marcom strategy

8/8/2019 Marcom Strategy

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CommunicationCommunication

StrategiesStrategies



IntroductionIntroduction

A After you have selected the product fter you have selected the product positioning, you need to communicatepositioning, you need to communicateit in order to secure a place in theit in order to secure a place in theminds of the consumers. This isminds of the consumers. This iswhen you need to decide on thewhen you need to decide on the

communication strategiescommunication strategies



Steps in developing an EffectiveSteps in developing an Effective

Marcom ProgramMarcom Program

1.1. Define the product and the target Define the product and the target market segment market segment

2.2. Decide on the communication objectivesDecide on the communication objectives

3.3. Decide on the promotion mixDecide on the promotion mix

4.4.Decide on the strategy for eachDecide on the strategy for eachcomponent of the promotion mixcomponent of the promotion mix

5.5. Decide on the promotion budget Decide on the promotion budget



What information is needed forWhat information is needed for

purchase decisions?purchase decisions?

ConsumerConsumer--adoption process modeladoption process model

Awareness=> Awareness=>

Interest=>Interest=>

Evaluation=>Evaluation=>

Trial=>Trial=>

Adoption Adoption



Marcom ObjectivesMarcom Objectives

Move the target audience to higher state of Move the target audience to higher state of readiness to buy e.g. using Responsereadiness to buy e.g. using Response

Hierarchy ModelsHierarchy ModelsUltimate objective is to get customers to buyUltimate objective is to get customers to buy

and to provide post and to provide post--purchase satisfactionpurchase satisfaction

Increase sales to new users, former users,Increase sales to new users, former users,

users of other brands, switchers and current users of other brands, switchers and current usersusers

Increase repeat purchaseIncrease repeat purchase



PromotionMixPromotionMix

A dvertising; Sales promotion; Personal A dvertising; Sales promotion; Personalselling; Public relations; Personalselling; Public relations; Personalselling; Direct Marketingselling; Direct Marketing

The promotion mix is dependent on:The promotion mix is dependent on:

The information needs of potential buyerThe information needs of potential buyer

The nature of the product and the market The nature of the product and the market

The resources availableThe resources available



Targeting the AudienceTargeting the Audience

Target audienceTarget audience = current and= current andpotential buyers of our productspotential buyers of our products

Measure the product image byMeasure the product image by

Familiarity surveys (awareness)Familiarity surveys (awareness)

Favorability scaleFavorability scale (disposition)(disposition)

e.g. Coke and Pepsi used the Indiane.g. Coke and Pepsi used the Indianwinner of Ms Universe and Ms Worldwinner of Ms Universe and Ms Worldrespectively in their advertisement inrespectively in their advertisement inIndia to win consumer preferenceIndia to win consumer preference



Designing the MessageDesigning the Message1.1.Message content Message content

SaySay what what toto whomwhom, and for, and for what what

responseresponse Demonstrate clearly theDemonstrate clearly the UniqueUnique

Selling PropositionSelling Proposition (USP)

How? With rational appeals (claimed benefits)

Emotional appeals (fear, guilt, shame,humor, love, pride etc) and

Moral appeals (supporting social causes)



Designing the Message (cont¶d)Designing the Message (cont¶d)

2.2.Message StructureMessage Structure

Use oneUse one--sided argument if audience issided argument if audience ispredisposed to your position orpredisposed to your position or

Use twoUse two--sided arguments if they aresided arguments if they arenot not

Present the strongest argument first orPresent the strongest argument first orlast last



Designing the Message (cont¶d)Designing the Message (cont¶d)

3.3.Message Format Message Format

Choose headline, copy, illustration, andChoose headline, copy, illustration, andcolor suitable for the local audience e.g.color suitable for the local audience e.g.

In China, red represents prosperityIn China, red represents prosperity

In A SP AC countries, any graphics that In A SP AC countries, any graphics that

resemble the religious symbols must not resemble the religious symbols must not be usedbe used

Refrain from Sexy advertisingRefrain from Sexy advertising



Selecting the CommunicationSelecting the Communication

ChannelChannelPersonal communication channelsPersonal communication channels

Either directly or indirectly e.g.Either directly or indirectly e.g.

