Module II Marketing Communications

Astha S. Gupta

Marketing Communications
Informs, persuades and reminds Is part of the marketing mix Includes all the means by which a company communicates directly with potential customers. Attempts to influence feelings, beliefs, or behaviour.

Marketing Communication Methods

Personal selling: Advertising: Sales promotion: Public relations Publicity

Integrated Marketing Communications

A strategic business process used to plan, develop, execute, evaluate coordinated communication within an organizations publics, requiring: Awareness of audiences media habits and preferences Understanding of audiences knowledge and beliefs about the product Use of coordinated media blend linked to a specific objective Key is a single, coordinated message and image thrust
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Basic Communication Elements

A message A source of the message A communication channel A receiver

Communication process components:

Encoding Response Feedback Noise Decoding

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THE CORPORATE COMMUNICATIONS WHEEL

The Trade

THE CORPORATION

Country of Origin

The Corporate Communications Wheel: Balmer and Greyser. Adapted from D. Bernstein (1984)

Corporate Communication V/S Marketing Communications

Corporate communications Aim Scope of communication Target Audience Mode Creativity building company's reputation Company / Enterprise Marketing communications brand building product/produce or service provided by the company customer defined set of channels more room for creativity

multiple stakeholders multiple channels less room for creativity

Consistency

With corporate identity, image, With product and brand philosophy; product & brand attributes attributes 7

What is Advertising?

It is any paid form of non personal presentation and promotion of ideas, goods, services by an identified sponsor. Paid form of non personal presentation and promotion of ideas

The 5 Ms of Advertising
MESSAGE MONEY

MISSION Sales goods Advertising objectives

Factors to consider Stage in PLC Market share & consumer base Competition & clutter Advertising frequency Product substitutability

Message generation Message evaluation Message execution Social responsibility services

MEASUREMENT

Communication impact Sales impact

MEDIA
Major media types Media timing Geographic media allocation
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Advertising Objectives

Informative Persuasive Comparative Reminder (reinforcement)

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Profiles of major media types

Medium Newspapers Television Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet Advantages Flexibility, acceptance Sight, sound, motion Audio selectivity Mass use, cheap Credibility, prestige Flexibility, cheap Local coverage Full control, cheap Flexibility Many users High selectivity Limitations Short life High cost Junk mail Audio Long ad Ltd. Audience High comp. No cost control Overproduction High cost Low no. of users
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ADVERTISING TECHNIQUES
Basic appeal Attention getting headlines Slogans Testimonials Product characters Comparison of products Repetition

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Advertising failure

The desire for instant gratification Trying to reach more people than the budget will allow Assuming the business owner knows the best Unsubstantiated claims Improper use of passive media Creating ads instead of campaigns Obedience to unwritten rules Late week schedules Overconfidence in qualitative targeting Excessive Event driven marketing Great production without great copy Confusing reactions with results
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Objective of PR Traditional & New role of PR

The management function which evaluates public attitude, identifies policies, and procedures of an organization with the public interest, and executes a program of action and communication to earn public understanding and acceptance

Traditional Definition primary responsibility Creating and maintain a mutually beneficial relationship between the organization and various publics Crisis management New Definition MPR - closer to the marketing function and includes the traditional definition of PR Designed to promote the organisation, as well as products and services

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Tools used by Public Relations

Tools used by Public Relations

Publicity

Press releases Press conferences Exclusives Interviews Internet

Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities

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Publicity
Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Advantages of publicity
Credibility is high Perceived endorsement News

by the media

value Often results in word-of-mouth Low cost (although not totally free).

Disadvantages of publicity
Not always under control of organization Timing Accuracy Can be negative (originating from sources

other than the firm)

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Publicity Vehicles
News

Releases Articles

Feature

Captioned
Press

Photos

Conferences Events

Special

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Advertising Versus Publicity

FACTOR Control Credibility Reach Frequency Cost Flexibility Timing ADVERTISING PUBLICITY Great Little Lower Higher Achievable Undetermined Schedulable Undetermined High & Specific Unspecified/low High Low Specifiable Tentative
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Sales Promotion
Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

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Sales Promotion Targets

Consumer Sales Promotion

Trade Sales Promotion

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Uses of Sales Promotion

Increase trial Boost consumer inventory

Immediate Purchases

Encourage repurchase Increase ad effectiveness

Encourage brand switching

Encourage brand loyalty

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Tools for Consumer Sales Promotion

Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion

On-line Sales Promotion

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Tools for Consumer Sales Promotion

Coupon
A certificate that entitles consumers to an immediate price reduction

Rebate
Premium Loyalty Marketing Program

A cash refund given for the purchase of a product during a specific product. An extra item offered to the consumer, usually in exchange for some proof of purchase.
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. A loyalty program in which loyal consumers are rewarded for making multiple purchases.

Frequent Buyer Program

Tools for Consumer Sales Promotion

Contest Sweepstakes Sampling
Promotions that require skill or ability to compete for prizes.
Promotions that depend on chance or luck, with free participation. A promotional program that allows the consumer the opportunity to try a product or service for free.

