Serra Gorpe

MARKETING MARKETING COMMUNICATIONSCOMMUNICATIONS

Dr. Serra Gorpe, APRDr. Serra Gorpe, APR

ISTANBUL UNIVERSITYISTANBUL UNIVERSITY

School of CommunicationSchool of Communication

OUTLINEOUTLINE

- The Marketing Environment- Marketing Communication and its Process- Target Market- Marketing Mix- Integrated Marketing Communications- Buyer Behavior- Marketing Research- Product Planning and Management- Brand Management

....OUTLINE....OUTLINE

- Packaging- Pricing- Distribution - Promotional Strategy- Evaluation - MARKETING APPLICATIONS IN SPECIAL

FIELDS- Regulation and Ethics- REFERENCES- How to prepare a MC plan

MARKETING ENVIRONMENTMARKETING ENVIRONMENT

• Marketing

• Markets

• The Marketing Concept

• Marketing Functions and Processes

• History of Marketing

• Environmental Analysis

• Marketing Strategy and Planning

....MARKETING ENVIRONMENT....MARKETING ENVIRONMENT

• Marketing is the process of planning and executing development, pricing, promotion and distribution of goods and services to achieve organizational goals.

• A ‘Market’ is made up of all the people or organizations who want or need a product and have the willingness and ability to buy.

• Products may be goods, services, ideas, places or persons. (Finch, p. 1)


• The aim of marketing is to know and understand customer so well that the product or service fits him and sells itself

(Kotler and Armstrong, p.4)Needs: it is a state of felt deprivation in a personWants: forms that human needs take when shaped

by culture and individual personalityDemands: wants become demands when packed

by buying power.Exchange and transaction

....MARKETING MANAGEMENT ....MARKETING MANAGEMENT PHILOSOPHIESPHILOSOPHIES

1) Production Concept: Holds that consumers will favor products that are available and highly affordable and therefore management should focus on improving production and distribution efficiency.

2) Product concept: Consumers will favour the products that offer the most quality, performance, therefore the organization should devote its energy to making continous product improvements.

(Kotler and Armstrong, p.14-15)


3) Selling Concept: Consumers will not only buy enough of the organization’s products unless the organization undertakes a large selling and promotional effort.

4) Marketing Concept: Achieving organizational goals depend on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

(Kotler and Armstrong, p.14-15)


5) Societal Marketing Concept: Organization should determine the needs, wants and interest of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the society’s and consumers’s well being. (Kotler and Armstrong, p.17)

....MARKETING CONCEPTS OF ....MARKETING CONCEPTS OF 1950s1950s

Marketing Mix

Product Life Cycle

Brand Image

Market Segmentation

Marketing Concept

Marketing Audit

(Harris, p. 280)


The Marketing Concept. A company should satisfy consumer wants and needs at a profit. The company should aim all its efforts toward giving its customers the services and products thet want or need.

(Ogden, p. 5)Customer Satisfaction: Eg: Walmart

The Marketing Concept is a customer-oriented business philosophy which stresses customer satisfaction as the key to achieve organizational goals. The philosophy maintains that all of the organizations’s efforts should be focused on identifying and satisfying the wants and needs of the customer.

(Finch, p. 2)


4 P’s classification

Marketing Mypoia

Lifestyles

Broadened Concept of Marketing

(Harris, p. 280- 281)


Social Marketing

Positioning

Strategic Marketing

Societal Marketing

Macromarketing

Service Marketing

(Harris, p. 281)


Marketing WelfareInternal MarketingGlobal MarketingLocal MarketingDirect MarketingRelationship MarketingMegaMarketing(Harris, p. 281)


Marketing Functions1) Environmental Analysis2) Consumer Analysis3) Product Planning4) Price Planning5) Promotion Planning6) Place (physical distribution) planning

(Finch, 2)


Marketing Mix (4 P’s)

A combination of four variables which comprise an organization’s marketing program

1) Product

2) Price

3) Promotion

4) Physical distribution

(Finch, 2)


• Market Segmentation: The idea is to look at consumer response behavior. Marketer wants to know what makes an individual respond to a given cue in the environment. Each group of consumers that responds in the same way is placed in a subgroup, or market segment (Ogden, p. 9).

• It is the process of dividing the total market into distinct submarkets or groups based on similarities in their wants, needs, behaviour or other characteristics


Market Segments are groups of customers who are similar to each other in a meaningful way and who will respond to a firm’s marketing mix similarly.

(Finch, 2)


Target Market

A group of people toward whom the organization or company decides to aim its marketing efforts.

They are:

- Willing to buy the product,

- Are able to buy the product.

(Ogden, p. 8)


Target Market is one particular group of potential cutomers that the organization seeks to satisfy with a product.

Market at which the organization directs a marketing mix.

Different marketing mixes are developed for each target market to satisfy their specific needs and wants (Finch, p. 3)


Product Differentation exists when a product or brand is perceived as different from its competitors on any tangible or intangible characteristics.

It also refers to the strategy in which one firm promotes the features of its product over competitor in the same market.

(Finch, p. 2)


Product Positioning: It refers to the decisions involved in shaping the product’s image in the customer’s mind. These images are defined relative to competing products.

Consumer perceptions are the critical issues, not the actual differences btw products!!!

(Finch, p. 3)


.....Product Positioning

Once you have identified target markets and have established marketing objectives and strategies, you must develop market positioning for your product.


....Product Positioning

By that you create an image in the minds of the target market, establishing the desired perception of product relative to the competition (Hiebing, Cooper, p. 121)


Positioning Approaches:

1) Attributes: a product or trait characteristic that sets the product apart form its competitors

2) Competitors: contrasting a particular brand relative to a competing brand

3) Use-or application: positioning based on an application or particular use


Positioning Approaches4) Price-quality: Using price- quality to set a

product apart from its competitors5) Product user: distinguishing a product form its

competitors based on who uses it6) Product sales: identifying a particular product by

the product class within which it wishes to compete

7) Cultural symbol: identifying a product with a well-known cultural symbol.

(Clow and Baack, p. 129)


Marketing Plan

It is the organization’s statement of marketing strategy and the activities required to carry out the strategy.

It identifies target markets and provide general guidelines for developing the marketing mix.

(Finch, p. 3)


...Marketing Plan1) Situation Analysis: identification of

company’s strengths and weaknesses as well as the opportunities and threats posed by the marketing environment.

2) Marketing Objectives: Based on Situation Analysis, MO for specific products or markets are established.

(Finch, p. 3)


Marketing Objectives specify the goals of the firm.

Both qualitative (market leadership, corporate image) and

Quantitative (sales, profit, market share)

MO reflect the role of marketing in achieving company-wide objectives (Finch, p. 3)

10 STEPS TO MARKETING 10 STEPS TO MARKETING PLANNINGPLANNING

Step 1 BUSINESS REVIEWCompany and Product ReviewTarget Market AnalysisSales and Market Share AnalysisProduct Awareness and AttributesPurchase Rates and Buying HabitsDistribution- PenetrationPricingComparative Competitive AnalysisDemand Analysis


Step 2 PROBLEMS OPPORTUNITIES

Step 3 SALES OBJECTIVES

Step 4 TARGET MARKET

Step 5 MARKETING OBJECTIVES AND STRATEGIES

Step 6 POSITIONING


Step 7 MARKETING MIX IMPLEMENTATION TOOLSProduct/ServiceBrandingPackagingPricingDistributionPersonal SellingPromotionAdvertising MessageAdvertising MediaMerchandisingPublicity


Step 8 MARKETING PLAN BUDGET AND CALENDAR

Step 9 EXECUTION

Step 10 EVALUATION

(Hiebing, Cooper, 1992)

MARKETING COMMUNICATIONS MARKETING COMMUNICATIONS PROCESSPROCESS

Schramm (1960)Sender is the originator of the message. Agents,

consultants. SOURCE OF COMMUNICATIONMessage:actual information and impressions that the

sender wishes to communicate. CONTENT OF COMMUNICATION

Media are vehicles or channels used to communicate the message without which there can be no communication. Media can take many different forms. CARRIER FOR MC

Receiver who receives the message(Pickton and Broderick, p. 13)

....MARKETING ....MARKETING COMMUNICATIONS PROCESSCOMMUNICATIONS PROCESS

Foundation of our understanding of MC

Schramm (1960)Sender: Who?Message:Says what?Media: By which means?Receiver: To whom with what effect

(Pickton and Broderick, p. 13)


One-way communications: Communications from a sender to a receiver with no feedback and dialogue.

