Week 6

Marketing Communication

Lecture Outline

Meaning and Purpose of Promotion

Communication Process & Barriers to Communication
Marketing Communication Models & Types of Communication Systems

Selection of Promotional Mix

Advertising & Sales Promotion: Its Meaning and Objectives
Marketing Communication Mix & Selection of Advertising Media
Personal Selling, Public Relations and Publicity

Learning Outcomes

To understand the role of marketing communication

To learn the major steps in developing effective marketing communication
To learn various elements of marketing communication mix and how it

works
To understand how selection of promotion mix is done
To understand what is integrated marketing communication program

Communication

Communication is a process of transferring information from one entity to

another.
Communication is commonly defined as "the imparting or interchange of
thoughts, opinions, or information by speech, writing, or signs".

Although there is such a thing as one-way communication, communication can be

perceived better as a two-way process in which there is an exchange and
progression of thoughts, feelings or ideas (energy) towards a mutually accepted
goal or direction (information)

Communication & Marketing Communication

Communication requires that all parties have an area of communicative
commonality. There are auditory means, such as speech, song, and tone of voice,
and there are nonverbal means, such as body language, sign language,
paralanguage, touch, eye contact, and writing.

Marketing Communication: Are the means by which the firms attempt to inform,
persuade and remind consumers directly or indirectly about the products and
brands they intend to sell.

It is a voice of the company and its brands and are means by which it can establish a
dialogue and build relationships with consumers.

Scope for Marketing Communication

Companies use it as a tool to assist the consumers how and why product is
used.
It provides the information where and when the products and its substitutes are
available
The consumers can come to know about the manufacturers, brands and
company standing in the market.
Marketing communication helps in creating & contributing to brand equity.
It helps the company in driving sales.
It also affect the shareholders value.

Role of Marketing Communication

The Changing Marketing Communication Environment:
Technology has changed the communication process. The rapid diffusion
through broadband internet connection, multipurpose cell phones, portable music
and video players have forced marketer to rethink about practices they are
adopting. Mass Media effectiveness is completely eroded
Marketing Communications, Brand Equity and Sales:
Brand Equity:
Brand Awareness
Brand Image
Brand Responses
Brand Relationships

Elements in the Communications Process

Macro Model of Communication Process

The above figure represents a macro model of communication process with nine
elements.
SENDER & RECEIVER are major parties in the communication process.
MESSAGE & MEDIA are two major tools
ENCODING,

DECODING,

RESPONSE

&

FEEDBACK

are

major

communication functions
NOISE in the environment is last element that may interfere in the
communication process.
The model emphasizes on key factors for effective communication.

Field of Experience

Senders
field

Receivers
field

The more the senders field of experience overlaps that of the receiver, the more
effective the message is likely to be.

The Communications Process

A consumer cant attend to all stimuli,

Selective Attention

instead screen out most. Marketers must work

hard to attract consumers notice. A consumer will notice stimuli that is related to a
current need they anticipate and stimuli whose deviations are large in relation to
normal stimuli.
A tendency in a consumer to interpret

Selective Distortion

information in a way that fits our preconceptions.

So as to be consistent with prior brand, product belief and expectations.

We retain information that supports our attitude and

Selective Retention

belief, but not to what we are exposed to.

Repetition is done

overlooked.

so that message is not

Response Hierarchy Models

Steps in Developing Effective

Communications

Identify Target Audience

Potential buyers, Current User,

Deciders, Influencers, Individuals,
Groups, General or particular public.
Usage rate & Loyalty can also be used

Determine Objectives
Design Communications
Select Channels
Establish Budget
Decide on Media Mix
Measure Results/ Manage IMC

Communications Objectives
To

Category Need

remove

or

satisfy

perceived

discrepancy between a current motivational

state & desired emotional state.

Ability to identify (recognize & recall) the

Brand Awareness

brand within a category. It provides a

foundation for brand equity.

Evaluating a brand with respect to its

Brand Attitude

perceived ability to meet a currently

relevant need

Purchase Intention

Self Instructions to purchase the brand or

to take purchase related action

Designing the Communications

Message Strategy ( What to say): Appeals, themes or idea that will help in the
brand positioning and help establish Points of Parity & Points of Difference.
Some may be related to product or service performance directly (quality,
economy or value of the brand) whereas others relate to extrinsic
consideration(contemporary, popular or traditional).
Buyers expects one of four types of reward from a product: rational, sensory,
social or ego satisfaction.
Buyers might visualize these rewards from results of use experience, product
in use experience or incidental to use experience.
Crossing the four types of rewards with three types of experience generates 12

types of messages.

