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Introduction: Modern marketing process involves something more than just developing a good product, pricing it attractively and making it accessible. It calls for communication with the present and potential stakeholders and the general public. For most companies today, the question is not whether to communicate, but rather what to say, to whom, and how often. Communication: Communication is the unique tool that marketers use to persuade the consumers to act as in a desired way, say to vote, to buy, to donate, to patronize, etc. Communications take many forms, like verbal, visual or symbolic, and convey special meaning that the marketers want to impart to the consumers. Communications can evoke emotions that put consumers in more receptive frames of mind, and it can encourage purchases that help consumers solve problems or avoid negative outcomes. In short, Communications is the bridge between marketers and consumers, and between consumers and their socio-cultural environments. Definition of Communication: We can define “communication” in several ways, but it is most commonly defined as the transmission or flow of message or information from a sender to a receiver thro’ a medium or channel of transmission. In addition to this there’s also a fifth component “feedback” which alerts the sender or is the acknowledgement that the intended message has been received by the receiver. Elements of Communication: Marketers need to understand the fundamental elements of effective communications. The following gives a communications model, which has nine elements or components for the communication process to be complete. These are grouped in to three broad areas; two major parties, two major tools, and four major functions, and one major element of distortion: SENDER→ENCODING→MESSAGE→MEDIA→DECODING→RECEIVER→RESPONSE→ FEEDBACK→ The Two Major Parties a. The Sender The sender is the one who initiates the communication, is the source or originator of communication. The communication source may be formal or informal: i. Formal: A formal communication source can be any profit-oriented organisation or any non-profitoriented organization. ii. Informal: An informal communication source can be any other source like friends, family members, etc.
Gerald Werre: firstname.lastname@example.org Marketing Communications KIM/MUA
iii. Word-of-mouth communication is the second kind which is highly persuasive. Hence it is highly recommended that marketers should encourage detailed and positive word-of-mouth communication about their products and services among consumers. b. The Receiver The receiver is the one who is targeted to receive the communication. Here there are a few types – intended, intermediary and unintended: i. Intended receivers are the receivers of formal marketing communications who are likely to be targeted prospects or customers. ii. Intermediary receivers are the ones who receive the communication by virtue of their involvement in the process, but they are not the prime targets. Normally they are wholesalers, distributors, retailers, channel partners, etc. iii. Unintended receivers are everyone else who are exposed to the message, but are not specifically targeted by the sender, like general public, company employees, suppliers, creditors, bankers, local community, etc. The Two Major Tools: a. The Medium There must be a medium which connects the sender and the receiver thro’ which the message passes or flows. Basically there are two types of media: i. Impersonal: This kind of medium is of mass nature where the mass is reached simultaneously, like print media (newspapers, magazines, billboards, hoardings), broadcast (TV, Radio), electronic, internet etc. The Internet is a very powerful mode of interactive communication that permits the audience of communication to provide direct feedback. ii. Interpersonal: This is a kind of formal conversation between a salesperson and customer or an informal conversation between two or more persons that takes place face-to-face, over telephone, by mail, or online. b. The Message The subject matter that needs to be conveyed is the message. It can be verbal or non verbal. i. Verbal: It is thro’ words, speech, spoken or written, and contain more specific info regarding the products or services. A verbal message combined with a nonverbal message often provides more information to the receiver than any one of them. ii. Nonverbal: It is a symbolic communication thro’ pictures, photos, illustrations, or a symbol which takes place in both impersonal and interpersonal medium. Marketers often try to develop logos or symbols that are associated exclusively with their products and that achieve high recognition.
Gerald Werre: email@example.com Marketing Communications KIM/MUA
The Four major Functions: a. Encoding: This is a method by which the sender puts his message (“encodes”) in the form of any of the marketing communications mix. He has to make sure that the encoding must not only be understood by the receiver, but also will have the desired effect on the receiver. b. Decoding: This is a method by which the receiver unravels and interprets the message (“decodes”) after assigning all the relevant meanings of the verbal, the visual and the symbols. The process is affected by environmental factors, and can be difficult for the receiver. Also, the decoding or deriving meaning varies with the persons, time, place and society. c. The Response: The array of the possible reactions exhibited by the receivers after they decode, receive and understand the message. The target audience may not always respond by buying the products or services. So the marketers have to monitor their behaviour and feedback if any. d. The Feedback: The sender must know whether the message has been received by the receiver, so as to take corrective steps like to reinforce, to change, and to modify the message to ensure it is understood in the intended way. In the interpersonal communication it is easier to get the feedback quickly, thro’ the gestures, body language, facial expression etc. But in the impersonal communication, it is difficult to get the feedback quickly. Since this is very expensive, it must be tested before the communication starts or periodic studies (by an appropriate MR method) must be conducted to know the feedback or other methods must be devised to know the feedback as promptly as possible. The One Major Distortion – Noise These are random and competing messages that may interfere with the intended communication. These can be also any unplanned physical and psychological disturbances which can distort the messages, and it can happen at any stage of the marketing communications process. Different Communication Equations One individual to another individual One individual to many individuals One organization to one individual One organization to many individuals One organization to another organization One organization to many organizations Types of Communication Internal External
Gerald Werre: firstname.lastname@example.org Marketing Communications KIM/MUA
If the receiver’s initial attitude towards the object is positive. The greater the influence of the communication source over the recipient. 2. Communication is more likely to be effective if the source is believed to have expertise. objectivity. Because persuasion requires the receiver’s rehearsal of his own thoughts. or likeability. high status. 3. clarity. As a result receivers often add things to the message that are not there (amplification) and don’t notice other things that are there (leveling). the greater the recipient’s change or effect in favor of the source.4 Oral communication Written communication Audio-visual communication Passive communication Factors Affecting The Communication Process Fiske and Hartley have outlined some general factors that influence the effectiveness of a communication: 1.com Marketing Communications KIM/MUA . Barriers of Communication: The target audience may not receive the intended message for any of these reasons: 1. or reference group will mediate the communication and influence whether or not the communication is accepted. such as “How to make a Million” have a high likelihood of getting attention. 3. The communicators’ task is to strive for simplicity. 4. but particularly if the source has power and can be identified with. If the initial attitude is negative and he raises counter arguments. The social context. the message is likely to be accepted and have high recall. the message is likely to be rejected only to stay in long-term memory. interest. Communication effects are greatest where the message is in line with the receivers’ present opinions. Selective Distortion Receivers will hear what fits into their belief systems. Gerald Werre: geraldwerre@gmail. group. Selective Attention People are bombarded by hundreds of commercial messages a day of which 80% are consciously noticed and about 12% provoke some reaction. beliefs and dispositions. 2. Selective Retention People will retain in long term memory only a small fraction of the message that reach them. and repetition to get the main points across. much of what is called persuasion is actually self-persuasion. Selective attention explains why ads with bold headlines promising something.
