communication strategy 1

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Communication strategy

IBS –MM-7th Sept,2011

Piyoosh Bajoria



Marketing communications is

'promotion' from the marketing mix.

Piyoosh Bajoria



How does promotion start

Piyoosh Bajoria



Audit of all interactions

Target customers may have with theproduct and company

Example

◦ Buyer of Mobile Phone

Talk to someone

See television commercials

Read articles Ads in newspapers and magazines

Visit showrooms

Piyoosh Bajoria



Steps in developing effective

communication

Identifying the target audience◦ Potential buyers or current users

◦ Those who buy or those who influence

◦ Is audience individuals, groups etc

This will affect on what will be said, how it will

be said, when it will be said, and who will say it

Communication objective

Piyoosh Bajoria



Communications Objectives

Informing

◦ Awareness

◦ Interest

◦Benefits

◦ Other information

Persuading

◦ Preference based on

competitive

advantages

◦ Brand switching or

prevention of brand

switching

Reminding◦ Trigger memories

◦ Maintain preference

and buying habits

Piyoosh Bajoria



Elements of the Promotion Mix

Advertising

Sales Promotion

◦ Sales

◦ Coupons

◦ Rebates◦ Premiums

Personal selling

Public relations

Direct marketing

Piyoosh Bajoria



Promotion by Decision Stage

Pre-purchase

◦ Influence decision,

preference

◦

Samples to inducetrial

Purchase◦ Sales promotion

◦ Point-of-purchase (POP)

displays

Post-purchase

◦ Increase repurchase

propensity

Piyoosh Bajoria



Some Promotional Objectives

Brand awareness◦ Knowledge of product category

Existence

Benefits

Functions

Technology

◦ Knowledge of brand differences

Brand attitude◦ Favorable beliefs about the

brand

Overall

Relative to competitors

Product category or

brand trial

Brand preference◦ Willingness to pay a premium for the

brand

◦ Resistance to competitor promotions

(e.g., sales, coupons)

◦

Willingness to buy under lessconvenient circumstances

Increase in product

category or brand usage◦ Quantity used

◦

Frequency used◦ Scope of uses

Increase in short term

sales

Piyoosh Bajoria



Some Media Alternatives

Television

◦ Conventional advertisements

◦ Infomercials

◦Sponsorship programming

◦ “Placements”

In programming

“Superimposed”

Radio

Magazines

Newspapers

Outdoor

Internet

Point-of-purchase

Other

◦ Movie theaters

◦

On other products

Piyoosh Bajoria



Choosing Media- Impersonal &

Personal

◦ Impersonal◦ Print media (newspapers, magazines, direct

mail)

◦ Broadcast media (radio, television)

Display media ( hoardings, signs, posters) Online and electronic media (online services,

websites, CDs, DVDs

◦ Events- grand openings, shows and exhibits,public tours, and other communications with the

public◦ Pharmaceutical companies aim at most

influential doctors and medical experts topopularize their drugs- the so called “ThoughtLeaders” in the profession

Piyoosh Bajoria



How Advertising Works:

A Planning Model Revisited

Classic model used by Foote, Cone &Belding.

First proposed in 1980

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4 Product categories

High involvement

Low involvement

“ Thinking” products

“ Feeling” products

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Foote, Cone & Belding Grid

1InformativeThe Thinker

3Habit

FormationThe Doer

Thinking Feeling

L o w

I n v o l v e m

e n t

2Affective

The Feeler Media:

Image specials

4Self-

SatisfactionThe Reactor

H i g h

I n v o l v e m e n t

Large space

Piyoosh Bajoria



FCB gridThink Feel

H i g h

i n v o

l v e m e n t

L o w

i n v o l v

e m e n t

Life insurance

Auto insurance

Economycar

Car battery

ExteriorHouse paint

Creditcard

Saltedoil

Regularshampoo

Papertowels

insecticide

Insectrepellant

Sports car

Expensivewatch

Eye glasses

Hair coloring

Wall paper

toothpaste jeans

Inexpensivewatch

Greetingcards

Fast foodrestaurant

Liquid handsoap

Piyoosh Bajoria



Factors Affecting the

Promotional Mix

Nature of Product

Stage in PLC

Target Market Factors

Type of Buying Decision

Promotion Funds

Push or Pull Strategy

FactorsAffectingChoice of Promotional Mix

Piyoosh Bajoria



Nature of the Product

◦ Consumer product◦ Industrial Product

Consumer product

◦

Is product a convenience, shopping or specialtyitem?

