1. International and Strategic Marketing Communication through branding Value network management Building a competitor intelligence system

2. Branding Brands used to be about trust – the quality of a product etc (Marks and Spencer St Michael quality brand) Nowadays brands must be real - use real people - in real situations - offer real benefits If they are to connect with REAL people

3. Elements in the Communications Process Sender Message Receiver Response Feedback Noise

4. Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage integrated communications

5. Image The set of beliefs, ideas, and impressions a person holds regarding an object.

6. Designing the Communications strategy Message strategy Creative strategy Message source Personal communication channels Non-personal communication channels Integration

7. Creative Strategy Informational and transformational appeals Positive and negative appeals  Fear  Guilt  Shame  Humor  Love  Pride  Joy

8. The Importance of taglines Ad Tagline I’m lovin’ itEvery little helps? Beanz meanz Heinz THINK OF SOME OTHERS!

9. Message Source Celebrity Characteristics  Expertise  Trustworthiness  Likeability  - Kerry Catona – Iceland  - Take That – Marks and Spencer

10. Setting objectives Establish the market share goal. Determine the % of market/s that should be reached. Determine the percentage of aware prospects that should be persuaded to try the brand Determine the number of people seeing the advertisement Determine the % increase in sales as a result of the advertisement Determine the necessary advertising budget

11. What does branding do? Branding strikes a balance between aspiration (“I want to be part of that club”) and identification (“this is for me”). Branding is more effective if it uses ‘real’ people

12. Emotional ties Quality is now often taken for granted. Brands attempt an emotional connection with consumers; They are customer based as opposed to Function based

13. Stay with me …. Brands now need to make sure that customers stay with them Defection and switching is growing in consumer markets as people become more price sensitive

14. Value chain management Michael Porter’s value chain is a well established concept for considering key activities that an organisation can perform or manage with the intention of adding value for the customer.

15. Why a chain? Because the value is added as products and services move from conception to delivery to the customer (Porter 1980). The value chain model simply describes different value-adding activities that connect a company’s supply side with its demand side.

16. What is value? Value = (benefit of each value chain activity minus - its cost) + (benefit of each interface between value chain activities minus – its cost)

17. Internal and external value chain Internal – activities carried out within the boundaries of the organisation External – activities carried out external to the organisation by partners. By analysing different parts of the value chain managers can redesign internal and external processes to improve their efficiency and effectiveness.

18. Restructuring the internal value chain The traditional model has been re-evaluated in the light of global, electronic communications. Weaknesses of traditional model include: It is more applicable to manufacturing as opposed to services It is a one way chain pushing products to the customer and ignoring customer needs

19. Value networks Reduced time to market and increased customer responsiveness can be achieved through reviewing the efficiency of internal processes and how information systems are deployed.

20. What sort of partners? Supply side partners - suppliers Partners who fulfil primary or core value- chain activities – eg inbound logistics Sell-side partners – B-2-B exchanges, wholesalers Value-chain partners such as a partner who provides the electronic infrastructure for a company – eg website providers

21. Five Forces Determining Segment Structural Attractiveness Competitive Forces Threat of: 1.intense segment rivalry 2.new entrants 3.substitute products  buyers’ growing bargaining power  suppliers’ growing bargaining power Based on Porter’s Five Forces

22. Identifying Competitors Concept of Competition Number of Sellers and Degree of Differentiation  Does the market consist of: Pure Monopoly Oligopoly Pure competition

23. Identifying Competitors Market Concept of Competition are there: Entry barriers Mobility barriers Exit barriers Degree of Globalisation Costs Laws

24. Designing Competitive Strategies Market-Leader Strategies  Expanding the Total Market New Users  Market-penetration strategy  New-market segment strategy  Geographical-expansion strategy New Uses More Usage  Defending Market Share

25. Designing Competitive Strategies Brand-extension strategy Multibrand strategy Heavy advertising and media pioneer Aggressive sales force Effective sales promotion Competitive toughness Manufacturing efficiency and cost cutting Brand-management system

26. Designing Competitive Strategies  Choosing a Specific Attack Strategy Price-discount Lower price goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion

27. Designing The Competitive Intelligence System Four Main Steps  Setting up the system  Collecting the data  Evaluating and analysing the Data  Disseminating information and responding

28. Designing The Competitive Intelligence System Major Steps in Customer Value Analysis: 1. Identify the major attributes customers value. 2. Assess the quantitative importance of the different attributes of each segment 3. Assess the companies’ and competitors’ performances on the different customer values against their rated importance. 4. Examine how customers in a specific segment rate the company’s performance against a specific major competitor on an attribute-by-attribute basis. 5. Monitor customer values over time.

29. Competitive advantage What strategies do your industry plan for in order to achieve a competitive advantage? Branding? Pricing? Promotion? Quality? Market leader? We will review strategies next week – last teaching week!

30. Assignment tutorials In weeks 1 st and 8 th December I will be undertaking assignment tutorials. (Remember I won’t be around on 15 th December due to a hospital appointment so I am making up the time beforehand). Please make a mutually convenient appointment with me.