processes and physical evidence in service marketing (known as the seven P’s). is concerned with the promotion of an organization’s brand.com Marketing Communications KIM/MUA . It is focused on the product/service as opposed to corporate communications where the focus of communications work is the company/enterprise itself. Marketing communications also has a mix. messages. as a vehicle of an organization’s brand management. Marketing communications is primarily concerned with demand generation and product/service positioning while corporate communications deal with issue management. designs. Marketing has a marketing mix that is made of price. It is recognized that there is some cross over between individual elements (e. shapes. promotion. Elements of the mix are blended in different quantities in a campaign. product(s) and/or service(s) to stakeholders and prospective customers. Gerald Werre: geraldwerre@gmail. which would include people. product (known as the four P’s). Marketing communications. mergers and acquisitions. forms and colours. place.5 Marketing communications What is Marketing Communications? • • It is the process by which a marketer develops and presents stimuli to a defined target audience with the purpose of eliciting a desired set of responses It is a systematic relationship between a business and its market in which the marketer assembles a wide variety of ideas.g. both to communicate ideas to. etc. media. and to stimulate a particular perception of products and services by individual people who have been aggregated into a target market. advertising a firm’s sales promotion activities) Here are the key elements of the marketing communications mix.
price. Communication is the unique tool that marketers use to persuade the consumers to act as in a desired way. Communications take many forms. Marketing communication acquires new customers for brands by building awareness and encouraging trial. and it can encourage purchases that help consumers solve problems or avoid negative outcomes. and convey special meaning that the marketers want to impart to the consumers. Marketing communication goes beyond these specific promotion tools. Gerald Werre: geraldwerre@gmail. It also maintains a brand’s current customer base by reinforcing their purchase behaviour by providing additional information about the brand’s benefits. and reminding. 2. like verbal. visual or symbolic. The following are the several attributes of the Marketing Communications 1. and the stores that sell it—all communicate something to buyers. prospects. 3.com Marketing Communications KIM/MUA . The product’s design. Thus. A secondary goal of marketing communication is building and reinforcing relationships with customers.6 The marketing communications mix The primary goal of marketing communications is to reach a defined audience to affect its behaviour by informing. persuading. Communications can evoke emotions that put consumers in more receptive frames of mind. and other stakeholders. the entire marketing mix—promotion and product. its price. the shape and colour of its package. retailers. although the promotion mix is the company’s primary communication activity. and place—must be coordinated for greatest communication impact.
and other non-personal tools to communicate directly with specific consumers to solicit a direct response. “How can our customers reach us?” 6. or e.7 4. building up a good “corporate image. telephone.com Marketing Communications KIM/MUA . selling. emphasizes personal selling to push the product through these channels. In short. Personal selling: Personal presentation by the firm’s sales force to make sales and build customer relationships. Show how it can solve the consumer’s problem better than the competitor’s products or services. Communications is the bridge between marketers and consumers. The new view of communication is an interactive dialogue between the company and its customers that takes place during the pre-selling. d. These options include advertising. Public relations: Building good relations with the company’s publics by obtaining favourable publicity. public relations. Companies must ask not only “How can we reach our customers?” but also. 5. A push strategy. and sales promotion “pulls” the product through the channels of distribution.consuming stages. Create a positive attitude towards the product. b. the marketing communications of any company are designed to make the consumer a. and personal selling. sales promotion. stories.” and handling or heading off unfavourable rumours. public relations. The demand generated by advertising. e-mail. Direct marketing: Direct communications with carefully targeted individual consumers to obtain an immediate response—the use of mail. Generally. and between consumers and their socio-cultural environment. A pull strategy relies more on consumer demand for the product to travel from the manufacturer to the end user. goods. consuming and post. Give the product a symbolic meaning. or services by an identified sponsor. Induce purchase or commitment to purchase. c. direct marketing. and events. Successful marketing communication relies on a combination of options called the promotional mix. fax. Aware of the product. Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service. The role each element takes in a marketing communication program relies in part on whether a company employs a push strategy or a pull strategy. The five major types of promotion are: Advertising: Any paid form of non-personal presentation and promotion of ideas. on the other hand. Gerald Werre: geraldwerre@gmail.
According to the American Marketing Association. It is a process for managing customer relationships that drive brand value primarily through communication efforts. Integrated Marketing Communications Definitions Integrated Marketing (IM) is a management strategy and multi-discipline focused on organization-wide optimization of unique value for stakeholders. Integrated marketing is the planning and execution of all the company’s marketing activities. trade shows. avenues.” It is also defined as a concept of marketing planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity. data driven method of communicating with the customers. This Gerald Werre: geraldwerre@gmail. premiums. online and offline. and the Internet. and direct marketing work together as a unified force. Sales promotion includes point-of-purchase displays. broadcast. coupons. This management concept is designed to make all aspects of marketing communication such as advertising. in a way that is consistent across all customer contacts and creates more value than when those activities are performed separately. and other forms. consistency and maximum communications impact. Generally marketing starts from the “Marketing Mix”. or organization are relevant to that person and consistent over time. And the coordination of all the promotional tools along with other components of the marketing mix to gain an edge over competitors is called Integrated Marketing Communications.com Marketing Communications KIM/MUA . service. Personal selling includes sales presentations. functions and resources within a company into a seamless program that maximizes the impact on consumers and other end users and which results into maximum profit at a minimal cost. sales promotion. Advertising includes print. fax transmissions.8 Each type of promotion has its own tools. integrated marketing communications is “a planning process designed to assure that all brand contacts received by a customer or prospect for a product. public relations. Integrated Marketing Communications (IMC) is defined as a customer centric. telemarketing. Promotion is one element of the Marketing Mix. discounts. Such efforts often include cross-functional processes that create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging purposeful dialogue with them. and incentive programs. outdoor. IMC is the coordination and integration of all marketing communication tools. and demonstrations. rather than permitting each to work in isolation. Direct marketing includes catalogues.
but CONSUMER You have to understand what the consumers’ wants and needs are. 4 C’s in Marketing Communications Not PRODUCT. the cost of dissonance of what you buy. Times have changed and you can no longer sell whatever you can make. but COST Understand the consumer’s cost to satisfy the want or need. Other costs include the time to drive somewhere. but CONVENIENCE Think convenience of the buying experience and then relate that to a delivery mechanism. customer-focused. marketing channel.g. The product characteristics have to match the specifics of what someone wants to buy. transaction service time. Convenience may include aspects of the physical or virtual location. Consider all possible definitions of “convenience” as it relates to satisfying the consumer’s wants and needs. and internally directed communications. Not PLACE. 4 P’s vs. and hours of availability e. 24/7.9 integration affects all firm’s business-to-business. The product’s price may be only one part of the consumer’s cost structure. It ensures that all forms of communications and messages are carefully linked together. etc. Integrated Marketing Communications is a simple concept. access ease.” Not PRICE. And part of what the consumer is buying is the personal “buying experience. Not PROMOTION. but COMMUNICATION Communicate with many mediums working together to present a unified message with a feedback mechanism to make the communication two-way.com Marketing Communications KIM/MUA . the opportunity cost of guilt for not doing one’s other errands. the investment a consumer is willing to make to avoid risk. The tools that marketers commonly use to achieve their communication objectives are: Gerald Werre: geraldwerre@gmail. The Tools For Integrated Marketing Communication Each communication tools has its own unique characteristics & costs.
com Marketing Communications KIM/MUA . and direct marketing—has unique characteristics and costs.) Advertising has four characteristics: It is persuasive in nature. It is non-personal. newspaper. Institutional advertising: The type that promotes organizational images and ideas. It is paid for by an identified sponsor. ADVERTISING It is any paid form of non-personal persuasive communication about a firm and its products that is transmitted through the mass media (television. radio.10 The Nature of Each Promotion Tool Each promotion tool—advertising. Gerald Werre: geraldwerre@gmail. Types of advertising: Product advertising: Is the type that promotes goods and services. sales promotion. It is usually done in the early stages of the product life cycle to inform potential customers about the new product. and It is disseminated through mass channels of communication. magazines. Pioneer advertising: Tries to develop the primary demand for a product category rather than a specific product. public relations. Marketers must understand these characteristics in selecting their tools. the internet etc. outdoor displays. personal selling.
