Marketing Communication

Ravi Shanker

Marketing: A set of activities whereby an organization creates the transfer of Value (exchange) between themselves & their customers Communication: A process whereby commonness of thought is established & meaning is shared between two parties Marketing communication: A collection of all elements in an organization's Marketing Mix that facilitates exchanges by establishing shared meaning with the organization's customers

Role of Marketing Communication

x x x x

Inform Educate Persuade Remind and motivate action Maintain relationships

PRODUCT CHOICES NEED TO MAINTAIN MARKET SHARE TO REMAIN COMPETITIVE DURING PERIODS OF LOW DEMAND

PHY. & EMOTIONAL DISTANCE

WHY PROMOTE

INTENSE COMP.

HIGH COST OF PROMOTION

BASIC PHYSIOLOGICAL NEED SATISFACTION TO DESIRES

SIX Ms OF MARKETING Merchandise: what are the important benefits of the products/services to be sold. Markets: who are the people to be reached. Motives: why would these people buy or fail to buy. Message: what are the key ideas, information and attitudes. To be conveyed, to move the prospect closer to the ultimate aim of a sale. Media: how can prospects be reached. Measurement: what method is proposed to measure accomplishment in getting the intended message across to the intended audience.

THREE MODES OF MARKETING

There are three ways in which Marketers seek to manage the demand of their offers

N TIO CA NI MU OM EC SIV UA RS PE

Companys product designed to meet the needs of target customers.

PR O IN MO DU TI CE ON ME AL NT S

The means used to trigger consumer action by offering extra substantive benefits beyond the basic offer.

It is intended to stimulate Consumer wants.

BASIC OFFER

BASIC OFFER PRODUCT ITSELF TERMS OF SALES PRICE DISCOUNT CREDIT WARRANTIES

PERSUASIVE COMMUNICATION - Impersonal Verbal Messages (Advertising publicity) - Personal Verbal Messages (Personal selling, Word-of-mouth) - Non Verbal Messages (Packaging, brand name) - Direct mail

PROMOTIONAL INDUCEMENTS
Extra substantive benefits beyond the benefits of basic offer: - Character of the basic offer (Free sample, trial use) -Price related inducements (Discount, money-off-coupons) - Inducements that are extra to the basic offer (Premiums, contests)

CONFERENCES SPONSORSHIPS PACKAGING PERSONAL SELLING LITERATURE MARKETING-PR CONTESTS

INTEGRATED COMMUNICATION PACKAGE

DIRECT MAILERS SALES PROMOTION

ADVERTISING

DIFFERENCES IN ADVERTISING & PERSONAL SELLING

PERSONAL SELLING DIRECTED AT CONTENT WORKING TRAFFIC OF INFO. FEEDBACK ADAPTABILITY INDIVIDUALS DIRECT/ PERSONALISED INDEPTH TWO WAY DIRECT HIGH ADVERTISING MASS AUDI. INDIRECT/ IMPERSONAL BREADTH ONE WAY STRUCTURED BOT DELAYED. LOW

STEPS OF THE CAMPAIGN PLANNING PROCESS

I. Whom are we talking to? The TA Potential buyer, current user Influencer, decider Individuals, groups, specific publics or Their perceptions about: co, product, Brand preferences, media habits Where are we? Why we are there?

II

What is the desired response?

Ultimate (of course) purchase Identify buyer-readiness stage & where the TA is At a particular time Cognitive Affective Behavioural know feel act

RESPONSE HIERARCHY
ACTION CONVICTION PREFERENCE LIKING KNOWLEDGE AWARE UNAWARE

III. What to say?

To produce the desired response. Objectives of the campaign V/s message contents

Iv.

How to say. It logically?

Structuring message by formulating benefits, motivators, reasons Is it the big idea Does it give the right strokes ie, the right appeal

APPEALS: THE 4 TYPES

Rational Quality Economy Value Features Emotional Positive Love Humor Pride Joy Negative Envy Fear Gilt Shame Sensory Taste Touch Moral (Social Causes)
Cleanliness

Women Equality

V.

How to say symbolically?

