Transcript Marketing Communications

Overview of Marketing
Communications Process and
Tools
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TMT, MKT 337: Promotional Management
Lecture Objectives
 Introduce the module
 Examine process of marketing communications
 Consider role of marketing communications in
strategic mix
 Discuss range of tools available
Some Basic Definitions
 Marketing: Management process which
anticipates, identifies and satisfies customer
requirements profitably or effectively
>marketing mix
 Marketing Communications: Use of
communications towards consumers,
customers and prospects with the explicit
purpose of influencing these groups
 Corporate Communications: The
management of communications between an
organisation and all its stakeholders/publics >
sphere of PR
Marketing Communications:
Key Dimensions
 Management process via which an
organisation engages with its various
audiences
 Audiences are encouraged to offer (desired)
behavioural and attitudinal responses
 Understanding of each audience is required to
tailor the marketing communications in terms
of message and tool
 Increasingly an integrated approach is
adopted
Role of Marketing
Communications
DRIP FRAMEWORK
 Differentiate
 Reinforce/Remind
 Inform
 Persuade
Bowersox and Marsh 1989
Differentiation
Remind
Inform
Persuade
Marketing Communication and
the process of Exchange
 Combining 4Ps
 More than 4Ps?
 Process, Political Power and People
 2 different use of marketing Communications:
 Building Brand Values
 Shape Behavior – Call to action
The marketing communications mix
The internet and digital
technologies have
enabled new
interactive forms of
communication, where
the receiver has
greater responsibility
for their part in the
communication process
A traditional model of the marketing
communication mix
Figure 1.1 The tools and position of the marketing communications mix Fill 2009
Figure 1.2 Above-and below-the-line communications Fill 2009
New Tools, New Media
Broadcast advertising (TV/radio)
Print advertising (newspaper/magazine)
Interactive/internet marketing
Website/on-line advertising
Outdoor/billboards
Mobile/Wap
Personal selling
Telemarketing
Packaging
Direct marketing
Publicity/PR
Point of purchase
Product placement
Sales promotion
Word of mouth
Events & sponsorship
Product Placement
Ambient Advertising
Selection Criteria
 Degree of control required over delivery
 Financial resources available (cost)
 Level of credibility
 Ability to deliver message (communications)
 Size and geographic dispersion of target
audiences
Key Characteristics of Tools
ADVERTISING
 Non-personal mass communication
 High reach
 Impact
 High cost
 Low credibility?
 Difficult to measure
Key Characteristics of Tools
SALES PROMOTION
 Used tactically in short term
 Aim is often to increase sales
 High control and measurement
 Moderate cost
 Can be used throughout distribution channel
 Credibility may be questioned
Key Characteristics of Tools
PERSONAL SELLING
 Interpersonal communications tool (two way)
 Instantaneous feedback possible
 Message can be tailored
 High cost
 More suitable where message is complex
Key Characteristics of Tools
DIRECT MARKETING
 Any form of direct response communications
 Targets individual customers (database)
 Can deliver personalised message
 Builds relationships
 Facilitated by technological developments
 Moderate absolute cost but cost per contact high
Key Characteristics of Tools
PUBLIC RELATIONS
 Non-personal
 Wide range of tools available
 High credibility
 Low cost
Figure 1.3 The relative effectiveness of the tools of the marketing communications
mix Fill page 25
Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools
of marketing communications Fill
Major communication tools
Tool
Use
Examples
Advertising
Efficiently gets
message to large
audience
Television and radio commercials and new
paper ads; paid search engine links; product and
company brochures; billboards; transit ads; ads
delivered by cell phone and emails
Sales promotion
Stimulate immediate
purchase; reward
repeat purchase
Samples, coupons, premiums, contests, games,
incentives
Public relations
Build positive image,
strengthen ties with
stakeholders
Event sponsorship, news release, briefings,
speeches and blogs, public appearance
Direct marketing
Reach target
audience, encourage
direct response
Mail, email, telemarketing campaigns, printed
and online catalog, direct response tv and radio
Personal selling
Reach customers one
to one to make sales,
strengthen
relationships
Sales appointment, sales meetings and
presentation, online sales chat help
Figure 2.1 A linear model of communication
Source: Based on Schramm (1955) and Shannon and Weaver (1962).
Features of The Communications
Process
 Sender: company, organisation, brand, CEO, Agency
 Receiver: consumer, customer, public, government,



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intermediary, supplier
Encoding: Use of signals (words, symbols, pictures,
music) to create a message that can be understood
Decoding: Understanding the message as it was
intended
Noise: Cognitive barriers or physical distractions
Realms of understanding: Common ground
between source and receiver
Influences on Marketing Communications
Process
 Increasing volume of messages/Message Clutter
 Literate consumers
 Increasing Competition
 Decline in effectiveness of Advertisement
 Level of product/brand involvement
 Opinion leaders
 Consumer to consumer communications (word of
mouth)
Hierarchy of Effects
 Models (often linear) which describe the step by
step process we go through when exposed to
marketing communications from initial
unawareness to final action.
 There are many theories put forward to explain
how marketing communications affects consumer
behaviour
AIDA
Attention
Interest
Desire
Action