Brand equity is an intangible asset that results from a favourable image. and a well thought out advertising campaign can achieve that. It can be used to build a long-term image for a product (such as Coca-Cola ads). Reminder & reinforcement advertising: It targets at letting consumers to know that an established brand still exists. brand.com Marketing Communications KIM/MUA . Brand equity is established and maintained through advertising that focuses on image. Sales staffs find their job easier with a good advertising campaign behind them. Another function of advertising is to communicate information about the product. Through the use of symbols and images advertising can help differentiate products and services that are otherwise similar. and/or higher margins. product attributes. or ideas. to identify a product and differentiate it from others. Advertising also helps in increasing awareness and changing attitudes and opinions of buyers. service. impressions of differentiation. Gerald Werre: geraldwerre@gmail. To encourage salesmen and provide that feeling of support especially when they are dealing with hard to get customers. Functions of advertising An important function of advertising is the identification function. or consumer attachment to the company. this is the information function. that is. this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products. This equity translates into greater sales volume. Its purpose is to assure current users of the product’s benefits. thus greater competitive advantage. People tend to purchase products they are familiar with. or trademark. People are most likely to welcome a new item or service if they have already seen it in an advertisement. its attributes. Advertising messages may promote the adoption of goods. Buyers tend have a better view of a well advertised product or service as compared to those that don’t have any advertisements or are poorly advertised. and its location of sale. Many companies commence the advertising of a product before it has hit the shelves. or other features of the company and its products or services.11 Competitive advertising: Aims at offsetting the effects of competitor’s promotion campaigns. Advertising also helps create and maintain brand equity. Because the sales message is disseminated through the mass media—as opposed to personal selling— it is viewed as a much cheaper way of reaching consumers. Advertisement makes it easy for a company to introduce a new product or service. services. persons.
Test customer awareness .Number of enquiries from advert .Number of enquiries . The table below sets out some possible objectives/tasks and how the effectiveness of the advert might be measured: Advertising objective Stimulate an increase in sales How success can be measured .com .Number of requests for further information -Sales -Test customer awareness of brand recognition and Marketing Communications KIM/MUA Remind customers of the existence of a product Inform customers Build a brand image Gerald Werre: geraldwerre@gmail.Number of enquiries converted into sales .12 Types of advertising media Published media include: National daily newspapers Sunday newspapers Local and regional newspapers Consumer magazines Specialist magazines Trade and professional press Internet Visual and audio media include: Television (terrestrial and digital) Radio Cinema Billboards Transport/vehicles Judging the effectiveness of advertising How can the effectiveness of an advert be judged? The answer depends on what objectives were set for the advert.Test customer awareness both before and after the advertising campaign .
such as newspaper and radio advertising. Although some advertising forms. advertising is and cannot be as persuasive as company salespeople. and the audience does not feel that it must pay attention or respond. to roadside billboards. and colour. Advertising is also very expressive. more importantly. from network television.Levels of repeat purchase . to daily newspapers. reaches huge audiences. large-scale advertising says something positive about the seller’s size. It lets the seller repeat a message many times. Disadvantages Advertising can be very costly. Television advertising. Its impersonal nature means it lacks the ability to tailor the sales message to the message recipient and.Measure type of goods ordered by new purchasers .Measure demographic profile of purchases Change customer attitudes . such as network TV advertising. Advertising can carry on only a one-way communication with the audience. Although it reaches many people quickly. other forms. actually get the sale.Levels of customer retention . and success. sound. Clutter encourages consumers to ignore many advertising messages. Credibility and clutter are other disadvantages.13 perceived values Build customer loyalty and relationship . Consumers have become increasingly skeptical about advertising messages and tend to resent advertisers’ attempt to persuade. Gerald Werre: email@example.com Marketing Communications KIM/MUA . can be done on small budgets. Because of advertising’s public nature.Compare with previous data Advantages Advertising can reach masses of geographically dispersed buyers at a low cost per exposure and enables the seller to repeat a message many times. for example. popularity. Beyond its reach. Advertising is everywhere. consumers tend to view advertised products as more legitimate. It allows the company to dramatize its products through the artful use of visuals. print. require very large budgets.
even if the response is a polite “no thank you. Personal selling also allows all kinds of relationships to develop. particularly in building up buyers’ preferences. Advantages While face to face with prospects. the buyer usually feels a greater need to listen and respond. Differences Between Personal Selling and Advertising Gerald Werre: geraldwerre@gmail. who have a need.[ ADVOCATING YOUR PRODUCT]. He/she may provide information about products. [ PROSPECTING] -one determines the needs of the people. immediate reaction can be noted.[ NEEDS ] -one determines a way of finding a solution to the prospect’s problem. and actions. -one determines / sells benefits of the product to the prospect. and the approach can be changed to accommodate each prospect.com Marketing Communications KIM/MUA . Finally. -one identifies the people. [ SELLING BENEFITS] and then creating a transaction for exchanging the product for a value. ranging from a matter-of-fact selling relationship to a deep personal friendship. The sales person is often the only link between the company and customers. convictions. with personal selling.” Disadvantages Personal selling is also the company’s most expensive promotion tool. Personal selling is the most effective tool at certain stages of the buying process. Messages can be tailored to particular situations. negotiate prices and identify technical problems when a product does not work well. [CLOSING THE SALE ] and thus creating a satisfaction to the buyer’s needs/wants [ CREATING CUSTOMER SATISFACTION].[ PROPOSE] -one determines the way of communicating your product as a solution. explain and interpret the company’s policies. Personal selling is the most effective way to make a sale because of the interpersonal communication between the salesperson and the prospect. sales people can get more attention than an advertisement. The effective salesperson keeps the customer’s interests at heart to build a long-term relationship.14 PERSONAL SELLING It is the process of using personal communication in an exchange situation to inform customers and persuade them to purchase products. costing industrial companies an average of over Shs 5000 per sales call. [RECOMMENDING] -one determines the value for the product for the prospect. It is a process by which.
