Marketing Communication
S1 Strategic Communication & Strategic Marketing Communication
1.1 Online Session2_What is Strategic Communication
Strategic communication
Def.: Strategic communication = communication aligned with the company’s overall strategy, to
enhance its strategic positioning.
Criteria for strategic communication:
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Have a clear message
Have a consistent message
Repeat the message to achieve a positioning in the customers’ minds
Use various mechanisms and the right channels to reach customers
Get feedback from customers (-> adjust strategy and adjust communication)
Tie communication with financial and behavioral outcomes
Communicate within a given budget
1.2 Online Session3_What is Marketing Communication
Marketing – Definitions:
“The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.” (Kotler & Armstrong)
“The activity, set of institutions and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.”
(American Marketing Association)
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Creating value is at the core of what marketing is
How to create value for target customers?
1. Select customers to serve: requires (1) segmentation and (2) targeting
2. Decide on value proposition: requires (1) differentiation from competitors and (2)
positioning
3. Deliver value by means of the marketing mix: product, price, place, and promotion
Promotion = Marketing communication = “The collection of all elements of a firm’s
marketing mix that facilitate exchange by establishing shared meaning with the
firm’s customers.”
How can marketing communication be strategic?
Strategic
Intent
Strategic
Execution
Element of the 6M
Model of Marketing
Communication
Mission
Market
Message
Media
For marketing communication to be strategic, it should…
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it should be created for a particular target market
it should have a clear and consistent message;
it should be coordinated within the promotional
perspective of the marketing mix and with all other
elements of the marketing mix (integration)
It should be executed in appropriate media
Strategic
Impact
Money
It should be created to achieve a specific objective within a
given budget
Measurement
It should have a measurable impact
Role of Marketing Communication
Def.: Marketing Communication = establishing shared meaning with the firm‘s customers.
Role: Marketing Communication facilitates communication between brand and consumer. Marketing
communication contributes to the formation of brand building blocks (such as attitudes, responses,
etc.).
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social media -> shift from one-way communication (brand to consumer) to two-way
directional communication
Role of Brand Management
Brand Resonance Model (Keller, 2001): considers how brand positioning affect what consumers
think, feel, and do and the degree to which they resonate or connect with the brand
Elements of brand positioning:
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Brand identity: who are you?
Brand meaning: what are you?
Brand responses: what about you? what do I think or feel about you? -> brand attitudes ->
cognitive, affective, and behavioral responses
Brand relationships: what about you and me?
Role of Marketing Communication in Brand Management
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helps to reach out to consumers by means of segmentation and targeting: with marketing
communication campaigns, a company can develop messages that appeal to the specific
needs and desires of different segments and transmit those messages via appropriate media
for the specific segments-> reach customers better
helps to communicate with consumers (whether they are customers or not): creates
awareness, informs, can lead to attitudinal and behavioral changes in consumers)
helps to differentiate offerings and to position within the market
helps to achieve financial outcomes
Role of Marketing Communication in customer decision making process
Marketing communication plays a role in each step of the consumer decision making process.
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Problem Recognition: remind consumers of existing needs
Information Search: educate consumers about product features and benefits
Evaluation of Alternatives: assist consumers in making comparisons among options
Purchase Decision: encourage and reinforce consumers to making the purchase
Post-Purchase Assessment: encourage product usage and make consumers feel good about
their purchase decisions
S2 Strategic Intent of Marketing Communication – Mission & Market
3.1 Strategic Mission
1
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Marketing communication can have different effects; the hierarchy of effects model displays
six potential stages of the relationship between brand/product and consumer
1. Awareness and knowledge relate to information or ideas (Lavidge and Steiner, 1961)
 related to the cognitive/rational component of behavior
 ads provide information and facts
 Examples: slogans, sky writing, teaser campaigns, announcements; must not
necessarily be the identification of the brand name -> image product
package (Percy and Rossiter, 1992)
2. Liking and preferece have to do with favorable attitudes or feelings toward the
product (Lavidge and Steiner, 1961)
 related to the affective component of behavior
 ads change attitude and feelings
 examples (liking): image ads, status/glamour appeals
 examples (preference): competitive ads, argumentative copy
3. conviction and purchase are to produce action - the acquisition of the product
(Lavidge and Steiner, 1961)
 conative or motivational component of behavior
 ads stimulate or direct desires
 examples (conviction): testimonials
 examples (purchase): point of purchase deals/last chance offers, price
appeals
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Depending on the relationship stage, a different marketing communication effect is desired:
1. Create awareness
2. Disseminate information1
3. Change attitude
The information provided does not necessarily have to be related to the advertised product, it can also be an