◦ Convenience goods normally rely heavily onproducer’s ads in addition to dealer displays.Personal selling plays less role

Industrial goods◦ Heavy emphasis on personal selling

◦ Unit sales are large and often made tocustomer’s specifications

◦ Considerable presale and post sale service is

necessary Piyoosh Bajoria



Factors in designing promotion mix

strategies

Advertising

Sales promotion

Personal selling

Public relations

Consumergoods

Personal selling

Sales promotion

advertising

Public relations

Industrialgoods

Relative importance Relative importance

CONSUMER GOODS VS INDUSTRIAL GOODS

Piyoosh Bajoria



Stage in the Product Life

Cycle

Time

Introduction Growth

Maturity

Decline

S a l e s

( $ )

Piyoosh Bajoria



Product Life Cycle and the

Promotional Mix

LightAdvertising,pre-

introductionPublicity,Trial,Personal selling& distribution

Heavy use of advertising,PR for

awareness;salespromotionfor trial

AD/PRdecreaseLimited

SalesPromotion,PersonalSelling fordistribution

Ads decrease.SalesPromotion,

Personal SellingReminder & Persuasive

Advertising,PR, Brandloyalty

PersonalSelling fordistribution

Introduction Growth

Maturity

Decline

S a

l e s ( R s )

Time

Piyoosh Bajoria



Introductory stage◦ Customers do not realize that they want

the product nor do they understand how it

will benefit them Action- inform and educate potential

customers. Tell them that the product exists,

how it might be used and what want satisfying

benefits it provides Stimulate primary demand

Piyoosh Bajoria



Growth Stage◦ Customers are aware of the product

benefits. The product is selling well

Action-Stimulate selective brand demand,increase the emphasis on advertising.

Middlemen share more of the total promotional

burden

Piyoosh Bajoria



Maturity Stage◦ Competition intensifies and sales level off

Advertising is used as a tool of persuasion

rather than only provide information Intense competition forces sellers to devote

large sum of money to advertising and thus

contributes to declining profits

Piyoosh Bajoria



Sales decline stage◦ Sales and profit are declining

◦ New and better products are coming into

the market Action- all promotional effort should be cut back

except when trying to revitalize the product

Piyoosh Bajoria



Target Market Characteristics

FOR:

Widely scattered

market

Informed buyers

Repeat buyers

Advertising

Sales Promotion

Less Personal Selling

Piyoosh Bajoria



Type of Buying Decision

Advertising

Sales PromotionType of

Buying DecisionaffectsPromotionalMix Choice

Complex

Routine

Personal Selling

Not Routineor Complex

Advertising

Public Relations

Piyoosh Bajoria



Promotion Mix strategies

Producer

Producer

Retailers

wholesalers

consumers

Retailerswholesalers

consumers

PUSH Strategy

PULL STRATEGY

DemandDemand

Producer marketingActivities (consumerAdvertising,, sales promotion,other

Producer marketing activitiesPersonal selling, trade promotion

Reseller marketingActivities (personalSelling, advertising, sales promotion

Piyoosh Bajoria



Available Funds

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

Piyoosh Bajoria



Sales Promotion

Sales promotions are short-term

incentives designed to stimulate purchase

among consumers or trade

Piyoosh Bajoria



Sales Promotion

Samples Coupons Cash refunds (rebates) Premiums Prizes (contests,

sweepstakes, games) Patronage awards

Free trials

Product warranties Tie-in promotions

Cross-promotions

Point-of-purchasedisplays and

demonstrations

Major Consumer-Promotion Tools

Piyoosh Bajoria



Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

PLC Stages:IntroductionEarly Growth

PLC Stages: GrowthMaturity

PLC Stages:

Maturity

Piyoosh Bajoria




Informative Objective

• Increase awareness

• Explain how product works

• Suggest new uses

• Build company image

Piyoosh Bajoria




Reminder Objective

• Remind customers that productmay be needed

• Remind customers where to buyproduct

• Maintain customer awareness

Piyoosh Bajoria



Increase in Product Category or Brand

Usage—Product Category Potential

Examples Scope of uses

◦ Orange juice: “It isn’t justfor breakfast anymore”

◦ Baking soda

◦ ZipLock™ bags

◦ WD-40™ (lubrication andsticker removal)

