, techniques to achieve short term sales objectives’. (Yeshin)
‘Marketing activities intended to stimulate quick buyer action by offering extra benefits to customers’
(Shimp)
8.2 Key features Uses traditional and new or ‘alternative’ media
Takes place (usually) over a pre-determined or limited period
At consumer, retailer or wholesaler levels
Stimulates trial/increases demand/increases availability
8.3 Sales promo objectives Creating awareness and generating trial
Rewarding loyalty
Increasing repeat purchase
Widening usage
Renewing/adding value
Creating interest
Gaining intermediary support and display
8.4 Sales promo approach PULLS the product through the channel by appealing to (all? deal prone? loyal?) consumers
PUSHES the product into the channel by incentivising intermediaries
ENCOURAGES the sales force e.g. payment by commission
8.5 Aim Customer loyalty programmes Avoid short termism
Build relationships with targeted groups
Respond to customer needs/profiles
Track purchase patterns
Generate additional sales by appealing to existing customers and winning new ones
8.6 Objective Customer loyalty programmes Increased sales, profit and market share
Increased frequency of purchase
Increased spend
New customers
Relationship building and customer loyalty
MC Exam Summary 9 Direct Marketing
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9 Direct Marketing
9.1 Definition Communications where data are used systematically to achieve quantifiable marketing objectives and
where direct contact is invited or made between a company and its customers’ (DMA UK)
‘An interactive system of marketing which uses one or more advertising media to effect measurable
response and/or transactions at any location’ (ADMA)
9.2 Tools Direct Mail
Telemarketing, e-mail and SMS/mobile marketing
Direct Response Advertising (including ‘digital interactive’)
Field marketing
Inserts
Door to Door/on location leafleting
Mail Order catalogues/customer mags
9.3 Advantages Reduces wastage (cost efficient/targeted)
Provides measurable results
Establishes direct links with consumers
Replaces monologue with dialogue
Customises product offers
Immediate mass/micro marketing
9.4 Disadvantages Intrusive nature
Image
Set up costs
Distribution channel conflict
List problems
MC Exam Summary 10 Design, Packaging and Merchandising, POS
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10 Design, Packaging and Merchandising, POS
10.1 Design packaging Concern Quality level/consistency
Features
Design
10.1.1 Good design
Attracts attention
Improves product performance
Cuts production costs
Gives competitive advantage
10.2 Labels Identify the product
Grade the product
Promote the product
Legislation should prevent:
Misleading/insufficient information
Inadequate safety precautions
10.3 Branding advantages Helps identification
Helps evaluate quality
Reduces risk
Conveys status
Facilitates n.p.d.
Spreads promotional benefits
Leads to increased loyalty/product value
10.4 Golden Rules of Branding Ensure product quality lives up to image
The first brand gets the best grazing
Adopt an unique positioning concept
Don’t change it without good reason
Tell the target market
Repeat the message with consistency
No point branding a dead cow!
MC Exam Summary 10 Design, Packaging and Merchandising, POS
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10.5 Merchandising Effective product display and promotion at the point of sale intended to:
Make more efficient use of floor space
Increase visibility for consumers
Improve retail traffic flow/allow signposting
Attract attention and communicate offers
Complement image and increase sales
Aim is to allow as wide a range as possible to be stocked, whilst:
Maintaining aisle width/minimising clutter
Encouraging browsing
Allowing easy access/product identification
Focusing on most profitable lines
Not making the outlet seem overwhelming
10.6 POS Shelf edge material/shelf display units
Window/on shelf displays
Dump bins/off shelf/gondola end displays
Posters/cut outs/showcards
Shelf space/colour blocking
Video walls/spotlighting/interactive systems
10.7 Six steps to an improved Identity Know your market
Analyse your product/service
Establish actual and potential USPs
Determine effective strategies
Monitor, evaluate and control
Tell what you sell
MC Exam Summary 11 Advertising Agencies
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11 Advertising Agencies
11.1 Learn How many would you invite
How to review agencies
11.2 Advertisers options Develop advertising through the media
An ‘in house’ advertising department
Use a communications consultancy
Use a combination of both!
Use a full service advertising agency
Use specialist agencies
11.3 Types of agencies Full service agencies provide all round skills and experience, objectivity and an integrated
approach, but lack specific expertise
A la carte approach ensures specialist expertise, but may be less well coordinated
Choice depends on client ability, overall budget and communication requirements
11.4 Benefits Reduced contact costs
Time savings
Specialist knowledge
Economies of scale
Creative qualities
11.5 Key staff agency Managing Director
Account team
Creative team
Production/traffic department
Planning department
Media planners/buyers
General management services
11.6 Review agencies Statutory reasons
Keep an agency on its toes
Unsuccessful advertising
Poor agency performance
Finding out what’s there
New client personnel
MC Exam Summary 11 Advertising Agencies
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11.7 Selection Criteria Creative ideas/strategy
Media buying/planning proposals
Personnel
Agency approach (including size issues)
Agency background/expertise/geography
Services offered
Cost
11.8 Partnership Benefits from meeting expectations based on:
Agency market knowledge (woods and trees?)
Successful creative executions
Proactive/reactive approach as required
Through the line solutions
Media performance (media neutral planning)
Communication and reward
11.9 Barriers to partnership Junior decision makers/lack of board access
Unfair remuneration (clients wanting more for less!)
Poor/unclear briefs
Lack of trust/openness
Lack of time
Client personnel changes Source: AAR/Express Train