End of Each Chapter Summary

8/12/2019 End of Each Chapter Summary

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Afkortingen=MC= Marketing communicationComm = communication

End of each chapter summary

Chapter 1In this chapter the major developments in marketing have been discussed.Producers and retailers are forced to position themselves clearly and to

distinguish themselves clearly from competitors. Consequently, marketingcommunication has become more important. The comm options are wide ranging

in account of the availability of many marketing communication methods and

media.There has been a development from transaction to relationship marketing. In

this, the relationship with and the retention of customers is a central issue.Customer information is kept in a database and used to approach customers on a

more personal basis.Brand awareness has increased. The development and strengthening of brands

has become more important. A strong brand is an exceedingly valuable

possession for producers and retailers. The factors that influence brand value are

brand image among consumers, market leadership, and packaging and especially

support through marketing communication. Consequently the brand policy and

the choice of brand name are of crucial importance. The brand image is the image

that consumers have of a brand. It comes into existence through personal

experience with the brand and/ or through marketing communication,

A brand has various functions for companies: distinction, continuity higher price,

easier product, product introduction and greater independence from the retail

trade.


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For consumers, too, a brand has several functions: distinction and recognition,

buying convenience and psychological function (brand image).Products and services differ greatly. Consumer markets differ considerably from

business to business markets, not least in communication streams and types of

preferential goods, shopping goods and specialized goods. The distribution of andcommunication strategy for these goods differ considerably.

These are various communication streams between producers, retailers and

consumers. These forms of communication must be integrated. A distinction that

is often made is between push and pull strategies. In a push strategy the retailers

are worked on so that they will include the product in their assortments. In a pull

strategy, consumer preferences are created. The ideal strategy is a combination of

push and pull. A successful campaign also needs good cooperation between retailand producer trade.Price has a communicative value has well. A high price suggests exclusivity and

high quality. Also remember the psychological price thresholds: products are

often priced just below them (e.g. 19.95) in order to make the expenditure look

less significant to consumers.

Chapter 2A companys communication mix consists of corporate and marketing

communication. Corporate communication has the entire company as its object

and does not have an immediate sales objective. It is aimed at creating trust in the

company and, if this is damaged by an incident, at restoring that trust and the

companys reputation. The target groups of corporate communication are both

internal and external:

Companies own customers and prospects (potential

customers) Government and politics


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Existing and potential employees The financial world Public opinion

The instruments of marketing communication are: Advertising Online communication PR and information extension Sponsorship Sales promotion DM communication In store communication Personal selling Exhibitions

Some methods are predominantly thematic and influence the knowledge and

attitudes of the target group. Other instruments are mainly action orientated and

influence the behavior of the target group. A good marketing communication

plan, in which the marketing communication instruments are integrated, may

result in important synergy for communication. Different target groups require a

different communications approach. The integration of comm campaigns is

becoming more and more important in order to attract attention amidst the

overload of rival communication and to create a distinctive identity. This requires

the proper org of all comm activities.

Chapter 3


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This chapter dealt with regulations and codes aimed at preventing and

discouraging undesirable effects of MC. It also provided an overview of the most

frequently used critical arguments with regard to mc.

MC tends to increase the prices of products and brands.

Sometimes this is the case. Consumers are prepared to pay more for a

brand associated with attractive benefits and values. In other cases, mc

leads to price reduction because it increases competition, keeps profit

margins low and leads to a cut in other marketing costs.The retail trade plays an important role in this, when producer brands co-exist

with store brands, a price drop usually occurs.

MCrestricts competition. This may be the case when

monopolies are formed. In many other cases, however, marketing

communication encourages competition. Most research leads to the

conclusion that competition does not decrease when the degree of mc

increases.Terms: full competition = ideal market for consumersMonopolistic competition = marktvorm waarbij zeer veel aanbieders een

heterogeen product aanbieden.

MC creates pseudo needs or undesirable spending patterns.

