Raj presentation

8/7/2019 Raj presentation

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Role of marketing communications


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Marketing communication is the means by which firmsattempt to inform, persuade and remind consumers about theproducts and brands they sell. It is the voice of company andits brands by which it can establish and build relationships withconsumers.

It can also perform many functions for consumers. They cantell or show consumers how and why a product is used, bywhat kind of person, and where and when.

marketing communications allow companies to link their brands to other people, places, events, brands, experiences,feelings, and things.


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The changing marketing

communication environment

y The environment of marketing communication is

changing rapidly.

y Technology and other factors have profoundly changed

the way consumers process communications.

y The rapid diffusion of powerful broadband internet

connections, ad-skipping digital video recorders,

multipurpose cell phones, and portable music and

video players have forced marketers to rethink a

number of their traditional practices.


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Contd

y These dramatic changes have eroded the effectiveness

of the mass media. In 1960,companies had limited

media options; television channels had not made their

presence felt in South Asian countries at that time.

y However, with an explosive growth of the mass media

in South Asia, all these have changed over the last few

years.

y

There are over 50 television channels in Pakistan,about 30 in Bangladesh, a dozen in Sri Lanka, and over

100 in India.


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Contd

y The number, the language, and the nature and type of

programs aired by the television channels make South

Asia one of the most complex markets in the world.

y

In addition, there has also been a tremendous growthof the FM radio channels in the region.

y The print media has also grown considerably in South

Asia, making the media budgeting, media, and the

measurement of communication impact are becomingincreasingly difficult.


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Contd

y 2 forcesaretoblameforthedemiseofwhatusedtobe

themostpowerfulmeansofhittingtheconsumer

marketingbullseye.

y

Oneisthefragmentation

ofaudiences

and,

y withtheadventofdigitaltechnologyandtheinternet.


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MarketingCommunications, Brand

Equity, and Sales

y Inthisnewcommunicationenvironment,although

advertisingisoftenacentralelementofamarketing

communicationsprogram,itisusuallynottheonly

one oreventhemostimportantone intermsof

buildingbrandequityanddrivingsales.

Example:Mahindra & Mahindrachosetointroducetheir

newvehicle

Scorpio.


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Marketing communications mix

y Advertising - Any paid form of non personal presentation and promotion of ideas, goods, orservices by an identified sponsor.

y Sales promotion- A variety of short term incentives

to encourage trial or purchase of a product or service.

y Events and experiences- Company sponsoredactivities and programs designed to create daily orspecial brand related interactions.

y Public relations and publicity- Variety of programsdesigned to promote or protect a company's imageor individual products.


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y Direct marketing- Use of mail, telephone, fax, email of

internet to communicate directly with or solicit response

or dialogue from specific customers and prospects.

y Interactive marketing- Online activities and programs

designed to engage customers or prospects and directly or

indirectly raise awareness, improve image, or elicit sales

of products and services.

y Word of mouth marketing- People to people oral,

written and other sorts of communications regarding the

experiences of a particular brand.

y Personal selling- Face to face interactions with one or

more prospective purchases for the purpose of making

presentations, answering questions and procuring orders.


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Contd

y The products styling and price, the shape and color ofthe package, the salespersons manner and dress, thestore dcor, the companys stationery allcommunicate something to the buyers.

y Every brand contact delivers an impression that canstrengthen or weaken a customers view of a company.

y Marketing communications activities contribute to brand equity by creating awareness of the brand;

linking the right associations to the brand image inconsumers memory; eliciting positive brand judgments or feelings; and/or facilitating a strongerconsumer-brand connection.


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MarketingCommunication Effects

y The manner in which brand associations are formed does

not matter. In other words, if a consumer has an equally

strong, favorable, and unique brand-association, the impact

in terms of brand equity should be identical.

y But these marketing communications activities must be

integrated to deliver a consistent message and achieve the

strategic positioning.

y The starting point in planning marketing communications is

an audit.y From the perspective of building brand equity, marketers

should be media neutral and evaluate all the different

possible communication options according to effectiveness

criteria as well as efficiency considerations.