Two-way asymmetric communications: Communications from a sender to a receiver with little or delayed feedback, producing a non-direct dialogue.

Two-way symmetric communications: Direct dialogue btw a sender and receiver of communications.

(Pickton and Broderick, p. 14-15)


MCP is description of principal elements involved in the process of communication btw sender and receiver.

Encoding Decoding Noise Interference Feedback


SOURCE CHARACTERISTICSSOURCE CHARACTERISTICS

1) CREDIBILITY

2) ATTRACTIVENESS

3) POWER

SENDER CREDIBILITYSENDER CREDIBILITY

The degree to which communications are believedIt has 3 components1) Attractiveness (similarity, aspired similarity,

familiarity2) trustworthiness3) expertise



Environmental AnalysisIt is always dynamic and changing

1)Macroenvironmental factors. Both internal and external factors. (Old way is more external.)

2)Microenvironmental factors. It is immediate environment and surroundings in which MC occurs


Macroenvironmental factors

1) Demographics

2) Economic conditions

3) Competition

4) Social and cultural factors

5) Political and legal factors (government)

6) Technological factors (Finch, 4)


Macroenvironmental factors changes affecting MC

1) Computer technology

2) Communications technology

3) Fragmentation of media

4) Social change (demographics, lifestyles, attitudes, values, spending,expectations)



Macroenvironmental factors changes affecting MC5) Changing roles and expectations of marketing6) Manufacturing technology system7) Changing national and international economies8) International competition and markets- global

brands9) MC production technology10) MC industry regulations



Microenvironmental factors are external forces which impact each specific company uniquely. These forces are largely uncontrollable, but an organization can influence these factors to a specific degree.


Microenvironmental factors

1) Suppliers

2) Marketing intermediaries

3) Target market

UNDERSTANDING UNDERSTANDING MACROENVIRONMENTMACROENVIRONMENT

PRESTCOM extended environmental and organisational analysis framework

SWOT organisational analysis framework

PEST environmental analysis


CHANGING ROLE AND CHANGING ROLE AND EXPECTATIONS OF MARKETINGEXPECTATIONS OF MARKETING

Relationship marketing

Loyalty marketing

Database marketing

Push strategy

Pull strategy


MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS

Advertising, promotion, corporate communications????

‘All the promotional elements of the marketing mix which involve the communications btw. an organization and its target audiences on all matters that affect marketing performance’ (Pickton, Broderick, p. 3)

...MARKETING ...MARKETING COMMUNICATIONSCOMMUNICATIONS

‘Communication with target audiences on all matters that affect marketing and business performance. Involves the management of marketing communication mix.’

(Pickton, Broderick, p. 3)

...MARKETING ...MARKETING COMMUNICATIONSCOMMUNICATIONS

Target market/target audienceFor marketing to be successful many people have to be involved in the communication process both within the organization and outside it.

Therefore: target audience: ‘those individuals or groups who are identified as having a direct or indirect effect on business performance and are selected to receive marketing communications’


TARGET MARKET- TARGET TARGET MARKET- TARGET AUDIENCEAUDIENCE

Target markets describe customers, people who buy goods and services. They also describe consumers who use or consume goods/services.Publics term preffered by PR people.‘Referring to the many target audiences that communications may be focused towards.’SegmentGroup of individuals who are expected to respond in a similar way to an organisation’s marketing activity.


...MARKETING ...MARKETING COMMUNICATIONS OR...COMMUNICATIONS OR...

Promotions mix, promotional mix Definition of marketing communications mix: the range of activities/tools available to an organisation to communicate with its target audiences on all matters that affect business performance.

Marketing communications is wider than promotionsPromotion is a short term for sales promotion Popular

(Pickton, Broderick, p.4)

...THE MARKETING MIX...THE MARKETING MIX

Marketing Communications Advertising

Marketing mix: ‘range of marketing activities/tools that an

organization combines and implements to generate a response from the target audience’

4Ps1) Product2) Place3) Price4) Promotion(Pickton, Broderick, p.4)


Wayne deLozier (1976) was one of the first authors to strongly feature the role played by all the elements in the marketing mix in MC process

(Pickton, Broderick, p.207)


Product both physical and in packaging termsPhysical: size color, material, shape type of

packagingPlace refers to the channels of distributionStore image, atmosphere, location, layout point of

sale displaysChannel strategy intensive, selective, exclusive (p. 207)PricePromotion

CORPORATE COMMUNICATIONS VS CORPORATE COMMUNICATIONS VS MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS

Generic term is corporate communications of which MC is a part

1) Management Communication

2) Organizational Communication

3) Marketing Communications (van Riel 1995)


INTEGRATED MARKETING INTEGRATED MARKETING COMMUNICATIONSCOMMUNICATIONS

IMC – put the customer in the center of marketing activities

Integration of promotional mix elements so they work in harmony or synergy with each other.

Synergy: the effect of bringing together MC elements in a mutually supportive or enhancing way so the resulting whole is greater than the sum of its parts.


INTEGRATED MARKETING INTEGRATED MARKETING COMMUNICATIONSCOMMUNICATIONS

You may use more than one creative message or image, but they should be consistent


FEATURES OF INTEGRATED FEATURES OF INTEGRATED MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS

1) Clearly identified marketing communications objectives which are consistent with other organsiationla objectives

2) Planned approach which covers the full extent of marketing communication activities in a coherent and synergistic way

3) Range of target audiences4) Management of all forms of contact5) Effective management and integration of all promotional activities and

people involved6) Incorporate all product/brand and corporate marketing communications

efforts7) Range of promotional tools: including personal and nonpersonal tools 8) Range of messages :Single consistent strategy, but not always a single

standardised message.9) Range of media: any vehicle not just mass media


BARRIERS TO IMCBARRIERS TO IMC

1) Mindset2) Taxonomy and language3) Structure of organisations4) Elitism5) Magnitude of task6) Adequacy of budgets7) Manager ability8) Agency remuneration system9) Dimensions of integration


ORGANISATIONAL BARRIERS TO ORGANISATIONAL BARRIERS TO IMCIMC

1) Lack of horizontal communication2) Functional specialisation3) Decentralization4) Lack of corpoarte direction and communication5) Lack of IMC planning and expertise6) Lack of budget7) Lack of database8) Fear of change


STRUCTURES OF IMCSTRUCTURES OF IMC

1) Anarchic structure2) Client-centered integration structure3) Federal integration structure4) Agency centered integration structure5) Centeralised client and lead agency structure


BUYER BEHAVIORBUYER BEHAVIOR

The creation of an appropriate marketing mix for a specific target market requires an understanding of consumer prefernces and decision-making processes. Marketers also need to be aware of how they can influence consumers’ decision-making thr. the use of marketing mix variables. (Finch, 16)

....BUYER BEHAVIOR....BUYER BEHAVIOR

Involvement refers to the importance of which consumers attach the purchase of a particular product.

