2012/2013Author: Dr P.Harborne1 Principles Of Marketing BS2101 Lecture 9 Communicating the Offer.

2012/2013 Author: Dr P.Harborne 1

Principles Of MarketingBS2101

Lecture 9

Communicating the Offer


Principles of Marketing

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Communicating the Offer

ObjectivesTo understand:• The marketing communications process• Types of marcomms• Strengths of each type of marcomm• Barriers to effective communication• Key issues in effective communication


Structure

Communicating the offer

1. Communication process

2. Advertising

3. Targeting Adverts

4. Promotion through spokesperson

5. Promotions

6. Public Relations

Communication process



Integrating Communications Strategy


SenderAssembles message

into words, pictures etc

Final messageCommunicated via

chosen media

ReceiverInterprets message

Receiver’s responseWhat they learn, feel, do as a result of the

message eg purchase

Feedback to sendere.g. complaints, commendations

NOISE

The Communications Process


Planning a Marcomms campaign

Strategy issues:

• Who is our target audience?

• What do we need to communicate and achieve (objectives)?

• How much shall we spend?

• How well did we do?

Media issues:

• How should we communicate this? (i.e. the message)

• Where should we communicate this? (promotion mix)

• When do communications need to take place? (promotion schedule)


Coordinationof Marketing

Communication Efforts to Influence

Attitudes orBehaviors

Coordinationof Marketing

Communication Efforts to Influence

Attitudes orBehaviors

Builds Relationships

Persuades

Informs

Reminds

Promotion ObjectivesWhat?

advertising



Advertising & Persuasion

• 1950s :Hidden Persuaders’ - mistrust of adverts• Govts increasingly control

– UK Ban on tobacco advertising– UK Control on alcohol advertising

• In UK consumption higher since adverts tightened in 2005

– UK Control on junk food adverts • But does ‘go to work on an egg” revival ban ruin perceptions

• Calls for control on UK adverts for– 4x4 cars– Children ( already exists in Sweden)

But does advertising really persuade?


Subliminal advertising


Knocking copy 11

2

From S Africa. This is not allowed in the UK.

Knocking copy 2


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4From S Africa. This is not allowed in the UK


Influencing consumers

Current techniques

• Product placement – videogames, movies, TV programmes

• Interpersonal influences - pay people to

• order certain drinks in public places

• praise products at parties/events

Are these really effective? Do you buy because James Bond does? Or because Brad

Pitt does? Or because your next door neighbour does?


Advertising and Business

• Advertising must be justified by business• TV programme rely on adverts • Sports coverage rely on adverts

– FI racing– Premiership football

• If banned then will programmes be made?• Will OFCOM 2010 policy change on product

placement help?• If watersheds, then will sports events be re-

timed?


Business Effectiveness

• Advertising must be justified for businesses • Does there need to be dialogue i.e. interactive

communication?• Is personal communication required for some

customers - salesforce (telesales, field force)?• What is the actual cost of the message?• How long does it take to work?• Does it need tweaking?Need process to calculate costs and to track &

control campaigns


Percentage ofsales method

Affordable method

Objective and task method

Competitiveparity method

METHODS FOR

BUDGETING

PROMOTION

Marcomms Budget

How Much?


Building the elements

• Need to consider elements such as:– The message– The desired source of influence– The medium

• Need to integrate multi-media approach (see earlier)

• Consider Emirates & sponsorship of Arsenal• Is it only Arsenal fans as the target?


Sources of Influence


Scheduling

• Communications need to be co-ordinated with the rest of the marketing activity e.g.– Product availability– May wish to coincide with related events eg

• Robinsons drinks and Wimbledon• Turkeys at Christmas

– Sometimes industry timetables e.g. major trade shows


Advertising

Includes:– TV– newspapers– magazines & periodicals– cinema– radio– billboards & posters– other media

• eg buses, taxis, petrol pumps, games

Medium


Recent developments

• Online advertising– Can be image on page, or paid link– But consider Facebook and concerns over adverts– Consider Second Life placement

• Contextual advertising– targets users based on keywords in message (e-

mail, text)– Exploration of shop or mall based adverts/offers -

mobile tele recognised & message sentBUT EC DIRECTIVES ON COOKIES & USE OF

PERSONAL DATA (e.g Facebook)


Recent Developments

• Permission-based i.e tick the box– Generates more response than mass marketing

• Viral marketing - exploits social networks– Uses funny clips, games,messages (text or e-mail)– ‘satisfied’ customers circulate e.g. Old Spice adverts

• Guerilla marketing – ‘ambushing potential customers with promotional

content in unexpected places’ • in 2001, IBM painted “Peace loves Linux” on pavements in

San Francisco & Chicago• In June 2010 Dutch brewery (Bavaria) used orange mini-

skirted women at World cup game


Recent developments

• Paying customers to ‘check in’ • Quidco, a cashback and voucher site released a mobile

phone app in June 2011• Customers check-in on their phone while in-store - 25p

for carphone Warehouse; 20p for Halfords; 15p for Majestic Wine

• Register a card with Quidco and also get cashback in Debenhams, Cineworld, Austin Reed

• Other sites with phone apps- MyVouchercodes; Petrol Prices

• Tescos & Sainsburys offer apps where your phone becomes the Clubcard or NectarCard


Selecting Advertising Media

Key factors• Characteristics of target audience

– Media usage behaviour, exposure• Budget• Creative constraints

– Best presentation of the message eg visuals, colour• Timing

– Seasonality of offering; cost of media at different times• Reach and frequency

– How wide message needs to be spread, & how often


Example Of Press Costs

• Daily Mail full page colour position not fixed £46- 50K (4.6m readers - 53% women;63% >55; 63% ABC1)

