Chapter 10: Marketing Communications Programs

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Chapter 10Marketing Communications Programs
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Role of Marketing Communications

• more to marketing communications than
  advertising its role is to inform, persuade and
  remind the customer
• the communications process is essential for a
  firm to get its messages across to target
  segments of the market

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Communicate to Inform

• Telling the market about a new product
• Suggesting new uses for a product
• Informing the market of a price change
• Explaining how the product works
• Describing available services

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Communicate to Persuade

• Building brand preference
• Encouraging switching to your brand
• Changing customers perceptions of product
  attributes

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Communicate to Remind

• Reminding consumers that the product may be
  needed in the near future
• Reminding consumers where to buy the product

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Marketing Communications Issues

• we communicate with customers and the public in
  many different ways how do we ensure that all of
  those messages are coordinated?
• some of the communications messages sent are
  unintentional or informal
• think also about the informal ways that we
  communicate and the messages that these send to
  customers and others

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Marketing Communications Methods

• the marketing communications program may consist
  of five approaches
• personal selling in person or via technology
• advertising paid for and in the media
• sales promotion short-term demand stimulation
• public relations contribute to positive
  attitudes
• publicity stimulating news stories
• all must be coordinated so that consistent
  messages are sent concerning the company

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Integrated Marketing Communications

• IMC refers to the process of coordinated
  communications with customers and others
• in a cluttered communications environment, all
  messages should be coordinated
• goal is to produce a consistent and continuous
  flow of information tailored to the needs of the
  target audience
• achieves a common look and feel

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The Communications Process

• communications requires a channel, with a sender
  and a receiver, to handle the message
• a message is first encoded by the sender
• the communications channel is then used to
  deliver the message to the sender
• the sender decodes the message, based on his or
  her frame of reference and experience
• may be a need for a response and feedback
• the process can be interrupted by noise

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Figure 10-1 The Communication Process in
Marketing Communications
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Determining the Mix

• what combination of advertising, sales promotion,
  personal selling, publicity, and public relations
  will work best?
• factors considered in setting the marketing
  communications mix include
• characteristics of the target market
• objective
• nature of the product or service
• life cycle stage of the product or service
• budget available to spend

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Push or Pull Strategy

• a push strategy directs promotional efforts at
  channel members a pull strategy directs
  promotion at the end consumer
• many products, such as business products, are
  promoted with a push strategy, involving personal
  selling and use of trade promotions
• most consumer products would rely more heavily on
  a pull strategy where promotion is directed at
  the consumer to stimulate demand

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Figure 10-2 Push and Pull Strategies of Marketing
Communications
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Setting the Communications Budget

• it is difficult for many firms to set budgets
  because results are difficult to measure
• consider the pros and cons of these approaches to
  setting promotional budgets
• spend a fixed percentage of sales
• spend what we feel we can afford
• spend what the competition spends
• spend what it takes to achieve objectives

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Regulating Marketing Communications

• advertising and promotional efforts are closely
  regulated in Canada at many levels, including
  industry voluntary self-regulation
• the federal Competition Act regulates
• false and misleading advertising
• sale price advertising
• contests and games of chance
• promotional allowances
• bait and switch advertising

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Chapter 11Management of Advertising
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The Nature of Advertising

• advertising is distinguished from other forms of
  marketing communications as follows
• it has a verbal and/or visual message
• the sponsor of the message is identified
• delivery is through recognizable (usually mass)
  media
• there is payment by the advertiser to the media
  for carrying the message
• advertisers are increasingly being able to reach
  specific audiences with tailor-made media and
  messages

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Advertising to Target Audiences

• advertising can be classified by the target
  audience to which it is directed
• consumer advertising generally appears in mass
  media and is directed to end consumers may be
  product or institutional in nature
• business-to-business advertising is often called
  trade advertising and is directed to a business
  market

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What is Being Advertised?

• product advertising is designed to promote the
  sale of a specific product or service
• may be direct-action, quick-response
• may be indirect-action over a longer time
• institutional/corporate advertising promotes the
  firm or tries to create a positive image
• may promote customer service
• or send a public service message

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What Are the Objectives?

• primary demand advertising is intended to
  stimulate use of a category of products
• selective demand advertising is intended to
  encourage purchase of a particular brand or the
  products and services of a specific firm
• co-operative advertising involves the sharing of
  the cost of advertising by two or more sponsors
  a manufacturer and retailers (vertical) or a
  group of retailers (horizontal)

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The Cost of Advertising

• traditional mass media are losing ground to new
  media like direct mail and the Internet
• what are the cost factors that influence this?
• most companies spend less than 3 percent of their
  sales on advertising
• the largest budgets for advertising are in the
  consumer products field
• many firms spend far more on personal selling
  than they do on advertising

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Developing a Campaign

• all elements of an advertising campaign must be
  consistent with the advertisers corporate and
  promotional strategies
• before designing a campaign, an advertiser must
• know the target audience
• establish overall promotional goals
• set the total promotional budget
• determine the overall promotional theme

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Steps in Campaign Development

• the following are steps that are generally
  followed in managing an advertising campaign
• define the objectives of the campaign
• establish a budget for the advertising
• create the advertising message
• select the media to be used
• evaluate the effectiveness of the advertising

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Advertising Objectives

• the firms advertising can have several goals
• support personal selling by pre-introducing the
  sales force
• improve dealer relations by supporting the
  product
• introduce a new product or service
• expand the use of a product by suggesting new
  uses or occasions
• counteract substitution through reinforcement
• generally establish an image for the company or
  brand

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Creating the Message

• the message must first get the attention of the
  target audience
• then, it must influence the audience in the
  desired way
• it must successfully communicate an appeal the
  reason for accepting the message
• execution is the critical stage of transforming
  the appeal into words and visuals, through the
  message and the components of the ad

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Selecting the Media

• advertisers have to decide what type of media,
  which category, and which specific vehicles
• certain factors influence media choice
• the objectives of the ad and the campaign
• the audience to be reached
• the requirements of the message
• the time and location of the buying decision
• the cost of placing the advertising in media

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Evaluating the Major Media

• newspapers are flexible and timely, have a local
  orientation and wide coverage, low cost
• television is versatile, but audience is now
  fragmented, reaches mass audiences
• magazines deliver quality advertising to specific
  segments, message stays around
• direct mail is efficient, targets certain
  audience
• radio stations target specific segments, low
  cost, local orientation, short message life

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The Changing Nature of Media

• media are becoming less mass, more targeted
• cable TV offers many specialty channels
• direct-to-home TV adds to fragmentation
• lots of new out-of-home media
• Yellow Pages and other directories on CD-ROM
• place-based media where people shop and live
• advertising on the Web works as Yellow Pages does
  -- the customer seeks out the advertiser

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Evaluating Advertising

• its difficult to determine the effectiveness of
  advertising ads may have several objectives,
  work over extended time periods, and results are
  usually not observable
• direct measurement of effectiveness is possible
  where ads stimulate immediate sales
• indirect measures are more often used to get at
  recognition of the ad, aided and unaided recall
  of the advertiser and of the message
• much advertising is pretested before it appears