Un-noticed-un-sold Good message strategy V/s poor format (Doesnt stand out of the clutter, (Doesnt attract attention-least impactful) Print: headline, copy, illustration, color Radio: words, music, vocal quality, Vocalization TV : all

What media should be used? MEDIA TYPES

Personal Influence channel WOM Social channel Expert channel Advocate channel

Non-personal Influence channel Mass media PR-able Events

Vi. What media should be used? Understand 3 things about Media Medium as a Medium Medium as a Vehicle Medium as the Message

SALES PROMOTIONS

Sp comprises a range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales & marketing objectives.
1) 2) 3) TACTICAL/ TEMPORARY ADDITIONAL SPECIFIC MARKETING OBJECTIVES

Sales Promotion is the act of influencing perception & behavior to build market share and sales while reinforcing brand image.

Council Of Sales Promotion Agencies (CSPA), Chicago, 1992.

COMPANY

SALES

COMPETITION

CONSUMER

SP : WHAT IT CAN
It can stimulate sales force enthusiasm for a new, improved or mature product. It can create trade awareness of new products. It can help to gain distribution and build inventories. It can create more shelf space. It can reinforce advertising and illicit trial purchase.

It can hold current users by encouraging purchase habit building. It can increase product usage by loading

It can preempt competition by loading consumers.

SP : WHAT IT CANT
SP incentives cannot by themselves give the consumer any compelling long-term reason to continue purchasing a promoted brand. Sp cannot permanently stop an established product's declining sales trend. Sp cannot change the basic non-acceptance of a product which has been proved undesired earlier. Sp cannot create an image for a brand.

REASONS FOR GROWTH

x x x x x x x x

ACCOUNTABLE HELPS IN PRODUCT INTRODUCTION ORG. STR - INTRODUCTION OF BRAND MANAGEMENT FUNCTION COMPETITIVE CLUTTER MEDIA COST RECESSION & INFLATION RETAIL POWER & PRESSURES CONSUMER RESPONSE

A.
x

OBJECTIVES OF SP CONSUMER ORIENTED

OBTAIN TRAIL & REPURCHASE x INCREASING CONSUMPTIONS OF AN ESTABLISHED BRAND x DEFENDING CURRENT CUSTOMERS x ENHANCING ADVG & MKTG. EFFORT

Reduced Price Pack On Pack Premium Near Pack Premium Re-use Pack Bonus Pack Home Sample Cross Sample Home Coupons Mag/Press Coupons Free Premium Refund Offer Skill Comp.

SALES CONSUMER PROMOTION

B. TRADE ORIENTED
x Obtain distribution & support for
x

new products Maintain trade support for established brands Encourage retailers to display & promote established brands Build retail inventories

DEALER/ TRADE
Sales Contests Stock Display Contests Discounts Allowances Gifts Conferences

C. SALES FORCE ORIENTED

x x

Motivate Sales Force Assist Sales Force

SALES FORCE
Samples & Gifts Sales Incentives Bonus Tel. / Ent All. Memberships Contests Awards Conferences

D. MISC.
x x

To counter competition Build in store traffic

SALES PROMOTION: FACTORS OBJECTIVES Pro.

1. Short term volume Obj.

KEY SUCCESS Trade

Consumer Pro.

- Dual Pro. To trade & -Trade support Cons. -offer high - Sales Force /trade level of support incentives -short Pro. period

SALES PROMOTION FACTORS Objectives Trade Pro. 2. Long term Mkt. Share obj.

KEY SUCCESS

Consumer Pro. -Sales Force Support -Dual Pro. -Trade support

SALES PROMOTION FACTORS Objectives Trade Pro. 3.Building Trade Inventory obj.

KEY SUCCESS

Consumer Pro. -Avoid Comp. -Sales Force Support -High level of Incentives -Absence of Comp. Pro. -Trade support -Shorter pro. Period.

SALES PROMOTION FACTORS Objectives Trade Pro. 4.Increase consumer trial obj.

KEY SUCCESS

Consumer Pro. -Sales Force Support for -Long period -High level Incentives Dual Pro.

SALES PROMOTION FACTORS Objectives Trade Pro. 5. Load the consumer obj.

KEY SUCCESS

Consumer Pro. -S.F. & Trade support -High Promotion cost -Special Advg.

