Lecture 6

MarketingCommunicationDr. Lucy TingLucy.Ting@manchester.ac.uk

Agenda Marketing CommunicationsConsumer Perspective

Integrated Marketing CommunicationsDefinitionsCharacteristicsLevels of Integration

Drivers and Barriers Communication Mix ToolsMass Market AppealPersonal AppealBuzz Appeal

Marketing MixMcCarthy, E.J. (1960), Basic Marketing, Homewood, IL, Irwin

Marketing Communications (MarCom)AdvertisingSales promotionsSponsorshipPublic relationsPoint-of-purchase communicationsExhibitions and trade fairsDirect marketing communicationsPersonal sellingE-communications

Customer PerspectiveConsumers may be more sensitive to commonalities and discrepancies among message than to the specific MarComs used to transmit them

Added value is created in terms of a faster and better comprehension of the communication and integration occurs at the consumer or perceiver level. Englis and Solomon (1996), Using Consumption Constellations to Develop Integrated Communiication Strategies, Journal of Business Research, 37, 183-191

Marketing CommunicationFactors influence Marketing Communications

Changing ConsumersThe availability of information and increased resistance in mass-market broadcasting

Changing Marketing Strategies Fragmented market and more personalised marketing strategies

Changes in Technology e.g. Internet, Mobile, Ipod, Satellite & CableArmstrong and Kotler (2009) Chpt 12

IMC: Mix and Match

Integrated Marketing Communication

A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organisation are relevant to that person and consistent over time American Marketing Association

IMC: Mix and Match Basic Concepts

The whole is greater than the sum.

Affects brand awareness, by which it creates, maintains, or strengthens favourable and unique brand associations.

Aims to build strong customer relationships

Communication Mix Tools

Creating SynergiesSales team has easier job when brand is well-known through advertising or sponsorship.A promotional campaign that is supported by advertising is more successful.Public relations, sponsorship and advertising can have synergetic effects on company and brand image.Websites have to be supported by off-line campaigns.

Marketing Mix and IMCHutton, J.H. (1996), Integrated Marketing Communication and the Evolution of Marketing Thought, Journal of Business Research, 37, 15562

Integrated Marketing Communications

Definitions Integrated Marketing Communication (IMC)

IMC is a concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combine these disciplines to provide clarity, consistency, and maximum communications impact American Association of Advertising Agencies; Reported in Schultz (1993) Integrated Marketing Communications: Maybe Definition is in the Point of View, Marketing News, 18 January

Definitions

IMC is the strategic choice of elements of marketing communications which will effectively and economically influence transactions between an organisation and its existing and potential customers, clients and consumers. Betts et al. (1995), Marketing Communications Strategy, 2nd Edition BPP Publishing

Definitions

IMC is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent and compelling message about the organisation and its products Kotler et al. (1999), Principles of Marketing 2nd European Edition, Prentice Hall

Definitions

IMC is an organisations unified, coordinated effort to promote a brand concept through the use of multiple communications tools that speak with a single voice.

Shimp (2000), Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications, 5th Edition, Dryden Press

Definitions

IMC is a process of managing the customer relationships that drive brand value. More specifically, it is a cross-functional process for creating and nourishing profitable relationships with customers and stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them Duncan (2002), IMC: Using Advertising and Promotion to Build Brands, International Edition, The McGraw-Hill Companies

Definitions

Integrated Marketing Communication (IMC)

A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time American Marketing Association

Characteristics Five Essential Elements of IMCThe aim to affect behaviour through direct communicationThe IMC process should start from customer or prospects and then work backwards to brand communicatorsIMC should use all forms of communication and all sources of brand or company contacts as prospective message delivery channelsThe need for synergy, with coordination helping to achieve a strong brand image The need to build and strength brand relationships Shimp (2000), Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications, 5th Edition, Dryden Press

Levels of IntegrationDuncan and Caywood (1996), The Concept, Process and Evolution of Integrated Marketing Communication, in Thorson and Moore (eds) Integrated Communication: Synergy of Pervasive Voices, Lawrence Erlbaum Associates, pp. 13-34

Levels of Integration Schultz and Kitchen (2000), Communicating Globally: An Integrated Marketing Approach, Palgrave-Macmillan

Key Drivers of Integration De Pelsmaker and den Bergh (2007)

Barriers of IntegrationDe Pelsmaker and den Bergh (2007)

Communication Tools

Communication Mix StrategiesTwo basic strategies

Push Strategy

Pushing the product through marketing channels to final consumersPersonal selling and trade promotion are relatively emphasised Marketing ActivitiesMarketing Activities

Communication Mix StrategiesTwo basic strategies

Pull Strategy

Producer direct its marketing activities directly to consumers to induce their demand for the productAdvertising and promotion are relatively emphasised

ProducerRetailers and WholesalersCustomersMarketing Activities

Communication ToolsMass Appeal

Tools which aim to reach many prospective customers at the same time

AdvertisingSales PromotionPublic Relations Solomon et al. (2008)

Communication ToolsAdvertisingIt can offers reasons to buy and reach masses of geographically dispersed buyers with repeated exposures.

