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Dr. Karim KobeissiIslamic University of Lebanon - 2014Chapter 5: Marketing Communications Marketing Communications - DefinitionMarketing communications represents the collection of all elements in a brands marketing mix that facilitate exchanges by targeting the brand to a group of customers, positioning the brand as somehow distinct from competitive brands, and sharing the brands meaning its point of difference with the brand target market(s). Marketing communications is the "promotion" part of the "marketing mix" or the "four Ps": price, place, promotion, and product.

Marketing Communication Mix The Marketing Communication Mix includes the following elements:AdvertisingSales PromotionPersonal sellingPublic RelationsDirect Marketing

1- Advertising

Advertising includes:Print and broadcast adsPackaging insertsMotion picturesBrochures and bookletsPostersBillboardsPOP displaysLogos

2- Sales Promotion

Sales promotion includes:Contests, games, sweepstakesPremium itemsSamplingTrade shows, exhibitsCouponsRebatesEntertainmentContinuity programs

3- Personal selling

Personal selling includes:Sales presentationsSales meetingsIncentive programsSamplesFairs and trade shows

4- Public Relations

Public relations includes:Press kitsSpeechesSeminarsAnnual reportsCharitable donationsPublicationsCommunity relationsLobbying

5- Direct Marketing

Direct Marketing includes:CatalogsMailingsTelemarketingElectronic shoppingTV shoppingFax mailE-mailVoice mail

Why Marketing Communications Is Important?If customers dont know what goods and services you provide, then your business will not survive in todays competitive marketplace. Effective communication with your customers is vital to ensure that your business generates sales and profits.By taking the time to develop and implement an appropriate marketing communication plan, you will stimulate your target market to buy your products - and manage this within a budget you can afford. What Should We Do?A successful marketing communication plan uses a balance of its five elements in a structured way a single element rarely works well in isolation. The challenge is to select the right mix of promotional activities to suit your particular business at the right time and to then use it correctly to achieve the intended results. The combination of elements you use will depend on:Your product (good, service, idea, place.)Your product life cycleYour target market (behaviors, decision STAGES, influences )The message you wish to communicate (product awareness, benefits)Youre available budget and alternatives of accessible media (tobacco, )In fact, there would be little point in advertising a new gas cooker in a fashion magazine.

Communicational Objectives Across the Product Life Cycle (PLC)IntroductionAdvertising and public relations awarenessSales promotion trialPersonal selling distribution

GrowthAdvertising and PR brand loyaltyLess emphasis on sales promotion3. MaturityAdvertising persuasion, reminderSales promotion market share

4. DeclineReduction in advertising and PRMore emphasis on sales promotions temporary sales

17Communicational Elements by Decision StagePre-purchaseInfluence decision, preferenceSamples to induce trialPurchaseSales promotionPoint-of-purchase (POP) displaysPost-purchaseIncrease repurchase propensity

18Some Media AlternativesTelevisionConventional advertisementsInfomercialsSponsorship programmingPlacementsIn programming SuperimposedRadioMagazinesNewspapersOutdoorINTERNETPoint-of-purchaseOtherMovie theatersOn other products

19Developing the Advertising Program

IDENTIFYING THE TARGET AUDIENCESPECIFYING ADVERTISING OBJECTIVESDESIGNING THE ADVERTISEMENT(S)SETTING THE ADVERTISING BUDGET

20Some Communicational Objectives InformingAwarenessInterestBenefitsOther information

PersuadingPreference based on competitive advantagesBrand switching or prevention of brand switching

RemindingTrigger memoriesMaintain preference and buying habits

21Some Communicational Objectives (con)Brand awarenessKnowledge of product category ExistenceBenefitsFunctionsTechnologyKnowledge of brand differences

Brand attitudeFavorable beliefs about the brandOverallRelative to competitors

Product category or brand trial

Brand preferenceWillingness to pay a premium for the brandResistance to competitor promotions (e.g., sales, coupons)Willingness to buy under less convenient circumstances

Increase in product category or brand usageQuantity usedFrequency usedScope of uses

Increase in short term sales

22Increase in Product Category or Brand UsageProduct Category Potential ExamplesScope of usesOrange juice: It isnt just for breakfast anymoreBaking sodaZipLock bagsWD-40 (lubrication and sticker removal)

Quantity usedCalcium supplementsMilkFrequency usedCosmeticsDeodorantWineGreeting cardsPhone callsCell phone minutesCall to family/friendsHotels, airlinesConference callsCar engine oilCanned soup

23The Communication ProcessThecommunication processis the steps we take in order to achieve a successful communication. It consists of several components: - A senderis the party that sends a message. - A message, which is the information to be conveyed. The sender will need toencodehis message, which is transforming his thoughts of the information to be conveyed into a form that can be sent, such as words.- Amessage channelmust also be selected, which is the manner in which the message is sent. Message channels include speaking, writing, video transmission, audio transmission, electronic transmission through emails, text messages and faxes and even nonverbal communication, such as body language. - A target of the communication. This party is called thereceiver. The receiver must be able todecodethe message, which means mentally processing the message into understanding. If you can't decode, the message fails. For example, sending a message in a foreign language that is not understood by the receiver probably will result in decoding failure.**Sometimes, a receiver will give the senderfeedback, which is a message sent by the receiver back to the sender. For example, a receiver may provide feedback in the form a question to clarify some information received in the message.

Some Advertising StrategiesComparative adsIllegal in most countriesGenerally very disliked by U.S. consumers but still relatively effectiveHumor appealA way to get attention to the advertisementbut the consumer may remember the humor and not what the product featured wasAdding beliefsClassical conditioning (association)Fear appealTo be effective:Feared stimulus must be of medium intensityenough to motivate action but not so intense that the individual tunes out the adA clear solution must be offerede.g., use Listerine to avoid tooth loss due to gingivitis RepetitionCelebrity endorsements27

Example of Humor Appeal Ads

Example of Fear Appeal Ads

Executing The Advertising ProgramPre-testingSeveral story boards or actual ads are createdAds are tested on consumersInstant response technologies (consumers either rate approval or have physiological measures taken throughout an ad duration)The best performing ad or ads are chosen subject to constraints imposed (e.g., need to specify a certain message or use certain types of models)Possible redesignCarrying out advertisementFull service agenciesLimited service agenciesIn-house (Marketing Department)

30Advertising Intensity and Return --A Typical Relationship

Measuring Advertising Effect

Several possible criteria:Scanner dataIndividual TV exposure can be matched against actual purchasesAvailable only for grocery productsIncrease in sales (but it may be impossible to separate effects of different simultaneous ads).Lab studies:RecallAttitude toward productPreference32Japanese AdvertisingUse of Animation & Cartoon Characters

33Breaking Through the Clutter

34ALL OUR COMMUNICATION SHOULD BE CREATIVE!!