MARKETING COMMUNICATIONS

Dr. Serra Gorpe, APR ISTANBUL UNIVERSITY School of Communication

OUTLINE
The Marketing Environment Marketing Communication and its Process Target Market Marketing Mix Integrated Marketing Communications Buyer Behavior Marketing Research Product Planning and Management Brand Management

....OUTLINE
Packaging Pricing Distribution Promotional Strategy Evaluation MARKETING APPLICATIONS IN SPECIAL FIELDS - Regulation and Ethics - REFERENCES - How to prepare a MC plan

MARKETING ENVIRONMENT
Marketing Markets The Marketing Concept Marketing Functions and Processes History of Marketing Environmental Analysis Marketing Strategy and Planning

....MARKETING ENVIRONMENT
Marketing is the process of planning and executing development, pricing, promotion and distribution of goods and services to achieve organizational goals.

A Market is made up of all the people or organizations who want or need a product and have the willingness and ability to buy. Products may be goods, services, ideas, places or persons. (Finch, p. 1)

....MARKETING ENVIRONMENT
The aim of marketing is to know and understand customer so well that the product or service fits him and sells itself (Kotler and Armstrong, p.4) Needs: it is a state of felt deprivation in a person Wants: forms that human needs take when shaped by culture and individual personality Demands: wants become demands when packed by buying power. Exchange and transaction

....MARKETING MANAGEMENT PHILOSOPHIES

1) Production Concept: Holds that consumers will favor products that are available and highly affordable and therefore management should focus on improving production and distribution efficiency. 2) Product concept: Consumers will favour the products that offer the most quality, performance, therefore the organization should devote its energy to making continous product improvements. (Kotler and Armstrong, p.14-15)

....MARKETING MANAGEMENT PHILOSOPHIES

3) Selling Concept: Consumers will not only buy enough of the organizations products unless the organization undertakes a large selling and promotional effort. 4) Marketing Concept: Achieving organizational goals depend on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. (Kotler and Armstrong, p.14-15)

....MARKETING MANAGEMENT PHILOSOPHIES

5) Societal Marketing Concept: Organization should determine the needs, wants and interest of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the societys and consumerss well being. (Kotler and Armstrong, p.17)

....MARKETING CONCEPTS OF 1950s

Marketing Mix Product Life Cycle Brand Image Market Segmentation Marketing Concept Marketing Audit (Harris, p. 280)

....MARKETING ENVIRONMENT
The Marketing Concept. A company should satisfy consumer wants and needs at a profit. The company should aim all its efforts toward giving its customers the services and products thet want or need. (Ogden, p. 5) Customer Satisfaction: Eg: Walmart

The Marketing Concept is a customer-oriented business philosophy which stresses customer satisfaction as the key to achieve organizational goals. The philosophy maintains that all of the organizationss efforts should be focused on identifying and satisfying the wants and needs of the customer. (Finch, p. 2)

....MARKETING CONCEPTS OF 1960s

4 Ps classification Marketing Mypoia Lifestyles Broadened Concept of Marketing (Harris, p. 280- 281)

....MARKETING CONCEPTS OF 1970s

Social Marketing Positioning Strategic Marketing Societal Marketing Macromarketing Service Marketing (Harris, p. 281)

....MARKETING CONCEPTS OF 1980s

Marketing Welfare Internal Marketing Global Marketing Local Marketing Direct Marketing Relationship Marketing MegaMarketing (Harris, p. 281)

....MARKETING ENVIRONMENT
Marketing Functions 1) Environmental Analysis 2) Consumer Analysis 3) Product Planning 4) Price Planning 5) Promotion Planning 6) Place (physical distribution) planning (Finch, 2)

....MARKETING ENVIRONMENT
Marketing Mix (4 Ps) A combination of four variables which comprise an organizations marketing program 1) Product 2) Price 3) Promotion 4) Physical distribution (Finch, 2)

....MARKETING ENVIRONMENT
Market Segmentation: The idea is to look at consumer response behavior. Marketer wants to know what makes an individual respond to a given cue in the environment. Each group of consumers that responds in the same way is placed in a subgroup, or market segment (Ogden, p. 9). It is the process of dividing the total market into distinct submarkets or groups based on similarities in their wants, needs, behaviour or other characteristics

....MARKETING ENVIRONMENT
Market Segments are groups of customers who are similar to each other in a meaningful way and who will respond to a firms marketing mix similarly. (Finch, 2)

....MARKETING ENVIRONMENT
Target Market A group of people toward whom the organization or company decides to aim its marketing efforts. They are: - Willing to buy the product, - Are able to buy the product. (Ogden, p. 8)

....MARKETING ENVIRONMENT
Target Market is one particular group of potential cutomers that the organization seeks to satisfy with a product. Market at which the organization directs a marketing mix. Different marketing mixes are developed for each target market to satisfy their specific needs and wants (Finch, p. 3)

....MARKETING ENVIRONMENT
Product Differentation exists when a product or brand is perceived as different from its competitors on any tangible or intangible characteristics. It also refers to the strategy in which one firm promotes the features of its product over competitor in the same market. (Finch, p. 2)

....MARKETING ENVIRONMENT
Product Positioning: It refers to the decisions involved in shaping the products image in the customers mind. These images are defined relative to competing products. Consumer perceptions are the critical issues, not the actual differences btw products!!! (Finch, p. 3)

....MARKETING ENVIRONMENT
.....Product Positioning Once you have identified target markets and have established marketing objectives and strategies, you must develop market positioning for your product.

....MARKETING ENVIRONMENT
....Product Positioning By that you create an image in the minds of the target market, establishing the desired perception of product relative to the competition (Hiebing, Cooper, p. 121)

....MARKETING ENVIRONMENT
Positioning Approaches: 1) Attributes: a product or trait characteristic that sets the product apart form its competitors 2) Competitors: contrasting a particular brand relative to a competing brand 3) Use-or application: positioning based on an application or particular use

....MARKETING ENVIRONMENT
Positioning Approaches 4) Price-quality: Using price- quality to set a product apart from its competitors 5) Product user: distinguishing a product form its competitors based on who uses it 6) Product sales: identifying a particular product by the product class within which it wishes to compete 7) Cultural symbol: identifying a product with a well-known cultural symbol. (Clow and Baack, p. 129)

....MARKETING ENVIRONMENT
Marketing Plan It is the organizations statement of marketing strategy and the activities required to carry out the strategy. It identifies target markets and provide general guidelines for developing the marketing mix. (Finch, p. 3)

....MARKETING ENVIRONMENT
...Marketing Plan 1) Situation Analysis: identification of companys strengths and weaknesses as well as the opportunities and threats posed by the marketing environment. 2) Marketing Objectives: Based on Situation Analysis, MO for specific products or markets are established. (Finch, p. 3)

....MARKETING ENVIRONMENT
Marketing Objectives specify the goals of the firm. Both qualitative (market leadership, corporate image) and Quantitative (sales, profit, market share)

MO reflect the role of marketing in achieving company-wide objectives (Finch, p. 3)

10 STEPS TO MARKETING PLANNING

Step 1 BUSINESS REVIEW Company and Product Review Target Market Analysis Sales and Market Share Analysis Product Awareness and Attributes Purchase Rates and Buying Habits Distribution- Penetration Pricing Comparative Competitive Analysis Demand Analysis

