Marketing Management - II

Marketing Communications

Prof. Preeti Virdi 1

 Communicating Value
Represent the voice of the organization/brand to
build relationships with consumers

Marketing communications attempt to:

Promotion Product inform,
persuade, and
remind
consumers, directly or indirectly, about the
products/service offering
Place Price

Prof. Preeti Virdi 2

 Promotion Mix
Set of all the promotional variables a Advertising
Advertising
business uses to create, maintain and
Digital
increase the demand for its brands or Marketing
Sales
Promotion
offerings

Product
Placement
IMC Out-of-
home
Media

Personal
Internet Selling

Point-of-
Purchase

and more!

Prof. Preeti Virdi 3

 What Marketing Communications discusses?
▪ Company Image

▪ Benefits and Features of the product/service offerings

▪ Target Audience

▪ Product Availability – Time and Place

▪ Special Offers

▪ Persuasion to purchase the product

▪ Create and extend product recall and recognition

Prof. Preeti Virdi 4
 Benefits for Marketing Communications
▪ Creates Strong Brand Associations

▪ Positioning the Product offerings

▪ Improves the company’s ability to reach:

▪ the right consumer
▪ at the right place
▪ at the right time
▪ with the right message

▪ Synergy between Promotional Tools

▪ Better use of Communication Resources

▪ Balancing the ‘push’ and ‘pull’ strategies

Prof. Preeti Virdi 5

 Communication Process Models
Macro model of the communication process
▪ Provide an overview of communication process in general, not consumer specific response

Prof. Preeti Virdi 6

 Communication Process Models
Micro models of communication
▪ Focus on consumer's specific responses - Cognitive, Affective, and Behavioral stage

Prof. Preeti Virdi 7

 Communication Process Models
Micro models of communication
▪ Focus on consumer's specific responses - Cognitive, affective, and behavioral stage

5As Model

Aware Appeal Ask Act Advocate

(I Know) (I Like) (I’m Convinced) (I’m Buying) (I Recommend)

Prof. Preeti Virdi 8

Steps to Develop Effective Communications
Determine Objectives

Identify Target Audience

Design Communication

Select Channels

Establish Budget

Decide on Promotion Mix

Measure Results

Prof. Preeti Virdi 9

Steps to Develop Effective Communications
Determine Objectives

Identify Target Audience

The marketer might want to put something into the
consumer's mind, change an attitude, or get the
Design Communication consumer to act.

Select Channels
The marketer can be seeking a cognitive,
affective, or behavioral response.
Establish Budget

Decide on Promotion Mix

Measure Results

Prof. Preeti Virdi 10

Determining Objective

Prof. Preeti Virdi 11

Steps to Develop Effective Communications
Determine Objectives
The target audience: potential buyers of the
Identify Target Audience company's products, current users, deciders, or
influencers; individuals, groups, or the general
public.
Design Communication
The target audience factor substantially impacts
Select Channels the communicator's decisions on what to say, how
to say it, when to say it, where to say it, and to
whom to say it.
Establish Budget

Decide on Promotion Mix

Measure Results

Prof. Preeti Virdi 12

Steps to Develop Effective Communications
Determine Objectives What to say (message strategy)

▪ Management searches for appeals, themes, or ideas

Identify Target Audience that tie into the brand positioning and help establish
points-of-parity or points-of-difference.
Design Communication
▪ Some of these may relate directly to product or
service performance (the quality, economy, or
Select Channels
value of the brand), whereas others may relate to
more extrinsic considerations (the brand as being
Establish Budget contemporary, popular or traditional)

Decide on Promotion Mix The different appeals are - rational, emotional, and
moral

Measure Results

Prof. Preeti Virdi 13

Steps to Develop Effective Communications
Determine Objectives How to say it (creative strategy)

▪ How marketers translate their messages into a specific

Identify Target Audience
Design Communication
Select Channels
communication, can be classified as either
informational appeal or transformational appeal
▪ Informational appeal elaborates on attributes or
benefits. Such appeals assume the consumer is
processing the communication very rationally

Establish Budget ▪ Transformational appeal elaborates on a non-

product-related benefit or image. For example, it
Decide on Promotion Mix might depict what kind of a person that uses the
brand

Measure Results

Prof. Preeti Virdi 14

Steps to Develop Effective Communications
Determine Objectives Who should say it (message source)

Identify Target Audience ▪ Messages delivered by attractive or popular sources

achieve higher attention and recall. Therefore,
Design Communication advertisers often use celebrities as spokespeople

▪ What is important is the spokesperson's credibility:

Select Channels
▪ Expertise – specialized knowledge the
communicator possesses to back the claim
Establish Budget
▪ Trustworthiness – how objective and honest the
Decide on Promotion Mix source is perceived to be

▪ Likeability – source’s attractiveness

Measure Results

Prof. Preeti Virdi 15

Steps to Develop Effective Communications
Determine Objectives
Communication channels may be personal and non-
Identify Target Audience personal.

