Transcript .ESSENTIAS OF PLANNING - International University College

PRINCIPLES OF MARKETING-A2
Topics 09-10
Promotion:
1. Marketing Communication Theory
2. Marketing Promotional Tools
Assoc. Prof. A. Popissakov
2009-2010
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Topic Contents
Communication Theory
1. The Communication Process
2. The Promotional Mix
3. Communication Planning Model
– Communication objectives
– Communication strategies
4. Models of Marketing Involvement
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Some Communication problems
 in society = government do things right, people
do not believe.
 in business = poor communication costs money,
time and opportunities.
 in family = the gap between generations,
 in school = clever teacher vs. lazy and stupid students
 in university = ignorance vs. proper academic
scholarship (The “P” word),
 in love = “I love you more than you do”.etc.
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Six Questions in Communication
Process (“6 Qs”)
 Who? What? Why? Where? When? How?
 Whatever communication task you are
undertaking, asking these six simple questions
before you start will give your communication a
better chance of success and make the task easier
E.g. What is your name?
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2. The Communication Process
Sender
Who?
Ideation
What?
N o
Action
Do?Not do?
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Analyzing
What?
Encoding
How?
i
s
Media
channels
Where/When
e
Decoding
How?
Receiver
Who?
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“6 Qs” - Who?
 Who? - The Sender and Receiver
 Sender is me.
 Who exactly is the receiver, my audience?
 What sort of person is he? Personality?
Education? Age? Status? Social status?
Nationality? ....
 How is he likely to react to my message?
 What does he know already about the subject of
my message? A lot? Not much? Nothing?
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Less/more than I do?, etc.
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“6 Qs” - What?
 What? = subject = Ideation
 What exactly do I want to say?
 What do I need to say?
 What does he need to know?
 What information can I omit?
 What information must I include?
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“6 Qs” - How? Encoding/Decoding
 How? = Encoding/Decoding
 The process of organizing the ideas into series of
symbols, words, gestures, specially designed to
communicate with particular receiver.
 How am I going to communicate my message?
With words? Or pictures? Or both? Which words?
Which pictures?
 How the receiver will decoded what I have
encoded in my massage?
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“6 CQs” - How? Encoding/Decoding
 E.g.
 Student (encoding massage) to Teacher:
 I am late with my report, but I shell submit it on
Friday.
 Teacher(decoding massage from Student)
 This guy is lazy and arrogant (not responsible,
violation of due date, just informing, no
appology).
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“6 CQs” - How? Encoding/Decoding
 Student (encoding): I am ready with my report,
but my dog ate it just before my leaving for school.
Will you give me a chance to rewrite it and submit
on Friday.
 Teacher(decoding): This story may be true or not,
but this guy seems courteous, let give him a
chance.
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“6 Qs” - Where? When?
Where? When? = (place and context)
 Where will he be when he receives my message?
 At what point in the total matter does my message
come?
 Am I replying to something he has raised? Or will
my message represent the first he has heard about
this topic/problem/issue?
 Is the subject of my message the cause of
controversy between us? Is the atmosphere
strained or cordial?
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“6 CQs” - Feedback
 Feedback occurs when the receiver send the
message back to the sender.
 It restarts the communication process.
 The receiver becomes the sender by beginning
with IDEATION, ENCODING and so on.
 If sending the original message results in two-way
communication this process can go though many
cycles.
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Marketing Communication Gap
Communication process An equation can be developed,
What do we want our customers to know
- What they already know
------------------------------------------------------= Gap (to be filled by communication)
What if the “Gap” > 0 or < 0?
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The Promotional “P”
Promotion is WHAT and HOW marketers
communicate with their target markets.








I make bicycles
“Nike” is the brand name
Price from $100-$500
Unisex product
Quality is higher than price
Find them in Metro, Billa …
10% Christmas sale
etc. ……..
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Promotional
Communication
messages
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The promotional mix
The direct way in which organisations attempt to
communicate with various target audiences. It
consists of five main elements
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Changing promotional mix for
consumer or B2B markets
PR
Direct marketing
Sales promotion
Advertising
PR
Direct marketing
Sales promotion
PR
Direct marketing
Sales promotion
Advertising
Personal selling
Capital
equipments
Personal selling
Raw materials
Services
B2B goods
Home
improvements
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Advertising
Personal selling
Consumables
Consumer goods
Cars
White
goods
Brown
goods
Cloths
FMCG
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Communications Planning Model
(CPM)
Initial step (3 in 1)
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(CPM) Situation Analysis (1):
The Target Market
Knowledge of the target market is an essential
prerequisite for communication strategy.
