Chp 2 effective communications for marketing

Chapter 2

EFFECTIVE COMMUNICATIONS FOR MARKETING

DIPLOMA IN INTERNATIONAL BUSINESS(BUS2513)

Some Strategic Goals of Marketing Communications

Slide17-1

Table17.1

Strategic GoalStrategic Goal

Create awareness

Build positive images

Build channel relationships

DescriptionDescription

Inform markets about products, brands, stores or organizations.

Develop positive evaluations in people’s minds about products, brands, stores or organizations.

Identify prospects Find out the names, addresses and possible needs of potential buyers.

Increase cooperation among channel members.

Create value for customers, satisfy their wants and needs, and earn their loyalty.

Retain customers

The Communication Process

Source/Sender: the party sending the message to another party.

Encoding: the process of putting toughts into symbolic form

Message: the set of symbols that sender transmits

Communication channel : medium that carries coded message

Decoding process: converting signs and symbols into concepts and ideas

Receiver: the party receiving the message sent by another party

Response: the reactions of the receiver after being exposed to the message

Noise: the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one that sender sent. It can reduces communication’s clarity and accuracy

Feedback: part of the receiver’s response communicated back to the sender

Possible Objectives Of Promotion

THE AIDA MODEL

Slide17-3

Figure17.2

Action DesireInterestAttention

MarketingCommunications

Promotion and the AIDA Model

Promotion Objectives Adoption Process AIDA Model

Informing

Persuading

Reminding

AttentionInterest

Desire

Action

AwarenessInterestEvaluationTrialDecisionConfirmation

}}

{

Create Awareness

Awareness is crucial to initiating product adoption process

Increase awareness of brands, product features, image-related issues, or operational characteristics

Stimulate Demand

Primary - demand for a product category rather than a specific brandPioneer promotion – informs consumers about

a new product

Selective - demand for a specific brand

Encourage Product Trial

Free samples

Coupons

Test drives

Limited free-use offers

Contests

Games © Microsoft Power Point Clip Art

Encouraging product trial through a free offer

© Jeff Greenberg / PhotoEdit

Communications Objectives Communications Objectives of Consumer Promotionsof Consumer Promotions

Slide18-7a

Coupons

Deals

Contests and sweepstakes

Stimulate sales by short-term price reductions; obtain trial for new products.

Premiums

Free samples

Stimulate sales of products, visits to stores; increase quantities purchased.

Attract new customers to existing products; build goodwill; offer greater value.

Attract attention; create goodwill; increase sales; generate publicity.

Encourage usage by consumers so they can experience product benefits.

Table18.3

Type Communications Objectives

Free trials Stimulate sales by lowering risk of product being unacceptable after purchase; provides experience of product’s performance.

Slide18-7b

Point of Purchase Displays

Rebates

Trade shows

Make products more prominent in stores; increase chances of impulse purchases; introduce new products.

Continuity plan

Specialty promotions

Encourage purchases, particularly for big ticket items; get customer information for databases.

Reward customer loyalty; support relationship marketing efforts; increase sales volumes.

Generate attention and awareness of an industry’s products; identify prospects; make sales.

Generate awareness of company, products and locations; get repeated exposures to messages; create goodwill.

Table18.3

Type Communications Objectives

Communications Objectives Communications Objectives of Consumer Promotionsof Consumer Promotions

Retain Loyal Customers

Cheaper than acquiring new ones

Frequent-user programs

Special offers

© Microsoft Power Point Clip Art

The Promotion/ Communications Mix• A combination of promotional methods used to promote a specific product.

