Lecture 6

Marketing Communication
Dr. Lucy Ting Lucy.Ting@manchester.ac.uk

Agenda
Marketing Communications
Consumer Perspective

Integrated Marketing Communications

Definitions Characteristics Levels of Integration

Drivers and Barriers Communication Mix Tools

Mass Market Appeal Personal Appeal Buzz Appeal

Marketing Mix
Product
e.g. Brand Design Features

Promotion
e.g. Advertising Personal Selling Public Relations

Target Customers
Intended Positioning Place
e.g. Channels Locations Assortment

Price
e.g. List Price Payment Period Credit Terms

McCarthy, E.J. (1960), Basic Marketing, Homewood, IL, Irwin

Marketing Communications (MarCom)

Advertising Sales promotions Sponsorship Public relations Point-of-purchase communications Exhibitions and trade fairs Direct marketing communications Personal selling E-communications

Customer Perspective
Consumers may be more sensitive to commonalities and discrepancies among message than to the specific MarComs used to transmit them Added value is created in terms of a faster and better comprehension of the communication and integration occurs at the consumer or perceiver level.
Englis and Solomon (1996), Using Consumption Constellations to Develop Integrated Communiication Strategies, Journal of Business Research, 37, 183-191

Marketing Communication
Factors influence Marketing Communications
1. Changing Consumers
The availability of information and increased resistance in mass-market broadcasting

2. Changing Marketing Strategies

Fragmented market and more personalised marketing strategies

3. Changes in Technology
e.g. Internet, Mobile, Ipod, Satellite & Cable
Armstrong and Kotler (2009) Chpt 12

IMC: Mix and Match

Integrated Marketing Communication
A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organisation are relevant to that person and consistent over time
American Marketing Association

IMC: Mix and Match

Basic Concepts
1. The whole is greater than the sum.

2. Affects brand awareness, by which it creates, maintains, or strengthens favourable and unique brand associations. 3. Aims to build strong customer relationships

Communication Mix Tools

Advertising

Internet Marketing
Consistent, Clear and Compelling Message

Sales Promotion

Exhibitions, Trade Shows

Public Relation

Personal Selling

Direct Marketing

Creating Synergies
Sales team has easier job when brand is well-known through advertising or sponsorship. A promotional campaign that is supported by advertising is more successful. Public relations, sponsorship and advertising can have synergetic effects on company and brand image. Websites have to be supported by off-line campaigns.

Marketing Mix and IMC

Hutton, J.H. (1996), Integrated Marketing Communication and the Evolution of Marketing Thought, Journal of Business Research, 37, 15562

Integrated Marketing Communications

Definitions
Integrated Marketing Communication (IMC)
IMC is a concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combine these disciplines to provide clarity, consistency, and maximum communications impact
American Association of Advertising Agencies; Reported in Schultz (1993) Integrated Marketing Communications: Maybe Definition is in the Point of View, Marketing News, 18 January

Definitions
IMC is the strategic choice of elements of marketing communications which will effectively and economically influence transactions between an organisation and its existing and potential customers, clients and consumers.

Betts et al. (1995), Marketing Communications Strategy, 2nd Edition BPP Publishing

Definitions
IMC is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent and compelling message about the organisation and its products

Kotler et al. (1999), Principles of Marketing 2nd European Edition, Prentice Hall

Definitions
IMC is an organisations unified, coordinated effort to promote a brand concept through the use of multiple communications tools that speak with a single voice.

Shimp (2000), Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications, 5th Edition, Dryden Press

Definitions
IMC is a process of managing the customer relationships that drive brand value. More specifically, it is a cross-functional process for creating and nourishing profitable relationships with customers and stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them
Duncan (2002), IMC: Using Advertising and Promotion to Build Brands, International Edition, The McGraw-Hill Companies

Definitions
Integrated Marketing Communication (IMC)
A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time
American Marketing Association

Characteristics
Five Essential Elements of IMC
1. The aim to affect behaviour through direct communication 2. The IMC process should start from customer or prospects and then work backwards to brand communicators 3. IMC should use all forms of communication and all sources of brand or company contacts as prospective message delivery channels 4. The need for synergy, with coordination helping to achieve a strong brand image 5. The need to build and strength brand relationships
Shimp (2000), Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications, 5th Edition, Dryden Press

Levels of Integration
Relationship Management Integration
Stakeholder-based Integration Consumer-Based Integration Coordinated Integration

Functional Integration
Image Integration Awareness
Duncan and Caywood (1996), The Concept, Process and Evolution of Integrated Marketing Communication, in Thorson and Moore (eds) Integrated Communication: Synergy of Pervasive Voices, Lawrence Erlbaum Associates, pp. 13-34

