Communication Strategies for the Asia Pacific Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore.

Communication Communication Strategies for the Asia Strategies for the Asia

PacificPacificAsia-Pacific Marketing Asia-Pacific Marketing

FederationFederation

Certified Professional Certified Professional MarketerMarketerCopyrightCopyright

Marketing Institute of SingaporeMarketing Institute of Singapore

OutlineOutline

Developing an effective Marcom Developing an effective Marcom programprogram

Targeting the audienceTargeting the audienceDesigning the message Designing the message Push and pull strategiesPush and pull strategiesMajor advertising decisionsMajor advertising decisionsMeasuring communication Measuring communication

effectivenesseffectiveness

IntroductionIntroduction

AAfter you have selected the fter you have selected the product positioning, you need to product positioning, you need to communicate it in order to communicate it in order to secure a place in the minds of secure a place in the minds of the consumers. This is when you the consumers. This is when you need to decide on the need to decide on the communication strategiescommunication strategies

Steps in developing an Steps in developing an Effective Marcom ProgramEffective Marcom Program

Define the product and the target Define the product and the target market segmentmarket segment

Decide on the communication Decide on the communication objectivesobjectives

Decide on the promotion mixDecide on the promotion mix Decide on the strategy for each Decide on the strategy for each

component of the promotion mix component of the promotion mix Decide on the promotion budgetDecide on the promotion budget

What information is needed for What information is needed for purchase decisions?purchase decisions?

Consumer-adoption process modelConsumer-adoption process model

Awareness=>Awareness=>

Interest=>Interest=>

Evaluation=>Evaluation=>

Trial=>Trial=>

AdoptionAdoption

Marcom ObjectivesMarcom Objectives

Move the target audience to higher Move the target audience to higher state of readiness to buy e.g. using state of readiness to buy e.g. using Response Hierarchy Models Response Hierarchy Models

Ultimate objective is to get customers Ultimate objective is to get customers to buy and to provide post-purchase to buy and to provide post-purchase satisfactionsatisfaction

Increase sales to new users, former Increase sales to new users, former users, users of other brands, switchers users, users of other brands, switchers and current usersand current users

Increase repeat purchase Increase repeat purchase

Promotion MixPromotion Mix

Advertising; Sales promotion; Personal Advertising; Sales promotion; Personal selling; Public relations; Personal selling; Public relations; Personal selling; Direct Marketingselling; Direct Marketing

The promotion mix is dependent on:The promotion mix is dependent on:The information needs of potential buyerThe information needs of potential buyerThe nature of the product and the marketThe nature of the product and the marketThe resources availableThe resources available

Targeting the AudienceTargeting the Audience

Target audienceTarget audience = current and = current and potential buyers of our productspotential buyers of our products

Measure the product image by Measure the product image by Familiarity surveys (awareness) Familiarity surveys (awareness) Favorability scaleFavorability scale (disposition)(disposition)

e.g. Coke and Pepsi used the Indian e.g. Coke and Pepsi used the Indian winner of Ms Universe and Ms winner of Ms Universe and Ms World respectively in their World respectively in their advertisement in India to win advertisement in India to win consumer preferenceconsumer preference

Designing the MessageDesigning the Message

Message contentMessage content Say Say whatwhat to to whomwhom, and for , and for whatwhat

responseresponse Demonstrate clearly the Demonstrate clearly the Unique Unique

Selling PropositionSelling Proposition (USP) How?

With rational appeals (claimed benefits) Emotional appeals (fear, guilt, shame,

humor, love, pride etc) and Moral appeals (supporting social causes)

Designing the Message (cont’d)Designing the Message (cont’d)

2.2.Message StructureMessage Structure Use one-sided argument if Use one-sided argument if

audience is predisposed to your audience is predisposed to your position or position or

Use two-sided arguments if they Use two-sided arguments if they are notare not

Present the strongest argument Present the strongest argument first or lastfirst or last

Designing the Message (cont’d)Designing the Message (cont’d)

3.3.Message FormatMessage Format Choose headline, copy, illustration, Choose headline, copy, illustration,

and color suitable for the local and color suitable for the local audience e.g.audience e.g. In China, red represents prosperityIn China, red represents prosperity In ASPAC countries, any graphics In ASPAC countries, any graphics

that resemble the religious that resemble the religious symbols must not be usedsymbols must not be used

Refrain from “Sexy” advertisingRefrain from “Sexy” advertising

Selecting the Communication Selecting the Communication ChannelChannel

Personal communication channels Personal communication channels Either directly or indirectly e.g.Either directly or indirectly e.g.

