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Part 3: The marketing mix

Chapter 14: Marketing communications

Step 5: Design the marketing strategy

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 14–2

When we finish this lecture you should:• Understand the concept of integrated marketing

communications and why marketers use a mix of promotional methods

• Understand how the Internet has radically changed the communication process

• Know the difference between pull and push strategies• Understand how communication and the adoption

processes can affect the planning of marketing communications

• Know how typical marketing communications plans are designed and who should manage them

• Understand how to approach marketing communications in international markets

• Know what an advertising agency is and how it operates

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 14–3

A good definition of marketing communications (promotion)

• Consists of persuasive communication• Involves communicating information

between sellers and potential buyers and/or others involved in distributing the product

• Tries to influence attitudes and behaviour• The marketing manager’s main promotional

task is to inform target customers that the right product is available at the right place and the right price

(Marketing: Creating and Delivering Value, 4/e, Quester et al. p. 452)

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Figure 14.1 The communication process

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The marketing communications process

• Source—the sender of a message• Encoding—the source deciding what to say

and translating it into words or symbols that convey meaning to the receiver

• Message channel—the carrier of the message

• Decoding—the receiver translating the words or symbols back into the message

• Receiver—the potential customer• Noise—any distraction that reduces the

effectiveness of the communication process

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Figure 14.2 Encoding and decoding depend on a common frame of reference

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Figure 14.3 A model of customer-initiated interactive communication

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Figure 14.4 Marketing communications seek to shift the demand curve

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The marketing communications mix—an overview

• There are many choices of methods and techniques for achieving marketing communications objectives

• Major categories– Advertising – Direct-response promotion (including Web sites

and the Internet)– Sales promotion– Sponsorship– Publicity and public relations– Personal selling

• Basic objectives include– Informing, persuading and/or reminding

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 14–10

Exhibit14.1b

Visually compelling advertisements can communicate well with few words.

COUR

TESY

OF

COLG

ATE

PALM

OLI

VE.

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 14–11

Figure 14.5 Basic promotion methods and strategy planning

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Exhibit 14.3a

Sponsoring an event, a specific cause or charity may enhance a brand in the eyes of consumers.

COUR

TESY

OF

DICK

SM

ITH

FOO

DS.

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 14–13

Factors affecting the marketing communications mix

• Stage in the product life cycle• Stage in the consumer’s adoption process

– AIDA Model– Different marketing communication mixes suit

different adopter groups

• Nature of competition and marketing communications requirements

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Figure 14.6 Relationship of marketing communications objectives, adoption process and the AIDA model

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Marketing communications strategies

• The ‘PUSH’ marketing communications strategy– using normal promotion efforts to sell the

marketing mix to channel members

• The ‘PULL’ marketing communications strategy– getting customers to ask intermediaries for the

product, usually because of promotion directed to final consumers or users

• Some combination of the two methods is usually required

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Figure 14.7 Promotion may encourage pushing, pulling, or both

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Marketing communications budget

• How much to spend on each type of marketing communication is an important question– There are some economies of scale in marketing

communications– Not all companies can afford to use mass

communications methods

• Budget allocations must be focused on the overall strategy

• Many people believe that most of a marketing communications budget is spent on advertising, because it is so visible in everyday life

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Marketing communications budget (continued)

• Most companies spend less on advertising than on personal selling and promotions– Sales promotions can be expensive– Most retail sales are completed by sales assistants– Much personal selling occurs in the distribution

channels and in business markets

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Integrating marketing communications efforts

• Integrated marketing communications can equally benefit goods and services

• Companies are aware that they can get a better return on their investment if their marketing technique reinforces their other marketing communications techniques

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Who plans and manages the marketing communications blend?

• Advertising managers– Manage mass communication methods– Choose appropriate media and develop effective

advertisements– Advertising agencies may be used

• Sales managers– Manage the personal selling effort– Often responsible for good distribution channels

and policies

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Who plans and manages the marketing communications blend? (continued)

• Sales promotion managers– Manage the company’s sales promotions– Vary greatly

• Marketing managers– Evaluate the marketing communications methods– Devise the overall promotional mix

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International aspects of marketing communications

• Difficulties in designing an effective marketing communications program– Language– Will the same benefits be sought by different

consumers?– Can the types of messages used in the domestic

market be effectively used elsewhere?

• Global campaigns– Same segment of consumers around the world– Standardised approach to marketing communications

• Tailoring to meet the needs of the target markets

• Internet opportunities

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Advertising agencies

• Specialists in the planning and handling of mass selling details for advertisers– Full service vs. specialised

• Many small agencies, but large ones handle the bulk of the work– Growth of ‘mega-agencies’

• Agencies can usually be replaced at will• Agencies often work on a commission (a per

cent of media purchases)

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Legal aspects of marketing communications

• ACCC and the Commerce Commission– Control unfair or deceptive practices– Police deceptive advertising or promotion

• Supporting promotional claims– There are many ways to make statistics prove

anything

• Self-regulation– Stop trying to portray ‘me-too’ products as really

new products or better than existing products

Copyright 2004 McGraw-Hill Australia Pty Limited PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 14–25

What we will be doing in the next chapter

• In the following chapter we will be discussing the marketing communications mix and introducing such topics as– Advertising– Direct-response promotion (or direct marketing)– Sales promotion– Sponsorship – Public relations and publicity