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Sampling

Direct mail

Methods of Sampling

Door-to-door delivery Packaging with another product

Retail store demonstration

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Tools for Consumer Sales Promotion

Build traffic Advertise the product
Goals of Point-of-Purchase Displays

Induce impulse buying

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Tools for Consumer Sales Promotion

Free merchandise

Effective Types of On-Line Sales Promotion

Sweepstakes Free shipping Coupons

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Tools for Trade Sales Promotion

Trade allowances
Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows
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Tools for Trade Sales Promotion

Trade Allowance- A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. Push Money- Money offered to channel intermediaries to encourage them to push products--that is, to encourage other members of the channel to sell the products

The Role of Trade Sales Promotion

Gain new distributors Obtain support for consumer sales promotions Build or reduce dealer inventories Improve trade relations
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Managing Sales Promotion

Choosing an agency Planning the campaign Research Attention to details Checklist Control & measurement

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Direct Marketing
Direct Marketing is an interactive mode of marketing, through which the marketer reaches out to its target marketing As defined by Direct Marketing association USA .. An interactive system of marketing which uses one or, more advertising media to effect a measurable response/transaction at only location
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Direct marketing includes: Direct mail Telemarketing Door-to-door selling Direct Response Computerized home advertising Miscellaneous
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Database Marketing
Should be treated as an individual identity Should have relevant information & acess to name,address,frequency of product Info should be available to all departments Should be used be available to all departm

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Advantages of Direct Marketing

Targeting Cost effective Control & Accountability Opportunity to test Immediate & Flexible Opportunity to build database Tailored messages Long Term customers Multi -Functional
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Reasons for Growth of Direct Marketing

Market fragmentation Tailor-made Technology The list explosion Sophisticated software Hybrid marketing system The constant search for cost effectiveness

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E-Marketing

Internet marketing, also referred to as web marketing, online marketing, or e-marketing, is the marketing of products or services over the Internet The interactive nature of Internet marketing in terms of providing instant responses and eliciting responses are the unique qualities of the medium Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media.

E-Marketing Campaign

E-Marketing is definitely the way to go! However, it's taken a while for marketers to figure out competent procedures and strategies. We can be sure that managing, monitoring and fine-tuning marketing campaigns in real-time is the one of the keys to improving click rates, conversion rates, cost per customer acquisition and sales. The idea is to target the product to the lead and design your message accordingly.

E- Marketing

Characteristics of new media marketing communications

Interactivity Intelligence Individualisation Integration

Merchandising

Planning and executing the promotion of goods and services in an attempt to obtain the greatest value for the seller. Merchandising in a grocery store might include holding promotional events, installing point-of-purchase displays, and issuing cents-off coupons

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Merchandising Tools

Leaflets & dispensers Stickers Posters Showcards & cardboard output Branded racks or display units Holograms Electronic gadgetry Shelf space Window sampling
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Retail Strategies
Store Image Store Layout Merchandising ranges Color Blocking Point of Sale Miscellaneous

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Customer Service
A definition from the Institute of Customer Service: Customer service is the sum total of what an organisation does to meet customer expectations and produce customer satisfaction.

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The Ten Commandments of Great Customer Service!

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Know who is boss Be a good listener Identify and anticipate needs Make customers feel important and appreciated Help customers understand your system Appreciate the power of YES Know how to apologize Give more than expected Get regular feedback Treat employees well

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CRM Failure
Lack of senior executive ownership & leadership Lack of CRM organizational culture Lack of training Poor implementation Too much focus on Technology

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Sponsorship

Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. For example, a corporate entity may provide equipment for a famous athlete or sports team in exchange for brand recognition. The sponsor earns popularity this way while the sponsored can earn a lot of money.
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Process of Sponsorship Program

Define objectives Define & analyze target audiences Sponsorship policy & programme selection Fix budget Sponsorship strategy Detailed plan of tactics Test or run pilot scheme Implement modified programme Monitor & measure
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Exhibition Planning

Prioritize exhibition objectives Develop an exhibition strategy Select the right shows Agree a design strategy Determine pre-show promotional tactics Train exhibition staff Finalize exhibition operational plan Ensure follow up Evaluate post show
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Packaging
Importance of Packaging

Silent Salesperson Competitive advantage Extraordinarily effective advertising medium Environmental scrutiny Saves manufacturers costs

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Functions of Packaging

Protect Offer convenience Communicate

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Communication Function Of the Pack

Grab the attention of the passing shopper Persuade & convince Build brand personality Build loyalty Instruct the user about optimum benefit Inform the users of mandatory requirement

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Tools of Packaging
Shape Size Colour Graphics Materials Smell

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Sales Management

Sales management is attainment of an organization's sales goals in an effective & efficient manner through planning, staffing, training, leading & controlling organizational resources.

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Responsibility of Sales

Building the right sales person Hiring the right team Creating the right compensation plan Setting right projection Motivating Team Tracking revenue Resolving Conflicts Managing process Training & Coaching Sales Representative Getting Sales
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