Creative Strategy (How to say)

Involves expression and content of the message. It is said that if a

communication is ineffective, it may mean the wrong message was
used, or the right one was just poorly used. It is either
Informational and transformational appeals

Positive and negative appeals

Fear

Guilt

Love

Joy

Pride

Humor

Shame

Message Source (Who should say)

Celebrity Characteristics
Expertise Specialized

Knowledge he/she possess

Trustworthiness- Objective &
honest source is perceived to be.
Likeability- Attractiveness

Issues Facing Global Adaptations

Is the product restricted in some countries?

Are there restrictions on advertising the product to a specific target
market?

Can comparative ads be used?

Can the same advertising be used in all country markets?
Can we use country of origin advantage?
Is Globalization or Glocalization the main issue?

Select Communication Channels

Personal channels: Is a face to face, person to audience, over the telephone or
through email. It is mainly used for two reasons:
1. When products are expensive, risky or purchased infrequently.
2. When product suggest something about users status or taste.
Non-personal channels: it is directed to more than one person and include
media, sales promotions, events and experiences and public relations.

Integration of channels: Personal communication is more effective than mass

media but mass media might be the major means of stimulating personal
communication. Ideas flow from radio, television and print to opinion leaders
and then to less media involved population group.

Establish Budget

The most important task is to determine how much to spend on promotion and

marketing communication: There are four common methods:

Affordable
Percentage-of-Sales
Competitive Parity
Objective-and-Task

Decide on Media(Communication) Mix

There are eight major modes of communication and company must allocate the
marketing communication budget over them.
Advertising, Sales promotion, Public Relations & Publicity, Events &
Experiences, Direct Marketing, Interactive Marketing, WOM Marketing & Sales
Force.
Few Examples:
Amway concentrates on personal selling through network marketing.
LOreal spends heavily on advertising.
Videocon, LG & Onida spend on advertising.
Eureka Forbes focuses on door - to Selling through field sales personnel.
Companies

often

communication

substitute

various

methods

during

the

course

of

Characteristics of The Marketing

Communications Mix

Advertising
Pervasiveness
Amplified
expressiveness
Impersonality

Sales Promotion
Communication
Incentive
Invitation
Public Relations and
Publicity
High credibility
Ability to catch buyers
off guard
Dramatization

Events and Experiences

Relevant
Involving
Implicit

Word-of-Mouth
Marketing
Credible
Personal
Timely

Direct Marketing
Customized
Up-to-date
Interactive

Personal Selling
Personal interaction
Cultivation
Response

Measuring Communication Results

Developing and Managing an Advertising Program

Advertising is any paid form of non-personal presentation and promotion of ideas,
goods, or services by an identified sponsor.
It has been derived from Latin word Advertere which means to turn the
attention. They may be listeners, readers, viewers or the onlookers towards the
product or service or an idea.
Attributes of Advertising
Mass Communication process
Informative & Persuasive
Competitive Act
It is paid for
Has an identified Sponsor
Not a part of product

Non Personal Presentation

The Five Ms of Advertising

Advertising Objectives

Informative
advertising

Persuasive
advertising

Reminder
advertising

Reinforcement
advertising

Factors to Consider in Setting an

Advertising Budget

Stage in the Product Life Cycle

Market Share and Consumer Base

Competition and Clutter

Advertising Frequency
Product Substitutability

Developing the Advertising Campaign

It is the message strategy or positioning of an ad what an ad attempts to
convey about the brand.
Its creative strategy how the ad expresses the brand claims.
Advertisers go through three steps:

Message Generation & Evaluation

They are looking for big ideas that connects with consumers rationally as well
as emotionally.
It distinguishes the brand from competitors.
Is broad and flexible enough to translate to different media , markets and time
periods.
Fresh insights are important to have new appeals.

Creative Development and Execution

The ads impact is not on what it says but more importantly how it says. Execution
is decisive.
Television
Advantages

Disadvantages

Reaches broad spectrum of

Brief

consumers

Clutter

Low cost per exposure

High cost of production

Ability to demonstrate product

High cost of placement

use
Ability to portray image and
brand personality

Lack of attention by viewers

Print Ads

Advantages

Disadvantages

Detailed product information

Passive medium

Ability to communicate user

Clutter

imagery
Flexibility
Ability to segment

Unable to demonstrate product

use

Print Ad Components

Picture

Headline

Copy

Signature

Print Ad Evaluation Criteria

Is the message clear at a glance?

Is the benefit in the headline?

Does the illustration support the headline?
Does the first line of the copy support or explain the headline and
illustration?
Is the ad easy to read and follow?
Is the product easily identified?
Is the brand or sponsor clearly identified?