This could be the case, but we should not forget that consumers are brought

into contact with products and brands through comm. It is unlikely that mc

creates needs. There are in fact bans on mc for tobacco and alcohol.

Mc is sometimes used without being segmented. This may

cause irritation among consumers who are not member of the target group.

The following negative aspects are mentioned in this context: an insult to


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the intelligence, poor taste, creation if pseudo- reality and the

reinforcement of stereotypes.

A certain degree of exaggeration is inherent in mc. This may bedeceptive to some consumers. In this chapter, an overview was given of

types of deception. Deception occurs when, on the basis of comm messages,

consumers get the wrong image of a product or brand resulting in sub

optimal purchases.

An overview was also the laws and codes that have been developed to prevent and

discourage undesirable effects of mc. The following laws were discussed:

Law on deceptive advertising Law on games of chance Sweepstakes Law on the Protection of Personal Data Benelux Treaty on Intellectual Property (BTIP) Food and Drugs Act

Copyright act Media law

The advertising code has been developed as a sort of self regulation tool, and

contains general and specific rules of conduct with regard to mc for medicines

and medical service, alcohol, tobacco, telephone, info services, games of chance

and environmental claims for products and services.This chapter closed with a section on the foundation for idealistic advertising.

SIRE shows that mc may promote good causes in society. The mc world

collaborates without charge in SIRE campaigns.


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Chapter 4This chapter discussed the design of a strategic mc plan. Such a plan establishes

what it is to be achieved in specific target group and which methods (budget,

comm instruments, and media) will be employed.

A strategic mc plan consists of nine components. Each of these components has

been discussed briefly in this chapter. They will be discussed in more detail in the

chapters shown in brackets below.The nine components of the strategic mc plan are:

Research into consumers, products and competition (5) MC target groups (6) MC objectives (7) MC strategy (8) Choice of marketing communication mix of instruments (13-

21) Creative development (9) Media choice (22-23) Provisional and definitive mc budget (10) Communication evaluation (11)

Chapter 5In this chapter, consumer research and its importance to mc, have been

discussed. By means of research we gain an insight into the meaning and value of

products and brands for consumers. The level of consumer involvement is

important. When there is high involvement, there is a more elaborate meaning

structure of features, benefits and values. Means end chains connect these.

Product features lead to the realization of benefits for consumers.


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Brands and products have functional and psychological meanings. Psychological

meanings may be expressive or impressive. Products may be categorized

according to the degree of involvement, informational and transformational,

cognitive and psychological meaning. This categorization results in models for the

effects of communication.

Phase models of the effects of communication show how communication works

and in what order these effects occur. In the case of high involvement, the phases

are more elaborate and a change in knowledge and attitude must take place

before behavioral changes. In the case of low involvement, there is less change in

knowledge and attitude e before (purchase) behavior. There are also

subconscious effects of mc. In ATR model, a product or brand is tried first, and

evaluated later.

The scanning model combines the models for high and low involvement. With

high involvement, focusing is extensive, whereas with low involvement, focusing

us limited.Brands and products may be compared by means of a SWOT analysis.

Brands and products have a life-cycle, characterized by a rise and fall. MC may

contribute to a longer duration of the life-cycle of brands and products. Brand

extension is the use of an existing brand name for new products and services. This

is a way to keep a brand alive and vital.

Chapter 6This chapter is dealt with target groups for mc. adequate knowledge of target

groups is indispensable for effective comm with them.

There are three levels a segmenting and establishing target groups: general,

domain specific and brand specific.

The general level is concerned with more or less permanent characteristics of

people such as age, sex education and lifestyle. These characteristics are especially


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important for a description of segments that have been discovered in various

ways.

The domain-specific levelis usually most suitable for segmentation. Itconcerns product benefits and values within a specific interest for product

domain.

Brand-specific segmentationis especially suitable for the segmentation of

customers and non-customers on the basis of brand loyalty. Who are the most

profitable customers? How can a company persuade its customers to make more

purchases?

