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JULY 2022 MBA Programme

UGBS
MKTG 604: Integrated Marketing
Communications

Lecturer: Prof. E.Y.


Tweneboah-Koduah
* Yaw Tweneboah-Koduah, University 1
of Ghana Business School
COURSE DESCRIPTION
■ Integrated marketing communications (IMC) is the concept
under which a company carefully integrate and coordinates its
many communications channels to deliver a clear, consistent
and compelling message about the organization and its
products.

■ The notion of integrated marketing communications is not a


new idea although it has become much more popular in recent
years. Intellectually, there is a lot to commend integration but
it is not easy to achieve for reasons explained later in this
course.
*
Yaw Tweneboah-Koduah, University 2
of Ghana Business School
Objectives
The objective of this course is to introduce
students to the concept of integrated marketing
communications and various components of
marketing communications.

* Yaw Tweneboah-Koduah, University 3


of Ghana Business School
Course Outline
Week
1.Introduction to Integrated Marketing Communications

2.What is Integrated Marketing Communications

3.Creating shared meaning in marketing communications-from sender to receiver

4.Understanding Buyer Behaviour

5.Marketing Communications Media

6.The changing marketing communications environment

7.The international Context of marketing Communications

8.Image and Brand Management

9.Customer/audience relationship management

10.The marketing communications plan

11.Assignment 70%

12.Main Exams 30%

* Yaw Tweneboah-Koduah, University 4


of Ghana Business School
Reading List
■ Pickton, David & Broderick, Amanda (2005),
Integrated Marketing Communication, 2nd Edition,
Peason Education Ltd, England.
■ Fill, Chris & Turnbull, Sarah (2016), Marketing
Communications: Discovery, Creation and
Conversations. Pearson Education Ltd, England.
■ Clow, K. E. & Baack, D. (2016), Integrated
Advertising, Promotion, and Marketing
Communications, 7th Edition. Global Edition. Pearson
Education Ltd. England.

* Yaw Tweneboah-Koduah, University 5


of Ghana Business School
Lecture 1

* Yaw Tweneboah-Koduah, University 6


of Ghana Business School
Integrated Marketing
Communications
■ Before we define integrated
marketing communications, we
need to define Marketing and
marketing Communications.

* Yaw Tweneboah-Koduah, University 7


of Ghana Business School
■ What is marketing?
It is a social and managerial
process by which individuals and
groups obtain what they need and
want through creating, offering
and exchanging product of value
with others.
* Yaw Tweneboah-Koduah, University 8
of Ghana Business School
■ Marketing Communications:
Is all the promotional elements of the
marketing mix which involves the
communications between an organization and
its target audiences on all matters that affect
marketing performance.
■ Marketing Mix (4ps): Price, Place, Product,
and Promotion.
■ Expanded marketing mix(7ps): price, place,
product, people, physical evidence, process
and promotion
* Yaw Tweneboah-Koduah, University 9
of Ghana Business School
What is the difference between
marketing communications,
promotion, advertising and
corporate communication

* Yaw Tweneboah-Koduah, University 10


of Ghana Business School
Marketing Communications and
Promotion
It is more difficult to
differentiate ‘promotion’ from
marketing communications, so
much so that it is wise to
consider them as a term that
can be used interchangeably.

* Yaw Tweneboah-Koduah, University 11


of Ghana Business School
Marketing Communications and
Advertising:
Probably the most common area of confusion is to think
of marketing communications as another word for
advertising. Advertising has been around for a long
time and it is used extensively by the general public
to mean all sort of things. Everybody knows
something about advertising because it is seen and
heard every day. It should be noted here that
advertising is only one part of marketing
communications and it is not an alternative term to it.

* Yaw Tweneboah-Koduah, University 12


of Ghana Business School
Why the term ‘marketing
communications’ at all?
■ You may be wondering at this point why we even want to
confuse or replace the perfectly acceptable word ‘promotion’
with rather more cumbersome phrase, ‘marketing
communications’? The answer is:
■ marketing communications is a term which is gaining
popularity.
■ The word ‘promotion’ is also used as a shortened version of
‘sales promotions’ which is actually only a part of the bigger
promotions picture that marketing communications represents.
■ As recognised by Deloizier(1976), all the marketing mix
elements have a marketing communications impact. Therefore,
in a sense, marketing communications is slightly wider
concept than promotions

* Yaw Tweneboah-Koduah, University 13


of Ghana Business School
Marketing communications and
corporate communications
■ Corporate communications includes marketing
communications and some other forms of
communications as well, that is, communications
which are not related to marketing activities. So,
perhaps, it can be argued that communications with
employees or shareholders or other stakeholders that
are not on marketing matters would be examples of
corporate communications but not marketing
communications. In this way, the distinction between
the two is only of content of communication, not
methods of communication.
* Yaw Tweneboah-Koduah, University 14
of Ghana Business School
■ To clarify, what the student should recognise is
that marketing communications have to cover
not only promotions of goods and services but
also corporate promotions as well. This is
because images and impressions of the
organization have profound effects on the
success or otherwise of individual goods and
services. Indeed, this notion can be extended
further if we also consider the promotion of
individuals as well.-POLITICAL PARTIES

* Yaw Tweneboah-Koduah, University 15


of Ghana Business School
THE MARKETING
COMMUNICATIONS PROCESS
AND THE IMC PROCESS MODEL
■ Fundamental to the understanding of
marketing communications is an understanding
of marketing communications process, i.e. how
marketing communications work from the
sender of the communication to the receiver of
it. These are shown in exhibit 1.1 below:

* Yaw Tweneboah-Koduah, University 16


of Ghana Business School
* Yaw Tweneboah-Koduah, University 17
of Ghana Business School
■ The sender is the originator or source of the
message. In practice, agents or consultants
may actually do the work on behalf of the
sender.
■ The message is the actual information and
impressions that the sender wishes to
communicate.
■ The media is the ‘vehicles’ or ‘channels’ used
to communicate the message without which
there can be no communication. Media can
take many different forms.
■ The receiver are the people who receive the
message.
* Yaw Tweneboah-Koduah, University 18
of Ghana Business School
■ The skill is in ensuring that this whole process
is carried out successfully, that the right
messages are received by the right people in
the right way. But things do go wrong!

■ Schramm’s(1960) concept of communications


process is the foundation of our understanding
of marketing communications, and the four
elements provide a basic structure.

* Yaw Tweneboah-Koduah, University 19


of Ghana Business School
■ The IMC Process Model, however, provides a
much more comprehensive framework for
understanding how marketing communications
work. This is presented in exhibit 1.2 below:

* Yaw Tweneboah-Koduah, University 20


of Ghana Business School
* Yaw Tweneboah-Koduah, University 21
of Ghana Business School
■ There are more key elements in IMC process
model than the communication process. Four
of the elements are in common-sender,
message, media and receiver. Whilst the
communication process assumed that the
message will be heard by the target audience,
the IMC Process Model indicates that the
message may be received by members or non
members of the target audience.- Marketing
communications are frequently seen and heard
by others than those an organization has
targeted.