SP PLANNING PROCESS:
1. ENVIRONMENTAL ANALYSIS SITUATION ANALYSIS DETERMINE PROBLEMS & OPPORTUNITIES 2. INTERNAL ANALYSIS ESTABLISH ROLE OF SP IN MARKETING MIX DETERMINE PROMOTION PHILOSOPHY OF BRAND

3. ESTABLISH OBJECTIVES 4. SET BUDGETS 5. DEVELOP STRATEGY 6. DEVISE SCHEDULE 7.IMPLEMENT 8.FOLLOW-UP & EVALUATE RESULTS

SP Design
The following must be addressed in sequence in the design of any promotion. TYPE: What Type Of Promotion Should Be Used To Address The Objective? SCOPE: To which pack size or models the promotion apply (product scope) and in which geographical markets should the promotion be offered (market scope)

SP Design (Contd.)
TACTICS: When should the promotion be offered, when should it be announced, and how long should it last (timing)? What explicit or implicit discount should the promotion include. Straight price cut v/s added value TACTICS: What terms of sale should be attached to the promotion. (applicable on trade allowances) can be extended to consumer promotions: e.g.: - Coupon expiration dates

SP Design (Contd.)
TIMING It relates to four issues: When to promote How far in advance to announce How long to promote How often to promote

DIRECT MARKETING

MARKETIN G

INDIRECT MARKETING DIRECT SELLING

DIRECT MARKETING

DIRECT RESPONSE ADVERTISING

DIRECT MAIL OTHER MEDIA PRESS,T.V. ETC

THE DIRECT CONCEPTS IN MARKETING

Direct Response Advertising: It involves the use of any of several media to transmit messages that encourage buyers to purchase directly from the advertiser Direct mail: It is the most important direct advertising medium. The other medium for direct response advertising are tv, magazine etc.

Direct Marketing: Def. & Scope The total of activities by which products or services are offered to market segments, by way of one or more media, to solicit a direct response from a present or prospective customer DM is not specifically used to build an image, atmosphere or position for a product, instead it uses image, atmosphere or position as tools for generating a response.

DM is an interactive system of marketing which uses one or more advertising media to effect a measurable response, and/or transaction at any location. Dm involves interactive marketing Dm is not restricted to a single medium and profitability of any programme is maximized when each medium is effectively used to the fullest extent Dm allows greater measurability of response Dm takes place at a variety of locations

1. Efficiency: Ability to determine results 2. Targeting: Highly selective effort and minimum waste on unlikely prospects 3. Personalized: message As against impersonal

4. Impactful: By maintaining individual records to develop personalized and customized 5.Com. Expand the market: by overcoming
physical limitations which retail & face-toface sales personnel face 6. Immediate action : (reminders supplement the results) Experience : companies were able to build regional to national markets, from a local base.

OPERATIONALISING DM Step-i: Product Strategy Is There A Market For Our Type Of Product How To Position It What Benefit It Offers How To Motivate Step-ii: Offer Strategy One Step Or Two Steps -Lead Generation -Conversion

Step-iii: Creative Strategy The Art & Science Of Developing The Message Innovations Step-iv: Media Strategy The Most Suitable Media Mix: mailer Mag. /Press Ads Tel. /TV / Radio, Outdoor

Personal Selling

Selling Intangibles Services Technical Consultant IREATIVITY IN SELLING Missionary Salesman Travelling Salesman Van Salesman Grocery Salesman Milk Both Salesman

FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT IDENTIFYING & QUALIFYING PROSPECTS

The Creative Selling Process

Sales Management Sales

Setting objectives

Planning

Organizing Organizing activities

Motivate, evaluate, & control

Controlling

Directing

Recruit, select, train, develop, manage, & motivate

PUBLIC RELATIONS

The old name for marketing PR was publicity, which was seen as the task of securing free editorial space (As against paid space i.e., Advg.) in print or broadcast media to promote product, place, person MPR goes beyond publicity
Public relations is defined as the management function which evaluates public attitudes, identify the policies and procedures and execute a programme of action to earn public understanding and acceptance

STRATEGIC PLANNING OPERATIONS

PUBLIC
MARKETING
STEPCHILD

RELATIONS HRD

MEGAMARKETING PR LOBBING/POWER

FINANCE

STATUS: TODAY PR is another management tool. PR deptt. Is typically located at corporate hq. It deals with a number of publics which are important to an organization. Like: stockholders, employees, legislators, regulatory agencies, opinion leaders, community at large, customers