advertisement offers a wide choice of channels. “buy two get three”. Sales promotion is a marketing communication function that offers a tangible added value designed to motivate and accelerate a response. one soap case free with two soaps. etc. the targeted persons' reactions cannot be known immediately. such as building brand image.com Marketing Communications KIM/MUA . space and nature of media. and consists of a diverse collection of incentive tools. It is often a short-term incentive to encourage purchase of the product.. salesmen can easily persuade them to buy them. free talk time with a handset. It’s a key ingredient in marketing campaigns. advertisement may also aim at enhancing the goodwill of the advertiser who may not be selling the goods and services immediately.15 Personal selling involves direct interaction of salesmen with individuals. advertisement may be used for various other purposes also. Gerald Werre: geraldwerre@gmail.. In personal selling there is a two-way communication. The effectiveness of personal selling depends upon the quality of salesman such as ability to convince. advertisement is a one-time expenditure and varies with time. Personal selling always aims at effecting sales of existing products. In advertisement there is one-way communication. If potential buyers are aware of the products because of advertisement. Personal selling is used only for promotion and sale of products. free samples of other products. Advertisement creates desire to buy the products. In personal selling. the salesmen are paid salary or commission or both.e. 20% more goods. visual. designed to stimulate quicker and / or greater purchases of particular products or services. mostly short term. Advertising is non-personal and is addressed to the customers in general. SALES PROMOTIONS Definition: It is an activity or material that acts as a direct inducement and offers added value to buy a product. salesmanship converts the potential demand created by advertisement into actual sale. knowledge of the product etc. personal talk of the salesman with the potential buyers. The salesman explains his viewpoint to the potential buyer and knows about his/her reaction. audio such as radio and audiovisual such as television. Personal selling is confined to a particular area. whereas the effectiveness of advertisement depends upon the design of advertisement and the media used for the purpose. In Personal selling there is only one channel of transmission of messages i. Examples may be 20% price off. while advertisement is generally found to cover a larger number of people.
The traders thus “PUSH” the products down the distribution channel towards the consumers. stay abreast of what competing brands are doing and act frequently to counter these efforts. And sales promotions invite and reward quick response. Increasing trial and repurchase: Packaged goods brands use sales promotions to encourage trial as well as repurchase. a good SP strategy does more than simply offer current customers a discount.” Sales promotion effects are usually short lived. Trade promotions are targeted and designed for members of the distribution channel. SPs such as special prices and product samples can motivate prospective customers to try something for the first time. for example. Airlines. Gerald Werre: geraldwerre@gmail. and Trade Sales Promotions. “Buy it now. however. such as distributors. Consumer promotions are targeted and designed for the end users directly. The consumers thus “PULL” the products thro’ the distribution line towards themselves. Objectives of consumer sales promotions Consumer sales promotion activities are designed to achieve the following targets. which is the use of incentives to motivate end users to purchase a brand and thus put pressure on the retailer to stock that brand. Where advertising says. Types of Sales Promotions There are two basic types: Consumer. retailers. “Buy our product. and are not effective in building long-term brand preference. It’s designed to increase purchase frequency or purchase quantity at each transaction. Here. They offer strong incentives to purchase by providing inducements or contributions that give additional value to consumers. countering competitive offers.16 Sales promotions attract consumer attention and provide information that may lead to a purchase. Increasing customer retention: Companies that know who their current customers are can plan programmes to reward and retain customers. wholesalers. the marketers use a PULL strategy. particularly the most profitable ones. Here. Countering competitive offers: The third objective of consumer SP. and the manufacturers of soft drinks and breakfast sellers. which is the use of incentives to motivate the buying and reselling of products.com Marketing Communications KIM/MUA . is used frequently in highly competitive product categories. the marketers use a PUSH strategy. Increasing frequency and quantity: Because the majority of the people who take advantage of coupons and price reductions are current customers.” sales promotion says.
etc. calendars. free extra. informative and well-positioned point-of-sale displays are. Gerald Werre: geraldwerre@gmail. It can take the form of coupons. Specialties/gifts: These are items given free to the customers and other stakeholders. very important part of the sales promotional activity in retail outlets. which are available instantly. but boost the sales in the short term. etc. etc. at around 10 % of it e. sampling and testing. Attractive. free goods. These coupons don’t enhance the brand image.com Marketing Communications KIM/MUA . magazines. but also reinforces that image. therefore. key rings. “Free” is the most powerful word that the company can use for these premiums. to keep a brand’s name at the top of the mind. coffee mugs. wrist watches. But to get this “Free” a purchase is necessary. The retailers advertise price reductions each week / month for particular brands for which they also get trade promotional allowances. Point-of-purchase displays: Research into customer buying behaviour in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store. To introduce new products To attract new customers To increase sales during periods of low demand Types of consumer sales promotion techniques Premiums/gifts: A premium is an item offered free or at a bargain price to reward some type of behaviour like. The most effective ones are those. It is known as a “premium promotion” in that the customer gets something in addition to the main purchase. Price Reductions: This is a kind of short-term price reduction. Cell Phones.17 Reinforcing/improving the brand image and strengthening brand relationship: Although SPs by design add something extra to a brand offering. Coupons: Coupons are certificates with a stated price reduction on a specified items and generally valid for a specified period of time.g. buying. a free Omo bucket for purchasing 1 kg of Omo detergent. Generally no purchases are necessary for these and the items are of low cost like. But for organisational buyers (B2B) it can be expensive gifts to the concerned officers like. Others Include. generally at a full price. CD players. encourage first purchase/trials and brand switching. thro’ newspapers. where the prices are less than the regular ones. Suitcases. what is added should not only be compatible with the brand’s image. etc. The cost of the premiums is generally low compared to the main product. These are distributed by the retail stores. brochures.
A customer receives a money refund after submitting a proof of purchase to the manufacturer. Loss leader Pricing: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Rebates/money refunds: Consumers are offered money back if the receipt and barcode are mailed to the producer. Sweepstakes. toothbrush with toothpaste. Demonstrations: are occasions at which a manufacturer shows how a product works in order to encourage trial use and purchase of the product. A similar case to this is “combination or combo offer” where closely related items are offered free like blades with safety razor. (Perfume sellers heavily depend on it). contests and games: A contest is a brand-sponsored competition that requires some form of skill and effort (like quizzes which are not based on chance. Nakumatt smart points.18 Sampling: Sampling is offering free samples of products to prospective customers (or of new products to existing customers) and the opportunity to try a product before making a buying decision. A sweepstakes is a form of sales promotion that offers prizes based on a chance drawing of entrants’ names. such as ‘happy hour’. Cents-off deals: Offers a brand at a lower price.g. Loyalty Reward Programs: Discount or free merchandise to regular customers. but it is also one of the most effective and most credible one. 25 percent extra). Bonga points. Point-of-sale displays Glorifier: A small stage/stand that elevates a product above other products. but knowledge and skill). etc. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example. This is one of the most expensive tools of SP. They are normally employed by supermarkets and are mechanisms in which regular customers who remain loyal to a particular outlet are rewarded with discounts or free merchandise e. because it actually involves the actual use and performance of the product. conditioner with shampoo. or ‘buy one get one free’. Price deals: A temporary reduction in the price. Price reduction may be a percentage marked on the package.com Marketing Communications KIM/MUA . It can be distributed on purchase of related products or to all the buyers who visit a retail store. Trade sales promotion objectives The primary objectives of trade promotion are: Gerald Werre: geraldwerre@gmail.
