UNIT 5

ADITI BATHEJA
 What are
Marketing Communications?

Marketing communications are the means

by which firms attempt to inform, persuade,
and remind consumers, directly or
indirectly, about the products and brands
they sell.
Elements in the Communications Process
Field of Experience

Sender’s Receiver’s
field field
9 ELEMENTS OF COMMUNICATION

1. Sender
the source of information or message

2. Encoding
the process of converting the message into words, actions, or other forms that the speaker understands.

3.Message
the information, ideas, or thoughts conveyed by the speaker in words or in actions

4.Media-the medium or the means, such as personal or non-personal, verbal or non-verbal, in which
the encoded message is conveyed

5.Receiver
the recipient of the message, or someone who decodes the message

6.Decoding
the process of interpreting the encoded message of the speaker by the receiver

7. Response-The reactions that receiver has after being exposed to the message

8. Feedback
the reactions, responses, or information provided by the receiver

9. Barrier-the factors that affect the flow of communication

BARRIERS TO COMMUNICATION
Selective attention: Of the many
stimuli that people are exposed to,
people are attracted to those stimuli
that they consider to be relevant in
terms of a match with their needs. They
are attentive to those stimuli that match
their needs and avoid those that are
irrelevant.
Selective Distortion: For example, one
study found that consumers were equally
split in their preference for Diet Coke
versus Diet Pepsi when tasting both on a
blind basis. Selective distortion can
work to the advantage of marketers with
strong brands when
consumers distort neutral or ambiguous
brand information to make it more
positive.
Selective retention, in relating to the
mind, is the process whereby people more
accurately remember messages that are
closer to their interests, values and
beliefs, than those that are in contrast
with their values and beliefs, selecting
what to keep in the memory, narrowing
the information flow.
8 Modes of Marketing Promotion Tools

• Managing Mass Communications

• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity

• Managing Personal Communications

• Direct marketing
• Interactive marketing
• Word-of-mouth marketing
• Personal selling
 Communication Platforms
Advertising Sales Promotion
• Print and broadcast ads • Contests, games,
• Packaging inserts sweepstakes
• Motion pictures • Premiums
• Brochures and booklets • Samples
• Posters • Trade shows, exhibits
• Billboards • Coupons
• POP displays • Rebates
• Logos • Continuity programs
Sales Promotion-
Premiums-Another form of sales
promotion involving free merchandise is
premium or “give-away” items.
Premiums differ from samples and free
product in that these often do not consist
of the actual product, though there is
often some connection. For example, a
cellphone manufacturer may offer access
to free downloadable ringtones for those
purchasing a cellphone.
 Benefits of Packaging Inserts
• Packaging inserts are usually unexpected and can build goodwill
with new customers.
• Customers don’t have to pay anything extra for a packaging
insert. Instead, a packaging insert is something that a brand will
use to spread awareness about campaigns and promotions and
provide added value. Overall, package inserts are a cost-effective
and versatile gesture for building a relationship with your
customers.
• Inserts can be highly targeted: The recipient is already a
customer, and you know what they bought. You can tailor your
package insert to the exact person receiving it.
• Package inserts are perfect for cross-selling
 Packaging Inserts

