marketing communications exam summary

Adeel Qurashi

Robert Gordon University – BA Honours

Marketing Communications EXAM Review Summary of core text; including: lectures, core book and relevant internet sources

MC Exam Summary 1 General

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Table of Contents

1 General ........................................................................................................................................ 5

1.1 Definition MC ................................................................................................................................ 5

1.2 Learn ............................................................................................................................................. 5

1.3 Corporate PR ................................................................................................................................. 5

1.4 Marketing PR ................................................................................................................................. 5

1.5 Marketing Mix ............................................................................................................................... 5

1.6 Promotional Mix ........................................................................................................................... 6

1.7 Promotion ..................................................................................................................................... 6

1.8 Sales Promotion ............................................................................................................................ 6

1.9 Marketing and Communications ................................................................................................... 6

2 Marketing .................................................................................................................................... 7

2.1 Learn ............................................................................................................................................. 7

2.2 Marketing Communications .......................................................................................................... 7

2.3 Promotional Mix Factors ............................................................................................................... 7

2.4 Effective MC .................................................................................................................................. 7

2.5 Communication process ............................................................................................................... 8

3 Segmentation ............................................................................................................................... 9

3.1 Learn ............................................................................................................................................. 9

3.2 Definition ...................................................................................................................................... 9

3.3 Objective ....................................................................................................................................... 9

3.4 Criteria ........................................................................................................................................... 9

3.5 Most succesful .............................................................................................................................. 9

3.6 Segmentation model ..................................................................................................................... 9

4 Media ......................................................................................................................................... 10

4.1 Learn ........................................................................................................................................... 10

4.2 Traditional media types .............................................................................................................. 10

4.3 New media .................................................................................................................................. 10

4.3.1 Digital Media ....................................................................................................................... 10

4.3.2 Use of ‘tools’ in new media ................................................................................................. 10


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4.4 Media vehicle selection .............................................................................................................. 11

5 PR .............................................................................................................................................. 12

5.1 Learn ........................................................................................................................................... 12

5.2 PR Definition ............................................................................................................................... 12

5.3 Publicity definition ...................................................................................................................... 12

5.4 PR Types ...................................................................................................................................... 12

5.5 PR Publics .................................................................................................................................... 12

5.6 PR Vehicles .................................................................................................................................. 12

5.7 Cause related marketing ............................................................................................................. 13

5.8 Objectives of PR .......................................................................................................................... 13

6 Sponsorship ............................................................................................................................... 14

6.1 Learn ........................................................................................................................................... 14

6.2 Definition .................................................................................................................................... 14

6.3 Aim of sponsorship ..................................................................................................................... 14

6.4 Key considerations ...................................................................................................................... 14

6.5 Sponsorship ‘tools’ ...................................................................................................................... 14

7 Advertising ................................................................................................................................. 15

7.1 Learn ........................................................................................................................................... 15

7.2 Definitions ................................................................................................................................... 15

7.3 Reasons for advertising ............................................................................................................... 15

7.4 Barriers ........................................................................................................................................ 15

7.5 How advertising works ................................................................................................................ 15

7.6 AIDA ............................................................................................................................................ 15

7.7 Hierarchy of effects ..................................................................................................................... 16

7.8 Advertising model (process) ....................................................................................................... 16

8 Sales Promo ............................................................................................................................... 17

8.1 Definition .................................................................................................................................... 17

8.2 Key features ................................................................................................................................ 17

8.3 Sales promo objectives ............................................................................................................... 17

8.4 Sales promo approach ................................................................................................................ 17

8.5 Aim Customer loyalty programmes ............................................................................................ 17

8.6 Objective Customer loyalty programmes ................................................................................... 17


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9 Direct Marketing ........................................................................................................................ 18

9.1 Definition .................................................................................................................................... 18

9.2 Tools ............................................................................................................................................ 18

9.3 Advantages .................................................................................................................................. 18

9.4 Disadvantages ............................................................................................................................. 18

10 Design, Packaging and Merchandising, POS ................................................................................ 19

