Transcript Slide 1

Lecture 6
Marketing
Communication
Dr. Lucy Ting
[email protected]
Agenda
• Marketing Communications
– Consumer Perspective
• Integrated Marketing Communications
– Definitions
– Characteristics
– Levels of Integration
• Drivers and Barriers
• Communication Mix Tools
– Mass Market Appeal
– Personal Appeal
– Buzz Appeal
Marketing Mix
Product
e.g. Brand
Design
Features
Promotion
e.g. Advertising
Personal Selling
Public Relations
Target
Customers
Intended
Positioning
Price
e.g. List Price
Payment Period
Credit Terms
Place
e.g. Channels
Locations
Assortment
McCarthy, E.J. (1960), Basic
Marketing, Homewood, IL, Irwin
Marketing Communications
(MarCom)
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Advertising
Sales promotions
Sponsorship
Public relations
Point-of-purchase communications
Exhibitions and trade fairs
Direct marketing communications
Personal selling
E-communications
Customer Perspective
• Consumers may be more sensitive
to commonalities and
discrepancies among message
than to the specific MarComs used
to transmit them
• Added value is created in terms of
a faster and better comprehension
of the communication and
integration occurs at the consumer
or perceiver level.
Englis and Solomon (1996), ‘Using Consumption Constellations to Develop
Integrated Communiication Strategies’, Journal of Business Research, 37, 183-191
Marketing Communication
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Factors influence Marketing Communications
1. Changing Consumers
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The availability of information and increased
resistance in mass-market broadcasting
2. Changing Marketing Strategies
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Fragmented market and more personalised marketing
strategies
3. Changes in Technology
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e.g. Internet, Mobile, Ipod, Satellite & Cable
Armstrong and Kotler (2009) Chpt 12
IMC: Mix and Match
• Integrated Marketing Communication
– A planning process designed to assure that all
brand contacts received by a customer or
prospect for a product, service, or
organisation are relevant to that person and
consistent over time
American Marketing Association
IMC: Mix and Match
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Basic Concepts
1. The whole is greater than the sum.
2. Affects brand awareness, by which it
creates, maintains, or strengthens
favourable and unique brand associations.
3. Aims to build strong customer relationships
Communication Mix Tools
Advertising
Internet
Marketing
Exhibitions,
Trade
Shows
Sales
Promotion
Consistent,
Clear and
Compelling
Message
Personal
Selling
Direct
Marketing
Public
Relation
Creating Synergies
• Sales team has easier job when brand is
well-known through advertising or
sponsorship.
• A promotional campaign that is supported
by advertising is more successful.
• Public relations, sponsorship and
advertising can have synergetic effects on
company and brand image.
• Websites have to be supported by off-line
campaigns.
Marketing Mix and IMC
Hutton, J.H. (1996), ‘Integrated Marketing Communication and the Evolution of
Marketing Thought’, Journal of Business Research, 37, 155–62
Integrated Marketing
Communications
Definitions
Integrated Marketing Communication (IMC)
– IMC is a concept of marketing
communications planning that recognises the
added value of a comprehensive plan that
evaluates the strategic roles of a variety of
communication disciplines and combine these
disciplines to provide clarity, consistency, and
maximum communications impact
American Association of Advertising Agencies; Reported in Schultz (1993)
“Integrated Marketing Communications: Maybe Definition is in the Point of View,”
Marketing News, 18 January
Definitions
– IMC is the strategic choice of elements of
marketing communications which will
effectively and economically influence
transactions between an organisation and its
existing and potential customers, clients and
consumers.
Betts et al. (1995), Marketing Communications Strategy, 2nd Edition BPP Publishing
Definitions
– IMC is the concept under which a company
carefully integrates and coordinates its many
communications channels to deliver a clear,
consistent and compelling message about the
organisation and its products
Kotler et al. (1999), Principles of Marketing 2nd European Edition, Prentice Hall
Definitions
– IMC is an organisation’s unified, coordinated
effort to promote a brand concept through the
use of multiple communications tools that
“speak with a single voice.”