The chapter closed with a discussion of the roles in the decision-making process

in households: those of initiators, influential, decision makers, buyers, payers,

users and, if any, complainants. It is of the greatest importance for mc that this

division of roles on the purchase of products and services is taken into account.

Chapter 7The objectives of mc are derived from the marketing objectives of companies.

Without objectives, comm policy lacks direction. In order to know whether

objectives have been achieved, it is important to measure the situation before and

after a campaign.The following eight marketing comm objectives were discussed:

Category need Brand awareness Brand knowledge Brand attitude Behavioral intention Behavior facilitation


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Behavior

SatisfactionMC aims to achieve changes in these eight objectives. These objectives were

ranked according to the order in which consumer process info. Category needis especially important in the case of new products and services, and in order

to promote the use of products and services in general. Only after this, passive

and active brand awareness and brand knowledge become important. There

are different forms of behavior. Satisfaction is an objective in order to retain

customers and to cause repeat purchases.The DAGMAR model is a good example of the application of clearly

formulated objectives to mc strategy.

Chapter 8This chapter is focused on comm strategy for products and brands. An important

aspect of this is the positioning of brands, the place of a brand occupies in

consumers perception. Position is the way in which consumers perceive brands in

a product class.

Positioning is a comm strategy in which the benefits of brands are linked toproduct features (informational) and/or values (transformational) in order to

achieve a unique and favorable position of the brand in relation to other brands.

Competition and reputation are important factors in positioning.Depending on the phase in the product life-cycle (new product, growing product,

mature product, and product in the decline phase), there are differences in mc

strategy. For a new product, much explanation is needed for its use and its

benefits. A growing product may distinguish itself functionally, but may also be

given psychological meaning by mc.

For a mature product, product improvements and psychological meaning are

important, but also user satisfaction. A product in the decline phase may be

improved in order to lengthen it life-cycle, but it may also be repositioned.


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Chapter 12In this chapter the origin and history of the Dutch communication agency

business outlined. Twenty years ago, agencies for media planning and purchase

came into existence. The agencies organized themselves into professional

federations, such as:The VEA is the promotion of economic and trade related interests of its

members.Pragma - promotes the interest of small and medium size independent agencies

Advertisers formed by BVA - promotes the interests of companies in the field of

mc in the widest sense of the word

A communication agency has the following departments: account, creation,

marketing service, media, finances and traffic. Account executives (AEs) are

responsible for client liaison. Within the agency they represent the client. To the

client they represent the agency.AEs sell campaign to the client.

The choice of a communication agency is the result of a number of steps involvingcomparison, meeting and testing. It is extremely important for a company to

choose an agency that fits in with his ideas.

Good marketing is also dependent on a good relationship between client and

communication agency. Both parties may contribute to a good relationship. There

are various possible arrangements for agency remuneration. The traditional 15%

arrangements are taking their place, such as the cost-plus system, a fixed orvariable percentage of profit, a fixed fee, or a result based fee.

The revenue of a communication agency consists of the following components:

media commission, hours worked, and a surcharge on purchases. The return on


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investments of Dutch agencies, however, lags behind the level of 20% that is

deemed necessary internationally.

Creative hot shops - Creative hot shops occupied themselves exclusively with developingcommunication concepts. Media advice, market research and other marketing activities

were not part of the services they offered.

Trade associations - Dutch agencies and advertisers have their own trade associations

these are the : The association of communication agencies (VEA), Pragma, the

association of advertisers

VEA - It purpose is the promotion of the economic and trade related interests of itsmembers. Memberships of the vea is open to agencies n the field of marking

communication that are of high professional standing and that advise their clients on

policies related to mc strategy.

Pragma - founded in 1988, it promotes the interest of small and medium sized

independent agencies.

Association of advertisers - Promotes the interest of companies in the field of marketing

communication in the widest sense of the word.

Account department - the account department is run by account executives, who are

responsible for relationships with clients. AEs maintain regular contact with clients.