10.1 Design packaging Concern .......................................................................................................... 19

10.1.1 Good design ........................................................................................................................ 19

10.2 Labels .......................................................................................................................................... 19

10.3 Branding advantages ................................................................................................................... 19

10.4 Golden Rules of Branding............................................................................................................ 19

10.5 Merchandising ............................................................................................................................ 20

10.6 POS .............................................................................................................................................. 20

10.7 Six steps to an improved Identity ............................................................................................... 20

11 Advertising Agencies .................................................................................................................. 21

11.1 Learn ........................................................................................................................................... 21

11.2 Advertisers options ..................................................................................................................... 21

11.3 Types of agencies ........................................................................................................................ 21

11.4 Benefits ....................................................................................................................................... 21

11.5 Key staff agency .......................................................................................................................... 21

11.6 Review agencies .......................................................................................................................... 21

11.7 Selection Criteria ......................................................................................................................... 22

11.8 Partnership .................................................................................................................................. 22

11.9 Barriers to partnership ................................................................................................................ 22


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1 General

1.1 Definition MC The process of presenting an integrated set of stimulus to a market with the intent of evoking desired

responses within that market set and setting up channels to receive, interpret and act upon messages

from the market for the purposes of modifying present company messages and identifying new

communication opportunities - Delozier (1976)

‘The process by which a marketer develops and presents stimuli to a defined target audience with the

purpose of eliciting a desired set of responses’ (Yeshin)

‘All elements in a brand’s marketing mix that facilitate exchanges by establishing shared meaning with

customers’ (Shimp)

1.2 Learn Consider learning Marketing Research; though not very significant

1.3 Corporate PR Cutlip et al (1985) ‘a function of management seeking to identify, establish and maintain mutually

beneficial relationships between an organisation and the various publics on whom its success or failure

depend’

1.4 Marketing PR Cutlip et al (1985) ‘not only concerned with organisational success and failure, but also with specific

publics: customers, consumers and clients with whom exchange transactions take place’

1.5 Marketing Mix The 7 p’s

Price

Promotion

Place

Product

Physical

People

Process


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1.6 Promotional Mix A business' total marketing communications programme is called the "promotional mix" and consists of

a blend of advertising, personal selling, sales promotion and public relations tools

Advertising

Personal Selling

Sales Promotion

Publicity

1.7 Promotion Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix.

1.8 Sales Promotion “An activity designed to boost the sales of a product or service. It may include an advertising campaign,

increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging

demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price

reductions, door-to-door calling, telemarketing, personal letters on other methods”.

Price promotions Coupons Gift with purchase Competitions and prizes Money refunds Frequent user / loyalty incentives Point-of-sale displays

1.9 Marketing and Communications Messages and related media used to communicate with a market.

Advertising

Branding

Direct marketing

Graphic design

Marketing

Packaging

Promotion

Publicity

Sponsorship

Public relations

Sales

Sales promotion

Online marketing

MC Exam Summary 2 Marketing

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2 Marketing

2.1 Learn - Where does MC fit in

- How does MC work

2.2 Marketing Communications Advertising

Sponsorship

Design/Packaging

Sales Promotion

P.R./Publicity

Direct Marketing

2.3 Promotional Mix Factors Resources available

Promotional message

Complexity of product/service

Market type/size/location

Distribution

Marketing strategy/life-cycle stage

State of buyer readiness

Competitors’ actions

2.4 Effective MC Effective communication involves sending a stimulus to the senses and gaining a response - a

two way process

Messages received depend on the sender, the tone and the language

Message persuasiveness affects response

Audiences need to be on the same wavelength - interpretation is critical

Response and understanding stem from existing knowledge and attitudes

Repositioning is more difficult - reinforcement is more effective than conversion

Advertisers have low credibility - they are expected to be biased

Actions speak louder than words?

