Transcript Marketing Communication Mix

Integrated Marketing
Communications
Chapter 8
Dr. Inas A. Hamid
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Do you think
communication is
important to
organizations? Why?
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Most organizations , whether they
operate in the private, public, not-forprofit or other sectors, all need to
communicate with their customers and
publics. Why?
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Strategic Goals of Marketing
Communication
Goals of MarCom
Build positive
images
Identify prospects
Build channel
relationships
Create awareness
Retain customers
DRIP
Differentiate
Remind
inform
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Persuade
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Create awareness: we can not buy a product if
we are not aware of it, especially a new product
and brand. Using MarCom is important in
creating awareness in order to stimulate trial
purchases.
Build positive images: Positive images can
create value for customers by adding meaning to
products.
Identify prospects: modern technology makes
information gathering much more practical. Web
sites are used to gather information about
prospects. Supermarkets use POS terminals.
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Build channel relationships: when producers
use MarCom to generate awareness, they are
helping the retailers who carry the product.
Producers may also arrange with retailers to
distribute coupons, set up special displays, or hold
promotional events in their stores.
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Retain customers: it costs far more to attract a
new customer than to retain an existing
customer. MarCom can support efforts to create
value for existing customers. They can provide
customers with information about product usage
and new products being developed. They can
also gather information from them about what
they want as well as their experiences using the
products.
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Marketing communication
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Marketing communication is: all
forms of communication between an
organization and its customers and
potential customers, that facilitate
exchanges by establishing shared
meaning with the brand’s customers
or clients.
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MarCom gets the bulk of the budget in most
organizations.
Traditionally termed promotion.
It is a part of the 4Ps marketing mix (product,
price and place).
It aims at facilitating the process of exchange.
The organizations choose the target market
and avoid communicating with those that are
not commercially interesting.
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The Promotional Mix
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The promotional mix concept refers
to the combination and types of
communication the organization
puts forth during a specified period.
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The Promotional Mix
Public
Relations
Packaging
Advertising
Word
Of
mouth
Sponsorship
Consumer
audiences
Channel
Audiences
All
Stakeholders
Audiences
Exhibitions
Internal
Marketing
Websites
Sales
Promotion
Branding
Personal
Selling
Branding
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Primary and secondary tools
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In any campaign some forms of
media will play a primary role,
whilst others will support these in a
secondary role.
The choice of primary promotion
tool can also be influenced by the
stage of the product life cycle
(PLC).
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Product Life Cycle (PLC)
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1. Introduction
At this stage, the primary need is to secure
trade acceptance and then build public
awareness. Ads can be the best at this stage,
they can be used as primary tools.
2. Growth
During growth, promotional activity is used
competitively to build market share.
Customers are normally willing to buy, having
been made aware, but their problem becomes
one of brand choice. Marketing communications
should therefore be used to differentiate and
clearly position product such that it represents
significant value for the customer.
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3. Maturity
The primarily characteristic of this stage is
that there is little or no growth. The battle
therefore is to retain customers’ loyalty,
and to do these sales promotions are
often used, to encourage trial by non-users
of a brand and as a reward for current
users.
4. Decline
As sales start to decline it is normal practice
to withdraw a great deal of promotion
support. Direct marketing and a little well
targeted advertising to remind and
reassure brand loyal is the most commonly
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used.
Marketing Communication
Strategies
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When deciding which communication
strategy to use, the marketer should
identify three main types of audience:
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The end-user of the product, who may be an
individual consumer or a business.
Intermediaries, who operate between the
producer and the end-user.
Stakeholders, who may have no direct
interest in the product but who have an
interest in the organization itself.
Each audience requires a different
communication strategy.
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Push versus Pull Marketing
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Pull strategy: is aimed at the end-user. It seeks to
encourage demand of the target audience from the
distributors , so that products are pulled by them through the
marketing chain.
Marketing Communications activities
producer
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Request
products
Resellers
Request
products
End Users
This demand may be for products directly, but an individual
may also pull for information.
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Many factors will determine the appropriate
mix, including promotional objectives, the type
of end-user, the nature of the market, and the
nature of the product.
The most important pull strategy tools are likely
to be:
 B-2-B markets: personal selling, Exhibitions,
Website , marketing PR and direct mail.
 Business -2-consumer markets: Ads,
Personal selling, Sales promotion, Direct
marketing and Websites.
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Push strategy is targeted at intermediaries
(wholesalers, retailers, dealers and agents).
 Push activities aim to persuade the intermediary
to push the product along the marketing chain by
stocking it, displaying it, or advocating it.
Producer
MarCom
Intermediaries
MarCom
End Users
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Personal selling will be vital.
Supported by trade ads and sales promotions.
Extranets are playing increasingly important
role in communications between business.
