Kotler Mm.15.10

Marketing Management MBA CP 205

Developing and Managing Marketing Communications

Learning Objectives: Know what is the role of marketing communications. Know how marketing communications work. Know what are the major steps in developing effective communications. Know what is the communications mix and how should it be set. Know what is an integrated marketing communications program. Developing & Managing Marketing Communications

Role of Marketing Communications Marketing communications are the means by which companies attempt to inform, persuade and remind consumers – directly or indirectly – about the products and brands that they sell. Marketing communications allow firms to link their brands to other people, places, experiences, feelings, and things. The marketing communication mix consists of six major modes of communications: Advertising : Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Developing & Managing Marketing Communications

Sales promotion : A variety of short-term incentives to encourage trial or purchase of a product or service. Events and experiences : Company sponsored activities and programs designed to create daily or special brand-related experiences. Public relations and publicity : A variety of programs designed to promote or protect a company's image or its individual products. Direct marketing : Use of mail, telephone, E-mail or internet to communicate directly with and or solicit response or dialogue from specific customers and prospects. Personal selling : Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders. Developing & Managing Marketing Communications

Common Communication Platforms Developing & Managing Marketing Communications Sales presentations Sales meetings Samples Trade fairs Incentive programs Catalogs Mailings Tele-marketing E-shopping TV shopping E-mail Voice mail Seminars Annual reports Charitable donations Publications Company magazine Sports Festivals Arts Causes Factory tours Contests, games Premiums and gifts Sampling Trade fairs Exhibits Demonstrations Coupons Rebates Low interest financing Entertainment Print and broadcast ads Packaging outer and inserts Brochures Posters & leaflets Billboards Display signs POP displays Audio visual material Logos Personal Selling Direct Marketing Public Relations Events/ Experiences Sales Promotion Advertising

Integrated Marketing Communications to build Brand Equity Developing & Managing Marketing Communications

The Communications Process Models The following models are useful to understand fundamental elements of effective communications: Macro-model and Micro-models. Macro-model has nine elements. Two represent major parties in communication – sender and receiver . Developing & Managing Marketing Communications

Two represent major communication tools – message and media . Four elements represent major communication functions – encoding, decoding, response and feedback . The ninth element is noise the random & competing messages that interfere with intended message. The more the sender’s field of experience overlaps with that of the receiver, the more effective the message is likely to be. Developing & Managing Marketing Communications

Field of Experience Receiver’s field Sender’s field Developing & Managing Marketing Communications

Elements in the Communications Process Sender Encoding Media Decoding Receiver Noise Message Feedback Response Developing & Managing Marketing Communications

During the communication process, following processes may be operating: Selective attention, Selective distortion and Selective retention. Advertisers go to great lengths to gain consumers’ attention. Receivers will hear what fits into their belief systems. In long term memory, consumers retain only a small fraction of the messages that reach them. Developing & Managing Marketing Communications

Micro – Models of consumer responses These concentrate on consumers’ specific responses to communications. There are four classic response hierarchy models : AIDA model, Hierarchy-of-effects model, Innovation adoption model and Communication model. Developing & Managing Marketing Communications

Micro-Models: Response Hierarchy models Developing & Managing Marketing Communications

All models assume that the buyer passes through cognitive, affective and behavioral stages. (Learn-feel-do) Learn-feel-do sequence is appropriate when consumers have high involvement with a product category perceived to have high differentiation. Do-feel-learn is relevant when consumers have high involvement but perceive little differentiation. Learn-do-feel is relevant when consumers have low involvement and perceive little difference in the product category. Developing & Managing Marketing Communications

Marketers can plan communications better by choosing the right sequence. Assuming high involvement and high perceived differentiation, the hierarchy of effects model can be illustrated in the context of marketing communications as follows: Awareness: The communicator’s task is to make the target consumers aware of the object. Knowledge: The consumers may be aware but do not have sufficient information. The company may decide to select developing brand knowledge as the communication objective. Developing & Managing Marketing Communications