All organisations communicate

Images and impressions have a profound effect on success (the ‘Branson’ factor)

MC Exam Summary 2 Marketing

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Who do they target? Two step and multi step models

Introduce opinion leaders, style leaders (influencers) and listeners rather than the mass

audience

2.5 Communication process

Schramm (1955)

MC Exam Summary 3 Segmentation

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3 Segmentation

3.1 Learn How to decide upon target market

3.2 Definition ‘The division of the market into customer subsets, one or more of which becomes the target market,

each with a distinct marketing mix

3.3 Objective To identify populations that offers an opportunity to focus clearly on their needs and satisfy them

3.4 Criteria Geography

Demographics (age/sex/family/income/ occupation/family life cycle)

Geo-demographics

Psychographics (lifestyles, reflecting social class, personalities, etc.)

Behaviour traits (in terms of purchasing occasions, benefits sought, loyalty status, etc.)

3.5 Most succesful Most successful when targeted segments and strategies are:

Measurable and identifiable

Substantial and profitable

Accessible

Actionable

3.6 Segmentation model Stage One: Market Segmentation

Identify customer needs and segment the market Develop profiles of resulting segments

Stage Two: Target Marketing Evaluate attractiveness/growth potential Select target segments

Stage Three: Market Positioning Identify differential advantage for each segment Formulate marketing/communications strategy

Stage Four: Market Planning Develop plans for each segment

Develop marketing organisation

MC Exam Summary 4 Media

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4 Media

4.1 Learn - Combination of traditional media (tv, radio,billboards) and how they started to lose out to new

media (internet) and overall

4.2 Traditional media types Tv

Outdoor

o Billboards

o Stadia/trackside advertising

o Vehicle sides

o Miscellaneous

Press

Newspaper

Magazines

Radio

Cinema

4.3 New media Internet

Mobile phones

Computer games

Multimedia/CD-rom

Digital television

4.3.1 Digital Media

Add depth and engagement to standard advertising strategies

Generate leads on a cost per acquisition basis through paid search

Employ multiple channels: ‘media meshing’

But ... the web and mobiles do not replace ‘offline’ media.

4.3.2 Use of ‘tools’ in new media

Video

Sound and music

Graphics

Animation

Internet links

MC Exam Summary 4 Media

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4.4 Media vehicle selection Choice criteria:

Audience profile

Product nature

Message types

Reach/cost

Reproduction quality/prestige/image

Submission deadlines

MC Exam Summary 5 PR

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5 PR

5.1 Learn Types of PR

Who are they looking to address (PR audiences)

Methodologies

5.2 PR Definition ‘All forms of planned communications between any organisation and its publics with the purpose of

establishing mutual goodwill and understanding’ (Yeshin)

‘Encoding and communicating messages to targeted audiences in order to influence a desired response’

(PRCA)

5.3 Publicity definition Any communication concerning a company, product or service which is not paid for, or sponsored’

(Yeshin)

5.4 PR Types Marketing P.R.

Defensive/reactive P.R. (issues management)

Proactive P.R. (lobbying)

Corporate P.R. (stakeholder relations)

5.5 PR Publics Commercial

Internal

Financial

Authorities

Media

Opinion formers

Community/society

5.6 PR Vehicles • Media contact • News stories/Press releases • Advertiser funded programmes/advertorials • Media events • Press office • Sponsorships/Exhibitions • Corporate hospitality

MC Exam Summary 5 PR

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5.7 Cause related marketing PR

Sales Promotion

Corporate philanthropy ... where customers engage in commercial exchanges with firms that produce revenue for good causes e.g. Comic Relief, Tesco’s Computers for Schools, RSPCA mastercard

5.8 Objectives of PR Create/maintain identity and image

Enhance the organisation’s standing

Communicate its philosophy and purpose and the benefits of its products and services

Improve media relations/manage publicity

Develop good employee relations

Aid liaison with and lobbying of key publics

Plan/manage crises and situations

MC Exam Summary 6 Sponsorship

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6 Sponsorship

6.1 Learn - How it works

- Gaining prestige, additional value

- Budget and targeting

6.2 Definition ‘The connection of a company/product with a public event in which the manufacturer covers part or all of the costs in return for the benefit of association’ (Yeshin) ‘Investment by a company in special events or causes in order to achieve promotional or corporate objectives’ (Shimp)

