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BA230-Marketing Communication
Market
Mix
Product Decisions
• Quality
• Design
• Branding
• Packaging
• Customer Service
• New Products
• Product mix, line and life
cycle strategies
Price Decisions
• Objectives
• Strategies
• Methods
• Setting pricing
• Price changes
• Discounting
Place
• Channel type
• Channel mgt
• Supply chain
• Distribution
• Logistics
• Transportation
• Service levels
Promotion
• Goals
• Objectives
• Mix
• Budget
• Messages
• Media
• Metrics
Communication Goes Beyond
the Specific Promotion Mix
Elements
• Although the promotion mix is the company's primary communication activity, the entire marketing mix -- promotion and product, price, and place -- must be coordinated for the greatest communication impact.
Need for Synergy
• Besides communication
tools, all the marketing mix
elements should work
together harmoniously for
maximum informational and
persuasive effect.
• The major goal is to send a
consistent message to
customers.
Marketing Mix Influences on
Consumer Perception
• Nature of Product
• Physical Attributes of Product
• Package Design
• Brand Name
• Advertisements & Commercials
• Point of Purchase Displays
• Distribution of Products
1. Product
• Individuals exchange something (e.g. money) in return for some benefit.
• The entire product experience provides value to customers.
• The product must be compatible with needs of the target audience.
Winning the Battle of Perceptions
• Many people believe that the
basic issue in marketing is …
convincing customers you have
a better product, that in the long
run the best product will win.
• Not true … It’s an Illusion…
there is no objective reality. The
perception is the reality.
1. Product
• The product is what the company has to offer, including its... – Design
– Quality
– Features
– Varieties
– Brand name
– and logo
a.) Perceived Quality of Products
Essential Cues
• Physical characteristics of the
product (such as size, color,
flavor, or aroma) that serve to
influence the consumer’s
perceptions of product quality.
• For instance, a toilet tissue is
preferred for superior durability
and softness and a television for
movie-quality picture and sound.
a.) Perceived Quality of Products
Essential Cues
• Cues external to the product (such
as price, store image, or brand
image) that serve to influence the
consumer’s perception of a
product’s quality.
• For instance, BMW’s slogan has
helped build its brand image: "The
ultimate driving machine”
b.) Brand Message
• Almost anything related to brand conveys a message about the value of product.
• Two different products serving the same need can be compared on the basis of price for example: 5 dollars and 45 dollars per product.
• Consider a toothpaste in a supermarket which is covered with dust and placed at the last shelf.
b.) Brand Name
• A name that provides the customer
with an easily identified theme to
increase product recognition.
• The brand name fulfills a special
role acting as a summary message
on a package.
• Consumers use brand name as
signals of product quality.
b.) Brand Value
• Coca Cola: $79.213 billion
• IBM: $78.808 billion
• Microsoft: $59.546 billion
c.) Purchasing and Consumption
Processes are Related to Senses
Occurs through stimulation of our five senses.
– touch
– taste
– smell
– sight
– hearing
• Colors and learned associations
• Colors and mood
• Red: powerful, dangerous, exciting, hot,
appetizing→ Burger King, KFC
• White: clean, pure→ laundry detergents
c.) Sensory Receptor: Sight
• Green: natural, peaceful, harmonious, environment
friendly→ BP logo
• Blue: authoritative, respectful, meditative
cool- cold→ Arko cooling after shave cologne
• Black: cold, sophisticated, prestigious
→ Johnnie Walker Black Label scotch
→ Mont Blanc pen
c.) Sensory Receptor: Sight
c.) Sensory Receptor: Sight
• Shape perception
• Long and large shapes are perceived as strong and effective.
• Short and thin shapes evoke elegance, fragileness.
• Round shapes are perceived as feminine, harmonious.
• Cornered shapes evoke dynamism, masculinity.
c.) Sensory Receptor: Smell
• Smell and emotions→ perfumes
• Smell& childhood associations→
Pelikan
c.) Sensory Receptor: Touch
• Touch→ Shetland sweater
→ Solo
→ Linen pillow
c.) Sensory Receptor: Taste
• Culturally determined
• Lifecycle changes→ Becel
• Negative taste experiences
d.) Packaging
• Offers convenience to
consumers
• Prevents waste and make
storage easier
• Promotes the product by
communicating its
features,
uses, benefits, and image
d.) Packaging
•Packaging can improve
perceived product quality.
•Packaging can make the
difference in ease of use,
more distinctive.
•Selpak side opening facial
tissue can be opened either
on the top or on the side of
the pack enabling the easy
use of the product in the car
door pocket in addition to
the conventional access.
2. Price
• One of the most important elements of
the marketing mix.
• The amount charged for a product or
service should support its positioning
• A pricing which is out of
synchronization with the product and
other marketing mix elements will
confuse customers and hence lead to
lower sales.
a.) Price/Quality Relationship
• The perception of price as an indicator of
product quality (e.g., the higher the price, the
higher the perceived quality of the product).
• High price reflects the exclusiveness of the
product for example, Porsche.
• Value for customer = (Perceived Benefits - Perceived
Price)
b.) Consumer Evaluation of Price
• Some products are subject to
objective evaluation by
customers e.g., a car with
features as ABS, air
conditioning, airbags, alarm,
central locking...
• Whereas, some products are
not appropriate for objective
evaluation as beer and
cigarettes.
c.) Pricing
• Fixed and variable costs
• Competition
• Company objectives
• Proposed positioning strategies.
• Target group and willingness to
pay
3. Place
• Where tangible product is purchased or service is provided?
• Is it convenient?
• Where people are predisposed to pay attention to the promotional message?
• Are we taking full advantage of these places?
Place
• Observational studies
have shown that time
in store and amount
spent are positively
related. The more time
in the store, the more
money spent.
• Place is everything for
low-involvement
products.
Place
Store Image
• Overall perception the customer has of the store’s environment.
• Physical elements in a store’s design appeal to consumers’ emotions and encourage buying
• Interior layout, colors, furnishings, and lighting, exterior storefront and entrance design, display windows
Store Image
Store Image