Marketing Communications and Promotional Practice The Communication Process

Communication Process Effective exchange of information where both sides agree on the meaning of the message.

1-step Communication Model Encode Decode Sender Message Receiver NOISE Feedback Loop

2-step “Diffusion” Communication Model Sender Opinion Leader Receiver Receiver Receiver

Promotional Tools The Customer Personal Selling Branding Advertising Sales Promotion Sponsorship Public Relations The Customer Packaging Merchandising Corporate Image Direct Marketing Internal Marketing Exhibitions Word of Mouth

Marketing Communications Tools and Methods Advertising Sales Promotion Public Relations Media - Channels Messages Segmentation – Targeting – Positioning Sponsorship Endorsement Packaging Product Positioning Personal Selling Branding

Integrated Marketing Communications Marketing Communications plus Marketing Promotional Practice Defined as – see handout The Payoff = SYNERGY

Integrated Marketing Communications 5 Key Features Start with the customers/consumers/prospects Use of relevant contact or touch point Speak with a single voice Build relationships Affect behaviour

Integrated Marketing Communications Key factors TODAY Reduced use of Mass Media Increase in highly targeted communication methods Heightened demands on communications agencies Increased efforts to measure returns on investment Demands of global distributors Supply chain pressures

Terminology Belief A thought that a person holds to be true

Changing the way people think To change beliefs entirely To change relative importance of existing beliefs To develop new beliefs

Terminology Cognition Affectivity Conation What people think about a product Affectivity What people feel about a product Conation What people actually do

Terminology Attitude A person’s enduring favourable or unfavourable cognitive evaluation, emotional feelings, and actions tendencies toward some object or idea

Perception Perception Can be defined as a process by which people select and interpret stimuli into a meaningful picture

Perception Expectation, needs, and motives of the individual important Individuals see what they want to see Perceptions based on past experience and pre- conditioning Selective attention Heightened awareness of ads for items individuals are considering

Perception Exposed to 1000 advertisements per day Need to ‘filter’ ‘Attention’ caught by: Intensity & Size Position Contrast Novelty Repetition Movement

Information Processing Perception Personality Internal information processing Attitudes Learning Environmental Influences

Advertising Models & The MarComs Mix

Objectives of this session AIDA DAGMAR or ‘Hierarchy of Effects’ DRIP VIPS DMP PLC Maslow MECCA or Means-End Chain MarComs Mix..

The AIDA Model Attention Interest Desire Action Get noticed. What’s in it for me? Problem solving? Desire ‘Want’ factor Brand Action How do I get it?

The DAGMAR Model (Defining Advertising Goals for Measured Advertising Results) also known as ‘Hierarchy of Effects’ model

Ehrenburg Model (1997) Awareness Trial Reinforcement Nudging Let the customer know you exist (Doesn’t have to be just advertising) Trial Curiosity (rather than ‘persuasion’) could lead to trial of product. Reinforcement Provide reassurance in brand. (Role suitable for advertising) Nudging Remind – reinforce - repeat purchase.

The DRIP Model Differentiate Remind Inform Persuade Be different from the competition Remind Who are we? What do we stand for? Inform What’s new? Features-Benefits Persuade Why is it right for you?

David Bernstein’s VIPS checklist To be effective, an advertising message should be checked to see that it has the following qualities: VISIBILITY IDENTITY PROMISE SINGLEMINDEDNESS

The DMP Model (The Decision Making Process)

The DMP Model (Decision Making Process) 1.Recognition of need Remind or create perception of need? 2.Define parameters of need / solution We’ve got just the solution 3.Search for information Find out what we have to offer 4.Evaluation of alternatives Aren’t we better than the competition? 5.Determining terms of purchase We’re great value for money 6.Purchase It’s so easy to buy 7.Post-purchase evaluation You made the right decision! 8.Re-purchase? You are our valued customer

The PLC Model (The Product Life Cycle)

The PLC Model Pre-Launch Introduction Growth Maturity Teaser campaign Introduction Launch campaign Growth Maximise sales Maturity Tactical campaigns Decline / Withdrawal Why advertise?

