Transcript Foundations of Marketing

of
MARKETING
Chapter
18
Marketing
Communications
Strategy
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Chapter
18
Objectives
1.
2.
18-1
Explain the concept of the marketing communications mix.
Describe the marketing communications mix as part of the
marketing mix.
3.
Elaborate on the importance of the integrated marketing
communications concept.
4.
Outline a theoretical mode of the communications process.
5.
Show how various marketing communications must conform to
this model in order to be effective.
6.
Explain and contrast pulling and pushing marketing
communications strategies.
7.
Discuss the appropriateness of different types of marketing
communications objectives.
8.
Explain the concept of a marketing communications budget.
9.
Discuss the appropriateness of different types of marketing
communications budgets.
10.
Discuss marketing communications in the light of some public
criticisms.
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Chapter
18
Marketing Communications
• All activities and messages inform,
persuade, and influence the consumer
in making a purchase decision.
18-2
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Chapter
18
Figure 18.1
Integrating the Marketing Communications
Plan into the Total Marketing Mix
Personal Selling
Combined with
Marketing
Manager
Sets goals
&
objectives
Integrated
marketing
communications
strategy
Other aspects of the
marketing program:
Product Distribution Pricing
strategy strategy
strategy
Produces
Utility for
Consumer
Nonpersonal Selling
Feedback
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Marketing Communications Strategy
Chapter
18
Integrated Marketing
Communications (IMC)
• A comprehensive marketing
communications plan that takes into
consideration all the communication
disciplines being used and combines
them to provide clarity, consistency,
and maximum communications impact.
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Marketing Communications Strategy
Figure 18.3
Chapter
18
The Process of Marketing
Communications
Sender
Marketing
Manager
Transfer Mechanism
Salesperson, print or electronic
Advertising media, direct mail,
internet, public relations channel
Encoding
Sales presentations, ads,
displays, publicity, releases
Noise
Feedback
Advertising research,
field reports, inventory
movements
Response
Attitude change or decision
Decoding
Customer/receiver
Interests message
18-5
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Marketing Communications Strategy
Chapter
18
Table 18.1
Examples of Marketing Communications
TYPE OF
PROMOTION
TRANSFER
MECHANISM
DECODING BY
RECEIVER
RESPONSE
SENDER
ENCODING
Personal
selling
Canon Office
Equipment
Sales
presentation
on new model
office copier
Canon sales
representative
Office manager Order placed
and employees Canon copier
in local firm
discuss Canon
sales presentation
and those of competing
suppliers
Two-for-one
coupon(sales
promotion)
Wendy's
Hamburgers
Wendy's
marketing
department and
advertising
agency
Coupon inserted Newspaper
in weekend
reader sees
newspaper
coupon for
hamburger
and saves it
Hamburgers
purchased by
consumers using
the coupon
Information that
customers are
reacting positively
to the message
Television
advertising
Movie producer
Advertisement
for a new movie
is developed by
the producer's
advertising
agency
Network
television during
programs with
high percentage
of viewers in
target market
Small number
of movie tickets
purchased
Communication
failed to interest
and motivate the
target market
Audience sees
ad but few
decide to go to
the movie
FEEDBACK
Information that
for customers are
reacting positively
to the message
18-6
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Chapter
18
Marketing Communications Mix
• The blend of personal selling and
nonpersonal communications
(including advertising, sales promotion,
public relations, sponsorship
marketing, and point-of-purchase
communications) by marketers in an
attempt to accomplish information and
persuasion objectives.
18-7
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Figure 18.4
Chapter
18
The Marketing and Marketing
Communications Mix
Marketing Mix
Product
Price
Distribution
Marketing communications
Marketing Communications Mix
Personal selling
Nonpersonal selling
• Advertising
• Sales promotion
• Point-of-purchase communications
• Public relations
• Sponsorship marketing
• Publicity
18-8
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Marketing Communications Strategy
Chapter
18
Personal Selling
• A seller’s promotional presentation
conducted on a person-to-person basis
with the buyer.
18-9
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Marketing Communications Strategy
Chapter
18
Nonpersonal Communication (1 of 3)
• Advertising
Paid nonpersonal communication through
various media by business firms, nonprofit
organizations, and individuals who are in
some way identified with the advertising
message and who hope to inform or
persuade members of a particular audience.
18-10a
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Marketing Communications Strategy
Chapter
18
Nonpersonal Communication (2 of 3)
• Sales Promotion
Those marketing activities, other than
personal selling, mass media advertising,
and publicity hat stimulate consumer
purchasing and dealer effectiveness.
