Marketing Communications Management

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Marketing Communications Management

• Business 9318, Fall 2001
• Dr. Katherine Gallagher

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Objectives

• To examine strategies at the corporate,
  marketing, and marcom levels
• To examine objectives at the corporate,
  marketing, and marcom levels
• To examine budgeting methods for marcoms
• To look at monitoring of marcom performance,
  including corrective adjustments

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Management Decisions
analysis
planning
objective
strategy
tactics
budget
monitoring
control
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Corporate Strategies

• Grow
• Maintain
• Harvest
• Innovate
• Divest

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Marketing Strategies

• Differentiation
• Cost leadership
• Focus

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Marcom StrategiesThe FCB Grid
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Marcom StrategiesThe FCB Grid
Think
Feel
Life insurance
High involvement
35mm camera
Motor oil
Low involvement
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Marcom StrategiesThe FCB Grid
Think
Feel
Family car
Perfume
High involvement
Complexion soap
Low involvement
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Marcom StrategiesThe FCB Grid
Think
Feel
High involvement
Household cleaner
Low involvement
Clothespin
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Marcom StrategiesThe FCB Grid
Think
Feel
High involvement
Greeting card
Fresh fruit
Low involvement
Popsicle
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Marcom StrategiesThe FCB Grid
Think
Feel
Informative Strategy
Affective Strategy
High involvement
Habit Formation Strategy
Self-satisfaction Strategy
Low involvement
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Marcom Strategies

• 1. Informative (thinker) strategy
• objective brand awareness and learning
• tactics
• advertising (mostly print)
• trade promotion (training and trade shows)
• PR (press release and publicity)
• WOM (stimulated by advertising and sampling,
  referral system)

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Marcom Strategies

• 2. Affective (feeler) strategy
• objective brand awareness and positive attitude
• tactics
• advertising (mostly broadcast)
• trade promotion (cooperative advertising)
• PR ( press conference, corporate advertising,
  event sponsorship)
• WOM (stimulated by advertising)

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Marcom Strategies

• 3. Habit formation (doer) strategy
• objective induce trial and learning from product
  use/reinforce learning
• tactics
• advertising (mostly print and interactive)
• direct marketing (DM, newsletter, DR advertising)
• sales promotion (coupons, samples, bonus packs,
  etc.)
• trade promotion (trade allowances)
• PR (publicity)

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Marcom Strategies

• 4. Self-satisfaction (reactor) strategy
• objective induce trial and brand liking from
  product use/reinforce product attitudes
• tactics
• advertising (outdoor and specialty)
• direct marketing (catalogs, DR advertising,
  telemarketing, direct selling)
• sales promotion (premiums, contests, sweepstakes)
• trade promotion (contests, incentives, in-store
  ads, POP, personal selling)
• PR (corporate ads, event sponsorship, pdt
  placement)

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Disadvantages of Not Using Objectives

• Effectiveness cannot be assessed
• Strategy and tactics cannot be formulated
• Budget cannot be determined

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Setting Objectives

• 1. Identify one or more objective dimensions
• 2. Identify measures to be used to gauge
• outcomes related to each objective
• 3. Identify desired level and time frame
• associated with each objective dimension

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Setting Corporate ObjectivesDimensions and
Measures

• Corporate objectives (marketing)
• long term
• brand sales
• market share
• short term
• profit
• cash flow

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Setting Marketing ObjectivesDimensions and
Measures

• Brand equity brand associations, brand
  knowledge, brand image
• Measures
• recognition measures of brand knowledge
• aided recall measures of brand knowledge
• image measure of brand knowledge
• cognitive structure index
• belief strength measure
• projective methods of brand associations
• associative strength measures of brand
  associations

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Setting Marcom ObjectivesDimensions

• Brand awareness
• Brand learning
• Brand attitude
• Brand trial
• Brand repeat purchase

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Setting Marcom ObjectivesMeasures to Gauge
Outcomes

• For each objective
• identify valid and reliable measures
• identify norms
• previous studies with this brand
• previous studies with a comparable brand
• previous studies with a comparable target market
• previous studies with a comparable marcom campaign

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Setting Marcom ObjectivesSample Measures

• Brand awareness
• brand recognition
• aided recall of brand

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Setting Marcom ObjectivesSample Measures

• Brand attitude
• cognitive-brand attitude
• affective-brand attitude
• brand acceptance
• brand preference

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Setting Marcom ObjectivesSample Measures

• Brand trial or purchase
• attitude toward brand purchase
• purchase intention
• brand purchase

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Setting Marcom ObjectivesSample Measures

• Repeat purchase
• repeat purchase
• brand satisfaction
• brand loyalty

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Setting ObjectivesSetting Levels and Time Frames

• Specific, quantified, time related
• Relationship with norm
• brands past/anticipated performance
• competitive brands past/anticipated performance
• anticipated changes industry changes
• anticipated firm changes

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Methods of Budgeting for Marcoms

• 1. Ratio-to-Sales Methods
• percentage of absolute sales
• percentage of unit anticipated sales
• percentage of past sales
• percentage of unit past sales

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Methods of Budgeting for Marcoms

• 2. Competitive parity methods
• match industry norms
• share-of-voice/market method
• match or outspend competitors

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Methods of Budgeting for Marcoms

• 3. Quantitative methods
• experimental method
• historical-statistical method
• 4. ROI method
• 5. Objective-task method
• 6. All-you-can-afford method
• 7. Previous budget method

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Monitoring and ControlFailing to Meet Marcom
Objectives

• Reassess the marcom strategy
• Reassess the marcom mix
• Reassess the implementation of the mix elements
• Reassess the coordination of the mix elements
• Reassess the realism of the marcom objectives
• Reassess the budget