There are several factors which may influence level of involvement in a purchase situation.

- High-Involvement Decision Making

- Low-Involvement Decision Making

....BUYER BEHAVIOR....BUYER BEHAVIOR

High-Involvement Decision Making

1) Personally important product

2) Relatively expensive or high price

3) Lacks relevant information about the product

4) Risks associated with making a bad decision are high.

5) The product offers potentially great benefits to the buyer

(Finch, 17)

.....BUYER BEHAVIOR.....BUYER BEHAVIOR

Low-Involvement Decision Making is characteristics of frequently purchased, low-priced goods

FACTORS INFLUENCING FACTORS INFLUENCING BEHAVIORBEHAVIOR

1) Cultural

2) Social

3) Personal

4) Psychological


1) Cultural

- Culture,

- Subculture,

- Social class


2) Social Factors

- Reference groups: primary groups, secondary groups, aspiratinal groups

- Family

- Roles and Status


3) Personal Factors

- Age and life cycle stage

- Occupation

- Economic situation

- Life Style

- Personality and self concept


4) Psychological Factors

- Motivation (Freud, Maslow)

- Perception: selective exposure, selective distortion, selective retention.

- Learning

- Beliefs and attitudes

THEORIES AND MODELS OF BUYER THEORIES AND MODELS OF BUYER BEHAVIORBEHAVIOR

Buyer-decision making

• Cognitive perspective

• Behavioral perspective


....THEORIES AND MODELS OF ....THEORIES AND MODELS OF BUYER BEHAVIORBUYER BEHAVIOR

TOTAL SET

AWARENESS SET

EVOKED SET


COGNITIVE MODELSCOGNITIVE MODELS

1) Problem definition2) Information search3) Evaluation of alternatives4) Purchase5) Post-purchase behavior


BEHAVIOURAL PARADIGMBEHAVIOURAL PARADIGM

What is going in the mind is not achievable. The behaviorist approach suggest that stimuli are predominantly in the environment.

MC activities should be focused on creating the correct environmental cues for the individual and on monitoring the responses to the guide to the future activity (benefits to be gained from the product)


HOW INDIVIDUALS PROCESS HOW INDIVIDUALS PROCESS INFORMATION FROM THE INFORMATION FROM THE

ENVIRONMENT?ENVIRONMENT?

The interpretation of the encoded messages is dependent upon a range of factors which may lead or may not to an accurate understanding of the messages intended.


ATTENTION- GENERATING DEVICES IN ATTENTION- GENERATING DEVICES IN MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS

• Movement• Needs• Novelty• Position• Sex• Size• Celebrities

• Animals• Babies• Color• Contrast• Design• Fear• Humour• Intensity


ADAPTION/AD-WEAROUTADAPTION/AD-WEAROUT

• Adaption: Doubling the number of messages do not double the number of messages attended to.

• Ad-wearout: The impact of advertisement (or any other MC) declines when it is repeated.

DENOTATIVE-CONNOTATIVE DENOTATIVE-CONNOTATIVE MEANINGMEANING

• Denotative meaning: A meaning same for everybody

• Connotative meaning: A meaning that is not shared

EG: Strand cigarettes

‘You are never alone with a Strand’

THE INFLUENCES ON THE INFLUENCES ON DECISION-MAKINGDECISION-MAKING

Personal Influences Social Influences• Demographic Reference group• Situational Culture/subculture• Involvement

Psychological Influences• Perception• Ability, knowledge and experience• Personality• Attitudes

BUYER- DECISION PROCESS BUYER- DECISION PROCESS FOR NEW PRODUCTSFOR NEW PRODUCTS

5 Stages in adopting a new product

1) Awareness

2) Interest

3) Evaluation

4) Trial

5) Adoption

(p. 172)

INDIVIDUAL DIFFERENCES IN INDIVIDUAL DIFFERENCES IN INNOVATIVENESSINNOVATIVENESS

Innovators: they are risk takers and tale the lead with the new products and experiences

Early adoptersEarly majorityLate majorityLaggards: conservative

Refer to: adopting products at different stages in life cycles.

p. 268 and p. 173

ORGANIZATIONAL MARKETS ORGANIZATIONAL MARKETS AND BUYER BEHAVIORAND BUYER BEHAVIOR

1) Industrial markets2) Reseller markets3) Government markets

Characteristics- Have fewer or larger buyers- More geographically concentrated. p. 200

MARKETING RESEARCHMARKETING RESEARCH

• Marketing Informations Systems

• Marketing Research Process

• Research Design and Data Collection

MARKETING RESEARCHMARKETING RESEARCH

• Marketing Information System (MIS)

MIS are the methods and procedures used to collect, analyze, store and distribute marketing data and information on a systematic basis.

....MARKETING RESEARCH....MARKETING RESEARCH

Marketing Research Process

1) Identify new opportunities

2) Explore or define problems confronting the firm

3) Evaluate and refine marketing mix

4) Study buyer behaviour


Procedure to conduct Market Research

1) Problem definition

2) Situation analysis

(primary data/secondary data)

3) Coding

4) Recommendations


• Research Design and Data Collection1) Sampling2) Primary vs secondary data3) Survey research4) Focus group 5) Observation6) Experimental research7) Simulation


• Primary vs Secondary Research

Primary research gathers data at first hand.

Secondary data is any information not gathered for the immediate study at hand, but already collected for some other purpose.

p. 350


Characteristics

Fits firm’s needs

Cost of acquiring

Speed in collecting

Most recent information possible

Multiple sources

Secrecy from competitors

Primary/Secondary

Yes/ Seldom

Expensive/Low cost

Slow/Quick

Yes/ No

No/Often

Yes/No


Characteristics In person Mail PhoneResponse Rate High Low HighCost Highest Low HighInterviewer bias Yes None YesInteractive Yes No YesResp will to spendtime Yes No NoSpeed of data col. Fast Slow FastestAnonymity of res. Lowest High Low


• Qualitative Research

Qualitative research is used to uncover concepts the why of a subject.

Quantitative research is used to measure variables and their relationships-the how many question

p. 352


Market research is the means of providing accurate, impartial information to marketing decision makers and is necessary for the develepment and evaluation of marketing communications.

P. 361

TARGET MARKETSTARGET MARKETS

• Market Characteristics- Who exactly are the consumers most likely to become

users of a brand- Where are they located?- How they can be reached most efficently with MC tools?- When is the best time in the consumer’s life to apply the

tools?

• Demographics• Behavioral Dimensions• Market Segmentation

TARGET MARKETSTARGET MARKETS

• Market Characteristics: To achieve the greatest benefit and competitive advanatge form target marketing, it is essential that the characteristics used to identify each market is measurable. Finch, 14)

1) Demographics

2) Behavioral Dimensions

.....TARGET MARKETS.....TARGET MARKETS

• Market Segmentation

The process of dividing a market into homogeneous segments using one or a range of alternative segmentation methods, each segment being composed of customers or consumers sharing similar characteristics.

p. 384

.....TARGET MARKETS.....TARGET MARKETS

• Market Segmentation1) To define the market and find segments with it2) To select the most profitable segments that

can be served the most effectively and efficiently by the company’s resources (targeting)

3) To communicate to that segment to appeal to their specific wants and needs better than competitors (positioning)

(p. 384)

CHARACTERISTICS OF MARKET CHARACTERISTICS OF MARKET SEGMENTSSEGMENTS

1) Measurable

2) Accessible or reachable through existing channels which are advertising media, channels of distribution or sales force

3) Each segment must be large enough to be profitable. (factors affecting profitability nature of industry, size of the firm, pricing structure)

(Finch, p. 15)

SEGMENTS AS TARGET SEGMENTS AS TARGET MARKETSMARKETS

1) Single segment or concentration strategy

2) Multiple segmentation strategy-differentiated marketing

3) Undifferentiated or mass marketing

(Finch, p. 16)

PRODUCT PLANNING AND PRODUCT PLANNING AND MANAGEMENTMANAGEMENT

Product Classification: May be goods or services

Consumer/industrial- business goodsTargeted toward individuals and household

for final consumption/Typically purchased for resale, operational needs or for use in further production

Consumer Goods:Convenience/ shopping/speciality goods

...PRODUCT PLANNING AND ...PRODUCT PLANNING AND MANAGEMENTMANAGEMENT

Services: consumer/industrial depending on the customers served

Characteristics

1) Often intangible

2) Usually perishable

3) Frequently inseparable form the individuals who provide it

.....PRODUCT CONCEPTS.....PRODUCT CONCEPTS

Tangible product consists of features which can be precisely specified

Extended or Augmented product includes both the tangible and intangible elments of a product

Product Line: Consists of a group or set of closely related items.

