Presentation to CIM Class

By Herbert Thuo
Marketing communications can & will
deliver positive customer value
Marketing communications.
What is it?
What is it?
 Marketing communications is a diverse yet very
crucial aspect of modern marketing

 MC can be defined as all communication from the

organization to potential or existing consumers

 Itis important to not that MC is not an island of a

topic. Integration with existing strategy islands is
crucial!
The strategy ladder
 Due to globalisation & integration of business
functions, marketing communication is changing
very rapidly

 Alldepartments in an organization is therefore

responsible for modern marketing. They all have
a small contribution to make.

 Ifwe are to liken marketing to the human body, if

corporate strategy is the head, marketing
communications is the mouth & face.
 If firms are to survive, they must address key
issues in marketing communications:
 The switch from traditional media to more
unconventional & innovative media E.g. Large
digital screens, PR 2.O, CSR 2.0, Branding 2.0
 AD agencies can make or break achievement of your
MC objectives. Smaller agency can work for you
too!
 Consumers are continuously talking to companies.
They need to listen!! Investment in ICT know how
and equipment.
 The move from advertising to innovative PR.
Consumers sometimes feel that ads are subjective
and skewed. Opinion leadership is powerful!
Did you know that Michael Jackson
is worth more dead than alive? After
his death sales of memorabilia & CD
Sales grew by over 700%
Customer Value. In detail
What is customer value?
 Thisis the sum total of all benefits which a
company/brand/product promises that a
consumer will receive in return for purchase or
loyalty. E.g. When you buy a range Rover sport…
…Panadol…..a sean paul concert ticket

 Customer value can be deduced by the consumer

in the following ways:
 Price
 Competitor offerings
 Its marketing communications
 Brand promise
 Who ar e y ou l oo king a t
WH O? impr essin g wi th y our
br and pr omi se?

What do y ou i nt end t o
WHA T ?
of fer to your who’ s?

Where wi ll you
WHE RE ? conn ect
wit h your who’ s?
 The who seems very important doesn’t it?

 Without a good understanding of your target, your firm is

likely to end up spending a fortune and end up with a
withered bouquet of different flowers.

 look
i.e. a Wide array of different customers who may
good initially but eventually fail to influence
business growth and fail to contribute or erode
shareholder value
 The most powerful creator of customer value is branding.

 Customer value is a result of experiences, perceptions,

interactions with the brand.

 Customer value ensures that future business growth is

secured & short term objectives are achieved.

 Customer value can be created through pain & time by

marketing communications. Remember that customer
value is a result of planned and unplanned experiences
and interactions in the market.
Did you know that Africa doesn’t
have a single brand in the top 200
brands of the world? A challenge to
African marketers.
MC & Customer Value. The link
The 3p’s & MC Mix
Marketing communications
3P’s
PUSH
Members of marketing
channel. Geared at
Key account gaining their trust &
management commitment

PULL
Generate & sustain
Branding dialogue with end
consumers
Customer
retention
PROFILE
Perception building for
the whole organization.
Corporate identity
Diving into the sea with no
clothes.
The HB Foods way
A fictional case study
PUS H

HB foods has 10 dealers and 200 resellers in Kenya.

HB Foods has a product portfolio consisting of breakfast cereals,

bread spreads, biscuits, beef jerky etc with over 300 employees.

HB foods organizes an annual one week retreat in

Mombasa with all our resellers and dealers just to make sure ‘we
are on the same page’

HB foods has set-up a rewards scheme for dealers who achieve

their targets. We sit down with our dealers and help them with
their business plans. We set targets together to be achieved in
a certain time.

HB foods has also debt financed some of our dealers

especially those in financial trouble with an aim of selling back
PULL

HB foods has invested heavily in brand building.

HB Foods has a rich brand architecture which leverages some of

the older brand’s equity and pours it on to some for the newer
brands.
HB Foods

Breakfast cereals
Sprea ds
Snacks

Beverages
HB foods has employed the services of a full service agency to
handle PR, Advertising and experiential marketing. We pay a
monthly retainer of about KSh 3.5Mn and this excludes any 3rd
party costs like printing

HB foods uses the following brand building framework

4. Understand the consumer through audit
5. Get valuable insights from the audit about consumers their
preferences and behaviours
6. Map out your different consumer needs on a grid and this will
automatically segment your brands and their respective users.
7. Construct the brand essence of the brands.
8. Come up with a brand promise
9. Deliver a contemporary identity system
10. Deliver the promise through marketing communications!!
PROFILE

HB Foods is interested a lot in how consumers and the public in

general perceive us.