Creative department - the creative department in an agency comprises the following

functions ( Copywriters, Art directors, Visualizers, Desktop publishers, RTV department,

Traffic, Production). These functions are together responsible

for developing and producing the communication message.


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Traffic department - All work done by the creative department and other departments is

coordinated by project managers and or traffic managers, who are also known as

operations or project management. the people working in traffic and the project

managers are the lynch pin of the agency. They take care of purchasing photography for

instance. they prepare budget and plans and make sure everyone adheres to the budget

and plans.

Marketing services - The account department and the creative department are supported

by a marketing services department. This department helps formulate the

communication strategy. if necessary it carries out research - either using its own staff or

outsourcing to specialized research agencies.

Media plan - the media departments involvement begins with the preparations of amedia plan. a number of choices are made. 1st the types of media to be used are selected

(small companies> one type of media, big companies> multitude of media). after

selection of media types > selection individual media> how these media should be

used ( choices have to be made : times, frequency and formatting).

Media agencies - Specialized media agencies that purchase media space and offer

services like media planning, media strategy and media research.

Services required of an agency - Questions that might been asked :

+Is the agency required to give marketing advice or does the client have sufficient

knowledge and experiences in the field+Is advice about all mar com methods needed? are specialized agencies required, for

instance, for packaging and sales promotion or is the intention to have all mar com

problems handled by one agency?+Should the agency be responsible for all work or will the client take care of e.g. printedmatter and simple media placements.

+ Is the agency required only a number of creative concepts and will the client elaborate

these himself, or should the agency do this?+Is media placement to be handled by a media agency or should this be done by the com

agency?


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Quantitative criteria: Size, Turnover development, International links, knowledge and

experience, other clients, staff continuity, finances and location.

Qualitative criteria: The agencys philosophy and the quality of its creative workContinued talks: talking continuously in order to strike the deal

Commission system: The client and the agency agree a percentage of the net expenditure

covers the agencys costs. the net expenditure is the amount the agency pays the

suppliers and media. the discounts granted on these suppliers and media are subtracted

from them. depending on the type of services supplied, the agency charges commission

on the net expenditure. this commission is the agencys reward for its own performance.

Cost-plus system - the cost plus system is geared entirely to the services supplied. all

hour are billed at an agreed rate, and there is a surcharge on purchases. the plus relates

to the surcharge and the profit margin incorporated in the hourly rate.

Fixed percentage of profit - its just that a fixed percentage of profit the agency and client

can agree on.Minimum and maximum ROI - This arrangement guarantees the agency a minimum of

ROI but it will achieve a higher return by working efficiently. if the return exceeds the

agreed maximum, the surplus us paid back to the client. for a

client this is also a stimulus to collaborate efficiently.

Fixed fee - for an agreed amount the agency must carry out an agreed work.

Results based fee - Some clients prefer a results based fee arrangement, whereby the

agencys remuneration depends on the results of its efforts.


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Media Commission - Sometimes an agency receives a media commission of 15%. these

are the media costs charged to the agency that are 15% lower than the price the client

would have paid if he booked directly.

Hours worked: these hours include the hours that have to do with the creation and the

production of advertisements, commercials, printed matter and other comm messages,

particularly the hours put in by the creative department( all the functions within this

department their costs are above the line costs)

Below the line costs- these are the hours that are spent on advertising, supervising and

coordination; hours spent by AEs, media planners and marketing services personnel.

Chapter 13The history of advertising goes back more than 2000 years to the Greeks and

romans. The invention of the art of printing and the advent of mass media

strongly increased the potential and the effectiveness of advertising. The first

advertising agency only booked advertising space; later, agencies began to give

advice as to the content of advertising messages. In 1967 the first tv commercials

were shown in the Netherlands.Advertising has now become an inextricable part of society. Annual mediaexpenditure per capita in the west us about 2000, but there us a gradual shift

from mass advertising to personal forms of communication and to experience

communication.

