MKTG101 Marketing Fundamentals
Week 11 Marketing Communications I
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Integrated marketing communications
A concept of marketing communications planning that uses of a variety of communications disciplines – like: general advertising, direct response, sales promotion, and public relations and combines these disciplines to provide clarity, consistency, and maximum communications impact
American Association of Advertising Agencies MKTG101 2005 Week 11
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Integrated marketing communications
Objective: to have all of a company’s marketing and promotional activities project a consistent, unified image to the marketplace – eg Mercedes MV’s mktg plan and promo mix => prestige
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Reasons for the growth of IMC
Marketing shifts: • from advertising to other forms of promotion – POS - POP • from mass market channels to lowercost, more targeted tools - B2C • in marketplace power from manufacturer to the channel (distribution)
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Reasons for the growth of IMC cont.d
Marketing shifts: • rapid growth and development of database marketing - RDBMS • demands for greater accountability from ‘outsourced’ agencies eg changes to agency compensation • rapid growth of alternative media, especially the Internet/Intranet/Extranet
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Components of the Communications Mix
Advertising Personal Selling
Public Relations
Sales Promotion
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Relative importance of marketing communication tools
Consumer Markets B2B Markets
Advertising Sales Promotion Direct & Online Personal Selling Public Relations
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Personal Selling
Direct & Online
Sales Promotion
Public Relations Advertising
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The communication process
Noise Noise Noise Noise Noise Noise Noise Sender Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Encoding Feedback Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Message The Noise Noise Noise Noise Noise Noise Noise Channel Media Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Response Decoding Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Receiver MKTG101 2005 Week 11 9 Noise Noise Noise Noise Noise Noise Noise
Elements in the communication model
Sender: The party sending the message to another party. Origin of the message Encoding: The process of putting thought into symbolic form
Message: The set of symbols that the sender transmits.
Media: The communication channels through which the message moves from sender to receiver
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Elements of the communications model cont.d
Decoding: The process by which the receiver assigns meaning to the symbols encoded by the sender Receiver: The party receiving the message sent by another party Response: The reactions of the receiver after being exposed to the message
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Elements of the communications model cont.d
Feedback: That part of the receiver's response communicated back to the sender
Noise: The unplanned static or distortion during the communication process that results in the receiver getting a different message from the one which the sender sent
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Advertising
Advertising: the paid communication of a standard message to an audience with the intention of influencing their behaviour
- One way communication – Purchased time/space – Mass media – Standard message – Identified sponsor
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The 5 Ms of marketing communication
Mission
– Setting objectives – Target audience – BL’s (Brand Loyals) , BS’s (Brand Switchers) , OBL’s (other brand loyals) & NCU’s (New Category Users) – Response – Batt (Brand Attitude), BAwa (Brand Awareness), BPI (Brand Purchase Intention)
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The 5 Ms of marketing communication
Message
– Content – what’s in the message – ‘what is the message’ – Structure – How the message is put together – Execution – How it was delivered – the media and the media vehicle
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The 5 Ms cont.d
Media
– Reach and frequency – Media selection
Money
– Setting the budget
Measurement
– Collecting feedback – Assessment
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Communication objectives
Objective: A specific communication task to be accomplished with a specific target audience in a specific period of time. Typical objectives:
– Sales – Building Brand Awareness – Re-enforcing Brand Attitude – Consumer Preference levels
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Target audience
The focal point of the marketing mix. The group intended to receive the message Factors of interest in Target:
– Numbers in the target – Characteristics of target – Media behaviour of targets
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Audience responses
Stages AIDA Hierarchy of Affects Awareness Knowledge Interest Affective Liking Preference Conviction Interest Evaluation Trial Behavioural Action Purchase
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Innovation Adoption Awareness
Awareness Cognitive
Thinking
Desire
Feelings
Adoption
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Actions
Message appeals
Affective
Logical
Rational Appeals Emotional Appeals
Message Content Decisions
Virtue
Moral Appeals
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Message structure
Deduction-based
Draw Argument Conclusions Key Order Message Structure Decisions
Sequence
Argument Type
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Fact, supposition, inference
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Message execution
Testimonial Evidence Slice of Life
Scientific Evidence
Technical Expertise Personality Symbol
Typical Message Execution Styles
Lifestyle
Fantasy
Mood or Image Musical
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Message execution
Slice-of-life: shows one or more people using the
product in a normal setting – Toyota, Coke.
lifestyle - Coke.
Lifestyle: shows how a product fits in with a Fantasy: creates a fantasy around the product or
its use - Flyspray.
Mood or image: builds a mood or image around
the product, such as beauty, love or serenity Fashion.
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Message execution cont.d
Musical: associates music with the product to
build mood or to be more memorable – “oh what a feeling’. represents the product – Ferrari’s prancing horse.
Personality symbol: creates a character that
Technical expertise: shows the company’s
expertise in making the product - Laptops
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Message execution cont.d
Scientific evidence: presents survey or
scientific evidence to support the brand’s claims - Nurofen.
Testimonial evidence: features a highly
believable or likeable source endorsing the product - Nike.
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Selecting media
Word of Mouth Personal Media Non-personal Media Opinion Leaders
Major Media
Events
Atmospheres
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Selecting advertising media
Reach Key Issues in Selecting Media Frequency
Media Vehicles
Media timing
Media Impact
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Media planning
Reach: the proportion of the target audience exposed to the message Frequency: the average number of times the message is exposed to the average audience member
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Media timing
Options include:
Maintenance Flights Bursts
Influencing factors:
Market situation Competitive situation Seasonality Budget
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Media impact
The impact achieved by a specific media plan will be affected by:
– Proliferation of media – Changing audience behaviour – Environment effect – Product characteristics – Audience characteristics – Competitive situation
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Media vehicles
Broadcast
– TV
• Free to air • Cable • Metropolitan/Rural
– Radio
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Media vehicles cont.d
Print
– Newspapers
• Regional/national • Local
– Magazines
• General interest • Specialist
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Media vehicles cont.d
Out of Home (Outdoor/Transit)
– Posters – Building signage – Bus/Taxi – Mobile posters – Skywriting – Footpath/stairways – Bridges
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Media vehicles cont.d
Other:
– Internet – pop-ups – Mobile phones – video streaming
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Setting the communications budget
Percentage of Sales
Marginal
Methods for Budgeting Promotion
Competitive Parity
Objective & Task
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Budget methods
Percentage of sales: a predetermined
percentage of turnover
Competitive parity: parity or some
percentage of competitors’ expenditure
Marginal approach: spend until marginal
revenues match marginal expenditure
Objective and task: determine the tasks
necessary to achieve the objectives
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Measurement
Monitoring and assessment:
– The extent of achievement of the objectives, in line with timetable and budget – The net improvement in the product’s situation resulting from the successful execution of the communications strategy
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Ethical issues
Deception
Manipulation Exploitation
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