10 STEPS TO MARKETING PLANNING

Step 2 PROBLEMS OPPORTUNITIES Step 3 SALES OBJECTIVES Step 4 TARGET MARKET Step 5 MARKETING OBJECTIVES AND STRATEGIES Step 6 POSITIONING

10 STEPS TO MARKETING PLANNING

Step 7 MARKETING MIX IMPLEMENTATION TOOLS Product/Service Branding Packaging Pricing Distribution Personal Selling Promotion Advertising Message Advertising Media Merchandising Publicity

10 STEPS TO MARKETING PLANNING

Step 8 MARKETING PLAN BUDGET AND CALENDAR Step 9 EXECUTION Step 10 EVALUATION (Hiebing, Cooper, 1992)

MARKETING COMMUNICATIONS PROCESS

Schramm (1960) Sender is the originator of the message. Agents, consultants. SOURCE OF COMMUNICATION Message:actual information and impressions that the sender wishes to communicate. CONTENT OF COMMUNICATION Media are vehicles or channels used to communicate the message without which there can be no communication. Media can take many different forms. CARRIER FOR MC Receiver who receives the message (Pickton and Broderick, p. 13)

....MARKETING COMMUNICATIONS PROCESS

Foundation of our understanding of MC Schramm (1960) Sender: Who? Message:Says what? Media: By which means? Receiver: To whom with what effect (Pickton and Broderick, p. 13)

....MARKETING COMMUNICATIONS PROCESS

One-way communications: Communications from a sender to a receiver with no feedback and dialogue. Two-way asymmetric communications: Communications from a sender to a receiver with little or delayed feedback, producing a non-direct dialogue. Two-way symmetric communications: Direct dialogue btw a sender and receiver of communications. (Pickton and Broderick, p. 14-15)

....MARKETING COMMUNICATIONS PROCESS

MCP is description of principal elements involved in the process of communication btw sender and receiver. Encoding Decoding Noise Interference Feedback (Pickton and Broderick, p. 182)

SOURCE CHARACTERISTICS
1) CREDIBILITY 2) ATTRACTIVENESS 3) POWER

SENDER CREDIBILITY
The degree to which communications are believed It has 3 components 1) Attractiveness (similarity, aspired similarity, familiarity 2) trustworthiness 3) expertise

(Pickton and Broderick, p. 182)

....MARKETING ENVIRONMENT
Environmental Analysis It is always dynamic and changing 1)Macroenvironmental factors. Both internal and external factors. (Old way is more external.) 2)Microenvironmental factors. It is immediate environment and surroundings in which MC occurs

....MARKETING ENVIRONMENT
Macroenvironmental factors 1) Demographics 2) Economic conditions 3) Competition 4) Social and cultural factors 5) Political and legal factors (government) 6) Technological factors (Finch, 4)

....MARKETING ENVIRONMENT
Macroenvironmental factors changes affecting MC 1) Computer technology 2) Communications technology 3) Fragmentation of media 4) Social change (demographics, lifestyles, attitudes, values, spending,expectations) (Pickton and Broderick, p. 104-106)

....MARKETING ENVIRONMENT
Macroenvironmental factors changes affecting MC 5) Changing roles and expectations of marketing 6) Manufacturing technology system 7) Changing national and international economies 8) International competition and markets- global brands 9) MC production technology 10) MC industry regulations (Pickton and Broderick, p. 108-109)

....MARKETING ENVIRONMENT
Microenvironmental factors are external forces which impact each specific company uniquely. These forces are largely uncontrollable, but an organization can influence these factors to a specific degree.

....MARKETING ENVIRONMENT
Microenvironmental factors 1) Suppliers 2) Marketing intermediaries 3) Target market

UNDERSTANDING MACROENVIRONMENT
PRESTCOM extended environmental and organisational analysis framework SWOT organisational analysis framework PEST environmental analysis (Pickton and Broderick, p. 102)

CHANGING ROLE AND EXPECTATIONS OF MARKETING

Relationship marketing Loyalty marketing Database marketing Push strategy Pull strategy (Pickton and Broderick, p. 108)

MARKETING COMMUNICATIONS
Advertising, promotion, corporate communications???? All the promotional elements of the marketing mix which involve the communications btw. an organization and its target audiences on all matters that affect marketing performance (Pickton, Broderick, p. 3)

...MARKETING COMMUNICATIONS
Communication with target audiences on all matters that affect marketing and business performance. Involves the management of marketing communication mix. (Pickton, Broderick, p. 3)

...MARKETING COMMUNICATIONS
Target market/target audience For marketing to be successful many people have to be involved in the communication process both within the organization and outside it. Therefore: target audience: those individuals or groups who are identified as having a direct or indirect effect on business performance and are selected to receive marketing communications (Pickton, Broderick, p. 3)

TARGET MARKET- TARGET AUDIENCE

Target markets describe customers, people who buy goods and services. They also describe consumers who use or consume goods/services. Publics term preffered by PR people. Referring to the many target audiences that communications may be focused towards. Segment Group of individuals who are expected to respond in a similar way to an organisations marketing activity.

(Pickton, Broderick, p. 10)

...MARKETING COMMUNICATIONS OR...

Promotions mix, promotional mix Definition of marketing communications mix: the range of activities/tools available to an organisation to communicate with its target audiences on all matters that affect business performance.

Marketing communications is wider than promotions Promotion is a short term for sales promotion Popular

(Pickton, Broderick, p.4)

...THE MARKETING MIX

Marketing Communications Advertising Marketing mix: range of marketing activities/tools that an organization combines and implements to generate a response from the target audience 4Ps 1) Product 2) Place 3) Price 4) Promotion (Pickton, Broderick, p.4)

...THE MARKETING MIX

Wayne deLozier (1976) was one of the first authors to strongly feature the role played by all the elements in the marketing mix in MC process (Pickton, Broderick, p.207)

...THE MARKETING MIX

Product both physical and in packaging terms Physical: size color, material, shape type of packaging Place refers to the channels of distribution Store image, atmosphere, location, layout point of sale displays Channel strategy intensive, selective, exclusive (p. 207) Price Promotion

CORPORATE COMMUNICATIONS VS MARKETING COMMUNICATIONS

Generic term is corporate communications of which MC is a part 1) Management Communication 2) Organizational Communication 3) Marketing Communications (van Riel 1995)

(Pickton, Broderick, p. 5)

INTEGRATED MARKETING COMMUNICATIONS

IMC put the customer in the center of marketing activities Integration of promotional mix elements so they work in harmony or synergy with each other. Synergy: the effect of bringing together MC elements in a mutually supportive or enhancing way so the resulting whole is greater than the sum of its parts. (Pickton and Broderick, p. 64)

INTEGRATED MARKETING COMMUNICATIONS

You may use more than one creative message or image, but they should be consistent

(Pickton and Broderick, p. 67)

FEATURES OF INTEGRATED MARKETING COMMUNICATIONS

1)

2)
3) 4) 5) 6) 7) 8)

9)

Clearly identified marketing communications objectives which are consistent with other organsiationla objectives Planned approach which covers the full extent of marketing communication activities in a coherent and synergistic way Range of target audiences Management of all forms of contact Effective management and integration of all promotional activities and people involved Incorporate all product/brand and corporate marketing communications efforts Range of promotional tools: including personal and nonpersonal tools Range of messages :Single consistent strategy, but not always a single standardised message. Range of media: any vehicle not just mass media

(Pickton and Broderick, p. 67)