You already know what the customer

likes based on what they've already
ordered so why not through in a free
sample of a product you think they
may like.
 Communication Platforms
Events/ Experiences Public Relations
• Sports • Press kits
• Speeches
• Entertainment
• Seminars
• Festivals • Annual reports
• Arts • Charitable donations
• Causes • Publications
• Factory tours • Community relations
• Company museums • Lobbying
• Identity media
• Street activities
• Company magazine
As the owner of a boutique PR agency, I constantly have to
explain that we don’t buy advertisements, we don’t order
journalists to write stories for our clients, we don’t produce cute
radio jingles, and we don’t hand out free samples at the
mall. Yes, we try to promote our clients, our products or
ourselves. But unlike advertisers, we persuade our external or
internal audiences via unpaid or earned methods. Whether it’s
the traditional media, social media or speaking engagements, we
communicate with our audiences through trusted, not paid,
sources.
There’s an old saying: “Advertising is what you
pay for, publicity is what you pray for.”
Advertising is paid media, public relations is earned media. This
means you convince reporters or editors to write a positive story
about you or your client, your candidate, brand or issue. It appears in
the editorial section of the magazine, newspaper, TV śtation or
website, rather than the “paid media” section where advertising
messages appear. So your story has more credibility because it was
independently verified by a trusted third party, rather than purchased
 Personal Promotion Platforms
Personal Selling Direct Marketing
• Sales presentations • Catalogs
• Sales meetings • Mailings
• Telemarketing
• Incentive programs
• Electronic shopping
• Samples
• TV shopping
• Fax mail
• E-mail
• Voice mail
• Blogs
• Websites
 Personal Selling Process
• Personal selling. Personal selling has three distinctive qualities: (1) personal confrontation (it involves an
immediate and interactive relationship between two or more persons that can be effectively customized );

• (2) cultivation (it permits all kinds of relationships to spring up, ranging from a matter-of-fact selling
relationship to a deep personal friendship); and

• (3) response (it makes the buyer feel under some obligation for having listened to the sales talk).

• PERSONAL SELLING PROCESS:

• Step One
Prospecting - the first step in the personal selling process
The process of looking for and checking leads is called prospecting or determining which firms or individuals
could become customers.
Up to 20% of a firm's customer base can be lost for reasons such as transfer, death, retirement, takeovers,
dissatisfaction with the company and competition. A steadily growing list of qualified prospects is important for
reaching the sales targets.
Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined that the person or
company can benefit from the service or product offered. A qualified prospect has a need, can benefit from the
product and has the authority to make the decision.
• Step Two
The Pre-approach
This stage involves the collecting of as much relevant information as possible prior to the sales
presentation. The pre-approach investigation is carried out on new customers but also on regular
customers. Systematic collection of information requires a decision about applicability, usefulness and
how to organise the information for easy access and effective use.
• Step Three
•
The Approach
The salesperson should always focus on the benefits for the customer. This is done by using the
product's features and advantages. This is known as the FAB technique (Features, Advantages and
Benefits).
* Features : Refers to the physical characteristics such as size, taste etc.
* Advantages : Refers to the performance provided by the physical characteristics eg it does not stain.
* Benefits : Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost.

• Step Four
The Sales Presentation
After the prospects interest has been grasped, the sales presentation is delivered. This involves a
"persuasive vocal and visual explanation of a business proposition". It should be done in a relaxed
atmosphere to encourage the prospect to share information in order to establish requirements. Some
small talk may be necessary to reduce tension but the purpose always remains business
• Step Five
Handling Objections
Objections are often indications of interest by the prospect and should not be
viewed with misgiving by salespeople. The prospect is in fact requesting
additional information to help him to justify a decision to buy. The prospect
may not be fully convinced and the issues raised are thus very important. It
also assists the salesperson to establish exactly what is on the prospect's mind.
• Step Six
Closing the Sale
This is the last part of the presentation. Many salespeople fear the closing of a
sale. Closing a sale is only the confirmation of an understanding. Fear will
disappear if the salesperson truly believes that the prospect will enjoy benefits
after the purchase of the product.
• Step Seven
The Follow-up
The sale does not complete the selling process. Follow-up activities are very
important and are useful for the establishment of long-term business
relationships. It is important to check if the products have been received in
good condition, to establish the customer is satisfied etc.
 Direct marketing.

• All forms of direct marketing—direct mail,

telemarketing, Internet marketing—share four
distinctive characteristics:

• They are (1) nonpublic (the message is normally

addressed to a specific person);
• (2) customized (the message can be prepared to appeal
to the addressed individual);
• (3) up-to-date (a message can be prepared very
quickly);
• (4) interactive (the message can be changed depending
on the person’s response).
 Word-of-Mouth Marketing

• Person-to-person
• Chat rooms
• Blogs
 An Ideal Ad Campaign
• The right consumer is exposed to the
message at the right time and place
• The ad causes consumer to pay attention
• The ad reflects consumer’s level of
understanding and behaviors with product
• The ad correctly positions brand in terms of
points-of-difference and points-of-parity
• The ad motivates consumers to consider
purchase of the brand
• The ad creates strong brand associations
Communications Objectives

