West, Ford & Ibrahim: Strategic Marketing

Chapter 11

Marketing Communication
Strategies
 Structure
Figure 1.2: The Book’s Structure

A. INTRODUCTION

1. Overview
2. Marketing Strategy - Analysis &
Perspectives

C. WHERE DO YOU WANT TO BE?

B. WHERE ARE WE NOW?
4. Strategic Marketing Decisions & Choices
3. Environmental Analysis: Market 5. Segmentation, Targeting
Information and Intelligence & Positioning Strategies
6. Relationship Strategies

E. DID WE GET THERE? D. HOW WILL WE GET THERE?

13. Strategy Implementation, Control 7. Product Innovation & Development

& Financial/Quantitative Analyses 8. Branding Strategies
9. Service Marketing
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing

F. CONCLUSION

14. Social Marketing & CSR

 Objectives
• Assess where sit marketing communications
within overall marketing strategy
• Examine the key elements in the MARCOMS
process
• Provide a strategic view of MARCOMS with a
focus on the creative brief
• Assess the key issues in media choice and use
• Review the operational issues in implementing a
MARCOMS strategy
 Agenda
• Introduction
• IMC
• AUDIT
• Establishing the Strategy
• Creative Execution
• Media Strategy
• How Much to Spend?
• Operations
 Introduction
• MARCOMS are central to Porter’s generic cost-
differentiation focus strategies framework and refer to
four central types of media:
– Advertising
– Direct marketing
– PR
– Sales promotions
• There are two layers to explore in using these four
media in MARCOMS strategy relating to:
– What the client wants to ‘say’
– ‘How’ you say it
 MARCOMS and Cost
•• Short-run
Short-run aa client
client can
can spend
spend money
money onon MARCOMS
MARCOMS to to help
help
justify
justify aa price
price increase
increase or or increase
increase volume,
volume, but
but this
this will
will only
only add
add toto
costs
costs
•• Medium
Medium to to long-term
long-term MARCOMS
MARCOMS can can support
support price
price through
through
brand
brand preference
preference and and provide
provide some
some competitive
competitive protection
protection forfor aa
brand
brand
•• Furthermore,
Furthermore, increased
increased volume
volume cancan be
be encouraged
encouraged by by pointing
pointing
out
out new
new uses
uses for
for the
the brand
brand or
or by
by targeting
targeting new
new markets
markets
•• Successful
Successful MARCOMS
MARCOMS can can lead to higher sales and in turn
economies
economies of of scale
scale
•• MARCOMS
MARCOMS can can also
also directly
directly reduce
reduce costs
costs through
through replacing
replacing (or(or
increasing
increasing thethe efficiency)
efficiency) of
of an
an organisation’s
organisation’s routes
routes to markets
markets
and
and inin reducing
reducing market research
 MARCOMS and Differentiation
••Central
Central to to spending
spending on on MARCOMS
MARCOMS
••Despite
Despite the the conventional
conventional wisdom
wisdom that
that lots
lots of
of products
products andand
services
services are at parity, there are are probably
probably more
more differences
differences in
in
offerings
offerings today
today than
than ever
ever before
before
••IfIf you
you take
take anyany consumer
consumer or or business
business market,
market, the
the amount
amount ofof
choice
choice is is substantial
substantial and
and often
often impossible
impossible forfor buyers
buyers toto cognitively
cognitively
process
process
••MARCOMS
MARCOMS provides provides organisations
organisations with
with the
the possibility
possibility of
of
establishing
establishing their their position
position with
with the market
market and and asserting
asserting their
their
distinctiveness
distinctiveness
••At
At heart
heart all
all organisations,
organisations, be be they
they for
for or
or not-for
not-for profit,
profit, seek
seek to
to
establish
establish aa point
point of
of difference
difference
 IMC
“A concept of marketing communications planning that
recognizes the added value of a comprehensive plan
that evaluates the strategic roles of a variety of
communications disciplines, e.g., general advertising,
direct response, sales promotion and public relations-
and combines these disciplines to provide clarity,
consistency and maximum communications impact.“
The American Association of Advertising Agencies

GM case let and Mark Twain’ comments on page 335-

36.
Mini case study 11.1 page 337
 MARCOMS S tra te gic P roce s s
PESTLE
AUDIT
Competitors
SWOT
SWOT

Strategic
Strategic Intent/Objectives
STRATEGY Intent/Objectives

Segment/Target
Segment/Target
Position

Proposition Media
Media Classes
Classes
Creative Execution
Execution Media Execution

Pre-Test
Post-Test
Post-Test
OPERATIONS Contingency
Contingency
International
Bra nd Whe e l
Features Preference, but
Benefits not loyalty

Values Relationship &

loyalty
Personality

Key Core of the

Reward claim
Example of Brand Wheel Focus
 The Task

Isolate, in a simple statement why the

advertising will have worked:
•Increase sales
•Generate leads
•Increase/maintain share
•Stop decline
•Justify price
•Announce/Launch
•Corporate reputation
 Establishing the Strategy
Expand the Problem to a Higher Level
• 4) Product Definition (For new product):
– Make the central benefit salient (again?)
• 1) Performance Superiority (USP):
– Solve a problem or better fulfill a desire
• 2) Emotional Selling Proposition (ESP):
– Help brand matter to the consumer
• 3) Cultural Identification:
– Make the brand part of consumer’s world
• Paradigm Shift:
– Alter the consumer’s definition of
category
 Types of MARCOMS Objectives

• “Exposure message to ...”

