APPLIED MARKETING Session 6

What are marketing communications? Marketing communications are the means by which firms attempt to inform, persuade and remind consumers, directly or indirectly, about the products and brands they sell.

IMC builds brands

Table 19.1a Common advertising communication platforms Print and broadcast ads Packaging – outer and inserts Motion pictures Brochures and booklets Posters and leaflets Directories Reprints of ads Billboards Display signs Point-of-purchase displays Audiovisual material Symbols and logos Videotapes

Table 19.1b Sales promotion communication platforms  Contests, games, sweepstakes and lotteries  Premiums and gifts  Sampling  Fairs and trade shows  Exhibits  Demonstrations  Coupons  Rebates  Low-interest financing  Entertainment  Trade-in allowances  Continuity programmes  Tie-ins

Table 19.1c Events and experiences platforms  Sports  Entertainment  Festivals  Arts  Causes  Factory tours  Company museums  Street activities

Table 19.1d Public relation and publicity communication platforms  Press kits  Speeches  Seminars  Annual reports  Charitable donations  Publications  Community relations  Lobbying  Identity media  Company magazine

Table 19.1e Direct and interactive communication platforms  Catalogues  Mailings  Telemarketing  Electronic shopping  Blogs  TV shopping  Fax   Voic  Websites Table 19.1 Common communication platforms (continued)

Table 19.1f Other common communication platforms Word-of-mouth marketing  Person to person  Chatrooms  Blogs Personal selling  Sales presentations  Sales meetings  Incentive programmes  Samples  Fairs and trade shows Table 19.1 Common communication platforms (continued)

Figure 19.3 Response hierarchy models Sources: a E. K. Strong (1925) The Psychology of Selling, New York: McGraw-Hill, p. 9; b R. J. Lavidge and G. A. Steiner, (1961) A model for predictive measurements of advertising effectiveness, Journal of Marketing, October, 61; c E. M. Rogers (1962) Diffusion of Innovation, New York: Free Press, pp ; d Various sources

Figure 19.2 Elements in the communication process

Field of experience Receiver’s field Sender’s field

The communications process Selective attention Selective distortion Selective retention

An ideal ad campaign  The right consumer is exposed to the message at the right time and place  The ad causes consumer to pay attention  The ad reflects consumer’s level of understanding and behaviors with product  The ad correctly positions brand in terms of points- of-difference and points-of-parity  The ad motivates consumers to consider purchase of the brand  The ad creates strong brand associations

Designing the communications  Message strategy  Creative strategy  Message source  Global adaptation

Advantages to parts of the marketing communications mix Advertising  Pervasiveness  Amplified expressiveness  Impersonality Sales promotion  Communication  Incentive  Invitation

Public relations and publicity  High credibility  Ability to catch buyers off guard  Dramatisation Events and experiences  Relevant  Involving  Implicit Advantages to parts of the marketing communications mix

Direct marketing  Customised  Up-to-date  Interactive Personal selling  Personal interaction  Cultivation  Response Word-of-mouth marketing  Credible  Personal  Timely Advantages to parts of the marketing communications mix

Cost effectiveness by buyer readiness stage Figure 19.5 Cost effectiveness of three different communication tools at different buyer readiness stages

Where is the problem?

Advertising objectives How would you connect these with the Product Life Cycle? Informative advertising Reminder advertising Reinforcement advertising Persuasive advertising

Choosing among major media types  Target audience and media habits  Product characteristics  Message characteristics  Cost

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Measures of audience size  Circulation  Audience  Effective audience  Effective ad-exposed audience  Unique visitors

Television Advantages  Reaches broad spectrum of consumers  Low cost per exposure  Ability to demonstrate product use  Ability to portray image and brand personality Disadvantages  Brief  Clutter  High cost of production  High cost of placement  Lack of attention by viewers

Print ads Advantages  Detailed product information  Ability to communicate user imagery  Flexibility  Ability to segment Disadvantages  Passive medium  Clutter  Unable to demonstrate product use

Print ad evaluation criteria  Is the message clear at a glance?  Is the benefit in the headline?  Does the illustration support the headline?  Does the first line of the copy support or explain the headline and illustration?  Is the ad easy to read and follow?  Is the product easily identified?  Is the brand or sponsor clearly identified?

Print ad evaluation -- Stickiness  Simplicity, Concreteness, Unexpectedness  Credibility – details, statistics, sinatra test, testible  Emotions –imagine yourself, “They laughed when I sat down at the piano, but when I started to play…”  Stories – Challenge (David and Goliath), Connection (do good story), Creativity (apple on Newton’s head)

Sales promotion tactics Consumer-directed  Samples  Coupons  Cash refund offers  Price offs  Premiums  Prizes  Patronage rewards  Free trials  Tie-in promotions Trade-directed  Price offs  Allowances  Free goods  Sales contests  Spiffs  Trade shows  Specialty advertising

Why sponsor events?  To identify with a particular target market or life style.  To increase brand awareness.  To create or reinforce consumer perceptions of key brand image associations.  To enhance corporate image.  To create experiences and evoke feelings.  To express commitment to community.  To entertain key clients or reward employees.  To permit merchandising or promotional opportunities.

Tasks aided by public relations  Launching new products  Repositioning a mature product  Building interest in a product category  Influencing specific target groups  Defending products that have encountered public problems  Building the corporate image in a way that reflects favorable on products

Public relations functions  Press relations  Product publicity  Corporate communications  Lobbying  Counselling

Evaluating advertising effectiveness  Communication effect research  Consumer feedback method  Portfolio tests  Laboratory tests  Sales-effect research

What is direct marketing? Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen. Direct mail Catalogs Telemarketing

Online promotional opportunities  Websites  Search ads  Display ads  Viral marketing  Internet-specific ads and videos  Sponsorships  Social Media  Online communities   Mobile marketing

Guerilla Marketing  Guerrilla marketing is an advertising strategy in which low-cost unconventional means (graffiti, sticker bombing, flash mobs) are utilized, often in a localized fashion or large network of individual cells, to convey or promote a product or an idea.

Viral Marketing  Techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of viruses  It can be delivered by word of mouth or enhanced by the network effects of the Internet.  The key to effective viral: Create and execute an idea that's intriguing enough to get consumers to interact.

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Message source: Tipping Point  Products and messages can spread like a virus  Only need a few people, but the right ones: 1. Connectors – know many people, highly networked, social glue, spread message 2. Mavens – information specialists, compulsion to help others make good decisions, data banks 3. Salespeople – persuasive

Place advertising  Billboards  Public spaces  Product placement  Point-of-purchase