* Yaw Tweneboah-Koduah, University 22


of Ghana Business School
■ Receivers may subsequently take no action or
a variety of different actions which include:

■ purchase
■ Consumption
■ And word-of-mouth communication with
others-Positive/Negative

IMC Process Model recognises that marketing


communications may fall short and not be
received by all or only a limited number of
receivers.
* Yaw Tweneboah-Koduah, University 23
of Ghana Business School
A number of additional elements
are included in exhibit 1.2.
a. Communications Context.
This is the macro –and
micro-environment in which
marketing communications
take place
* Yaw Tweneboah-Koduah, University 24
of Ghana Business School
■ b. Communication loop, which recognises the
two way nature of communications and the
problems of encoding, decoding and “Noise.”
Grunig and Hunt(1984) have referred to the
communications loop as involving:

One-way asymmetric communication-is from a


sender to a target audience with no feed back
or dialogue. Eg.Tv, Radio. Feedback is
possible through research.

* Yaw Tweneboah-Koduah, University 25


of Ghana Business School
Two-way asymmetric communication-there is
some communication flow between sender and
the audience and back again but the feedback
or the response is delayed and, therefore not in
the form of dialogue.
Two-way symmetric communication-there is
direct dialogue between the sender and the
audience (this can be described as the “richest”
form of communication). Egg. Personal
selling, call centres etc.

* Yaw Tweneboah-Koduah, University 26


of Ghana Business School
■ c. A third additional element of the
model is the receiver responses to the
marketing communications process.
These may include attitudes,
associations and behaviours to the
communications such as perceived
quality and loyalty. These receiver
responses create the brand equity.

* Yaw Tweneboah-Koduah, University 27


of Ghana Business School
Brand equity is the strength, currency, and
value of the brand…the description, and
assessment of the appeal, of a brand to all
the target audiences who interact with it.
In sum, it is the company’s names and
symbols. The valuation of brands as an
assets on the balance sheet has become
recognised as an important indication of
organizational performance.

* Yaw Tweneboah-Koduah, University 28


of Ghana Business School
■ The Time period+1 element of the IMC
process model recognises that brand equity is
built and changes overtime and past
exposure/response to a marketing
communication can impact on the subsequent
process and output of a communication in time
period+1
■ d. ‘Customer /audience relationship
management’ and ‘image and brand
management’ –these are the two strategic task
facing those responsible for IMC and the
management of the IMC process.

* Yaw Tweneboah-Koduah, University 29


of Ghana Business School
Target Audiences
■ Identifying target audiences is fundamental to
good marketing communications. It is common
practice in marketing to emphasise the
importance of target market but this has to be
taken further in marketing communications.
❖ The target markets describe customers-the
people who buy good and services.
❖ They also describe consumers-the people who
literally use or consume the goods and
services.
* Yaw Tweneboah-Koduah, University 30
of Ghana Business School
Sometimes the customers and

consumers are the same people but


often they are not. It makes sense in
marketing communications to
consider communicating with both
buyers and users if communications
effort is to be most successful.
Marketing communications plan
focused in this way may be more like
two plans integrated together.
* Yaw Tweneboah-Koduah, University 31
of Ghana Business School
■ We still need to go further ! We need to go
beyond the target market in determining our
target audiences. We need to consider who else
may be involved in the purchase decision or
who else might influence it. If we are able to
influence the influencers then there is greater
likelihood that our communications will be
successful.
For this reason, target audiences can include:

* Yaw Tweneboah-Koduah, University 32


of Ghana Business School
■ Members of the trade
■ Opinion leaders

■ Members of the media-Musicians

■ Employees

■ Club and associations

■ Aunt and Uncles

And anybody else who is relevant-Messengers

Exhibit 1.3 illustrates one way we can highlight the


audience segments from which we can select the
targets.
* Yaw Tweneboah-Koduah, University 33
of Ghana Business School
* Yaw Tweneboah-Koduah, University 34
of Ghana Business School
■ Opinion leaders and innovators: people who
may be influential especially in new product
launch or re-launches.
■ DMU: Decision-Making Unit, recognises that
there can be a number of people or players
who will directly influence the buying
decision.
■ Once target audiences have been determined as
part of IMC effort, it is then possible to make
decisions about how each of them be treated.

* Yaw Tweneboah-Koduah, University 35


of Ghana Business School
■ Decision will be made as to which
marketing communication tools will be
used and which media should be selected.

* Yaw Tweneboah-Koduah, University 36


of Ghana Business School
Lecture 2

* Yaw Tweneboah-Koduah, University 37


of Ghana Business School
What is Integrated Marketing
Communications
■ Integrated marketing communications (IMC) is
the bringing together of all marketing
communications activities.
■ To many, IMC has become recognised as the
process of integrating all the elements of the
promotional mix. While this may be
considered an adequate working definition, it
fails to highlight a number of significant
features which IMC should embrace.

* Yaw Tweneboah-Koduah, University 38


of Ghana Business School
Definitions of IMC

IMC is a process for managing the customer


relationship that drive brand value. More
specifically, it is a cross-functional process for
creating and nourishing profitable relationships
with all customers and stakeholders by
strategically controlling or influencing all
messages sent to these groups and encouraging
data-driven, purposeful dialogue with them.
(Duncan, 2002)

* Yaw Tweneboah-Koduah, University 39


of Ghana Business School
■ IMC is the concept under which a
company carefully integrates and
coordinates its many communications
channels to deliver a clear, consistent
and compelling message about the
organization and its products (Kotler
1999

* Yaw Tweneboah-Koduah, University 40


of Ghana Business School
■ is the coordination and integration of all marketing
communication tools, avenues, and sources within a
company into a seamless program which maximizes the
impact on consumers and other end-users at a minimal
cost. The IMC includes all business-to-business,
channel, customer, external communications, and
internal communications. (Clow and Baack, 2016)

■ An organisation’s unified, coordinated effort to


promote a brand concept through the use of
multiple communications tools that ‘speak
with a single voice’

* Yaw Tweneboah-Koduah, University 41


of Ghana Business School
■ IMC can be defined as the management
process of integrating all marketing
communications activities across relevant
audience points to achieve greater brand
coherence. (Pickton/Broderick 2005)

IMC Mix
▪ Public Relations

the planned and sustained effort to establish


and maintain goodwill and mutual
understanding between an organisation and its
publics.
* Yaw Tweneboah-Koduah, University 42
of Ghana Business School
▪ Sponsorship
Is a contribution to an activity by a commercial
organisation in cash, or in kind, with the expectation
of achieving corporate and marketing objectives
▪ Advertising
any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified
sponsor.

■ Direct Marketing Communications


In direct marketing, organisations communicate
directly with target customers to generate a response
and/or transaction.

* Yaw Tweneboah-Koduah, University 43


of Ghana Business School
■ Sales promotions
The use of any incentive by a manufacturer or
service provider to induce the trade and/or
consumers to buy a brand and to encourage
sales force to aggressively sell it

■ Packaging
is a marketing tool that combines graphic
design with marketing concepts to create an
identity for the brand.-the ‘clothing’ the
product appears in
* Yaw Tweneboah-Koduah, University 44
of Ghana Business School
■ Exhibitions and trade shows
temporary events for the purpose of displaying
and/or selling products; usually based around a
particular theme, product category or customer
groups. They are principally designed to bring
potential buyers and sellers under one roof.
Eg. InfoTech, Educational and Book fair, Joy
FM Bridal fair, Grand Sales etc.