Personal communication channels involve two or more

Design Communication persons communicating directly with each other face-to-
face, person-to-audience, over the telephone, or through
Select Channels e-mail.

Nonpersonal channels are communications directed to

Establish Budget more than one person and include media, sales promotion,
events and experiences, atmosphere and public relations.
Decide on Promotion Mix

Measure Results

Prof. Preeti Virdi 16

Steps to Develop Effective Communications
Determine Objectives
▪ Affordable Method: Setting the communication
Identify Target Audience budget at what managers think the company can
afford.

Design Communication ▪ Percentage of Sales Method: Setting the

communication budget at a specified percentage of
Select Channels current or anticipated sales or the sales price.

▪ Competitive Parity Method: Achieve share-of-voice

Establish Budget parity with competitors.

Decide on Promotion Mix ▪ Objective and Task Method: Specifying Objectives,

Tasks and Activities.
Measure Results

Prof. Preeti Virdi 17

Steps to Develop Effective Communications
Determine Objectives ▪ Advertising is any paid form of non-
personal presentation and Advertising
Advertising
Identify Target Audience promotion of ideas, goods or
services by an identified person Digital
Marketing
▪ Focusses on:
Design Communication ▪ Market, Mission, Money,
Message, Media, Measurement
Marketing
Select Channels ▪ Advertising involves: Product Communicati
Placement
▪ Pervasiveness: Repetition of on
message many times
Establish Budget
▪ Amplified expressiveness:
Dramatizing the offerings
Internet
Decide on Promotion Mix ▪ Impersonality: Audience is not
obligated to pay attention to Point-of-
Measure Results advertising Purchase

Prof. Preeti Virdi 18

Steps to Develop Effective Communications
Determine Objectives ▪ Consists of collection of incentives
tools, mostly short-term, designed to Advertising
Advertising
Identify Target Audience stimulate the quicker or greater
purchase of products Digital
Marketing
Design Communication ▪ Consumer promotion: Directed
to consumers -samples, coupons,
Marketing
Select Channels cash refund, prices off, free Sales Communicati
Promotion
trials on
▪ Trade promotion: Directed to
Establish Budget
distributors, like display
allowances, free goods
Internet
Decide on Promotion Mix
Point-of-
Purchase
Measure Results

Prof. Preeti Virdi 19

Steps to Develop Effective Communications
Determine Objectives ▪ Includes a variety of programs to
promote or protect a company’s Advertising
Advertising
Identify Target Audience image or individual products
Digital
Marketing
▪ Public Relations plays an important
Design Communication role in:
▪ Launching new products
Marketing
Select Channels ▪ Repositioning the product Public Communicati
Relations
▪ Building interest in a product on
category
Establish Budget
▪ Influencing specific targets
▪ Defending products
Internet
Decide on Promotion Mix ▪ Building corporate image
Point-of-
Purchase
Measure Results

Prof. Preeti Virdi 20

Steps to Develop Effective Communications
▪ Use of consumer direct channels to reach
Determine Objectives and deliver goods, and services to
customers without using marketing Advertising
Advertising
Identify Target Audience middlemen
Digital
Marketing
▪ Channels that can be used are: Direct
Design Communication mail, Catalogue, Tele-marketing, Kiosks
etc.
Marketing
Select Channels Public Communic
▪ Direct marketing is very much suitable for Relations on
niche markets (specialized products for a
Establish Budget specific group of customers)
Direct
Decide on Promotion Mix ▪ Direct marketers can buy mailing list Selling
containing names and addresses of their
Point-of-
target group Purchase
Measure Results

Prof. Preeti Virdi 21

Steps to Develop Effective Communications
Determine Objectives

Identify Target Audience

Design Communication

Select Channels

Establish Budget

Decide on Promotion Mix

Measure Results

Prof. Preeti Virdi 22