BARRIERS TO IMC
1) 2) 3) 4) 5) 6) 7) 8) 9) Mindset Taxonomy and language Structure of organisations Elitism Magnitude of task Adequacy of budgets Manager ability Agency remuneration system Dimensions of integration

(Pickton and Broderick, p. 76)

ORGANISATIONAL BARRIERS TO IMC

1) 2) 3) 4) 5) 6) 7) 8) Lack of horizontal communication Functional specialisation Decentralization Lack of corpoarte direction and communication Lack of IMC planning and expertise Lack of budget Lack of database Fear of change

(Pickton and Broderick, p. 288)

STRUCTURES OF IMC
1) 2) 3) 4) 5) Anarchic structure Client-centered integration structure Federal integration structure Agency centered integration structure Centeralised client and lead agency structure

(Pickton and Broderick, p. 290-291)

BUYER BEHAVIOR
The creation of an appropriate marketing mix for a specific target market requires an understanding of consumer prefernces and decision-making processes. Marketers also need to be aware of how they can influence consumers decision-making thr. the use of marketing mix variables. (Finch, 16)

....BUYER BEHAVIOR
Involvement refers to the importance of which consumers attach the purchase of a particular product. There are several factors which may influence level of involvement in a purchase situation. - High-Involvement Decision Making - Low-Involvement Decision Making

....BUYER BEHAVIOR
High-Involvement Decision Making 1) Personally important product 2) Relatively expensive or high price 3) Lacks relevant information about the product 4) Risks associated with making a bad decision are high. 5) The product offers potentially great benefits to the buyer (Finch, 17)

.....BUYER BEHAVIOR
Low-Involvement Decision Making is characteristics of frequently purchased, low-priced goods

FACTORS INFLUENCING BEHAVIOR

1) Cultural 2) Social 3) Personal 4) Psychological

FACTORS INFLUENCING BEHAVIOR

1) Cultural - Culture, - Subculture, - Social class

FACTORS INFLUENCING BEHAVIOR

2) Social Factors - Reference groups: primary groups, secondary groups, aspiratinal groups - Family - Roles and Status

FACTORS INFLUENCING BEHAVIOR

3) Personal Factors - Age and life cycle stage - Occupation - Economic situation - Life Style - Personality and self concept

FACTORS INFLUENCING BEHAVIOR

4) Psychological Factors - Motivation (Freud, Maslow) - Perception: selective exposure, selective distortion, selective retention. - Learning - Beliefs and attitudes

THEORIES AND MODELS OF BUYER BEHAVIOR

Buyer-decision making Cognitive perspective Behavioral perspective

(Pickton and Broderick, p. 244)

....THEORIES AND MODELS OF BUYER BEHAVIOR

TOTAL SET AWARENESS SET EVOKED SET

(Pickton and Broderick, p. 244)

COGNITIVE MODELS
1) 2) 3) 4) 5) Problem definition Information search Evaluation of alternatives Purchase Post-purchase behavior

(Pickton and Broderick, p. 244)

BEHAVIOURAL PARADIGM
What is going in the mind is not achievable. The behaviorist approach suggest that stimuli are predominantly in the environment. MC activities should be focused on creating the correct environmental cues for the individual and on monitoring the responses to the guide to the future activity (benefits to be gained from the product) (Pickton and Broderick, p. 245)

HOW INDIVIDUALS PROCESS INFORMATION FROM THE ENVIRONMENT? The interpretation of the encoded messages is dependent upon a range of factors which may lead or may not to an accurate understanding of the messages intended. (Pickton and Broderick, p. 277)

ATTENTION- GENERATING DEVICES IN MARKETING COMMUNICATIONS

Movement Needs Novelty Position Sex Size Celebrities

Animals Babies Color Contrast Design Fear Humour Intensity

(Pickton and Broderick, p. 277)

ADAPTION/AD-WEAROUT
Adaption: Doubling the number of messages do not double the number of messages attended to. Ad-wearout: The impact of advertisement (or any other MC) declines when it is repeated.

DENOTATIVE-CONNOTATIVE MEANING
Denotative meaning: A meaning same for everybody Connotative meaning: A meaning that is not shared

EG: Strand cigarettes You are never alone with a Strand

THE INFLUENCES ON DECISION-MAKING

Personal Influences Demographic Situational Involvement Social Influences Reference group Culture/subculture

Psychological Influences Perception Ability, knowledge and experience Personality Attitudes

BUYER- DECISION PROCESS FOR NEW PRODUCTS

5 Stages in adopting a new product 1) Awareness 2) Interest 3) Evaluation 4) Trial 5) Adoption (p. 172)

INDIVIDUAL DIFFERENCES IN INNOVATIVENESS

Innovators: they are risk takers and tale the lead with the new products and experiences Early adopters Early majority Late majority Laggards: conservative Refer to: adopting products at different stages in life cycles. p. 268 and p. 173

ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR

1) Industrial markets 2) Reseller markets 3) Government markets Characteristics - Have fewer or larger buyers - More geographically concentrated. p. 200

MARKETING RESEARCH
Marketing Informations Systems Marketing Research Process Research Design and Data Collection

MARKETING RESEARCH
Marketing Information System (MIS) MIS are the methods and procedures used to collect, analyze, store and distribute marketing data and information on a systematic basis.

....MARKETING RESEARCH
1) 2)
3) 4) Marketing Research Process Identify new opportunities Explore or define problems confronting the firm Evaluate and refine marketing mix Study buyer behaviour

....MARKETING RESEARCH
Procedure to conduct Market Research 1) Problem definition 2) Situation analysis (primary data/secondary data) 3) Coding 4) Recommendations

....MARKETING RESEARCH
1) 2) 3) 4) 5) 6) 7) Research Design and Data Collection Sampling Primary vs secondary data Survey research Focus group Observation Experimental research Simulation

....MARKETING RESEARCH
Primary vs Secondary Research Primary research gathers data at first hand. Secondary data is any information not gathered for the immediate study at hand, but already collected for some other purpose. p. 350

....MARKETING RESEARCH
Characteristics Fits firms needs Cost of acquiring Speed in collecting Most recent information possible Multiple sources Secrecy from competitors Primary/Secondary Yes/ Seldom Expensive/Low cost Slow/Quick Yes/ No No/Often Yes/No

....MARKETING RESEARCH
Characteristics Response Rate Cost Interviewer bias Interactive Resp will to spend time Speed of data col. Anonymity of res. In person High Highest Yes Yes Yes Fast Lowest Mail Phone Low High Low High None Yes No Yes No No Slow Fastest High Low

....MARKETING RESEARCH
Qualitative Research Qualitative research is used to uncover concepts the why of a subject. Quantitative research is used to measure variables and their relationships-the how many question p. 352

....MARKETING RESEARCH
Market research is the means of providing accurate, impartial information to marketing decision makers and is necessary for the develepment and evaluation of marketing communications. P. 361

TARGET MARKETS
Market Characteristics - Who exactly are the consumers most likely to become users of a brand - Where are they located? - How they can be reached most efficently with MC tools? - When is the best time in the consumers life to apply the tools? Demographics Behavioral Dimensions Market Segmentation

TARGET MARKETS
Market Characteristics: To achieve the greatest benefit and competitive advanatge form target marketing, it is essential that the characteristics used to identify each market is measurable. Finch, 14) 1) Demographics

