marketing communication program
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Marketing CommunicationMarketing Communication
ProgramProgram
Prof. Rushen ChahalProf. Rushen Chahal
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Purposes of Marketing CommunicationsPurposes of Marketing Communications
y not only informs, but is also used to differentiate
the sellers products/services
y may also be effective in affecting the price
elasticity of demand (nonprice competition)y the marketing communications strategy of a firm
must be coordinated and linked with concepts
such as target segments, positioning,
differentiation, and image
y requires a closely coordinated approach
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Marketing CommunicationsMarketing Communications
y Informs, persuades and reminds
y Is part of the marketing mix
y
Includes all the means by which a companycommunicates directly with potentialcustomers.
y Attempts to influence feelings, beliefs, or
behaviour.
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Marketing CommunicationMarketing Communication
MethodsMethods
y Personal selling:The direct presentation of a
product to a prospective customer by a
representative of the selling organization.
y Advertising:A paid, impersonal masscommunication with a clearly-identified sponsor.
y Sales promotion: Demand-stimulating activity
designed to supplement advertising and facilitate
personal selling.
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More MethodsMore Methods
y Public relations: A planned communication
effort by an organization to contribute to
generally favourable attitudes and opinions
toward an organization and its products.
y Publicity: A special form of public relations that
involves news stories about an organization or its
products.
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Integrated Marketing CommunicationsIntegrated Marketing Communications
y A strategic business process used to plan, develop,execute, evaluate coordinated communication within anorganizations publics, requiring:
Awareness of audiences media habits and preferences
Understanding of audiences knowledge and beliefsabout the product
Use of coordinated media blend linked to a specificobjective
Key is a single, coordinated message and image thrust
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Basic Communication ElementsBasic Communication Elements
y A message
y A source of the message
y A communication channel
y A receiver
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Communication process components:
Encoding
Decoding
Response
Feedback
Noise
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The Communications ProcessThe Communications Process
y communications requires a channel, with a senderand a receiver, to handle the message
y a message is first encoded by the sender
y the communications channel is then used to deliverthe message to the sender
y the sender decodes the message, based on his orher frame of reference and experience
y may be a need for a response and feedback
y the process can be interrupted by noise
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MESSAGE
CHANNEL
Select the media
or other vehicleto carry the message
MESSAGE
CHANNEL
Select the media
or other vehicleto carry the message
DECODINGTHE MESSAGE
Receiver compares
message to
frame of reference
DECODINGTHE MESSAGE
Receiver compares
message to
frame of reference
MESSAGE
AS RECEIVED
Knowledge, beliefs,
or feelings of
receiver changed
MESSAGE
AS RECEIVED
Knowledge, beliefs,
or feelings of
receiver changed
RESPONSE
Ranges from simple
awareness to
purchase
RESPONSE
Ranges from simple
awareness to
purchase
FEEDBACK
Impact measured
using research, sales,
or another measure
FEEDBACK
Impact measured
using research, sales,
or another measure
ENCODING THEMESSAGE
Create an ad,
display, or sales
presentation
ENCODING THEMESSAGE
Create an ad,
display, or sales
presentation
MESSAGE AS
INTENDED
A promotional idea in
marketers mind
MESSAGE AS
INTENDED
A promotional idea in
marketers mind
NOISECompeting ads,
other
distractions
The Process
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Inside the CommunicationsInside the Communications
ProcessProcess
y The act of encoding allows that messages cantake many forms.
y The methods of transmitting a message are
limited only by the imagination and creativity ofthe sender.
y How the message is decoded depends on itsform and the capability and interest of the
recipient.y Without measurable objectives, the
effectiveness of a message cannot be evaluated.
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Considerations in Designing MarketingConsiderations in Designing Marketing
Communications MixCommunications Mix
y Target market
Readiness to buy, knowledge, liking, preference,conviction (belief)
Purchase Geographic scope
Type consumer or middleman
Concentration
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More ConsiderationsMore Considerations
y Nature of the product
Unit value
Degree of customization
Presale and postsale servicey Stage of the product life cycle
y Amount of money available for promotion
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Push or Pull StrategyPush or Pull Strategy
y a push strategy directs communication efforts at
channel members; a pull strategy directs
promotion at the end consumer
y many products, such as business products, arepromoted with a push strategy, involving personal
selling and use of trade promotions
y most consumer products would rely more heavily
on a pull strategy where promotion is directed at
the consumer to stimulate demand
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Choosing a Push orChoosing a Push or
Pull StrategyPull Strategy
y Apush strategyis directing the
communication primarily at the
middlemen that are the next link
forward in the producers distribution
channel.
y Apull strategyhas the communication
directed at the end users primarilyconsumers.
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ProducerProducer Wholesaler Wholesaler Retailer Retailer Consumer Consumer
ProducerProducer Wholesaler Wholesaler Retailer Retailer Consumer Consumer
PUSH STRATEGY
PULL STRATEGY
Product flow Communication effort
An Illustration
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Determining theDetermining the
Communications BudgetCommunications Budget
y Percentage ofSales:
Based on past or projected sales, e.g. 2%.
$X per unit is variation for big-ticket items.
Simple, but implies its a result of sales.
y All Available Funds:
New business which needs to build sales andshare in early years can use this.
Can make sense if more marketingcommunications leads directly to more sales.
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More Budgeting MethodsMore Budgeting Methods
y Follow the Competition:
Match what your competitors spend.
Can use industry averages.
Benchmark against one key competitor.
But does it fit with your strategies?
y Task or Objective:
Best approach:What do you want to achieve?
Identify tasks/objectives, then cost them out.
Sometimes called buildup method.
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