Part 3: The marketing mix Chapter 14: Marketing communications

Step 5: Design the marketing strategy

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When we finish this lecture you should:

Understand the concept of integrated marketing

communications and why marketers use a mix of promotional methods Understand how the Internet has radically changed the communication process Know the difference between pull and push strategies Understand how communication and the adoption processes can affect the planning of marketing communications Know how typical marketing communications plans are designed and who should manage them Understand how to approach marketing communications in international markets Know what an advertising agency is and how it operates
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A good definition of marketing communications (promotion)

Consists of persuasive communication
Involves communicating information between

sellers and potential buyers and/or others involved in distributing the product Tries to influence attitudes and behaviour The marketing managers main promotional task is to inform target customers that the right product is available at the right place and the right price
(Marketing: Creating and Delivering Value, 4/e, Quester et al. p. 452)

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Figure 14.1 The communication process

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The marketing communications process

Sourcethe sender of a message Encodingthe source deciding what to say and

translating it into words or symbols that convey meaning to the receiver Message channelthe carrier of the message Decodingthe receiver translating the words or symbols back into the message Receiverthe potential customer Noiseany distraction that reduces the effectiveness of the communication process
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Figure 14.2 Encoding and decoding depend on a common frame of reference

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Figure 14.3 A model of customer-initiated interactive communication

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Figure 14.4 Marketing communications seek to shift the demand curve

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The marketing communications mixan overview

There are many choices of methods and

techniques for achieving marketing communications objectives Major categories

Advertising Direct-response promotion (including Web sites and the Internet) Sales promotion Sponsorship Publicity and public relations Personal selling Informing, persuading and/or reminding
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Basic objectives include

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Exhibit14.1b
Visually compelling advertisements can communicate well with few words.

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy

COURTESY OF COLGATE PALMOLIVE.

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Figure 14.5 Basic promotion methods and strategy planning

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Exhibit 14.3a
Sponsoring an event, a specific cause or charity may enhance a brand in the eyes of consumers.

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy

COURTESY OF DICK SMITH FOODS.

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Factors affecting the marketing communications mix

Stage in the product life cycle
Stage in the consumers adoption process

AIDA Model Different marketing communication mixes suit different adopter groups

Nature of competition and marketing

communications requirements

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Figure 14.6 Relationship of marketing communications objectives, adoption process and the AIDA model

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Marketing communications strategies

The PUSH marketing communications strategy

using normal promotion efforts to sell the marketing mix to channel members getting customers to ask intermediaries for the product, usually because of promotion directed to final consumers or users

The PULL marketing communications strategy

Some combination of the two methods is usually

required

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Figure 14.7 Promotion may encourage pushing, pulling, or both

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Marketing communications budget

How much to spend on each type of marketing

communication is an important question

There are some economies of scale in marketing communications Not all companies can afford to use mass communications methods

Budget allocations must be focused on the overall

strategy Many people believe that most of a marketing communications budget is spent on advertising, because it is so visible in everyday life
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Marketing communications budget (continued)

Most companies spend less on advertising than on

personal selling and promotions

Sales promotions can be expensive Most retail sales are completed by sales assistants Much personal selling occurs in the distribution channels and in business markets

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Integrating marketing communications efforts

Integrated marketing communications can equally

benefit goods and services Companies are aware that they can get a better return on their investment if their marketing technique reinforces their other marketing communications techniques

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Who plans and manages the marketing communications blend?

Advertising managers

Manage mass communication methods Choose appropriate media and develop effective advertisements Advertising agencies may be used Manage the personal selling effort Often responsible for good distribution channels and policies

Sales managers

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Who plans and manages the marketing communications blend? (continued)

Sales promotion managers

Manage the companys sales promotions Vary greatly Evaluate the marketing communications methods Devise the overall promotional mix

Marketing managers

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International aspects of marketing communications

Difficulties in designing an effective marketing

communications program

Language Will the same benefits be sought by different consumers? Can the types of messages used in the domestic market be effectively used elsewhere?
Same segment of consumers around the world Standardised approach to marketing communications

Global campaigns

Tailoring to meet the needs of the target markets Internet opportunities

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Advertising agencies
Specialists in the planning and handling of mass

selling details for advertisers

Full service vs. specialised

Many small agencies, but large ones handle the

bulk of the work

Growth of mega-agencies

Agencies can usually be replaced at will Agencies often work on a commission (a per cent

of media purchases)

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Legal aspects of marketing communications

ACCC and the Commerce Commission

Control unfair or deceptive practices Police deceptive advertising or promotion

Supporting promotional claims

There are many ways to make statistics prove anything

Stop trying to portray me-too products as really new products or better than existing products

Self-regulation

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What we will be doing in the next chapter

In the following chapter we will be discussing the

marketing communications mix and introducing such topics as

Advertising Direct-response promotion (or direct marketing) Sales promotion Sponsorship Public relations and publicity

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