2) Behavioral Dimensions

.....TARGET MARKETS
Market Segmentation The process of dividing a market into homogeneous segments using one or a range of alternative segmentation methods, each segment being composed of customers or consumers sharing similar characteristics. p. 384

.....TARGET MARKETS
Market Segmentation 1) To define the market and find segments with it 2) To select the most profitable segments that can be served the most effectively and efficiently by the companys resources (targeting) 3) To communicate to that segment to appeal to their specific wants and needs better than competitors (positioning) (p. 384)

CHARACTERISTICS OF MARKET SEGMENTS

1) Measurable 2) Accessible or reachable through existing channels which are advertising media, channels of distribution or sales force 3) Each segment must be large enough to be profitable. (factors affecting profitability nature of industry, size of the firm, pricing structure) (Finch, p. 15)

SEGMENTS AS TARGET MARKETS

1) Single segment or concentration strategy 2) Multiple segmentation strategydifferentiated marketing 3) Undifferentiated or mass marketing (Finch, p. 16)

PRODUCT PLANNING AND MANAGEMENT

Product Classification: May be goods or services Consumer/industrial- business goods Targeted toward individuals and household for final consumption/Typically purchased for resale, operational needs or for use in further production Consumer Goods: Convenience/ shopping/speciality goods

...PRODUCT PLANNING AND MANAGEMENT

Services: consumer/industrial depending on the customers served Characteristics 1) Often intangible 2) Usually perishable 3) Frequently inseparable form the individuals who provide it

.....PRODUCT CONCEPTS
Tangible product consists of features which can be precisely specified Extended or Augmented product includes both the tangible and intangible elments of a product Product Line: Consists of a group or set of closely related items. Product Mix: A firms product mix is comprised of all the product lines that it offers.

.....NEW PRODUCT PLANNING

New Product Opportunites 1) Imitative or me too products 2) Modifications of existing products 3) Minor innovations 4) Major innovations

.....NEW PRODUCT PLANNING

1) Idea generation 2) Product screening and Concept testing 3) Business analysis and Product development 4) Test marketing and commercialization

.....PRODUCT ADOPTION AND DIFFUSION

Product Adoption process describes the stages which consumers go through learning about the new products It starts with the prospects initial awareness of the product. If interested, he/she will evaluate the perceived merits of the product and develop an opinion toward trying the product. P.A. takes place when the buyer decides to use the product regularly.

.....PRODUCT ADOPTION AND DIFFUSION

Product Diffusion Process describes the typical rate of adoption exhibited by consumers in response to new products 1) Innovators 2) Early Adopters 3) Early Majority 4) Late Majority 5) Laggards

.....PRODUCT LIFE CYCLE

It describes a pattern of changes which is characteristics of most products from their inception to their departure from the market. 1) Introduction 2) Growth 3) Maturity 4) Decline

.....PRODUCT PLANNING AND MANAGEMENT

Family brand when the same brand is applied to several products Individual Brand can be assigned each product when there exists significant variation in product type and quality Generic products: have no brand name at all Licensed Brand is a well established brand name which other seller pay to use. Trademarks are brand names, marks or characters used to identify products (p. 32)

BRAND MANAGEMENT
Branding is the strategy to differentiate products and companies and to build eceonomic value for both the conusmer and the brand owner Brand: the totality of what the consumer takes into account before making a purchase decision Growth of branding after the Civil War in USA with thegrowth of national firms and intl. Advertising Ranch Romans and Greeks

The aim of branding is to create impressions that diffrentiate products and companies by saying that one is notr just different from the rest, but in some respect better than the rest (Pickton and Broderick, p. 23)

Brand Equity
Brand Name

BRANDING STRATEGIES
A brand can identify one item, a family of items or the seller 1) Corporate umbrella branding: the organisation and all its products are branded under the same corporate name 2) Family umbrella branding: the organization has a corporate brand and a separate brand for its products 3) Range branding: a number of related products are grouped together under one bradn name 4) Individual branding: Each product is branded separately Trend? (Pickton and Broderick, p. 24)

SEVERAL DEFINITIONS
Corporate Personality: It is the soul, the persona, the spirit, the culture of the organisation manifested in some way.(Olins, 1990) Relatively enduring but... Mission statements Corporate personality is the raw material of the corporate identity. (Pickton and Broderick, p. 25)

SEVERAL DEFINITIONS
Corporate Identity is the means by which CP is projected, transmitted or communicated Outward signs: clothes and mannerism of the organisation CI is the basis on which the organisation is known and understood Deliberate/planned, intentional/unintentional, managed well or badly (Pickton and Broderick, p. 25)

SEVERAL DEFINITIONS
Corporate Image is the impression created by the corporate identity. Perception held by the organisation by its audiences. Identity is the sum of all the ways a company chooses to identify itself to all its publics. Image is the perception of the company by its publics. (Marguilles, 1977). CI is what is felt and thought about an organisation. Q: Is corporate image a single entity?

(Pickton and Broderick, p. 26)

COMPONENTS OF BRAND
Brand name Brand logo Brand identity manual

Golden Arch???

(Pickton and Broderick, p. 30)

CHARACTERISTICS OF GOOD BRAND NAMES

1) 2) 3) 4) 5) 6) 7) Suggest sth. about the products benefits Short and simple Easy to spell, read and pronounce Pleasant sounding Distinctive and memorable Appropriate to new products which may be added to the line at a later date Legally available for use

(p. 31)

BRAND EQUITY-VALUE
Brand Equity is the value of the brands name, symbols, associations and reputation to all target audiences who interact with it. The value of companys names and symbols Brand value: The financial expression of brand equity.

Key components that create brand equity are brand description, brand strength and brand future

(Pickton and Broderick, p. 33-34)

MANAGING BRAND EQUITY

1) Brand description: This is what the bradn represents depending on the associations, values, and beliefs the costomer has about the brand. It includes brands distinctiveness, perceived quality and the esteem with wihich it is held in the eyes of the consumer

(Pickton and Broderick, p. 35)

MANAGING BRAND EQUITY

Brand associations: Through the process of associations, brands have value. In many prodcut categories, there is little tangible differentiation. Task of the marketing communicator is to create a sense of difference, a sense of value and a competitive advantage. When customers have good associations with the brand, the brand is likley to be purchased higher. (Pickton and Broderick, p. 35)

MANAGING BRAND EQUITY

Brand associations: Eg.Nike athletic shoes durable Michael Jordan comfort the swoosh symbol

(Pickton and Broderick, p. 35)

MANAGING BRAND EQUITY

Brand values Functional appeal: Brands specific attributes or benefits capable of solving consumers current consumption-related problems Symbolic appeal:Consumers desire for self-enhancement, group membership, affiliation and belongingness Experiential appeal: the brands appeals to the consumers desire for sensory pleasure, variety and cognitive stimulation

(Pickton and Broderick, p. 37)

MANAGING BRAND EQUITY

2) Brand Strength The prominence and relative dominance of brand. Levels of awareness, brand history and loyalty are important elements within this context.

(Pickton and Broderick, p. 37)

MANAGING BRAND EQUITY

2) Brand Strength Generating awareness is the 1st step in any communication campaign. Awareness has to be created before interest, desire and action are created. Brand heritage is the corporate experience and reputation that a brand has acquired over time including its orgins and advertising development Brand loyalty: Core component of brand loyalty is the customers willingness to repeat purchase.