Communicating to the Rural Audience

Large variations in language and culture

Campaigns have to be tailor made for product and region
Product demonstrations in haats, mandis, and melas (fairs) are useful
TV and print media do not reach all villages and all customers
Wall paintings and signboards very popular

Folk theatre, magic shows and puppet shows are also used as a media vehicle

Media Selection
Reach: Number of persons exposed to a particular media schedule at least once
Frequency: Number of times within specified time limit he/she is exposed to it.

Impact: Qualitative value through a given medium.

Exposure: Is the reach times of the average frequency.

Choosing Among Major Media Types

Target Audience and Media Habits

Product Characteristics: Demonstration, Visualization, Explanation, Color

etc.

Message Characteristics: Timeliness and information content.

Cost: Cost per thousand exposures

Major Media Types

Newspapers

Outdoor

Television

Yellow Pages

Direct mail

Newsletters

Radio

Brochures

Magazines

Telephone
Internet

Place Advertising

Billboards
Public spaces
Product placement
Point-of-purchase

Measures of Audience Size( Selecting Media

Vehicle)
The media planner must search for the most cost effective vehicles within each
chosen media type. It depends upon the estimates of audience size, composition
and media cost
Circulation : Number of physical units carrying the advertising.
Audience : The number of people exposed to the vehicle.
Effective audience : The number of people with target audience characteristics
exposed to the vehicle
Effective ad-exposed audience: The number of people with target audience

characteristics who actually saw the ad

Classification of Advertising Timing Patterns

Factors Affecting Timing Patterns

The most effective pattern depends on the communications objectives in

relationship to the nature of product, target customers, distribution channels and
other marketing factors. Timing pattern should consider three factors:
Buyer turnover : Rate at which new buyers enters the market
Purchase frequency: Number of times during the period that the average buyer
buys the product.
Forgetting rate: Rate at which the buyer forgets the brand.

Media Schedule Patterns: Is required in launching a new product

Continuity: Exposures appear evenly
through out a given period.
Concentration: Calls for spending all budget
in a single period.

Flighting: Advertising for a period, followed

by no advertising, then a second period of
advertising activity.

Pulsing: Continuous advertising at low

weight levels reinforced periodically by
waves of heavier activity

Evaluating Advertising Effectiveness

Many advertisers try to measure the communication effect of an ad that is
potential effect on awareness, knowledge, or preference. It also includes measuring
the ad effectiveness on sales.
Communication-Effect Research:

It is also called copy testing determining

whether ads are communicating effectively or not. It may be pre testing or post
testing by an advertiser. Three methods of pre testing are:
Consumer feedback method
Portfolio tests
Laboratory tests to measure physiological reactions- heartbeat, blood pressure,
pupil dilation, perspiration to an ad. Measures attention getting powers

Measuring Sales Impact of Advertising

(Sales Effect Research)

What is Sales Promotion?

Sales promotions consist of a collection of incentive tools, mostly short term,

designed to stimulate quicker or greater purchase of particular products or
services by consumers or the trade.
Whereas advertising offers a reason to buy, sales promotion offers an incentive to
buy.
It includes tools for consumer promotion as well as trade promotion.
Free sample stimulates trial, whereas free advise cements long lasting
relationships.
To attract new triers, reward loyal customers, increase repurchase, attract brand
switchers, Stockpiling and extra purchase

Sales Promotion Tactics

Consumer-Directed

Trade-Directed

Samples

Price offs

Coupons

Allowances

Cash refund offers

Free goods

Price offs

Sales contests

Premiums

Trade shows

Prizes

Specialty advertising

Patronage rewards
Free trials
Tie-in promotions

Using Sales Promotions

Establish Objectives
Select Tools
Develop Program
Pretest

Implement and Control

Evaluate Results

Why Sponsor Events?

To identify with a particular target market or life style

To increase brand awareness

To create or reinforce consumer perceptions of key brand image associations
To enhance corporate image

To create experiences and evoke feelings

To express commitment to community
To entertain key clients or reward employees

To permit merchandising or promotional opportunities

Using Sponsored Events

Establish Objectives
Choose Events
Design Programs
Measure Effectiveness

Ideal Events

Audience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event lends itself to ancillary activities
Event enhances brand image of sponsor

Customer Experience Management: Experience Providers

Communications

Environments

Identity

Internet

Product presence

Electronic media

Co-branding

People

Steps in the CEM Framework

Analyze the customers experiential world

Build the experiential platform
Design the brand experience
Structure the customer interface
Engage in continuous innovation

Why to Engage in Public Relations

Launching new products
Repositioning a mature product
Building interest in a product category

Influencing specific target groups

Defending products that have encountered public problems
Building the corporate image in a way that reflects favorable on
products

Public Relations Functions

Press relations
Product publicity
Corporate communications

Lobbying
Counseling

Major Tools in Marketing PR

Publications
Events
Sponsorships
News
Speeches
Public Service Activities

Identity Media