Product Mix: A firm’s product mix is comprised of all the product lines that it offers.

.....NEW PRODUCT PLANNING.....NEW PRODUCT PLANNING

New Product Opportunites

1) Imitative or me too products

2) Modifications of existing products

3) Minor innovations

4) Major innovations

.....NEW PRODUCT PLANNING.....NEW PRODUCT PLANNING

1) Idea generation

2) Product screening and Concept testing

3) Business analysis and Product development

4) Test marketing and commercialization

.....PRODUCT ADOPTION AND .....PRODUCT ADOPTION AND DIFFUSION DIFFUSION

Product Adoption process describes the stages which consumers go through learning about the new products

It starts with the prospect’s initial awareness of the product. If interested, he/she will evaluate the perceived merits of the product and develop an opinion toward trying the product. P.A. takes place when the buyer decides to use the product regularly.

.....PRODUCT ADOPTION AND .....PRODUCT ADOPTION AND DIFFUSION DIFFUSION

Product Diffusion Process describes the typical rate of adoption exhibited by consumers in response to new products

1) Innovators

2) Early Adopters

3) Early Majority

4) Late Majority

5) Laggards

.....PRODUCT LIFE CYCLE.....PRODUCT LIFE CYCLE

It describes a pattern of changes which is characteristics of most products from their inception to their departure from the market.

1) Introduction

2) Growth

3) Maturity

4) Decline

.....PRODUCT PLANNING AND .....PRODUCT PLANNING AND MANAGEMENTMANAGEMENT

Family brand when the same brand is applied to several products

Individual Brand can be assigned each product when there exists significant variation in product type and quality

Generic products: have no brand name at allLicensed Brand is a well established brand name

which other seller pay to use.Trademarks are brand names, marks or characters

used to identify products (p. 32)

BRAND MANAGEMENTBRAND MANAGEMENT

Branding is the strategy to differentiate products and companies and to build eceonomic value for both the conusmer and the brand owner

Brand: the totality of what the consumer takes into account before making a purchase decision

Growth of branding after the Civil War in USA with thegrowth of national firms and intl. Advertising

RanchRomans and Greeks

The aim of branding is to create impressions that diffrentiate products and companies by saying that one is notr just different from the rest, but in some respect better than the rest (Pickton and Broderick, p. 23)

Brand Equity

Brand Name

BRANDING STRATEGIESBRANDING STRATEGIES

A brand can identify one item, a family of items or the seller1) Corporate umbrella branding: the organisation and all

its products are branded under the same corporate name

2) Family umbrella branding: the organization has a corporate brand and a separate brand for its products

3) Range branding: a number of related products are grouped together under one bradn name

4) Individual branding: Each product is branded separately

Trend? (Pickton and Broderick, p. 24)

SEVERAL DEFINITIONSSEVERAL DEFINITIONS

Corporate Personality: It is the soul, the persona, the spirit, the culture of the organisation manifested in some way.(Olins, 1990)

Relatively enduring but...

Mission statements

Corporate personality is the raw material of the corporate identity.



Corporate Identity is the means by which CP is projected, transmitted or communicated

Outward signs: clothes and mannerism of the organisation

CI is the basis on which the organisation is known and understood

Deliberate/planned, intentional/unintentional, managed well or badly



Corporate Image is the impression created by the corporate identity. Perception held by the organisation by its audiences.

Identity is the sum of all the ways a company chooses to identify itself to all its publics. Image is the perception of the company by its publics. (Marguilles, 1977).

CI is what is felt and thought about an organisation.

Q: Is corporate image a single entity?


COMPONENTS OF BRANDCOMPONENTS OF BRAND

Brand nameBrand logoBrand identity manual

Golden Arch???


CHARACTERISTICS OF GOOD CHARACTERISTICS OF GOOD BRAND NAMESBRAND NAMES

1) Suggest sth. about the product’s benefits2) Short and simple3) Easy to spell, read and pronounce4) Pleasant sounding5) Distinctive and memorable6) Appropriate to new products which may be added to

the line at a later date7) Legally available for use

(p. 31)

BRAND EQUITY-VALUEBRAND EQUITY-VALUE

Brand Equity is the value of the brand’s name, symbols, associations and reputation to all target audiences who interact with it. The value of company’s names and symbols

Brand value: The financial expression of brand equity.

Key components that create brand equity are brand description, brand strength and brand future


MANAGING BRAND EQUITYMANAGING BRAND EQUITY

1) Brand description: This is what the bradn represents depending on the associations, values, and beliefs the costomer has about the brand.It includes brand’s distinctiveness, perceived quality and the esteem with wihich it is held in the eyes of the consumer



Brand associations: Through the process of associations, brands have value. In many prodcut categories, there is little tangible differentiation. Task of the marketing communicator is to create a sense of difference, a sense of value and a competitive advantage.

When customers have good associations with the brand, the brand is likley to be purchased higher.



Brand associations: Eg.Nike- athletic shoes- durable- Michael Jordan- comfort- the swoosh symbol



Brand values• Functional appeal: Brand’s specific attributes or benefits capable

of solving consumer’s current consumption-related problems• Symbolic appeal:Consumers’ desire for self-enhancement, group

membership, affiliation and belongingness• Experiential appeal: the brand’s appeals to the consumers’ desire

for sensory pleasure, variety and cognitive stimulation



2) Brand StrengthThe prominence and relative dominance of brand. Levels of

awareness, brand history and loyalty are important elements within this context.



2) Brand StrengthGenerating awareness is the 1st step in any communication campaign.

Awareness has to be created before interest, desire and action are created.

Brand heritage is the corporate experience and reputation that a brand has acquired over time including its orgins and advertising development

Brand loyalty: Core component of brand loyalty is the customer’s willingness to repeat purchase.

Handout 2.12 Loyalty ladder



3) Brand FutureThis reflects a brand’s ability to survive future changes in

legislation, technology, retail structure, and conusmer patterns. It also indicates grwoth potential eg niche to mainstream or local to global


BRAND PARITYBRAND PARITY

Occurs when there is perception that most products and services are essentially the same.

(Clow and Baack p. 25)

BRAND MANAGEMENTBRAND MANAGEMENT

Brand Management A group of core and peripheral brand values must be

identified. An understanding of the distinct capabilities that distinguish the brand from competition is necessary to ensure effective positioning

Brand values have to be effectively and efficiently be communicated to the target audience

To manage the brand values over time.(Pickton and Broderick, p. 41)

Brand Familiarity exist on five levels

BRAND FAMILIARITYBRAND FAMILIARITY

1) Brand insistance

2) Brand preference

3) Brand recognition

4) Brand non-recognition

5) Brand rejection

PACKAGINGPACKAGING

Packaging serves valuable functions for both buyers and sellers

Functions

1)Protection

2)Promotion

3)Information

...PACKAGING...PACKAGING

The ‘clothing’ the product appears in.

