Session 30 MG 220 MBA - 25 Nov 10

MG 220 Marketing ManagementMBA 10

Fall 2010

Muhammad Talha Salam, Asst. [email protected]

Access it online: www.slideshare.net/talhasalam

Part 7:Communicating Value

> The Role of Marketing Communications> Developing Effective Communications> Deciding on Marketing Communications

Mix> Managing the Integrated Marketing

Communications Process

Class Presentation | Session 30 | 25 Nov 2010

MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam

The Role of Marketing CommunicationsConceptMarketing Communication and Brand Equity• The means by which firms attempt to inform, persuade, and remind

consumers, directly or indirectly, about the products and brands they sell

Marketing Communications Mix


The Role of Marketing CommunicationsConceptMarketing Communications Mix - Definitions• Advertising

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor

• Sales PromotionA variety of short-term incentives to encourage trial or purchase of a product or service

• Events & ExperiencesCompany-sponsored activities and programs designed to create daily or special brand-related interactions

• Public Relations & PublicityA variety of programs designed to promote or protect a company’s image or its individual products

• Direct Marketing Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit response or dialogue from specific customers and prospects

• Personal SellingFace to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders


The Role of Marketing CommunicationsConceptMarketing Communications Mix - Examples• Advertising

Print and broadcast ads, Brochures, Posters, Billboards, POP displays

• Sales PromotionContests, sweepstakes, Premiums, Sampling, Coupons, Rebates

• Events & ExperiencesFestivals, Arts, Causes, Factory tours, Company museums, Street activities

• Public Relations & PublicityPress releases, Seminars, Annual reports, donations, Community relations, Lobbying

• Personal SellingSales presentations, Sales meetings, Incentive programs, Samples, Fairs and trade shows

• Direct Marketing Catalogs, Mailings, Telemarketing, Electronic shopping, TV shopping, Fax mail, E-mail, Voice mail

CONSISTENCY IN MESSAGE BY INTEGRATING THESE MARKETING COMMUNICATIONS IS REQUIRED


The Role of Marketing CommunicationsThe Communication Process Models

Macro-model of Marketing Communications• Major parties in Communication

– Sender | Receiver

• Major Communication Tools– Message | Media

• Major Communication Functions– Encoding | Decoding | Response | Feedback

These processes operate during communication

• Selective Attention• Selective Distortion• Selective Retention


The Role of Marketing CommunicationsThe Communication Process Models

Micro models of Marketing Communications• Response hierarchy models• Learn-Feel-do sequence• Buyer passed through:

– Learn-Feel-do– Do-Feel-Learn– Learn-Do-Feel

• Fragility of Marketing Communications

• Example: If at all stages success prob. is even 50%


Developing Effective Communications

• Identify Target Audience– Use Segmentation strategies– Analyze target audience:

• Image Analysis• Favorability Analysis• Familiriaty Analysis

MG 220 Marketing Management 7

Identify Target Audience

Determine Objective

Design Communications

Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC



• Determine Objective– Category Need

• Developing need for a certain category

– Brand Awareness• Identifying a brand within a certain category

– Brand Attitude• Evaluation of brand to meet a relevant need

– Brand Purchase intention• Taking purchase-related action



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC



• Design Communications– Message Strategy (what to say)

• Looking for appeals related to brand positioning • To help establish POPs and POPs

– Creative Strategy (how to say it)• Informational Appeals – giving information• Transformational Appeals –emotional attributes

– Message Source (who to say it)• Source should have credibility through:

– Expertise– Trustworthiness– Likability



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC



• Select Channels– Personal Channels

• Advocate Channels (e.g. salesforce)• Expert Channels (e.g. independent experts)• Social Channels (e.g. neighbors, family, friends)

– Non-Personal Channels• Media• Sales Promotions• Events and Experiences• Public Relations

– Integration of Communication Channels



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC



• Establish Total Mktg. Comm. Budget– Affordable Method– Percentage-of-Sales method

• More result oriented, variable cost• No logical basis for choosing the “%age”

– Competitive-Parity method• Budget established to achieve ‘share-of-voice’ parity with comp.• Collective wisdom (?) & preventing promotion wars (?)

– Objective-and-task method• Establish market share goal• Determine %age of market that should be reached by advertising• Determine %age of aware prospects that should be persuaded• Determine number of ad impressions per 1 percent trial rate• Determine number of Gross Rating points (GRPs)• Determine req. advertising budget on basis of avg. cost of GRP



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC


Deciding on Marketing Communications MixCharacteristics of Marketing Comm. MixAdvertising• Long-term image | trigger sales | reach geog. dispersed customers

– Pervasiveness (several repetitions)– Amplified expressiveness– Impersonality (it is monologue)

Sales Promoti0n• Stronger & Quick buyer response | Short-run effects

– Communication– Inventive– Invitation

Public Relation & Publicity• Coordinated with other elements of mix

– High credibility– Ability to catch buyers “off-guard”– Dramatization



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC


Deciding on Marketing Communications MixCharacteristics of Marketing Comm. MixEvents & Experiences• Costly yet having many advantages

– Relevant– Involving– Implicit

Direct Marketing• Forms: Direct Mail, telemarketing, internet marketing

– Customized– Up-to-date– Interactive

Personal Selling• Most effective in later stages, good for building preferences

– Personal interaction– Cultivation– Response



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC


Deciding on Marketing Communications MixFactors in Setting the Marketing Comm. MixType of Product Market• Consumer markets: more spend on sales prom. & advertising• Business markets: more on personal sellingBuyer-Readiness Stage• Cost-effectiveness of communication tools vary at different stages

of buyer readiness

Product Life-Cycle Stage• Cost effectiveness of communication tools vary as with PLC stages



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC


Deciding on Marketing Communications MixMeasuring Communication ResultsFeedback Measurement

• After implementing the plan:• Impact on target audience is to be measured• Surveyed to ask:

– Whether they have recall– How many times they saw it– What points they recall

• A good example of measured results:



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC


Managing the IMC – Integrated Marketing Communications

Coordinating Media• Personal and Non-personal channels to be coordinated

Implementing IMC• IMC concept has been relatively slow to take hold:

– Large companies have several specialist organizations– They don’t know much about other channels/tools– Global companies use different agencies in different countries

• Still a few agencies have improved by integrating with differentspecialist companies – by acquiring them

• Offering one-window solutions



Determine Objective


Select Channels

Establish budget

Decide on media mix

Measure results

Manage IMC

MG 220 Marketing ManagementMBA 10

Fall 2010

Muhammad Talha Salam, Asst. [email protected]


Part 7:Communicating Value

> Developing and Managing an Advertising Program

> Deciding on Media and Measuring Effectiveness

Class Presentation | Session 31 | 29 Nov 2010