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12. Marketing Communication

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Anything and Everything is an Ad.

Example: BMWs Lets motor campaign. Example: Burger Kings Have it your way.

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Burger Kings Subservient Chicken Microsite

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Have it your way.Viral Marketing

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Whopper Freakout Commercial

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Outline

Changes in Communication Environment Communication process Develop effective Communication Design the Message Creative Strategy Establish the Communication Mix

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Environmental Trends and Change in Promotion Strategies

Markets are more fragmented; Consumer viewing habits become more diverse and

media are more fragmented; The growth of targeted media vehicles.Marketers use less mass media and more targeted media.

The improvements in the quality and quantity of consumer information due to information technology;

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The growth and development of data mining. Target consumer through various direct-marketing methods.

More intensive price competition and the increase in retailers power (consolidation and scanner data). Shift the promotion focus from advertising to sales promotion. The promotion expenditures in 2007:Trade promotion (60%), 7% in 6 years; Consumer promotion (14%) Advertising (26%), down from 42% twenty years ago

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More Developments11Neff, Jack (2005), Advertising age, July 11, 2005.

P&G shuttered its Reflect.com customized beauty site. The Internet seems to reemerge as a credible ad

medium. Unilever tripled its online spending to $17.6 (3% of

media budget) million. The Internet evolves into a mass medium (in addition

to a tool for relationship marketing), at least for male-oriented-product launches.

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The Shifting Marketing Communications Model

Less broadcasting and more narrowcasting

Advertisers are shifting budgets away from network television to more targeted cost-effective, interactive, and engaging media

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Marketing Communications Mix

Advertising Sales Promotion Public Relations and Publicity Personal Selling Direct and Interactive Marketing

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The Difference among Various Tools

Customization One-way or Two-way Controllable or not

Integrated Marketing Communications

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Brand Positioning Attributes Benefits Values

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Haagen-Dazs Loves Honey Bees

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15Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998

The Communication Process

Slide17-2

Figure17.1

Source Transmits Message via Medium

Receiver Provides Feedback to Source

ReceivesDecodesMessage

SourceEncodesMessage

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Effective Communication(Fiske & Hartley)

Source: powerful or influential; with expertise or high likability

Message: consistent with audiences beliefs Peripheral issues Social context

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Figure 19.2: Steps in Developing Effective Communication

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Developing Effective Communications

Identifying the Target Audience Image Analysis

Determining the Communication Objectives

Three kinds of responses from the target audience:

-Cognitive (learn)

-Affective (feel)

-Behavioral (do)

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Identify the Target Audience

Image analysis Familiarity scale Favorability scale

Never Heard of

Heard of Only

Know a Little Bit

Know a Fair Amount

Know Very Well

Very Unfavorable

Somewhat Unfavorable

Indifferent Somewhat Favorable

Very favorable

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Figure 19.3: Familiarity-Favorability Analysis

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21Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998

Some Strategic Goals of Marketing Communications

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Table17.1

Strategic Goal

Create awareness

Build positive images

Build channel relationships

Description

Inform markets about products, brands, stores or organizations.

Develop positive evaluations in people 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

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Awareness

Knowledge

Liking

Preference

Conviction

Purchase

"Hierarchy-of-Effects" Model

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The Objective of this Advertisement?

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Design the Message

Content

Structure

Source

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25Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998

The AIDA ModelSlide17-3

Figure17.2

Action DesireInterestAttention

MarketingCommunications

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Message Content

Rational Appeals Emotional Appeals

Positive or negative? Moral Appeals

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Message Structure

Conclusion-drawing or not? One-sided or two-sided? The order of arguments presented

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Creative Strategy Informational appeals Transformational appeals

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Positive and Negative Appeals

Fear Guilt Shame Humor Love Pride Joy

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Communication Channels

PersonalAdvocate channels Social channelsExpert channels

NonpersonalMediaEventsAtmospheres

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Stimulating Personal Influence Channels

Identify influential individuals and devote extra attention to them

Create opinion leaders Use community influentials in testimonial

advertising Develop advertising with high conversation value Develop WOM referral channels Establish an electronic forum Use viral marketing

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Communication Budgets

Affordable Method Percentage-of-Sales Method Competitive-Parity Method

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Establishing the Promotion Mix

(Advertising )

(Sales Promotion)

(Public Relations and Publicity )

(Personal Selling)

34Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998

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

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Communication Mix:Factors to consider:

-(Type of Product)

-(Push vs. Pull strategy)

-(Buyer readiness stage)

-(Product Life Cycle)

36Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998

Two Marketing Communications Approaches

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Figure17.3

End Users ResellersProducer

Resellers End Users

MarketingCommunications

MarketingCommunications

Request Products

Request Products

Producer

Marketing Communications

Push Strategy

Pull Strategy

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Coordinating Media to Build Brand Equity

Problem: Weak Brand Links Solution: Strengthening Communication

Effects

Weak Brand Links

Competitive Clutter Message content and structure Consumer involvement

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Strengthening Communication Effects

Brand Signatures Ad Retrieval Cues Media Interactions

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Got Milk Campaign

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The milk moustache campaign changed attitudes toward milk.

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Got Milk Campaign

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