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Copyright © 2007 Pearson Education Canada 14-1 The Communications Process Sender Message Media Receiver Action by Receiver / Feedback Noise Noise

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Copyright © 2007 Pearson Education Canada 14-1

The Communications Process

SenderSender MessageMessage MediaMedia ReceiverReceiver

Action by Receiver / Feedback

NoiseNoise

Copyright © 2007 Pearson Education Canada 14-2

Integrated Marketing Communications

The coordination of all forms of marketing

communications in a uniform program that

maximizes impact on consumers and other

types of customers.

Copyright © 2007 Pearson Education Canada 14-3

Marketing Communications Mix

Communications PlanCommunications Plan

Evaluation and ControlEvaluation and Control

AdvertisingAdvertising

Sales PromotionSales Promotion

Events/SponsorshipEvents/Sponsorship

Public RelationsPublic Relations

Personal SellingPersonal Selling

Direct / InteractiveDirect / Interactive

Copyright © 2007 Pearson Education Canada 14-4

IMC

Integrate marketing communications is taking hold because of:

Efficiency and accountability concerns

A constantly changing business environment

Growth in database marketing and CRM

Growth and popularity of digital media

The synergistic effect of the effort

Copyright © 2007 Pearson Education Canada 14-5

Communications Strategies

Mfg’rMfg’r WholesalerWholesaler RetailerRetailer ConsumerConsumer

Pull

Push

Copyright © 2007 Pearson Education Canada 14-6

Budget Determination

A variety of methods are used.

Percentage of Sales

Industry Averages

Arbitrary Allocation

Task (Objective)

Copyright © 2007 Pearson Education Canada 14-7

Influences on Budget

Several factors impact on the amount of funds required.

1. Customer

2. Degree of Competition

3. Stage in Product Life Cycle

Copyright © 2007 Pearson Education Canada 14-8

Role of Advertising

1. To influence the thought patterns of the target audience in a favourable manner.

2. Assuming a favourable attitude, motivate purchase of a specific brand of product.

Copyright © 2007 Pearson Education Canada 14-9

Buying Behaviour Stages

AwarenessAwareness

ComprehensionComprehension

ConvictionConviction

ActionAction

When deciding what to buy a consumer passes through a series of behaviour stages.

Copyright © 2007 Pearson Education Canada 14-10

Creative Planning

Creative ObjectivesWhat to say

Creative ObjectivesWhat to say

Creative StrategyHow to say it

Creative StrategyHow to say it

Creative ExecutionSpecific tactics

Creative ExecutionSpecific tactics

Copyright © 2007 Pearson Education Canada 14-11

What to Say: Creative Objective

Communicating a clear message that customers will quickly understand is the task.

Secret Deodorant

“Strong enough for a man but made for a woman.”

Old Spice High Endurance Body Spray

“Date women out of your league.”

Copyright © 2007 Pearson Education Canada 14-12

Creative Strategy

To stimulate interest and desire an advertiser calls upon a variety of techniques.

Humour

Comparison

Emotion

Lifestyle

Copyright © 2007 Pearson Education Canada 14-13

Creative Strategy

Sex

Testimonials

Celebrity Endorsements

Character Presenters

Demonstrations

Copyright © 2007 Pearson Education Canada 14-14

Media Planning

The challenge is to select the right media to communicate the message effectively and efficiently.

TraditionalMedia

TVRadioPrint

Outdoor

TraditionalMedia

TVRadioPrint

Outdoor

New MediaInternetDVDs

Cell PhonePDAs

New MediaInternetDVDs

Cell PhonePDAs

Copyright © 2007 Pearson Education Canada 14-15

Media Objectives

Establishing objectives involves answers to 5 key questions.

Who?What?When?Where?How?

Who?What?When?Where?How?

Copyright © 2007 Pearson Education Canada 14-16

Media Strategy

A major challenge is to match the best media with the target market

Shotgun

Profile Match

Rifle

Copyright © 2007 Pearson Education Canada 14-17

Media Strategy

Numerous factors converge with some being more important than others.

• Reach• Frequency• Continuity

• Reach• Frequency• Continuity

• Coverage• Timing• Media Type

• Coverage• Timing• Media Type

Money (the budget) affects all decisions.

Copyright © 2007 Pearson Education Canada 14-18

New Media Alternatives

Advertisers are questioning the value of traditional forms of advertising and are trying new options.

Product Placement

Branded Content

Guerilla Marketing

Copyright © 2007 Pearson Education Canada 14-19

Media Execution

At this stage the specific details of the plan are identified.

Evaluation of cost comparisons

Scheduling specific media (buying the media)

Budget Summaries (what, where, when)

CPM is the cost incurred in delivering a message to one thousand individuals.

Copyright © 2007 Pearson Education Canada 14-20

Public Relations

Activity undertaken to influence the attitudes, opinions, and behaviours of various publics.

Internal Publics• Employees• Distributors• Suppliers• Shareholders

Internal Publics• Employees• Distributors• Suppliers• Shareholders

External Publics• Customers• Media• Governments• Community Groups

External Publics• Customers• Media• Governments• Community Groups

Copyright © 2007 Pearson Education Canada 14-21

Some Roles of Public Relations

PR makes positive contributions to an organization.

1. Corporate Communications

2. Reputation Management

3. Community Relations / SRM

4. Public Affairs

5. Product Publicity

6. Product Seeding

7. Media Relations

8. Fundraising

Copyright © 2007 Pearson Education Canada 14-22

Corporate Communications

A company has to create, build and protect its image.

IssueManagement

IssueManagement

CorporateAdvertising

CorporateAdvertising

Advocacy AdvertisingAdvocacy Advertising

Where a company stands on an important issue

Messages to create goodwill or show social responsibility

A viewpoint on a public issue

Copyright © 2007 Pearson Education Canada 14-23

Reputation Management

In a time of crisis PR takes centre stage.

Executives must be prepared to act

Credible and factual messages must be delivered

Avoiding issue can be disastrous

Viagra linked to blindness…ouch!

Vioxx recalled from market.

CIBC fax fiasco

Copyright © 2007 Pearson Education Canada 14-24

Community Relations and Social Responsibility

CommunityRelations

CommunityRelations

Providing resources to support the community generates goodwill.

SocialResponsibility

SocialResponsibility

Strategic philanthropy by supporting opportunities that benefit company and society.

Copyright © 2007 Pearson Education Canada 14-25

Public Affairs

LobbyingLobbyingA practice that influences policy decisions of governments.

Organizations lobby governments to sway policy in favour of their best interests.

Copyright © 2007 Pearson Education Canada 14-26

Product Publicity

Getting the brand or company into the news in a favourable way.

• Newsworthy information issued by press release

• Photos of significant events: brand launches, acquisitions, expansion, etc.

Copyright © 2007 Pearson Education Canada 14-27

Product Seeding

“Placing a new product with trendsetters who influence others to purchase the product.”

An economical tactic

Influential with youthful targets

Creates “buzz”

Copyright © 2007 Pearson Education Canada 14-28

Media Relations

A good relationship with the media usually results in positive information being communicated about an organization.

Relationships with the media are built on respect, honesty, accuracy and professionalism.

Copyright © 2007 Pearson Education Canada 14-29

Primary Tools

Some communications tools are used routinely while others are used periodically.

Press Release

Press Conference

Web Sites

Publications

Posters and Displays