of

MARKETING

Chapter

18

Marketing Communications Strategy

Copyright 2003 by Nelson, a division of Thomson Canada Limited.

Marketing Communications Strategy

Chapter

18

Objectives
Explain the concept of the marketing communications mix. Describe the marketing communications mix as part of the marketing mix. 3. Elaborate on the importance of the integrated marketing communications concept. 4. Outline a theoretical mode of the communications process. 5. Show how various marketing communications must conform to this model in order to be effective. 6. Explain and contrast pulling and pushing marketing communications strategies. 7. Discuss the appropriateness of different types of marketing communications objectives. 8. Explain the concept of a marketing communications budget. 9. Discuss the appropriateness of different types of marketing communications budgets. 10. Discuss marketing communications in the light of some public criticisms.
Copyright 2003 by Nelson, a division of Thomson Canada Limited.

1. 2.

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Marketing Communications Strategy

Chapter

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Marketing Communications
All activities and messages inform, persuade, and influence the consumer in making a purchase decision.

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Marketing Communications Strategy

Figure 18.1

Chapter

18
Produces Utility for

Integrating the Marketing Communications Plan into the Total Marketing Mix
Personal Selling Combined with

Marketing Manager

Sets goals & objectives

Integrated marketing communications strategy

Other aspects of the marketing program: Product Distribution Pricing strategy strategy strategy

Consumer

Nonpersonal Selling Feedback

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Marketing Communications Strategy

Chapter

18

Integrated Marketing Communications (IMC)

A comprehensive marketing communications plan that takes into consideration all the communication disciplines being used and combines them to provide clarity, consistency, and maximum communications impact.

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Marketing Communications Strategy

Figure 18.3

Chapter

18

The Process of Marketing Communications

Encoding Sales presentations, ads, displays, publicity, releases Transfer Mechanism Salesperson, print or electronic Advertising media, direct mail, internet, public relations channel

Sender Marketing Manager

Noise
Feedback Advertising research, field reports, inventory movements
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Response Attitude change or decision

Decoding Customer/receiver Interests message

Marketing Communications Strategy

Table 18.1

Chapter

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FEEDBACK Information that for customers are reacting positively to the message

Examples of Marketing Communications

TYPE OF PROMOTION Personal selling SENDER Canon Office Equipment ENCODING Sales presentation on new model office copier TRANSFER MECHANISM Canon sales representative DECODING BY RECEIVER RESPONSE Office manager Order placed and employees Canon copier in local firm discuss Canon sales presentation and those of competing suppliers Hamburgers purchased by consumers using the coupon Small number of movie tickets purchased

Two-for-one coupon(sales promotion)

Wendy's Hamburgers

Wendy's marketing department and advertising agency Advertisement for a new movie is developed by the producer's advertising agency

Coupon inserted Newspaper in weekend reader sees newspaper coupon for hamburger and saves it Network television during programs with high percentage of viewers in target market Audience sees ad but few decide to go to the movie

Information that customers are reacting positively to the message Communication failed to interest and motivate the target market

Television advertising

Movie producer

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Marketing Communications Strategy

Chapter

18

Marketing Communications Mix

The blend of personal selling and nonpersonal communications (including advertising, sales promotion, public relations, sponsorship marketing, and point-of-purchase communications) by marketers in an attempt to accomplish information and persuasion objectives.
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Marketing Communications Strategy

Figure 18.4

Chapter

18

The Marketing and Marketing Communications Mix

Marketing Mix
Product Price Distribution Marketing communications

Marketing Communications Mix

Personal selling Nonpersonal selling Advertising Sales promotion Point-of-purchase communications Public relations Sponsorship marketing Publicity

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Marketing Communications Strategy

Chapter

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Personal Selling
A sellers promotional presentation conducted on a person-to-person basis with the buyer.

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Marketing Communications Strategy

Chapter

18

Nonpersonal Communication (1 of 3)
Advertising
Paid nonpersonal communication through various media by business firms, nonprofit organizations, and individuals who are in some way identified with the advertising message and who hope to inform or persuade members of a particular audience.

