SIXTH EDITION MARKETING COMMUNICATIONS - GBV · SIXTH EDITION MARKETING COMMUNICATIONS ......

SIXTH EDITION

MARKETINGCOMMUNICATIONS

Brands, experiences and participation

CHRIS FILL

PEARSON

Harlow, England * London • New York • Boston • San Francisco • Toronto • Sydney •

Tokyo • Seoul • Taipei • New Delhi • Cape Town * Sao Paulo • Mexico City * Madrid •

Contents

Guided tourForewordPrefaceAcknowledgementsPublisher's acknowledgements

XXIV

xxviixxix

xxxixxl

Part 1 Introduction to marketingconnmunications

1 Introducing marketing communications

Aims and learning objectivesMinicase: LV= a spectacular revivalIntroductionThe concept of marketing as an exchangeMarketing communications and the process of exchange

"The scope of marketing communicationsThe role of marketing communicationsThe tasks of marketing communicationsDefining marketing communicationsEnvironmental influences

Internal influencesMarket influencesExternal influences

The marketing communication mixAdvertisingSales promotionPersonal sellingPublic relationsDirect marketing

The key characteristics of the communication toolsMedia and the MCs mixKey differences between conventional and digital mediaMessages and the MCs mixCriteria when selecting the tools for the mix

ControlFinancial resourcesCredibilityDispersion - size and geographyCommunication tasks

34789101214172020212122242424242527272829313131323232

X i CONTENTS

Communication differences 32Message reception • 33Number of decision-makers 33The balance of the communications mix 33The constituent tools of the marketing communications mix 34Message content 34Message origin 35Length of purchase decision time ' 35Negative communications 35Target marketing and research 35Budget allocation 35Measurement and evaluation 35

Key points 36Review questions 37References 38

2 Communication: forms and conversations 40

Aims and learning objectives 40Minicase: 'Up your Viva' 41An introduction to the process of communication ' 43A linear model of communication 43

Source/encoding 44Signal 45Decoding/receiver 46Feedback/response 46Noise 47Realms of understanding 48

Factors that influence the communication process 48The influence of the media 48The influence of people 49

The influencer model of communication 49Interactional model of communication 51Word-of-mouth communication 53

Definition and motives 53Opinion leaders 56Opinion formers ' 57Opinion followers 58Developing brands with word-of-mouth communication /* 58

Relational approaches to communications 61Network approaches to communications 63Process of adoption 63-Process of diffusion 65

Key points ( 67Review questions 68References 68

3 Audiences: how they process information and behave 71

Aims and learning objectives 71Minicase: Recruiting teachers - nudging the journey 72Introduction 73

CONTENTS Xi ,

Information processing 73Perception - 74Marketing and perception 77

Learning , 79Cognitive learning 81Cognitive response 83Attitudes . 85

Decision-making 88Consumer purchase decision-making process 88Organisational decision-making process 89Perceived risk 93Involvement theory 95Two approaches to decision-making 95Impact on communications 97

Alternative approaches 98Hedonic consumption 99Tribal consumption 99Behavioural economics 101

Key points 103Review questions 105References • 105

4 How marketing communications might work 108

Aims and learning objectives 108Minicase: Rolex: a range of quality communications 109Introduction 111The strategic context 111Engagement and the role of marketing communications 111How does marketing communications work? 113

Interpretation 1 - Sequential models 114Interpretation 2 - Changing attitudes with marketing communications 116Using marketing communication to influence attitudes 118Interpretation 3 - Shaping relationships 121Influencing value exchanges 125Interpretation 4 - Developing significant value 130Interpretation 5 - Cognitive processing 132

Conclusion f 135Key points 135Review questions 136References - 137

Part 2 Managing marketing communications 139

Marketing communications: strategies and planning 141

Aims and learning objectives 141Minicase: Cravendale - milk matters 142Introduction 144Understanding strategy 144

Xii CONTENTS

Marketing communications strategy 147Strategy approach 1 - Positioning 147Strategy approach 2 - Audience 151Strategy approach 3 - Platform _ 155Strategy approach 4 - Configuration 158

Planning marketing communications 160The marketing communications planning framework • 161Elements of the plan 164

Context analysis 164Communication objectives 166Marketing communication strategy 167Coordinated communication mix 167Resources 168Scheduling and implementation 168Evaluation and control 168Feedback 168