making it more difficult for the new brand to get and keep distribution.the more the volume. Volume/quantity discounts: This discount is based on the volume as the name suggests.19 Increase distribution: The first objective is to move more products.. say. the more the discount. Balance demand and control inventory levels: Knowing how important it is to have products available when customers want them. most marketers try hard to make sure products are always available with the retailers. week. and hence the more profit to the retailer. Trade/merchandise allowances: these are short-term incentives offered to induce a retailer to stock up on a product. This helps in reducing the risk for distributors and retailers. Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function. i. retailers agree to give the brand off-shelf display which automatically attract more customer attention and increase sales. In exchange for this allowance.com Marketing Communications KIM/MUA . To counter the introduction of a new competing brand. Performance allowances: These are the price reductions given to the retailers in exchange for the retailer’s agreement to feature the company’s brand(s) in its own advertising or promotional offers. To gain more and better shelf-space. they use promotional strategies to balance demand and control inventory levels. Gerald Werre: geraldwerre@gmail. Trade sales promotion tools The essence of most trade promotions is a reduction in price that come in many forms.e. similarly staff up for traditionally busy times of the day. Point-of-purchase displays: Extra sales tools given to retailers to boost sales. a company can use a “loading” promotion in which retailers are given incentives to by in larger quantities than usual (to load up on a product). What the members of the distribution channel fear most is buying products or quantities they can’t resell. This reduces space and demand for the new brand. Thus they have to be motivated to stock some products. Respond to competitive programmes: Trade Promotion can also help a brand respond to competitive offerings. to increase the volume of the distribution. Service companies. month or year. Display allowances: A type of performance allowance which is a price reduction for locating an additional quantity of a brand in a high traffic area like the end of an aisle. thro’ the channel. When companies find they have too many goods at hand or service personnel who are not engaged.
To further persuade the retailers to take on products. Overuse of promotional offers: The overuse of promotional offers will negatively reposition the brand. figures that are needed to learn the basics of the products and use them correctly. the salesmen help customers by explaining in detail all the features. marketers sometimes offer a buy-back allowance. so that they can get the most advantages using that product. companies offer dealer contests. some marketers guarantee protection from risk by offering to buy-back any of their own brands not sold within a specified period. Some times retailers refer to in-store promotion activities as merchandising. Sales training: In many high-tech or specialty stores. that perishable products are not beyond the “sale by dates” dates. Gerald Werre: geraldwerre@gmail. brochures. at its own cost. the company provides an extensive training programme to the salesmen of the dealer/retailer. Sales promotion deals can be very costly but may not have much return. which the dealer can keep. and that the retailers are providing the in-store support that they have been paid to provide. a bottle cooler or a fridge with the purchase of soft drinks.com Marketing Communications KIM/MUA . when they achieve certain sales targets/volumes. Non-serious customers: SPs sometimes attract customers who are searching for the best deal. Contests: To motivate retail dealers and their sales people to reach specific sales goals or to stock a certain product. competitions awarding dealers special prizes and gifts. Limitations of sales promotions The Cost-effectiveness: The critical decision whether to use SP should be based on their costeffectiveness.20 Buy back allowances: When introducing a new product. Copycatting: As soon as one brand in a category has a successful SP programme. Dealer loaders: This is a high value premium given to a retailer in exchange for stocking a product e. and to impart that knowledge to the consumers. for them to learn about the products in details.g. the correct/efficient method of use. competitors soon follow suit. For these. A brand that is always on “sale” or always offering premiums will soon be known as the “deal brand”. charts. This copycatting usually negates the added value advantage and transforms the cost of the programme into just another cost of doing business. and not for a long-term brand relationship. and facts. Some marketers use field merchandisers to go into stores and make sure that the marketers’ brand is being properly displayed. These are customers who always try to buy what is on sale and are not loyal to any brand. Point-of-Purchase (POP) displays: These are in-store advertising displays featuring a product. which is a payment to buy back the current stock of a brand and replace it with a features new product. These companies also supply the Business Support Materials free to the dealers / retailers which may consist of education and training materials.
not only to protect the profitability of the brand but also to protect the retail price.e.” (Institute of Public Relations. then it may put off the existing ones. They include Employees Shareholders Trade unions Members of the “general public Current and potential customers Other industry players Public relations tools They can be broadly classified as.com Marketing Communications KIM/MUA . Attracting new customers at the cost of existing ones: Targeting promotional offer is a sound strategy. USA). To disseminate information about the firm to the public. to enhance the position and standing of the firm in the eyes of the public. Most companies limit discounts. planned and sustained effort to establish and maintain mutual understanding between on organization and its publics. brand or business by placing information about it in the media without paying for the time or media space directly. Oral communication Printed and graphic communication Print media Gerald Werre: geraldwerre@gmail. To undertake corrective measures to overcome bad publicity. For example if the price-off is offered to only new customers. PUBLIC RELATIONS Definitions. It is the communication of a product. but it needs to be done in a way that doesn’t anger / hurt some customer.21 an image that most brands don’t want to have. Objectives To create and maintain the corporate and brand image of the firm i. What is meant by the term “publics” in the above definitions? A business may have many “publics” with which it needs to maintain good relations and build goodwill. “Public Relations is the deliberate. Public relations are a planned and sustained effort to establish and maintain goodwill and mutual understanding between a firm and its target publics.
meetings called by the firm to announce major news events or to respond to a crisis. soaps. Lobbying can be part of the government affairs programme. Special Events: Stimulating an interest in a person. eatables. primarily through financial contributions. Lobbying. Exhibitions. posters) Broadcast media (radio. A good employee relations program keeps employees informed and provides them with channels of communication to upper levels of management. clothes. Issues management: Identifying and addressing issues of public concern that affect the organization.com Marketing Communications KIM/MUA . or organization by means of a focused “happening” e. i. television. They are activities designed to interact with publics and listen to them and can be used to draw attention to the firm’s products. endorsements. anniversary.g. films) Other media (websites. toothpaste. Public Affairs: Developing effective involvement in public policy and helping an organization adapt to public expectations. Employee Relations. hoardings. Gerald Werre: geraldwerre@gmail. Governmental Affairs: Relating directly with legislature and regulatory agencies on behalf of the organization. product.g. At exhibitions. building goodwill by contributing money. Corporate social responsibility activities..22 Outdoor media (electronic displays. It involves participation of people on a large scale and products can be exhibited and demonstrated in a relaxed atmosphere Community Relations: Planned activity with a community to maintain an environment that benefits both the organization and the community. by creating awareness/ interest in them through celebrities or popular people. items displayed leave a lasting impression on the minds of the people. beverages etc. Development/Fund-Raising: Demonstrating the need for and encouraging the public to support an organization. to promote a regulation favourable to the firm’s business.e. It is imperative to maintain employee goodwill as well as to uphold the company’s image and reputation amongst its employees. time and other resources to good causes Celebrity endorsement is a PR tool which persuades audiences to buy products such as soft drinks. Influencing people in government and other pressure groups in order to secure their support to achieve a desired action e. The term is also used by government agencies to describe their public relations activities and by many corporations as an umbrella term to describe multiple public relations activities. exhibitions) Public relations tools include: Press conferences.
