Overview of Marketing Communications Process and Tools TMT, MKT 337: Promotional Management

Lecture Objectives Introduce the module Examine process of marketing communications Consider role of marketing communications in strategic mix Discuss range of tools available

Some Basic Definitions Marketing: Management process which anticipates, identifies and satisfies customer requirements profitably or effectively >marketing mix Marketing Communications: Use of communications towards consumers, customers and prospects with the explicit purpose of influencing these groups Corporate Communications: The management of communications between an organisation and all its stakeholders/publics > sphere of PR

Marketing Communications: Key Dimensions Management process via which an organisation engages with its various audiences Audiences are encouraged to offer (desired) behavioural and attitudinal responses Understanding of each audience is required to tailor the marketing communications in terms of message and tool Increasingly an integrated approach is adopted

Role of Marketing Communications DRIP FRAMEWORK Differentiate Reinforce/Remind Inform Persuade Bowersox and Marsh 1989

Differentiation

Remind

Inform

Persuade

Marketing Communication and the process of Exchange Combining 4Ps More than 4Ps? Process, Political Power and People 2 different use of marketing Communications: Building Brand Values Shape Behavior – Call to action

The marketing communications mix The internet and digital technologies have enabled new interactive forms of communication, where the receiver has greater responsibility for their part in the communication process A traditional model of the marketing communication mix

Figure 1.1 The tools and position of the marketing communications mix Fill 2009

Figure 1.2 Above-and below-the-line communications Fill 2009

New Tools, New Media Broadcast advertising (TV/radio) Print advertising (newspaper/magazine) Interactive/internet marketing Website/on-line advertising Outdoor/billboards Mobile/Wap Personal selling Telemarketing Packaging Direct marketing Publicity/PR Point of purchase Product placement Sales promotion Word of mouth Events & sponsorship

Product Placement

Ambient Advertising

Selection Criteria Degree of control required over delivery Financial resources available (cost) Level of credibility Ability to deliver message (communications) Size and geographic dispersion of target audiences

Key Characteristics of Tools ADVERTISING Non-personal mass communication High reach Impact High cost Low credibility? Difficult to measure

Key Characteristics of Tools SALES PROMOTION Used tactically in short term Aim is often to increase sales High control and measurement Moderate cost Can be used throughout distribution channel Credibility may be questioned

Key Characteristics of Tools PERSONAL SELLING Interpersonal communications tool (two way) Instantaneous feedback possible Message can be tailored High cost More suitable where message is complex

Key Characteristics of Tools DIRECT MARKETING Any form of direct response communications Targets individual customers (database) Can deliver personalised message Builds relationships Facilitated by technological developments Moderate absolute cost but cost per contact high

Key Characteristics of Tools PUBLIC RELATIONS Non-personal Wide range of tools available High credibility Low cost

Figure 1.3 The relative effectiveness of the tools of the marketing communications mix Fill page 25

Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools of marketing communications Fill

Major communication tools Use Examples Advertising Efficiently gets message to large audience Television and radio commercials and new paper ads; paid search engine links; product and company brochures; billboards; transit ads; ads delivered by cell phone and emails Sales promotion Stimulate immediate purchase; reward repeat purchase Samples, coupons, premiums, contests, games, incentives Public relations Build positive image, strengthen ties with stakeholders Event sponsorship, news release, briefings, speeches and blogs, public appearance Direct marketing Reach target audience, encourage direct response Mail, email, telemarketing campaigns, printed and online catalog, direct response tv and radio Personal selling Reach customers one to one to make sales, strengthen relationships Sales appointment, sales meetings and presentation, online sales chat help

Figure 2.1 A linear model of communication Source: Based on Schramm (1955) and Shannon and Weaver (1962).

Features of The Communications Process Sender: company, organisation, brand, CEO, Agency Receiver: consumer, customer, public, government, intermediary, supplier Encoding: Use of signals (words, symbols, pictures, music) to create a message that can be understood Decoding: Understanding the message as it was intended Noise: Cognitive barriers or physical distractions Realms of understanding: Common ground between source and receiver

Influences on Marketing Communications Process Increasing volume of messages/Message Clutter Literate consumers Increasing Competition Decline in effectiveness of Advertisement Level of product/brand involvement Opinion leaders Consumer to consumer communications (word of mouth)

Hierarchy of Effects Models (often linear) which describe the step by step process we go through when exposed to marketing communications from initial unawareness to final action. There are many theories put forward to explain how marketing communications affects consumer behaviour

Attention Interest Desire Action AIDA Attention Interest Desire Action