Chapter 18 The Marketing Communications Program

Sommers

Barnes

Ninth Canadian Edition

Presentation by

Karen A. Blotnicky Mount Saint Vincent University, Halifax, NS

Copyright 2001 by McGraw-Hill Ryerson Limited

Chapter Goals
To gain an understanding of: The role of marketing communications Different forms of marketing communications The concept of integrated marketing communications The communication process Designing and budgeting for the marketing communications mix Considerations in developing a marketing communications campaign Regulation of marketing communications
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Purposes of Marketing Communications

not only informs, but is also used to differentiate the sellers products/services may also be effective in affecting the price elasticity of demand (nonprice competition) the marketing communications strategy of a firm must be coordinated and linked with concepts such as target segments, positioning, differentiation, and image requires a closely coordinated approach
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Marketing Communications
Informs, persuades and reminds Is part of the marketing mix Includes all the means by which a company communicates directly with potential customers. Attempts to influence feelings, beliefs, or behaviour.

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Marketing Communication Methods

Personal selling: The 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.
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More Methods
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.

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Integrated Marketing Communications

A strategic business process used to plan, develop, execute, evaluate coordinated communication within an organizations publics, requiring: Awareness of audiences media habits and preferences Understanding of audiences 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
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Basic Communication Elements

A message A source of the message A communication channel A receiver Response Feedback Noise
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Communication process components:

Encoding Decoding

The Communications Process

communications requires a channel, with a sender and a receiver, to handle the message a message is first encoded by the sender the communications channel is then used to deliver the message to the sender the sender decodes the message, based on his or her frame of reference and experience may be a need for a response and feedback the process can be interrupted by noise
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The Process
ENCODING THE MESSAGE Create an ad, display, or sales presentation

MESSAGE CHANNEL Select the media or other vehicle to carry the message

DECODING THE MESSAGE Receiver compares message to frame of reference MESSAGE AS RECEIVED Knowledge, beliefs, or feelings of receiver changed

MESSAGE AS INTENDED A promotional idea in marketers mind

NOISE Competing ads, other distractions

FEEDBACK Impact measured using research, sales, or another measure

RESPONSE Ranges from simple awareness to purchase

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Inside the Communications Process

The act of encoding allows that messages can take many forms. The methods of transmitting a message are limited only by the imagination and creativity of the sender. How the message is decoded depends on its form and the capability and interest of the recipient. Without measurable objectives, the effectiveness of a message cannot be evaluated.
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Considerations in Designing Marketing Communications Mix

Target market Readiness to buy, knowledge, liking, preference, conviction (belief) Purchase Geographic scope Type consumer or middleman Concentration

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More Considerations
Nature of the product Unit value Degree of customization Presale and postsale service Stage of the product life cycle Amount of money available for promotion

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Push or Pull Strategy

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

A push strategy is directing the communication primarily at the middlemen that are the next link forward in the producers distribution channel. A pull strategy has the communication directed at the end users primarily consumers.
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An Illustration
Producer Wholesaler Retailer Consumer

PUSH STRATEGY

Producer

Wholesaler

Retailer

Consumer

PULL STRATEGY

Product flow

Communication effort
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Determining the Communications Budget

Percentage of Sales:
Based on past or projected sales, e.g. 2%. $X per unit is variation for big-ticket items. Simple, but implies its a result of sales. All Available Funds: New business which needs to build sales and share in early years can use this. Can make sense if more marketing communications leads directly to more sales.

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More Budgeting Methods

Follow the Competition:

Match what your competitors spend. Can use industry averages. Benchmark against one key competitor. But does it fit with your strategies? Best approach: What do you want to achieve? Identify tasks/objectives, then cost them out. Sometimes called buildup method.
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Task or Objective:

Regulation in Marketing Communications

Federal Role: Canadian Radio-television and Telecommunications Commission (CRTC) It looks at broadcast advertising. Health Protection Branch Deal with drugs, cosmetics, etc. communications Some drugs cannot be advertised due to worries about self-diagnosis. Industry Canada Oversees various acts, including Competition Act.
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More Regulations
Provincial Role:

Various boards control liquor, films, human rights, securities, etc. Recently, special focus on misleading advertising problems.

Private Organizations:

Many media refuse to accept certain ads. Industry codes for Advertising Standards, Advertising to Children, etc.
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