Shimp (2000), Advertising, Promotion, and Supplemental Aspects of Integrated
Marketing Communications, 5th Edition, Dryden Press
Definitions
– IMC is a process of managing the customer
relationships that drive brand value. More
specifically, it is a cross-functional process for
creating and nourishing profitable
relationships with customers and stakeholders
by strategically controlling or influencing all
messages sent to these groups and
encouraging data-driven, purposeful dialogue
with them
Duncan (2002), IMC: Using Advertising and Promotion to Build Brands, International
Edition, The McGraw-Hill Companies
Definitions
Integrated Marketing Communication (IMC)
– A planning process designed to assure that all
brand contacts received by a customer or
prospect for a product, service, or
organization are relevant to that person and
consistent over time
American Marketing Association
Characteristics
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Five Essential Elements of IMC
1. The aim to affect behaviour through direct
communication
2. The IMC process should start from customer or
prospects and then work backwards to brand
communicators
3. IMC should use all forms of communication and all
sources of brand or company contacts as
prospective message delivery channels
4. The need for synergy, with coordination helping to
achieve a strong brand image
5. The need to build and strength brand relationships
Shimp (2000), Advertising, Promotion, and Supplemental Aspects of Integrated
Marketing Communications, 5th Edition, Dryden Press
Levels of Integration
Relationship Management Integration
Stakeholder-based Integration
Consumer-Based Integration
Coordinated Integration
Functional Integration
Image Integration
Awareness
Duncan and Caywood (1996), “The Concept, Process and Evolution of Integrated
Marketing Communication,” in Thorson and Moore (eds) Integrated Communication:
Synergy of Pervasive Voices, Lawrence Erlbaum Associates, pp. 13-34
Levels of Integration
Financial and
Strategic Integration
Application of
Information Technology
Redefining the Scope
Tactical Coordination
Schultz and Kitchen (2000), Communicating Globally: An Integrated Marketing
Approach, Palgrave-Macmillan
Key Drivers of Integration
De Pelsmaker and den Bergh (2007)
Barriers of Integration
De Pelsmaker and den Bergh (2007)
Communication Tools
Communication Mix Strategies
• Two basic strategies
– Push Strategy
• Pushing the product through marketing channels to
final consumers
• Personal selling and trade promotion are relatively
emphasised
Marketing
Activities
Producer
Retailers and
Wholesalers
Marketing
Activities
Customers
Communication Mix Strategies
• Two basic strategies
– Pull Strategy
• Producer direct its marketing activities directly to
consumers to induce their demand for the product
• Advertising and promotion are relatively
emphasised
Marketing Activities
Producer
Retailers and
Wholesalers
Customers
Communication Tools
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Mass Appeal
– Tools which aim to reach many prospective
customers at the same time
1. Advertising
2. Sales Promotion
3. Public Relations
Solomon et al. (2008)
Communication Tools
1. Advertising
– It can offers reasons to buy and reach
masses of geographically dispersed buyers
with repeated exposures.
Pros
Cons
• Marketers have control
over what the message will
say, when it will appear and
who is likely to see it
• Often expensive to produce
and distribute
• May have low credibility
and/or be ignored by
audience
Communication Tool
• Advertising Objectives
– Informative Advertising
• To communicate customer value and is used heavily
when introducing a new product
– Persuasive Advertising
• To build brand value and sometimes compare with
competing brands
– Reminder Advertising
• Maintain customer relationships and keep
customers thinking about the product
Communication Tool
• Advertising Media
Medium
TV
Radio
Advantages
•Mass Coverage
•Impact of sight, sound
and motion
•Low cost per exposure
•Attention getting
•Low Cost
•Local Coverage
•Flexible
•High Frequency
Limitations
•Short message life
•High absolute cost
•Clutter
•Fragmentation
•Audio only
•Clutter
•Low attention getting
•Fleeting Messages
Communication Tool
• Advertising Media
Medium
Magazine
Newspaper
Advantages
Limitations
•Well segmented
audience
•Detailed information
•Engaging
•Visual only
•Lack flexibility
•Long lead time
•High coverage
•Low cost
•Timely
•Short lead time
•Short life
•Clutter
•Visual only
•Poor quality
Communication Tool
• Advertising Media
Medium
Outdoor
Advantages
Limitations
•Flexibility
•Little audience
selectivity
•High repeat exposure
•Creative Limitations
•Low Cost
•Low message competition
•Good positional selectivity
Communication Tools
2. Sales Promotion
– It consists of short-term incentives to
encourage purchase or sales of a product or
service
Pros
• Provides incentives to
retailers Builds excitement
•Encourage immediate
purchase and trial of product
•Suits price-sensitive
consumers
Cons
• Short-term emphasis on
immediate sales
•Large number of
competing promotions
Communication Tool
• Sales Promotion Objectives
– Consumer Promotion
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Short-term customer buying
Temporary brand switching
Reinforce positioning strategy
Build long-term customer relationship
– Trade Promotion
• More sales force support for products
• Getting salespeople to sign up new accounts
Communication Tools
3. Public Relations
– To build good relations with the company’s
various publics by obtaining favourable
publicity, building up a good corporate
image, and handling unfavourable rumours.
Pros
• Relatively low cost
•High credibility
Cons
• Lack of control over the
message and no guarantee
that the message will ever
reach the target
•Hart to track the results
Communication Tools
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Personal Appeal
– Tools which aim to communicate with
consumers on a personal, one-to-one level.
1. Personal Selling
2. Direct Marketing
Solomon et al. (2008)
Communication Tools
1. Personal Selling
– Personal presentation by the firm’s sales
force for the purpose of making sales and
building customer relationships
Pros
Cons
• Direct contact with the customer
gives the salesperson the
opportunity to be flexible and
modify the sales message to
coincide with the customer’s needs
•The salesperson can get
immediate feedback from the
customer
• High cost per contact with
customer
•Difficult to ensure consistency of
message when delivered by
different salespersons
•The credibility of sales people
often depends on the quality of
the company’s image
Communication Tools
2. Direct Marketing
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Direct connections with carefully targeted
individual consumers to both obtain and
immediate response and cultivate lasting
customer relationships
Pros
Cons
• Can target specific groups with different
offers
•Results can be easily measured
•Can provide extensive product information
and multiple offers within a single appeal
•Provides a means for collecting information
• Consumers may have
a negative opinion of
some types of direct
marketing
•Costs more per contact
than mass appeals
Communication Tools
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Buzz Appeal
– The new out-of-box tools which aim to
communicate especially with the young
consumers who tend to be cynical about
corporations.
1. Direct Marketing (Digital)
Solomon et al. (2008)