information about something else related to the brand (e.g. product ad + information that old product can be
returned for a discount)
4. Change behavior
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The different stages of relationship can further be assigned to the three dimensions Think,
Feel, Do
Markers can focus on one specific mission but they usually use a mix and match of different
missions by
1. determining what steps are most critical in leading to purchase in a particular setting
2. determining how many people are at the moment on which stage
3. determining which people on which steps it is most important to reach (Lavidge and
Steiner, 1961)
4. -> design of a multifaceted communication with multiple effects that addresses
consumers at different stages
5. Finally, consumers perceive one and the same message different which means that
without attempting so, the effect of a marketing communication is naturally
different in different consumers
Measuring the effect of Marketing Communication:
1. communication can aim at different effects -> success of marketing communication
should not be solely measured by no. of direct purchases (Lavidge and Steiner, 1961)
2. e.g. the direct impact of attitudinal change on sales can’t be qualified in the shortterm but it CAN be measured in the long-term because it will positively influence
brand equity in the long-term
3. Specify the amount of change
Mission 1: Awareness
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Consumers can have different levels of brand awareness
1. Unaware of the brand
2. Brand recognition visual or verbal2
3. Brand recall
4. Top of mind awareness -> consumer easily calls brand into mind
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Basic awareness = level at which the consumer knows at least the brand’s existence
(between (1) and (2))
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A consumer can perceive an ad different depending on his/her brand awareness
1. Marketing communication can either be designed in a multifaceted way and address
recipients at different awareness stages
2. Or it can be targeted at consumers in one specific brand awareness stage
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2
Lavidge and Steiner, 1961): A Model for Predictive Measurements for Advertising
Effectiveness -> steps, advertising must go through in the consumer:
1. unawareness
Difference between brand recognition and brand recall depends on what occurs first in buyer's mind:
category need (brand recall) or brand awareness (brand recognition); for the same product, the decisionmaking situation can be different for two consumers; brand recall is associated with a higher brand knowledge
(e.g. consumer can remember values, multiple brand elements, product details, etc.) whereas brand
recognition is associated with a lower brand knowledge level (e.g. consumer can only establish a link between a
cue and a brand but lacks detailed information)
2.
3.
4.
5.
6.
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merely aware of existence
know what product has to offer
favorable attitudes towards offer
conviction
actual purchase
The greater the commitment/involvement involved in the purchase (psychological or
economic), the longer it will take to bring consumers up these steps
Mission 2: Disseminate Information
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Convey a single message
Mission 3: Change attitudes
Mission 4: Change behavior
Percy and Rossiter Framework
Rossiter and Percy model (1987) = 2x4 communication model; underlying rational is that brand
awareness and brand attitude + the interaction between both form the basis of consumer behavior
and result in eight possible communication strategies
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Brand awareness: depending on brand awareness, communication can have two different
brand awareness objectives
Brand attitude: brand attitude has a cognitive and an affective component and can be
classified along two dimensions (involvement and motivation)
1. Cognitive components arise from beliefs about the brand’s benefits, affective
components “energize behavior”
2. Brand attitude and involvement dimension: relates to the cognitive aspects of a
brand attitude
critical points for low involvement strategies:
 Extreme claims which don’t necessarily have to be believed but
remembered
Critical points for high involvement strategies:
 Claim must be believed and accepted
3. Brand attitude and motivation dimension: according to the Rossiter and Percy model
(1987)
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brand attitude originates from the consumer’s underlying motivation
negative behavioral motivation is present in consumers with an information
need / closely linked to cognitive components -> informational strategy is
appropriate
“one utilizes an informational strategy only when the advertised brand is
linked to one of the five negatively originated motivations:
 problem removal (pain relievers)
 problem avoidance (detergent products)
 incomplete satisfaction (new and improved products)
 mixed approach avoidance (low-tar tobacco products)
 normal completion (any loyal brand that one runs out of)”
positive behavioral motivation is closely linked to affective components ->
transformational strategy is appropriate
“transformational strategies are used only when the advertised brand is
linked to one of the positively originated motivations:
 sensory gratification (dessert products)
 intellectual stimulation (personal computers)
 social approval (cosmetic or status goods)”
critical points for transformational strategies:
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emotional authenticity of the communication
appeal of the communication / consumer should like the ad
irrespective of his liking of the brand
Means that one buyer’s brand attitude is situational rather than stable
And means that different consumers can have a different underlying
motivation regarding the same product:
→ marketers can use the underlying motivation as a segmentation variable
and chose their communication strategy so that it matches the
motivation (informational vs. transformational strategy)