ProsCons Marketers have control over what the message will say, when it will appear and who is likely to see it Often expensive to produce and distribute May have low credibility and/or be ignored by audience

Communication ToolAdvertising Objectives

Informative AdvertisingTo communicate customer value and is used heavily when introducing a new productPersuasive AdvertisingTo build brand value and sometimes compare with competing brandsReminder Advertising Maintain customer relationships and keep customers thinking about the product

Communication Tool Advertising Media

MediumAdvantagesLimitationsTVMass CoverageImpact of sight, sound and motionLow cost per exposureAttention gettingShort message lifeHigh absolute costClutter FragmentationRadioLow CostLocal CoverageFlexibleHigh FrequencyAudio only ClutterLow attention gettingFleeting Messages

Communication Tool Advertising Media

MediumAdvantagesLimitationsMagazineWell segmented audienceDetailed informationEngagingVisual onlyLack flexibilityLong lead time

NewspaperHigh coverageLow costTimelyShort lead timeShort lifeClutterVisual onlyPoor quality

Communication Tool Advertising Media

MediumAdvantagesLimitationsOutdoorFlexibilityHigh repeat exposureLow CostLow message competitionGood positional selectivityLittle audience selectivity Creative Limitations

Communication Tools2. Sales PromotionIt consists of short-term incentives to encourage purchase or sales of a product or service

ProsCons Provides incentives to retailers Builds excitement Encourage immediate purchase and trial of productSuits price-sensitive consumers Short-term emphasis on immediate sales Large number of competing promotions

Communication ToolSales Promotion Objectives

Consumer PromotionShort-term customer buyingTemporary brand switching Reinforce positioning strategyBuild long-term customer relationship

Trade PromotionMore sales force support for productsGetting salespeople to sign up new accounts

Communication Tools3. Public RelationsTo build good relations with the companys various publics by obtaining favourable publicity, building up a good corporate image, and handling unfavourable rumours.

ProsCons Relatively low costHigh credibility Lack of control over the message and no guarantee that the message will ever reach the targetHart to track the results

Communication ToolsPersonal Appeal

Tools which aim to communicate with consumers on a personal, one-to-one level.

Personal SellingDirect Marketing Solomon et al. (2008)

Communication ToolsPersonal SellingPersonal presentation by the firms sales force for the purpose of making sales and building customer relationships

ProsCons Direct contact with the customer gives the salesperson the opportunity to be flexible and modify the sales message to coincide with the customers needsThe salesperson can get immediate feedback from the customer High cost per contact with customerDifficult to ensure consistency of message when delivered by different salespersonsThe credibility of sales people often depends on the quality of the companys image

Communication ToolsDirect MarketingDirect connections with carefully targeted individual consumers to both obtain and immediate response and cultivate lasting customer relationships

ProsCons Can target specific groups with different offersResults can be easily measuredCan provide extensive product information and multiple offers within a single appealProvides a means for collecting information Consumers may have a negative opinion of some types of direct marketing Costs more per contact than mass appeals

Communication ToolsBuzz Appeal

The new out-of-box tools which aim to communicate especially with the young consumers who tend to be cynical about corporations.

Direct Marketing (Digital)Solomon et al. (2008)

*Product means the goods and services combination the company offers to the target marketPrice is the amount of money customers must pay to obtain the productPlace includes company activities that make the product available to target consumersPromotion means activities that communicate the merits of the product and persuade target customers to buy it. *Integrated Marketing Communications is about integrating the customer into the company. Its not about putting widgets or services in the marketplace based on what you think customers need. Instead, its becoming a responsive organization driven by consumer insights that knows its customers wishes, wants, needs and desiresand then creating products and services to fill those needs. IMC argues you need to get to know the customer better than your competitors, and maybe even better than they know themselves. A true IMC company is closer to the customer, and would never be nervous or ashamed to have one sit in on a strategic marketing meetinga true IMC company has the best interests of its customers in mind. And that, my friends, is why IMC is Responsible Marketing. So, what have you done to get closer to your customer? Comment below to weigh in. **Tactical coordination of marketing communications:Requires high degree of interpersonal and cross-functional communication with and without the business, led by the business, not the external agenciesRedefining the scope of marketing communications:Organisations gather extensive information about their customers and apply to deploying MarComs and evaluating feedback. Also need to align with external agenciesApplication of Information Technology:Maintain accessible data sources and build to globally segmented database. Effectively incorporate data in communiation planning and implementation to turn customer data into customer knowledgeFinancial and strategic integration:Firms constantly monitor Marcoms performance from a ROI perspective. Information, knowledge linked to an ongoing evaluation of each served segment on a global basis.