Marketing

Communication Mix
TOPIC 7
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 Overview
• To introduce the concept of communicating value
• To identify key marketing communications audiences
• To examine the basic process of
communication
• To understand the interactive nature of marketing
communications
• Explanation of the basic tools of marketing
communications
• Highlight some of the strengths and
weaknesses of tools of marketing communication
 Integrated Marketing Communications

The concept under which a company carefully integrates and

coordinates its many communications channels to deliver a clear,
consistent and compelling message about the organization and its
products.

(Kotler 2007,7th Edition, p. 608)

Elements in the Communication Process
Who Communicates with Who?
Sender is the party sending the message to another party.

Encoding is the process of putting thought into symbolic form.

Message is the set of symbols the sender transmits.

Media communications channels which message moves from

sender toreceiver.
Receiver is the party receiving the message sent by another party.

reaction of the receiver after being exposed

Response to the message.

Feedback
part of the receiver's response communicated back to the
sender.

unplanned static/ distortion during the communication process whic

Noise results miscommunication such as receiver getting a different
message than the one the sender sent.
 Major Communication Decisions

Fig 16.4 p 617 Kotler, Brown, Adam, Burton, Armstrong:Marketing 7e ©

2007 Pearson Education Australia
Tools Used to Communicate Messages
Any marketing communications campaign will
employ a combination of the following tools

• Advertising
• Public relations/Publicity
• Direct marketing- direct marketing, telephone marketing, online, SMS.
• Sales promotion- coupons, contests, cents-off deals.
Advertising says “buy our product” but Sales promotion
says ”buy it now”.
• Personal selling -personal interaction between 2 persons.
Marketing Communications Mix
Selected Strengths and Weaknesses of Tools
Tool Strength Weakness

Low cost per person exposed to

Advertising Easy to ignore
advertisement

Sales Promotion Encourages trial Effect may only be shortterm

Direct mail Response Can be customised Can be perceived as ‘junkmail’

Message is often perceived as Often uncontrolled, can be

PR / Publicity
morecredible negative

Expensive, may be out of control

Personal Selling Interactive, can ‘close the sale’
of organisation

Sponsorship Cost effective Uncontrolled peripheral message

Factors Affecting the Marketing
Communications Mix
• Communications objectives
• Buyer readiness
• Push or pull strategy
• Stage in the product life cycle
• Type of product and market
Possible Communications Objectives
To inform

Telling the market about a new product Describing available services

Suggesting new uses for a product Correcting false impressions
Informing the market of a price change Reducing buyers fears Building a
Explaining how the product works company image

To persuade

Building brand preference

Persuade buyers to purchase now
Encouraging switching to your brand
Persuading buyers to receive a sales
Changing buyer perceptions of product
call
attributes

To remind

Remind buyers that the product may be Keeping the product in the buyer's
needed in the future minds during off seasons
Reminding buyers where to buy the Maintaining top-of-mind product
product awareness
Buyer Readiness States
 Possible Communications Objectives

Push Strategy: Use of incentives to motivate buying & reselling of products. .

 Stage in the Product Life Cycle
Product life cycle promotion strategies

Stage in
Introduction Growth Maturity Decline
PLC

Build Emphasise
awareness Build brand
Promotion among early awareness and differences Reduce
strategies adopters and interest in mass and benefits, tominimallevel
intermediaries, market encourage
entice trial brand switching
 Setting the IMC Budget

Four common methods used to set the total budget for advertising:
• Affordable method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method
 Advertising

Advertising is any paid form of non-personal

communication by an identified sponsor

Have to make media and vehicle choices

• Broadcast
• Print
• Outdoor- hoardings
• Interactive (Electronic)
Setting Advertising Objectives

Objectives: Build up Demand by informing potential users

about a product.
Persuasive advertising: Use as competition
increase, firm try to persuade audience that its
brand is a better buy.
Reminder advertising: Maturity stage or with
many competitors.
Informative advertising: Use to introduce new
product. Aim is to build Demand .
Advertising aim at Awareness

iWatch
 Persuasive ad – usage expansion

Consume
“Kellogg” at
other times
other than
breakfast
Reminder ad
Message Strategy
 Message structure
Three Message structure issues need to be considered:
• Draw a conclusion or leave it to the audience.
• Present a one-sided or two-sided argument.
• Present the strongest arguments first or last.

Message format

• A strong format is needed.

• To attract attention, advertisements could include: novelty and contrast, eye-catching
pictures and headlines, distinctive formats, message size and position and colour, shape
and movement.
 Sales Promotion
A direct inducement that offers extra value or incentive for the product to the sales
force, distributors or ultimate consumer, with the primary objective of creating an
immediate sale.
Main tools are:
• Samples- in-store, through mail, in magazines,...
• Price-offs- short term
• Refunds/rebates - on proof of purchase - Quaker oats.
• Premiums-free gifts eg glass with purchase of whisky
• Bonus packs - 20% extra free...
• POP - (point-of-purchase) in-store displays to POP encourage
purchase
Coupons
Coupons
 Direct Response
Direct Response Marketing involves techniques that use mass and targeted media to create
a direct response from customers

Technique Media

Direct selling Interpersonal

Direct mail and catalogues Mail

Telemarketing and SMS Telephone

Direct response advertising and

Radio, TV and press
interactive TV

Electronic Interactive Marketing Internet anf Email

 Public Relations and Publicity
• Public relations
• Building good relations with the company’s various publics by obtaining favourably
publicity, building up a good ‘corporate image’ and handling or heading off unfavourable
rumours
• Includes press releases, product publicity, corporate communications, lobbying and
counselling

• Publicity
• Activities to promote a company or its products by planting news about it in media not
paid for by the sponsor
 Personal Selling
Oral presentation in a conversation with one or more prospective purchases for the
purpose of making sales.
• The role of personal selling varies by types of business and industry, the nature
of the product of service, and the business strategy e.g. retail selling vs. selling
consulting services.
• The salesperson is often seen as ‘the company’ in the eyes of the customers and
prospects.
• The process of personal selling may involve: Generating leads - quality leads -
making sales calls - negotiating and closing the sale - following - up to build and
maintain the customer relationship.
 Sponsorships

• Sponsorships enhance a company, product or brand’s visibility by associating it

with something the market segment views as positive.
• Events and sponsorships are good relationship-building activities that can
emotionally bind customers to a company or brand.

• Includes:
• People with cultural, sporting or educational importance
• Cultural and sporting events
• Charities and causes
Changing Face of Marketing Communications

Viral advertising
“viral advertising” refers to the idea that people will
pass on and share interesting and entertaining
content; this is often sponsored by a brand, which is
looking to build awareness of a product or service.
Viral commercials often take the form of funny video
clips or interactive Flash games, an advergame,
images, and even text.
THANK YOU
SO MUCH!