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Advertising PersonalService

PublicitySalesPromotion

Comparing the Elements of the Communications Mix

Slide17-5

Message can be Customized for each Customer

Considered an Unbiased Source

Long Term, Ongoing Activity

Marketer Control Over Message

Communications Mode

Short Term Focus

Cost per Contact

Overall Cost

Personal Selling

SalesPromotion

Advertising Publicity

Two-Way One-WayOne-Way One-Way

Low VariesHigh No Direct Cost

Yes NoYes No

No NoNo Yes

Yes NoNo No

No YesNo No

High VariesLow No Direct Cost

Medium-High HighHigh Low

Selecting PromotionMix Elements

Promotional Resources, Objectives, and Policies- affect promotional methods and types selected

Characteristics of the Target MarketCharacteristics of the ProductCosts and Availability of Promotional

MethodsPull and Pull Channel Policies

Target Market Characteristics

Help dictate methods included in promotion mix

Market size determines composition of mix

Push vs. Pull Promotional Strategies

Push and Pull Channel Policies

Push policy – promoting a product only to the next institution down the marketing channel

Pull policy – promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel

Personal And Electronic Word-Of- Mouth Communication

Word-of-Mouth – personal informal exchanges customers share with one another about products, brands, and companies

Buzz marketing – an attempt to gain acceptance of product by word-of-mouth

Viral marketing – strategy to get Internet users to share ads and promotions with their friends

Advertising andPublic Relations

The Nature of Advertising

Advertising – paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

A form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas or services

Types of AdvertisingSlide18-1

Table18.1

Digital Advertising

Advertising that focuses on using TV, radio, online advertising, product placement (covert advertising)

Term Definition

Physical advertising

Physical appearance on the advertising such as press advertising (newspapers, magazines), mobile billboard advertising, in-store advertising, coffee cup advertising, street advertising, celebrity advertising

Objective of Advertising

Increasing the usage of a certain product and hence acquiring more orders.

Creating new customers and increasing brand recognition.

To obtain feedback from customers regarding a certain product.

To indicate introduction of new products or replacement of old ones.

The Process of Managing AdvertisingSlide18-2

Figure18.2

Review Advertising Goals and Budget

Pretest Ads

Schedule and Run Ads

Evaluate Advertising Effectiveness

Adjust Advertising As Needed

Select MediaCreate Messages

Advertising AppealsSlide18-3

Humor Emotional

Moral Rational

Sex Fear

Developing an Advertising Campaign

Advertising campaign – the creation and execution of a series of advertisements to communicate to a particular target audience

Steps In Developing AndImplementing An Advertising Campaign

Determining the Advertising Appropriation

Advertising appropriation – budget for a specific time periodGeographic size of marketDistribution of buyersType of productFirm’s sales volume vs. competitor’s sales volume

Appropriation for business products vs. convenience items

AdvertisingExpenditures By Media

Relative Merits of Major Advertising Media

Slide18-5a

Television

Radio

• Reaches a broad audience• Provides both audio and

visual information• Can generate attention• Low cost per exposure

Table18.2

Medium Advantages Disadvantages

• High network charges and production costs

• Limited ability to target customers• Short exposure time in most

cases• Limited availability• Can be zapped by consumers

with remotes

• Messages are short• Inability to convey visual

information• Lower attention than television• No standard rate structures• Audience engages in other

activities while listening

• Less costly than television advertising

• Messages can be fairly well targeted for consumer markets

• Widely used in many parts of the world

Slide18-5b

Print • Can provide broad or targeted exposure

• Cost can be low• Reader can study an ad

and review detailed information

• Broad acceptance• High believability• Magazine reproduction

quality is high

• Some pass-along audience

Table18.2


• Some print media require submission well in advance of publication

• Some print media do not effectively reproduce color

• No guarantee of ad’s position• Ads in widely read magazines

and newspapers may be costly

• Frequency limited by publication schedule

Relative Merits of Major Advertising Media

Direct Mail • Relatively high cost• Poor image of medium

among many customers• Usually lacks nonadvertising

material to attract readers• Delivery time and date

cannot be guaranteed

• Messages can be narrowly targeted

• Messages can be relatively long and detailed

• No competing ads in medium

• Performance can be measured relatively easily

• Difficult for competitors to monitor results

Slide18-5c

Table18.2


Relative Merits of Major Relative Merits of Major Advertising MediaAdvertising Media