• Public Relations
A firm’s effort to create favourable attention
and word-of-mouth.
18-10b
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Marketing Communications Strategy
Chapter
18
Nonpersonal Communication (3 of 3)
• Sponsorship Marketing
The practice of promoting the interests of a
company by associating the company or a
brand with a specific event.
• Point-of-Purchase Communications
Materials designed to influence buying
decisions at the point of purchase.
18-10c
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Marketing Communications Strategy
Chapter
18
Table 18.2
Factors That Influence the Marketing Communications Mix
FACTOR
EMPHASIS ON
Personal Selling
Advertising
Objectives of the
Marketing Plan
Affects all decisions in the
mix
Actions of Competitors
Decide whether to match
competitors and/or to
develop a different mix
Nature of the Market
Number of buyers
Geographic concentration
Type of customer
Limited number
Concentrated
Business purchaser
Large number
Dispersed
Ultimate consumer
Nature of the Product
Complexity
Service requirements
Type of good
Use of trade-ins
Custom-made, complex
Considerable
Business
Trade-ins common
Standardized
Minimal
Consumer
Trade-ins uncommon
Stage in the Product
Life Cycle
Introductory and early
growth stages
Latter part of growth
stage and maturity and
early decline stages
Price
High unit value
Low unit value
Funds Available
Affects all decisions in the mix
18-11
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Marketing Communications Strategy
Chapter
18
Pulling Strategy
• A promotional effort by the seller to
stimulate final-user demand, which
then exerts pressure on the distribution
channel.
18-12
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Marketing Communications Strategy
Chapter
18
Pushing Strategy
• The promotion of the product first to
the members of the marketing channel,
who then participate in its promotion to
the final user.
18-13
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Marketing Communications Strategy
Figure 18.5
Chapter
18
Relative Importance of Advertising
and Selling
Relative Importance
Selling
Advertising
Pre-transactional
18-14
Transactional
Post-Transactional
Source: Harold C. Cash and W.J.E. Crissey, “The Salesman’s Role in Marketing,” The Psychology of Selling, Vol. 12 (New York:
Personnel Development Associates).
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Figure 18.6
Chapter
18
Promotion Can Help Marketers
Achieve Demand Objectives
Price
Demand
objective
for the
product
2
Existing
demand for
a product
1
Quantity
18-15
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Marketing Communications Strategy
Chapter
18
Figure 18.7
Product Differentiation
Price
Differentiated
demand
Homogeneous
demand
Quantity
18-16
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Marketing Communications Strategy
Figure 18.8
Chapter
18
Promotion Can Accentuate the
Value of the Product
Price
Less responsive to
price differences
More responsive to
price differences
D1
D2
Quantity
18-17
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Marketing Communications Strategy
Chapter
18
Figure 18.9
Elements of Advertising Planning
Research Inputs
• Consumer research
• Product research
• Market analysis
• Consumer situation
Strategic Decisions
• Setting objectives
• Defining target markets
• Determining advertising budget
deciding media strategy
•Coordinating with other
marketing factors
Tactical Execution
• Establishing controls
• Writing and producing ads
and commercials
• Selecting and scheduling
media vehicles
18-18
Feedback
Taking into
account
constraints and
uncontrollable
influences
Making evaluations and
adjustments
Measuring the effectiveness of
advertising
Market
Impact
Source: Excerpt from advertising: Its Role in Modern Marketing, 5th ed., by S. Watson Dunn and Arnold M. Barban, p. 202. Copyright © 1982.
Reprinted with permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800-730-2215.
Copyright © 2003 by Nelson, a division of Thomson Canada Limited.
Marketing Communications Strategy
Chapter
18
How Much Should be Spent on
Marketing Communications?
•
•
•
•
Percentage of Sales
Fixed Sum per Unit
Meet Competition
Task-Objective Method
18-19
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Marketing Communications Strategy
Chapter
18
Task-Objective Method
• A sequential approach to allocating
marketing communications budgets
that involves two steps:
1)defining the realistic communication goals the
firm wants the marketing communications mix to
accomplish, and
2)determining the amount and type of marketing
communications activity required to accomplish
each of these objectives.
18-20
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Marketing Communications Strategy
Chapter
18
Direct-Sales Results Test
• A test that attempts to ascertain for
each dollar of promotional outlay the
corresponding increase in revenue.
18-21
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Marketing Communications Strategy
Chapter
18
The Value of Marketing
Communications
• Business and Nonprofit Enterprise
Importance
• Economic Importance
• Social Importance
18-22
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