We employ the following tactics to keep our reputation up:

4. Equal employer
5. Employ interns as a source of future consumers and fresh
ideas
6. We have a CSR department that urges employees to take 21
paid days off work to help in HB Foundation.
7. We have an internal marketing programme that takes care of
our internal consumers
8. We are always at the forefront of research & development. We
have funded 2 programmes at the Nairobi University that seek
to come up with new ways of making foods safer and reducing
the waste produced at HB foods industries in Thika.
9. In addition to the full service agency, we have a small PR
department to handle crisis communications as they arise.
Did you know that marketers are the
3rd highest paid people in the world?
Ab ove t he l in e
Pla ce d in pa id for med ia . Abo ve the lin e de pic ts an
agen cy accou nts for com mis sions ea rn ed fr om bu yin g
medi a spa ce fo r cl ien ts e.g. TV, Ra di o, Pri nt, Bill boa rd

Thr ough the line i.e. di rec t ma rketin g

Bel ow th e li ne
Pro du ct in te gr al initi atives that are shown be low th e lin e
in th ei r accou nts e.g. Lea fle ts , pos te rs , ex per ien ti al, sale s
pro mo, PR, Per son al sell in g et c
THE M ARK ET ING
COM MUNICA TOIO N MIX

AD VERTI SIN G

PE RS ONAL SE LLIN G

PU BLI C REL ATIO NS

DI RE CT MARKET ING

SAL ES PROMO TIO N

Adv er tising

 This is a non-personal paid for communication

targeted through the mass media in order to
achieve certain objectives

 Advertising messages can either be rational or

emotive.
§ Rat io na l messages can be descriptive,
factual, comparative e.g. if you wash your
clothes with Jik, you get a whiter wash
§ Emo tio na l me ssage s can be based on fear,
humour, sex, music e.g. E-Pill contraceptives
communications.
 What are some of the best Ads you have seen based
on the previous criteria?

 What makes them so good and memorable?

§ They employed the appropriate media especially
B2B
§ They followed a coherent theme across different
platforms e.g. Mimi ni member
§ They were targeted e.g. FA Men beauty products
ranges
§ They were innovative e.g. Strepsils, NTV re-
launch, my dog ate my homework?, Nissan
product ranges, Virgins
§ They connected at a higher level e.g. Safaricom’s
natakuwa kuwa mkenya
Pers ona l s ellin g

 This is an oral presentation by a salesperson to a

customer with the aim of getting a sale through
persuasion.

 Personal selling exists within the overall marketing

communication mix as a support and effecter/
implementer!

 Common tasks in personal selling includes

prospecting, selling, servicing, allocating e.g. most
computer hardware firms like copy cat invest
heavily in personal selling. They understand the
powerful role it plays.
Publ ic r ela tions

 This is the planned & sustained effort to establish and

maintain goodwill & mutual understanding between an
organization & its publics

 4 angles
 Publicity i.e. commonly propaganda e.g. kencell & safaricom
 A source of information i.e. with no persuasive intent. Simply
information. E.g. Ministry of health
 2 way asymetric i.e. with consumer attitudes and behaviours in
mind, aims to change consumer attitudes to fit within the
organization. E.g political parties
 Two way symetric i.e. PR practitioner serves as a mediator
between public & organization to quell anger & discontent e.g
KQ strike
Dir ec t mark eting

 This is the planned recording, analysis & tracking of

consumer behaviour in a bid to foster long term
customer relationships.
 Strengths of direct marketing?
 Get down to the individual
 Communication can be personalized
 Reinforcing other marketing mix tools
 Unlimited creative platforms available e.g. telemarketing, inserts,
door to door, take ones, direct mail, blast emails.

 Direct marketing will be the spring board for future

marketing initiatives in the near future for Kenyan firms.
As budgets become tighter, more innovative forms of
communication will be found in direct marketing.
Sa les pr omo tion

 These are a range of tactical marketing techniques

designed to add value to a product or service to achieve
a specific sales objective.
 The Barclays mkopo wa salo promo was an incentive
for non-barclays consumers to acquire accounts and
benefit.
 Buy one get on free promotions e.g. K1 BOGOF

 Nakumatt loyalty programmes

 Safaraicom live win a Mercedes promo etc

 Sales promotions have varied aims like increase

awareness, switch in buyer behaviour
 Sales promotions have varied aims like
§ Increase awareness of new products e.g. BMW X6

§ Switch in buyer behaviour e.g. Orange Thursday poa

promo encourages consumers to buy more than 100

bob airtime to get double rewards.
§ Incentives towards purchase e.g. joining an elite
group of male sophisticate types i.e. Adam magazine
§ Smooth seasonal deeps in performance e.g. coke?

§ Generate a consumer database for tracking &

targeting purposes e.g. Nakumatt smart card
§ Increase shelf space allocated to your brand e.g.
Notorious brands like blueband & tusker have been
known to understand the value of shelf space. NB
80% of purchases decision are made at POP.
Did you know that love is the most
profitable emotion? So many
millionaires have made money from
this emotion.
THE PLC & MC

 Intro (awareness & acceptance)

• PR, Advertising, personal selling & sales promotion

 Growth (differentiation)
§ Advertising. Direct marketing, personal selling

 Maturity ( retaining customer loyalty)

§ ALL

 Decline (remind & reassure brand loyalists)

§ Direct marketing & personal selling
Conclusion.
 The future of marketing communications lies in
delivering customer value in newer more
innovative and cost efficient means.

 The emphasis on customer value is justified as it

is at the heart of securing future revenue streams
and loyalty.

 Inthese hard times that remain uncertain &

erratic customer value can be built diligently
through marketing communications.
CO NT ACTS

herb o85@gma il .com

ww w.l in kedi n.c om/ in/ herb ert ka ma u
My Blog: ht tp :/ /t huob rands .bl ogsp ot.com /
Cel l: +2 54 7 2040 5080
Brands can’t be copied, they can
succeed in difficult times & can’t
grow old….they are timeless
END
Thanks for your time