• “Create 40% awareness amongst...”
• “Create attitude/opinion that...”
• “Increase preference amongst...”
• “Encourage trial amongst...”
• “Re-enforce loyalty amongst..”
 Exposure

• The desired level of frequency (OTS =

Opportunity to See) and coverage to achieve
the advertising objectives
• Most agencies seek an average of 2-3 OTS’s
amongst the target market in order to give
advertising a chance to work
 Example: 4 Week Campaign

Objective Post-Evaluation

•cover 60% of the mkt •52% Coverage

•4 OTS’s •4 OTS’s
 Awareness

Spontaneous:
An open-ended question, “tell me
of all the major supermarkets
that you have heard of...”
“Any more?”
“Is that all?”
 Prompted

“Which one or ones of the following

supermarket chains have you heard of?”

• Tesco
• Sainsbury’s
• Waitrose
• Asda
• Jeffrey’s
 Final Evaluation

Spontaneous Prompted
pre-campaign 25% 86%
objectives 31% 88%
post-campaign 32% 88%

[In this case the campaign would be said to be

a success]
Describe Who We’re Talking To

• A person, not a
“target”
• Beyond reports -
talk to customers
• Paint a personal
picture
• What’s really
important to them?
 Sources of a Proposition
• product characteristics
• user characteristics
• ways of using the product
• how product is made
• surprising points about the product
• price characteristics
• image characteristics
• satisfying psychological/physiological needs
• product heritage
• disadvantages of non-use
• direct comparisons with rivals
• product comparisons
• newsworthiness
• generic benefits
 What Proposition Will Do This?

• Specific core benefit brand delivers

• Key emotion, reason or blend
• Keep it singular
 A good proposition
• Gives creatives an ‘angle’ or way in
• Forces a strategic choice
• Is single-minded not all encompassing
• Is based on a truth (Rational or Emotional)
• Is original, or expressed in an original way
• Is liberating not limiting
• Isn’t an end-line
 MARCOMS Overview
MEDIUM DEFINITION
ADVERTISING A paid for communication by an identified
sponsor with the aim of informing and
influencing one or more people.
DIRECT The recording, analysis and tracking of
MARKETING customers’ direct responses in order to
develop loyalty.
PR The formulation, execution and sustained
effort to establish and maintain
goodwill and mutual understanding and
reciprocal goodwill between an
organisation and its stakeholders.
SALES An incentive for the customer, sales force
PROMOTIONS or distributor to make an immediate
purchase.
HORIZON FORM SCOPE
Mainly long-term TV, press, posters, radio, web, Awareness, attitudes
cinema, digital, SMS.
Short and long-term Direct mail, DRTV & radio, Mainly retention but also
telemarketing, press, inserts, acquisition
leaflets, web, digital, SMS.
Short and long-term Community relations/CSR, Credibility, visibility and
corporate advertising, crisis reputation
management, events, internal
communications, investor
relations, media relations, public
affairs, lobbying, sponsorship,
web, digital.
Mainly short-term Consumer: Coupons, contests, Consumer: Trial, re-trial,
trial, mail-in offers/refunds, group extended trial, build
promotions, self-liquidations, in- database
store promotions, point-of-sale, Trade: Gain a listing,
web, digital, SMS. increase distribution,
Trade: Dealer merchandise; increase inventory, improve
contests’ advertising, allowance, shelving space/position
trade allowance/ staff incentive,
web.
 Media Scheduling
1. Reach
2. Creative Scope
3. Media History
4. Location
5. Distribution Channels
6. Budget
 Budgeting

1. JUDGEMENTAL METHODS
• Arbitrary (What is felt as
necessary)
• Affordable
2. OBJECTIVE and TASK
3. MEASUREMENT
• ROI
• Incremental
•Quantitative Models
4. PERCENTAGE OF SALES
• % Last Year’s Sales
• % Anticipated Sales
• Unit Sales
5. SHARE OF VOICE
• Competitive Absolute
• Competitive Relative
 Conclusion
• MARCOMS primarily consist of four media:
advertising, direct marketing, PR and sales
promotions, which can be used in marketing
strategy either singularly or holistically with
IMC (Integrated Marketing Communications)
• While MARCOMS can enable organisations
to reduce costs in the medium to long-term,
their main strategic use is in helping to
differentiate and position