* Yaw Tweneboah-Koduah, University 45


of Ghana Business School
■ Personal selling
A form of person-to-person communication in
which a seller attempts to assist and or
persuade prospective buyers to purchase the
company’s product or service or to act on an
idea.

* Yaw Tweneboah-Koduah, University 46


of Ghana Business School
Features of IMC

1. IMC Clearly Identified marketing


communications objectives which are
consistent with other organisational
objectives
2. Range of Promotional tools-all elements
of promotional mix including personal
and non- personal communications.

* Yaw Tweneboah-Koduah, University 47


of Ghana Business School
3. IMC manage customer/audience
relationship that drive brand value-
this is done by strategically controlling
or influencing all messages sent to these
groups.
4. IMC create two way communication
with the target audiences.-there is a
dialogue between the organisation and
target audiences.

* Yaw Tweneboah-Koduah, University 48


of Ghana Business School
5. IMC deliver a clear, consistent and
compelling message about the
organization and its products
6. Range of media-Any vehicle able to
transmit marketing communications
messages and not just the mass
media

* Yaw Tweneboah-Koduah, University 49


of Ghana Business School
7. IMC communicate with both the target
market and the target audiences. Not
confined just to customers or prospects
nor just to imply end customers but
include all selected target audience
groups. –stakeholders, consumers,
customers and influencers of customers
and consumers

* Yaw Tweneboah-Koduah, University 50


of Ghana Business School
Benefits of integrated marketing
communications
1. IMC achieve synergy through effective
integration.

Synergy is the effect of bringing together


marketing communication elements in a
mutually supportive and enhancing way so
that the resulting whole is greater than the
sum of its parts.

* Yaw Tweneboah-Koduah, University 51


of Ghana Business School
2. Provides opportunities to cut
communication cost.
3. Can deliver competitive advantage
through clearer positioning
4. Encourages coordinated brand
development with internal and external
participants

* Yaw Tweneboah-Koduah, University 52


of Ghana Business School
5. Has the potential to cause
management to review its
communications strategy.-no action
from the target market.
6. Requires a change in culture and
fosters a customer focus.
7. Can lead to a cut in the number of
agencies supporting the brand.

* Yaw Tweneboah-Koduah, University 53


of Ghana Business School
DISADVANTAGES OF IMC
1. Encourages centralization and
formal/bureaucratic procedures
2. Can require increased management
time seeking agreement from all
involved parties.
3. Suggests uniformity and single
message
* Yaw Tweneboah-Koduah, University 54
of Ghana Business School
4. Tendency to standardise might negate
creative opportunities.
5. Global brands restricted in terms of
adaptation.
6. Normally requires cultural change from
employees-encourages resistance
7. Has the potential to severely damage a
brand’s reputation if incorrectly
managed.
* Yaw Tweneboah-Koduah, University 55
of Ghana Business School
Lecture 3

* Yaw Tweneboah-Koduah, University 56


of Ghana Business School
Creating shared meaning in
marketing communications-from
sender to receiver

■ An introduction to the communications Loop


The communication loop, outlined in the IMC
process model, recognises the two-way nature
of communications between senders and
receivers and the issues of message encoding
and decoding, feed back and ‘noise’ these
issues involve the psychology of
communication, specifically:
* Yaw Tweneboah-Koduah, University 57
of Ghana Business School
■ The way in which messages are created
■ The elements which make up the message
■ The ways in which messages are interpreted by
the recipient so that meaning is extracted from
them.
■ The areas where messages are misinterpreted,
where the meaning of part of the message is
different for one person than for another,
where elements of the message become
obliterated.

* Yaw Tweneboah-Koduah, University 58


of Ghana Business School
■ Communication does not take place if the
receiver does not receive the message, or if the
message becomes so distorted that it changes
its meaning.
Communication has been defined as a
transactional process between two or more
parties whereby meaning is exchanged through
the intentional use of symbols.
The key elements here are that;
❑ the communication is intentional (deliberate

effort is made to bring about a response


* Yaw Tweneboah-Koduah, University 59
of Ghana Business School
❑ it is a transaction - the participants are all
involved in the process.
❑ It is a symbolic-words, pictures, music, and
other sensory stimulants are used to convey
thoughts.
Since human beings are not telepathic, all
communication requires that the original
concepts be translated into symbols that
convey the required meaning.
This means that the individual or firm issuing the
communication must first encode, or reduce
the concepts to a set of symbols which can be
* Yaw Tweneboah-Koduah, University 60
of Ghana Business School
passed on to the recipient of the message; the
recipient must decode the symbols to
understand the original message.
This means that the sender and the recipient
must:
❑ Share a common view of what the symbols

involved actually mean


❑ The parties must share a common field of
experience. This is illustrated in Exhibit 3.1

* Yaw Tweneboah-Koduah, University 61


of Ghana Business School
* Yaw Tweneboah-Koduah, University 62
of Ghana Business School
■Sender’s field of experience and the receiver's
field of experience must overlap, at least to the
extend of having a common language.
Advertisements typically use references from TV
Shows, from proverbs and common sayings,
and will often use half-statements which the
audience is able to complete because they are
aware of the cultural referents involved. This is
why foreign TV adverts often seems
incomprehensible.

* Yaw Tweneboah-Koduah, University 63


of Ghana Business School
■ Source encoding-this refers to putting
thoughts, ideas, or information into a symbolic
form. The sender’s goal is to encode the
message in such a way that it will be
understood by the receiver. This means using
words, signs, or symbols that are familiar to
the target audience.

* Yaw Tweneboah-Koduah, University 64


of Ghana Business School
■ Receiver Decoding- Decoding is the process of
transforming the sender’s message back to thought.
This process is heavily influenced by the receiver’s
frame of reference or field of experience, which refers
to the experience, perceptions, attitude, and values he
or she brings to the communications situation. For
effective communication to occur, the message
decoding process of the receiver must match the
encoding of the sender. Simply put, this means the
receiver understands and correctly interprets what the
source is trying to communicate.

* Yaw Tweneboah-Koduah, University 65


of Ghana Business School
■ Noise-This is made up of the surrounding
distractions present during the communications
process, Interference is a deliberate attempt to
distract the audience’s attention. For example,
a car driver may be distracted away from a
radio commercial by another driver cutting in
or by seeing an interesting billboard. Light off,
no or low signal for your TV etc.
■ Feedback takes place when there is two-way
communication; there is some communication
flow between sender and audience and back
again.
* Yaw Tweneboah-Koduah, University 66
of Ghana Business School
Feedback will always increase the potential for
more accurate communication, which is one
reason why personal selling is such a powerful
communications tool; it allows the customer to
ask questions and the sales person to respond
immediately.
Feedback helps to ensure redundancy in the
communication; that is to say, unnecessary
repetition of the basic message while allowing
greater opportunity to ensure the message has
been received and understood.
* Yaw Tweneboah-Koduah, University 67
of Ghana Business School
■ In looking at the IMC process model, the
communication loop is shown as extending
beyond the original sender to the receivers to
illustrate another important aspect of the total
communications process. Marketing
communications are not only disseminated by
the original sender, they are received and
passed on by the receivers to others through a
process that is commonly referred to as word
of mouth. This ‘extra’ communication can be
very powerful indeed but can result in
miscommunication because the original
message has now gone through a process of
* Yaw Tweneboah-Koduah, University 68
of Ghana Business School
encoding, decoding, more encoding as it is
passed on and yet more decoding as it is
received by others. Sometimes, the messages
can be enhanced in this process and sometimes
diminished and distorted. Noise and
interference can once again disrupt the
communications activity. Importantly, word of
mouth is very difficult to control.

