Chapter 14

Marketing communications mix

1. Advertising 2. Sales promotion 3. Events and experiences 4. Public relations and publicity 5. Online and social media marketing 6. Mobile marketing 7. Direct and database marketing 8. Personal selling

Set the communications objectives

1. establish need for category - as necessary for removing or satisfying a perceived discrepancy between a current motivational state and a desired motivational state 2. build brand awareness - fostering the consumer's ability to recognize or recall the brand in sufficient detail to make a purchase (recall = important outside the store, recognition = important inside the store) 3. build brand attitude - helping consumers evaluate the brand's perceived ability to meet a currently relevant need. may be negatively oriented (problem removal, problem avoidance, incomplete satisfaction, normal depletion) or positively oriented (sensory gratification, intellectual stimulation, or social approval) 4. influence brand purchase intention - moving consumers to decide to purchase the brand or take purchase-related action

8 steps in developing effective communications

1. identify target audience 2. set the communications objectives 3. design communications 4. select channels 5. establish budget 6. decide on media mix 7. measure results 8. manage integrated marketing communications

The average city dweller is exposed to

3,000-5,000 ad messages a day. This shows there is rampant commercial clutter

Selecting the marketing communications mix

Advertising - reaches geographically dispersed buyers - builds up long term image for a product - triggers quick sales Sales promotion - uses tools to draw a stronger and quicker buyer response - 3 key benefits are that it draws attention to the product, provides an incentive that gives value to the customer, and invites the customer to engage in the transaction now Events and experiences - consumer is often personally invested in the outcome - more actively engaging for the consumers and are typically an indirect soft sell Public relations and publicity - effective when coordinated with the other elements - appeal based on high credibility, ability to reach prospects who avoid mass media and targeted promotions, and ability to tell the story Online and social media marketing - can be information or entertainment rich - can be changed or updated depending on response - can be prepared and diffused quickly Mobile marketing - distinguished by its ability to be timesenstive, reflecting where a consumer is - can reach and influence consumers as they are making a decision Direct and database marketing - including "big data" allows for more personal and relevant marketing communication - can be personalized for recipients - used to create attention and inform consumers with a call to action - offer information that helps other communications Personal selling - most effective tool at later stages of the buying process - can be customized for individuals - relationship oriented - response oriented

4 Methods of Budgeting

Affordable method - setting the communications budget at what managers think they can afford --- ignores the role of marketing communications as an investment and the immediate impact on sales volume, leads to an uncertain annual budget making long range planning difficult Percentage-of-sales method - setting expenditures at a specified percentage of current or anticipated sales or of the sales price --- views sales as the determiner of communications rather than the result, leading to a budget set by funds availability rather than market opportunities, discourages experimentation with countercyclical communication or aggressive spending, no logical basis for choosing the specific percentage and the budget does not identify what each product and territory deserves Competitive-parity method - setting communications budgets to achieve share-of-voice parity with competitors --- no grounds for believing competitors know better, no evidence that budgets based on competitive parity discourages communication wars Objective-and-task method - setting the budget by defining the specific objectives, identifying the tasks that must be performed to achieve the objectives and estimating the costs of performing them --- requires management to spell out its assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage

4 classic response hierarchy models

Assume the buyer passes through cognitive, affective, and behavioral stages in that order. This "learn-feel-do" sequence is appropriate when the audience has high involvement with a product category perceived to have high differentiation (ex. cars) The "do-feel-learn" sequence is relevant when the audience has high involvement but perceives little or no differentiation within the product category (ex. airline tickets) "learn-do-feel" is relevant when the audience has low involvement and perceives little differentiation (ex. salt)

Coordinating media

Can occur across and within media types, should be combined through multiple-vehicle, multiple-stage campaigns to achieve max impact and increase message reach and impact

Nonpersonal (mass) communications channels

Communications directed to more than 1 person and include advertising, sales promotions, events and experiences, and public relations

Establishing the total marketing budget

Four common methods - affordable method, percentage-of-sales method, competitive-parity method, and objective-and-task method Tend to be higher when there is low channel support, the marketing program changes greatly over times, many customers are hard to reach, customer decision making is complex, products are differentiated and customer needs are nonhomogeneous, and purchases are frequent and quantities small Should establish the total budget so the marginal profit from the last communication dollar just equals the marginal profit from the last dollar in the best noncommunication use

Message strategy

In selecting message strategy, management searches for appeals, themes, or ideas that will tie in to the brand positioning and help establish points-of-parity or points-of-difference. Some of these appeals or ideas may relate directly to product or service performance (the quality, economy, or value of the brand); others may relate to more extrinsic considerations (the brand as being contemporary, popular, or traditional)

Marketing Insight: Playing tricks to build a brand

LG and Samsung had creative student (or reality pranks) that went viral and entertainingly reinforced key benefits that made up the brand positioning

Selecting the communications channels

May be personal or nonpersonal, have subchannels

Factors in setting the marketing communications mix

Must consider: type of product market, consumer readiness to make a purchase, and stage in the product life cycle Customer comprehension is primarily affected by advertising and publicity Customer conviction is influenced mostly by personal selling introduction stage - advertising, events, and experiences THEN personal selling, sales promition, and direct marketing to induce trial growth stage - word of mouth and interactive maturity stage - advertising, events, experiences, and personal selling decline stage - sales promotion continues strong, other comm tools reduced, salespeople give the product only minimal attention