→ If marketers have previously targeted segments with an negatively
originated motivation by means of an informational strategy, they can
target new segments by changing to a transformational strategy and
target those segments which have a positively originated motivation
3.2 Strategic Market – to whom is the communication addressed?
3.2.1 Select Customers to serve
Segmentation: Divide the total market into smaller segments
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Segmentation is relevant for
1. Dividing the total market in smaller segments which can be targeted specifically
2. Becoming aware of target customers’ specific needs and preferences because
marketing communication must be designed to specifically address them
Segmentation approaches
1. Geographic
2. Demographic: age, gender, income, etc.
3. Psychographic: psychographic segmentation variables refer to consumers’ activities,
interests, and opinions (AIOs)
4. Behavioral: behavioral segmentation variables describe how people behave with
respect to a particular product category / class of related products; usage rate,
loyalty status, benefits sought
Targeting: Select the segment(s) to enter
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Targeting approaches
1. Undifferentiated marketing: one big market and one product mix (e.g. Coca Cola) ->
mass marketing, generic communication strategy
2. Differentiated marketing: multiple markets and separate marketing mix for each
market (e.g. umbrella brands such as P&G with several smaller sub-brands or mother
brand such as Coca Cola with different tastes for different targeted segments)
3. Concentrated (niche) marketing: target a large share of one or a few smaller
segments or niches3
4. Micromarketing: personalized marketing to suit the tastes of specific individuals (e.g.
based on their location); complex communication strategy
3.2.2 Decide on Value Proposition
Differentiation: Differentiate the market offering to create value4
Positioning: Position the offering in the minds of customers
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Critical points:
1. Deliver on promise
2. Consistency
3. Simplicity and distinctiveness
3.2.3 Macro Market Perspective
The macro market perspective views a brand in a market environment with diverse external
influences and conditions. It’s essential for brand managers to adapt this perspective when deciding
on the customers to serve (Market) but it’s also relevant for brand management in general.
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Cultural influences: can be specific values, role models, habits, lifestyle characteristics, etc. to
be considered
Regulatory influences: minimum age, ingredients, declarations, etc.
Technological influences: mobile usage, media preferences, etc.
Economic influences: relevant economic conditions in the target market, e.g. financial
resources of target segment
Natural influences: specific natural conditions to be considered
S4 Strategic Execution of Marketing Communication
4.1 Message
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3
Messages are relevant to communicate the brand’s value to the target customers
Consumers have a limited capacity to receipt stimuli and to process information from their
environment -> message must be designed to enhance consumer motivation to focus his
capacity on the information presented by the communication -> executional strategies and
elaboration likelihood model of persuasion
Niche marketing can be a source of growth as many brands focusing on sustainable consumption have
proved: 10 years ago, the target audience were niches but the segment grew drastically and sales exploded
4
E.g. IKEA differentiates from other furniture stores trough its value proposition to be “The Life Improvement
Store” (more than just furniture, customer experience,…)
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Link between Marketing Communication and Brand management: “Develop a message that
is different and unmistakably linked to a company’s brand.”
4.1.1 Message Strategies
Message Strategy
Messages
Description and examples
Underlying
mission5
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Generic
Messages
Cognitive
Message
Strategies =
presenting pieces
of information to
target customers
Preemptive
Messages
Unique
selling
proposition
Messages
Hyperbole
Messages
Comparative
Messages
Affective
Message
Strategies =
designed to
invoke
feelings/emotions
Conative
Message
Strategies =
designed for
more direct
consumer
response
Focusing on selling the category, not the
brand
 E.g. dentist advertises teeth whitening
rather than his personal office
 Brand chooses to be the first to make a
claim about a product/service
 claim may also be true for competitors,
but you’re the first to tell the target
audience about it
 highlight what is unique about the
brand (compared to other brands);
differentiation
 focus is on own uniqueness, not on
competitors (see comparative
messages)
Wild exaggerations which don’t necessarily
reflect the truth
Create
awareness
and
disseminate
information
Comparisons with competitors
Resonance
Messages
Strong and deep tone with long lasting effect
(e.g. Dove)
Emotional
Messages
Using feelings to connect with audience
Change
attitude
Action
Inducing
Promotion
Supporting
Change
behavior
Means-End chains models
Means-end chain models generally assume that consumers use products/services (means) to achieve
desired end states/values (ends). Different variants of means-end chain models exist (e.g. by
Gutman, 1982, or MECCAS). In addition, different conceptualizations on values exist (e.g. Schwartz’
Personal Vlaues model, 1994). Implications for marketing messages are that besides product
attributes, functional benefits and psycho-social benefits, messages must also include consumers’
personal values.
