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Introduction to Marketing Communications
What are marketing communications?
Marketing communications is a subset of the overall subject area known as
marketing. Marketing has a marketing mix that is made of price, place, promotion,
product (know as the four P's), that includes people, processes and physical evidence,
when marketing services (known as the seven P's).
How does marketing communications fit in? Marketing communications is 'promotion'
from the marketing mix.
Why are marketing communications 'integrated?' Integrated means combine or
amalgamate, or put simply the jigsaw pieces that together make a complete picture.
This is so that a single message is conveyed by all marketing communications.
Different messages confuse your customers and damage brands. So if a TV advert
carries a particular logo, images and message, then all newspaper adverts and point-
of-sale materials should carry the same logo, images or message, or one that fits the
same theme. Coca-Cola uses its familiar red and white logos and retains themes of
togetherness and enjoyment throughout its marketing communications.
Marketing communications has a mix. Elements of the mix are blended in different
quantities in a campaign. The marketing communications mix includes many different
elements, and the following list is by no means conclusive. It is recognised that there
is some cross over between individual elements (e.g. Is donating computers to
schools, by asking shoppers to collect vouchers, public relations or sales promotion?)
Here are the key of the marketing communications mix.
The Marketing Communications Mix.
Personal Selling.
Sales Promotion.
Public Relations (and publicity).
Direct Marketing.
Trade Fairs and Exhibitions.
Advertising
Sponsorship.
Packaging.
Merchandising (and point-of-sale).
EMarketing (and Internet promotions).
Brands.
Integrated marketing communications see the
elements of the communications mix 'integrated'
into a coherent whole. This is known as the
marketing communications mix, and forms the
basis of a marketing communications campaign.
Introduction to Brands.
Brands and Branding.
Branding is a strategy that is used by marketers. Pickton and Broderick (2001) describe
branding as Strategy to differentiate products and companies, and to build economic
value for both the consumer and the brand owner. Brand occupies space in the
perception of the consumer, and is what results from the totality of what the consumer
takes into consideration before making a purchase decision (Pickton and Broderick 2001).
So branding is a strategy, and brand is what has meaning to the consumer.
There are some other terms used in branding. Brand Equity is the addition of the brand's
attributes including reputation, symbols, associations and names. Then the financial
expression of the elements of brand equity is called Brand Value.
There are a number of interpretations of the term brand (De Chernatony 2003). They are
summarized as follows:
A brand is simply a logo e.g. McDonald's Golden Arches.
A brand is a legal instrument, existing in a similar way to a patent or copyright.
A brand is a company e.g. Coca-Cola.
A brand is shorthand - not as straightforward. Here a brand that is perceived as having
benefits in the mind of the consumer is recognised and acts as a shortcut to circumvent
large chunks of information. So when searching for a product or service in less familiar
surroundings you will conduct an information search. A recognised brand will help you
reach a decision more conveniently.
A brand is a risk reducer. The brand reassures you when in
unfamiliar territory.
A brand is positioning. It is situated in relation to other brands in
the mind of the consumer as better, worse, quicker, slower, etc.
A brand is a personality, beyond function e.g. Apple's iPod versus
just any MP3 player.
A brand is a cluster of values e.g. Google is reliable, ethical,
invaluable, innovative and so on.
A brand is a vision. Here managers aspire to see a brand with a
cluster of values. In this context vision is similar to goal or
mission.
A brand is added value, where the consumer sees value in a
brand over and above its competition e.g. Audi over Volkswagen,
and Volkswagen over Skoda - despite similarities.
A brand is an identity that includes all sorts of components;
depending on the brand e.g. Himalaya Pharmaceuticals.
A brand is an image where the consumer perceives a brand as
representing a particular reality e.g. Tanishq Reassuring
Expensive.
A brand is a relationship where the consumer reflects upon him
or herself through the experience of consuming a product or
service.
Four Banding Alternatives
A Branding Strategy Based upon Brand Franchise
Extension
A tool that a marketer can employ for branding
decision-making is the Four Banding
Alternatives. Four Branding Alternatives is a
strategic marketing communications technique.
It is a fun and creative approach that can add
value to any class that likes to discuss brands
and how they could be innovatively developed. It
is used when an organization considers adding a
product to its portfolio and its associated brand
name. The two variables for this matrix are
Product Category (Existing or New) and Band
Category (Existing or New).
New Product - a new product is developed with a series of new brand
ideas and meanings to the consumer.
Flanker Brand - a new brand is introduced into a category where the
organization already has established products.