3 major aspects of the visual impact of packaging

1) Attractiveness

2) Recognition

3) Differentiation

...PACKAGING FEATURES...PACKAGING FEATURES

ColourTypographyLogoType/materialShape and structureLabel or markSize (Pickton and Broderick, p. 602)

PRICINGPRICING

Price Skimming is a strategy which introduces new products at high prices.

Penetration Pricing uses low introductory prices to gain a large share of market more quickly. (This is more appropriate for new products which are similar to competing brands.

p. 59

...PRICING...PRICING

Influence of price:High prices relative to competing products convey

impressions of qualityLow prices can convey cheapness and poor qualityThe value of offering sales and the use of psychological

pricing.

p. 208

....PRICING....PRICING

Pricing DecisionsCost-based pricingDemand-based pricingCompetition-based pricingOne-pace pricingGeographic PricingUnit pricing

....PRICING....PRICING

Psychological Pricing

Prestige pricing

Odd-even pricing

Price-lining

Leader Pricing

DISTRIBUTIONDISTRIBUTION

Companies choosing to distribute their goods and services directly to end customers and users face a very different communications task than those who operate thr. intermediaries such as agents, wholesalers and retailers.

....DISTRIBUTION....DISTRIBUTION

The longer the distribution chain becomes and the greater the number of distribution systems used, the more challenging the MC effort becomes

( Pickton, Broderick, p. 284)

....DISTRIBUTION....DISTRIBUTION

Push Strategy: Utilizes promotional efforts to secure the cooperation of intermediaries. Sales promotion, persoanl selling and advertising are directed twds persuading intermediaries

Pull Strategy: Generates consumer demand for the product as a means of securing support within the channel. Promotional efforts are targeted to the final consumer.(more appropriate for new products)

(p. 37)

INFLUENCES ON CONSUMER INFLUENCES ON CONSUMER PERCEPTIONPERCEPTION

PRODUCT: quality, styling, packaging design, brand name, guarantees and other features

PRICE: discount pricing, extended credit, list price, payment period

PROMOTION: advertising, personal selling, sales promotion, and PR

PLACE: distribution channels/coverage and geaographic location


PROMOTIONAL STRATEGYPROMOTIONAL STRATEGY

• Promotion Planning• Budget• Advertising• Publicity and Public Relations• MPR (Marketing PR)• Personal Selling• Sales Promotion, merchandising and point of sale• Sponsorhip, Event Marketing• New Media• Direct marketing• Cause- Related Marketing• Product Placement• Ambush Marketing• Exhibitions and Trade Shows

PROMOTIONAL STRATEGYPROMOTIONAL STRATEGY

Promotion Planning. It means that the firm identifies the most appropriate Promotion Mix, Objectives and Budget

Promotion Mix is comprised of those elements which contribute to the firm’s overall communications program

Promotion Objectives: May addres three goals within the marketing mix. INFORM/PERSUADE/REMIND

BUDGETBUDGET

Percentage of sales methodPercentage of profit methodObjective and task methodCompetitive match or follow up the leader

modelAll you can afford modelSWAG Methodp. 40

MC MEDIAMC MEDIA

MC media are all forms of media that can transmit marketing communication messages whether focused at a mass audience or at an individual

The selection of right media is fundemental and vital to the success of MCA task of media planners is to reach the right audiences with the minimum

wastage but with maximum effect.Internet no geographical boundaries global sclae low costPackaging has MC impactWord of mouth is the process by which messages are communicated verbally

form one perosn to the other. Anybody talkin about an organisation or its product is enagaging in WOM

p. 205

CHARACTERISTICS OF MEDIACHARACTERISTICS OF MEDIA

Reaching a mass marketReaching a highly defined nicheCreating awarenessAttracting and holding attentionCreating impactDeveloping a strong imageSuitability for enhancing the brandEncouraging direct action Enhancing credibility and prestigeConveying detailed informationUse as a reference sourceAppealing to many sensesCreate associations with certain valuesCreating favourable trade reaction being flexible in its us as a marketing communication media vehicleSuitability as a primary mediumAvailabilityLongevityp. 208

ADVERTISINGADVERTISING

AdvertisingThe use of mass media by an identified

sponsor to deliver communciations to target audiences.

(Pickton and Broderick, p. 76)Dev. or execution of any reminder,

infromational or persuasive messages communicated to a targeted market thr a nonpersonal medium. Ogdan, p. 27

.....ADVERTISING PLAN.....ADVERTISING PLAN

Advertising Objectives are determined by the marketing strategy for the product or firm. These objectives:

1) New product intro_ build brand awareness2) Establish brand preference 3) Create and maintain brand loyalty4) Market development5) Build primary demand- industry sales6) Increase product uses7) Support the firm’s salesforce8) Enhance the firm’s image. (Finch, p. 48)

p. 330

.....ADVERTISING.....ADVERTISING

Must be dynamic

Should develop from a stratetic point of view

Creative

Integrated

Must be persuasive and informative

(Ogden, p. 59)

.....ADVERTISING.....ADVERTISING

Media planning

- Choice of media type

- Selection of vehicles within each medium

Reach/frequency

PUBLICITY AND PRPUBLICITY AND PR

Publicity utilizes the mass media. It is free but it must be directed. Publicity is unpaid and therefore does not have control over the content.

It is a subfunction of PR

(Ogden, p. 28)

..... PUBLIC RELATIONS..... PUBLIC RELATIONS

Public Relations is the planned and sustained effort to establish and maintain goodwill and mutual understanding btw an organziation and its publics


..... PUBLIC RELATIONS..... PUBLIC RELATIONS

Public Relations functions:

1) Monitor internal and external publics

2) Provide positive information to each public

3) React quickly to any shift by any of the publics from the desired position


PUBLIC RELATIONSPUBLIC RELATIONS

Corporate PR vs Marketing PRScope of work1) Reputation management2) Lobbying3) Special events4) Speech writing5) Publication development

(Ogden, p. 146)

PUBLIC RELATIONS TOOLSPUBLIC RELATIONS TOOLS

Corporate newslettersInternal communicationsMedia news releasesStockholder correspondanceAnnual reportsSpecial eventsCollaboration with internal publics


MARKETING PUBLIC RELATIONSMARKETING PUBLIC RELATIONS

MPR is the process of planning, executing and evaluating programs that encourage purchase and consumer satisfaction thr. Credible communication of information and impressions that identify companies and their products with the needs, wants, concerns and interest of consumers

(Harris, 1991 p. 12)

SCOPE OF MARKETING PUBLIC SCOPE OF MARKETING PUBLIC RELATIONSRELATIONS

MPR plannig and managementMedia relationsPublicityPublicationsCorporate communicationsPublci affairs and community relationsLobbyingSponsorship/donationsEvents managementCrisis managementResearch and analyis(Pickton and Broderick, p. 493)

MARKETING/MPR/CPRMARKETING/MPR/CPRFunctional ResponsabilitiesFunctional Responsabilities

Marketing MPR CPRMarket assess. Product pub. C. media

rel.Segmentation Sponsorships Investor rls.Product dev. Special events Gvn rel.Pricing Public service

Community rel.Distribution Publications Employee com.Service Media events Public

affairsConsumer adv Media tours Advocacy adv.Sales promotion Trade supportSales

(Harris, 1991 p. 38)

MPR TACTICSMPR TACTICS

AwardsBooksContest, competion and created eventsChotchkesDemonstrationsExhibitsFan clubs

(Harris, 1991, p. 80-81)

....MPR TACTICS....MPR TACTICS

FestivalsGrand openingsHotlinesInterviewsJunketsKey issues

(Harris, 1991, p. 82)


LuncheonsMeetingsMuseumsNewslettersOfficial endorsementProduct placement

(Harris, 1991, p. 83)


Public service announcementQuestionnairesRadio- trade for mention contestsRoad showsSampling of products SymbolsToursThonsVehicles

(Harris, 1991, p. 84, 87, 88, 89)


VNRs

Weeks

Expert columns

Youth programs

Zone programs

(Harris, 1991, p.91)

....MPR OBJECTIVES....MPR OBJECTIVES

Reinforce advertising and promotion

Win consumer trust

Create new news about old products

Celebrate special occasions

Defend products at risk

(Harris, 1991)

.....PERSONAL SELLING.....PERSONAL SELLING

Personal Selling is utilized to generate the benefits of one-to-one communication. Dialogue so advantage of persuasion.