5
Does not mean that affective message strategies cannot be used to create awareness, but it’s the mission
which matches best with the respective message strategy
Example 1: Means-End Conceptualization of Components for Advertising Strategy (MECCAS)
 Consumers have abstract (and individual) ideals (= personal values) that guide their decisions
 Message must – according to MECCAS model - convey
o Product attributes = tangible product features
o Functional benefits = tangible benefits achieved from using the product/service
o Psycho-social benefits = emotional benefit achieved from using the product/service
o Personal value of using the brand = the desired end-state the consumer wants to
achieve by using the product/service -> Marketers must identify the most important
values of their customers (Schwartz framework) and design the message so that it
adds to the customers’ values and help them achieve their goal
Example 2: Means-End Chain Model by Gutman, 1982
Assumptions
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Consumers have desired end states that guide their decisions
“people cope with the tremendous diversity of products that are potential satisfiers of their
values by grouping them into sets or classes so as to reduce the complexity of choice”
(Gutman, 1982); those classes are defined by the value they provide and not necessarily by
the product class6
“all consumer actions have consequences (..), and that consumers learn to associate
particular consequences with particular actions” (Gutman, 1982); consequences can be:
o Physiological (e.g. satisfying hunger)
o Psychological (e.g. self-esteem)
o Sociological (e.g. group membership)
Rationale
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“Consumers choose actions that produce desired consequences and minimize undesired
consequences” (Gutman, 1982)
In other words, consumers use products/services (means) to achieve desired end
states/values (ends) -> means-end chain models
This means, the model links
1
Values to consequences -> allows to evaluate consequences
2
Product attributes to consequences: “consumers create arrays of products that
will be instrumental in helping them achieve their desired consequences”
(Gutman, 1982); see assumption 2: these arrays aren’t necessarily product classrelated but rather add to the same value for the customer
3
Thus on a higher level perceived product attributes and values
4
And finally values to behavior
Marketers can use this model to intentionally establish means (through advertising) which
help consumers to achieve their desired end states
“Consequences leading to important values should be more important to a person than
those leading to less important values” (Gutman, 1982)
Model appropriateness
6
This grouping (also referred to as distinction by Gutman) can be used as a starting point to adapt a new
marketing approach: by understanding how consumers group products of different classes together in one
category based on the value provided, they reveal insights about the most important values provided by those
products (e.g. if consumers group lemons together with washing liquid because of its function to clean,
marketers can use this insight for a completely new way to advertise lemons)
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Model “permits (…) to focus on the basic aims consumers have in life while not losing sight of
how these aims influence choices in specific situations.” (Gutman, 1982)
It is thus appropriate to analyze (frequent) consumption choices in the long-term /
consumption habits and less appropriate for one-time-consumption-behaviors
One-time-consumption-behaviors often go along with low-involvement purchase situations
meaning that the model also does not fit these situations
Framework: Schwartz’s Personal Values (1994)
Model classifies consumers values into 10 different categories
Category
Self-Direction
Defining goal
independent thought and action-choosing,
creating, exploring
Stimulation
excitement, novelty, and challenge in life
Hedonism
pleasure or sensuous gratification for oneself
Achievement
personal success through demonstrating
competence according to social standards
Power
social status and prestige, control or
dominance over people and resources
Security
safety, harmony, and stability of society, of
relationships, and of self
Conformity
Conformity values derive from individuals’
desire to avoid actions that could upset or
harm others and violate social expectations or
norms
respect, commitment, and acceptance of the
ideas that one's culture or religion provides;
subordinating the self to socially imposed
expectations
preserving and enhancing the welfare of those
with whom one is in frequent personal
contact
Tradition
Benevolence
Universalism
understanding, appreciation, tolerance, and
protection for the welfare of (1) all
people/society and (2) for nature
Values
creativity, freedom, choosing
own goals, curious,
independent, self-respect,
intelligent, privacy
a varied life, an exciting life,
daring
pleasure, enjoying life, selfindulgent
ambitious, successful, capable,
influential, intelligent, selfrespect, social recognition
authority, wealth, social power,
preserving my public image,
social recognition
social order, family security,
national security, clean,
reciprocation of favors, healthy,
moderate, sense of belonging
obedient, self-discipline,
politeness, honoring parents and
elders, loyal, responsible
respect for tradition, humble,
devout, accepting my portion in
life, moderate, spiritual life