Liking: If the consumers view the brand unfavorably based on the perceptions created due to the problem with message execution, company needs to revamp its communication strategy. Preference: If the consumers do not prefer the product, the communicator needs to build preference by comparing quality, value or performance with likely competitors. Conviction: The communicator builds conviction by informing that the product provides best solution to the consumer’ problem. Purchase: The communicator must lead consumer to purchase by offering lower price, premium or product trial. Developing & Managing Marketing Communications

Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC Developing & Managing Marketing Communications

The target audience is a critical influence on communicator’s decision on what, how, when, where and to whom to say it. Target audience can be defined in terms of usage and loyalty. Communication strategy differs depending on usage and loyalty. Image analysis can be conducted to profile target audience in terms of brand knowledge to gain further insight. Familiarity scale can be used to measure consumers knowledge and respondents who are familiar can be asked how they feel about the product using favorability scale. The two can be combined to develop insight into the nature of communication challenge. Developing & Managing Marketing Communications

Familiarity – Favorability Analysis Developing & Managing Marketing Communications

Communication Objectives Category Need Brand Awareness Brand Attitude Purchase Intention Developing & Managing Marketing Communications

Category need involves establishing a product category as necessary to satisfy a perceived discrepancy between a current motivational state and a desired emotional state. Brand awareness refers to ability to identify the brand within a category in sufficient detail to make a purchase. Brand attitude involves evaluation of the brand with respect to its perceived ability to meet a current need. Brand purchase intention refers to self instructions to purchase the brand. Developing & Managing Marketing Communications

Designing the Communications Designing communications will require solving three problems: What to say (Message strategy). How to say it (Creative strategy). Who should say it (Message source). In message strategy, the management searches for appeals, themes, and ideas that will tie into brand positioning and help establish POPs or PODs. Buyers expect four types of rewards from a product: Rational, sensory, social or ego satisfaction . Developing & Managing Marketing Communications

Buyers may visualize these rewards from results-of-use experience, products-in-use experience or incidental-to-use experience. Four type of rewards together with three types of experience result in twelve types of messages. Creative strategies are how marketers translate their messages into a specific communication. These can be classified as involving either ‘informational’ or ‘transformational’ appeals. Developing & Managing Marketing Communications

Informational appeal elaborates on product or service attributes or benefits. Advertisements can be: Problem solution ads, Product demonstration ads, Product comparison ads, Testimonials from celebrity. Informational appeals assume a very rational processing of communication on the part of consumer. Developing & Managing Marketing Communications

A transformational appeal elaborates on a non-product related benefit or image. It attempts to stir up emotions that will motivate purchase. Communications use negative appeals such as fear, guilt and shame to get people to do things or stop doing things. Communications also use positive emotional appeals such as humor, love, pride and joy. The challenge in arriving at best creative strategy is ‘how to break through the clutter’ to attract the attention of the consumers and yet be able to deliver the intended message. Developing & Managing Marketing Communications

The magic of advertising is to bring concepts on a piece of paper to life in the minds of the target consumer. In the print ad, the communicator has to decide on headline, copy, illustration and color. For a radio message, the communicator chooses words, voice qualities and vocalizations. If the ad is to be carried on TV or in person, all these elements plus body language has to be planned. Developing & Managing Marketing Communications

The Importance of Tag lines Developing & Managing Marketing Communications ‘ Fill it, Shut it, Forget it’ Our motor bike is fuel efficient ‘ Utterly Butterly delicious’ Our butter is tasty and fun to eat ‘ Neighbor’s envy; Owner’s pride’ It is prestigious to own our brand of TV ‘ More car per car’ Our car is more spacious Ad Tagline Brand Theme

Selecting Communications channels Communication channels may be personal and non-personal. Personal communication channels derive their effectiveness through individualized presentation and feedback. Personal communications channels can be classified into three types: Advocate channels: Company sales persons contacting buyers. Expert channels: Independent experts making statements to target buyers. Developing & Managing Marketing Communications

