Communication - Major Objectives

1
Communication - Major Objectives

• Articulation of the brand
• Promotion of the Brand/product

2
Articulation of the Brand

• Brand development
• Create associations
• Create awareness
• Create favorable impressions
• Brand management
• Remind of associations or create new ones
• Reinforce and remind for enhanced awareness
• Reinforce and remind of favorable impressions
• May want to simply refresh/refurbish
• May want to evolve the brand
• Communication message/approaches/content often
  emotional and affective here as you want to
  impact or create attitudes positive ones!
• Communication message/approach/content can also
  be informational with a cognitive impact want
  to generate customer learning about your product

3
Promotion of Brand/offering

• Arouse interest in product features and
  advantages
• Provide information i.e. location, prices, etc.
• Encourage purchase intention
• Persuade
• Motivate action - Move to purchase Make the
  sale!
• Communication message/approach/content is
  motivational to impact behavior buy the
  product!
• Communication message/approach/content can
  sometimes be cognitive (informative) to
  generate interest and draw attention

4
Communication Vehicles
Salesperson
Addressable/ customized
Web
Telemarketing
Direct
E-mail
Direct mail Catalogs Infomercials
Media
Radio Newspapers
Magazine
Television
Mass
Two-way With time lag In response
Two-way Instantaneous In response
Broadcast--- One-way message
5
Advertising

• Mass communication One way
• Non-personal customer passive
• TV, radio, print (magazine news), internet,
  billboards, etc.
• Reach large numbers blast at a broad based
  audience but can also be reasonably focused by
  using the right media
• Institutional or corporate advertizing Focused
  on corporate image.
• Product advertising Focused on product
• Spillover depending on brand architecture
  (whether brand includes corporate name or is
  somehow identified with firm)
• Loss of power??

6
Cooperative Advertising

• Where the marketer (manufacturer or originator of
  the product/offering) shares advertising costs
  with downstream merchants
• Dollars go from the manufacturer to the retailer
  for (often local) advertising of the retailer but
  that features the manufacturer and brand
  prominently in the ad content
• Most often involves mass media, one-way,
  nonpersonal
• Programmed approach certain per year certain
  of sales, ect.
• Formalized agreements with downstream
  intermediaries
• Some industries more the norm, others not so much
  (seen in auto and food industries, not so much in
  clothing)

7
Cooperative Advertising

• Tactical fly in the ointment
• Constant source of conflict with downstream
  intermediaries
• Paid dollars but do not do the ads
• Do the ads but feature the brand/product/manufactu
  rer in only smallest way
• Sets up competition at intermediary level
• Manufacturers at a disadvantage because it is
  impossible to monitor and ensure intermediary
  compliance and execution
• Often regardless of the disadvantage,
  manufacturers stuck because its status quo
• Legal issues because it is vertical it can be
  seen as restraining trade. Also with large
  retailers, can be hidden price concessions

8
Advertising

• Direct - direct mail, catalogs, infomercials
• Mass communication non-personal
• Key issue two way
• Some response is involved some offering made
  directly that if the customer responds, means
  purchase
• Inherent - customer engagement customer is
  activated
• Time lag is involved, customer has to mail in,
  call in, place order, etc.
• Promotion like though because of this response
  major focus is to induce purchase act
• Cost is an issue extremely high cost with
  relatively low response
• Effectiveness is in question

9
Personal selling

• Inter personal one-on-one
• High cost, adaptive message
• Traditional personal selling pretty much confined
  to business markets because of cost and
  transaction magnitude
• Number of sales management issues we touch on in
  CRM discussions optimize sales performance
  relative to contact time investment
• Professional selling practices vary hugely by
  industry
• Important with technologies engineers and
  designers sometimes involved in team selling
  efforts
• Sales training a big issue for most companies
  invest in specific dedicated programs
• Personal selling in consumer markets most often
  done with email and telemarketers (ugh!!)

10
Promotions

• Marketing stimuli especially focused on an
  immediate response motivating buy the
  product!
• Sometimes called forcing techniques because of
  this though we know they dont really force
  anything
• Attempt to get customer activated and engaged in
  immediate way
• Couponing, POPs, In-store price promotions,
  contests, sampling
• Loyalty programs probably fastest growing
  promotional technique
• Focus on immediate response sometimes results in
  promotional spike in sales
• Issues costs, effectiveness, implementation
• Consumers vs trade
• Trade promotions promotions to intermediaries
  sales contests, trade allowances, selling
  incentive

11
Trade Shows

• Critical in some industries the major (only?)
  market facing mechanism
• Traditionally we see them as upstream market
  development (Jewelry, clothing, electronics)
• Major venue for getting to the enduser
• Some trade shows focused on consumers popping up
  home shows, etc.