* Yaw Tweneboah-Koduah, University 69


of Ghana Business School
The use of signs in encoding and
decoding
■A sign is ‘anything that stands for something
(its object) to somebody (its interpreter) in
some respect (its context)’ Meaning is always
conveyed through signs, which are used in
both encoding and decoding process.
Marketers transfer cultural meanings into
products through the use of signs in their
advertisements.

* Yaw Tweneboah-Koduah, University 70


of Ghana Business School
■ Semiotics, the study of signs and meaning, has
classified signs into three Categories, outlined
in Exhibit 3.2

* Yaw Tweneboah-Koduah, University 71


of Ghana Business School
* Yaw Tweneboah-Koduah, University 72
of Ghana Business School
■ The most obvious symbols are , of course, words.
Words only have meanings as they are interpreted by
people-and over long periods of time. Meaning of
words can be DENOTATIVE OR CONNOTATIVE.
Denotative -a meaning that is the same for everybody
Connotative-a meaning that is not shared. i.e. having
meaning which is unique to the individual.
Although everybody knows what ‘ice cream’ is
(denotative) some individuals are allergic to it and
might associate the word with allergy (connotative)
Because connotative meanings vary among individuals,
marketers need to develop empathy with their target
* Yaw Tweneboah-Koduah, University 73
of Ghana Business School
audiences , this is easiest when the marketer and the
audience are similar as possible in terms of
background and outlook.
Communication is carried out in many ways than the
verbal or written word. People communicate by
pictures, non verbal sounds, smell, touch, numbers,
time, artefacts and kinetics. many of these are used by
marketers-for example, women's magazines
sometimes have scratch-and-sniff cards which contain
new fragrances.
And charities sometimes send out pens to prospective
donors so that they can more easily fill in direct-debit
contribution form.
* Yaw Tweneboah-Koduah, University 74
of Ghana Business School
■ Exhibit 3.3 demonstrates some ways
these silent communication methods
are used by marketers

* Yaw Tweneboah-Koduah, University 75


of Ghana Business School
* Yaw Tweneboah-Koduah, University 76
of Ghana Business School
Are signs Culturally Universal?
■ The main Problem with silent languages is that they
are not culturally Universal. Most body language
does not transfer well to other cultures, even when the
cultures are otherwise close. Well known examples
are:
The two-fingers sign which is highly insulting to
British people but which can denote merely ‘two’ in
the rest of Europe.
The thumb and index finger circle which denotes
’OK’ to Americans but which denotes ‘money’ to the
Japanese.
* Yaw Tweneboah-Koduah, University 77
of Ghana Business School
ETHNOCENTRISM
■ Communication problems can arise because of
ethnocentrism-this is the practice of assuming
that others think and believe as we do.
Ethnocentrism is one of the few features of
human behaviour that belongs to all cultures;
the tendency is for people to believe that their
own culture is the ‘right’ one and everybody
else’s it at best a poor copy. This easily leads to
misunderstanding and outright rejection of the
communication, and is remarkably common.
* Yaw Tweneboah-Koduah, University 78
of Ghana Business School
HOW MEANING IS CREATED
■Information Processing
This describes the stages of thought that the
individual goes through in order to convert
incoming stimuli into useful knowledge.
There are several models of information
processing. McGuire’s model(1976) is outlined
below:

* Yaw Tweneboah-Koduah, University 79


of Ghana Business School
■ Exposure-the consumer have proximity to the
message.
■ Attention-the consumer must be aware of the
message and must allocate information
processing capacity to it.
■ Comprehension-the consumer must understand
the message, interpreting it to get the meaning
that the sender intends it to have.
■ Acceptance- the message must be absorbed
into the consumer's existing set of beliefs and
knowledge. If existing attitudes and beliefs are
* Yaw Tweneboah-Koduah, University 80
of Ghana Business School
changed during this process then persuasion has
also occurred.
❑ Retention-the message becomes part of the
individual’s long-term memory.

Marketing communications clearly involves


much more than merely placing as many
adverts as possible in as many place as
possible. The message must key in to the
consumer’s existing thought patterns and
patterns of belief.
* Yaw Tweneboah-Koduah, University 81
of Ghana Business School
Perception
■ Perception is the process by which individuals select
information from surrounding environment and
synthesise it into a world-view. Because there is so
much going on around us at one time, we usually
select only that which is most immediate or
interesting, depending on our level of involvement.
Inevitably this means that there are gaps in each
individual’s view of the world, and these gaps are
usually filled in by using previous experience, or
analogies drawn from elsewhere.

* Yaw Tweneboah-Koduah, University 82


of Ghana Business School
Each individual’s world map differs from every
other individual’s because it is, in part, a
construct of the imagination.

■ Part of the function of marketing


communications is to ensure that the product
occupies the right place in the consumer’s
world-view. If the product is a high-quality,
high priced product then it needs to be mapped
next to other premium products; this affect the
type and style of the communications.
* Yaw Tweneboah-Koduah, University 83
of Ghana Business School
If, on the other hand, the product is a cheap,
serviceable version then it needs to be mapped
next to other everyday products.

* Yaw Tweneboah-Koduah, University 84


of Ghana Business School
Lecture 5

* Yaw Tweneboah-Koduah, University 85


of Ghana Business School
Marketing Communications Media
■ Marketing communication media are all forms
of media through which marketing
communications messages are conveyed.
They take very many different forms from
television broadcasts to a key ring carrying a
company’s logo.

* Yaw Tweneboah-Koduah, University 86


of Ghana Business School
Marketing communications media
possibilities
1. PRESS-
Newspapers-Daily, weekly, weekend, local,
regional, national
Magazines-
2. Television-regional, National, international
3. Cinema
4. Posters-
Outdoors-on cars, shopping trolleys,
billboards, banners, sports grounds site etc.
* Yaw Tweneboah-Koduah, University 87
of Ghana Business School
■ Indoor-at point of sales and at exhibitions, on
windows, counters, shelves, hanging signs, in
public toilets etc.

* Yaw Tweneboah-Koduah, University 88


of Ghana Business School
5. Radio-Local, regional, national
6. The internet
7. Direct mail-leaflets and letters delivered
through the post or by hand.
8. People/word of mouth
sales staff, other employees, customers and
consumers, members of the media, members of
the trade.
9. Leaflets and brochures-all sorts from annual
financial report brochures, and catalogues for
special events
* Yaw Tweneboah-Koduah, University 89
of Ghana Business School
10.Stationery-business cards, letterheads,
envelops, memos, fax invoices, receipts,
pencils and pens, paperclips, etc.
11. Packaging

12. Merchandise items- calendars, diaries, greeting


cards, labels, all forms of clothing items,
nameplates, cups, badges
13. Point-of-sale displays-shelf displays, posters,
exhibition boards and stands.