There are various types of advertising: consumer advertising( from producer to

consumer), retail advertising(from retailer to consumer), B2B advertising,

personnel advertising and collective advertising. Collective advertising is not

aimed at a particular brand but at a whole category of products and services. Thisreinforces category need.

Advertising for an international brand may use a number of strategies: global,

adaptation, before a global or a differentiation and local.


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In a global strategy, the positioning, proposition, concept and execution are

identical in all countries.In an adaption strategy the execution is different in every country. In a

differentiation strategy the concept and the execution differ.In a local strategy, a different campaign is run in each country and elements may

differ. Before a global or adaption campaign is started, the advantages and

disadvantages of standardization must be carefully considered. They require good

organization and a comparable market position in all countries.The objectives and benefits of an advertising campaign are brought together in an

advertising plan. The plan is a requirement, but not a guarantee, of a successful

campaign. Media, process and effect objectives can be identified.

Media objectives are related primarily to the reach of the advertising.

Process objectives are concerned with the way in which advertising is processed

by the consumer, in other words with as attention, valuation, etc. media and

process objectives are necessary,

But effect objectives are the ultimate objectives of the campaign.Through mass media like television, radio, newspapers, magazines and the

internet advertising is an attempt to influence the knowledge, attitudes and

possibly the buying behavior of consumers. To what extent advertising succeedsin influencing buying is the subject of many accountability discussions.

Using scanning techniques, the short term effects of advertising can now be

established quite accurately, and many researched focus on these. The long term

effects are more difficult to establish.

Effies are prizes awarded for campaigns that have proved to have had the

intended communication effect.Printing - the invention of printing was one of the major important events which

enabled advertising on a large scale.Newspapers - After the invention of printing, it was quite awhile before the first

newspaper appeared. the precursors of newspapers were the newsletters written


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Objectives of a collective advertising:

- Creating an alternative for brand advertising.

- Setting a quality standard. Distinguishing the top-suppliers

of a product or service from the rest.

- Achieving cost savings. Combining forces might reduce costs

of advertising, costs of the products can be lowered. Which is quite useful if

your products are taking hits from indirect competition(substitutes)

- Improving morale and self-confidence in the sector.

- Improving discipline in the sector.

- Improving the technical sophistication or raising the level of

advertising

- Launching a new product

- Entering foreign markets

- Influencing the product image

- Communicating a specific generic message

- Drawing attention to the various possibilities of product

usage

- Emphasizing a specific feature of a product

- Taking advantage of the weak points of the (indirect)

competition

- Influencing attitudes towards a product type

- supporting consumers.

Global strategy.: Same brand and advertising strategy, the same concept and thesame execution in every country. Why? 1. cost saving = one advertising strategy,

creative concept and execution. 2. customers are getting international oriented.

Also referred to as a standardized global, or worldwide strategy. Products as

cosmetics, softdrinks and fashion clothing are often internationally standardized.

An important motive for a global strategy is cost saving. It must be important to


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position the brand in the same way in every country, the target group should be

identical in all countries.

Adaption Strategy.The same brand and advertising strategy and the same concept in every country,

but a different executionAdaption of the Global Strategy to different cultures. Picking local celebrities for

different countries is an example.

Differentiation Strategy .The same brand and advertising strategy in every country, but a different concept

and a different execution

Due to the different nature of the product use, life-cycle, positioning or culture in

the different countries, a standardized approach might not work. Local agencies

are allowed to adapt the advertisements by adapting the creative concept, but

maintaining the brand- and advertising strategy.Local strategy.: a different brand and advertising strategy, a different concept and

a different execution in each country.

Degree of standardization:

- Target group, should be the same in every country- Positioning, is it possible to position the brand the same in

every country(values)

- Nature of the product (B2B market)

- (Market) Environment

- Organization. GM Opel example.

Advertising plan:1. Research - composition of the market, consumer buying behavior, the strong

and weak points of ones own brand in comparison with competitive brands2. Advertising target group - the more accurate a target group is defined the better

it can be reached. the advertising target group doesnt have to be the same as the

mc target group.