Levels of Integration
Financial and Strategic Integration

Application of Information Technology

Redefining the Scope

Tactical Coordination
Schultz and Kitchen (2000), Communicating Globally: An Integrated Marketing Approach, Palgrave-Macmillan

Key Drivers of Integration

De Pelsmaker and den Bergh (2007)

Barriers of Integration

De Pelsmaker and den Bergh (2007)

Communication Tools

Communication Mix Strategies

Two basic strategies
Push Strategy
Pushing the product through marketing channels to final consumers Personal selling and trade promotion are relatively emphasised
Marketing Activities Marketing Activities

Producer

Retailers and Wholesalers

Customers

Communication Mix Strategies

Two basic strategies
Pull Strategy
Producer direct its marketing activities directly to consumers to induce their demand for the product Advertising and promotion are relatively emphasised
Marketing Activities

Producer

Retailers and Wholesalers

Customers

Communication Tools
Mass Appeal
Tools which aim to reach many prospective customers at the same time 1. Advertising 2. Sales Promotion 3. Public Relations
Solomon et al. (2008)

Communication Tools
1. Advertising
It can offers reasons to buy and reach masses of geographically dispersed buyers with repeated exposures.
Pros Marketers have control over what the message will say, when it will appear and who is likely to see it Cons Often expensive to produce and distribute May have low credibility and/or be ignored by audience

Communication Tool
Advertising Objectives
Informative Advertising
To communicate customer value and is used heavily when introducing a new product

Persuasive Advertising
To build brand value and sometimes compare with competing brands

Reminder Advertising
Maintain customer relationships and keep customers thinking about the product

Communication Tool
Advertising Media Medium Advantages
Mass Coverage Impact of sight, sound and motion Low cost per exposure Attention getting

Limitations
Short message life High absolute cost Clutter Fragmentation

TV

Radio

Low Cost Local Coverage Flexible High Frequency

Audio only Clutter Low attention getting Fleeting Messages

Communication Tool
Advertising Media Medium Magazine Advantages
Well segmented audience Detailed information Engaging High coverage Low cost Timely Short lead time

Limitations
Visual only Lack flexibility Long lead time

Newspaper

Short life Clutter Visual only Poor quality

Communication Tool
Advertising Media

Medium

Advantages

Limitations

Outdoor

Flexibility Little audience selectivity High repeat exposure Creative Limitations Low Cost Low message competition Good positional selectivity

Communication Tools
2. Sales Promotion
It consists of short-term incentives to encourage purchase or sales of a product or service
Pros
Provides incentives to retailers Builds excitement Encourage immediate purchase and trial of product Suits price-sensitive consumers

Cons
Short-term emphasis on immediate sales Large number of competing promotions

Communication Tool
Sales Promotion Objectives
Consumer Promotion
Short-term customer buying Temporary brand switching Reinforce positioning strategy Build long-term customer relationship

Trade Promotion
More sales force support for products Getting salespeople to sign up new accounts

Communication Tools
3. Public Relations
To build good relations with the companys various publics by obtaining favourable publicity, building up a good corporate image, and handling unfavourable rumours.
Pros Cons

Relatively low cost High credibility

Lack of control over the message and no guarantee that the message will ever reach the target Hart to track the results

Communication Tools
Personal Appeal
Tools which aim to communicate with consumers on a personal, one-to-one level. 1. Personal Selling 2. Direct Marketing

Solomon et al. (2008)

Communication Tools
1. Personal Selling
Personal presentation by the firms sales force for the purpose of making sales and building customer relationships
Pros
Direct contact with the customer gives the salesperson the opportunity to be flexible and modify the sales message to coincide with the customers needs The salesperson can get immediate feedback from the customer

Cons
High cost per contact with customer Difficult to ensure consistency of message when delivered by different salespersons The credibility of sales people often depends on the quality of the companys image

Communication Tools
2. Direct Marketing
Direct connections with carefully targeted individual consumers to both obtain and immediate response and cultivate lasting customer relationships
Pros
Can target specific groups with different offers Results can be easily measured Can provide extensive product information and multiple offers within a single appeal Provides a means for collecting information

Cons
Consumers may have a negative opinion of some types of direct marketing Costs more per contact than mass appeals

Communication Tools
Buzz Appeal
The new out-of-box tools which aim to communicate especially with the young consumers who tend to be cynical about corporations. 1. Direct Marketing (Digital)
Solomon et al. (2008)