Line Extension - a current brand name is introduced into a category
where the organization already has established products.
Franchise Extension - a familiar brand is taken to a product category
where it is unknown.
New Product - Sony enters the market for music downloads under a new
sub-branding idea and concept.
Flanker Brand - Sony introduces the Sony Vaio laptops (as it indeed
has).
Line Extension - Sony enter the market for digital HD TV's (as it has).
Franchise Extension - Sony enters the market for innovative
environmentally friendly small cars that run on solar power.
Exercise - Four Banding Alternatives
Banana Computers
Your Task
Apply the Four Banding Alternatives to the scenario
of Banana Computers. How should they progress
with their branding strategy?
The Loyalty Ladder.
Turning a prospect into an advocate.
The loyalty ladder is a tool for marketing communicators. The idea is that consumers can be moved along a continuum
of loyalty using a number of integrated marketing communications techniques (it is also referred to as a branding
ladder).
ladder). Essentially, consumers become loyal to a brand which has meaning to them in relation to a product, service,
solution or experience.
As with continuums of behaviour such as UACCA - Unawareness, Awareness, Comprehension, Conviction, Action, Action, or
AIDA - Awareness, Interest, Desire, Action,
Action, the loyalty ladder begins from a point where the consumer has Not Yet
Purchased,
Purchased, then he or she buys the product for the first time (Trialist),
(Trialist), if the trial has been a success he or she
returns to buy again and again (Repeat Purchaser) and finally the consumer buys no other brand (Brand Insistent). Insistent).
At the Not Yet Purchased Stage the consumer is merely a Prospect.
Prospect. As he or she trials they become a Customer.
Customer. The
Repeat Purchaser is a Client since he or she is becoming loyal. Finally, the consumer becomes an Advocate (i.e.
activist or campaigner) since he or she is Brand Insistent. At this point the brand is difficult to dislodge since it has so
much meaning to the consumer. Great brands such as Nike, BMW and iPod are in this highly desirable position.
The marketing manager needs to decide or select integrated marketing communications that move the consumer from
Not Yet purchased to Brand Insistent (i.e. from Prospect to Advocate). Once at Brand Insistent, the marketing manager
should attempt to keep the level of customer loyalty at this point, again by using integrated marketing communications.
The Loyalty Ladder - Exercise.
Farley's Irish Dream
Your Task
This is a very important stage. Often salespeople will leave without ever
successfully closing a deal. Therefore it is vital to learn the skills of closing.
Just ask for the business! - 'Please may I take an order?' This really works well.
Look for buying signals (i.e. body language or comments made by the client that
they want to place an order). For example, asking about availability, asking for
details such as discounts, or asking for you to go over something again to clarify.
Just stop talking, and let the client say 'yes.' Again, this really works.
The 'summary close' allows the salesperson to summarise everything that the client
needs, based upon the discussions during the call. For example, 'You need product
X in blue, by Friday, packaged accordingly, and delivered to your wife's office.' Then
ask for the order.
The 'alternative close' does not give the client the opportunity to say no, but forces
them towards a yes. For example 'Do you want product X in blue or red?' Cheeky,
but effective.
So this is the Five Stage Personal Selling Process. Now have a go at it yourself by
completing the lesson.
Exercise - Personal Selling.
Fishbourne Financial Services.
You are the salesperson for Fishbourne Financial
Services. You have worked hard recently on
prospecting and have a meeting with Mr Boosh,
regarding his personal finances. You have sent some
information to him prior to your call. You are about to
begin your sales call, and your objective is to sell the
client a pension scheme Complete the following Tasks:
(a) Mr Boosh raises the following objection - 'Your
pension scheme seems very expensive' - How would
you handle it? [There are 4 ways to handle this
objection]
(b) You have reached the end of the sales call. How
would you close the deal for the pension scheme with
Mr Boosh? [There are 3 ways to close this deal]
Advertising
Advertising is an important element of the marketing communications
mix. Put simply, advertising directs a message at large numbers of people
with a single communication. It is a mass medium.
your segment?
Would you buy this product or service
Organising events.
Corporate events are used to woo publics in both a formal and an informal
manner. A formal corporate event could include a manufacturer inviting
employees from all of its many distributors to visit its manufacturing plant
for a training day. This has a direct business payoff. A more informal
event could include a day at the races or a short-break abroad, where
clients are wined and dined at the cost of a company, in order to generate
goodwill. This has an indirect business payoff.
Facility visits.