Handout 2.12 Loyalty ladder

(Pickton and Broderick, p. 39-40)

MANAGING BRAND EQUITY

3) Brand Future This reflects a brands ability to survive future changes in legislation, technology, retail structure, and conusmer patterns. It also indicates grwoth potential eg niche to mainstream or local to global

(Pickton and Broderick, p. 41)

BRAND PARITY
Occurs when there is perception that most products and services are essentially the same.

(Clow and Baack p. 25)

BRAND MANAGEMENT
Brand Management A group of core and peripheral brand values must be identified. An understanding of the distinct capabilities that distinguish the brand from competition is necessary to ensure effective positioning Brand values have to be effectively and efficiently be communicated to the target audience To manage the brand values over time. (Pickton and Broderick, p. 41)

Brand Familiarity exist on five levels

BRAND FAMILIARITY
1) 2) 3) 4) 5) Brand insistance Brand preference Brand recognition Brand non-recognition Brand rejection

PACKAGING
Packaging serves valuable functions for both buyers and sellers Functions 1)Protection 2)Promotion 3)Information

...PACKAGING
The clothing the product appears in. 3 major aspects of the visual impact of packaging 1) Attractiveness 2) Recognition 3) Differentiation

...PACKAGING FEATURES
Colour Typography Logo Type/material Shape and structure Label or mark Size (Pickton and Broderick, p. 602)

PRICING
Price Skimming is a strategy which introduces new products at high prices. Penetration Pricing uses low introductory prices to gain a large share of market more quickly. (This is more appropriate for new products which are similar to competing brands. p. 59

...PRICING
Influence of price: High prices relative to competing products convey impressions of quality Low prices can convey cheapness and poor quality The value of offering sales and the use of psychological pricing. p. 208

....PRICING
Pricing Decisions Cost-based pricing Demand-based pricing Competition-based pricing One-pace pricing Geographic Pricing Unit pricing

....PRICING
Psychological Pricing Prestige pricing Odd-even pricing Price-lining Leader Pricing

DISTRIBUTION
Companies choosing to distribute their goods and services directly to end customers and users face a very different communications task than those who operate thr. intermediaries such as agents, wholesalers and retailers.

....DISTRIBUTION
The longer the distribution chain becomes and the greater the number of distribution systems used, the more challenging the MC effort becomes ( Pickton, Broderick, p. 284)

....DISTRIBUTION
Push Strategy: Utilizes promotional efforts to secure the cooperation of intermediaries. Sales promotion, persoanl selling and advertising are directed twds persuading intermediaries

Pull Strategy: Generates consumer demand for the product as a means of securing support within the channel. Promotional efforts are targeted to the final consumer.(more appropriate for new products) (p. 37)

INFLUENCES ON CONSUMER PERCEPTION

PRODUCT: quality, styling, packaging design, brand name, guarantees and other features PRICE: discount pricing, extended credit, list price, payment period PROMOTION: advertising, personal selling, sales promotion, and PR PLACE: distribution channels/coverage and geaographic location (Pickton and Broderick, p. 605)

PROMOTIONAL STRATEGY
Promotion Planning Budget Advertising Publicity and Public Relations MPR (Marketing PR) Personal Selling Sales Promotion, merchandising and point of sale Sponsorhip, Event Marketing New Media Direct marketing Cause- Related Marketing Product Placement Ambush Marketing Exhibitions and Trade Shows

PROMOTIONAL STRATEGY
Promotion Planning. It means that the firm identifies the most appropriate Promotion Mix, Objectives and Budget Promotion Mix is comprised of those elements which contribute to the firms overall communications program Promotion Objectives: May addres three goals within the marketing mix. INFORM/PERSUADE/REMIND

BUDGET
Percentage of sales method Percentage of profit method Objective and task method Competitive match or follow up the leader model All you can afford model SWAG Method p. 40

MC MEDIA
MC media are all forms of media that can transmit marketing communication messages whether focused at a mass audience or at an individual The selection of right media is fundemental and vital to the success of MC A task of media planners is to reach the right audiences with the minimum wastage but with maximum effect. Internet no geographical boundaries global sclae low cost Packaging has MC impact Word of mouth is the process by which messages are communicated verbally form one perosn to the other. Anybody talkin about an organisation or its product is enagaging in WOM p. 205

CHARACTERISTICS OF MEDIA
Reaching a mass market Reaching a highly defined niche Creating awareness Attracting and holding attention Creating impact Developing a strong image Suitability for enhancing the brand Encouraging direct action Enhancing credibility and prestige Conveying detailed information Use as a reference source Appealing to many senses Create associations with certain values Creating favourable trade reaction being flexible in its us as a marketing communication media vehicle Suitability as a primary medium Availability Longevity p. 208

ADVERTISING
Advertising The use of mass media by an identified sponsor to deliver communciations to target audiences. (Pickton and Broderick, p. 76) Dev. or execution of any reminder, infromational or persuasive messages communicated to a targeted market thr a nonpersonal medium. Ogdan, p. 27

.....ADVERTISING PLAN
Advertising Objectives are determined by the marketing strategy for the product or firm. These objectives: 1) New product intro_ build brand awareness 2) Establish brand preference 3) Create and maintain brand loyalty 4) Market development 5) Build primary demand- industry sales 6) Increase product uses 7) Support the firms salesforce 8) Enhance the firms image. (Finch, p. 48)

p. 330

.....ADVERTISING
Must be dynamic Should develop from a stratetic point of view Creative Integrated Must be persuasive and informative (Ogden, p. 59)

.....ADVERTISING
Media planning - Choice of media type - Selection of vehicles within each medium Reach/frequency

PUBLICITY AND PR
Publicity utilizes the mass media. It is free but it must be directed. Publicity is unpaid and therefore does not have control over the content. It is a subfunction of PR

(Ogden, p. 28)

..... PUBLIC RELATIONS

Public Relations is the planned and sustained effort to establish and maintain goodwill and mutual understanding btw an organziation and its publics (Pickton and Broderick, p. 76)

..... PUBLIC RELATIONS

Public Relations functions: 1) Monitor internal and external publics 2) Provide positive information to each public 3) React quickly to any shift by any of the publics from the desired position (Clow and Baack, p. 486)

PUBLIC RELATIONS
Corporate PR vs Marketing PR Scope of work 1) Reputation management 2) Lobbying 3) Special events 4) Speech writing 5) Publication development

(Ogden, p. 146)

PUBLIC RELATIONS TOOLS

Corporate newsletters Internal communications Media news releases Stockholder correspondance Annual reports Special events Collaboration with internal publics

(Clow and Baack, p. 495)

MARKETING PUBLIC RELATIONS

MPR is the process of planning, executing and evaluating programs that encourage purchase and consumer satisfaction thr. Credible communication of information and impressions that identify companies and their products with the needs, wants, concerns and interest of consumers (Harris, 1991 p. 12)

SCOPE OF MARKETING PUBLIC RELATIONS

MPR plannig and management Media relations Publicity Publications Corporate communications Publci affairs and community relations Lobbying Sponsorship/donations Events management Crisis management Research and analyis (Pickton and Broderick, p. 493)

MARKETING/MPR/CPR Functional Responsabilities

Marketing Market assess. Segmentation Product dev. Pricing Distribution Service Consumer adv Sales promotion Sales (Harris, 1991 p. 38) MPR Product pub. Sponsorships Special events Public service Publications Media events Media tours Trade support CPR C. media rel. Investor rls. Gvn rel. Community rel. Employee com. Public affairs Advocacy adv.