 Who are our customers?
 Are they
– defindable? reachable? sizable?…
 B2B or consumer market?
E.g. B2B markets depend on personal selling,
while for consumer markets advertising and
promotions dominate.
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(CPM) Situation Analysis (1):
Push or pull strategy
Flow of product
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Flow of infomation
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(CPM) Situation Analysis (2):
The Product
How the promotional mix is affected by the type of
product and the product life cycle.
Type of product
 B2B and consumer goods
It is simplistic to believe that personal selling is
effective only for B2B products, while all
consumer goods require advertising. Both types of
product can benefit from any of the various
elements of the promotional mix.
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(CPM) Situation Analysis (2):
The PLC
Product life cycle
The product life cycle stages
 Introduction
 Growth
 Mature
 Decline
Since marketing objectives change as a
product matures, the communication
objectives and messages also change.
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(CPM) Situation Analysis (3):
The Environment
Key environmental factors affect communication
strategies
 Social and cultural acceptance of product/services.
 Customer's changing attitudes and lifestyle,
(danger of stereotyping through mass
communication efforts).
 Political and regulatory environment
 Competitors
 etc.
STEP Analysis
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Communications Planning Model
(CPM) (continued)
Situation analysis 1,2,3, help marketers to set
the background influences of the CPM.
Further Steps in the CPM
 Define the Objectives
 Divise Strategies
 Decide on Budgeting
 Implementation and Evaluation of CPM
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CPM Step 3.
Communication Strategies
THREE logical and sequential steps in
marketing communication
A. Informing
B. Persuading
C. Reinforcing
These objectives must guide the customer from the
stage of awareness to the real buying and postsales reassure.
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A. Informing
Emitting relevant information about market
product/services:
 they do exist
 what they do
 what are their features
 where can be obtained
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B. Persuading
Creation of favourable attitude about market
products/services:
 favour one brand (product) over the other
 favour one view point over the other
 create a feeling that this product is what
you need.
 create a feeling that this product is your
best choice.
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C. Reinforcing
Building support/loyalty to a point of view of
purchasing
 Ensuring a good climate for future sales.
 Transforming a buyer by chance user to a
heavy user
 Motivation of customers to be your
advertising assistants (Word-of-mouth)
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Models of Marketing Involvement
Generally all models are based on
Knowledge, Attitude and Behaviour
Knowledge
Information stage
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Atitude
Behaviour
Persuasion stage
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Models of Marketing Involvement
AIDA Model - Strong’s (1925)
Knowledge
Attention
Get attention
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Atitude
Interest
Provoke
interest
Behaviour
Desire
Action
Arose desire
Buy / not buy
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Models of Marketing Involvement
Six stage Lavidge & Steiner Model
Knowledge
Awareness
Knowledge
Linking
Atitude
Preference
Conviction
Behaviour
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Purchasing
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Models of Marketing Involvement
DAGNAR Study of Russel Colley
(a list of 50 possible advertising objectives)
Knowledge
Awareness
Comprehension
Atitude
Conviction
Behaviour
Action
Defining Advertising Goals for Measured Advertising Results
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CPM – Step 4
Budgeting (self actinity)
Two main methods of budget setting:
 Judgemental budget setting:
– Arbitrary budgets,
– Affordable method,
– Percentage of past sales method,
– Percentage of future sales.
 Data-based budget setting:
– Competitive parity,
– Objective and task budgeting.
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Brassington
and
Pettit (2005)
pp. 279-280
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CPM – Step 5
Implementation of the Plan
Planning helps marketers to:
 establish priorities,
 allocate responsibilities,
 ensure a fully integrated, consistent
approach that maximises the benefits gained
from all elements of the communication
mix.
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CPM – Step 6
Evaluation of Plan
The final check-list of whole planning model :
 What return on investment did we achieve?
 What increase in sales revenue and from
where and why?
 What part of the “Communication GAP”
did we filled?
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The End
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