Quantity used

◦ Calcium supplements

◦

Milk

Frequency used

◦ Cosmetics

◦ Deodorant

◦ Wine

◦

Greeting cards◦ Phone calls

Cell phone minutes

Call to family/friends

◦ Hotels, airlines

◦ Conference calls◦ Car engine oil

◦ Canned soup

Piyoosh Bajoria



Advertising and personal selling

importance

SELLING

Pre-Transactional Transactional Post-

Transactional

Advertising

Market Phase

Piyoosh Bajoria

D l i th Ad ti i P



Developing the Advertising Program

IDENTIFYING THETARGET AUDIENCE

SPECIFYINGADVERTISING

OBJECTIVES

DESIGNING THE

ADVERTISEMENT(S)

SETTING THE

ADVERTISING

BUDGET

Piyoosh Bajoria

L l f A di A ti



Mass Markets

Market Segments

Niche Markets

Small Groups

Individuals

Niche Markets

Market Segments

Mass Markets

Levels of Audience Aggregation

Small Groups

Piyoosh Bajoria



Developing Effective Marketing

Communications

Step 1: Identifying the target audience◦ Includes assessing the audience’s

perceptions of the company, product, andcompetitors’ company/product image

Step 2: Cognitive, affective, andbehavioral objectives may be set

Step 3: AIDA model guides messagedesign

Piyoosh Bajoria




Communications

Message Design

Content Structure

Format

Source

Message contentdecisions involvethe selection of appeal, theme,

idea, or USP Types of appeals

◦ Rational appeals

◦ Emotional appeals

◦ Moral appeals

Piyoosh Bajoria




Communications

Message Design

Content Structure

Format

Source

One-sided vs.two-sided

messages

Order of argument

presentation

Piyoosh Bajoria




Communications

Message Design

Content Structure

Format

Source

Message formatdecisions vary withthe type of media, but

may include:◦ Graphics, visuals

◦ Headline, copy or script

◦ Sound effects,

voice qualities◦ Shape, scent,

texture of package

Piyoosh Bajoria




Communications

Message Design

Content Structure

Format

Source

Message sourcecharacteristics caninfluence attentionand recall

Factors underlyingperceptions of source credibility:◦ Expertise

◦ Trustworthiness

◦ Likability

Piyoosh Bajoria



Developing and Managing the

Advertising Campaign

The Five Ms of Advertising

Mission

Money

Message

Media Measurement

Objectives can be

classified by aim:

◦ Inform◦ Persuade

◦ Remind

◦

Reinforce

Piyoosh Bajoria





Factors consideredwhen budget-setting:◦ Stage of product life

cycle◦ Market share and

consumer base

◦ Competition and clutter

◦ Advertising frequency◦ Product substitutability


Mission

Money

Message

Media Measurement

Piyoosh Bajoria





Factors considered

when choosing the

advertising message:◦ Message generation

◦ Message evaluation and

selection

◦

Message execution◦ Social responsibility

review


Mission

Money

Message

Media Measurement

Piyoosh Bajoria





Developing mediastrategy involves:◦ Deciding on reach,

frequency, and impact◦ Selecting media and

vehicles

◦ Determining media

timing◦ Deciding on

geographical mediaallocation


Mission

Money

Message

Media Measurement

Piyoosh Bajoria





Newspapers

Television

Direct mail Radio

Magazines

Outdoor Yellow pages Newsletters Brochures

Telephone

Internet

Major Media Types

Piyoosh Bajoria





Evaluating

advertising

effectiveness◦ Communication-

effect research

◦

Sales-effect research


Mission

Money

Message

Media Measurement

Piyoosh Bajoria



Some Advertising Strategies

Comparative ads◦ Illegal in most countries

◦ Generally very disliked byU.S. consumers but stillrelatively effective

Humor appeal◦ A way to get attention to the

advertisement—but theconsumer may remember the humor and not what theproduct featured was

Adding beliefs

Classical conditioning(association)

Fear appeal◦ To be effective:

Feared stimulus must beof medium intensity—enough to motivateaction but not so intensethat the individual “tunesout” the ad

A clear solution must beoffered—e.g., useListerine™ to avoidtooth loss due togingivitis

Repetition

Celebrityendorsements

Piyoosh Bajoria



Executing The Advertising Program

Pre-testing

◦ Several “story boards” or actual ads are created

◦ Ads are tested on consumers Instant response technologies (consumers either rate approval

or have physiological measures taken throughout an ad

duration

◦

The best performing ad or ads are chosen subjectto constraints imposed (e.g., need to specify a

certain message or use certain types of models)

Possible redesign

Carrying out advertisement

◦ Full service agencies

◦ Limited service agencies

◦ In-house

communication strategy 1

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