Opinion leaders: if the top echelon of Opinion leaders: if the top echelon of government drives a certain make andgovernment drives a certain make andmodel of car, it says a lot about that model of car, it says a lot about that

particular modelparticular model



Selecting the CommunicationSelecting the Communication

Channel (cont¶d)Channel (cont¶d)NonNon--personal communication channelspersonal communication channels

Print media; electronic media; display mediaPrint media; electronic media; display media

The servicescapeThe servicescape the environment in whichthe environment in whichthe product is sold or the service is beingthe product is sold or the service is beingdelivereddelivered conveys a powerful messageconveys a powerful message

Events such as news conferences, grandEvents such as news conferences, grandopenings, and sport or race sponsorship isopenings, and sport or race sponsorship ispopular in A SP AC in recent years e.g.popular in A SP AC in recent years e.g.Emirates A irlines sponsored the DerbyEmirates A irlines sponsored the Derby

(Horse Racing) in Singapore regularly(Horse Racing) in Singapore regularly



Promotion BudgetingPromotion BudgetingThe budget to be allocated dependsThe budget to be allocated depends

on:on:

The geographic dispersionThe geographic dispersion

The stage of the PLCThe stage of the PLC

The communication activities, andThe communication activities, and

The marginal costs of The marginal costs of communication effectivenesscommunication effectiveness



PromotionPromotion--ExpenditureExpenditure

StrategyStrategy

PercentagePercentage--of of--sales approachsales approach

A ffordable approach A ffordable approach

ReturnReturn--onon--investment approachinvestment approach

CompetitiveCompetitive--parity approachparity approach

ObjectiveObjective--andand--task approachtask approach



Push StrategyPush Strategy

Push through a distribution channel in aPush through a distribution channel in asequential mannersequential manner

Emphasis is on personal selling to wholesalersEmphasis is on personal selling to wholesalersand retailers with trade promotionand retailers with trade promotion

When is it especially appropriate?When is it especially appropriate?

When the product is an impulse itemWhen the product is an impulse item

When there is low brand loyalty in a product When there is low brand loyalty in a product categorycategory

When brand choice is made in the store, andWhen brand choice is made in the store, and

When the product benefit is well understoodWhen the product benefit is well understood



Pull StrategyPull Strategy

Creates initial interest in potential buyersCreates initial interest in potential buyers

How?How? By hBy heavy endeavy end--user advertisinguser advertising

e.g. free samples; couponse.g. free samples; couponsWhen is it appropriate?When is it appropriate?When primary demand is favorableWhen primary demand is favorable

When the product has hidden benefitsWhen the product has hidden benefits

When the product can be differentiatedWhen the product can be differentiated

When there are strong emotional buyingWhen there are strong emotional buyingmotives such as health, beauty and safetymotives such as health, beauty and safety



Ma jor Advertising

Decisions

Ma jor Advertising

Decisions

A dvertising objective decisions e.g. A dvertising objective decisions e.g.create salient attributecreate salient attribute

Budget decisionsBudget decisions

Message decisionsMessage decisions

Media decisionsMedia decisions

A dvertising evaluation A dvertising evaluation



The Advertising ObjectiveThe Advertising Objective

FunnelFunnel

ExposureExposure

A wareness A wareness

A ttitude change A ttitude change

SalesSales

Profit Profit



The Advertising Objectives

The Advertising Objectives

A s we move down the funnel, the A s we move down the funnel, theobjective becomesobjective becomes

More relevant to decision making, but More relevant to decision making, but

More difficult to measureMore difficult to measureThe issue is whether the objectives at The issue is whether the objectives at

each level are linked to the purchaseeach level are linked to the purchasedecisiondecision



Measuring AdvertisingMeasuring Advertising

EffectivenessEffectivenessTo develop more effectiveTo develop more effective

advertisements and to determine theadvertisements and to determine the

optimal level of expendituresoptimal level of expendituresCommonly used measurements:Commonly used measurements:

Number of inquiries received, increaseNumber of inquiries received, increase

product knowledge, and attitude changeproduct knowledge, and attitude changetowards the product. Sales are the best towards the product. Sales are the best criteriacriteria



Measuring AdvertisingMeasuring Advertising

EffectivenessEffectivenessTrackingTracking

Qualitative research in the form of Qualitative research in the form of

beforebefore--andand--after brand image maps e.g.after brand image maps e.g. Of all the advertising youve seen, what, Of all the advertising youve seen, what,if anything, do you particularly rememberif anything, do you particularly rememberfrom it?from it?

Carrying out experiments with test Carrying out experiments with test marketsmarkets



Advertising WearAdvertising Wear--outout

Over time, a decline in advertisingOver time, a decline in advertisingeffectiveness occurs due toeffectiveness occurs due to repetitionrepetition

andand wearout wearout

How to reduce wearout?How to reduce wearout?

Change the advertisement structureChange the advertisement structure

Change the advertisement copy andChange the advertisement copy and

Change the media regularlyChange the media regularly



SalesP

romotionS

tra

tegySa

lesP

romotionS

tra

tegyPromotion to consumer targetsPromotion to consumer targets

Promotion to industrial targetsPromotion to industrial targets

Promotion to middle menPromotion to middle men

Promotion to sales forcePromotion to sales force



Evaluation and ControlEvaluation and Control

Continuously monitor the execution of Continuously monitor the execution of the communication plan or strategy tothe communication plan or strategy to

ensure objectives are met ensure objectives are met

Evaluate the outcome against theEvaluate the outcome against theplanned budget and adjust asplanned budget and adjust as

necessarynecessary

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