Opinion leaders: if the top echelon Opinion leaders: if the top echelon of government drives a certain of government drives a certain make and model of car, it says a lot make and model of car, it says a lot about that particular modelabout that particular model

Selecting the Communication Selecting the Communication Channel (cont’d)Channel (cont’d)

Non-personal communication channelsNon-personal communication channelsPrint media; electronic media; display mediaPrint media; electronic media; display mediaThe servicescape—the environment in which The servicescape—the environment in which

the product is sold or the service is being the product is sold or the service is being delivered—conveys a powerful messagedelivered—conveys a powerful message

Events such as news conferences, grand Events such as news conferences, grand openings, and sport or race sponsorship is openings, and sport or race sponsorship is popular in ASPAC in recent years e.g. popular in ASPAC in recent years e.g. Emirates Airlines sponsored the Derby (Horse Emirates Airlines sponsored the Derby (Horse Racing) in Singapore regularlyRacing) in Singapore regularly

Promotion BudgetingPromotion Budgeting

The budget to be allocated The budget to be allocated depends on:depends on:

The geographic dispersionThe geographic dispersion The stage of the PLCThe stage of the PLC The communication activities, The communication activities,

andand The marginal costs of The marginal costs of

communication effectivenesscommunication effectiveness

Promotion-Expenditure Promotion-Expenditure StrategyStrategy

Percentage-of-sales approachPercentage-of-sales approachAffordable approachAffordable approachReturn-on-investment approachReturn-on-investment approachCompetitive-parity approachCompetitive-parity approachObjective-and-task approachObjective-and-task approach

Push StrategyPush Strategy

Push through a distribution channel in a Push through a distribution channel in a sequential mannersequential mannerEmphasis is on personal selling to Emphasis is on personal selling to

wholesalers and retailers with trade wholesalers and retailers with trade promotionpromotion

When is it especially appropriate?When is it especially appropriate?When the product is an impulse itemWhen the product is an impulse itemWhen there is low brand loyalty in a product When there is low brand loyalty in a product

categorycategoryWhen brand choice is made in the store, andWhen brand choice is made in the store, andWhen the product benefit is well understoodWhen the product benefit is well understood

Pull StrategyPull Strategy

Creates initial interest in potential Creates initial interest in potential buyers buyers

How?How? By heavy end-user advertisingBy heavy end-user advertisinge.g. free samples; couponse.g. free samples; coupons

When is it appropriate? When is it appropriate? When primary demand is favorable When primary demand is favorable When the product has hidden benefitsWhen the product has hidden benefitsWhen the product can be differentiatedWhen the product can be differentiatedWhen there are strong emotional buying When there are strong emotional buying

motives such as health, beauty and safetymotives such as health, beauty and safety

Major Advertising DecisionsMajor Advertising Decisions

Advertising objective decisions e.g. Advertising objective decisions e.g. create salient attributecreate salient attribute

Budget decisionsBudget decisionsMessage decisionsMessage decisionsMedia decisionsMedia decisionsAdvertising evaluationAdvertising evaluation

The Advertising Objective The Advertising Objective FunnelFunnel

ExposureExposureAwarenessAwareness

Attitude changeAttitude changeSalesSalesProfitProfit

The Advertising ObjectivesThe Advertising Objectives

As we move down the funnel, the As we move down the funnel, the objective becomesobjective becomes

More relevant to decision making, More relevant to decision making, butbut

More difficult to measureMore difficult to measureThe issue is whether the objectives The issue is whether the objectives

at each level are linked to the at each level are linked to the purchase decisionpurchase decision

Measuring Advertising Measuring Advertising EffectivenessEffectiveness

To develop more effective To develop more effective advertisements and to determine advertisements and to determine the optimal level of expendituresthe optimal level of expenditures

Commonly used measurements:Commonly used measurements:Number of inquiries received, Number of inquiries received,

increase product knowledge, and increase product knowledge, and attitude change towards the attitude change towards the product. Sales are the best criteriaproduct. Sales are the best criteria

Measuring Advertising Measuring Advertising EffectivenessEffectiveness

TrackingTrackingQualitative research in the form of Qualitative research in the form of

before-and-after brand image maps before-and-after brand image maps e.g. “Of all the advertising you’ve e.g. “Of all the advertising you’ve seen, what, if anything, do you seen, what, if anything, do you particularly remember from it?”particularly remember from it?”

Carrying out experiments with Carrying out experiments with test marketstest markets

Advertising Wear-outAdvertising Wear-out

Over time, a decline in Over time, a decline in advertising effectiveness occurs advertising effectiveness occurs due to due to repetition and repetition and wearoutwearout

How to reduce wearout?How to reduce wearout?Change the advertisement structureChange the advertisement structureChange the advertisement copy andChange the advertisement copy andChange the media regularlyChange the media regularly

Sales Promotion StrategySales Promotion Strategy

Promotion to consumer targetsPromotion to consumer targets Promotion to industrial targetsPromotion to industrial targets Promotion to middle menPromotion to middle men Promotion to sales forcePromotion to sales force

Evaluation and ControlEvaluation and Control

Continuously monitor the Continuously monitor the execution of the communication execution of the communication plan or strategy to ensure plan or strategy to ensure objectives are met objectives are met

Evaluate the outcome against the Evaluate the outcome against the planned budget and adjust as planned budget and adjust as necessarynecessary