12
Public Relations

• News releases, press conferences, feature
  articles
• Sponsorships of community support activities
  associated with schools, charity, etc.
• Seen as highly effective because ostensibly
  neutral and not initiated by the firm/product
• Typically seen as no cost or low cost, but
  deceptively costly because precisely because it
  can be so effective
• Because not initiated or paid, content and
  message out of the firms control
• Negative PR big problem.

13
Strategic Issues Push versus Pull

• Push Communication focused on next adjacent
  intermediary, who will then communicate to the
  next downstream adjacent intermediary and etc.
  until it gets to the enduser
• Pull Communication focused on enduser enduser
  then requests product from upstream
  intermediaries thereby Pulling the brand down
  through the distribution channel until it
  eventually gets to enduser Starts with enduser
  and ends with enduser
• Often strategic gains from simultaneous push and
  pull

You see a mass media ad about a product that
interests you
You!
Push
Pull
Product is pulled through back to the retailer by
your interest
You!
14
(No Transcript)
15
The new face of marketing communication

• EWOM
• Social Networks
• FB presence vs activity (Daves Killer Bread)
  want to get in news feed
• Twitter strong use in business markets,
  established group motivated to follow
• Digital media more proactive
• Blogs
• Creates community
• Consistency with blogger/purpose
• Disclosure
• Youtube (others?)
• Videos hope to go viral
• http//www.youtube.com/watch?vmPwhMoQBg_8
• http//www.youtube.com/user/AXEp/c/C2A5D95162272B
  87
• http//www.youtube.com/watch?v-qQvXawnmjk
• Seeding issues how do you get it started
• Product placement Products shown in movies or tv
  shows
• Peripheral routes to processing
• Customer is not involved/expecting marketing
  stimuli

16
The new face of marketing communication

• Gorilla marketing
• Creates BUZZ through something unconventional,
  unexpected, often stunts
• Consumers attend processing barriers broken down
  because it is so surprising
• Consumers know and understand they are being
  marketed to
• Low budget but high bang, creative
• http//www.youtube.com/watch?v7EYAUazLI9k
• Also Expedia yellow suitcase dance
• Viral marketing
• Creates BUZZ through Word of Mouth (WOM)
• Self replicating, spreads as in epidemic
• Most often uses internet youtube video or FB
  posts
• Sometimes coupled with promotion you get a free
  T-shirt, ticket, etc., if you text 10 of your
  friends and tell them about X
• Consumers attend because of high entertainment,
  high shock value, emotional hot button
• Consumers see the message and know they are being
  marketed to
• http//www.youtube.com/watch?vNlW8Z4SKc4E
• Stealth marketing or undercover marketing
• No sell involved, try to interest the consumer
  and get them intrigued
• No buzz, no WOM, focused only on the individual
  consumer involved
• Most often expose consumers to the product in
  person and get them to try the product

17
Leveraging Secondary Brand Associations

• Positive associations/knowledge of other entities
  (their brand) imprints on the focal brand
• When brand is linked to entity, consumer infers
  associations, feelings, judgments that
  characterize the entity also characterize the
  brand
• Because we need cognitive consistency
• Creates new associations for the most part but
  can affect existing associations
• Sponsorships Events, Athletes
• Origin country
• Music Events, sound

18
Leveraging Secondary Brand Associations
19
Integrated Marketing Communications (IMC)

• Effectiveness vs cost issues plague communication
• Effectiveness increases substantially when media,
  vehicles, approaches teamed together, even a
  simple pairing of print and tv commercial
• Presenting stimuli (information) in varied
  contexts and ways causes information to be
  encoded and processed in different ways.
• So multiple retrieval routes are established in
  memory.
• All routes converge on information and
  associations with the brand
• Recall and associations enhanced
• IMC involves the most effective mix and match of
  communication options to get this multiple
  processing to happen

20
Integrated Marketing Communications (IMC)
21
Integrated Marketing Communications (IMC)

• IMC is strategic and programmatic use of
  communication across multiple media to maximize
  customer impact and response
• 360 degree view of the customer
• Considers all touch points with the customer
• IMC coordinates multiple communication modes to
  articulate brand and/or move to purchase
• Modes are consistent and complementary
• Messages are unified and focused on brand
  concept/positioning concept
• Strong segmentation and targeting are
  prerequisite
• Because IMC explicitly considers complementarity
  and synergies in communication messages and
  tools, it increases effectiveness, reduces
  costs, increases efficiency, and eliminates waste
  and redundancies