1

Marketing Communications

An Introduction

2

Marketing Communications Defined

The coordination and integration of all promotion tools and sources within an organization to maximize the impact on consumers and other end-users at minimal costs.

3

F I G U R E 1 . 4Components of Promotion

Product Price Promotion Distribution

Advertising Sales Promotions Personal Selling

DatabaseMarketing

DirectMarketing

SponsorshipMarketing

InternetMarketing

PublicRelations

4

• Development of information technology

• Changes in channel power• Increase in competition (global

competitors)• Maturing markets• Brand parity• Integration of information by

consumers• Decline in effectiveness of

mass media advertising

Tickets & travel, 29.0%

Computers, electronics, and software, 28.7%

Household, 12.8%

CDs, music, and videos, 11.8%

Books, 8.5%

Apparel and gifts, 5.0%

Toys and games, 4.2%

Other, 0.1%

Factors Affecting the Value of IMC Programs

5

• Which advertisement attracts your attention the most?• Which advertisement is the least appealing?• How important is the brand name in each ad?• What is the message of each individual advertisement?• What makes each advertisement effective?• What are the pros and cons of each advertisement?

E X H I B I T

Shoe Advertisements

Skechers (http://www.skechers.com)

New Balance (http://www.newbalance.com)

Reebok (http://www.reebok.com)

Asics (http://www.asicstiger.com)

6

Communications Theory

In order to understand marketing communications, one must not only understand marketing, but also understand some elements of communication theory.

Communication defined - the process by which individuals share meaning.

7

Information

Information is what is exchanged in the communication process

Information is described as a one-way process, whereas the communication process is regarded as two-way, a dialogue

Why do we try and obtain information before making a purchase?

A receiver-orientated view defines information as the “reduction of uncertainty” (Wersig 1974:73)

8

The Power of Information

Certain communication initiatives are “better” at eliciting information – i.e, personal selling, and forms of direct marketing and direct response marketing

Information is obtained through mutuality, sharing with other consumers – i.e., impact of word of mouth communications, and consumers knowledge and interactions.

Information is key to influencing and determining consumer choice decisions.

What’s Happening?

http://business.financialpost.com/2010/09/09/fp-marketing-will-sex-violence-and-science-fiction-help-sell-baby-carrots/

9

10

Communication Process:a linear model

Sender

Encoding

Channel

Decoding

ReceiverNoise

Noise

Noise

Noise

Feedback

11

F I G U R E 1 . 2Communication Noise in Television Advertising

12

Advertising Clutter

• How many ads were you exposed to during the last 24 hours from the following media? Television Radio Magazines Newspapers Billboards Internet Web sites

• How many ads can you recall from each of the above media?

Discussion Slide

13

Kelman’s model of Message Source characteristics These characteristics influence what we see,

what we choose to see and listen to.

Source Credibility

Source Attractiveness

Source Power

14

Source credibility

Refers to the extent that receivers perceive the source as able and willing to give an objective opinion.

15

Source attractiveness

Occurs when the receiver identifies some type of relationship with the source and therefore adopts a similar position.

16

Source power

This is said to be present when the source of a message is able to reward or punish.

Any questions or comments?

17