Slide18-5d

Outdoor

Internet

• Inexpensive (in the case of posters)

• High repeat exposure• Low competition• Can be placed near point of

sale

Table18.2


• Targets an audience only by geographic location

• Message viewed very briefly• Expensive (in the case of

billboards)• Negative image among

environmentalists

• Not all users speak the same language used in the ad

• Quality of images varies• Audience limited to Internet users

interested in the company or product

• Messages can be customized

• No additional cost for reaching global markets

• Messages can include words, pictures, sound and video

Relative Merits of Major Relative Merits of Major Advertising MediaAdvertising Media

Public Relations

Communication efforts used to create and maintain favorable relations between an organization and its stakeholders

Function of PR

Press relations/press agency: creating and placing newsworthy info in the news media to attract attention to a person, product or service

Product publicity: publicizing specific products

Public affairs: building and maintaining national or local community relations

Lobbying: building and maintaining relationships with legislators and government officials to influence legislation and regulation

Investor relations: maintaining relationships with shareholders and others in the financial community

Development: public relations with donors or members of nonprofit organisations to gain financial or volunteer support

Types of Publicity

Press Releases

Company Newsletter

Organize News

Public Speaking

Interviewed on TV/Radio

ExhibitionTrade Shows

Press Launches

Public Relations Tools

PeoplePlacesIdeasActivitiesCountries

Publicity – communication about the organization and/or its products transmitted through mass media at no chargeNews releaseFeature articleCaptioned photographPress conference

Advertising Vs. Public RelationAdvertising Public Relation

Company pays for ad space. They know exactly when the ad will air or be publish.

Get free publicity for the company. Getting free media exposure for the company and its products/services.

Company has creative control on what goes into the ad.

No control over how the media presents the company’s information, and company is not obligated to cover the event.

Can run ads over and over for as long as budget allows.

The company exposure only once on a press release. They won’t publish the same article.

Buzz words are used to motivate people to buy your product.

Strictly writing in a formal news format, there is no blatant commercial messages in the articles/speech/press release.

Unified Communications

The Communications Divide

The Communications Divide

The communications world is split in two—between the things you do on the telephone and the things you do on the computer.

The split exists because most real-time (synchronous) communications--like telephone calls and voice mail--depend on one network, while message based (asynchronous) communications--like e-mail--depend on a separate, incompatible network.

Real-time (synchronous) communications run on the Public Switched Telephone Network (PSTN). Asynchronous communications run on packet-based networks like Ethernet (IP).

The split creates problems, lots of them. Phones aren't as intuitive as they should be: just try to start a three-way call without hanging up on someone. Computers can check your e-mail, but not your voice mail. And then there's the enormous cost of purchasing, maintaining, and upgrading two complex infrastructures.

To get your phones and your computers talking, you'd have to tear out your entire telephone system, dump your PBX, replace every desk phone, swap out every phone jack. In short, you'd have to start from scratch.

Business Challenge

In the new technological workplace, the focus is on the work, not where it is done.

People come together to solve problems, develop plans, and embrace opportunities.

In the past, this usually required them to be in physical proximity.

In the new world of work, however, working together no longer means working in the same room, the same office, or even in the same country.

Nor does it mean that people belong to the same organization or share the same applications infrastructure or network resources.

New Requirements

Information workers must quickly find and reuse the information they need.

Field sales personnel need always-on access to key line-of-business information, including customer contact, sales, order, and production data.

Information workers need search capabilities that cross data repositories so that they can stay productive by quickly finding the information they need.

Distributed teams need easy-to-use, self-provisioned tools so that team members can share documents, tasks, calendar data, and presence information within and outside the corporate network, with assurance that this information is better-protected with strong security.

Corporate management needs electronic record and content management, e-mail retention, and compliance controls.