6.3 Aim of sponsorship Develop customer/consumer relationships

Foster goodwill

Build profile/prestige/reputation/image

Enhance brand equity

Increase brand name retention and reduce brand decay

Generate financial return (sales/market share)

6.4 Key considerations Relevance to target audience/brand

Value for money

Media coverage available i.e. PR potential

Can media coverage be leveraged? (e.g. innovative use of media)

Compatibility

Integration potential

Lifespan/long term value

Uniqueness/popularity

What elements are contracted? (Beware ‘ambush’ marketing!)

Editorial v. advertising value

6.5 Sponsorship ‘tools’ Active in sport, education, the arts, media, charitable enterprises, etc.

Supports employee/government/community relations through emphasising social responsibility

Typically a support communications activity

MC Exam Summary 7 Advertising

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7 Advertising

7.1 Learn - Why advertise

- When to advertise

- How does it work

- Background info

o Aida

o Hierarchy of effects

7.2 Definitions Any form of paid-for media used by marketers to communicate with their target audiences’

(Yeshin)

‘Mass or direct-to-consumer non-personal communication paid for by a firm or individual

identified in the advertising message, hoping to inform or persuade a specific target audience’

(Shimp)

7.3 Reasons for advertising Differentiates standard products

Reaches large numbers of end users i.e. where purchase amounts are small and volumes are high

Bypasses intermediaries

Supports new products

Highlights auxiliary services

Reinforces status and justifies premiums

7.4 Barriers Insufficient resources

Unquantifiable benefits

Lack of focus

Talking a good game, not playing one

7.5 How advertising works Persuasion model

Recency model

Low involvement processing

Permission marketing

7.6 AIDA Awareness – Interest – Desire - Action

MC Exam Summary 7 Advertising

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7.7 Hierarchy of effects Attention - Knowledge – Liking – Preference – Action

7.8 Advertising model (process) A chain of processes must be initiated:

• Creating a cognitive structure (message considered and understood)

• Creating a motivational (affective) structure (changes attitudes)

• Creating a behavioural (conative) structure (brings about action)

Complex and interrelated, sometimes incomplete or in a different order

MC Exam Summary 8 Sales Promo

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8 Sales Promo

8.1 Definition The use of short-term, often tactical, techniques to achieve short term sales objectives’. (Yeshin)

‘Marketing activities intended to stimulate quick buyer action by offering extra benefits to customers’

(Shimp)

8.2 Key features Uses traditional and new or ‘alternative’ media

Takes place (usually) over a pre-determined or limited period

At consumer, retailer or wholesaler levels

Stimulates trial/increases demand/increases availability

8.3 Sales promo objectives Creating awareness and generating trial

Rewarding loyalty

Increasing repeat purchase

Widening usage

Renewing/adding value

Creating interest

Gaining intermediary support and display

8.4 Sales promo approach PULLS the product through the channel by appealing to (all? deal prone? loyal?) consumers

PUSHES the product into the channel by incentivising intermediaries

ENCOURAGES the sales force e.g. payment by commission

8.5 Aim Customer loyalty programmes Avoid short termism

Build relationships with targeted groups

Respond to customer needs/profiles

Track purchase patterns

Generate additional sales by appealing to existing customers and winning new ones

8.6 Objective Customer loyalty programmes Increased sales, profit and market share

Increased frequency of purchase

Increased spend

New customers

Relationship building and customer loyalty

MC Exam Summary 9 Direct Marketing

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9 Direct Marketing

9.1 Definition Communications where data are used systematically to achieve quantifiable marketing objectives and

where direct contact is invited or made between a company and its customers’ (DMA UK)

‘An interactive system of marketing which uses one or more advertising media to effect measurable

response and/or transactions at any location’ (ADMA)