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Marketing Communications Strategy

Chapter

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Nonpersonal Communication (2 of 3)
Sales Promotion
Those marketing activities, other than personal selling, mass media advertising, and publicity hat stimulate consumer purchasing and dealer effectiveness.

Public Relations
A firms effort to create favourable attention and word-of-mouth.
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Marketing Communications Strategy

Chapter

18

Nonpersonal Communication (3 of 3)
Sponsorship Marketing
The practice of promoting the interests of a company by associating the company or a brand with a specific event.

Point-of-Purchase Communications
Materials designed to influence buying decisions at the point of purchase.
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Marketing Communications Strategy

Table 18.2

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Factors That Influence the Marketing Communications Mix

FACTOR Objectives of the Marketing Plan Actions of Competitors Nature of the Market Number of buyers Geographic concentration Type of customer Nature of the Product Complexity Service requirements Type of good Use of trade-ins Stage in the Product Life Cycle Price Funds Available
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EMPHASIS ON Personal Selling Advertising Affects all decisions in the mix Decide whether to match competitors and/or to develop a different mix Limited number Concentrated Business purchaser Custom-made, complex Considerable Business Trade-ins common Introductory and early growth stages High unit value Large number Dispersed Ultimate consumer Standardized Minimal Consumer Trade-ins uncommon Latter part of growth stage and maturity and early decline stages Low unit value

Affects all decisions in the mix

Marketing Communications Strategy

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Pulling Strategy
A promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel.

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Marketing Communications Strategy

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Pushing Strategy
The promotion of the product first to the members of the marketing channel, who then participate in its promotion to the final user.

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Marketing Communications Strategy

Figure 18.5

Chapter

18

Relative Importance of Advertising and Selling

Selling Relative Importance

Advertising Pre-transactional
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Transactional

Post-Transactional

Source: Harold C. Cash and W.J.E. Crissey, The Salesmans Role in Marketing, The Psychology of Selling, Vol. 12 (New York: Personnel Development Associates). Copyright 2003 by Nelson, a division of Thomson Canada Limited.

Marketing Communications Strategy

Figure 18.6

Chapter

18

Promotion Can Help Marketers Achieve Demand Objectives

Demand objective for the product 2 Existing demand for a product

Price

Quantity
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Marketing Communications Strategy

Figure 18.7

Chapter

18

Product Differentiation
Differentiated demand

Price

Homogeneous demand
Quantity
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Marketing Communications Strategy

Figure 18.8

Chapter

18

Promotion Can Accentuate the Value of the Product

Less responsive to price differences

Price

More responsive to price differences

D2 Quantity
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D1

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Marketing Communications Strategy

Figure 18.9

Chapter

18

Elements of Advertising Planning

Research Inputs
Consumer research Product research Market analysis Consumer situation
Strategic Decisions Setting objectives

Feedback

Making evaluations and adjustments

Defining target markets Determining advertising budget deciding media strategy Coordinating with other marketing factors Tactical Execution Establishing controls Writing and producing ads and commercials Selecting and scheduling media vehicles
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Taking into account constraints and uncontrollable influences

Measuring the effectiveness of advertising

Market Impact

Source: Excerpt from advertising: Its Role in Modern Marketing, 5th ed., by S. Watson Dunn and Arnold M. Barban, p. 202. Copyright 1982. Reprinted with permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800-730-2215.

Copyright 2003 by Nelson, a division of Thomson Canada Limited.

Marketing Communications Strategy

Chapter

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How Much Should be Spent on Marketing Communications?

Percentage of Sales Fixed Sum per Unit Meet Competition Task-Objective Method

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Marketing Communications Strategy

Chapter

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Task-Objective Method
A sequential approach to allocating marketing communications budgets that involves two steps:
1) defining the realistic communication goals the firm wants the marketing communications mix to accomplish, and 2) determining the amount and type of marketing communications activity required to accomplish each of these objectives.
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Marketing Communications Strategy

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Direct-Sales Results Test

A test that attempts to ascertain for each dollar of promotional outlay the corresponding increase in revenue.

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Marketing Communications Strategy

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The Value of Marketing Communications

Business and Nonprofit Enterprise Importance Economic Importance Social Importance

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