MPR TACTICS
Awards Books Contest, competion and created events Chotchkes Demonstrations Exhibits Fan clubs (Harris, 1991, p. 80-81)

....MPR TACTICS
Festivals Grand openings Hotlines Interviews Junkets Key issues (Harris, 1991, p. 82)

....MPR TACTICS
Luncheons Meetings Museums Newsletters Official endorsement Product placement (Harris, 1991, p. 83)

....MPR TACTICS
Public service announcement Questionnaires Radio- trade for mention contests Road shows Sampling of products Symbols Tours Thons Vehicles (Harris, 1991, p. 84, 87, 88, 89)

....MPR TACTICS
VNRs Weeks Expert columns Youth programs Zone programs (Harris, 1991, p.91)

....MPR OBJECTIVES
Reinforce advertising and promotion Win consumer trust Create new news about old products Celebrate special occasions Defend products at risk (Harris, 1991)

.....PERSONAL SELLING
Personal Selling is utilized to generate the benefits of one-to-one communication. Dialogue so advantage of persuasion. Respond directly to needs and feedback (most expensive method per contact) (Ogden, p. 27)

.....PERSONAL SELLING
Seling process is a sequence of stages which are essential to effective personal selling 1) Prospecting 2) Pre-approach 3) Approach 4) Presentation 5) Meeting objections 6) Closing the sale 7) Follow-up (p. 52)

.....PERSONAL SELLING
Forms 1) Trade selling 2) Missionary selling 3) New business selling 4) Retail selling 5) Telemarketing (Ogden, p. 134)

.....PERSONAL SELLING
1) Hard Selling 2) Soft Selling 3) Consultative Selling (Ogden, p. 134)

SALES PROMOTION
Sales Promotion is associated with free offers, price deals, premium offers, and other promotions including merchandising, point-of sale displays, leaflets and product literature. Excludes adv, PR and personal selling (Pickton and Broderick, p. 76)

Consumer-directed Intermediary-directed

GROWTH OF SALES PROMOTION

1) 2) 3) 4) 5) 6) 7) Changing locus of control from manufacturers to retailers. Customers demand Emphasis on short term results Increased brand parity and price sensivity (more affcted by small changes in price) Reduced brand loyalty Market fragmentation Synergy

(Pickton and Broderick, p. 533-534)

SALES PROMOTION
Trade Promotion 1) Trade allowances 2) Cooperative advertising 3) Vendor support programs 4) Trade contests and incentives 5) Point of Purchase materials (POP) 6) Training Programs 7) Speciality advertising 8) Trade shows (Ogden, p. 89)

SALES PROMOTION
Consumer Sales Promotion 1) Sampling 2) Point of Purchase Coupons 3) In-pack or on-pack coupons 4) Premiums 5) Price-off promotions 6) Bonus packs 7) Refunds or rebates 8) Contests and sweepstakes 9) Tie-in promotions 10) Prodcut warranties or guarantees 11) Point of purchase displays

(Ogden, p. 89)

ADVERTISING/SALES PROMOTION/ MPR Exclusive functions

Advertising TV commercials TV program sponsorhip Rdai commercials Nwspaper ads Magazine ads Co-op advertising Business and trade press advertising Direct mail Direct response ads and commercials Outdoor advertising Telphone direct adv. Motion picture advertising Car cards (Harris, 1991 p. 39)

.ADVERTISING/SALES PROMOTION/ MPR Exclusive functions Sales Promotion Couponing Games, sweepstakes, rebates Patronage awards Price packs Prizes Premiums and incentives (Harris, 1991 p. 39)

.ADVERTISING/SALES PROMOTION/ MPR Exclusive functions

MPR News conference Media tours Newspapaer publicity Radio publicity Magazine publicity Television publicity Seminars and symposiums Surveys (Harris, 1991 p. 39)

.ADVERTISING/SALES PROMOTION/ MPR Overlapping functions

Adv Advertorials Promotional adv Free standing inserts In-store media POP Tie ins Contests Special events Booklets and brochure Public service tie-ins SP ..... ...... ...... ...... ...... ....... ....... ....... ....... MPR ........

........ ....... ......... ......... ..........

(Harris, 1991 p. 39)

ADVERTISING/SALES PROMOTION/ MPR Overlapping functions

SP Trade shows and exhibits Sampling Demonstrations Parades Festivals Sports event Entertainment sponsorhip AV presentations Meetings and conventions MPR

(Harris, 1991 p. 39)

NEW MEDIA
Usually mosty associated with new electronic media such as the Internet, Interactive TV and electronic media

NEW MEDIA
Cybermarketing term used to describe marketing activities using the new media Methods used in cybermarketing activities are 1) multimedia, computer animation and virtual reality 2) The Internet and the WWW 3) Digital and interactive television 4) CD-ROM/DVD p. 223 and p. 118-120

...NEW MEDIA
Cybermarketing benefits 1)Saves money and helps stretch the MC budget 2) Creates more direct access to customers 3) Customers are in conrol of the purchasing power 4) Rich information and interactive 5) Communication can be on line or off line 6) Offers instant reach, local, national or international 7)Equal access for business 8) Can be continuously available p. 226

...NEW MEDIA
Marketing uses of the Internet (Keeler 1995) 1) Sending messages 2) Transferring files 3) Monitoirng news and opinions 4) Searching and browsing 5) Posting, hosting and presenting information And 6) Advertising 7) PR and sponsorhip 8) Sales promotion 9) Direct sales 10) Exhibitions 11) Marketing Research 12) Developing closer links with custoers and target groups 13) Intranet-extranet p. 232-235

...NEW MEDIA
Pitfall of the net and the web 1) Poor targeting capabilities 2) Cost 3) Incompatible and marketing messages 4) Immaturity of the Internet medium 5) Conservative nature of customers 6) Communications speed 7) Search difficulties p. 236-237

DIRECT MARKETING
It is a speciality form of traditional marketing and often fell under advertising. An interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any time.

...DIRECT MARKETING
Objectives 1) Retention of current customers 2) Inducement of product trial 3) Brand switching 4) Increase dsales or usage volumes 5) Sales through direct response Ogden, p. 105

....DIRECT MARKETING
Allows for personalized communication. It can be utilized with many different media or with just one. Various forms Direct mail Telemarketing Direct-selling Direct- response advertising (Ogden, p. 29- 107-108)

SPONSORSHIP
When the company pays money to sponsor someone or some group that is participating in an activity Objectives 1) Enhance a companys image 2) Increase a firms visibility 3) Differentiate a company from its competitors 4) Showcase specific gods or services 5) Help a firm develop closer relationships with current and prospective customers. 6) Unload excess inventory (Clow and Baack, p. 499)

GROWTH OF SPONSORSHIP
1) Concern over traditionla promotional methods 2) Creation of favorable associations 3) Overcomes linguistic/cultural barriers 4) Wide target audience 5) Overcomes legal barriers. 6) Selective targeting (Pickton and Broderick, p. 513)

SPONSORSHIP
Sponsorhip is a contribution to an activity by a commercial organzisation in cash or in kind with the expectation of achieving corporate and marketing objectives. (Pickton and Broderick, p. 514)

EVENT MARKETING
Similar to sponsorship, but it occurs when the company supports a specific event. (Clow and Baack, p.503)

CAUSE-RELATED MARKETING
When a firm ties a marketing program into some kind of charity work or program, goodwill can be generated. Most consumers like the idea of businesses supporting worthy causes. (Clow and Baack, p. 492)

...CAUSE-RELATED MARKETING
The process of associating an organzisation with worthy causes. Marketing communications benefits are gained by supporting and being seen support worthwile causes. Realising commercial advantages as well. (Pickton and Broderick, p.522)

...CAUSE-RELATED MARKETING
Buy a companys product and it will make a donation on your behalf to some worthy cause. The purchase of a specific item or service transaction results in a contribution. OR label and coupon redemption. (Harris, 1991 p. 239)

PRODUCT PLACEMENT
Product placement is the process of arranging for a companys products to be seen or referred to in the media, such as during television and radio programs, cinema films, video games etc. It is a kind of a sponsorhip. (Pickton and Broderick, p. 501)

AMBUSH MARKETING
Organisation intentional effort to weken the effect of another sponsorhip 1) Sponsor emdia coverage 2) Sub- category within an event 3) Sponsor an individual athlete........