* Yaw Tweneboah-Koduah, University 90


of Ghana Business School
11. Ambient Media –less usual,
1. Telephone-land and mobile
2. beer mart
3. Floor mart
4. Balloons
5. stickers
6. bags
7. flags

* Yaw Tweneboah-Koduah, University 91


of Ghana Business School
Central role of media
■ In our marketing Communications process
model we can see the important central role
media plays in carrying marketing
communications messages from the sender to
the receiver. When carefully selected, the
media carry our messages to our chosen
receivers (target audiences) without undue
wastage. If the media is badly selected it can
result in our messages achieving little impact,
* Yaw Tweneboah-Koduah, University 92
of Ghana Business School
or being received by too few or the wrong
people.

In a crowded market place, messages can go


unnoticed. Media, carefully controlled and
utilized, can make all the difference.
Selection of the right media is fundamental to the
success of marketing communications. For
integrated marketing communications a range
of media should be selected and used jointly
for best effect.
* Yaw Tweneboah-Koduah, University 93
of Ghana Business School
■ It is the case, however, that no matter how well
selected, there is always the potential for
messages to be received by non-target
audience members. As such, there is always
likely to be a degree of wastage.
■ It is the task of media planners and buyers to
reach the right audiences with minimum
wastage but with maximum effect
■ What is important to recognise is that without
media there can be no marketing
communications.
* Yaw Tweneboah-Koduah, University 94
of Ghana Business School
■ An understanding , therefore, of basic range
and features of the media is an important
requirement for using media well.

■ Features of the Media


■ Reaching a mass market
■ Reaching a highly defined niche
■ Creating impact
■ Creating awareness
■ Attracting and holding attention
* Yaw Tweneboah-Koduah, University 95
of Ghana Business School
■ Create associations with certain values
■ Developing a strong image
■ Suitability for enhancing the brand
■ Encouraging direct action
■ Enhancing credibility/prestige
■ Conveying detail information
■ Use as a reference source
■ Appealing to many senses
■ Creating favourable trade reaction

* Yaw Tweneboah-Koduah, University 96


of Ghana Business School
■ Being flexible in its use as a marketing
communications media vehicle.
■ Availability
■ longevity

* Yaw Tweneboah-Koduah, University 97


of Ghana Business School
Advantages of TV
■ Highly visible
■ High impact
■ Low cost per exposure
■ Perceived as having high credibility/prestige
■ Ability to demonstrate products
■ Can generate excitement and involvement
■ Good for generating high levels of awareness

* Yaw Tweneboah-Koduah, University 98


of Ghana Business School
Disadvantages of TV
■ May not offer sufficient target audience
selectivity
■ Viewers attention not always focused on TV.
■ Can take a long time to produce
■ Zapping easy
■ Information content limited
■ High production/airtime cost
■ Typically long lead time and difficult to
change message at short notice

* Yaw Tweneboah-Koduah, University 99


of Ghana Business School
Advantages of Radio
■ Low Airtime cost
■ Low production cost
■ Can be produced and aired quickly
■ Message can be changed quickly
■ Direct response can be facilitated
■ Geographic selectivity/local coverage

* Yaw Tweneboah-Koduah, University 100


of Ghana Business School
Disadvantages of Radio
■ Listeners’ attention often distracted while
doing other things.
■ Creative treatment and quality often very poor
■ Perceived as lacking in persuasiveness by
many.
■ Can not demonstrate products

* Yaw Tweneboah-Koduah, University 101


of Ghana Business School
Advantages of Newspapers
■ Short lead time
■ Frequent publications
■ Geographical selectivity possible
■ Newspapers are actively read
■ High information content possible
■ Broad acceptance/believability

* Yaw Tweneboah-Koduah, University 102


of Ghana Business School
Disadvantages of Newspapers
■ Clutter
■ Poor reproduction
■ Short life span unlike magazines

* Yaw Tweneboah-Koduah, University 103


of Ghana Business School
Advantages of Magazines
■ Highly selective
■ Production cost can be low
■ High information content possible
■ Short lead time
■ Frequent publication available for many titles
■ Can have extended life (Pass-along audience)
■ Good quality reproduction

* Yaw Tweneboah-Koduah, University 104


of Ghana Business School
Disadvantages of magazines
■ Long lead time for some titles
■ Clutter
■ Limited geographic options in key titles

* Yaw Tweneboah-Koduah, University 105


of Ghana Business School
Media effect-the media as
relationship builder
■ Media produce relationships with the receiver
that may be weak or strong, important or
incidental. Whatever they are, the media have
an impact on the audience.
■ Viewing marketing communication on the
back of a bus while driving to work generates a
different relationship and sort of response than
watching a commercial in a cinema prior to the
start of a film you are eager to see.
* Yaw Tweneboah-Koduah, University 106
of Ghana Business School
■ One approach to identifying the difference
between the media and our responses to them
is to use the following classification.
■ Mode of transmission-mode of transmission
represents the ‘technical’ aspects of the media
and significantly affects the way in which a
medium is made available to us. The mode of
transmission has a major impact on how we
‘participate’ in the media.

* Yaw Tweneboah-Koduah, University 107


of Ghana Business School
■ Timing-Timing refers to the time of day at
which the media (and so the marketing
communication) can be seen or heard. Eg.
Breakfast TV tends to generate a different
relationship with the audience than that
generated by afternoon or evening TV.
■ Morning newspaper may be read in bed, over
breakfast, while travelling to work, etc. and the
state of mind, mood, responsiveness and
attentiveness, in short the relationship induced,
is likely to differ at these different times.

* Yaw Tweneboah-Koduah, University 108


of Ghana Business School
■ Context-
■ Format-Layout, size, use of colors, graphics,
design, and general style of the marketing
communications.
■ Reception –if we are actively searching for
information, the media can perform so much
better. This is perhaps why the small and
insignificant classified lineage adverts can be
so effective- we are actually wanting
information and will take the trouble to seek it
out.
* Yaw Tweneboah-Koduah, University 109
of Ghana Business School
Lecture 6

* Yaw Tweneboah-Koduah, University 110


of Ghana Business School
The changing marketing
communications environment
■ The Macro and micro environment-the context
of marketing communications
■ The macro environment-is the wider
environment in which the organisation
operates. It includes both internal and external
factors that affect the organisation.

* Yaw Tweneboah-Koduah, University 111


of Ghana Business School
■ The Micro environment-is the immediate
environment or surroundings in which
marketing communications occur.
■ In the context of marketing communications,
micro environmental factors relate to the
media context in which any form of promotion
appears. They are those elements which
surround the piece of promotion.
This may be
■ the editorial content of a newspaper

* Yaw Tweneboah-Koduah, University 112


of Ghana Business School
■ Other pieces of mail which arrive at the same
time as a leaflet drop,
■ other products placed next to a shelf display in
a supermarket,
■ other stands at an exhibition,

■ Programmes which come before and after the


commercial break on television
The micro-environment has a major impact upon
the effectiveness of marketing
communications.