Respond directly to needs and feedback

(most expensive method per contact)

(Ogden, p. 27)


Seling process is a sequence of stages which are essential to effective personal selling

1) Prospecting2) Pre-approach3) Approach4) Presentation5) Meeting objections6) Closing the sale7) Follow-up(p. 52)


Forms

1) Trade selling

2) Missionary selling

3) New business selling

4) Retail selling

5) Telemarketing

(Ogden, p. 134)


1) Hard Selling

2) Soft Selling

3) Consultative Selling

(Ogden, p. 134)

SALES PROMOTIONSALES PROMOTION

Sales Promotion is associated with free offers, price deals, premium offers, and other promotions including merchandising, point-of sale displays, leaflets and product literature. Excludes adv, PR and personal selling


Consumer-directedIntermediary-directed

GROWTH OF SALES GROWTH OF SALES PROMOTIONPROMOTION

1) Changing locus of control from manufacturers to retailers.

2) Customers’ demand3) Emphasis on short term results4) Increased brand parity and price sensivity (more

affcted by small changes in price)5) Reduced brand loyalty6) Market fragmentation7) Synergy



Trade Promotion1) Trade allowances2) Cooperative advertising3) Vendor support programs4) Trade contests and incentives5) Point of Purchase materials (POP)6) Training Programs7) Speciality advertising8) Trade shows(Ogden, p. 89)


Consumer Sales Promotion1) Sampling2) Point of Purchase Coupons3) In-pack or on-pack coupons4) Premiums5) Price-off promotions6) Bonus packs7) Refunds or rebates8) Contests and sweepstakes9) Tie-in promotions10) Prodcut warranties or guarantees11) Point of purchase displays

(Ogden, p. 89)

ADVERTISING/SALES PROMOTION/ MPRADVERTISING/SALES PROMOTION/ MPRExclusive functionsExclusive functions

AdvertisingTV commercialsTV program sponsorhipRdai commercialsNwspaper adsMagazine adsCo-op advertisingBusiness and trade press advertisingDirect mailDirect response ads and commercialsOutdoor advertisingTelphone direct adv.Motion picture advertisingCar cards(Harris, 1991 p. 39)

.ADVERTISING/SALES PROMOTION/ MPR.ADVERTISING/SALES PROMOTION/ MPRExclusive functionsExclusive functions

Sales PromotionCouponingGames, sweepstakes, rebatesPatronage awardsPrice packsPrizesPremiums and incentives(Harris, 1991 p. 39)

.ADVERTISING/SALES PROMOTION/ MPR.ADVERTISING/SALES PROMOTION/ MPRExclusive functionsExclusive functions

MPRNews conferenceMedia toursNewspapaer publicityRadio publicityMagazine publicityTelevision publicitySeminars and symposiumsSurveys(Harris, 1991 p. 39)

.ADVERTISING/SALES PROMOTION/ MPR.ADVERTISING/SALES PROMOTION/ MPROverlapping functionsOverlapping functions

Adv SP MPRAdvertorials ........Promotional adv .....Free standing inserts ......In-store media ......POP ......Tie ins ...... ........Contests ....... .......Special events ....... .........Booklets and brochure ....... .........Public service tie-ins ....... ..........

(Harris, 1991 p. 39)

ADVERTISING/SALES PROMOTION/ MPRADVERTISING/SALES PROMOTION/ MPROverlapping functionsOverlapping functions

SP MPRTrade shows and exhibitsSampling DemonstrationsParadesFestivalsSports eventEntertainment sponsorhipAV presentationsMeetings and conventions

(Harris, 1991 p. 39)

NEW MEDIANEW MEDIA

Usually mosty associated with new electronic media such as the Internet, Interactive TV and electronic media

NEW MEDIANEW MEDIA

Cybermarketing term used to describe marketing activities using the new media

Methods used in cybermarketing activities are

1) multimedia, computer animation and virtual reality

2) The Internet and the WWW

3) Digital and interactive television

4) CD-ROM/DVD

p. 223 and p. 118-120

...NEW MEDIA...NEW MEDIA

Cybermarketing benefits1)Saves money and helps stretch the MC budget2) Creates more direct access to customers3) Customers are in conrol of the purchasing power4) Rich information and interactive5) Communication can be on line or off line6) Offers instant reach, local, national or international7)Equal access for business8) Can be continuously available p. 226

...NEW MEDIA...NEW MEDIAMarketing uses of the Internet (Keeler 1995)1) Sending messages2) Transferring files3) Monitoirng news and opinions4) Searching and browsing5) Posting, hosting and presenting informationAnd6) Advertising7) PR and sponsorhip8) Sales promotion9) Direct sales10) Exhibitions11) Marketing Research12) Developing closer links with custoöers and target groups13) Intranet-extranet

p. 232-235

...NEW MEDIA...NEW MEDIA

Pitfall of the net and the web1) Poor targeting capabilities2) Cost3) Incompatible and marketing messages4) Immaturity of the Internet medium5) Conservative nature of customers6) Communications speed7) Search difficulties

p. 236-237

DIRECT MARKETINGDIRECT MARKETING

It is a speciality form of traditional marketing and often fell under advertising.

An interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any time.

...DIRECT MARKETING...DIRECT MARKETING

Objectives

1) Retention of current customers

2) Inducement of product trial

3) Brand switching

4) Increase dsales or usage volumes

5) Sales through direct response

Ogden, p. 105

....DIRECT MARKETING....DIRECT MARKETING

Allows for personalized communication. It can be utilized with many different media or with just one. Various forms

Direct mail

Telemarketing

Direct-selling

Direct- response advertising

(Ogden, p. 29- 107-108)

SPONSORSHIPSPONSORSHIP

When the company pays money to sponsor someone or some group that is participating in an activity

Objectives1) Enhance a company’s image2) Increase a firm’s visibility3) Differentiate a company from its competitors4) Showcase specific gods or services5) Help a firm develop closer relationships with current

and prospective customers.6) Unload excess inventory


GROWTH OF SPONSORSHIPGROWTH OF SPONSORSHIP

1) Concern over traditionla promotional methods

2) Creation of favorable associations3) Overcomes linguistic/cultural barriers4) Wide target audience5) Overcomes legal barriers.6) Selective targeting (Pickton and Broderick, p. 513)

SPONSORSHIPSPONSORSHIP

Sponsorhip is a contribution to an activity by a commercial organzisation in cash or in kind with the expectation of achieving corporate and marketing objectives. (Pickton and Broderick, p. 514)

EVENT MARKETINGEVENT MARKETING

Similar to sponsorship, but it occurs when the company supports a specific event.