(Pickton and Broderick, p. 527 )

EXHIBITIONS AND TRADE SHOWS

Less considered areas of MC. Exhibition events birng together buyers and sellers under one roof in a way that is quite unique. To increase sales either directly on the stand or by follow-up. (Pickton and Broderick, p.616)

....EXHIBITIONS AND TRADE SHOWS

Selling activities or non-selling related activities more important? Enhancing corporate image is seen as the most important non-selling roles of exhibitions and trade shows.

(Pickton and Broderick, p.617)

MC EVALUATION
Reasons for evaluation 1) Increasing the value and the productivity of the campaign 2) Avoiding mistakes 3) Increasing the effectiveness of strategies and tactics

MC EVALUATION
Reasons for NOT evaluating 1) Cost 2) Objectivity 3) Time 4) Reliability and validity 5) What to test (Ogden, 164)

MC EVALUATION
OBJECTIVES To have an effective evaluation you must have objectives that are to be achieved. METHODS Many methods are used to evaluate campaign effectiveness. Think about evaluation prior to the campaign Timing of the evaluations are important Eg. Concept testing, copy testing

MC EVALUATION
2 broad categories of evaluation tools: 1) Message evaluations 2) Evaluating respondent behaviors (Clow and Baack, p. 582)

MC EVALUATION
2 broad categories of evaluation tools: 1) Message evaluations: are used to examine the creative message and the physical design of the advertisement, coupon or direct marketing piece. Actors and ind. in advertsiments and radio. Consider both the cognitive components associated with an ad (recall, recognition) and peripheral cues (emotions, attitudes) (Clow and Baack, p. 582)

MC EVALUATION
2 broad categories of evaluation tools: 2) Evaluating respondent behaviors Visible consumer actions including market store visits, inquiries or actual purchases. (measure using numbers)

(Clow and Baack, p. 582)

MC EVALUATION
Several levels when evaluating an advertising program - short-term outcomes (sales, redemption rates -long-term results (brand awareness, brand loyalty, brand equity - awareness of the overall company - attractive responses (liking the company and a positive brand image) (Clow and Baack, p. 583)

MESSAGE EVALUATION TECHNIQUES

1) Concept testing 2) Copy testing 3) Recall tests 4) Recognition tests 5) Attitude and opinion tests 6) Emotional reaction tests 7)Physiological arousal tests 8)Persuasion analysis (Clow and Baack, p. 585)

MC EVALUATION
1) Concept testing At the initial phase, managers are interested in the concept of the campaign. A good time for it is after market researh and situational analysis. Primary objective is to check on strategies.

(Ogden, p. 165-166)

MC EVALUATION
Several components of a marketing communications plan can be evaluated with concept tests. Copy or verbal component of an adv. Message and its meaning Translation of copy in an international ad Effectiveness of peripheral cues, such as product placement in the ad Values associated with an offer or prize in contest

(Clow and Baack, 586)

MC EVALUATION
COPYTESTING Is used to evaluate the impact of sepecific advertisements. The idea is to get feedback on the effectiveness of the specific ads before they are placed in the media. Called as pretesting. (Ogden, p. 166)

MC EVALUATION
RECALL TEST Involves asking the individual to recall what ads he or she reviewed in a given seting or time period. Day- after recall (usually unaided recall) Aided recall (Clow and Baack, p. 586)

MC EVALUATION
RECALL TEST Product name or brand Firm name Company location Theme music Spokesperson Tagline Incentive being offered Product attributes Primary selling point of communication piece. (Clow and Baack, p. 588)

MC EVALUATION
RECOGNITION TESTS Ind. Are given copies of an ad and are asked if they recognize it or have seen it before. Are asked to give additional details if they say they have seen the ad. How many saw the ad (recognition test) How many saw and who were interested to read or view the ad (recall test) (Clow and Baack, p. 589)

MC EVALUATION
ATTITUDE AND OPINION TESTS Deal with both cognitive and affcetive reactions of an ad. Can be used in conjuction witrh recall and recognition tests. Used to solicit consumer opinions. Opinions are gathered from surveys and focus groups. Also used for evaluation of sales promotions devices (Clow and Baack, p. 589)

MC EVALUATION
EMOTIONAL REACTION TESTS Positive emotions are likely to be remembered. Difficult to measure emotional impacts. One method: ask questions. Warmth monitor: joystick They are self-report instruments.

(Clow and Baack, p. 592-593)

MC EVALUATION
PHYSIOLOGICAL AROUSAL TESTS Measure fluctations in a persons body functions that are associated with changing emotions. These tests are: The psychologalvanometer(perspiration) A pupillometric test (dilation of a pupil) Voice-pitch analysis (examines changes in the pitch of persons voice (Clow and Baack, p. 594-595)

MC EVALUATION
PERSUASION ANALYSIS To appraise the persuasive ability of a marketing communications item. It requires pretest-post test.

(Clow and Baack, p. 595)

MC EVALUATION
BEHAVIORAL MEASURES Sales Redemption rates Test markets Purchase simulation tests (Clow and Baack, p. 599)

PR EVALUATION
1) Counting clippings 2) Calculating the number of impressions 3) Advertising equivalance technique. Limitations.... (Clow and Baack, p.604)

EVALUATING THE OVERALL PROGRAM

1) 2) 3) 4) 5) 6) 7) 8) Market share Level of innovation Productivity Physical and financila sources Profitability Manger performance and development Employee performance and attitudes Social responsability

(Source Peter Drucker in Clow and Baack, p.606)

MARKETING APPLICATIONS IN SPECIAL FIELDS

International Marketing Nonprofit Marketing

INTERNATIONAL MARKETING
Motivations to internationalise 1) Domestic market saturation, making it more expensive to gain market share 2) Limits placed on domestic growth in the home country by public policy limiting further growth in market share of an organisation 3) Identification of growth or niche opportunities in the international marketplace 4) Recognition of higher profits in the international marketplace bcs of differences in competitive and/or cost structure

....INTERNATIONAL MARKETING
5) Risk distribution across the international marketplace so that the organisation is not as susceptible to national economic cycles 6) Opportunities of buying power consolidation within the organisation thr.joint-buying agreements

INTERNATIONAL DIMENSIONS OF MC ENVIRONMENT

Examples Coke TV ownership, Internet access Culture: time Sub- culture Ethnocentrism and xenophilia

STANDARDISATION VS ADAPTATION
Standardization strategy: the use of similar or identical marketing communications across countries

Adaptation strategy: MC messages and media are changed from country to country to better suit the individual requirements of individual markets p. 127

STANDARDISATION VS ADAPTATION
4 Key Strategies 1) Global strategy is based on cultural similarities instead of differences. It is adopted if there is a high degree of homogenity both within a culture and btw cultures 2) Global niche startegy: Based on identification of a similar group og groups across countries UK students to be more similar to students in Greece, France...