Links and essential points 168

Key points 170Review questions 170References . 171

6 Marketing communications: objectives and positioning 173

Aims and learning objectives 173Minicase: Juan Valdez - the face of Colombian Coffee 174Introduction 176The role of objectives in corporate strategy 176 >The role of brand communication objectives and plans 178

The sales school ' 179The communications school 180

Derivation of campaign objectives 184Setting realistic marketing communication objectives 185The practitioners' view 186

Business objectives 186Behavioural objectives 187Intermediate objectives 187

SMART objectives 189Positioning ' 189The development of the positioning concept 191The positioning concept 192Managing positions 194-

Perceptual mapping 194Positioning strategies 196

Product features ' 196Price/quality 196Use 197Product class dissociation 197User 197Competitor 197Benefit 198Heritage or cultural symbol 198

Repositioning 199

CONTENTS '' Xiii '•


7 The communication industry: structure, operations and issues 203

Aims and learning objectives 203Minicase: Diageo - reaching underage drinkers 204Introduction 206Dimensions of the UK marketing communications industry 208Structure and development of the marketing communications industry 209

Agency types and structures 209Industry structure 213A short history of one-stop shopping 213Selecting an agency 215Agency operations 218Relationships 220

Client/agency relationships 220Agency remuneration 222Agency structures and IMC 224


8 Financial resources for marketing communications 232

Aims and learning objectives 232Minicase: Honda 233Introduction 235Trends in communication expenditure 237The role of the communication budget 239

Benefits of budgeting 239Difficulties associated with budgeting for communications 240Techniques and approaches 240

Marginal analysis: the advertising response function 240Practical approaches 242Quantitative approaches 245

Competitive parity 246Advertising-to-sales ratio 246Share of voice * 247

Strategic implications of-the SOV concept 248Appropriation brand types 251The value of brand communications - 251Which methods are most used? 253Budgeting for the other elements of the communication mix 255


9 Evaluation and metrics 260

Aims and learning objectives 260Minicase: Still killing Jill? 261Introduction 263

Xiv CONTENTS

The role of evaluation in planned communications 264Advertising 265Pre-testing 265Pre-testing unfinished advertisements 266Focus groups 266Consumer juries 267

Pre-testing finished advertisements 267Dummy vehicles 267Readability tests 267Projective techniques 268Theatre tests 269

Physiological measures 270Post-testing 272

Inquiry tests 272Recall tests 272Recognition tests 275Sales tests 276

Other tests 277Tracking studies 277Financial analysis 278

Likeability 278Public relations 279

Corporate image 280Recruitment 281Crisis management 281Other PR measuring techniques 282

Measuring the fulfilment of brand promises 282Online communications 283Social media / 285


10 Integrated marketing communications 290

Aims and learning objectives 290Minicase: Authentic Caribbean rum 291Introduction , 294The development of IMC ' 294Reasons for the developing interest in IMC 295What is to be integrated? 299

Communication tools 299~Messages 300Marketing mix 300Branding ' 300Strategy 301Employees . 301Technology 301Agencies 302

Definitions of IMC 304Interpretations of IMC 305

Interpretation 1: Harmonisation-based IMC 306Interpretation 2: Planning-based IMC 306

CONTENTS • XV ;

Interpretation 3: Perspective-based IMC 309Interpretation 4: Portfolio-based IMC 313Interpretation 5: Relational-based IMC 315

Structuring for IMC . 317


Part 3 Branding 321

11 Brand communications 323

Aims and learning objectives 323Minicase: The Domino Effect - honesty's the best policy 324Introduction 326Brand characteristics 328Benefits of branding 330Brand portfolios: architecture and forms 331Brand architecture 332

Brand forms 334The strategic role of branding 335

Integration 336Differentiation 337Added value 337

The task of marketing communications in branding 338Associations and personalities 338Brand building ' 341

Above-the-line 341Through-the-line 343Below-the-line 343Around-the-line 344,

Business-to-business branding 346Online branding 347Virtual brand communities 348Brand equity 349

Key points ' 350Review questions . 352References 352

12 Corporate branding and communication 355

Aims and learning objectives 355Minicase: The BBC's 'Sachsgate' 356Introduction 358Corporate identity or corporate branding? 359The building blocks of corporate reputation • 361Corporate personality 361Corporate identity 364Corporate image 364

Dimensions of corporate image 365

XVi CONTENTS

Corporate reputation 366Mind the gaps ' 367Corporate communication 369Corporate communication mix 371

Symbolic communication 371Management communications 374Marketing communications 375Organisational communications. 375Behavioural communications 376

