Unit Eight

Communicating Value
Questions
• What is the role of marketing communications?
• How do marketing communications work?
• What are the major steps in developing effective
communications?
• What is the communications mix and how should it be set?
• What is an integrated marketing communications program?
• What steps are involved in developing an advertising program?
• How should sales promotion decisions be made?
• What are the guidelines for effective brand-building events and
experiences?
• How can companies exploit the potential of public relations and
publicity?
What are Marketing Communications?

Marketing communications are the

means by which firms attempt to inform,
persuade, and remind consumers, directly
or indirectly, about the products and
brands they sell.
Modes of Marketing Communications

Advertising Direct marketing

Sales promotion Interactive
Events and marketing
experiences Word-of-mouth
Public relations marketing
and publicity Personal selling
Communication Platforms
Advertising Sales Promotion
 Print and broadcast ads  Contests, games,

 Packaging inserts sweepstakes

 Premiums
 Motion pictures
 Sampling
 Brochures and booklets
 Trade shows, exhibits
 Posters
 Coupons
 Billboards
 Rebates
 POP displays
 Entertainment
 Logos
 Continuity programs
 Videotapes
Communication Platforms

Events/ Experiences Public Relations

 Sports  Press kits
 Entertainment  Speeches
 Festivals  Seminars
 Art  Annual reports
 Causes  Charitable donations
 Factory tours  Publications
 Company museums  Community relations
 Street activities  Lobbying
 Identity media
 Company magazine
Communication Platforms
Personal Selling Direct Marketing
 Sales presentations • Catalogs
 Sales meetings • Mailings
 Incentive programs • Telemarketing
 Samples • Electronic shopping
 Fairs and trade shows • TV shopping
• Fax mail
• E-mail
• Voice mail
• Blogs
• Websites
Word-of-Mouth Marketing
Person-to-person
Chat rooms
Blogs
Elements in the Communications
Process
Sender
Encoding
Message
Decoding
Receiver
Response
Noise
Feedback
Elements
Steps in Developing Effective Communications

Identify target audience

Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/manage IMC
Communications Objectives
Category need: appropriate for a new-to-
the-world product
Brand awareness: fostering the
consumer’s ability to recognize or recall
the brand within the category
Brand attitude: e.g., food processing
companies use sensory-oriented ad
Purchase intention: Moving consumers
to decide to purchase the brand or take
purchase-related action.
Designing the Communications
Message strategy: searches for appeals,
themes, or ideas;
Creative strategy: refers to message and
expression of the message. Creative
strategies are the way marketers translate
their messages into a specific
communication.
Message source: use attractive or popular
sources
Global adaptation
Creative Strategy
Informational and transformational
appeals
Positive and negative appeals
◦ Fear
◦ Guilt
◦ Shame
◦ Humor
◦ Love
◦ Pride
◦ Joy
Message Source

Celebrity Characteristics

◦ Expertise
◦ Trustworthiness
◦ Likeability
Select Communication Channels
• Personal channels:
▫ Advocate channels consist of company salespeople
contacting buyers in the target market.
▫ Expert channels consist of independent experts making
statements to target buyers.
▫ Social channels consist of neighbors, friends, family
members, and associates talking to target buyers.
• Nonpersonal channels
▫ Media
▫ Sales promotion
▫ Events and experiences
▫ Public relations
• Integration of channels
Stimulating Personal Influence
Channels
Identify influential individuals and devote
extra attention to them
Create opinion leaders
Use community influentials in testimonial
advertising
Develop advertising with high
“conversation value”
Develop WOM referral channels
Establish an electronic forum
Use viral marketing
Managing Mass Communications
Advertising,
Sales Promotions,
Events and Experiences, and
Public Relations
What is Advertising?
Advertising is any paid form of non-
personal presentation and promotion of
ideas, goods, or services by an identified
sponsor.
The Five M’s of Advertising
Advertising Objectives
Informative
Persuasive
Reminder
Reinforcement
Factors to Consider in Setting an Advertising
Budget
Stagein the product life cycle
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability
Developing the Advertising Campaign
Message generation and evaluation
Creative development and execution
Legal and social issues
Creative Brief
Positioning Brand promise
statement
Key message Evidence of promise

Target market Media

Objectives Background

Key brand benefits Creative

considerations
Television
Advantages Disadvantages
 Reaches broad  Brief

spectrum of consumers  Clutter

 Low cost per exposure  High cost of production
 Ability to demonstrate  High cost of placement
product use  Lack of attention by
 Ability to portray viewers
image and brand
personality
Print Ads
Advantages Disadvantages
 Detailed product  Passive medium
information  Clutter
 Ability to communicate
 Unable to
user imagery demonstrate product
 Flexibility
use
 Ability to segment
Print Ad Evaluation Criteria
Is the message clear at a glance?
Is the benefit in the headline?
Does the illustration support the
headline?
Does the first line of the copy support or
explain the headline and illustration?
Is the ad easy to read and follow?
Is the product easily identified?
Is the brand or sponsor clearly identified?
Media Selection
Reach: The number of different persons
or households exposed to a particular
media schedule at least once during a
specified time period
Frequency: The number of times within
the specified time period that an average
person or household is exposed to the
message
Impact: The qualitative value of an
exposure through a given medium
Choosing Among Major Media Types
Targetaudience and media habits
Product characteristics
Message characteristics
Cost
 Major Media Types
Newspapers Outdoor
Television Yellow Pages
Direct mail Newsletters
Radio Brochures
Magazines Telephone
Internet
Evaluating Advertising
Effectiveness
Communication Effect Research
◦ Consumer feedback method
◦ Portfolio tests
◦ Laboratory tests
Sales-Effect Research
Measuring Sales Impact of Advertising

Share of expenditures
Share of voice
Share of mind and heart
Share of market
What is Sales Promotion?
Sales promotion consists of a collection
of incentive tools, mostly short term,
designed to stimulate quicker or greater
purchase of particular products or
services by consumers or the trade.
Sales Promotion Tactics
Consumer-directed Trade-directed
Samples Price offs
Coupons Allowances
Cash refund offers Free goods
Price offs Sales contests
Premiums Spiffs
Prizes Trade shows
Patronage rewards Specialty advertising
Free trials
Tie-in promotions
Using Sales Promotions
Establish objectives
Select tools
Develop program
Pretest
Implement and control
Evaluate results
Why Sponsor Events?
To identify with a particular target market or
life style
To increase brand awareness
To create or reinforce consumer perceptions
of key brand image associations
To enhance corporate image
To create experiences and evoke feelings
To express commitment to community
To entertain key clients or reward employees
To permit merchandising or promotional
opportunities
Tasks Aided by Public Relations
Launching new products
Repositioning a mature product
Building interest in a product category
Influencing specific target groups
Defending products that have encountered
public problems
Building the corporate image in a way
that reflects favorable on products
Public Relations Functions
 Public
relations (PR) includes a variety of
programs to promote or protect a company’s
image or individual products.
◦ Press relations: news and information about the
organization
◦ Product publicity: Sponsoring efforts to publicize
specific products
◦ Corporate communications: Promoting
understanding of the organization
◦ Lobbying: Dealing with legislators and
government officials
◦ Counseling: Advising management about public
issues
Major Tools in Marketing PR
Publications
Events
Sponsorships
News
Speeches
Public Service Activities
Identity Media
Decisions in Marketing PR
Establishobjectives
Choose message
Choose vehicles
Implement
Evaluate results