Visits to a factory, such as a chocolate factory, or a facility, such as a
nuclear power plant also generate a positive perception of an
organisation. In the case of a factory visit, loyal customers or other
interested parties can experience for themselves what is behind a well-
known product. In the case of a nuclear power plant, concerned or
misinformed publics have the chance to see for themselves what really
occurs behind locked doors. Here the organisation has the chance to deal
with a delicate topic in a planned proactive manner. Public buildings such
as parliament buildings or churches would be included under facility visits.
Publicity events and 'stunts.'
Publicity events fall under the banner of guerrilla marketing. Here an
organisation will take the opportunity to seize upon a particular moment
to hijack public attention. Publicity events and stunts are practiced by
both companies and private bodies (including pressure and political
groups). A famous example of a publicity stunt was one conducted by
Fathers For Justice (a British pressure group for divorced fathers),
whereby individuals, dressed as Superheroes, invaded Buckingham Palace
in London.
Account management.
Creative.
Media.
Traffic and production.
Account planning.
Account management.
Account managers work for an agency with the client (an agency's customers are called 'clients'). Very often
they will spend a lot of time with the client working as part of their marketing team. This is one way in
which an agency works closely with its client and why the 'chemistry' between a client and its agency
needs to be right. The account manager makes sure that the correct information is passed from the client
to the other members of the agency. He or she is a co-ordinator and time manager. The account planner
will work on a brief that is fed back to the agency team.
Creative Team
The first internal agency team members to see the brief tend to be the creatives and the media planners.
The brief contains a 'proposition' that the client wishes to communicate to the target audience. The
creative team will transform the proposition into something exciting and attractive to the target audience.
The creative team decide upon the 'creative concept.' This will be a motivational idea. The words used to
express the creative concept are called 'copy.' The images, pictures and diagrams are created i.e. the
'design' or 'layout.' This is done by 'designers' and 'copywriters.' Beware some creatives! Creatives tend to
be artistic and innovative. Hence their advice should be highly regarded and any criticism should be
constructive.
Traffic and Production Team.
The traffic and media team are in charge of the production of the physical and
artistic output, i.e. the marketing communication. In the case of a TV advert, they
would commission scripts, recruit a ctors (mainly via agents), film crews and
supporting activities (such as costumes and catering). All ads are different and so
the specifics will vary. In the case of print advertising, the traffic and production
team would commission and sign-off all printed advertising material such as direct
marketing materials, magazine ads or posters.
Media Team.
The media team will organise the timing and scheduling of the marketing
communications campaign. They will look at the range of media to be exploited,
and then look at the best slots in which to run advertising. They will help a client to
decide upon the duration of and individual slot, and how many of them to run. Here
the expense and return to the client are key factors that influence decision-making.
The two main skills of the media team are media planning and media buying. Today
there is a wealth of data on which media buying can be based. There is software for
planning and simulation.
Direct Marketing.
What is Direct Marketing?
Direct marketing is a channel free approach to distribution and/or marketing
communications. So a company may have a strategy of dealing with its
customers 'directly,' for example banks (such as CityBank) or computer
manufacturers (such as Dell). There are no channel intermediaries i.e.
distributors, retailers or wholesalers. Therefore - 'direct' in the sense that
the deal is done directly between the manufacturer and the customer.
As mentioned above, 'direct' also in the sense that marketing communications
are targeted at consumers by the manufacturers. For example, a brand
that uses channels of distribution would target marketing communications
at wholesalers/distributors, retailers, and consumers, or a blend of all
three. On the other hand, a direct marketing company could focus upon
communicating directly with its customers. Direct marketing and direct
mail are often confused - although direct mail is a direct marketing tool.
There are a number of direct marketing media other than direct mail. These
include (and are by no means limited to):
Inserts in newspapers and magazines.
Customer care lines.
Catalogues.
Coupons.
Door drops.
TV and radio adverts with free phone numbers or per-minute-charging.
. . . and finally - and most importantly - The Internet and New Media.
The Internet and New Media (e.g. mobile phones or PDA's) are perfect for
direct marketing. Consumers have never had so many sources of supply,
and suppliers have never had access to so many markets. There is even
room for niche marketers - for example Scottish salmon could ordered
online, packed and chilled, and sent to customers in any part of the world
by courier.
Many companies use direct marketing, and a current example of its use,
as part of a business model, is the way in which it is used by low-cost
airlines. There is no intermediary or agent, customers book tickets directly
with the airlines over The Internet. Airlines capture data that can be used
for marketing research or a loyalty scheme. Information can be processed
quickly, and then categorised into complex relational databases.