A framework for managing corporate brands 376


13 Employee branding 383

Aims and learning objectives 383Minicase: Torbay Council 384Introduction 385Member/non-member boundaries 386Internal communication ' 387Organisational identity 392Organisational culture 394

Levels of organisational culture 394Culture and communication 394

Brand engagement 397Intellectual and emotional aspects 397

Advertising and the impact on employees 398Strategic credibility . 400

Strategic capability 400Past performance 401Corporate communications 401The credibility of the CEO 401

Internal communications: auditing and planning 403Procedures associated with a communications audit 405Functional capability 406Financial capability 406Manufacturing capability 406Marketing capability f 406

Key points . 407Review questions 408References "408

Part 4 The marketing communication mix 411

14 Advertising: role, forms and strategy 413

Aims and learning objectives 413Minicase: Apple - Think different' 414Introduction 416The role of advertising 416Defining advertising 418

CONTENTS XVH

Selling propositions 419The use of emotion in advertising 420Types of advertising 421Advertising models and concepts 423

The elaboration likelihood model 423Eclectic models of advertising 426The strong and the weak theories of advertising 428

Using advertising strategically 431The FCB matrix 431The Rossiter-Percy grid 431

Consumer-generated advertising 435


15 Public relations 441

Aims and learning objectives 441Minicase: BP - crisis response 442Introduction 443Characteristics of public relations . 444

Media catching 447Which publics? - 448A framework of public relations 448

The press agency/publicity model 449The public information model 449The two-way asymmetric model 449The two-way symmetric model 450

Public relations and relationship management 451Objectives and public relations 452Cause-related marketing 452Public relations: methods and techniques 453Media relations 456

Press releases 456Press conferences 456Interviews 456Publicity and events 456

Lobbying 458Corporate advertising (, 459

Reasons for the use of corporate advertising ' 460Investor relations 462Defensive or crisis communications 464

Crisis phases 466Framing for crisis communication 468

Integrating public relations in the communications mix 471


16 Sponsorship 475

Aims and learning objectives 475Minicase: The London Olympics 476Introduction . 478

xviii : CONTENTS

The growth and development of sponsorship 480Sponsorship objectives 482How sponsorship might work 484Theoretical aspects of sponsorship 485Types of sponsorship 486

Sports sponsorship 487Programme sponsorship 487Arts sponsorship 488Other forms of sponsorship 490

The role of sponsorship in the communication mix 493


17 Direct marketing and personal selling 499

Aims and learning objectives 499Minicase: Office for National Statistics - The 2011 Census 500Introduction 504The role of direct marketing 504Types of direct brand 505

Type 1: complemetary tool 505Type 2: primary differentiator 506Type 3: sales channel 506Type 4: brand vehicle 506

The growth of direct marketing 507Growth driver 1: technology 507Growth driver 2: changing market context 507Growth driver 3: changing organisational expectations 508

The role of the database 508Permission marketing 509Direct response media 510

Direct mail 510Telemarketing 512Carelines 513Inserts 514Print 514Door-to-door 515Radio and television f 516The Internet and digital media -. 516

Personal selling 516The tasks of personal selling 517The role of personal selling 518Strengths and weaknesses of personal selling 520

Strengths • 520Weaknesses 520

When personal selling should be a major part of the communications mix 521Complexity 521Buyer significance 521Communication effectiveness 522Channel network factors 522

Integration and supporting the sales force , 522Strategic account management 523

CONTENTS Xix

Key account management 523Key account managers 526Key account relationship cycles 527Some final aspects of KAM 529

Global account management 529


18 Sales promotion, field marketing and brand experiences 534

Aims and learning objectives 534Minicase: Orange at the Glastonbury Festival 535Introduction 537Understanding the value of sales promotions 538The role of sales promotion 541

Short termism 541Managerial accountability 541Brand performance 541Brand expansion 541Competition for shelf space " 542

Sales promotion plans: the objectives 542An overview of how sales promotions work 543Retention programmes 547Sales promotions: methods and techniques 550Other sales promotion devices 554Field marketing 555Range of FM activities 556Brand experience and events 559


19 Brand placement, exhibitions, packaging and licensing 566

Aims and learning objectives 566Minicase: Beyonce - how brand licensing influences popular music acts 567Introduction 570Brand placement / 570

Characteristics of brand placement 571Placement issues 575

Trade shows and exhibitions 576Reasons to use exhibitions 576Characteristics of exhibitions and trade fairs 578

