Marketing communication

Courses 1&2
• A short incursion in marketing:
- “Marketing mix” concept
- Jerome McCarthy: 4P (product, price, place, promotion)
- Albert Frey (1961): the offer (product, package, service, brand and price) and
instruments (distribution channels, personal selling, advertising and sales
promotion)
- 5P: 4P + People
- In services: 7P = 4P + people + physical evidence + process
• All the components of marketing mix communicate:
- Product (low quality versus intensive advertising) – Syoss?
- Price (Apple/ Samsung/ Asus)
- Place (Harrods & Carrefour)
- Promotional mix
- Other 3 Ps (in services marketing) – McDonald’s

- Promotional mix?
- Marketing Communication
 SOSTAC communication plan

• S – situation analysis
• O – objectives
• S – strategy
• T – tactics
• A – action
• C – control
• Where are we now?
• Where do we want to go?
• How do we get there?
• Details of the path
• Implementation (putting the plans to work)
• Measurement, monitoring, reviewing and modifying
 SITUATION ANALYSIS

• 3Ms
• Segmentation and targeting
 Human resources

• Men (and women)

• Skills
• Ability of handling specific activities
 Budgets

• Money
• Scientific and heuristic budget-setting approaches
 Scientific methods

• Objective and tactics (reviews the objectives, summarizes the strategy and
subsequent tactics required to achieve them)
• Modelling (uses a variety of econometric and simulation techniques to
model how various budget levels may affect performance)
• Payback period (time taken for an integrated campaign to pay back the
costs of the marketing communication)
• Profit optimization (argues that investment in marketing communication is
continued as long as the marginal revenue exceeds the marginal cost)
 Heuristic methods

• Percentage of sales (uses a simple calculation of a fixed percentage of

either past or anticipated sales)
• Competitive parity (uses competition and its relative marketing spend as a
yardstick)
• Affordable (is based upon using all available monies after costs are
deducted from required profits)
• Arbitrary (uses a senior manager to arbitrate between different views of the
marketing team)
 Time

• Minutes
 Segment criteria

• Measurable
• Substantial
• Accessible
• Relevant
• IKEA
 OBJECTIVES

• S – specific
• M – measurable
• A – actionable
• R – realistic
• T – time specific
 Marketing objectives

• Increase unit sales of product/ brand X by 10 per cent over the next 12
months;
• Increase market share by 5 per cent over the next 12 months;
• Generate 500 new enquiries each month.
 Communication objectives

• To increase awareness from 35 per cent to 50 per cent within eight weeks of
the campaign launch among 25- to 45-year old women;
• To position the service as the friendliest on the market within a 12-month
period among 70 per cent of the users;
• To include X wines in the repertoire of possible wine purchases among 20
per cent of wine buyers within 12 months.
 STRATEGY

• Harmonize and integrate all of the tactical communication tools

• Summarizes tactics
• Can include selection of target markets, positioning, selection of
communication tools, sequence of communication tools, and more.