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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Marketing Communication Tools

9. 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

10. 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

11. 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

12. 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”

13. 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

14. 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

15. A Customer-Based Perspective on Brand Equity

16. 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

17. The Brand Awareness Pyramid

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

19. 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)

20. Illustration of a Sincere Brand

21. Illustration of an Exciting Brand

22. Illustration of a Competent Brand

23. Illustration of a
Sophisticated
Brand

24. Illustration of
a Rugged
Brand

25. 3 Ways Brand Equity Is Enhance
Speak-for-itself
Message-driven
Leveraging

26. Leveraging Brand Meaning From Various Sources

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

28. End of Chapter

29. 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?