Gilbert A. Churchill, Jr. J. Paul PeterGilbert A. Churchill, Jr. J. Paul Peter

Chapter 17

Managing Marketing Communications

Marketing

Primary Tasks of CommunicationPrimary Tasks of Communication

INFORMING•During the introduction stage of the PLC•Explain the purpose & benefits of the product

REMINDING•During the growthstage of the PLC•Convenience the customer to buy company’s brand over the competition

PERSUADING•During the maturity stage of the PLC•Used to trigger memory (brand specific)

TargetAudience

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Some Strategic Goals of Some Strategic Goals of Marketing CommunicationsMarketing Communications

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Table17.1

Strategic GoalStrategic Goal

Create awareness

Build positive images

Build channel relationships

DescriptionDescription

Inform markets about products, brands, stores or organizations.

Develop positive evaluations in people’s minds about products, brands, stores or organizations.

Identify prospects Find out the names, addresses and possible needs of potential buyers.

Increase cooperation among channel members.

Create value for customers, satisfy their wants and needs, and earn their loyalty.

Retain customers

The Communication ProcessThe Communication ProcessSlide17-3

Figure17.1

Source Transmits Message via Medium

Receiver Provides Feedback to Source

ReceiverDecodesMessage

SourceEncodesMessage

Noise

The AIDA ModelThe AIDA ModelSlide17-4

Figure17.2

Action DesireInterestAttention

MarketingCommunications

The Communications MixThe Communications MixSlide17-5

Advertising PersonalService

PublicitySalesPromotion

Comparing the Elements Comparing the Elements of the Communications Mixof the Communications Mix

Slide17-6

Message can be Customized for each Customer

Considered an Unbiased Source

Long Term, Ongoing Activity

Marketer Control Over Message

Communications Mode

Short Term Focus

Cost per Contact

Overall Cost

Personal Selling

SalesPromotion

Advertising Publicity

Two-Way One-WayOne-Way One-Way

Low VariesHigh No Direct Cost

Yes NoYes No

No NoNo Yes

Yes NoNo No

No YesNo No

High VariesLow No Direct Cost

Medium-High HighHigh Low

When Elements of Communication Mix When Elements of Communication Mix (Promotion) Are Most Useful(Promotion) Are Most Useful

Advertising

Personal Selling

Sales Promotion

Public Relations

Not effective

Very effective

Somewhat effective

Attention Interest Desire

Eff

ecti

ven

ess

Action

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Managing Communications StrategyManaging Communications StrategySlide17-8

SetCommunications

Objectives

Select theCommunications

Mix

SetCommunications

Budgeting

Implementationand

Control

Factors that Affect the Communication MixFactors that Affect the Communication Mix

Push–and–Pull Strategies• Push - suppliers promote to intermediaries• Pull - suppliers promote to ultimate consumer

Nature of the Product• Industrial products are expensive, complex, customized• Consumers products depend upon costs and risks

Stage in the Product Life Cycle• Early - advertising & publicity• Later - sales promotions

Target Market Characteristics• Widely scattered markets• Highly informed buyers

Type of Buying Decision• Routine - advertising• Complex - personal selling

Available Funds• Lack of money - publicity, commission based personal selling• Plenty of money - advertising

$ $ $

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Two Marketing Communications Two Marketing Communications ApproachesApproaches

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Figure17.3

End Users ResellersProducer

Resellers End Users

MarketingCommunications

MarketingCommunications

Request Products

Request Products

Producer

Marketing Communications

Push Strategy

Pull Strategy

Methods for Setting Communications Methods for Setting Communications BudgetsBudgets

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Table17.3

MethodMethod

Percentage of sales

AdvantageAdvantage DisadvantageDisadvantage

• Simple to use • Budgeting based on expected sales implies communications can’t improve sales performance

Fixed sum per unit

• Marketer likely to benefit from increasing the budget during times of rising sales

• Decreasing the communications budget during periods of falling sales could be disastrous in some cases

Competition-based

• Takes into account competitors’ activities

• Amounts budgeted will be reasonable if competitors are budgeting effectively

• Can be difficult to get competitors’ budget information

• Can lead to ever-increasing communications budgets

• Assumes competitors have the same objectives

Methods for Setting Communications Methods for Setting Communications BudgetsBudgets

Slide17-11b

Table17.3

MethodMethod

All you can afford

AdvantageAdvantage DisadvantageDisadvantage

• Takes into account limited resources

• May stimulate creativity in making funds work hard

• Doesn’t consider marketing objectives

• Borrowing may be worthwhile to fund some communications strategies

Objective and task

• Based on achieving communications objectives

• Focusing on objectives uses funds most efficiently

• No basis for setting priorities among objectives

• Treats all objectives as equally worthy of funding

• Hard to estimate what will it cost to achieve a particular objective

Evaluating the Effectiveness of Evaluating the Effectiveness of Marketing CommunicationsMarketing Communications

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SalesChanges

MarketingResearch

SalesChanges

Whyit Happened

WhatHappened ?

?

Regulation of Regulation of CommunicationCommunication

Self-Regulation - complaints

• National Advertising Division (NAD) of BBB

• National Advertising Review Board (NARB)

Federal Regulation - deceptive & misrepresentation

• Federal Trade Commission (FTC)

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