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3. advertising objectives - These should be relevant to the selected target group.

4. advertising strategy - the proposition must distinguish the brand from

competing brands and it must be credible to consumers.

5. Campaign development - here it is the how that matters. the agency receives abriefing from the advertisers6. Media selection - the where and when are relevant here. In which media when

and how often?7. Definitive advertising budget - after all these phases a definite budget must be

established8. Execution campaign - placing of advertisements, tv spots9. Evaluation advertising research - have the formulated objectives been realized

Media objectives. - media objectives relate to the reach and contact frequency of

an advertising campaign. They answer questions: Which part of the target group

is to be confronted with the campaign through which media? How often within a

buying period should they be confronted? and how should they be confronted. the

media objectives also concern the qualitative aspects of the confrontation. they

also want to know about the eventual effectiveness of the campaign.Process objectives - process objectives are objectives related to the direct

reactions of consumers to an advertising message. Process objectives specify what

should happen between the moment that the consumers are confronted with an

advertising message and the eventual effect of this process. Process objectives are:

1.Drawing attention2. Creating acceptance and appreciation3. Aiding information processing

Advertising effect objectives - what the consumers feel think and do in relations to

the brand. A couple of advertising effect objectives are:1. category need


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2. brand awareness3. brand knowledge4. brand attitude5. behavioral attention6. behavior facilitation7. behavior8. satisfaction

Chapter 14Since advent of the internet, mc has changed radically. The controllability of

comm has decreased. Consumers can take control of a brand or a

communication message. Opinions about brands are broadcasted via windows

live(MSN), twitter and on YouTube funnyand irritating commercials are placed

and downloaded. Companies have partly lost control of their brands and their

comm and now have to anticipate situationbs that may change rapidly. What

matters now is offering consumers relevant info and attractive entertainment

when they are looking for it on the internet. The internet is also a place wherecompanies may accurately place their messages in form of banners and buttons.The production and media costs of online mc are considerably lower than in the

offline world. Online media are usually linked to the number of clicks or reads;

production costs involve maintaining customer files and individualizing and

targeting messages.The measurability of the effectiveness of an online campaign is faster and grater

with web analytics such as google analytics. Communication managers know

almost immediately where visitors to their website come from, how long they stay

on the website and which pages they visit. Possibilities to adjust comm on the

basis on this info have increased and van be realized more quickly. In this sense,

the work of comm managers is becoming more effective. Second life and habbo

are online worlds ion which people meet each other and are confronted with

products and brands.


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The online world facilitates the finding of info and selection among alternatives.

Consider in this respect bookstores and travel agencies. The online and offline

worlds are connected, however, when the aim is for the consumer to make a

selection from what is on offer and to plan a store visit.

Chapter 15Public relations (PR) is more than just a mc instrument. Internal and financial

comm are also part of PR. This causes a considerable overlap between PR and

corporate communication. In this chapter, the various forms of PR were

discussed.Internal PR is aimed at target groups within an org and comprises function-

oriented, task-oriented, and cohesion-orientated and person orientatedcommunication.

External PR is aimed at target groups outside a company that are important to

the companys continued existence.

A financial PR or investor relation is aimed at banks and shareholders and is

important for financing a company.

Public affairs is aimed at the societal and political relations of a company.

Marketing PR is part of mc and is aimed at intermediaries such as journalists or

opinion leaders, to obtain favorable publicity for an organization or brand.

Marketing PR is especially used for an intro of a product, new brand and for

special events.

Creating and maintaining good relations with target groups is the (primary)

objective of PR.Pr is not directly aimed at turnover but may create a favorable climate for the use

of other mc methods. Among the tasks of PR are:


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Lobbying Influencing public opinion Associating a product with an event Ghost writing Issuing press releases Initiating viral mc

PR may play a role in defensive, assertive, tactical, and strategic reputation

management in order to evoke a favorable, or perhaps less unfavorable, image

among target groups.Information extension does not have a direct turnover objective either.Educational, informative and persuasive information extension may be

distinguished. Changes in knowledge and attitudes among target groups are

usually the prime objectives of information extension.