* Yaw Tweneboah-Koduah, University 113


of Ghana Business School
■ Sometimes the context reduces the impact or value
of the communications effort. It may even have a
negative effect.
■ Example
A local restaurant owner decided (or was
persuaded) that it would be a good idea to
advertise on the side of a bin bags. The bags were
distributed by refuse collectors as they collected
household rubbish. Promoting a good eating food
on the side of rubbish bags is not one that readily
springs to mind as a good idea.
* Yaw Tweneboah-Koduah, University 114
of Ghana Business School
Macro -environment
Analysis of the macro-environment
❖ PEST-political, economic, social, technological
❖ PRESTCOM-regulatory, competitive,
organizational env. Marketing env.
❖ SWOT

* Yaw Tweneboah-Koduah, University 115


of Ghana Business School
MACRO ENVIRONMENTAL CHANGES
AFFECTING MARKETING
COMMUNICATIONS
1. Computer technology-storage, analysis,
retrieval, databases
❖ Access to our money through ATM
❖ We can practically carry our office around
in a laptop
❖ Flight can be booked on line
❖ We can easily store and retrieve information
on customers

* Yaw Tweneboah-Koduah, University 116


of Ghana Business School
❖ We can shop from the comfort of our homes
Advance in computers have made all these
possible
2. Communications technology-international
telecommunications, satellite, cable,
internet/new media.
Banner advertising on other companies web
page
Permission marketing-this prevents spam
emailing

* Yaw Tweneboah-Koduah, University 117


of Ghana Business School
3. Fragmentation of media
4. Social change- demographic, lifestyles, attitudes,
values, spending, expectations.
As people (and their relationships) change, so do the
means and approaches used to communicate with
them.
What all this means for the marketing communications
industry is a major challenge in keeping pace with
new realities, in maintaining credible
communications with audiences who are talking
‘new languages’ and in generating marketing
communications priorities

* Yaw Tweneboah-Koduah, University 118


of Ghana Business School
5. Increased understanding and emphasis on
market segmentation and targeting.
6. Changing role and expectations of
marketing-relationship marketing; loyalty
marketing; greater marketing accountability;
internet marketing.
7. Industry structure-power of the retailer
❖ Push Promotion strategy
❖ Pull Promotion strategy
8. Growth of service sector
9. Manufacturing systems technology-mass
production to mass customisation.
* Yaw Tweneboah-Koduah, University 119
of Ghana Business School
10. Changing national and international
economies
Taxes rise and fall
Disposable income vary
Boom
Bust-’belt has to be tightened’
Strong currency leads to cheaper imports but
have effects on local manufactures,
employment and spending power as exports
become too expensive for overseas market.

* Yaw Tweneboah-Koduah, University 120


of Ghana Business School
11. International competition and markets-Global
brands
12. Marketing communications industry
regulation

* Yaw Tweneboah-Koduah, University 121


of Ghana Business School
Lecture 7

* Yaw Tweneboah-Koduah, University 122


of Ghana Business School
The international Context of
marketing Communications
■ Motivations to internationalise:
1. Domestic market saturation, making it more
expensive to gain market share
2. Limit placed on domestic growth in the home
country by public policy limiting further
growth in market share of an organisation
3. Identification of growth or niche
opportunities in the international marketplace

* Yaw Tweneboah-Koduah, University 123


of Ghana Business School
4. Recognition of higher profits in the
international marketplace because of
differences in competitive and/or cost
structures. China
5. Risk distribution across the international
market place, so that the organisation is not
susceptible to national economic cycles
6. Opportunities of buying power consolidation
within the organisation or through
joint-buying arrangements.

* Yaw Tweneboah-Koduah, University 124


of Ghana Business School
The international dimensions of the
marketing communications
environment
■ Political and regulatory environment
• Different countries have different ethical ideas
and legislation-eg. Diet coke in UK, but light
coke in Germany.
• The content of the creative approach is also
affected by political and regulatory
environment. Eg. Benetton ‘black Mama’
posters advertisement featuring the bare
* Yaw Tweneboah-Koduah, University 125
of Ghana Business School
breast of a black woman nursing a white child
was banned in the US because it contravened
regulations regarding nudity. But it was
successful in france., Kasapreko Alomo Root
wine and Dollar Gin advert will not be
successful in UK.

The political and regulatory environment also


has an impact on the following:

* Yaw Tweneboah-Koduah, University 126


of Ghana Business School
The media that marketing communicators are
permitted to use.
The use of foreign language in marketing
communications
The use of advertising material prepared
outside the country.
The use of local versus international
advertising agencies.
The specific taxes that may be levied against
marketing communications.

* Yaw Tweneboah-Koduah, University 127


of Ghana Business School
Economic environment
■ The structure of financial institutions and the
payment system-interest rates
■ , inflation, income levels and disposable
income, percentage of income spent on food
etc.

* Yaw Tweneboah-Koduah, University 128


of Ghana Business School
Social environment
■ Culture
■ Sub-culture
■ Country of origin influences, ethnocentrism
and xenophilia, country of origin image

* Yaw Tweneboah-Koduah, University 129


of Ghana Business School
■ Technological and competitive environment
■ Organisational environment- centralised,

decentralised
■ Market environment-market expectations

customer service

* Yaw Tweneboah-Koduah, University 130


of Ghana Business School
Standardisation versus adaptation of
marketing communications
■ The use of similar or identical marketing
communications across countries;

When is standardisation appropriate?


Brand that can be adapted for a visual appeal,
instead of trying to translate words into dozens
of languages.

* Yaw Tweneboah-Koduah, University 131


of Ghana Business School
■ Brands that are promoted with image
campaigns that play to universal appeals such
as sex or wealth.
■ High tech products and new products coming
to the world for the first time, not steeped in
the cultural heritage of the country.
■ Products with the nationalistic flavour if the
country has a reputation in the field. Eg. Ghana
Chocolate, Italian shoes, Swiss watch etc.
■ A products that appeal to a market segment
with universally similar tastes, interests, needs
and values
* Yaw Tweneboah-Koduah, University 132
of Ghana Business School
* Yaw Tweneboah-Koduah, University 133
of Ghana Business School
Strategic responses to the
standardisation question
■ PRESTCOM environment produces both
centripetal and centrifugal forces impacting on
the organisation’s decision to standardise its
products and marketing communications.
■ Centripetal forces –internal organisation forces
(e.g. policy, structure, culture, economies of
scale) ‘pulling’ an organisation to standardise
marketing programmes.

* Yaw Tweneboah-Koduah, University 134


of Ghana Business School
■ Centrifugal forces- country level forces that
push an organisation to adapt marketing
programmes. The country-level variables
include values, language, nationalism, customs
and traditions, and create a varying degree of
cultural distance between the domestic and
target countries.

* Yaw Tweneboah-Koduah, University 135


of Ghana Business School
Four key strategies for international
companies
■ A global strategy-strategy that is based on
taking advantage of cultural similarities to
produce standardised, global marketing
communications.
■ Global niche strategy-is based on the
identification of a similar group or groups of
people across countries. e.g. it is perceived that
students in the UK, France, Germany, and
Greece have similar life style.

* Yaw Tweneboah-Koduah, University 136


of Ghana Business School
■ A multinational strategy-is based on the
premise of cross-cultural differences and is
guided by belief that each foreign market
requires its own culturally adapted marketing
communications.
■ A customisation strategy-recognises the
differences in consumers both within and
between cultures and, therefore, communicates
on an individual basis.

