Marketing Communication Program

8/3/2019 Marketing Communication Program

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Marketing CommunicationMarketing Communication

ProgramProgram

Prof. Rushen ChahalProf. Rushen Chahal


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Purposes of Marketing CommunicationsPurposes of Marketing Communications

y not only informs, but is also used to differentiate

the sellers products/services

y may also be effective in affecting the price

elasticity of demand (nonprice competition)y the marketing communications strategy of a firm

must be coordinated and linked with concepts

such as target segments, positioning,

differentiation, and image

y requires a closely coordinated approach

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Marketing CommunicationsMarketing Communications

y Informs, persuades and reminds

y Is part of the marketing mix

y

Includes all the means by which a companycommunicates directly with potentialcustomers.

y Attempts to influence feelings, beliefs, or

behaviour.

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Marketing CommunicationMarketing Communication

MethodsMethods

y Personal selling:The direct presentation of a

product to a prospective customer by a

representative of the selling organization.

y Advertising:A paid, impersonal masscommunication with a clearly-identified sponsor.

y Sales promotion: Demand-stimulating activity

designed to supplement advertising and facilitate

personal selling.

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More MethodsMore Methods

y Public relations: A planned communication

effort by an organization to contribute to

generally favourable attitudes and opinions

toward an organization and its products.

y Publicity: A special form of public relations that

involves news stories about an organization or its

products.

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Integrated Marketing CommunicationsIntegrated Marketing Communications

y A strategic business process used to plan, develop,execute, evaluate coordinated communication within anorganizations publics, requiring:

Awareness of audiences media habits and preferences

Understanding of audiences knowledge and beliefsabout the product

Use of coordinated media blend linked to a specificobjective

Key is a single, coordinated message and image thrust

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Basic Communication ElementsBasic Communication Elements

y A message

y A source of the message

y A communication channel

y A receiver

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Communication process components:

Encoding

Decoding

Response

Feedback

Noise


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The Communications ProcessThe Communications Process

y communications requires a channel, with a senderand a receiver, to handle the message

y a message is first encoded by the sender

y the communications channel is then used to deliverthe message to the sender

y the sender decodes the message, based on his orher frame of reference and experience

y may be a need for a response and feedback

y the process can be interrupted by noise

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MESSAGE

CHANNEL

Select the media

or other vehicleto carry the message

MESSAGE

CHANNEL

Select the media

or other vehicleto carry the message

DECODINGTHE MESSAGE

Receiver compares

message to

frame of reference

DECODINGTHE MESSAGE

Receiver compares

message to

frame of reference

MESSAGE

AS RECEIVED

Knowledge, beliefs,

or feelings of

receiver changed

MESSAGE

AS RECEIVED

Knowledge, beliefs,

or feelings of

receiver changed

RESPONSE

Ranges from simple

awareness to

purchase

RESPONSE

Ranges from simple

awareness to

purchase

FEEDBACK

Impact measured

using research, sales,

or another measure

FEEDBACK

Impact measured

using research, sales,

or another measure

ENCODING THEMESSAGE

Create an ad,

display, or sales

presentation

ENCODING THEMESSAGE

Create an ad,

display, or sales

presentation

MESSAGE AS

INTENDED

A promotional idea in

marketers mind

MESSAGE AS

INTENDED

A promotional idea in

marketers mind

NOISECompeting ads,

other

distractions

The Process


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Inside the CommunicationsInside the Communications

ProcessProcess

y The act of encoding allows that messages cantake many forms.

y The methods of transmitting a message are

limited only by the imagination and creativity ofthe sender.

y How the message is decoded depends on itsform and the capability and interest of the

recipient.y Without measurable objectives, the

effectiveness of a message cannot be evaluated.

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Considerations in Designing MarketingConsiderations in Designing Marketing

Communications MixCommunications Mix

y Target market

Readiness to buy, knowledge, liking, preference,conviction (belief)

Purchase Geographic scope

Type consumer or middleman

Concentration

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More ConsiderationsMore Considerations

y Nature of the product

Unit value

Degree of customization

Presale and postsale servicey Stage of the product life cycle

y Amount of money available for promotion

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Push or Pull StrategyPush or Pull Strategy

y a push strategy directs communication efforts at

channel members; a pull strategy directs

promotion at the end consumer

y many products, such as business products, arepromoted with a push strategy, involving personal

selling and use of trade promotions

y most consumer products would rely more heavily

on a pull strategy where promotion is directed at

the consumer to stimulate demand

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Choosing a Push orChoosing a Push or

Pull StrategyPull Strategy

y Apush strategyis directing the

communication primarily at the

middlemen that are the next link

forward in the producers distribution

channel.

y Apull strategyhas the communication

directed at the end users primarilyconsumers.

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ProducerProducer Wholesaler Wholesaler Retailer Retailer Consumer Consumer

ProducerProducer Wholesaler Wholesaler Retailer Retailer Consumer Consumer

PUSH STRATEGY

PULL STRATEGY

Product flow Communication effort

An Illustration


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Determining theDetermining the

Communications BudgetCommunications Budget

y Percentage ofSales:

Based on past or projected sales, e.g. 2%.

$X per unit is variation for big-ticket items.

Simple, but implies its a result of sales.

y All Available Funds:

New business which needs to build sales andshare in early years can use this.

Can make sense if more marketingcommunications leads directly to more sales.

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More Budgeting MethodsMore Budgeting Methods

y Follow the Competition:

Match what your competitors spend.

Can use industry averages.

Benchmark against one key competitor.

But does it fit with your strategies?

y Task or Objective:

Best approach:What do you want to achieve?

Identify tasks/objectives, then cost them out.

Sometimes called buildup method.

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Marketing Communication Program

Documents

Transcript of Marketing Communication Program