Strengths • ' 578Weaknesses 579

Exhibitions as a form of marketing communications 580Digital media and trade shows 580Marketing management of exhibitions 581Hospitality and events 581

Product events 581Corporate events 582Community events 582

XX ' CONTENTS

Packaging 583The communication dimensions of packaging 583Licensing , 586


20 Traditional media 594

Aims and learning objectives 594Minicase: Smoke-free South West - 'Wise-up to Roll-ups' 595Introduction 597Media classification by form 597Media classification by source 597Evaluative criteria . 599

Costs 599Communication richness 600Interactive properties 600Audience profile 600

Print media 601Newspapers 602Magazines 603

Broadcast media 605Television 606Radio 607

Outdoor media 608Billboards and street furniture 609Transit 610

In-store media . 612Point-of-purchase (POP) ' 612Retail media centres 613

Cinema 614Ambient media 616

Guerilla tactics 616Direct response media 616

Key points . 617Review questions 618References ? 618

21 Digital media 620

Aims and learning objectives 620-Minicase: Hiscox 621Introduction 622Key forms of digital media- 623

The Internet 623Database technologies 624Multimedia 625Mobile technologies 626Business applications 628Interactive television 629Video conferencing 630Kiosks 631

CONTENTS XXI

What digital media enable users to do 631Interactivity 631Multichannel marketing 633Personalisation 634Mobility 636Speed 637Efficiency 637Enhanced relationships 637

Websites 638Strengths ' 638Weaknesses 639Website design 640Websites - visitor behaviour 644

Key differences between traditional and digital media 646Convergence in marketing communications 647


22 Social, search and interactivity 652

Aims and learning objectives 652Minicase: Inspired by Iceland 653Introduction 655Social media 655Social networks 658Viral marketing 660Web logs 661Microblogging 662Podcasting 664RSS 664Interactive online communities 665Search engine marketing 667Search engine optimisation > 668Pay-per-click searches 669Email marketing 670Short message services (SMS) 671Apps 671Widgets I 673Affiliate marketing 673Augmented reality 674


23 Multichannel campaigns: media and tools 679

Aims and learning objectives , 679Minicase: The Salvation Army 680Introduction 683Interactivity 683Multichannel marketing . 684

Categorising customers 685

xxii : CONTENTS

Online advertising 687Banner ads " 687Pop-ups 689Microsites 690Rich media ads 692Online video . 692Online gaming ' 693

Online sales promotions 694Online public relations 696Online personal selling 698Online direct marketing 700Multichannel campaigns 701


24 Media planning: delivering the message 709

Aims and learning objectives 709Minicase: Which? 710Introduction 713Media planning and the media mix . 713Media switching behaviour 715

Influential factors for media selection " 716Switching behaviour 717

Vehicle selection 718Media planning concepts 719

Reach and coverage 719Frequency . 719Gross rating point 720Effective frequency 722Recency planning 723

Media usage and attitudes 724Efficiency 726

Planning, placing and measuring ads online 728Media source effects • 730

Vehicle atmosphere 730Technical and reproduction characteristics of a vehicle 731Audience/product characteristics f 733Scheduling 733


j

25 Creativity 739

Aims and learning objectives ' 739Minicase: Johnnie Walker - 'Keep Walking' 740Introduction 742What is creativity? 742Creativity and attention 743The importance of context : 745Creativity as a signal 747

CONTENTS XXiii '

The creative process 747The creative code 748Message framing 750Storytelling 752User-generated content (UGC) 755Sourcing content 757


26 Messages and appeals 763

Aims and learning objectives 763Minicase: Lynx Jet - fantasy appeals 764Introduction 766Message source 766Establishing credibility 767

Credibility established by the initiator 767Credibility established by a spokesperson 769Sleeper effects 770

Structural elements in a message " 771Message balance 771Conclusion drawing 772One- and two-sided messages 772Order of presentation 772

Message appeal 773Information-based appeals 773Emotions- and feelings-based appeals 775

Copycat messaging 781Advertising tactics 781

Informational motives 781Transformational motives 782


Author index 790Subject index f 801

/ •

Companion WebsiteFor open-access student resources specifically writtento complement this textbook and support your learning,please visit www.pearsoned.co.uk/fill

Lecturer ResourcesFor password-protected online resources tailored to supportthe use of this textbook in teaching, please visitwww.pearsoned.co.uk/fill

SIXTH EDITION MARKETING COMMUNICATIONS - GBV · SIXTH EDITION MARKETING COMMUNICATIONS ......

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