Transcript Communication process

Principles Of Marketing
BS2101
Lecture 9
Communicating the Offer
2012/2013
Author: Dr P.Harborne
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Week 1
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Principles
of Marketing
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Communicating the Offer
Objectives
To understand:
• The marketing communications process
• Types of marcomms
• Strengths of each type of marcomm
• Barriers to effective communication
• Key issues in effective communication
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Communicating the offer
Structure
1. Communication process
2. Advertising
3. Targeting Adverts
4. Promotion through spokesperson
5. Promotions
6. Public Relations
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COMMUNICATION PROCESS
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Integrating Communications
Strategy
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The Communications Process
Sender
Assembles message
into words,
pictures etc
Final message
Communicated via
chosen media
NOISE
Receiver
Interprets
message
Feedback to sender
e.g. complaints,
commendations
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Receiver’s response
What they learn, feel,
do as a result of the
message eg purchase
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Planning a Marcomms campaign
Strategy issues:
Media issues:
• Who is our target
audience?
• How should we
communicate this? (i.e.
the message)
• What do we need to
communicate and achieve
(objectives)?
• How much shall we spend?
• How well did we do?
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• Where should we
communicate this?
(promotion mix)
• When do communications
need to take place? (promotion
schedule)
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Promotion Objectives
What?
Informs
Coordination
of Marketing
Communication
Builds Relationships
Efforts to
Influence
Attitudes or
Behaviors
Reminds
Persuades
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ADVERTISING
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Advertising & Persuasion
• 1950s :Hidden Persuaders’ - mistrust of adverts
• Govts increasingly control
– UK Ban on tobacco advertising
– UK Control on alcohol advertising
• In UK consumption higher since adverts tightened in 2005
– UK Control on junk food adverts
• But does ‘go to work on an egg” revival ban ruin perceptions
• Calls for control on UK adverts for
– 4x4 cars
– Children ( already exists in Sweden)
But does advertising really persuade?
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Subliminal advertising
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Knocking copy 1
From S Africa. This is not allowed in the
UK.
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Knocking copy 2
From S Africa. This is not allowed in the UK
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Influencing consumers
Current techniques
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Product placement – videogames, movies, TV programmes
Interpersonal influences - pay people to
• order certain drinks in public places
• praise products at parties/events
Are these really effective? Do you buy because James Bond does? Or
because Brad Pitt does? Or because your next door neighbour does?
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Advertising and Business
• Advertising must be justified by business
• TV programme rely on adverts
• Sports coverage rely on adverts
– FI racing
– Premiership football
• If banned then will programmes be made?
• Will OFCOM 2010 policy change on product
placement help?
• If watersheds, then will sports events be retimed?
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Business Effectiveness
• Advertising must be justified for businesses
• Does there need to be dialogue i.e. interactive
communication?
• Is personal communication required for some
customers - salesforce (telesales, field force)?
• What is the actual cost of the message?
• How long does it take to work?
• Does it need tweaking?
Need process to calculate costs and to track &
control campaigns
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Marcomms Budget
How Much?
Affordable
method
Percentage of
sales method
METHODS FOR
BUDGETING
Competitive
parity method
PROMOTION
Objective and task
method
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Building the elements
• Need to consider elements such as:
– The message
– The desired source of influence
– The medium
• Need to integrate multi-media approach (see
earlier)
• Consider Emirates & sponsorship of Arsenal
• Is it only Arsenal fans as the target?
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Sources of Influence
Personal
(two-way)
Mass Media
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Marketer
Dominated
Non-Marketer Dominated
Salespeople
family, friends, neighbours,
opinion leaders,
Low
advertising, sales
news, critiques/reviews,
promotion, publicity, external endorsements, cultural
special events
heroes, clubs/organizations
Reach
Low
High
Credibility
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Scheduling
• Communications need to be co-ordinated with the
rest of the marketing activity e.g.
– Product availability
– May wish to coincide with related events eg
• Robinsons drinks and Wimbledon
• Turkeys at Christmas
– Sometimes industry timetables e.g. major trade
shows
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Advertising
Medium
Includes:
– TV
– newspapers
– magazines & periodicals
– cinema
– radio
– billboards & posters
– other media
• eg buses, taxis, petrol
pumps, games
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Recent developments
• Online advertising
– Can be image on page, or paid link
– But consider Facebook and concerns over adverts
– Consider Second Life placement
• Contextual advertising
– targets users based on keywords in message (email, text)
– Exploration of shop or mall based adverts/offers mobile tele recognised & message sent
BUT EC DIRECTIVES ON COOKIES & USE OF
PERSONAL DATA (e.g Facebook)
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Recent Developments
• Permission-based i.e tick the box
– Generates more response than mass marketing
• Viral marketing - exploits social networks
– Uses funny clips, games,messages (text or e-mail)
– ‘satisfied’ customers circulate e.g. Old Spice adverts
• Guerilla marketing
– ‘ambushing potential customers with promotional
content in unexpected places’
• in 2001, IBM painted “Peace loves Linux” on pavements in
San Francisco & Chicago
• In June 2010 Dutch brewery (Bavaria) used orange miniskirted women at World cup game
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Recent developments
• Paying customers to ‘check in’
• Quidco, a cashback and voucher site released a mobile
phone app in June 2011
• Customers check-in on their phone while in-store - 25p
for carphone Warehouse; 20p for Halfords; 15p for
Majestic Wine
• Register a card with Quidco and also get cashback in
Debenhams, Cineworld, Austin Reed