The Maslow Model Maslow’s Hierarchy of Needs

MECCAS Means-End Conceptualisation of Components for Advertising Strategy or Means-End Chain Theory Links product attributes to personally relevant values: Products Attributes / Features Consumer Benefits Leverage Points Memorable ‘hook’ which links benefits to consumer Personal Values What is relevant to this consumer Executional Framework Scenario used to convey message

Got Milk Means-End Chain Features Benefits Values Low fat Healthy Self-Respect Wisdom Calcium Healthy bones Comfortable life Ingredients Good taste Pleasure Happiness Vitamins Enhanced sexual ability Excitement Fun

Conclusion No-one knows why some ads work and others don’t No-one can predict for sure which ads will work and which ones will not Models should act a guide for structuring creativity – not a staightjacket

MarComs Mix There are 4 main elements. Advertising Sales promotion Publicity/Public Relations Personal Selling The mix varies with product type….

Models of Consumer Buying Behaviour Mass communication sources - television, press/magazines, radio Awareness Mass communication sources - press/ magazines television, radio Interest Personal sources - relatives, friends, colleagues , Web 2.0 Evaluation These stages correspond to the previous slide: The process can be terminated at any stage. A consumer loses interest. Marketing communications fail, etc. Complexities arise when: many brands may try to influence a consumer at the same time An innovation is under a familiar brand (consumer might jump stages) Mass communications important in early stages, personalized coms in later ones. Personal sources - sales people – in store, relatives & friends Trial Personal sources and mass media communication (for re-assurance). Adoption

DAGMAR Unawareness Awareness Comprehension Conviction Action

DRIP Differentiate Reinforce Inform Persuade To make a product stand out from competing brands Reinforce To build on previous marketing communications Inform To make known and advise of availability and features Persuade Turn features into consumer benefits

Branding What is a brand? A name, term, sign, symbol, or design or a combination of them intended to identify the product – goods / services of a seller/producer and to differentiate them from the offerings of competitors More than a symbol etc it is SHORTHAND of values that consumer perceive a brand to have… Page 32

Brand equity This is the result of an INVESTMENT in effective Marketing Communications over a period of time Successful brand investment will result in an irrational price price premium and brand LOYALTY = a willingness to continue to buy the brand.. High top of mind awareness – EVOKED SET.. More on Branding Week 2…

Categories of Adopters Early adopters Innovators Early majority Late majority Laggards Time to adopt

Buying Decision Making Process Problem recognition Information search Alternative evaluation Purchase decision Post-purchase evaluation

Types of Consumer Decision-making Extended problem solving (EPS) Person takes significant time to search for information and come to a solution Marketing communications should provide lots of information

Types of Consumer Decision-making Limited problem solving (LPS) Person has some sort of experience with a type of product so that the external info. search is not as thorough as EPS Marketing communications should provide information on modifications, new attributes to the product (differentiation)

Types of Consumer Decision-making Routinised response behaviour (RRB) Many product decisions require an internal search only Marketing communications should focus on keeping the product within the evoked set or having it included in the set (through repetition of messages)

Question Name some products which you think people buy according to EPS LPS RRB

Involvement Keys points Personal relevance Perceived risk How concerned with a purchase is the consumer? How might others perceive the purchase? Perceived risk Predisposition to act How motivated is someone to buy?

Perceived Risk Performance risk Financial risk Physical risk Social risk Ego risk

Source Credibility How much does a Receiver of a Message believe the Sender? Mass media advertising is one of the least credible promotional tools Third party endorsement is one of the most credible promotional tools Eg, magazine articles; opinions of friends, family, work colleagues To some extent celebrity testimonials

Organisational Buying Behaviour New buy – modified rebuy – straight rebuy Decision Making Unit – Users, Influencers, Deciders, Buyers, Gatekeepers Influences on Buying Centre – Stakeholder, Organisational, Individual

Differences - Consumer vs. Organisation Number of decision makers Promotional mix Message content Lead time for decisions Budget allocation Evaluation and measurement Sales volume per customer