MARKETING COMMUNICATIONS OBJECTIVES

MARKETING COMMUNICATIONS
Marketing
Communication is a continuous Interaction between the buyer and sellers in a market place.
Slide 17-1
Primary Tasks of Communication

REMINDING INFORMING
During the introduction stage of the PLC Explain the purpose & benefits of the product
During the growth stage of the PLC Convenience the customer to buy companys brand over the competition
Target Audience
PERSUADING
During the maturity stage of the PLC Used to trigger memory (brand specific)
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Slide 17-2 Table 17.1
Some Strategic Goals of Marketing Communications

Description
Strategic Goal
Create awareness Build positive images Identify prospects Build channel relationships Retain customers
Inform markets about products, brands, stores or organizations. Develop positive evaluations in peoples minds about products, brands, stores or organizations. Find out the names, addresses and possible needs of potential buyers.
Increase cooperation among channel members.

Create value for customers, satisfy their wants and needs, and earn their loyalty.
Sunday, February 10, 2013
MARKETING COMMUNICATIONS OBJECTIVES
Increase Market Penetration Develop Repeat Purchase Behavior Establish Customer Relationships Increase Rate of Consumption Encourage Product Trial Stimulate Impulse Buying Stimulate Demand Differentiate the Product Establish a Product Image Influence Sales Volume Establish, Modify, or Reinforce Attitudes Develop Sales Leads Stimulate Interest Establish Understanding Build Support & Acceptance
Slide 17-3 Figure 17.1
The Communication Process
Source Encodes Message
Source Transmits Message via Medium
Receiver Decodes Message
Receiver Provides Feedback to Source
Noise
The AIDA Model
Marketing Communications
Attention
Interest
Desire
Action
Slide 17-5
The Communications Mix
Advertising
Personal Service
Sales Promotion
Publicity
Slide 17-6
Comparing the Elements of the Communications Mix

Advertising Personal Selling Two-Way Medium-High Yes No Yes No High Sales Promotion One-Way High No No No Yes Varies Publicity One-Way Low No Yes No One-Way High Yes No No
Communications Mode Marketer Control Over Message
Long Term, Ongoing Activity

Considered an Unbiased Source Message can be Customized for each Customer Short Term Focus Cost per Contact Overall Cost
No
Low High
No
No Direct Cost No Direct Cost
8
Low
Varies
Slide 17-7
When Elements of Communication Mix (Promotion) Are Most Useful

Advertising
Effectiveness
Personal Selling Sales Promotion Public Relations

Attention Interest Desire Action
Very effective Somewhat effective Not effective

Slide 17-8
Managing Communications Strategy
Set Communications Objectives
Select the Communications Mix

Set Communications Budgeting Implementation and Control
Slide 17-9
Factors that Affect the Communication Mix
Nature of the Product Industrial products are expensive, complex, customized Consumers products depend upon costs and risks Stage in the Product Life Cycle Early - advertising & publicity Later - sales promotions Target Market Characteristics Widely scattered markets Highly informed buyers Type of Buying Decision Routine - advertising Complex - personal selling Available Funds Lack of money - publicity, commission based personal selling Plenty of money - advertising PushandPull Strategies Push - suppliers promote to intermediaries Pull February 10, 2013 - suppliers promote to ultimate consumer Sunday,
$$$
11
Two Marketing Communications Approaches

Push Strategy
Producer
Resellers
End Users
Pull Strategy
Producer
Request Products
Resellers
Request Products
End Users
12
Comparison of Push and Pull Promotional Policies

PUSH POLICY Promotes to Promotes to Promotes to PULL POLICY
Demands Demands Demands products from products from products from 13
Producer
Producer
Retailer
Promotes to
Wholesaler
Wholesaler
Retailer
Consumer
= Flow of communication
Consumer
= Flow of product
Slide 17-11a Table 17.3
Methods for Setting Communications Budgets

Advantage
Simple to use
Method
Disadvantage
Budgeting based on expected
Percentage of sales Fixed sum per unit
sales implies communications cant improve sales performance

Marketer likely to benefit Decreasing the communications
from increasing the budget during times of rising sales
Competition- Takes into account based competitors activities

Amounts budgeted will be
budget during periods of falling sales could be disastrous in some cases Can be difficult to get competitors budget information
Can lead to ever-increasing
reasonable if competitors are budgeting effectively
communications budgets
Assumes competitors have the
same objectives
14
Slide 17-11b Table 17.3
Methods for Setting Communications Budgets

Advantage
Takes into account limited
Method
Disadvantage
Doesnt consider marketing
All you can afford
resources
May stimulate creativity in
objectives
Borrowing may be worthwhile to
making funds work hard
fund some communications strategies

No basis for setting priorities
Objective and task
Based on achieving
communications objectives
Focusing on objectives uses
among objectives
Treats all objectives as equally
funds most efficiently
worthy of funding
Hard to estimate what will it cost
to achieve a particular objective
15
Slide 17-12
Evaluating the Effectiveness of Marketing Communications
Sales Sales Changes Changes
What
Happened
? ?
16
Marketing Research
Why
it Happened
Promotion
Any form of communication a business or organization uses to inform, persuade, or remind people about its products.
Basic Promotion Methods and Strategy Planning

Target Market
Product
Place
Promotion
Price
Personal Selling
Mass Selling
Sales Promotion
Advertising
Publicity
18
Basic Promotional Objectives