It is communication in news story form about a firm and its products that is transmitted through the mass media at no charge.23 Financial Relations. retiring employees. It is distributed to a particular audience seeking information e. folders or pamphlets. e. All these publications are called brochures. The text of the press release is written in the form of a story with an attractive heading so that the media quickly grasps and circulates the message Gerald Werre: geraldwerre@gmail.. or service that appears in broadcast or print media. or paid for by. special achievements by students or teachers. Public relations is designed to provide positive information about the firm and is usually controlled by the firm or its agent. Brochures. Both positive and negative publicity often originates from sources outside of the firm. product. fee structure. Such newsletters target not only the teachers and students but also the college alumni. they are called leaflets. Annual reports and stockholder meetings are important tools for maintaining good investor relations. Publicity is a short-term strategy. It is mailed. Press release. on the other hand.g. is not always positive and is not always under the control of. while public relations is a concerted program extending over a period of time. Publicity is really a part of the public relations effort. Publicity Publicity refers to the generation of news about a person. Publicity tools Video News Release (VNR). new entrants etc. a newsletter published by a college consists of information about activities conducted during a particular period. hostel facilities and so on for students who are seeking admission. But there are several major differences. the organization. Depending on their size and purpose for which they are developed. a brochure produced by a college provides information about courses offered. A brochure is a ‘ folded sheet of information which can be read like a book and provides information which is relevant over a longer period of time’. Newsletter: It is a printed publication produced at regular intervals.com Marketing Communications KIM/MUA . faxed or e-mailed to the media. In most organizations. A press release is a form of written communication used to announce something to the media. Publicity. Kenya Airways documentary on TV. publicity is controlled and disseminated by the public relations department.g.g. It is a publicity piece produced by a firm’s media agent so that media stations can air it as a news story e. financial analysts and potential investors. Financial relations’ involves communicating with a company’s stockholders.
activity or organisation by providing money or other resources that is of value to the sponsored event. Publicity information may be perceived as endorsed by the medium in which it appears. This is usually in return for advertising space at the event or as part of the publicity for the event. Arts sponsorship. expansions etc. KIM’s award for COYA (company of the year) reflects the institute’s perception of the quality of products of the firm selected. credible.24 through newspapers/radio/television/internet. Sports sponsorship. the information sometimes gets lost in translation—that is. omissions. or other errors may result. It involves using various media channels to highlight on specific information or events of the firm e. inaccurate information. So consumers perceive this information as more objective and place more confidence in it. this can take several forms from the sponsoring of individual students at college to the provision of books and computers to schools. it is not always reported the way the provider wishes it to be. Web pages are designed with catchy illustrations to make them attractive and thereby grab the attention of the public. Educational sponsorship. the information may be released earlier than desired or too late to make an impact. Gerald Werre: firstname.lastname@example.org Marketing Communications KIM/MUA . major sporting events have the advantage of being attended and watched by large numbers of people. Disadvantages Timing of the publicity is not always completely under the control of the marketer. There are several kinds of sponsorship: Television and radio programme sponsorship. For example. Sponsorship. sponsorship of arts events like drama festivals. product launches. publicity is not usually perceived as being sponsored by the company (in the negative instances.g. Unlike advertising and sales promotions. it never is). This means supporting an event. The information in a website is presented in an easy and understandable format. word-of-mouth information regarding the firm and its products. The Internet web is the most commonly used form of media for public relations. Websites. They also attract significant media coverage. Accuracy: A major way to get publicity is the press release. the increasing fragmentation of television in Kenya through new channels is providing many more opportunities for sponsorship of this kind. Publicity thus results in a significant amount of free. Thus. Advantages Publicity is highly credible. Unfortunately. As a result. A publicity story has news value to its audience and people like to pass on information that has news value.
and events seem more real and believable to readers than ads do. videos etc. It is very believable: news stories. features.com Marketing Communications KIM/MUA .25 Public relations tools can also be classified as: Consumer communication Customer press releases Trade press releases Promotional videos Consumer exhibitions Competitions and prizes Product launch events Websites Business communication Corporate identity design Direct mailings Trade exhibitions Internal / employee communication In-house newsletters and magazines Intranet Notice boards Employee conferences Email External corporate communication Company literature (brochures. Difference between PR and Advertising Gerald Werre: geraldwerre@gmail. Public relations also can reach many prospects who avoid salespeople and advertisements—the message gets to the buyers as “news” rather than as a sales.directed communication. national and international media relations Financial communication Financial media relations Annual report and accounts Shareholder meetings (including the annual general meetings) Public relations offers several beneﬁts.) Community involvement programmes Local.
Gerald Werre: geraldwerre@gmail. A major concern is spam mail. Advertising’s goal is generating sales whereas the main goal of public relations is generating goodwill. PR communicates with the people or public of an organization while advertising communicates with the target markets of an organization. DIRECT MARKETING Direct marketing is concerned with establishing an individual relationship between the business offering a product and the final customer. These include: Direct-response adverts on television and radio Magazine inserts Direct mail Telemarketing Direct mail. PR promotes the entire organization while advertising traditionally promotes a particular product or services. This process may be outsourced to specialist call centres. in this case marketers contact consumers by phone. The success of a PR campaign can be measured through the evidence of public support favorable public opinion whereas the success of an advertising campaign can be measured through the size of sales or revenue generated.com Marketing Communications KIM/MUA . which actually predates legitimate email marketing. services. While a company pays to have their advertisements put in newspapers or other media. As a result of the proliferation of mass spamming. Direct marketing has been defined by the Institute of Direct Marketing as: The planned recording. Email Marketing.26 Public Relations involves the activities and methods employed to establish and promote an organization’s products. ISPs and email service providers have developed increasingly effective E-Mail Filtering programs. customers are contacted thro’ Email. public relations involves getting free exposure for the company whether through press releases. The most common form of direct marketing is direct mail used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. Telemarketing. analysis and tracking of customer behaviour to develop relational marketing strategies The process of direct marketing covers a wide range of promotional activities. or overall image to its all its shareholders. conferences or other tools.
