Part 3: The marketing mix
Chapter 14: Marketing communications
Step 5: Design the marketing strategy
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When we finish this lecture you
should:
• Understand the concept of integrated marketing
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communications and why marketers use a mix of
promotional methods
Understand how the Internet has radically changed the
communication process
Know the difference between pull and push strategies
Understand how communication and the adoption
processes can affect the planning of marketing
communications
Know how typical marketing communications plans are
designed and who should manage them
Understand how to approach marketing communications
in international markets
Know what an advertising agency is and how it operates
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A good definition of marketing
communications (promotion)
• Consists of persuasive communication
• Involves communicating information between
sellers and potential buyers and/or others involved
in distributing the product
• Tries to influence attitudes and behaviour
• The marketing manager’s main promotional task is
to inform target customers that the right product is
available at the right place and the right price
(Marketing: Creating and Delivering Value, 4/e, Quester et al. p. 452)
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Figure 14.1 The communication process
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The marketing communications
process
• Source—the sender of a message
• Encoding—the source deciding what to say and
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translating it into words or symbols that convey
meaning to the receiver
Message channel—the carrier of the message
Decoding—the receiver translating the words or
symbols back into the message
Receiver—the potential customer
Noise—any distraction that reduces the
effectiveness of the communication process
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Figure 14.2 Encoding and decoding depend on a
common frame of reference
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Figure 14.3 A model of customer-initiated
interactive communication
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Figure 14.4 Marketing communications seek to
shift the demand curve
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The marketing communications
mix—an overview
• There are many choices of methods and
techniques for achieving marketing
communications objectives
• Major categories
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Advertising
Direct-response promotion (including Web sites and the
Internet)
Sales promotion
Sponsorship
Publicity and public relations
Personal selling
• Basic objectives include
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Informing, persuading and/or reminding
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Exhibit14.1b
COURTESY OF COLGATE PALMOLIVE.
Visually compelling
advertisements can
communicate well with few
words.
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Figure 14.5 Basic promotion methods and
strategy planning
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Exhibit 14.3a
COURTESY OF DICK SMITH FOODS.
Sponsoring an event, a
specific cause or charity
may enhance a brand in the
eyes of consumers.
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Factors affecting the marketing
communications mix
• Stage in the product life cycle
• Stage in the consumer’s adoption process
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AIDA Model
Different marketing communication mixes suit different
adopter groups
• Nature of competition and marketing
communications requirements
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Figure 14.6 Relationship of marketing
communications objectives, adoption process
and the AIDA model
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Marketing communications strategies
• The ‘PUSH’ marketing communications strategy
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using normal promotion efforts to sell the marketing mix
to channel members
• The ‘PULL’ marketing communications strategy
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getting customers to ask intermediaries for the product,
usually because of promotion directed to final consumers
or users
• Some combination of the two methods is usually
required
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Figure 14.7 Promotion may encourage pushing,
pulling, or both
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Marketing communications budget
• How much to spend on each type of marketing
communication is an important question
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There are some economies of scale in marketing
communications
Not all companies can afford to use mass
communications methods
• Budget allocations must be focused on the overall
strategy
• Many people believe that most of a marketing
communications budget is spent on advertising,
because it is so visible in everyday life
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Marketing communications budget
(continued)
• Most companies spend less on advertising than on
personal selling and promotions
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Sales promotions can be expensive
Most retail sales are completed by sales assistants
Much personal selling occurs in the distribution channels
and in business markets
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Integrating marketing
communications efforts
• Integrated marketing communications can equally
benefit goods and services
• Companies are aware that they can get a better
return on their investment if their marketing
technique reinforces their other marketing
communications techniques
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Who plans and manages the
marketing communications blend?
• Advertising managers
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Manage mass communication methods
Choose appropriate media and develop effective
advertisements
Advertising agencies may be used
• Sales managers
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Manage the personal selling effort
Often responsible for good distribution channels and
policies
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Who plans and manages the
marketing communications blend?
(continued)
• Sales promotion managers
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Manage the company’s sales promotions
Vary greatly
• Marketing managers
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Evaluate the marketing communications methods
Devise the overall promotional mix
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International aspects of marketing
communications
• Difficulties in designing an effective marketing
communications program
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Language
Will the same benefits be sought by different consumers?
Can the types of messages used in the domestic market
be effectively used elsewhere?
• Global campaigns
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Same segment of consumers around the world
Standardised approach to marketing communications
• Tailoring to meet the needs of the target markets
• Internet opportunities
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Advertising agencies
• Specialists in the planning and handling of mass
selling details for advertisers
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Full service vs. specialised
• Many small agencies, but large ones handle the
bulk of the work
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Growth of ‘mega-agencies’
• Agencies can usually be replaced at will
• Agencies often work on a commission (a per cent
of media purchases)
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Legal aspects of marketing
communications
• ACCC and the Commerce Commission
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Control unfair or deceptive practices
Police deceptive advertising or promotion
• Supporting promotional claims
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There are many ways to make statistics prove anything
• Self-regulation
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Stop trying to portray ‘me-too’ products as really new
products or better than existing products
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What we will be doing in the next
chapter
• In the following chapter we will be discussing the
marketing communications mix and introducing
such topics as
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Advertising
Direct-response promotion (or direct marketing)
Sales promotion
Sponsorship
Public relations and publicity
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