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Overview of Marketing Communications Process and Tools

TMT, MKT 337: Promotional Management

Lecture ObjectivesIntroduce the moduleExamine process of marketing communications Consider role of marketing communications in

strategic mixDiscuss range of tools available

Some Basic DefinitionsMarketing: Management process which

anticipates, identifies and satisfies customer requirements profitably or effectively >marketing mix

Marketing Communications: Use of communications towards consumers, customers and prospects with the explicit purpose of influencing these groups

Corporate Communications: The management of communications between an organisation and all its stakeholders/publics > sphere of PR

Marketing Communications:Key DimensionsManagement process via which an

organisation engages with its various audiences

Audiences are encouraged to offer (desired) behavioural and attitudinal responses

Understanding of each audience is required to tailor the marketing communications in terms of message and tool

Increasingly an integrated approach is adopted

Role of Marketing CommunicationsDRIP FRAMEWORK

DifferentiateReinforce/RemindInformPersuade

Bowersox and Marsh 1989

Differentiation

Remind

Inform

Persuade

Marketing Communication and the process of ExchangeCombining 4PsMore than 4Ps? Process, Political Power and People

2 different use of marketing Communications:Building Brand ValuesShape Behavior – Call to action

The marketing communications mix

A traditional model of the marketing communication mix

The internet and digital technologies have enabled new interactive forms of communication, where the receiver has greater responsibility for their part in the communication process

Figure 1.1 The tools and position of the marketing communications mix Fill 2009

Figure 1.2 Above-and below-the-line communications Fill 2009

New Tools, New Media

Broadcast advertising (TV/radio)

Point of purchase

Website/on-line advertising

Interactive/internet marketing

Mobile/Wap

Direct marketing

Sales promotion

Events & sponsorship

Product placement

Publicity/PR

Telemarketing

Word of mouth

Personal selling

Packaging

Outdoor/billboards

Print advertising (newspaper/magazine)

Product Placement

Ambient Advertising

Selection CriteriaDegree of control required over deliveryFinancial resources available (cost)Level of credibilityAbility to deliver message (communications)Size and geographic dispersion of target

audiences

Key Characteristics of ToolsADVERTISINGNon-personal mass communicationHigh reachImpactHigh costLow credibility?Difficult to measure

Key Characteristics of ToolsSALES PROMOTIONUsed tactically in short termAim is often to increase salesHigh control and measurementModerate costCan be used throughout distribution channelCredibility may be questioned

Key Characteristics of ToolsPERSONAL SELLINGInterpersonal communications tool (two way)Instantaneous feedback possible Message can be tailoredHigh costMore suitable where message is complex

Key Characteristics of ToolsDIRECT MARKETINGAny form of direct response communicationsTargets individual customers (database)Can deliver personalised messageBuilds relationshipsFacilitated by technological developmentsModerate absolute cost but cost per contact high

Key Characteristics of ToolsPUBLIC RELATIONSNon-personal Wide range of tools availableHigh credibilityLow cost

Figure 1.3 The relative effectiveness of the tools of the marketing communications mix Fill page 25

Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools of marketing communications Fill

Major communication toolsTool Use Examples

Advertising Efficiently gets message to large audience

Television and radio commercials and new paper ads; paid search engine links; product and company brochures; billboards; transit ads; ads delivered by cell phone and emails

Sales promotion Stimulate immediate purchase; reward repeat purchase

Samples, coupons, premiums, contests, games, incentives

Public relations Build positive image, strengthen ties with stakeholders

Event sponsorship, news release, briefings, speeches and blogs, public appearance

Direct marketing Reach target audience, encourage direct response

Mail, email, telemarketing campaigns, printed and online catalog, direct response tv and radio

Personal selling Reach customers one to one to make sales, strengthen relationships

Sales appointment, sales meetings and presentation, online sales chat help

Figure 2.1 A linear model of communicationSource: Based on Schramm (1955) and Shannon and Weaver (1962).

Features of The Communications ProcessSender: company, organisation, brand, CEO,

AgencyReceiver: consumer, customer, public, government,

intermediary, supplierEncoding: Use of signals (words, symbols, pictures,

music) to create a message that can be understoodDecoding: Understanding the message as it was

intendedNoise: Cognitive barriers or physical distractionsRealms of understanding: Common ground

between source and receiver

Influences on Marketing Communications Process

Increasing volume of messages/Message ClutterLiterate consumersIncreasing CompetitionDecline in effectiveness of AdvertisementLevel of product/brand involvementOpinion leadersConsumer to consumer communications (word of

mouth)

Hierarchy of EffectsModels (often linear) which describe the step by

step process we go through when exposed to marketing communications from initial unawareness to final action.

There are many theories put forward to explain how marketing communications affects consumer behaviour

AIDA

Attention Interest Desire Action