Informing
BASIC PROMOTION OBJECTIVES

Persuading
Reminding
19
The Promotional Mix
20
The Promotional Mix

Advertising
Public Relations
Personal Selling
Sales Promotion
Advertising
A paid form of nonpersonal communication through the mass media
Advertising
very broad audience cost efficient externalities (public image)
cons
high absolute cost effectiveness hard to measure not directly persuasive Sunday, February 10, 2013
23
Personal Selling
Face-to-face contact with consumers designed to inform and persuade consumers to buy
Personal Selling
very persuasive direct feedback individually message design suitable for very complex information
cons
extremely high absolute cost message heterogeneity
Sales Promotion
An activity or material that offers a direct inducement to purchase
Example of Sales Promotion Activities

Coupons Sports sponsorship Trading stamps Samples Contests Point-of-purchase materials Trade shows
Aimed at final consumers or users
SALES PROMOTION ACTIVITIES

Aimed at middlemen Aimed at sales force
Price deals Allowances Sales contests Trade shows Catalogs Merchandising aids
Contests Bonuses Meetings Sales aids Travel incentives Training materials

27
Sales Promotions
effective for changing behavior in the short run very flexible
cons
can lead to promotion wars
28
Publicity
Non-paid form of nonpersonal communication through the mass media
Publicity
very effective for maintaining company image credible source or information
but
lack of control
media often not willing to cooperate
30
31
Objectives of Promotion
Create
Awareness Stimulate Demand Encourage Product Trial Identify Prospects Retain Loyal Customers
32
Objectives of Promotion
Facilitate
Reseller Support Combat Competitive Promotional Efforts

Reduce
Sales Fluctuations
35
Factors Affecting Promotional Methods
36
Factors Affecting Promotional Methods
Promotional Resources, Objectives, and

Policies Characteristics of the Target Market Characteristics of the Product Costs and Availability of Methods Push and Pull Channel Policies
37
Comparison of Push and Pull Promotional Policies

PUSH POLICY Promotes to Promotes to Promotes to PULL POLICY
Demands Demands Demands products from products from products from 38
Producer
Producer
Retailer
Promotes to
Wholesaler
Wholesaler
Retailer
Consumer
= Flow of communication
Consumer
= Flow of product
Use of Elements of the Promotional Mix
39
During the product life cycle: introduction stage growth stage maturity stage decline stage
40

During the product life cycle: For product with different characteristics: complexity risk extended product characteristics
41

During the product life cycle: For product with different characteristics: Stage of the consumer buying process: Pre purchase purchase post purchase
During the product life cycle:

For product with different
characteristics:
Stage of the consumer buying
process:
Push or pull strategy

43
Integrated Marketing Communications

The Marketing Communications Mix

Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Personal Selling
Personal Presentations by a Firms Sales Force.
Sales Promotion
Short-term Incentives to Encourage Sales.

Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Communications With Individuals to Obtain an Immediate Response.
45
Public Relations
Direct Marketing
The Communication Process

Noise Noise Noise Noise Noise Noise Sender Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Encoding Feedback Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Message Noise Noise Noise Noise Noise Noise Media Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Response Decoding Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Receiver Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Sunday, February 10, 2013
46
Steps in Developing Effective Communication

Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives

Buyer Readiness Stages
Awareness
Knowledge Liking Preference Conviction
Purchase
47

Step 3. Designing a Message
Message Content
Rational Appeals Emotional Appeals Moral Appeals
Message Structure
Draw Conclusions Argument Type Argument Order
Message Format
Headline, Copy, Color, Words, & Sounds, Body Language Action
Attention
Interest
Desire
48

Step 4. Choosing Media
Personal Communication Channels Nonpersonal Communication Channels Step 5. Selecting the Message Source
Step 6. Collecting Feedback

Setting the Total Promotion Budget
Affordable Method
Percentageof-Sales Method
CompetitiveParity Method
Objectiveand-Task Method
50
Setting the Promotion Mix

Nature of Each Promotion Tool
Advertising
Reaches Many Buyers, Expressive Impersonal
Personal Selling
Personal Interaction, Builds Relationships Costly
Sales Promotion
Provides Strong Incentives to Buy Short-Lived
Public Relations
Believable, Effective, Economical Underused by Many Companies
Direct Marketing
Nonpublic, Immediate, Customized, Interactive
Factors in Developing Promotion Mix Strategies

Distribution Channels to Final Consumers.
Push Strategy - Pushing the Product Through
Pull Strategy - Producer Directs Its Marketing Activities Toward Final Consumers to Induce Them to Buy the Product.
Type of Product/ Market

Buyer/ Readiness Stage
Product Life-Cycle Stage
52
Changing Face of Marketing Communications

New Marketing Communications Realities
Marketers Have Shifted Away From Mass Marketing Less Broadcasting
Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting
53
Integrated Marketing Communications

Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear, Consistent, Compelling Message.
Packaging Advertising
Event Marketing
Message
Personal Selling
Direct Marketing
Public Relations
Sales Promotion
54

MARKETING COMMUNICATIONS OBJECTIVES

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MARKETING COMMUNICATIONS OBJECTIVES

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MARKETING COMMUNICATIONS

Primary Tasks of Communication

Slide 17-2 Table 17.1

Some Strategic Goals of Marketing Communications

Increase cooperation among channel members.

Sunday, February 10, 2013