Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications Strategy 18

Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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M A R K E T I N G

MarketingCommunications Strategy

18


Chapter

Objectives1. Explain the concept of the marketing communications mix.2. Describe the marketing communications mix as part of the marketing mix. 3. Elaborate on the importance of the integrated marketing communications concept.4. Outline a theoretical mode of the communications process.5. Show how various marketing communications must conform to this model in order to be effective.6. Explain and contrast pulling and pushing marketing communications strategies.7. Discuss the appropriateness of different types of marketing communications objectives.8. Explain the concept of a marketing communications budget.9. Discuss the appropriateness of different types of marketing communications budgets.

10. Discuss marketing communications in the light of some public criticisms.

Marketing Communications Strategy 18

18-1


Chapter

Marketing Communications

• All activities and messages inform, persuade, and influence the consumer in making a purchase decision.

18Marketing Communications Strategy

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Chapter

Integrating the Marketing Communications Plan into the Total Marketing Mix


Figure 18.1

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Marketing Manager

Integrated marketing communications strategy

Other aspects of the marketing program:Product Distribution Pricingstrategy strategy strategy

ConsumerSets goals

& objectives

Combined with

Feedback

Personal Selling

Nonpersonal Selling

Produces Utility for


Chapter

Integrated Marketing Communications (IMC)• A comprehensive marketing

communications plan that takes into consideration all the communication disciplines being used and combines them to provide clarity, consistency, and maximum communications impact.


18-4


Chapter

The Process of Marketing Communications


Figure 18.3

18-5

SenderMarketing Manager

EncodingSales presentations, ads, displays, publicity, releases

Noise

Transfer MechanismSalesperson, print or electronic Advertising media, direct mail, internet, public relations channel

FeedbackAdvertising research, field reports, inventory movements

ResponseAttitude change or decision

DecodingCustomer/receiver Interests message


Chapter

Examples of Marketing Communications


Table 18.1

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TYPE OF TRANSFER DECODING BY PROMOTION SENDER ENCODING MECHANISM RECEIVER RESPONSE FEEDBACK

Personal Canon Office Sales Canon sales Office manager Order placed Information that selling Equipment presentation representative and employees Canon copier for customers are

on new model in local firm reacting positively office copier discuss Canon to the message

sales presentation and those of competing suppliers

Two-for-one Wendy's Wendy's Coupon inserted Newspaper Hamburgers Information that coupon(sales Hamburgers marketing in weekend reader sees purchased by customers are promotion) department and newspaper coupon for consumers using reacting positively

advertising hamburger the coupon to the message agency and saves it

Television Movie producer Advertisement Network Audience sees Small number Communication advertising for a new movie television during ad but few of movie tickets failed to interest

is developed by programs with decide to go to purchased and motivate the the producer's high percentage the movie target market advertising of viewers in agency target market


Chapter

Marketing Communications Mix

• The blend of personal selling and nonpersonal communications (including advertising, sales promotion, public relations, sponsorship marketing, and point-of-purchase communications) by marketers in an attempt to accomplish information and persuasion objectives.


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Chapter

The Marketing and Marketing Communications Mix


Figure 18.4

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Marketing MixProductPriceDistributionMarketing communications

Marketing Communications MixPersonal sellingNonpersonal selling• Advertising• Sales promotion• Point-of-purchase communications• Public relations• Sponsorship marketing• Publicity


Chapter

Personal Selling

• A seller’s promotional presentation conducted on a person-to-person basis with the buyer.


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Chapter

Nonpersonal Communication (1 of 3)

• AdvertisingPaid nonpersonal communication through various media by business firms, nonprofit organizations, and individuals who are in some way identified with the advertising message and who hope to inform or persuade members of a particular audience.


18-10a


Chapter


• Sales PromotionThose marketing activities, other than personal selling, mass media advertising, and publicity hat stimulate consumer purchasing and dealer effectiveness.

• Public Relations A firm’s effort to create favourable attention and word-of-mouth.


18-10b


Chapter


• Sponsorship MarketingThe practice of promoting the interests of a company by associating the company or a brand with a specific event.

• Point-of-Purchase CommunicationsMaterials designed to influence buying decisions at the point of purchase.


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Chapter

Factors That Influence the Marketing Communications Mix


Table 18.2

EMPHASIS ONFACTOR Personal Selling Advertising

Objectives of the Affects all decisions in the Marketing Plan mix

Actions of Competitors Decide whether to match competitors and/or to develop a different mix

Nature of the Market Number of buyers Limited number Large numberGeographic concentration Concentrated DispersedType of customer Business purchaser Ultimate consumer

Nature of the Product Complexity Custom-made, complex StandardizedService requirements Considerable MinimalType of good Business ConsumerUse of trade-ins Trade-ins common Trade-ins uncommon

Stage in the Product Introductory and early Latter part of growthLife Cycle growth stages stage and maturity and

early decline stages

Price High unit value Low unit value

Funds Available Affects all decisions in the mix18-11


Chapter

Pulling Strategy

• A promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel.


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Chapter

Pushing Strategy

• The promotion of the product first to the members of the marketing channel, who then participate in its promotion to the final user.


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Chapter

Relative Importance of Advertising and Selling


Figure 18.5

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Selling

Advertising

Pre-transactional Transactional Post-Transactional

Rel

ativ

e Im

po

rtan

ce

Source: Harold C. Cash and W.J.E. Crissey, “The Salesman’s Role in Marketing,” The Psychology of Selling, Vol. 12 (New York: Personnel Development Associates).


Chapter

Promotion Can Help Marketers Achieve Demand Objectives


Figure 18.6

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Demand objective for the product

Quantity

Pri

ce

Existing demand for a product 1

2


Chapter

Product Differentiation


Figure 18.7

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Differentiated demand

Quantity

Pri

ce

Homogeneous demand


Chapter

Promotion Can Accentuate the Value of the Product


Figure 18.8

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Less responsive to price differences

Quantity

Pri

ce

More responsive to price differences

D1D2


Chapter

Elements of Advertising Planning


Figure 18.9

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Research Inputs• Consumer research• Product research• Market analysis• Consumer situation

Making evaluations and adjustments

Measuring the effectiveness of advertising

Taking into account constraints and uncontrollable influences

Strategic Decisions• Setting objectives• Defining target markets• Determining advertising budget deciding media strategy•Coordinating with other marketing factors

Tactical Execution• Establishing controls• Writing and producing ads and commercials• Selecting and scheduling media vehicles

MarketImpact

Feedback

Source: Excerpt from advertising: Its Role in Modern Marketing, 5th ed., by S. Watson Dunn and Arnold M. Barban, p. 202. Copyright © 1982. Reprinted with permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800-730-2215.


Chapter

How Much Should be Spent on Marketing Communications? • Percentage of Sales

• Fixed Sum per Unit

• Meet Competition

• Task-Objective Method


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Chapter

Task-Objective Method

• A sequential approach to allocating marketing communications budgets that involves two steps:1)defining the realistic communication goals the

firm wants the marketing communications mix to accomplish, and

2)determining the amount and type of marketing communications activity required to accomplish each of these objectives.


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Chapter

Direct-Sales Results Test

• A test that attempts to ascertain for each dollar of promotional outlay the corresponding increase in revenue.


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Chapter

The Value of Marketing Communications • Business and Nonprofit Enterprise

Importance

• Economic Importance

• Social Importance


18-22

Documents

Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications Strategy 18