In addition to advertising on the Web. current and potential customers. the new media allow users to perform a variety of functions such as receive information and images. Interactive media over the Internet allow for a back-and-forth flow of information between users and the company. All forms of communication between a customer and the business need to be recorded so that a detailed. face-book. and business voicemail systems. The Internet. is the sale of products by face-to-face contact with the customer by having salespeople approach potential customers in person. etc). and make purchases thro’ the World Wide Web. telemarketing. which are one-way in nature. marketers offer sales promotion incentives such as coupons. by providing current and potential customers with information. Integrated Campaigns. similar to direct mail marketing. as well as to interact with consumers. The Direct marketing database Direct mailing is based on the “mailing list” – a critical part in the direct marketing process. particularly the Internet. contests. directories. Voicemail Marketing. It represents a cost effective means by which to reach people with the warmth of a human voice. make inquiries. envelopes or having to buy address lists and the names of home occupants. as well as online channels such as email and social networking (twitter. The Internet is a medium can be used to execute all the elements of the promotional mix. radio and broadcast TV. Many companies. and costs a fraction of the amount of direct mail due to not having to purchase stamps. This has emerged as a result of availability of personal voice mailboxes. up-to-date profile can be maintained.com Marketing Communications KIM/MUA . Direct selling. have developed websites to promote their products and services. The starting point is the existing information the business keeps on its customers. Unlike traditional forms of marketing communications such as advertising. respond to questions. Direct response television marketing. Internet Marketing Revolutionary changes in marketing are being driven by advances in technology and developments that have led to dramatic growth of communication through interactive media. ranging from large multinational corporations to small local firms. The marketer combines direct mail. The mailing list is a database which collects together details of past. and Gerald Werre: email@example.com Door-to-Door Leaflet Marketing. this method is targeted purely by area. It is also possible to “buy” mailing lists from elsewhere. This is usually form of half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials and ask viewers for an immediate response typically to call a phone number on screen or go to a website. associations and other sources are good examples.
and the retailers promote to consumers. 8) Availability: e. It calls for spending a lot on advertising and consumer promotion to build up consumer demand. A company uses the sales-force to push the product through channels. and they use the Internet to conduct direct marketing. 3) Characteristics of the target market: If the size is limited. the retailers will ask the wholesalers.g.28 sweepstakes online. The producer promotes the product to wholesalers. 6) Stage of the PLC e. a promotional policy in which the producer promotes the product only to the next level down the marketing channel. But when markets are large. and the wholesalers will ask the producers.g. level of education etc. a product may be banned from being advertised on TV or radio e. Gerald Werre: geraldwerre@gmail. Pull strategy. personal selling. cigarettes. and public relations activities more effectively and efficiently. If the strategy is successful. 4) Characteristic of the product: for industrial products personal selling is used but advertising plays a major role for consumer goods. If dispersed advertising would be used. a promotion strategy in which a business promotes directly to consumers in order to create a strong consumer demand for its products. income. if the objective is to create mass awareness of a new consumer product then advertising or sales promotion can be used. 7) Cost of promotional methods.com Marketing Communications KIM/MUA .g. Factors determining selection of the promotion mix 1) Promotional resources: If a company’s promotional budget is extremely limited. 5) Price: high priced products call for more personal selling because consumers associate greater risk with the purchase of such products and want the advice and opinion of a sales person. it is likely to rely on personal selling rather than advertising or sales promotion. Identify the target audience/market. at introduction stage.g. Geographic distribution: Personal selling is more feasible if a company’s customers are concentrated in a small area than if dispersed. the wholesalers promote to retailers. policies e. Promotion Mix Strategies Push strategy. advertising and sales promotion is used because the methods can reach many people at low cost per person. consumers will ask their retailers for the product. advertising is done to create awareness. Socio-economic characteristics: Age. 2) Promotional objectives. Steps in Developing Effective Communication The marketing communicator must decide on the following six steps (Six Ms). the promotional mix will emphasize personal selling.
conviction. The marketing communicator’s target market may be totally unaware of the product. But purchase is the result of a long process of consumer decision making. Later ads created knowledge by informing potential buyers of the car’s high quality and many innovative features. how it will be said. know only its name. Nissan’s marketers want to move them through successively stronger stages of feelings toward the car. The stages consumers typically pass through on their way to purchase: awareness. and purchase. Salespeople tell buyers about options. Advertising extols the Inﬁniti’s advantages over competing brands. The target audience may be in any of six buyer readiness stages. value for the price. Once potential buyers know about the Inﬁniti. special publics. groups. The communicator must then lead these consumers to take the ﬁnal step to buy. liking. Actions may include offering special promotional prices or premiums.com Marketing Communications KIM/MUA .29 Determine the desired objectives/response (mission) Design the message Choose the media Develop the total promotion budget (money) Collect feedback on the communication campaign (measure effectiveness). those who make the buying decision or those who inﬂuence it. the message should get attention. 3. or the general public. The marketing communicator needs to know where the target audience is now and to what stage it needs to be moved. the marketing communicator must solve Gerald Werre: geraldwerre@gmail. Press releases and other public relations activities stress the car’s innovative features and performance. when it will be said. Determining the Desired Response In most cases. Identifying the Target Audience The audience may be potential buyers or current users. or know little about it. Initial ads for the Inﬁniti created curiosity and awareness by showing the car’s name but not the car. and obtain action (a framework known as the AIDA model). hold interest. it began with an extensive advertising campaign to create name familiarity. preference (preferring Inﬁniti to other car brands). and aftersales service. Inﬁniti marketers can use a combination of the promotion mix tools to create positive feelings and conviction.g. arouse desire. Designing a Message Ideally. 1. In putting together the message. The communicator must ﬁrst build awareness and knowledge. 2. These stages include liking (feeling favourable about the Inﬁniti). preference. the ﬁnal response is purchase. Buyer readiness stages. and conviction (believing that Inﬁniti is the best car for them). E. It may be individuals. knowledge. where it will be said.. when Nissan introduced its Inﬁniti automobile line. and who will say it. The target audience will affect the communicator’s decisions on what will be said.
Mercedes offers cars that are “engineered like no other car. and humour. how to say it logically (message structure). Rational appeal messages may show a product’s quality. pride. more recent research suggests that the advertiser is often better off asking questions and letting buyers draw their own conclusions.” They often are used to urge people to support such social causes as a cleaner environment aid to the needy. or performance. they like the association with the product. The second structure issue is to present a one-sided argument mentioning only the product’s strengths. Communicators can also use negative emotional appeals such as fear. The ﬁrst is whether to draw a conclusion or leave it to the audience. buy new tires). and shame. when you make people laugh. drink too much). economy. “Because so much is riding on your tires. joy. The third message structure issue is to present the strongest arguments ﬁrst. E. performance. and they feel good after seeing the commercial. In its ads. Message Format Gerald Werre: geraldwerre@gmail. value.” Moral appeals are directed to the audience’s sense of what is “right” and “proper.30 three problems: what to say (message content). They show that the product will produce the desired beneﬁts.g. Early research showed that drawing a conclusion was usually more effective. Presenting them ﬁrst gets strong attention. An example of a moral appeal is: “God made you whole. a one-sided argument is more effective in sales presentations. Emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase. Usually. sexual harassment. Advocates for humorous messages claim that they attract more attention and create more liking and belief in the sponsor. Give to help those He didn’t. and safety. guilt. Rational appeals relate to the audience’s self-interest. Communicators use such positive emotional appeals as love. There are three types of appeals: rational.” stressing engineering design. which get people to do things they should (brush their teeth. or combat such social problems as drug abuse.com Marketing Communications KIM/MUA . emotional. etc. however. and moral. Message Content The communicator must identify an appeal or theme that will produce the desired response. or to stop doing things they shouldn’t (smoke. and how to say it symbolically (message format). but may lead to an anti-climactic ending.” Message Structure The communicator must decide which of three ways to use to structure the message. A Michelin tire ad features cute babies and suggests..
