Marketing communications MIB Program Aliona N. Andreyeva Fall

Marketing communications MIB Program Aliona N. Andreyeva Fall Semester, 2009-2010

INDICATIVE LITERATURE George E. Belch, Michael A.Belch. Advertising and Promotion: An Integrated Marketing Communications Perspective, 6th ed., McGraw-Hill/Irwin, 2003. 8th ed., 2008.

INDICATIVE LITERATURE Kenneth E.Clow, Donald Baack. Integrated Advertising, Promotion, and Marketing Communications, Second Edition. 1998. 4th ed., 2009.

INDICATIVE LITERATURE Phillip J.Kitchen. Marketing Communications: Principles and Practice. Int. Thomson Business Press, 1998.

Marketing communications: principles, basic elements, instruments Definitions of marketing communications. Basic instruments of MarCom. Process of communication and its basic elements. Evolution of marketing communications concepts. World discussion on integrated marketing communications. Principles of effective marketing communications: target audience, choice of medium, message, budgeting, monitoring and control.

MARKETING Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Approved October 2007 (AMA, www.marketingpower.com)

COMMUNICATION 1. an act or instance of transmitting; 2. a verbal or written message; 3. a process by which information is exchanged between individuals through a common system of symbols, signs, or behavior; also : exchange of information; 4. a system (as of telephones) for communicating: a system of routes for moving troops, supplies, and vehicles; 5. a technique for expressing ideas effectively (as in speech); the technology of the transmission of information (as by print or telecommunication) (Meriam-Webster dictionary, www.m-w.com)

MARKETING COMMUNICATIONS A process by which product information is transmitted to the target audience PRODUCT INFORMATION TARGET AUDIENCE

MARKETING MIX PRODUCT PLACE Product characteristics, options, assortment, brand name, packaging, quantity, factory guarantee Different types of distribution channels, density of the distribution system, trade relation mix (policy of margins, terms of delivery, etc), merchandising advice PRICE PROMOTION Advertising Sales promotion Personal selling PR List price, usual terms of payment, usual discounts, terms of credit, long-term saving campaigns

MarCom: MAIN OBJECTIVES INFORMING Product Launch phase Explanations of Product’s features & benefits TARGET AUDIENCE REMAINDING Product Sales Growth phase Competitive positioning PURSUADING Product Maturity phase Applies to consumers’ memory (brand specific)

MarCom Mix PR Advertising Event Marketing Sponsorship Merchandising Product placement Communication Program Internet Mobile Communications Sales Promotions New Media POS materials

BASIC INSTRUMENTS ADVERTISING SALES PROMOTION PR DIRECT MARKETING EXHIBITIONS CORPORATE IMAGE PERSONAL SELLING SPONSORSHIP PACKAGING POS MATERIALS WORD-IN-MOUTH INTERNET PRODUCT PLACEMENT

Communication Theory SENDER MESSAGE Channel MESSAGE encoding Barriers or Noise decoding FEEDBACK RESPONSE RECIEVER

SENDER The party sending the message to another party Major parties in communication MESSAGE The set of messages the sender sends Major communication tool ENCODING Putting through into symbolic form One of communication function CHANNEL Communication channels message is sent through Major communication tool DECODING The process by which receivers assign meaning to the sender’s transmitted symbols RESEIVER RESPONSE NOISE FEEDBACK One of communication function The party receiving Major parties In communication the message (audience) Set of reactions following One of exposure/reception of message communication function (Un)planned static or distortion during process of communication Part of response transmitted back to the sender One of communication function

EVOLUTION OF MARKETING COMMUNICATIONS CONCEPTS MARKET MEDIA & COMMUNICATIONS CONSUMERS shift from mass marketing and product oriented concepts (1950-60) to

FOCUS ON CONSUMER DATA BASED MARKETING INTERACTIVE COMMUNICATIONS MEASURED RESULTS

INTEGRATED MARKETING COMMUNICATIONS 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. (AMA)

IMC Requirements Awareness of audience’s media habits and preferences Understanding of audience’s knowledge and beliefs about the product Use of coordinated media blend linked to a specific objective Key is a single, coordinated message and image thrust

IMC Synergy Better use of communication funds Balancing the ‘push’ and ‘pull’ strategies Improves the company’s ability – to reach – the right consumer – at the right place – at the right time – with the right message

Push & Pull Strategy push strategy – directs communication efforts at channel members – many products, such as business products, are promoted with a push strategy, involving personal selling and use of trade promotions pull strategy – directs promotion at the end consumer – most consumer products would rely more heavily on a pull strategy – where promotion is directed at the consumer to stimulate demand

PUSH STRATEGY Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer Retailer Retailer Consumer Consumer PULL STRATEGY Producer Producer Wholesaler Wholesaler Product flow Communication effort

What else is important? Segmentation Targeting Positioning

SEGMENTATION – A market segment is basically a set of individuals unique in some way or the other Sharing one or more common characteristics Having similar needs Responding to market conditions in the same manner Have similar behavioural patterns May or may not be belonging to – the same community, – group or – niche

TARGETING Selecting the target audience (TA) – for whom your product or service – is meant to be, most likely based on Age group Likes and dislikes Gender Socio-economic factors Geographic location

POSITIONING refers to the image your target audience has regarding your product or service as compared to your competitors It is all the more essential in today's setup, where literally no sector is devoid of an oligopolistic setup Primary, and in most cases, the ONLY objective: – To highlight your product's USP in the most striking manner

PRINCIPLES OF EFFECTIVE MARKETING COMMUNICATIONS WHO? WHERE? WHAT? HOW MUCH? Identifying the Target Audience Choice of Communication Channel Message Budget FORM – CHANNEL – PERIOD OF TIME Communication program design WHAT WAS IT? Monitoring & Evaluation

Identifying Target Audience Image analysis: Beliefs, Ideas, Attitudes, Impressions & Actions – regarding an object

Choice of communication channel CHANNELS PERSONAL NON PERSONAL EVENTS ADVOCATE MEDIA ATMOSPHERE EXPERT SOCIAL PRINT BROADCAST NETWORK ELECTRONIC DISPLAY

Design Message Message content Rational Emotional Moral Message structure One- Vs Two-sided arguments Conclusion drawing Order of Presentation

Design message Message Source Source credibility Endorser Message Format The message has to be considered depending on which media is going to be used – e.g. Layouts, props, models, music, voice, etc.

Establishing Marketing Communications Budget Affordable Method Percentage-of-Sales Method Competitive Parity method Objective-and-Task Method

Decisions on the Marketing Communication Mix Personal selling – direct presentation of a product to a prospective customer by a representative of the selling organization Advertising – A paid, impersonal mass communication with a clearly-identified sponsor Sales promotion – Demand-stimulating activity designed to supplement advertising and facilitate personal selling Public relations – A planned communication effort by an organization to contribute to generally favourable attitudes and opinions toward an organization and its products Publicity – A special form of public relations that involves news stories about an organization or its products

Measure the Communications Results Target audience is usually asked whether they recognize or recall the message

What else can influence MarCom Mix Type of product (service) – consumer or B2B Stage of product life cycle Level of consumer readiness to accept product (service) Promotion strategy (Push or Pull) Competitors MarCom Mix Financial resources

SUMMARY & KEY TERMS MarCom as process Linkage of Marketing Mix & MarCom Mix Basic instruments of MarCom (13) Communication Theory IMC theory Segmentation Targeting Positioning Principles of MarCom efficiency