Chapter 1 Development of Marketing Communication MKT547 Marketing Communications Chapter 1 Development of Marketing Communication Shamshul Anaz Hj. Kassim UiTM Perlis

Learning Objectives After studying this topic, student should be able to: Describe the background & development of marketing communications Identify the role of marketing communications & the relationship with other components of the marketing mix Differentiate the various components of marketing communications tools Explain the concept of brand equity from both the company’s and the customer’s perspectives

Evolution of Marketing Communication Many methods of informing the customers have been developed over the years Marketers have realize that the function of promoting should go beyond just advertising New ways & methods need to be explored & experimented

Definitions Marketing Communication Marketing communications The process of identifying, anticipating, & satisfying customers needs & wants, profitably A way of doing business Communication The process of sharing some idea, attitude or information Marketing communications The process of effectively communicating product information or idea to the target audience

The Marketing Mix & Its Relationship to Marketing Communications Mix The marketing mix is a feature of ‘4Ps’ Product - Name, packaging, ingredients Price - Price, term of trades Place - Retailers, agents, direct mkt Promotion - Advertising, sales promotion, personal selling Marketing communication mix is the activities or tools used to achieve the marketing communications objectives Both are incorporate in order to increase goodwill, achieve brand equity, add more customers & getting more revenue & positive number of physical products

Why Marketers Communicate? To inform To inform about a new product in the market, or new improvements made to the present products Ex: change of location/address new ventures etc. To persuade To persuade the target audience to change attitude, behavior & perception Ex: Kraft want customer to believe that its cheese is the best value compared to all other cheese brands To induce action Wants the customers to get into action such as trying the product that has being promoted

Factors that brought about the importance of Marketing Communications The impact of globalization Change in consumer’s consumption pattern Increased number of working women Decrease in government intervention

Marketing Communication Tools

Marketing Communication Tools cont. Advertising Any paid form of non-personal communication used by an identified sponsor that promotes ideas, goods or services Can be mass communication such as TV, radio, magazines, newspaper or direct communication Personal Selling Face to face communication where the seller attempts to persuade the customer & the prospects for the purpose of making sales

Marketing Communication Tools cont. Sale Promotion Consist of all marketing activities that attempt to stimulate quick buyer actions Ex: discounts, coupons, rebates, special offer, contests, sampling, etc. Public Relations Foster goodwill between the marketer and the public ex: publicity & news releases, corporate advertising, publications & others

Marketing Communication Tools cont. Point of Purchase (PoP) Materials that deliver marketing communication message at the point of sales that facilitate the consumer likelihood to purchase Sponsorship Marketing Supporting of happenings or events with the hope of getting mileage for the marketer

The Concept of Brand Equity “A name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition”

Definition of Brand Equity Brand equity can be considered either from the perspective of the organization that owns it or from the vantage point of the customer. A brand possesses equity to the extent that consumers are familiar with the brand and have stored in their memory warehouses favorable, strong and unique brand associations

As Brand Equity Increases… 1. A higher market share is achieved 2. Brand loyalty increases 3. Premium prices can be charged 4. The brand earns a revenue premium

A Customer-Based Perspective on Brand Equity

Two Forms of Brand Knowledge Brand Awareness An issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked

The Brand Awareness Pyramid

Two Forms of Brand Knowledge Brand Image The types of associations that come to the consumer’s mind when contemplating a particular brand

Dimensions of Brand Personalities Sincerity - brand is seen as down to earth, wholesome and cheerful (e.g., Mr.Goodwrench). Excitement - brand is seen as daring, spirited, imaginative, and up-to-date (e.g., Hummer). Competence - brand is seen as reliable, intelligent, and successful (e.g. Toyota). Sophistication - brand is seen as upper class a charming (e.g., Rolex). Ruggedness - brand is seen as tough and outdoorsy (e.g., Timberland)

Illustration of a Sincere Brand

Illustration of an Exciting Brand

Illustration of a Competent Brand

Illustration of a Sophisticated Brand

Illustration of a Rugged Brand

3 Ways Brand Equity Is Enhance Speak-for-itself Message-driven Leveraging

Leveraging Brand Meaning From Various Sources

Co-branding and Ingredient Branding A partnership between two brands Ingredient branding Inclusion of one brand within the other (e.g., “Intel Inside”).

End of Chapter

Exercises Define MC and how the system works? What are the factors in development of MC? What do you understand about the marketing communication tools?