• Daily Telegraph full page colour £59K (Page 1 £68k) (1.9m readers – 56% men; 59% >55; 59% AB adults)

• Guardian full page colour )mono) £18k (£11.4m) (1m readers- 47%women; 49% <45; 88% ABC1)

• Guardian Inserts 16 pages loose weekdays £50/100• The Sun full page colour Mon-Fri £40-43k*

(7.2m readers – 59% men; 53% 15-44; 87% C1C2DE adults)

www.nmauk.co.uk for facts & figures

The media fix their advertising rates according to the size of their

audience and its age and social profiles:

http://www.nmauk.co.uk/


Examples of Media costs

• Posters(48 sheet) £1k month (96sheet) £2k month• Poster (backlit 96 sheet) £2k per week• Advan £6k p.m.; trailer £1.3kpm;Postabike £6k pm• Leaflets full Colour A4 £43/1000• Cinemas (London 530 screens) £3.5K per 30 seconds

per day ( 5secs upwards for slots)• Virgin FM (London) 30sec spot, drivetime £0.5K;

minimum spend £3k per month• Radio cost is evaluated as Cost Per Thousand listeners (

verified by RAJAR)


Example of TV Costs

ITV1 – varies by time of day, viewing figures (TeleVision Ratings), no. of advertisers, time of year, event

Sell in 10 sec units but most common 30 sec advert (single)

• 11 am 2.5TVR (2.5% of all adults) £5,020 • 18.45 (7TVRs) £24,667• 19.30 Coronation St (26 TVRs) £59,549• ITV2 2 spots per day (26.2 TVR) £45,000


Designing an Advert

Unique Selling Proposition

Unique Selling PropositionHumorous

Appeals

HumorousAppeals

Fear AppealsFear Appeals

ComparativeAdvertising

ComparativeAdvertising

DemonstrationDemonstration

TestimonialTestimonial

Advertising Appeals

Slice-of-LifeSlice-of-LifeLifestyleLifestyle

Sex AppealsSex Appeals


Treatment


Treatment 2


Treatment 3

Does sex sell?


Low Involvement Treatment


Low Involvement Treatment 2

Analyse this - what is the message and does it work?


Parisian Love


Parisian Love

• Consider the Google advert– Content– Structure– Format– Medium

• Is it an effective advert?

Targeting adverts



Wassup


Wassup again

Why would you do this?

Promotion through a spokesperson



Spokesperson factors

Credibility source’s perceived trustworthiness, expertise, objectivity. however expert comprises believability by appearing in ads

(hired-gun). Attractiveness

refers to the source’s perceived social value. physical appearance, personality, or social status; or

similarity to the receiver. Celebrity

athletes, musicians, movie stars, comedians “Q rating” of a celebrity: consumers’ level of familiarity and

rating of consumers attitude towards person.


Spokesperson


Spokesperson

• Consider the new Old Spice adverts

• Tied into campaign of response to questions by twitter, Facebook etc

• ‘face’ is an ex US footballer who admits to using a false voice on the advert

• Is the ‘silliness’ enough to establish him as an actor not spokesperson?


Spokesperson factors

• Jamie Oliver & Sainsburys– Backlash from school food campaign

• Wayne Rooney & Nike– Metacarpal injuries; private life revelations

• Tiger Woods– High profile divorce

• “Lost in Translation” - geographical limitations

Promotions



Attracting Consumers With Price Breaks

Attention-Getting Consumer Promotions

CouponsCoupons

Price DealsPrice Deals

Refunds Refunds

RebatesRebates

Special PacksSpecial Packs

ContestsContests

SweepstakesSweepstakes

PremiumsPremiums

SamplingSampling

Point-of-Purchase PromotionPoint-of-Purchase Promotion

Consumer Promotions

Public relations



Public Relations

Build good relations with company’s ‘publics’ by: – Obtaining favourable publicity– Building a good corporate image– Heading off unfavourable rumours etc

• Press interviews / releases• Special events / stunts• Visits to the firm

– e.g. Sellafield• Sponsorship• Community projects

• Video films• Shareholder reports• Corporate identity materials• Training courses• In-house publications• Conference appearance


Introducing New Products toManufacturers

Introducing New Products toManufacturers

Introducing New Products to Consumers

Introducing New Products to Consumers

Influencing Government Legislation

Influencing Government Legislation

Enhancing the Image of a City, Region, or Country

Enhancing the Image of a City, Region, or Country

Calling Attention to a Firm’sInvolvement with the Community

Calling Attention to a Firm’sInvolvement with the Community

Objectives of Public Relations


Emerging Issuessee OFCOM 2011 report

• Average 4 hrs daily but 14% of TV watching is time-shifted

• VCR/DVR allow TV viewers to skip adverts - so is TV advertising worthwhile?

• Teenagers increased use of smartphones means less TV watching

• TV and radio now accessed through internet as well • Radio listening hours dropping

– but 91.6% of adults listen (just for less time)• Online advertising spend in 2010 was £4bn (26% of all

advertising) • TV advertising spend in 2010 was £5.2bn

Emerging issues 2

• Could viral advertising etc be less acceptable if firms seem to exploit it e.g. Cadburys & online campaign for Wispa bars; buzz vs hype (viral)

• Governments increasing control of adverts



Summary

We have explored:• The marketing communications process• Types of marcomms• The relative cost of types of marcomms• Strengths of each type of marcomm• Barriers to effective communication• Adverse perceptions of adverts• Increasing legislative control of marcomms• Key issues in effective communication

2012/2013Author: Dr P.Harborne1 Principles Of Marketing BS2101 Lecture 9 Communicating the Offer.

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Transcript of 2012/2013Author: Dr P.Harborne1 Principles Of Marketing BS2101 Lecture 9 Communicating the Offer.