(Clow and Baack, p.503)

CAUSE-RELATED MARKETINGCAUSE-RELATED MARKETING

When a firm ties a marketing program into some kind of charity work or program, goodwill can be generated. Most consumers like the idea of businesses supporting worthy causes.


...CAUSE-RELATED MARKETING...CAUSE-RELATED MARKETING

The process of associating an organzisation with worthy causes. Marketing communications benefits are gained by supporting and being seen support worthwile causes. Realising commercial advantages as well.

(Pickton and Broderick, p.522)

...CAUSE-RELATED MARKETING...CAUSE-RELATED MARKETING

Buy a company’s product and it will make a donation on your behalf to some worthy cause. The purchase of a specific item or service transaction results in a contribution. OR label and coupon redemption.

(Harris, 1991 p. 239)

PRODUCT PLACEMENTPRODUCT PLACEMENT

Product placement is the process of arranging for a company’s products to be seen or referred to in the media, such as during television and radio programs, cinema films, video games etc.

It is a kind of a sponsorhip.


AMBUSH MARKETINGAMBUSH MARKETING

Organisation’ intentional effort to weken the effect of another sponsorhip

1) Sponsor emdia coverage

2) Sub- category within an event

3) Sponsor an individual athlete........

(Pickton and Broderick, p. 527 )

EXHIBITIONS AND TRADE EXHIBITIONS AND TRADE SHOWS SHOWS

Less considered areas of MC. Exhibition events birng together buyers and sellers under one roof in a way that is quite unique.

To increase sales either directly on the stand or by follow-up.


....EXHIBITIONS AND TRADE ....EXHIBITIONS AND TRADE SHOWS SHOWS

Selling activities or non-selling related activities more important?

Enhancing corporate image is seen as the most important non-selling roles of exhibitions and trade shows.


MC EVALUATIONMC EVALUATION

Reasons for evaluation

1) Increasing the value and the productivity of the campaign

2) Avoiding mistakes

3) Increasing the effectiveness of strategies and tactics


Reasons for NOT evaluating

1) Cost

2) Objectivity

3) Time

4) Reliability and validity

5) What to test

(Ogden, 164)


OBJECTIVES

To have an effective evaluation you must have objectives that are to be achieved.

METHODS

Many methods are used to evaluate campaign effectiveness.

Think about evaluation prior to the campaign

Timing of the evaluations are important

Eg. Concept testing, copy testing


2 broad categories of evaluation tools:

1) Message evaluations

2) Evaluating respondent behaviors



2 broad categories of evaluation tools:1) Message evaluations: are used to examine the

creative message and the physical design of the advertisement, coupon or direct marketing piece. Actors and ind. in advertsiments and radio.Consider both the cognitive components associated with an ad (recall, recognition) and peripheral cues (emotions, attitudes)



2 broad categories of evaluation tools:

2) Evaluating respondent behaviors

Visible consumer actions including market store visits, inquiries or actual purchases. (measure using numbers)



Several levels when evaluating an advertising program

- short-term outcomes (sales, redemption rates-long-term results (brand awareness, brand loyalty,

brand equity- awareness of the overall company- attractive responses (liking the company and a

positive brand image)


MESSAGE EVALUATION MESSAGE EVALUATION TECHNIQUESTECHNIQUES

1) Concept testing2) Copy testing3) Recall tests4) Recognition tests5) Attitude and opinion tests6) Emotional reaction tests7)Physiological arousal tests8)Persuasion analysis



1) Concept testingAt the initial phase, managers are interested

in the concept of the campaign. A good time for it is after market researh and situational analysis. Primary objective is to check on strategies.

(Ogden, p. 165-166)


Several components of a marketing communications plan can be evaluated with concept tests.

• Copy or verbal component of an adv.• Message and its meaning• Translation of copy in an international ad• Effectiveness of peripheral cues, such as product

placement in the ad • Values associated with an offer or prize in contest

(Clow and Baack, 586)


COPYTESTING

Is used to evaluate the impact of sepecific advertisements. The idea is to get feedback on the effectiveness of the specific ads before they are placed in the media. Called as pretesting.

(Ogden, p. 166)


RECALL TEST

Involves asking the individual to recall what ads he or she reviewed in a given seting or time period.

• Day- after recall (usually unaided recall)

• Aided recall



RECALL TEST- Product name or brand- Firm name- Company location- Theme music- Spokesperson- Tagline- Incentive being offered- Product attributes- Primary selling point of communication piece.



RECOGNITION TESTSInd. Are given copies of an ad and are asked if

they recognize it or have seen it before. Are asked to give additional details if they say they have seen the ad.

How many saw the ad (recognition test)How many saw and who were interested to read or

view the ad (recall test) (Clow and Baack, p. 589)


ATTITUDE AND OPINION TESTS Deal with both cognitive and affcetive reactions of

an ad.Can be used in conjuction witrh recall and

recognition tests.Used to solicit consumer opinions. Opinions are

gathered from surveys and focus groups.Also used for evaluation of sales promotions

devices (Clow and Baack, p. 589)


EMOTIONAL REACTION TESTS

Positive emotions are likely to be remembered. Difficult to measure emotional impacts. One method: ask questions.

Warmth monitor: joystick

They are self-report instruments.

(Clow and Baack, p. 592-593)


PHYSIOLOGICAL AROUSAL TESTS

Measure fluctations in a person’s body functions that are associated with changing emotions. These tests are:

• The psychologalvanometer(perspiration)• A pupillometric test (dilation of a pupil)• Voice-pitch analysis (examines changes in the

pitch of person’s voice

(Clow and Baack, p. 594-595)


PERSUASION ANALYSIS

To appraise the persuasive ability of a marketing communications item.

It requires pretest-post test.



BEHAVIORAL MEASURES

• Sales

• Redemption rates

• Test markets

• Purchase simulation tests


PR EVALUATIONPR EVALUATION

1) Counting clippings

2) Calculating the number of impressions

3) Advertising equivalance technique.

Limitations....

(Clow and Baack, p.604)

EVALUATING THE OVERALL EVALUATING THE OVERALL PROGRAMPROGRAM

1) Market share2) Level of innovation3) Productivity4) Physical and financila sources5) Profitability6) Manger performance and development7) Employee performance and attitudes8) Social responsability

(Source Peter Drucker in Clow and Baack, p.606)

MARKETING APPLICATIONS IN MARKETING APPLICATIONS IN SPECIAL FIELDSSPECIAL FIELDS

• International Marketing

• Nonprofit Marketing

INTERNATIONAL MARKETINGINTERNATIONAL MARKETING

Motivations to internationalise1) Domestic market saturation, making it more

expensive to gain market share2) Limits placed on domestic growth in the home

country by public policy limiting further growth in market share of an organisation

3) Identification of growth or niche opportunities in the international marketplace

4) Recognition of higher profits in the international marketplace bcs of differences in competitive and/or cost structure

....INTERNATIONAL MARKETING....INTERNATIONAL MARKETING

5) Risk distribution across the international marketplace so that the organisation is not as susceptible to national economic cycles

6) Opportunities of buying power consolidation within the organisation thr.joint-buying agreements

INTERNATIONAL DIMENSIONS INTERNATIONAL DIMENSIONS OF MC ENVIRONMENTOF MC ENVIRONMENT

Examples Coke

TV ownership, Internet access

Culture: time

Sub- culture

Ethnocentrism and xenophilia

STANDARDISATION VS STANDARDISATION VS ADAPTATIONADAPTATION

Standardization strategy: the use of similar or identical marketing communications across countries

Adaptation strategy: MC messages and media are changed from country to country to better suit the individual requirements of individual markets

p. 127

STANDARDISATION VS STANDARDISATION VS ADAPTATIONADAPTATION

4 Key Strategies

1) Global strategy is based on cultural similarities instead of differences. It is adopted if there is a high degree of homogenity both within a culture and btw cultures

2) Global niche startegy: Based on identification of a similar group og groups across countries UK students to be more similar to students in Greece, France...