copy. then all these elements plus body language have to be planned. Personal communication channels are effective because they allow for personal addressing and feedback. risky. Many drug companies promote to doctors. nearly 85 percent judged the coffee next to the red container to be the richest. and movement. but the consumers did not know this). blue. marketers hire celebrity endorsers—well-known athletes. shape. over the telephone. Personal inﬂuence carries great weight for products that are expensive. the communicator must choose words. posture. To attract attention. Non-Personal Communication Channels Gerald Werre: geraldwerre@gmail. scent. and voices. and colour. illustration. 75 percent felt that the coffee next to the brown container tasted too strong. message size and position. if a coffee company wants to communicate that its coffee is rich. actors. and hairstyle. When consumers sampled four cups of coffee that had been placed next to brown. red. and other health care providers to motivate these professionals to recommend their products to patients. Personal Communication Channels In personal communication channels. and colour. and musicians—to deliver their messages. nearly everyone felt that the coffee next to the blue container was mild. Therefore. Companies can hence use inﬂuential people in their advertisements. the communicator has to watch texture. size. Message Source The message’s impact on the target audience is affected by how the audience views the communicator. dentists. gestures.31 In a print ad. buyers of automobiles often go beyond mass-media sources to seek the opinions of knowledgeable people. 4. the communicator has to decide on the headline. Presenters plan their facial expressions. If the message is to be carried on television or in person. Colour plays a major communication role in food preferences.com Marketing Communications KIM/MUA . eye-catching pictures and headlines. it should probably use a red container along with label copy boasting the coffee’s rich taste. colour. or even through the mail or e-mail. and the coffee next to the yellow container was seen as weak. If the message will be carried over the radio. For example. and shape. Choosing Media There are two broad types of communication channels—personal and non-personal. dress. If the message is carried on the product or its package. They can communicate face to face. Messages delivered by highly credible sources are more persuasive. and yellow containers (all the coffee was identical. two or more people communicate directly with each other. or highly visible. sounds. Therefore. advertisers can use novelty and contrast. distinctive formats.
spending what competitors spend helps prevent promotion wars. magazines. print media (newspapers. There are four common methods used to set the total budget for advertising: the affordable method. determining the tasks needed to achieve each objective. television). posters). signs. 5. Two arguments support this method. Collecting Feedback Gerald Werre: geraldwerre@gmail. Objective-and-Task Method This is whereby the company sets its promotion budget based on what it wants to accomplish with promotion. The sum of these costs is the proposed promotion budget. broadcast media (radio. This budgeting method entails deﬁning speciﬁc promotion objectives. Using this method means that promotion spending is likely to vary with what the company can “afford. Setting the Total Promotion Budget One of the hardest marketing decisions facing a company is how much to spend on promotion. Competitive-Parity Method Still other companies set their promotion budgets to match competitors’ budgets. It also creates competitive stability because competing ﬁrms tend to spend about the same percentage of their sales on promotion.com Marketing Communications KIM/MUA . Second.32 Non-personal communication channels are media that carry messages without personal contact or feedback. direct mail). the competitive-parity method. They include major media e. The drawback is that it wrongly views sales as the cause of promotion rather than as the result. 6.g.” It also helps management think about the relationship between promotion spending and sales. They monitor competitors’ advertising or get industry promotion spending estimates from publications or trade associations. it more often results in under spending. First. competitors’ budgets represent the collective wisdom of the industry. and display media (billboards. Although the affordable method can result in overspending on advertising.and-task method. and the objective. Promotion spending may be 20 to 30 percent of sales in the cosmetics industry and only two or three percent in the industrial machinery industry. and then set their budgets based on the industry average. and estimating the costs of performing these tasks. Percentage-of-Sales Method Other companies set their promotion budget at a certain percentage of current or forecasted sales. Affordable Method Some companies set the promotion budget at the level they think the company can afford. the percentage-of-sales method.
Advertising includes any paid form of non-personal presentation and promotion of ideas. Finally. To prevent this. coupled with advances in information technology. In contrast. companies are adopting the concept of integrated marketing communications which calls for carefully integrating all sources of company communication to deliver a clear and consistent message to target markets.33 After sending the message. the company must first integrate its internal communications activities. It carefully coordinates the promotional activities and the timing of when major campaigns take place. the communicator must research its effect on the target audience. what points they recall. Finally. more focused media. goods. public relations focuses on building good relations with the company’s various publics by obtaining favourable unpaid publicity. personal selling. Discuss the process and advantages of integrated marketing communications. Name and define the five tools of the promotion mix A company’s total marketing communications mix—also called its promotion mix—consists of the specific blend of advertising. sales promotion. how they felt about the message. how many times they saw it.com Marketing Communications KIM/MUA . Firms use sales promotion to provide short-term incentives to encourage the purchase or sale of a product or service. have had a dramatic impact on marketing communications. This involves asking the target audience members whether they remember the message. Revision Questions 1. 2. Companies are doing less broadcasting and more narrowcasting. or visited the store. the mass media are giving way to a profusion of smaller. Feedback on marketing communications may suggest changes in the promotion program or in the product offer itself. and their past and present attitudes toward the product and company. they risk creating a communications hodgepodge for consumers. firms seeking immediate response from targeted individual customers use nonpersonal direct marketing tools to communicate with customers. As marketing communicators adopt richer but more fragmented media and promotion mixes to reach their diverse markets. and direct marketing tools that the company uses to pursue its advertising and marketing objectives. to help implement its integrated Gerald Werre: geraldwerre@gmail. To integrate its external communications effectively. The company then works out the roles that the various promotional tools will play and the extent to which each will be used. talked to others about it. Personal selling is any form of personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. or services by an identified sponsor. The communicator also wants to measure behaviour resulting from the message—how many people bought a product. Recent shifts in marketing strategy from mass marketing to targeted or one-on-one marketing. Although still important. public relations.
both for personal and non-personal communication. Media must be selected. the communicator must collect feedback by watching how much of the market becomes aware. and is satisfied in the process. to use a percentage of sales. Outline the steps in developing effective marketing communications. whether it be awareness.34 marketing strategy. or to base it on an analysis and costing of the communication objectives and tasks. Finally. The most popular approaches to making this decision are to spend what the company can afford. conviction. In preparing marketing communications.com Marketing Communications KIM/MUA . Next. liking. the communicator must define the response sought. Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. and the product life cycle stage. 4. The company must decide how much to spend on promotion. the communicator’s first task is to identify the target audience and its characteristics. What specific blend of promotion tools is best depends on the type of product-market. or purchase. 3. Gerald Werre: geraldwerre@gmail. the company appoints a marketing communications director who has overall responsibility for the company’s communications efforts. tries the product. knowledge. Then a message should be constructed with an effective content and structure. to base promotion on competitors’ spending. or a combination of the two. the desirability of the buyer’s readiness stage. Companies can pursue a push or a pull promotional strategy. preference. The company must divide the promotion budget among the major tools to create the promotion mix.
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