Social channels: Neighbors, friends and family members talking to target buyers. Personal influence is especially important in two situations:. When products are expensive, risky or purchased infrequently. When the product suggests something about the user’s status or taste. Non-personal communications channels are directed to more than one person and include media, sales promotions, events and publicity. Developing & Managing Marketing Communications

Media: Consist of print, broadcast, network (telephone, satellite), electronic (Audio, video tapes, CD-Rom, web page) and display media (Bill board, sign, posters). Sales Promotions: Consist of consumer (Samples, coupons and premiums), Trade ( ad and display allowances) and business & sales-force promotions (Contests for sales reps). Events and experiences: include sports, arts, entertainment and cause events that create novel brand interactions with consumers. Public Relations: Include communications directed to employees, consumers, other firms, government and media. Developing & Managing Marketing Communications

Deciding on Marketing Communications Mix Firms allocate their marketing communications budget over six major modes of communications: Advertising, Sales Promotion, Public relations and publicity, Events and experiences, Sales Force and Direct marketing. Developing & Managing Marketing Communications

Advertising can be used to build a long term image for a product or trigger quick sales. It can efficiently reach geographically dispersed buyers. It has following qualities: Persuasiveness : Permits seller to repeat a message many times, allows buyers to compare the messages of various competitors and says something about sellers’ size, power and success. Amplified expressiveness : Provides opportunities for dramatizing the company and its products through use of print, sound & color. Impersonality : It is a monologue, and not dialogue with audience. Developing & Managing Marketing Communications

Companies use sales promotion tools to draw stronger and quicker buyer response. They offer three distinct benefits: Communication : They gain attention and may lead the consumer to the product. Incentive : Incorporate some concession, inducement or contribution that gives value to the consumer. Invitation : Indicate a distinct invitation to engage in the transaction now. The use of public relations and publicity is based on three qualities: High credibility, ability to catch buyers off guard and dramatization. Developing & Managing Marketing Communications

News stories and features are more authentic and credible to readers than ads. Public relations can reach prospects who prefer to avoid sales people and advertisements. Events and experiences have following advantages: Relevant : A well chosen event can be seen as highly relevant as the consumer gets personally involved. Involving : Consumers find the events more actively engaging. Implicit : Events are more of an indirect ‘soft sell’. Developing & Managing Marketing Communications

Direct marketing includes direct mail, telemarketing and internet marketing. Direct marketing is: Customized : Message can be prepared to appeal to the addressed individual. Up-to-date : Message can be prepared very quickly. Interactive : Message can be changed depending on the person’s response. Personal selling is the most effective tool in the later stages of the buying process. Developing & Managing Marketing Communications

It helps in building up buyer preference, conviction and action. It has three characteristics: Personal interaction : Involves an immediate and interactive relationship between two or more persons. Each party is able to observe other’s reactions. Cultivation : It permits all kinds of relationships to spring up, ranging from matter-of-fact selling relationship to deep personal friendship. Response : It makes the buyer feel under some obligation for having listened to the sales talk. Developing & Managing Marketing Communications

Factors in setting the Marketing communication mix Factors to be considered when developing the marketing communication mix are: Type of product market, consumer or business market. Consumer readiness to make a purchase. Stage in the product life cycle. Advertising is used less in business markets, yet it can be useful during introduction of new products, more economical. Sales force can contribute more effectively in consumer markets by persuading dealers to keep increased stocks, build enthusiasm and key account management Developing & Managing Marketing Communications

One of a series of Tiger woods ads that are part of the Accenture re-branding campaign Developing & Managing Marketing Communications

Managing Integrated Marketing Communications Process (IMC) IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan. It evaluates the strategic roles of a variety of communication disciplines and combines these to provide clarity, consistency and maximum impact through seamless integration of messages. IMC forces the company to consider various ways in which the customer comes in contact with the company, how it communicates its positioning, relative importance of each vehicle and timing issues. Developing & Managing Marketing Communications

Recap: What is the role of marketing communications. How marketing communications work. What are the major steps in developing effective communications. What is the communications mix and how should it be set. What is an integrated marketing communications program. Developing & Managing Marketing Communications

Kotler Mm.15.10

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Kotler Mm.15.10