....STANDARDISATION VS ....STANDARDISATION VS ADAPTATIONADAPTATION

3) A multinational strategy: Strategy recognising cultural diversity to develop MC adapted to suit different cultures

4) Customisation strategy: Recognises the differences in consumers both within and btw cultures and therefore communicates on in individualised basis

IMPACT OF INTERNATIONAL IMPACT OF INTERNATIONAL CONTEXT ON MCCONTEXT ON MC

1) Symbols eg. color

2) Language- high-text communications/low text communications

3) Cultural Values Hoftede (1980)

Cultural Values Hoftede (1980)Cultural Values Hoftede (1980)

1) Power distance

2) Uncertainity avoidance

3) Femininity/masculinity

4) Individualism/collectivism

NONPROFIT MARKETINGNONPROFIT MARKETING

Marketing principles and practices are applied within a range of nonprofit organizations.

Nonprofit marketing include the marketing of

1) Persons

2) Ideas

3) Organizations

REGULATION AND ETHICSREGULATION AND ETHICS

There can be extreme difficulty in determining what is and what is not ethical especially when the notion of social acceptability changes over time and varies from one culture or country to another.

Perfectly acceptable MC in one country would ve banned another.

p. 143

REGULATION AND ETHICSREGULATION AND ETHICS

Regulation fall into two

1) Legal

2) Self regulation (in UK more)

REFERENCESREFERENCES

Clow, K. E. and Baack, D. (2002). Integrated Advertising, Promotion and Marketing Communications New Jersey: Prentice Hall.

Dommermuth, W.P. (1989) Promotion, 2nd ed. Boston: PWS- Kent Publishing Company

Finch, J. E. (1992). The Essentials of Marketing Principles. Research and Education Association.

Harris, T. L. (1991) The Marketer’s Guide to Public Relations New York: John Wiley and Sons.

...REFERENCES...REFERENCES

Hiebing, R. G. And Cooper, W. S. (1992) The 1-Day Marketing Plan. Chicago: NTC Business Books.

Kotler, P. And Armstrong, G. (1987) Marketing: An Introduction, New Jersey: Prentice Hall

Ogden, J. E. (1998). Developing a Creative and Innovative Integrated Marketing Communication Plan. New Jersey: Prentice Hall.

...REFERENCES...REFERENCES

Pickton, D. And Broderick, A. (2001). Integrated Marketing Communications Essex: Prentice Hall

Cases of MC from Turkish Public Relations Association.

MARKETING MARKETING COMMUNICATIONSCOMMUNICATIONS

PLANPLAN

MC PLANNINGMC PLANNING

MC plan is a document that summariss the details of MC activities including relevamt background information and MC decisions


Mission: is the reason that the company or organization exists. It may include a series of goals or objectives that the organization wishesto achieve or strive for.

Mission descibes the presnet condition of the company, defines the business and the industry


Vision: closely related to the mission statement but it looks to the future. Where does the company see itself in the future? It can be developed with input from all of the company and the stakeholders

p. Ogden, 6-7


Objectives: end results to be sought

Strategy: the general means by which objectives are intended to be achieved

Tactics: Details of how strategies are intended to be achieved

p. 409

8 PLANNING Q’S8 PLANNING Q’S

1) WHERE ARE WE NOW?2) WHY ARE WE HERE?3) IF WE CARRY ON WHERE WE WİLL BE?4) WHERE SHOULD WE BE?5) HOW DO WE GET THERE?6) ARE WE GETTING THERE?7) DO WE NEED TO CORRECT OUR COURSE?8) HAVE WE REACHED OUR GOAL?p. 410

MC PLANMC PLAN

Situational Analysis: Research

Setting Objectives: Objectives

Strategic Decision Making: Strategy

Operational Decision Making: Tactics

Campaign Evaluation: Control

SITUATION ANALYSISSITUATION ANALYSIS

Where are we now?

SITUATION ANALYSISSITUATION ANALYSIS

It is basically the history of the company. It should includecompnay’s growth, history, product offerings,sales volume, and markets. Also various environements that may have an impact on the organization. To fully understand the environemt, the marketing department world with various other departments and does environmental scanning.

Ogden, p.7

OBJECTIVESOBJECTIVES

What are we trying to achieve?

A marketing objective:

To increase market share of brand A from x% to y% in z months

An advertising objective:

To demonstrate the versality of brand A.

OBJECTIVESOBJECTIVES(SMARRTT)(SMARRTT)

Specific

Measurable

Achievable

Realistic

Relevant

Targeted

Timed

STRATEGYSTRATEGY

How could we get there?

Marketing strategy:

By continuing to improve product quality on the dimensions of taste and color

Advertising strategy

By givin examples of both in home and out of home usage

MAIN STRATEGIC APPROACHES MAIN STRATEGIC APPROACHES TO MCTO MC

1) Affective strategy2) Unique Selling Proposition (USP)3) Brand image strategy4) Resonance strategy5) Positioning strategy6) Generic strategy

p. 422-426 and Ogden, p. 65

TACTICSTACTICS

What specific activities do we to do to get there?

Tactics are the details of strategy. In MC tactics are the communications tools such as advertising, PR, direct mail etc.The tactics in the marketing communications plan list what happens, when and for how much.

FACTORS AFFECTING TACTICAL FACTORS AFFECTING TACTICAL MC MIX CHOİCEMC MIX CHOİCE

1) Product life cycle

2) Innovation diffusion

3) Type of product

4) Involvement

5) Hierarchy of effects

p. 436

CAMPAIGN MANAGEMENT: CAMPAIGN MANAGEMENT: ACTIONACTION

What resources are needed to get there?

The development and continuous monitoring of the campaign

The planning of resource acquisition in terms of people and budgets

The planning of resource development in terms of time and money

p. 334

CAMPAIGN EVALUATION: CAMPAIGN EVALUATION: CONTROLCONTROL

Are we getting there?

What was expected to happen?

What did happen?

What was the effect of adv as separate from other factors?

What were the reasons for success or failure?

What should happen next?

p. 334


Outline

• Corporate Philosopy/description of company and product

A. Corporate goals and objectives

B. General company and product history

C. Company organization


Outline

2) Review of the consumer target market

A. Demographics and lifestyle factors

B. Product usage

C. Heavy users

D. Potential primary and secondary markets


Outline

3 Review of the business-to business target market

• Target market segmentation

• Base segmenting

• Other methods of segmenting


Outline4 Sales Analysis• Total sales• Sales by brand or department• Market share• Store for Store sales for retailers• Seasonality of sales• Sales by geographic territory


Outline

5 Product awareness and attributes

• Product awareness

• Product attributes


Outline

6 Purchase rate, buying

A) Purchase rates of the product category and your comapny’s product by geographic markets

B) Trading areas

C) Brand loyalty

D) Buying habits

E) Trial and retrial


Outline

7 Distribution

A) Retail

B) Package Goods

C) Business-to business

D) Service Firms


Outline

8 Pricing

A) Price of your product

B) Sales by price point

C) Price elasticity

D) Cost structure


Outline

9 Marketing review of your company vs competition

A) Competitive information

B) Strengths and weaknesses


Outline10 Demand AnalysisA) Target marketB) Geographical territoryC) Consumption constraintsD) Aver. Purchase per year per consumerE) Total purchase per year in categoryF) Average priceG) Your company’s market share

Documents

Serra Gorpe