Process of Communication

Marketing Communication
Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Objectives of Marketing Communication

Informing Reminding

Target Audience

Persuading

Objectives of Marketing Communication

Informing
PLC Stages: Introduction Early Growth

Reminding
PLC Stages: Maturity

Target Audience

PLC Stages: Growth Maturity

Persuading

Objectives of Marketing Communication

Informative Objective
Increase awareness Explain how product works

Suggest new uses

Build company image

Objectives of Marketing Communication

Persuasion Objective
Encourage brand switching Change customers perception of product

attributes Influence buying decision Persuade customers to call

Objectives of Marketing Communication

Reminder Objective
Remind customers that product may be

needed Remind customers where to buy product Maintain customer awareness

Modes of Marketing Communications

Advertising
Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling

Integrated Marketing Communication

A method of carefully coordinating all

promotional activities to produce a consistent, unified message that is customer focused.

Factors Contributing to IMC

Proliferation of thousands of media

choices.
Fragmentation of the mass market. Slash of advertising spending in favor of

promotional techniques.

IMC- Promotion Mix

Advertising
(Any paid form of nonpersonal presentation and promotion of ideas, goods, or services

by an identified sponsor.)

Communication Platform: Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays Logos Videotapes

Advantages:
Ability to reach large

number of people Cost per contact is low Can be micro-targeted

Disadvantages: Total cost is high

Characteristics of Advertising
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Indirect and non-personal Low Little Delayed One-way Yes Yes Fast Same message to all audiences

The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Public Relation and Publicity

Communication Platform Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine

Advantages: High Credibility Ability to catch the buyers off the guard. Dramatization. Disadvantages: lack of control over the specific content, the timing, and the amount of coverage.

Characteristics of PR and Publicity

Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Usually indirect, non-personal Moderate to low Little Delayed One-way No No Usually fast

Message Flexibility

Usually no direct control

Sales Promotion
( A variety of short-term incentives to encourage trial or purchase of a product or services.)

Communication Platform: Advantages: Contests, games, Gain attention and may lead the sweepstakes consumer to the product Premiums Gives value to the consumer (through incentives, concessions, Sampling etc.) Trade shows, exhibits Include a distinct invitation to Coupons engage in the transaction now Rebates Disadvantages: Entertainment Increased price sensitivity Continuity programs Quality image may become tarnished Merchandising support from dealers is doubtful Short-term orientation

Characteristics of Sales Promotion

Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Usually Indirect and non-personal Moderate to low Little to moderate Varies Mostly one-way Yes Yes Fast Same message to varied target

Personal selling
( Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.)

Communication Platform: Advantages: Sales presentations Personal interaction Sales meetings Cultivation Incentive programs Responses Samples Disadvantages: Fairs and trade shows Limited Reach High cost-per-action (CPA)

Characteristics of Personal Selling

Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Direct and face-to-face High Much Immediate Two-way Yes Yes Slow Tailored to prospect

Direct Marketing
( Use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit response or dialogue from specific customers and prospects.)

Communication Platform: Advantages: Catalogs Customized Mailings Up-to-date Telemarketing Interactive Electronic shopping Disadvantages: TV shopping Sometimes, direct mailing Fax mail offends the customers and many do not endorse it as they say it E-mail inhibits their private lives. Voice mail Blogs Websites

Events and Experiences

( Company sponsored activities and programs designed to create daily or special brand related interactions.)

Communication Platform: Advantages: Sports Relevant Entertainment Involving Festivals Implicit Arts Adds prestige value to brand Causes Disadvantages: Factory tours Difficult to evaluate Company museums Inflexible Street activities Lack of established infrastructure

Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results/ manage IMC

Communications Objectives
Category Need Brand Attitude Brand Awareness Purchase Intention

Designing the Communications

Message strategy

Creative strategy
Message source Global adaptation

Creative Strategy
Informational and transformational appeals

Positive and negative appeals

Fear Guilt Shame Humor Love Pride Joy

Message Source
Celebrity Characteristics
Expertise Trustworthiness Likeability

Issues Facing Global Adaptations

Is the product restricted in some countries?
Are there restrictions on advertising the product to a

specific target market? Can comparative ads be used? Can the same advertising be used in all country markets?

Select Communication Channels

Personal channels
Nonpersonal channels Integration of channels

Personal Communications Channels

Advocate channels
Expert channels Social channels

Stimulating Personal Influence Channels

Identify influential individuals and devote extra attention to them Create opinion leaders Use community influentials in testimonial advertising Develop advertising with high conversation value Develop WOM referral channels Establish an electronic forum Use viral marketing

Nonpersonal Communication Channels

Media
Sales Promotion Events and Experiences

Public Relations

Establish the Budget

Affordable
Percentage-of-Sales Competitive Parity

Objective-and-Task

Objective-and-Task Method
Establish the market share goal Determine the percentage that should be reached Determine the percentage of aware prospects that should be persuaded to try the brand Determine the number of advertising impressions per 1% trial rate Determine the number of gross rating points that would have to be purchased Determine the necessary advertising budget on the basis of the average cost of buying a GRP