BA230-Marketing Communication

Market

Mix

Product Decisions

• Quality

• Design

• Branding

• Packaging

• Customer Service

• New Products

• Product mix, line and life

cycle strategies

Price Decisions

• Objectives

• Strategies

• Methods

• Setting pricing

• Price changes

• Discounting

Place

• Channel type

• Channel mgt

• Supply chain

• Distribution

• Logistics

• Transportation

• Service levels

Promotion

• Goals

• Objectives

• Mix

• Budget

• Messages

• Media

• Metrics

Communication Goes Beyond

the Specific Promotion Mix

Elements

• Although the promotion mix is the company's primary communication activity, the entire marketing mix -- promotion and product, price, and place -- must be coordinated for the greatest communication impact.

Need for Synergy

• Besides communication

tools, all the marketing mix

elements should work

together harmoniously for

maximum informational and

persuasive effect.

• The major goal is to send a

consistent message to

customers.

Marketing Mix Influences on

Consumer Perception

• Nature of Product

• Physical Attributes of Product

• Package Design

• Brand Name

• Advertisements & Commercials

• Point of Purchase Displays

• Distribution of Products

1. Product

• Individuals exchange something (e.g. money) in return for some benefit.

• The entire product experience provides value to customers.

• The product must be compatible with needs of the target audience.

Winning the Battle of Perceptions

• Many people believe that the

basic issue in marketing is …

convincing customers you have

a better product, that in the long

run the best product will win.

• Not true … It’s an Illusion…

there is no objective reality. The

perception is the reality.

1. Product

• The product is what the company has to offer, including its... – Design

– Quality

– Features

– Varieties

– Brand name

– and logo

a.) Perceived Quality of Products

Essential Cues

• Physical characteristics of the

product (such as size, color,

flavor, or aroma) that serve to

influence the consumer’s

perceptions of product quality.

• For instance, a toilet tissue is

preferred for superior durability

and softness and a television for

movie-quality picture and sound.

a.) Perceived Quality of Products

Essential Cues

• Cues external to the product (such

as price, store image, or brand

image) that serve to influence the

consumer’s perception of a

product’s quality.

• For instance, BMW’s slogan has

helped build its brand image: "The

ultimate driving machine”

b.) Brand Message

• Almost anything related to brand conveys a message about the value of product.

• Two different products serving the same need can be compared on the basis of price for example: 5 dollars and 45 dollars per product.

• Consider a toothpaste in a supermarket which is covered with dust and placed at the last shelf.

b.) Brand Name

• A name that provides the customer

with an easily identified theme to

increase product recognition.

• The brand name fulfills a special

role acting as a summary message

on a package.

• Consumers use brand name as

signals of product quality.

b.) Brand Value

• Coca Cola: $79.213 billion

• IBM: $78.808 billion

• Microsoft: $59.546 billion

c.) Purchasing and Consumption

Processes are Related to Senses

Occurs through stimulation of our five senses.

– touch

– taste

– smell

– sight

– hearing

• Colors and learned associations

• Colors and mood

• Red: powerful, dangerous, exciting, hot,

appetizing→ Burger King, KFC

• White: clean, pure→ laundry detergents

c.) Sensory Receptor: Sight

• Green: natural, peaceful, harmonious, environment

friendly→ BP logo

• Blue: authoritative, respectful, meditative

cool- cold→ Arko cooling after shave cologne

• Black: cold, sophisticated, prestigious

→ Johnnie Walker Black Label scotch

→ Mont Blanc pen

c.) Sensory Receptor: Sight

c.) Sensory Receptor: Sight

• Shape perception

• Long and large shapes are perceived as strong and effective.

• Short and thin shapes evoke elegance, fragileness.

• Round shapes are perceived as feminine, harmonious.

• Cornered shapes evoke dynamism, masculinity.

c.) Sensory Receptor: Smell

• Smell and emotions→ perfumes

• Smell& childhood associations→

Pelikan

c.) Sensory Receptor: Touch

• Touch→ Shetland sweater

→ Solo

→ Linen pillow

c.) Sensory Receptor: Taste

• Culturally determined

• Lifecycle changes→ Becel

• Negative taste experiences

d.) Packaging

• Offers convenience to

consumers

• Prevents waste and make

storage easier

• Promotes the product by

communicating its

features,

uses, benefits, and image

d.) Packaging

•Packaging can improve

perceived product quality.

•Packaging can make the

difference in ease of use,

more distinctive.

•Selpak side opening facial

tissue can be opened either

on the top or on the side of

the pack enabling the easy

use of the product in the car

door pocket in addition to

the conventional access.

2. Price

• One of the most important elements of

the marketing mix.

• The amount charged for a product or

service should support its positioning

• A pricing which is out of

synchronization with the product and

other marketing mix elements will

confuse customers and hence lead to

lower sales.

a.) Price/Quality Relationship

• The perception of price as an indicator of

product quality (e.g., the higher the price, the

higher the perceived quality of the product).

• High price reflects the exclusiveness of the

product for example, Porsche.

• Value for customer = (Perceived Benefits - Perceived

Price)

b.) Consumer Evaluation of Price

• Some products are subject to

objective evaluation by

customers e.g., a car with

features as ABS, air

conditioning, airbags, alarm,

central locking...

• Whereas, some products are

not appropriate for objective

evaluation as beer and

cigarettes.

c.) Pricing

• Fixed and variable costs

• Competition

• Company objectives

• Proposed positioning strategies.

• Target group and willingness to

pay

3. Place

• Where tangible product is purchased or service is provided?

• Is it convenient?

• Where people are predisposed to pay attention to the promotional message?

• Are we taking full advantage of these places?

Place

• Observational studies

have shown that time

in store and amount

spent are positively

related. The more time

in the store, the more

money spent.

• Place is everything for

low-involvement

products.

Place

Store Image

• Overall perception the customer has of the store’s environment.

• Physical elements in a store’s design appeal to consumers’ emotions and encourage buying

• Interior layout, colors, furnishings, and lighting, exterior storefront and entrance design, display windows

Store Image

Store Image