9.2 Tools Direct Mail

Telemarketing, e-mail and SMS/mobile marketing

Direct Response Advertising (including ‘digital interactive’)

Field marketing

Inserts

Door to Door/on location leafleting

Mail Order catalogues/customer mags

9.3 Advantages Reduces wastage (cost efficient/targeted)

Provides measurable results

Establishes direct links with consumers

Replaces monologue with dialogue

Customises product offers

Immediate mass/micro marketing

9.4 Disadvantages Intrusive nature

Image

Set up costs

Distribution channel conflict

List problems

MC Exam Summary 10 Design, Packaging and Merchandising, POS

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10 Design, Packaging and Merchandising, POS

10.1 Design packaging Concern Quality level/consistency

Features

Design

10.1.1 Good design

Attracts attention

Improves product performance

Cuts production costs

Gives competitive advantage

10.2 Labels Identify the product

Grade the product

Promote the product

Legislation should prevent:

Misleading/insufficient information

Inadequate safety precautions

10.3 Branding advantages Helps identification

Helps evaluate quality

Reduces risk

Conveys status

Facilitates n.p.d.

Spreads promotional benefits

Leads to increased loyalty/product value

10.4 Golden Rules of Branding Ensure product quality lives up to image

The first brand gets the best grazing

Adopt an unique positioning concept

Don’t change it without good reason

Tell the target market

Repeat the message with consistency

No point branding a dead cow!

MC Exam Summary 10 Design, Packaging and Merchandising, POS

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10.5 Merchandising Effective product display and promotion at the point of sale intended to:

Make more efficient use of floor space

Increase visibility for consumers

Improve retail traffic flow/allow signposting

Attract attention and communicate offers

Complement image and increase sales

Aim is to allow as wide a range as possible to be stocked, whilst:

Maintaining aisle width/minimising clutter

Encouraging browsing

Allowing easy access/product identification

Focusing on most profitable lines

Not making the outlet seem overwhelming

10.6 POS Shelf edge material/shelf display units

Window/on shelf displays

Dump bins/off shelf/gondola end displays

Posters/cut outs/showcards

Shelf space/colour blocking

Video walls/spotlighting/interactive systems

10.7 Six steps to an improved Identity Know your market

Analyse your product/service

Establish actual and potential USPs

Determine effective strategies

Monitor, evaluate and control

Tell what you sell

MC Exam Summary 11 Advertising Agencies

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11 Advertising Agencies

11.1 Learn How many would you invite

How to review agencies

11.2 Advertisers options Develop advertising through the media

An ‘in house’ advertising department

Use a communications consultancy

Use a combination of both!

Use a full service advertising agency

Use specialist agencies

11.3 Types of agencies Full service agencies provide all round skills and experience, objectivity and an integrated

approach, but lack specific expertise

A la carte approach ensures specialist expertise, but may be less well coordinated

Choice depends on client ability, overall budget and communication requirements

11.4 Benefits Reduced contact costs

Time savings

Specialist knowledge

Economies of scale

Creative qualities

11.5 Key staff agency Managing Director

Account team

Creative team

Production/traffic department

Planning department

Media planners/buyers

General management services

11.6 Review agencies Statutory reasons

Keep an agency on its toes

Unsuccessful advertising

Poor agency performance

Finding out what’s there

New client personnel

MC Exam Summary 11 Advertising Agencies

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11.7 Selection Criteria Creative ideas/strategy

Media buying/planning proposals

Personnel

Agency approach (including size issues)

Agency background/expertise/geography

Services offered

Cost

11.8 Partnership Benefits from meeting expectations based on:

Agency market knowledge (woods and trees?)

Successful creative executions

Proactive/reactive approach as required

Through the line solutions

Media performance (media neutral planning)

Communication and reward

11.9 Barriers to partnership Junior decision makers/lack of board access

Unfair remuneration (clients wanting more for less!)

Poor/unclear briefs

Lack of trust/openness

Lack of time

Client personnel changes Source: AAR/Express Train

marketing communications exam summary

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