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INTEGRATING MARKETING

COMMUNICATIONS TO

BUILD BRAND EQUITY


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Marketing

communications

program

BrandEquity

AdvertisingSalespromotion

Events &

Experiences

Publicrelations

andpublicity

Direct &

interactive

marketing

Wordof mouthmarketing

Personalselling Directmarketing

Brandawareness

Brandimage

Brandresponse

Brandrelationships


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The Communications Process Models

y 2 MODELS

1. a macro model

2. a micro model

Macro model of the communications process

It contains 9 elements.

2 represents the major parties in a communication senderand receiver.

2 represents the major communication functionsencoding, decoding, response, and feedback.

The last element in the system is noise.


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The communications process model

Sender EncodingMessage

MediaDecoding Receiver

Media

Feedback Response


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Developing Effective Communications

Identifytarget

audience

Determine

objective

Design

communicatio

ns

Selectchannels

Establish

budget

Decideon

mediamix

Measure

results

Manage

integrated

marketing

communications


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Select the communications channels

yPersonalcommunicationschannels

yNonpersonalcommunications

channelsyIntegrationofcommunications

channels


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Factors in setting the marketing

communications mix

yTypeofproductmarket

yConsumerreadinesstomakea

purchase,and

yStageintheproductlifecycle.


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Personal communications channels

y Personal communications channels let 2 or more persons

communicate face-to-face, person-to-audiences, over the

telephone, or through e-mail.

y

Personal communication channels derive their effectivenessthrough individualized presentation and feedback.

a) advocate channels

b) expert channelsc) social channels


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Non personal communications

channels

y Non personal communications channels are communications

directed to more than one person and include media, sales

promotions, events and experiences, and public relations.

a) Media

b) Sales promotions

c) Events and experiences

d) Public relations


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Integration of communications

channels

y Mass communications affect personal attitudes andbehavior through a two-step process.

y This two-step process has several implications.

first, the influence of mass media on public opinion is not

as direct, powerful, and automatic as marketers havesupposed.

Second, the two-step process challenges the notion thatconsumption styles are primarily influenced by a trickle-down or trickle-up effect from mass media.

Third, two-step process communication suggests that masscommunicators should direct messages specifically toopinion leaders and let them carry the message to others.


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Type of product market

Although marketers use advertising less than sales

calls in business markets, advertising still play a

significant roles:

Advertising can provide an introduction to thecompany and its products.

If the product has new features, advertising can explain

them.

Remainder advertising is more economical than salescalls.


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Contd

y Advertisements offering brochures and carrying the

companys phone number are an effective way to

generate leads for sales representatives.

Sales representatives can use copies of the companysads to legitimize their company and products.

Advertising can remind customers how to use the

product and reassure them about their purchase.


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y Yet an effectively trained company sales force can

make 4 important contributions:

1. Increased stock position

2. Enthusiasm building

3. Missionary selling

4. Key account management


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BUYER-READINESS STAGEy Communication tools vary in cost-effectiveness at different

stages of buyer readiness.

y Advertising and publicity play the most important roles inthe awareness-building stage.

y Customer comprehension is primarily affected byadvertising and personal selling.

y Customer conviction is influenced mostly by personalselling.

y Closing the sale is influenced mostly by personal sellingand sales promotion.

y Reordering is also affected mostly by personal selling andsales promotion, and somewhat by remainder advertising.


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PRODUCT LIFE-CYCLE STAGE

y Communication tools also vary in cost-effectiveness at

different stages of the product life cycle.

y In the introduction stage, advertising, events and

experiences, publicity have the highest cost-effectiveness, followed by personal selling to gain

distribution coverage and sales promotion and direct

marketing to induce trial.

y In the growth stage, demand has its own momentum

through word of mouth.


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Contd

y In the maturity stage, advertising, events and

experiences, and personal selling all become more

important.

y

In the decline stage, sales promotion continues strong,other communication tools are reduced , and

salespeople give the product only minimal attention.


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Determine the communications

objectives

y Category need.

y Brand awareness.

y Brand attitude.

y Band purchase intention.


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THANK YOU

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