Inform Persuade

Remind
REMINDER ADS- For
maintaining the trust and image
for a well established brand. such
ads don’t focus on product features
or benefits
(Examples shown in the lecture)
 Creative Strategy
• Informational and transformational appeals
• Positive and negative appeals
• Fear
• Guilt
• Shame
• Humor
• Love
• Pride
• Joy
Creative Copies for good
impressions
 Message Source

Celebrity Characteristics
• Expertise
• Trustworthiness
• Likeability
Issues Facing Global Adaptations

• Is the product restricted in some

countries?
• Are there restrictions on advertising the
product to a specific target market?
• Can comparative ads be used?
• Can the same advertising be used in all
country markets?
 Select Communication Channels

• Personal channels
• Nonpersonal channels
• Integration of channels
 Stimulating
Personal Influence Channels
• Identify influential individuals and devote
extra attention to them
• Create opinion leaders
• Use community influentials in testimonial
advertising
• Develop advertising with high “conversation
value”
• Develop WOM referral channels
• Establish an electronic forum
• Use viral marketing
 Nonpersonal
Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations
 Steps in Developing Effective
Marketing Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
Establish the Budget
Affordable

Percentage-of-Sales

Competitive Parity-as per competition)

Objective-and-Task-
Company allocates a certain amount of money to its
marketing budget based on specific objectives
 Factors in Setting
Communications Mix
• Type of product market
• Buyer readiness stage
• Product life cycle stage
Figure 17.5 Cost Effectiveness by
Buyer Readiness Stage
 MARKETING CHANNELS AND
CHANNEL DYNAMICS
• The Significance of Marketing
Channels
• The primary purpose of any channel of
distribution is to bridge the gap
between the producer of a product and
its user.
• The channel is composed of different
institutions that facilitate the transaction
and the physical exchange.
• A channel performs three important
functions: transactional, logistical, and
facilitating.
• Service marketers also face the problem
of delivering their product in the form and
at the place and time their customer
demands.
 Types of Marketing Channels

• There are basically 4 types of

marketing channels: direct selling;
selling through intermediaries; dual
distribution; and reverse channels.
 Key Points

• Direct selling is the marketing and selling of products

directly to consumers away from a fixed retail
location.
• An intermediary (or go-between) is a third party that
offers intermediation services between two trading
parties.
• Dual distribution describes a wide variety of
marketing arrangements by which the manufacturer
or wholesalers use more than one channel
simultaneously to reach the end user.
• A reverse channel may go from consumer to
intermediary to beneficiary.
• Selling Through Intermediaries
• A marketing channel where intermediaries such as wholesalers and
retailers are utilized to make a product available to the customer is called
an indirect channel.
• The most indirect channel you can use (Producer/manufacturer –> agent
–> wholesaler –> retailer –> consumer) is used when there are many
small manufacturers and many small retailers and an agent is used to
help coordinate a large supply of the product.

• Dual Distribution
• Dual distribution describes a wide variety of marketing arrangements by
which the manufacturer or wholesalers uses more than one channel
simultaneously to reach the end user. They may sell directly to the end
users as well as sell to other companies for resale. Using two or more
channels to attract the same target market can sometimes lead to
channel conflict.
• An example of dual distribution is business format franchising, where the
franchisors, license the operation of some of its units to franchisees while
simultaneously owning and operating some units themselves.
 REVERSE CHANNELS
• If you’ve read about the other three channels, you would
have noticed that they have one thing in common — the
flow. Each one flows from producer to intermediary (if
there is one) to consumer.
• Technology, however, has made another flow possible.
This one goes in the reverse direction and may go —
from consumer to intermediary to beneficiary. Think of
making money from the resale of a product or recycling.
• There is another distinction between reverse channels
and the more traditional ones — the introduction of a
beneficiary. In a reverse flow, you won’t find a producer.
You’ll only find a User or a Beneficiary.