Transcript Chapter 16 - Austin Community College

16
C H A P T E R
An Overview
Of Marketing
Communications
McGraw-Hill/Irwin
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After studying this chapter, you should be able to:
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Discuss the objectives of marketing communications.
Understand the marketing communications mix and its
role.
Explain the key elements of the marketing communications
process.
Discuss the seven steps in the marketing communications
planning process.
Demonstrate awareness of some of the key ethical and
legal issues related to marketing communications.
Bearden Marketing 5th Ed
16-2
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FedEx
FedEx is a household name in the overnight shipping
business, thanks in large part to its 50,000 delivery
vehicles, or rolling billboards as one company executive
describes them.
So when the company pays millions to sponsor sports
events and for naming rights to stadiums, it is not as
interested in increasing exposure for its brand as it is in
cultivating long-term relationships with key customers
and contributing to a positive corporate image over time.
Analysts estimate that for its role in sponsoring the
FedEx Orange Bowl the company receives about $32
million in television exposure, a figure that FedEx
officials discount deeply.
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16-3
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Marketing Communications
Marketing
Communications
Marketing
Communications
Mix
Bearden Marketing 5th Ed
Marketing communications,
sometimes referred to as promotion,
involve marketer initiated techniques
directed to target audiences in an
attempt to influence attitudes and
behaviors.
The marketing communications mix,
sometimes referred to as the promotional
mix, includes: advertising, public
relations, sales promotion, personal
selling, and direct marketing
communications.
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The Roles of Marketing Communications
Reminding
Informing
Persuading
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The Marketing Communication Mix
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16-6
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The Marketing Communication Process
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16-7
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Marketing Communications Planning
There are seven key tasks in marketing
communications planning: marketing plan review;
situation analysis; communications process analysis;
budget development; program development; integration
and implementation of the plan; and monitoring,
evaluating, and controlling the marketing
communications program.
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16-8
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Situation Analysis
The
Competitive
Environment
Marketing
Mix
Considerations
The
Economic
Environment
The
Social
Environment
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16-9
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Marketing Communication Objectives
Bearden Marketing 5th Ed
16-10
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Budget Development
Influences
Budgeting Methods
 Size of the company
 Financial resources
 Type of business
 Market dispersion
 Industry growth rate
 Position in the
 Percentage of Sales
 Competitive Parity
 All-You-Can-Afford
 Objective-Task
marketplace
Bearden Marketing 5th Ed
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Advertising Expenditures
By Industry
(% of sales)
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Marketing Communications
Explicit
Implicit
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Explicit communications convey a
distinct, clearly stated message through
personal selling, advertising, public
relations, sales promotion, direct
marketing, or some combination of these
methods.
Implicit communications are messages
connoted by the product itself, its price,
or the places it is sold.
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Strategies
Push
Strategy
Involves convincing intermediary
channel members to “push” the
product through the channel to
the ultimate consumer.
Pull
Strategy
Attempts to get consumers to “pull”
the product from the manufacturing
company through the marketing
channel.
Combination
Strategy
Aims marketing communications at
both resellers and ultimate
consumers.
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16-14
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Monitoring, Evaluating, and Controlling
Examples:
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Monitor sales promotion by the number of coupons
redeemed.
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Measure the effectiveness of a new personal selling
strategy by looking at the number of new accounts
opened.
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A firm might run tests to see if consumers noticed the ad.
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Review sales results and attribute fluctuations in sales
volume to MC.
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16-15
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Ethical and Legal Considerations
Advertising
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Using deceptive advertising
Reinforcing unfavorable ethnic/racial/sex stereotypes
Encouraging materialism and excessive consumption
Public relations
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Lack of sincerity (paying lip service to worthwhile causes)
Using economic power unfairly to gain favorable publicity
Orchestrating news events to give false appearance of
widespread support for corporate position
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Ethical and Legal Considerations
Sales promotion
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Offering misleading consumer promotions
Paying slotting allowances to gain retail shelf space
Using unauthorized mailing lists to reach consumers
Personal selling
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Using high-pressure selling
Failing to disclose product limitations/safety concerns
Misrepresenting product benefits
Direct marketing communications
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Invading privacy by telemarketing
Using consumer database information without
authorization of consumers
Creating economic waste with unwanted direct mail
Bearden Marketing 5th Ed
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Legal – But Ethical
Some marketing communications may be
technically legal but raise significant ethical
questions:
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Liquor industry now advertises on cable and local
television stations.
Extensive promotion of higher-cost drugs when health
care costs are spiraling out of control.
Heavy promotional allowances to pharmacies for
agreement to push proprietary instead of generic drugs.
Bearden Marketing 5th Ed
16-18
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Effects of Globalization
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Adjust the communications mix from country to country to
avoid legal and ethical problems.
Differences in language, culture, legal and ethical norms,
and availability of various media are usually significant.
Sales promotion techniques that involve contests and
giveaways are regulated quite differently in various
countries.
Effective advertising messages in one country may be
offensive to residents of other countries.
What constitutes acceptable personal selling behavior
also varies significantly across countries and cultures.
Bearden Marketing 5th Ed
16-19
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Summary
After studying this chapter, you should be able to:





Discuss the objectives of marketing communications.
Understand the marketing communications mix and its role.
Explain the key elements of the marketing communications
process.
Discuss the seven steps in the marketing communications
planning process.
Demonstrate awareness of some of the key ethical and
legal issues related to marketing communications.
Bearden Marketing 5th Ed
16-20
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.