• Other sites with phone apps- MyVouchercodes; Petrol
Prices
• Tescos & Sainsburys offer apps where your phone
becomes the Clubcard or NectarCard
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Selecting Advertising Media
Key factors
• Characteristics of target audience
– Media usage behaviour, exposure
• Budget
• Creative constraints
– Best presentation of the message eg visuals, colour
• Timing
– Seasonality of offering; cost of media at different times
• Reach and frequency
– How wide message needs to be spread, & how often
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Example Of Press Costs
The media fix their advertising rates according to the size of their
audience and its age and social profiles:
• Daily Mail full page colour position not fixed £46- 50K
(4.6m readers - 53% women;63% >55; 63% ABC1)
• Daily Telegraph full page colour
£59K (Page 1 £68k)
(1.9m readers – 56% men; 59% >55; 59% AB adults)
• Guardian full page colour )mono)
£18k (£11.4m)
(1m readers- 47%women; 49% <45; 88% ABC1)
• Guardian Inserts 16 pages loose weekdays £50/100
• The Sun full page colour Mon-Fri
£40-43k*
(7.2m readers – 59% men; 53% 15-44; 87% C1C2DE adults)
www.nmauk.co.uk for facts & figures
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Examples of Media costs
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Posters(48 sheet) £1k month (96sheet) £2k month
Poster (backlit 96 sheet) £2k per week
Advan £6k p.m.; trailer £1.3kpm;Postabike £6k pm
Leaflets full Colour A4 £43/1000
Cinemas (London 530 screens) £3.5K per 30 seconds
per day ( 5secs upwards for slots)
• Virgin FM (London) 30sec spot, drivetime £0.5K;
minimum spend £3k per month
• Radio cost is evaluated as Cost Per Thousand listeners (
verified by RAJAR)
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Example of TV Costs
ITV1 – varies by time of day, viewing figures (TeleVision
Ratings), no. of advertisers, time of year, event
Sell in 10 sec units but most common 30 sec advert
(single)
• 11 am 2.5TVR (2.5% of all adults)
£5,020
• 18.45 (7TVRs)
£24,667
• 19.30 Coronation St (26 TVRs)
£59,549
• ITV2 2 spots per day (26.2 TVR)
£45,000
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Designing an Advert
Unique Selling
Proposition
Humorous
Appeals
Sex Appeals
Comparative
Advertising
Advertising
Appeals
Fear Appeals
Testimonial
Lifestyle
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Demonstration
Slice-of-Life
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Treatment
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Treatment 2
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Treatment 3
Does sex sell?
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Low Involvement Treatment
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Low Involvement Treatment 2
Analyse this - what is the message and does it work?
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Parisian Love
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Parisian Love
• Consider the Google advert
– Content
– Structure
– Format
– Medium
• Is it an effective advert?
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TARGETING ADVERTS
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Wassup
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Wassup again
Why would you do this?
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PROMOTION THROUGH A
SPOKESPERSON
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Spokesperson factors
 Credibility
 source’s perceived trustworthiness, expertise, objectivity.
 however expert comprises believability by appearing in ads
(hired-gun).
 Attractiveness
 refers to the source’s perceived social value.
 physical appearance, personality, or social status; or
similarity to the receiver.
 Celebrity
 athletes, musicians, movie stars, comedians
 “Q rating” of a celebrity: consumers’ level of familiarity and
rating of consumers attitude towards person.
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Spokesperson
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Spokesperson
• Consider the new Old Spice adverts
• Tied into campaign of response to
questions by twitter, Facebook etc
• ‘face’ is an ex US footballer who admits to
using a false voice on the advert
• Is the ‘silliness’ enough to establish him as
an actor not spokesperson?
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Spokesperson factors
• Jamie Oliver & Sainsburys
– Backlash from school food campaign
• Wayne Rooney & Nike
– Metacarpal injuries; private life revelations
• Tiger Woods
– High profile divorce
• “Lost in Translation” - geographical limitations
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PROMOTIONS
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Consumer Promotions
Attracting Consumers
With Price Breaks
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Attention-Getting
Consumer Promotions
Coupons
Contests
Price Deals
Sweepstakes
Refunds
Premiums
Rebates
Sampling
Special Packs
Point-of-Purchase Promotion
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PUBLIC RELATIONS
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Public Relations
Build good relations with company’s ‘publics’ by:
– Obtaining favourable publicity
– Building a good corporate image
– Heading off unfavourable rumours etc
• Press interviews / releases
• Special events / stunts
• Visits to the firm
– e.g. Sellafield
• Sponsorship
• Community projects
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Video films
Shareholder reports
Corporate identity materials
Training courses
In-house publications
Conference appearance
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Objectives of Public Relations
Introducing New Products to
Manufacturers
Introducing New Products to
Consumers
Influencing Government
Legislation
Enhancing the Image of a City,
Region, or Country
Calling Attention to a Firm’s
Involvement with the Community
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Emerging Issues
see OFCOM 2011 report
• Average 4 hrs daily but 14% of TV watching is timeshifted
• VCR/DVR allow TV viewers to skip adverts - so is TV
advertising worthwhile?
• Teenagers increased use of smartphones means less
TV watching
• TV and radio now accessed through internet as well
• Radio listening hours dropping
– but 91.6% of adults listen (just for less time)
• Online advertising spend in 2010 was £4bn (26% of all
advertising)
• TV advertising spend in 2010 was £5.2bn
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Emerging issues 2
• Could viral advertising etc be less
acceptable if firms seem to exploit it e.g.
Cadburys & online campaign for Wispa
bars; buzz vs hype (viral)
• Governments increasing control of adverts
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Summary
We have explored:
• The marketing communications process
• Types of marcomms
• The relative cost of types of marcomms
• Strengths of each type of marcomm
• Barriers to effective communication
• Adverse perceptions of adverts
• Increasing legislative control of marcomms
• Key issues in effective communication
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