Although push and pull strategies have
different objectives, it is essential to take an
integrated approach.
 Consistent messages must be
communicated.
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Profile strategy is aimed at stakeholders (who
may include intermediaries and end-users), and
seeks to influence their perceptions of the
organization.
 Communications might be about the business's
financial performance, ethical stance or
community involvement.
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The marketing Communication Mix
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1- Advertising seeks to promote the products
by means of printed and electronic media , so
messages can reach large numbers of people
and make them aware about the products.
Objectives of Advertising
Creating awareness
Aiding comprehension
Developing convection
Encourage ordering
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Advertising is justified on the basis of the
revenue it produces. Revenue may refer to
either sales or profits.
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After selecting the media mix Advertising
appeals should be decided.
Appeals refer to the approach used to attract
the attention of consumers and / or to influence
their feelings toward the product, service, or
cause.
Informational / Rational Appeals emphasize
features of a product or service and / or the
benefits or reasons for owning or using a
particular brand. The content of these messages
emphasizes facts, learning, and the logic of
persuasion.
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BMW uses
a news appeal
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Emotional Appeals relate to the customers,
social and / or psychological needs for
purchasing a product or service.
 Ads using safety, security, fear, love,
affection, happiness, joy, excitement and
other appeals that can affect the emotions of
consumers and put them in a favorable frame
of mind.
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A Kelogg serial uses a feature appeal
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Volvo car advertising uses an
emotional appeal (love & safety),
whereby it is using the “ Who would
you give a Volvo to?” theme to
enhance consumer’s attachment to
the brand, and make the experience of
using the product warmer.
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2- Sales promotion is a range of tactical
marketing techniques, to add extra value or
incentive to a product or service, in order to
achieve a specific sales and marketing objective.
Examples of sales promotion activities that aimed
at final consumers:
price cuts.
Coupons.
Competitions.
free samples.
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Also sales promotion can be directed
towards middlemen, such as;
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Price deals
Calendars
Gifts
Catalogs
videos
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The popularity of sales promotion has
been increasing because of two major
reasons:
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Increased pressure on management for
short term results.
The emergence the emergence of new
purchase tracking technology.
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Discount
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shows a premium offer is used to provide extra incentive to
purchase a product.
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Advantages
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Obtaining trial and purchase: One of the
most important uses of sales promotion
techniques is to encourage consumers to try a
new product or service. Also to encourage
people who try the brand to repurchase it.
Increasing consumption of an established
brand to attract nonusers of the product
category or users of a competing brand.
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Defending current customers to retain its
current customer base.
Targeting a specific market segment. For
example, clothing and school supply companies
targeting children and teens run promotions in
late summer when most of the back-to-school
shopping occurs.
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Disadvantages.
 When the extra promotional incentive is not
available, they switch to another brand.
 Can not convene buyers to purchase an
unacceptable products
 If the promotion is successful and leads to a
differential advantage, competitors may quickly
copy it.
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3- Public Relations is a non-personal form of
communication that tries to influence the overall
image of the organization and its products and
services among its various stakeholder groups.
 Traditionally, PR is viewed as a non-marketing
function whose primary responsibility is to
maintain mutually beneficial relationships
between the organization and its publics.
 Now, the new role of PR is considered primarily
a marketing communications function and Some
researches have referred to PR activities
designed to support marketing objectives as
marketing public relations (MPR) functions.
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Activities that the PR practitioner may carry out
at some time.
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Arranging News release: An announcement regarding
changes in the organization or the product line,
sometimes called a press release.
Analyzing future trends and predicting their
consequences.
Research into public opinion, attitudes and expectations
and advising on action.
Establishing and maintaining two-way
communication.
Preventing conflict and misunderstandings.
Promoting mutual respect and social responsibility
Harmonizing the private and public interest
Attracting good personnel and reducing labor
turnover.
Sponsorship. Associating the organization's name with
events ,programs, or even people..
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Advantages:
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Credibility. Publics do not realize the
organization either directly or indirectly paid
for them- they tend to have more credibility.
For example, an article in newspapers or
magazines discussing the virtues of aspirin
may be perceived as much more credible
than an ad for a particular brand of aspirin.
Cost. The cost of PR is low.
Avoidance of clutter. Because they are
typically perceived as news items, PR
messages are not subject to the clutter of
ads.
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Ability to reach specific groups. Because
some products appeal to only small market
segments, it is not feasible to engage in
advertising and / or promotions to reach them.
If the firm does not have the financial
capabilities to engage in promotional
expenditures, the best way to communicate to
these groups is through public relations.
Image building. Effective PR helps to
develop a positive image for the organization.
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Disadvantages
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The receiver may not make the connection to
the source. Many firms, PR efforts are never
associated with their sponsors in the public
mind.
a lack of coordination with the marketing
department.
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