Chapter 16In the past, sponsorship was sometimes a management hobby. Now sponsorship

has developed into a professional and fully fledged mc instrument. Through

sponsorship, communication objectives may be realized that are difficult to

achieve with other instruments.The objectives of sponsorship are linked to increasing brand awareness, brand

knowledge and brand value, strengthening brand attitude and brand image,

showing social responsibility, making and maintaining business

contacts(hospitality), and motivating the companys own employees. Sometimes

the objectives are increasing turnover and reaching specific target groups.Objects for sponsorship are social projects, sports, the arts, culture,

entertainment, events, education and science. Television and radio programmes

are sponsored as well.The commitments of the sponsor and the sponsoree are usually set out in a

contract. Essentially, the sponsor provides financial support. The sponsoree


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makes sure that the brand of the sponsor gets as much favourable exposure as

possible.It is not only the objectives of a sponsorship that are important. Measuring and

assessing its effects are also vital. According to its effects, a contract may be

prolonged, changed or terminated.Finally, it is important to select the right sponsored object. It should be carefully

considered whether the object fits in with the sponsors strategy and aims and

whether the desired effects can be achieved at a reasonable price.

Chapter 17Classical sales promotions are temporary increases in the value or reductions in

the price of a brand in order to generate extra sales in the short term. A sales

promotion may however also be used to influence the experience of and attitudes

towards a brand (thematic sales promotions). Here, turnover is not the focus but

the surplus value of the brand (knowledge and attitude).

The following types of classical sales promotion were discussed: Temporary discounts Coupons and refunds Bonus packaging Sampling (free samples) and demonstrations

The following types of thematic sales were dealt with: Give aways Premiums with additional payment Premium collections and loyalty programs Competition


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There are various applications of sales promotions: consumer, retail trade and

sales promotions for sales staff.Consumer sales promotions may have the following objectives:

Attracting new customers Retaining existing customers Increasing spending per customer Stimulating product use Supporting thematic marketing communication Introducing a new brand

Trade sales promotions may have the following objectives: Obtaining the support of the trade for a consumer sales

promotion Expanding the number of sales outlets Increasing or diminishing stocks Improving trade relations

Sales promotions for sales staff may have the following objectives: Recruiting customers Increasing the value of orders Paying extra attention to certain brands

Realizing a more even seasonal spread Selling brands with a higher profit margin Improving the performance of shop assistants Obtaining more in-store displays


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Collaborations with retailers is always necessary if sales promotions are to be

carried out successfully, especially in the case of tailor-made sales promotions,

developed especially for a specific chain store. A sales promotion plan is never a

discrete plan. There is always a combination of sales promotions with othermarketing communication methods, especially advertising. Advertising serves to

provide thematic content for and increase awareness of the sales promotions.

Research shows that sales promotions cannot change a failing trend in market

share. On the contrary, the trend is merely reinforced by the sales promotions.

Chapter 18The unique aspect of Dm comm is that personal data of current and potential

customers are used. This makes it possible to adapt the comm entirely to the

target group and even to individual consumers. DM is particularly suitable for

specialist and shopping goods and financial services. Consumers may also

respond directly to an offer.The advantages of the direct relationships generated by dm are:

Cost savings by eliminating the retail trade (disintermediation) Independence from the retail trade Personalization of the message Serving customers who are widely distributed Less waste than with mass comm Accountability; the effects of DM van be analyzed accurately Discreet sale of taboo products

The media that may be used for DM are: Addressed direct mail ( with the name and address of

customers)


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Unaddressed direct mail (door to door delivery in particular

postcode areas) Catalogues Inbound (call centers) and outbound telephone

communication Print media, such as newspapers and magazines Direct response (home shopping) television programs Interactive media (email and websites)

A DM comm sequence may consist of the following steps: preparation,

proposition, follow up to non-response, after-sales, cross-selling, relationship

management and recruiting campaign. Relationship management may be donethrough a brand magazine, club or customers brand.