....STANDARDISATION VS ADAPTATION
3) A multinational strategy: Strategy recognising cultural diversity to develop MC adapted to suit different cultures 4) Customisation strategy: Recognises the differences in consumers both within and btw cultures and therefore communicates on in individualised basis

IMPACT OF INTERNATIONAL CONTEXT ON MC

1) Symbols eg. color 2) Language- high-text communications/low text communications 3) Cultural Values Hoftede (1980)

Cultural Values Hoftede (1980)

1) 2) 3) 4) Power distance Uncertainity avoidance Femininity/masculinity Individualism/collectivism

NONPROFIT MARKETING
Marketing principles and practices are applied within a range of nonprofit organizations. Nonprofit marketing include the marketing of 1) Persons 2) Ideas 3) Organizations

REGULATION AND ETHICS

There can be extreme difficulty in determining what is and what is not ethical especially when the notion of social acceptability changes over time and varies from one culture or country to another. Perfectly acceptable MC in one country would ve banned another. p. 143

REGULATION AND ETHICS

Regulation fall into two 1) Legal 2) Self regulation (in UK more)

REFERENCES
Clow, K. E. and Baack, D. (2002). Integrated Advertising, Promotion and Marketing Communications New Jersey: Prentice Hall. Dommermuth, W.P. (1989) Promotion, 2nd ed. Boston: PWS- Kent Publishing Company Finch, J. E. (1992). The Essentials of Marketing Principles. Research and Education Association. Harris, T. L. (1991) The Marketers Guide to Public Relations New York: John Wiley and Sons.

...REFERENCES
Hiebing, R. G. And Cooper, W. S. (1992) The 1Day Marketing Plan. Chicago: NTC Business Books. Kotler, P. And Armstrong, G. (1987) Marketing: An Introduction, New Jersey: Prentice Hall Ogden, J. E. (1998). Developing a Creative and Innovative Integrated Marketing Communication Plan. New Jersey: Prentice Hall.

...REFERENCES
Pickton, D. And Broderick, A. (2001). Integrated Marketing Communications Essex: Prentice Hall Cases of MC from Turkish Public Relations Association.

MARKETING COMMUNICATIONS
PLAN

MC PLANNING
MC plan is a document that summariss the details of MC activities including relevamt background information and MC decisions

MC PLANNING
Mission: is the reason that the company or organization exists. It may include a series of goals or objectives that the organization wishesto achieve or strive for. Mission descibes the presnet condition of the company, defines the business and the industry

MC PLANNING
Vision: closely related to the mission statement but it looks to the future. Where does the company see itself in the future? It can be developed with input from all of the company and the stakeholders p. Ogden, 6-7

MC PLANNING
Objectives: end results to be sought Strategy: the general means by which objectives are intended to be achieved Tactics: Details of how strategies are intended to be achieved p. 409

8 PLANNING QS
1) 2) 3) 4) 5) 6) 7) WHERE ARE WE NOW? WHY ARE WE HERE? IF WE CARRY ON WHERE WE WLL BE? WHERE SHOULD WE BE? HOW DO WE GET THERE? ARE WE GETTING THERE? DO WE NEED TO CORRECT OUR COURSE? 8) HAVE WE REACHED OUR GOAL? p. 410

MC PLAN
Situational Analysis: Research Setting Objectives: Objectives Strategic Decision Making: Strategy Operational Decision Making: Tactics Campaign Evaluation: Control

SITUATION ANALYSIS
Where are we now?

SITUATION ANALYSIS
It is basically the history of the company. It should includecompnays growth, history, product offerings,sales volume, and markets. Also various environements that may have an impact on the organization. To fully understand the environemt, the marketing department world with various other departments and does environmental scanning. Ogden, p.7

OBJECTIVES
What are we trying to achieve? A marketing objective: To increase market share of brand A from x% to y% in z months An advertising objective: To demonstrate the versality of brand A.

OBJECTIVES (SMARRTT)
Specific Measurable Achievable Realistic Relevant Targeted Timed

STRATEGY
How could we get there? Marketing strategy: By continuing to improve product quality on the dimensions of taste and color Advertising strategy By givin examples of both in home and out of home usage

MAIN STRATEGIC APPROACHES TO MC

1) 2) 3) 4) 5) 6) Affective strategy Unique Selling Proposition (USP) Brand image strategy Resonance strategy Positioning strategy Generic strategy

p. 422-426 and Ogden, p. 65

TACTICS
What specific activities do we to do to get there? Tactics are the details of strategy. In MC tactics are the communications tools such as advertising, PR, direct mail etc.The tactics in the marketing communications plan list what happens, when and for how much.

FACTORS AFFECTING TACTICAL MC MIX CHOCE

1) 2) 3) 4) 5) Product life cycle Innovation diffusion Type of product Involvement Hierarchy of effects

p. 436

CAMPAIGN MANAGEMENT: ACTION

What resources are needed to get there? The development and continuous monitoring of the campaign The planning of resource acquisition in terms of people and budgets The planning of resource development in terms of time and money p. 334

CAMPAIGN EVALUATION: CONTROL

Are we getting there? What was expected to happen? What did happen? What was the effect of adv as separate from other factors? What were the reasons for success or failure? What should happen next? p. 334

10 STEPS TO MARKETING PLANNING

Outline Corporate Philosopy/description of company and product A. Corporate goals and objectives B. General company and product history C. Company organization

10 STEPS TO MARKETING PLANNING

Outline 2) Review of the consumer target market A. Demographics and lifestyle factors B. Product usage C. Heavy users D. Potential primary and secondary markets

10 STEPS TO MARKETING PLANNING

Outline 3 Review of the business-to business target market Target market segmentation Base segmenting Other methods of segmenting

10 STEPS TO MARKETING PLANNING

Outline 4 Sales Analysis Total sales Sales by brand or department Market share Store for Store sales for retailers Seasonality of sales Sales by geographic territory

10 STEPS TO MARKETING PLANNING

Outline 5 Product awareness and attributes Product awareness Product attributes

10 STEPS TO MARKETING PLANNING

Outline 6 Purchase rate, buying A) Purchase rates of the product category and your comapnys product by geographic markets B) Trading areas C) Brand loyalty D) Buying habits E) Trial and retrial

10 STEPS TO MARKETING PLANNING

Outline 7 Distribution A) Retail B) Package Goods C) Business-to business D) Service Firms

10 STEPS TO MARKETING PLANNING

Outline 8 Pricing A) Price of your product B) Sales by price point C) Price elasticity D) Cost structure

10 STEPS TO MARKETING PLANNING

Outline 9 Marketing review of your company vs competition A) Competitive information B) Strengths and weaknesses

10 STEPS TO MARKETING PLANNING

Outline 10 Demand Analysis A) Target market B) Geographical territory C) Consumption constraints D) Aver. Purchase per year per consumer E) Total purchase per year in category F) Average price G) Your companys market share