Another name…

Also known as Integrated Marketing Communications (IMC).

According to The American Marketing Association, it is “a planning process designed to assure that

all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.”

It is defined as a holistic approach to promote buying and selling in the digital economy.

This concept includes many online and offline marketing channels.Online marketing channels include any e-

marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, RSS, podcast, and Internet TV.

Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry analyst relations billboard, radio, and television.

Goal of IMC or UCA management concept that is designed to make all

aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.

In practice, the goal of IMC is to create and sustain a single look or message in all elements of a marketing campaign.

A successful integrated marketing communication plan will customize what is needed for the client based on time, budget and resources to reach target or goals.

Small business can start an integrated marketing communication plan on a small budget using a website, email, etc.

Large corporation can start an integrated marketing communication plan on a large budget using print, mail order, radio, TV plus many other online ad campaigns.

7 Main Shifts1. From media advertising to multiple forms of communication

(including promotions, product placements, mailers...) 2. From mass media to more specialized media, which are centered

around specific target audiences. 3. From a manufacturer-dominated market to a retailer-dominated

market. The market control has transferred into the consumer's hands.

4. From general-focus advertising and marketing to data-based marketing.

5. From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before.

6. From traditional compensation to performance-based compensation. This encourages people to do better because they are rewarded for the increase in sales or benefits they cause to the company.

7. From limited Internet access to widespread Internet availability. This means that people can not only have access to what they want 24/7 but that advertisers can also target different people 25 hours a day.

Communications Convergence

The arrival of unified communications signals the beginning of the convergence of VoIP telephony (which provides the ability to route telephone calls through the Internet), email, instant messaging, mobile communications, and audio and video Web conferencing into a single platform that shares a common directory and common developer tools.

Unified communications also takes advantage of standard communication protocols such as SIP (Session Initiation Protocol) to route communications to the right people on the right device.

Characteristics of a Good UC Application

Personal and intuitive: One of the most important goals is to make communication and information access seamless and personal, no matter the location or what device. Presence—which provides information about availability—will enable a party to reach the right person on the first try. Intelligent information agent software that understands

how you prefer to work will give you control over who can contact you, on what device and at what times. SIP standards and software-based call management will make communications richer and more intuitive, and provide seamless transitions from one communications mode to the next.


Convenient and integrated: Today, when you contact a colleague, you probably need to switch from the application you are working in to an address book and then to a device (like a telephone) or a different application (such as email). Unified communications will enable you to collaborate directly from the application where you are working. Integration with Microsoft Office will help make Microsoft Outlook

the center for all types of communications experiences and provide seamless access to collaboration tools such as Microsoft SharePoint. By delivering a standards-based platform, Microsoft will enable developers to integrate communications into applications that provide even greater value, convenience and power.


Flexible and trustworthy: Unified communications will enable organizations to consolidate their communications systems into an integrated platform that utilizes a single identity for each user and provides a common management and compliance infrastructure. This will enable IT departments to significantly improve communications and collaboration capabilities while reducing complexity and lowering total cost of ownership. Built on a platform that is secure and reliable, Microsoft unified

communications technologies are already helping leading companies achieve groundbreaking TCO. Ebay, for example, has lowered its per-mailbox costs by 70 percent. At Nissan, collaboration technologies have helped save more than US$135 million. And Siemens has unified 130 business units into a single Active Directory.

In the Industry…

Business Benefits of UCA complete, inclusive set of tools and services for information

workers to help them get more work done faster and at less expense.

Tools for document sharing, workflow creation, enterprise search, real-time communications, e-mail, and business productivity. These tools work together out of the box, with no complex or expensive integration required.

User access to critical data from the desktop, a Web browser, or a mobile device—all using a consistent, powerful, familiar interface. This increases user productivity and cuts wasted time.

Electronic records management tools that can help reduce compliance overhead and expense.

Easier and less-expensive deployment and management to reduce IT overhead costs for providing a complete collaboration environment.