* Yaw Tweneboah-Koduah, University 137


of Ghana Business School
The impact of the international
context on marketing
communications
■ Marketing communications and symbols-as
symbolic interpretations can differ across
cultures, marketing communicator must be
aware of symbols utilised in an international
context. For example meaning associated with
colours differ cross-culturally,
In many Asian countries, white is associates
with death and grief compared with birth and
happiness connotations in Ghana
* Yaw Tweneboah-Koduah, University 138
of Ghana Business School
■Marketing Communications and cultural
values-the values evident in a particular culture
will have an impact on the type of
communications appeals that are appropriate.
E.g. German advertising appeals tend to be
more effective if they are rational and
cognitive, French if they are emotional, and
British if they are self critical and humorous.
Korean advertisements include significantly
more elderly persons than Ghana, US, UK, and
France as wisdom is highly valued in far
eastern cultures
* Yaw Tweneboah-Koduah, University 139
of Ghana Business School
■ Marketing Communications and Language
Translation errors. E.g.
❖ General Motors, translating its slogan ‘Body
for Fischer’ into Flemish for its Belgium
campaign, belatedly found out that the
meaning was equivalent to ‘Corpse for
Fischer’.
❖ General Motors’ Vauxhall Nova was translated
in Spanish market as ‘No Go’
❖ The Farsi translation of Kentucky Fried
Chicken’s logo ‘Finger Licking’ Good became
‘It’s so good you will eat your fingers in Iran
* Yaw Tweneboah-Koduah, University 140
of Ghana Business School
❖ In Italy, ‘Schweppes Tonic Water’ had to be
reduced to ‘Schweppes Tonica’ because ‘il
water, turned out to be an idiom for a
bathroom.

* Yaw Tweneboah-Koduah, University 141


of Ghana Business School
Lecture 8

* Yaw Tweneboah-Koduah, University 142


of Ghana Business School
Image and Brand Management
■ Image and brand management comprises four
key objectives:
• To understand what the organisation’s brand
(s) comprises
• To communicate the brand (s) to channel
intermediaries, consumers and other target
audiences
• To manage brands through their life cycles
• To enhance brand equity
* Yaw Tweneboah-Koduah, University 143
of Ghana Business School
Branding
■ A brand is a distinguishing name and/or symbols
(such as a logo, trade mark, or a pack design)
intended to identify the goods and services of either
one seller or group of sellers, and to differentiate
those goods or services from those of competitors.
(Aaker 1991)

■ A brand is designed to enable customers to identify


product or services which promise specific benefits.
(Wilson 1995)

* Yaw Tweneboah-Koduah, University 144


of Ghana Business School
■ A name, term, design, symbol or any other
feature that identifies one seller’s goods or
services from those of other sellers.

■ Growth of Branding.
the real growth of branding occurred after the
civil war in America with the growth of
national firms and national advertising media
(Kotler 1994). Picture the American wild west
many years Ago.

* Yaw Tweneboah-Koduah, University 145


of Ghana Business School
Branding Strategies
1. Corporate umbrella branding-the
organisation and all its products are branded
under the same corporate name, for eg.
Guinness, Heinz, Obaapa etc
2. Family umbrella branding-the organisation
has a separate brand and separate brand for
its products.
3. Range branding- A number of related
products are grouped together under one
brand name.
* Yaw Tweneboah-Koduah, University 146
of Ghana Business School
4. Individual Branding-each product is branded
separately.
There has been a significant move from
individual line branding towards corporate
branding in the last twelve years.
i. The cost of creating and supporting
individual brands has become prohibitive.
ii. Increased retail power is making it difficult
for stand alone brands to compete in some
markets.

* Yaw Tweneboah-Koduah, University 147


of Ghana Business School
The Corporate Brand
■ The corporate brands can be seen to
compromise three discrete but overlapping
concepts:
1. Corporate personality-is the term used in a
similar way to a person’s personality. It is,
essentially, who the organisation is. ‘it is the
soul, the persona, the culture of the
organisation manifested in some way.

* Yaw Tweneboah-Koduah, University 148


of Ghana Business School
Corporate personality is relatively enduring although it
can undergo transformation through merger,
acquisition, or change in senior management.
Mission statements often try to capture a sense of
corporate personality.
2. Corporate Identity-is the means by which corporate
personality is projected, transmitted, or
communicated. Corporate identity is the basis on
which the organisation is know and understood
(whether or not this is deliberate and planned,
intentional or unintentional, managed well or badly)

* Yaw Tweneboah-Koduah, University 149


of Ghana Business School
It is the clothes and mannerisms of the
organisation. Everything the organisation
does transmit a message . The outward signs
of corporate identity have to be consistent, if
not they can lead to ambiguity and confusion.
3. Corporate Image-the impression of an
organisation , created by the corporate
identity. It is the perception held of the
organisation by its audiences.
• Identity means the sum of all the ways a
company chooses to identify itself to all its
publics.

* Yaw Tweneboah-Koduah, University 150


of Ghana Business School
• Image on the other hand is the perception of
the company by these public.

❑ Own-label branding-carry the name of resellers


instead of the manufacturers. Next in UK,
Compu Ghana (expert brand), etc. Adv &
Disadv.

* Yaw Tweneboah-Koduah, University 151


of Ghana Business School
The components of a Brand
■ Brand Name
■ Brand Logo

The benefits of branding to the Consumer:


1. Branding helps to identify a product. It acts
as a shorthand and time saving device to
facilitate the purchase of items that satisfy
consumer needs.
* Yaw Tweneboah-Koduah, University 152
of Ghana Business School
2. The brand also represents credible guarantee
of quality and satisfaction to the consumer.
This guarantee of satisfaction is often
important enough to the consumer that they
are willing to pay an abnormal price.
3. Representation-embodies what the individual
stands for. E.g. Social status.

To the brand owner-


1. Price premium-increase profit margin
2. Brand loyalty-reduce threat of price war
* Yaw Tweneboah-Koduah, University 153
of Ghana Business School
3. Growth –New product development
4. Barrier to entry-Competitors find it difficult
to take market share.
5. Legal device-Protection from counterfeiting.

Brand Equity-the value of the brand’s name,


symbol, associations and reputation to all
target audiences who interact with it.
Brand Value-the financial expression of brand
equity.

* Yaw Tweneboah-Koduah, University 154


of Ghana Business School
Measuring Brand Equity
A. Brand Description-this is what the brand
represents, depending on the associations
(durable, safety, comfort), values and beliefs
that the customer has about the brand. It
includes the brand’s distinctiveness, its
perceived quality , brand Value, and the
esteem with which it is held in the eyes of the
consumer.

* Yaw Tweneboah-Koduah, University 155


of Ghana Business School
B. Brand Strength-this indicates the
prominence and relative dominance of a
brand.
❖ Brand Awareness
I. Prompt awareness
II. Unprompted awareness
❖ Brand Heritage-is the corporate experience
and reputation that a brand has acquired
overtime including its origin and advertising
development. E.g. a long standing
reputation for quality and consistency.

* Yaw Tweneboah-Koduah, University 156


of Ghana Business School
❖ Brand loyalty-
I. the customer’s willingness to repeat
purchase.
II. To buy other brands of the brand owner
(cross selling strategy)
III. To buy higher value brands (up-selling
strategy)
❑ The Loyalty Lather:
1. Not purchase a brand before-Prospect
2. Trial-Customer
3. Repeat purchase-Client
* Yaw Tweneboah-Koduah, University 157
of Ghana Business School
4. Brand insistence-Advocate

C. Brand Future-this reflects a brand’s ability to


survive future changes in legislation,
technology, retail structure and consumer
patterns and it also indicates its growth
potential.

