Topic 8: Marketing Communication

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Topic 8 Marketing Communication

• Principles of Marketing

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Some Definitions

• ____________________________
• Marketer initiated techniques directed to target
  audiences in an attempt to influence attitudes
  and behaviors
• ______________________________
• Strategic integration of multiple means of
  communicating with target markets to from a
  comprehensive, consistent message

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Promotion Mix

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______________________Process of establishing
shared meaning, exchanging ideas or passing
information between a source and a receiver
Channel Or Medium of Trans- mission
Receiver or Audience
Message Coding Process
Message Decoding Process
Source
Feedback
NOISE NOISE
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Marketing Communications Planning

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Determine the Marketing Communication Budget

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Marketing Communication _____________

• Stereotypes?
• Deceptive?
• Raises prices?
• Create needs? Increase materialism?
• Invasion of privacy?
• What about harmful products?

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____________________

• Corporate Image
• Advocacy
• Pioneer
• Public Service
• Business to Business

• Cooperative
• Classified
• Direct Response
• Reminder or Reinforcement

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Consumer Advertisement Processing
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_____________________
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________________________

• Objective claims
• Subjective claims
• Expansion
• Value-based
• Celebrity endorsement

• Comparative
• Direct
• Indirect
• Appeals
• Emotional
• Humor
• Fear

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Considerations

• Look at audience size composition compared to
  cost
• Magazine CPM (ad cost X 1000)/circulation
• Pass-along rate

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Publicity/Public Relations

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____________________

• Media and non-media marketing communication
  employed for a predetermined limited time to
  stimulate trial, increase consumer demand or
  improve product availability
• Consumer or trade directed
• Offers incentives for action
• Short term results

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________________________

• Stimulate trial
• Increase consumer consumption
• Encourage repurchase
• Neutralize competition
• Increase sales of complementary products
• Stimulate impulse purchase
• Allow flexible pricing

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________________________

• Price
• Cent-off offers
• Price-pack
• Coupons
• Free standing insert
• On-shelf
• Checkout dispenser
• On-line coupons
• Money refunds or rebates
• Cross-promotions

• Contests, games and sweepstakes
• Premiums
• Free sample
• Demonstrations
• Frequent-user incentives
• Advertising specialties

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_______________ Objectives

• Gain or maintain distribution
• Influence resellers to promote product
• Influence resellers to offer a price discount
• Increase reseller inventory
• Defend against competition
• Avoid reduction of normal prices

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______________________

• Trade allowances
• Slotting
• Buying
• Display
• Advertising
• Cooperative advertising
• Dealer loaders
• Buyer loaders
• Display loaders
• Trade contest
• Trade shows

• Point of purchase displays (POP)
• Aisle interrupter
• Dangler
• Dump bin
• Glorifier
• Wobblers
• Lipstick board
• Necker
• Y.E.S. unit
• Training programs
• Push money (spiffs)

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Problems with Promotions

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Advertising Dominates When
Personal Selling Dominates When
Consumers
Market large, disperse and final consumers are
involved
Market small, concentrated Organizational
customers
Budget
Larger
Smaller, tailored to needs of specific customers
Products
Simple, inexpensive, Differential advantages
clear
Complex, expensive Differential advantages unclear
Competition
Competitors use it
Competitors use it
Media
Wide range available
Media unavailable or inefficient
Place of Purchase
Customers expect retail or Mail order, etc.
Customers expect personal assistance
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Elements of Personal Selling

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_____________________

• Establishing objectives
• Determining sales force size
• Recruiting and selecting
• Training salespeople
• Compensating salespeople
• Motivating salespeople
• Managing sales territories
• Control and evaluations

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Compensating Salespeople

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______________________

• Objective establish relationships by soliciting
  a direct and immediate response from prospects or
  customers
• Targets a carefully selected audience
• Involves two-way communication
• Is quite measurable

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_____________________

• Pros
• High response rate
• Personalization
• 100 target market coverage
• Fewer distraction
• Con
• High cost
• Delivery problems
• Junk mail

• Types
• Sales letters
• Postcards
• Catalog
• Video catalog
• Promotional video/audiocassette
• Promotional interactive diskette
• Leaflets and flyers
• Statement stuffers

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_______________________

• Infomercials - Pros
• Not lost among other ads
• Detailed explanations
• Very measurable
• Infomercials Cons
• Late night or cable only
• High cost
• Poor image

• Direct response TV
• 800or 900 number
• Call now to . . .
• Direct response radio
• Highly targeted audience
• Highly distracted audience

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______________________

• Ad with address, order form, coupon, telephone
  number or Website
• Reader response or reader reply cards
• Floppy disks

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________________________

• Less expensive than personal selling, but most
  expensive direct marketing form
• Outbound marketer calls customer
• Inbound customer calls marketer
• POOR image
• Invasion of privacy
• Misleading tactics

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____________________

• Internet
• SPAM
• Hackers
• Security
• Interactive kiosks
• Catalogs, maps
• Registries
• Fax machines