Good databases are indispensable. Besides socio-demographic data, customers

buying history may be stored in the database. Databases can also be used to carry

out financial tests to access the efficiency and effectiveness of a DM campaign.

Formerly, DM communication was used only to achieve short term turnover

increases. Nowadays, it is more often used to build long term relationships with

customers. This makes DM an instrument suitable for developing customer

relationships with a brand.

Chapter 19In store communication may determine whether or not consumers will buy a

product in the store. Much buying behavior is impulsive and many (brand)

decisions are not taken until customers are in the store. Attractive packaging, a

display or the sales promotion may then tip the balance.Various in store media may be used to attract special attention to a brand. Thedesign and layout of a store are important elements in its positioning. Store

design includes the layout of the store, the combination of product groups and

store furniture.Visual merchandizing is very important. This includes shelf position and displays.

Both have a function in terms of turnover and communication. Displays may


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draw extra attention to products. Displays and other material are often supplied

by producers, but they are by no means always placed in stores.Packaging is an important element in in-store communication and in the

positioning of a brand. It has the following functions for producers, retailers,

consumers and society: Protection of the product Facilitating transport, storage and handling Recognition of the brand and the product ( the product

uniform) Increasing the attractiveness of the product or brand Providing information about the product or brand Convenience and usage possibilities Environmental concern

Chapter 20Personal selling is the oldest and best form of mc. It is, however, also the most

expensive. For this reason, personal selling has to be replaced by andcomplemented with other instruments in many cases. Personal selling is ussualy

focused on action and selling, but it may also have thematic objectives such as

giving info to customers and influencing their attitudes.

Personal selling is usefull when it involves: A small number of customers ( and prospects) who make it

large orders A small market area

A product with a high purchase price A long-term obligation Adaption to individual needs


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The need for explanation, instruction or installation Price negotiation Counteracting strong ties with another supplier

Consequently, personal selling occurs more often in B2B markets than in

consumer markets.

The personal sales pitch is the most characteristic feauture of this form of

salesperson may follow to arrive at a transaction.There are various types of salesperson: representatives, account managers, sales

assistants in stores, service merchandisers, resellers and brokers.The organization and size of sales staff depend on the composition of the

clientele, the product range and the extent of the support by the internal salesstaff. Account management is a modern form of personal selling aimed at

maintaining relationships with big customers at a central level. Not all products can be sold in self-service stores. In specialist stores and in the

fresh food departments of supermarkets, service personnel are used. The services

of restaurants, GPs and financial institutions are also delivered through personal

contact with customers.

Chapter 21 BITCHESExhibitions emerged in the middle ages and have grown into a complex and

intensive instrument of mc. Participation in exhibitions and other events is

complex because other mc instruments and many media play a role. Objectives of

events may be thematic (information, provision and relation management) or

action and sales orientated.

There are various types of exhibitions: general and specialist consumer

exhibitions, horizontal and vertical trade fairs, trade marts, conference-linked


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exhibitions, branded events and local events, among which are fetes, black

markets and flea markets.

Compared with other mc instruments, exhibitions have a number of advantagesand some disadvantages.

The advantages mainly concern the personal contact that is possible with

customers and the opportunity for product demonstrations.

Disadvantages are the high costs per contact and the pressure on staff. A possible

disadvantage, too, is that ones own customers may be brought into contact with

competitors at the exhibition may result in delayed purchase of products.

With a plan for an exhibitions and evaluation research it can easily be checked

whether the objectives have been achieved and whether participation has been

cost effective.A stand at an event is often a multimedia affair. Products are demonstrated but

may also be viewed on DVD or the internet. Through personal contact, visitors are

able to evaluate products and take documentation home.

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