* Yaw Tweneboah-Koduah, University 158


of Ghana Business School
Lecture 9

* Yaw Tweneboah-Koduah, University 159


of Ghana Business School
Customer/audience relationship
management
■ Customer relationship management (CRM)
has become a popular focus in marketing and
business in general over resent years. This is
because:
Customer acquisition and retention has become
top management priorities.
The trend towards e-business and the
increasing importance of the internet as a
customer care and sales channel have brought
* Yaw Tweneboah-Koduah, University 160
of Ghana Business School
a feeling of uncertainty to companies.
The emphasis on the need to view customers in
the long term in developing relationship rather
than consigning customers to short term
transaction.

This has given rise to the so-called shift from


transactional Marketing to relationship
marketing.

* Yaw Tweneboah-Koduah, University 161


of Ghana Business School
■ Transactional Marketing – marketing in which
the emphasis is placed on each individual
purchase situation in contrast to relationship
marketing.
■ Relationship Marketing-emphasises the
importance of the relationship developed
between an organisation and other parties
including customers, partners, suppliers, and
the trade. Because issues like customer loyalty,
brand loyalty and customer lifetime value have
become key to marketing planning and
strategy.
* Yaw Tweneboah-Koduah, University 162
of Ghana Business School
■ Customer Loyalty
■ Brand Loyalty
■ Customer lifetime value

■Definition of Customer Relationship Management


(CRM)
The practice of identifying, attracting and retaining
the most valuable customer to generate profitable
growth. It is the process by which companies
manage relationships with their existing customers
and prospects
* Yaw Tweneboah-Koduah, University 163
of Ghana Business School
■ The Gartner group (2000) highlight the
importance and relevance of everyone in the
business working at the customer interface. For
this reason we have Customer Contact
Management.
■ Customer Contact Management- the strategic
and tactical task involved in the management
of positive, personal communication between
an organisation and its customers; recognising
this should be complementary to image and
brand management.

* Yaw Tweneboah-Koduah, University 164


of Ghana Business School
■ These customer contacts have also been
called ‘moment of truth’, so named by Jan
Carlzon (of SAS airlines) to identify all
occasions when customers interact with a
firm whatever the medium of contact-
a. Face-to-face
b. On the telephone
c. Literature
d. Direct mail
e. The internet

* Yaw Tweneboah-Koduah, University 165


of Ghana Business School
■ Much of Marketing communication theory is
focused on increasing Awareness and
influencing behaviour as in the classical AIDA
model, for example.
■ A-attention
■ I-interest
■ D-desire
■ A-Action
■ However, the experience of the potential and
actual customer in dealing with an organisation
is likely to have a lasting impression on
individuals.
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of Ghana Business School
■ If the contact experience meets the customer’s
expectation, then the experience will have
positive effects on the individual.
But if the experience is negative, the individual
will have negative perception about the
company.-
When customers cannot make contact on a
phone, how will they feel if the customer
service line is constantly engage?
When the technical support number turn out to
be an automated response call handler?
* Yaw Tweneboah-Koduah, University 167
of Ghana Business School
■ When they wish to place an order but the
selling organisation procedures make it
difficult to do so.
■ It does not make sense for organisations to
spend money on advertisement if they cannot
handle telephone enquiries.
■ We live in a word where people expect
immediate response.
■ The intensity of competition means if you
cannot provide immediate response to the
customer, someone else will probably will.-
e.g.

* Yaw Tweneboah-Koduah, University 168


of Ghana Business School
■ Customer contact management in business to
business marketing
communications.-Customer contribute about
20% of total sales. You will have to manage
your relationship very well. Massilly
group-Voltic, Coca Cola, etc.
■ Database marketing
✔ Components of data base marketing.
✔ Computer Aided Sales Support
✔ Direct response marketing
✔ Customer information and services-free phone
* Yaw Tweneboah-Koduah, University 169
of Ghana Business School
Or local number, using email or over the internet.

Strategic implications of customer contact management.


1. Integration
2. Coverage and penetration-Use existing Customers
3. Reducing cost of sales and communications
4. Customer retention/relationship marketing

* Yaw Tweneboah-Koduah, University 170


of Ghana Business School
Lecture 10

* Yaw Tweneboah-Koduah, University 171


of Ghana Business School
The marketing communications plan
■ Situation analysis: Research-Where are we
now?
❖ Organisational analysis
i. What are the company sales and profit?
ii. What is the company mission and objectives
in general and for its various products and
services?
iii. What financial, managerial resources are
available
* Yaw Tweneboah-Koduah, University 172
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iv. What have been the previous campaigns?
How effective have they been and why?

Competitor analysis
i. Who are direct and indirect competitors of
the brand
ii. What resources do they have?
iii. What are the real and perceived distinctions
between brands?
iv. What have been the competitors’ marketing
communications in the past? What impact
have they had?
* Yaw Tweneboah-Koduah, University 173
of Ghana Business School
v. What do we expect our competitors to do in
the future?

Consumer analysis
i. Who are the customers and consumers?
What are our customer profile?
ii. What motivate them to buy and consume?
What are their buying and use habits? How
do they respond to our competitors’
offerings? What are their buying and
consumption patterns?
* Yaw Tweneboah-Koduah, University 174
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iii. What do they look for in the brand? What are
their brand perceptions.

Market analysis
i. What is the sales distribution pattern?
ii. What geographic areas warrant specific
attention?
iii. What population segment (s) are most likely
to respond to the company?
iv. What are the market opportunities?

* Yaw Tweneboah-Koduah, University 175


of Ghana Business School
v. What significant changes are taking place
with regard to political, regulatory,
economic, social and technological forces.

Product analysis
i. Does the product have the ability to give
consumers what they want?
ii. Does the delivery of the product match
consumers’ expectations?
iii. Are there production and distribution issues
affecting the availability of the product?
* Yaw Tweneboah-Koduah, University 176
of Ghana Business School
2. Determine marketing communications
targets-who are we talking to?
3. Setting budget allocations, making resources
available: What resources do we need.-men,
money, time
4. Objective setting: what are we trying to
achieve? Objective should be:
i. Specific
ii. Measurable-percentage
iii. Achievable
iv. Realistic

* Yaw Tweneboah-Koduah, University 177


of Ghana Business School
v. Relevant
vi. Targeted
vii. Timed

5. Strategic decision-making: strategy-how


could we get there?
6. Operational decision-making: Tactics-what
specific activities do we need to do to get
there?
7. Campaign management: Implementation and
action

* Yaw Tweneboah-Koduah, University 178


of Ghana Business School
8. Campaign evaluation: control-are we getting
there?
i. What was expected to happen?
ii. What did happen
iii. What was the effect of the marketing
communications elements as well as their
collective effects? Can these effects be
separated from other factors?
iv. What were the reasons for success or failure?
v. What was learnt from the campaign?
vi. What should happen next?

* Yaw Tweneboah-Koduah, University 179


of Ghana Business School
* Yaw Tweneboah-Koduah, University 180
of Ghana Business School
* Yaw Tweneboah-Koduah, University 181
of Ghana Business School

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