Integration of communications channels

Personal communication is often more effective than mass communication, but mass communication can affect personal attitudes and behavior. Ideas often flow first from radio/tv/print to opinion leaders or consumers highly engaged with media then from these influences to less media-involved population groups -- influence of mass media on public opinion is not as direct, powerful, and automatic as marketers have supposed -- challenges the notion that consumption styles are primarily influenced by trickle down or trickle up effect from mass media -- mass communicators should direct messages to opinion leaders and let them carry the message to others

Personal communications channels

Personal communications channels - let 2+ persons communicate face-to-face or person-to-audience through a phone, email, or mail -- advocate channels: consist of company salespeople contacting buyers in the target market -- expert channels: consist of independent experts making statements to target buyers -- social channels: consist of neighbors, friends, etc, talking to target buyers A study by Burson-Marsteller and Roper Starch Worldwide found that one influential person's word of mouth tends to affect the buying attitudes of 2 other people on average - this jumps to 8 online; carries great weight when products are expensive, risky, or purchased infrequently OR when products suggest something about the user's status or taste

Message source

The source's credibility is crucial to the message's acceptance. 3 most often identified source's of credibility are expertise, trustworthiness, and likability Expertise - specialized knowledge the communicator possesses to back the claim Trustworthiness - how objective and honest the source is perceived to be Likability - the source's attractiveness measured in terms of candor, humor, and naturalness Messages delivered by attractive or popular sources can achieve higher attention and recall, but may not add realism or help with skepticism If a person has a positive attitude toward a source and a message or a negative attitude toward both, a state of congruity is said to exist; the principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience

Integrated Marketing Communications (IMC)

a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time evaluates the strategic roles of a variety of communications disciplines and combines them seamlessly to provide clarity, consistency, and maximum impact of messages

Mobile marketing

a special form of online marketing that places communications on consumer's cell phones, smart phones, or tablets examples: text messages, online marketing, social media marketing

Advertising

any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print media (newspapers and magazines), broadcast media (radio and tv), network media (phone, cable, satellite, wireless), electronic media (audiotape, videotape, videodisk, CD, web page) and display media (billboards, signs, posters) examples: print and broadcast ads, packaging outer or inserts, cinema, brochures and booklets, posters and leaflets, directories, reprints of ads, billboards, display signs, point-of-purchase displays, dvds

Implementing integrated marketing communications process

can produce stronger message consistency and help build brand equity and create greater sales impact, forces management to think about every way the customer comes in contact with the company, how the company communicates its positioning, the importance of each vehicle, and timing issues gives someone the responsibility - where none existed before - to unify the company's brand images and messages as they are sent through thousands of company activities should improve the company's ability to reach the right customers with the right messages at the right time and in the right place

Events and experiences

company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities examples: sports, entertainment, festivals, arts, causes, factory tours, company museums, street activities

Micromodels of the communications process

concentrate on consumers' specific responses to communications

Personal selling

face-to-face interaction with prospective purchasers for the purpose of making presentations, answering questions, and procuring orders examples: sales presentations, sales meetings, incentive programs, samples, fairs and trade shows

Identifying the target audience is critical because

it determines what to say, how, when, where, and to whom can conduct image analysis by profiling the target audience's brand knowledge

Measuring communication results

measure by asking members of the target audience whether they recognize or recall the message, how many times they saw it, what points they recall, how they felt about the message, and what are their previous and current attitudes toward the product and company should also collect behavior measures of audience response such as how many people bought the product, liked it, and talked to others about it

Online and social media marketing

online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services examples: web sites, email, search ads, display ads, company blogs, third party chat rooms/forums/blogs, facebook, twitter, youtube

Communication options appear in

paid media (traditional outlets like TV, print), owned media (company-controlled options like websites, apps), and earned media (virtual or real world word of mouth, press)

Public relations and publicity

programs directed internally or externally to promote or protect a company's image or its individual product communications examples: press kits, speeches, seminars, annual reports, charitable donations, publications, community relations, lobbying, identity media, company magazine

Macromodel of the communications process

sender, encoding, message, media, decoding, receiver, feedback, response, and noise

Sales promotion

short-term incentives to encourage the purchase or sale of a product or service including consumer promotions (samples, coupons, and premiums), trade promotions (advertising and display allowances), and business and sales force promotions (contests for sales reps) examples: contests, games, sweepstakes, lotteries, premiums and gifts, sampling, fairs and trade shows, exhibits, demonstrations, coupons, rebates, low-interest financing, trade in allowances, continuity programs, tie-ins

Marketing communications

the means by which firms attempt to inform, persuade, and remind customers - directly or indirectly - about the products and brands they sell can also contribute to brand equity - by establishing the brand in memory and creating a brand image - as well as drive sales and even affect shareholder value

Communications represent

the voice of the company and its brands

Creative strategy

the way marketers translate message into specific communications. Informational or transformational appeals. An informational appeal - elaborates on product or serve attributes or benefits; ask questions and allow readers/viewers to form their own conclusions. Two sided messages are more effective with more educated audiences than those who are initially opposed A transformational appeal - elaborates on a nonproduct-related benefit or image; might depict what kind of person uses a brand or what kind of experience results from use; often attempt to stir up emotions that will motivate purchase and may use negative appeals like fear, guilt, or shame or positive appeals like humor, love, or pride Attention getting tactics (like are seen in motivational or borrowed interest devices like babies or puppies) may detract from comprehension, wear out the welcome fast, or overshadow the product

Direct and database marketing

use of mail, phone, fax, email or internet to communicate directly with or solicit response or dialogue from specific customers and prospects examples: catalogs, mailings, telemarketing, electronic shopping, tv shopping, fax, catalogs

Answer three questions to design communications

what to say (message strategy) how to say it (creative strategy) who should say it (message source)