PR ACTIVITIES INCLUDES: PRESS RELATIONS : PRESS PEOPLE/MEDIA PROSPECTS,

EXT. SHARE HOLDERS COMMUNITY INT. EMPLOYEES

PRODUCT PUBLICITY: CONSUMERS CORPORATE COMMUNICATION

LOBBYING REGULATORY BODIES

GOVT/STATUARY

COUNSELING : MANAGMENT MOST OF THESE DONOT FEED INTO DIRECT PRODUCT SUPPORT

MRP-POSSIBLE OBJECTIVES BUILD AWARENESS CREDIBILITY STIMULATE S.F. & DEALERS HOLD DOWN PROMOTION COSTS

TOOLS PUBLICATIONS EVENTS NEWS SPEACHES PUBLIC SR. ACTIVITY IDENTITY MEDIA
LIKE: VISUAL IDENTITY LOGO UNIFORM BRESS CODE STATIONARY/CARDS BROCHURES BUILDINGS

THEY CAN BE EFFECTIVELY USED IF THEY ARE ATTRACTIVE DISTINCTIVE MEMORABLE

PROACTIVE MARKETING PR DISTATED BY COs MARKETING OBJS. AIMS AT ADDITIONAL EXPOSURE NEWS WORTHINESS CREDIBILITY

REACTIVE MARKETIN PR DISTATED BY OUTSIDE INFLUENCES AIMS AT HANDLING VULNERABLE POSITION/SITUATION IN THE MARKET PLACE.

EX: PROACTIVE ASSIST IN THE LAUNCH OF NEW PRODUCTS INFLUENCE SPECIFIC TARGET GROUPS BUILD UP INTEREST IN A PRODUCT CATEGORY EX: REACTIVE -ASSIST IN THE REPOSITIONING OF A MATURE PRODUCT DEFEND PRODUCTS THAT HAVE ENCOUNTERED PUBLIC PROBLEMS

BUILD AWARNESS BUILD CREDIBILITY STIMULATE THE SALES FORCE/DEALERS HOLD DOWN, PROMOTON COST

TASKS BUILD CORPORATE IMAGE INFLUENCE SPECIFIC GROUPS BUILD INTERESET IN SPECIFIC PRODUCTS ASSIST IN THEIR LAUNCH ASSIST IN REPOSITIONING DEFEND AGAINST.

AUDIENCE FOR CORPORATE COM. INTERNAL LOCAL/COMMUNITY INFLUENTIAL GROUPS THE TRADE GOVT. MEDIA FINANCIAL INST. CUSTOMERS THE GENERAL PUBLIC

SOURCE: MEDIA FOR PR & CORPORATE IMAGE (DAVID BERNSTEIN, (1989) CORPORATE IMAGE & REALITY) PRODUCTS CO. PRODUCES ITS CORRESPONDENCE PERSONAL PRESENTATION IMPERSONAL PRESENTATION LINTERATURE P.O.S. MATERIAL PERMANENT MEDIA ADVG. MEDIA RELATIONS

NEWS IS OFTEN DEFINED BY ITS QUALITIES: TIMELINESS PROXILITY PROMINENCE CONSEQUENCE RARITY HUMAN INTEREST

SOME TIPS FOR HANDLING MEDIA PEOPLE 1. BE COOPERATIVE WITH REPORTERS, GIVE FAVOURABLE ATTENTION SHOW CONSIDERATION. 2. BE FRANK. DIRECT, SINCERE & DONT MISLEAD 3. KEEP COOL. IF NOT IN A POSITON TO TALK (DUE TO LACK OF INFORMATION AS INDISPOSITION) SAY SO. & OFFER TO TALK LATER & FOLLOW THROUGH. 4. APPRECIATE THEIR DEADINES. 5. BE CLEAR THAT CAN YOU REALLY HIDE FACTS? WORK ACCORDINGLY.

Crisis Management
Emergency information dissemination x Rumor center x Fact-based x Press conferences x Outside experts x Localize

Evaluating & Monitoring Public Relations

x x

Systematic Compare with competitors Monitor media & chatrooms

Review
What is MC and its components: Advertising Sales Promotions Direct marketing Personal selling PR How to plan each of these programmes