helpful, honest, forgiving,
responsible, loyal, true
friendship, mature love, sense of
belonging, meaning in life
broadminded, social justice,
equality, world at peace, world
of beauty, unity with nature,
wisdom, protecting the
environment, inner harmony, a
spiritual life
Tripartite model of attitude (tricomponent model)
 Message influences attitude which – according to the tricomponent model – is connected to
the behavior
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“correlations among these three components were moderate, suggesting the practical
importance of discriminating among them” Breckler, S. J. (1984) -> when measuring attitude
change caused by a marketing message, marketers should focus on the effect of the message
of one specific attitude component rather than on attitude in general
“not all attitude components are built up through cognitive processes” Breckler, S. J. (1984);
an affective attitude component may arise from a solely emotional stimulus -> brand attitude
does not only result from cognitive stimuli but also from nonverbal or noncognitive ones
4.1.2 Message strategies to enhance motivation
Two main objectives of
the marketing
communication message
can be distinguished:
For both objectives, several
executional strategies are possible:
Use messages that appeal to hedonic
needs of target audience
1st objective: enhance
consumer motivation to
attend to the message
provided to them
Use messages that use novel stimuli
Use messages that use intense or
prominent cues
Use motion
2nd objective: enhance
consumer motivation to
process the brand
information
Use messages that increase the
relevance of the brand to the self;
aim is that consumer can relate to a
situation/issue/emotion presented
Increasing curiosity about the brand
Use sex appeals, appetite
appeals
Innovative (mostly visual)
presentations
Use big billboards, colorful and
vivid images, celebrities
Presentations which include
motion
The product to be advertised is
often absent in the ad or
becomes visible later; use fear
appeals the consumer can
relate to; use rhetorical
questions
Use humor, teasers
4.1.3 Message Executional Strategies
Message executional
strategies
Animation
Slice of life
Informative
Demonstration
Testimonial
Authoritative
Fantasy
Description
Use of an animation character
Use everyday people in everyday situations
Provide information
Demonstrate the performance and effectiveness of the product (e.g. by
demonstrating product in use or showing before/after comparisons)
Testimonial can but must not necessarily be a celebrity, can also be a
“man on the street” who illustrates the effectiveness of the product
Use an expert praising the product
Illustrate a fantasy situation in which the consumer has used the
product
Elaboration Likelihood Model (Petty & Cacioppo, 1986)
 The elaboration likelihood model helps to grasp how consumer may react to communication
messages intended to change their attitudes or behavior
Rationale
The kind of sensory data which is appropriate for a given purchase situation depends on

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the nature of the situation (e.g. the product) and the consumer’s involvement (Elaboration
Likelihood Model)
and the consumer’s general need for cognition
Assumption
“consumer attitudes are changed by two distinctly different routes to persuasion” (Schiffman et al.,
2008) which are illustrated by an elaboration continuum


central route: is the appropriate strategy for attitude change in high involvement situations
in which consumers are willing/motivated to invest high cognitive effort for information
processing -> provide educational information
peripheral route: is appropriate in low involvement situations in which consumer rely on
surface characteristics, emotional cues and shortcuts, have limited assessment skills, and are
not motivated to invest high cognitive effort -> provide secondary inducements (e.g. price
promotions, free samples, an appealing purchase environment, great packaging, etc.) -> 4.1.2
Message strategies to enhance motivation
In the short term, both routes may be effective and lead to the desired attitude change (Schiffman et
al., 2008). In the long-term “attitude changes via the central route appear to be more persistent,
resistant, and predictive of behavior than changes induced via the peripheral route.” (Pretty &
Cacioppo, 198) This is mostly because object-relevant information is better accessible if attitude is
based on the central route which gives the attitude a more substantial basis.
4.2 Media
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where, when, and how will the message be communicated
main goal: motivate consumer to process the provided information
strategically select the media to use within the marketing communication plan
o what’s the strategic mission
o what does the market look like
o at which stage of the decision making process is the target group
by selecting a certain kind of media, which route does the company select to go? (peripheral
vs. central route)
4.2.1 Types of Media
Mass Media vs. Addressable Media (decision was relevant earlier)
Mass Media
 viewed by mass audience
 no customization possible
 e.g. TV advertising
Addressable Media
 customized / addresses the needs of a
specific consumer
 e.g. personal selling
Synchronous Communication vs. Asynchronous Communication
Synchronous Communication
 both, firm and consumer participate at
the same time
 e.g. TV advertising
Asynchronous Communication
 firm and consumer participate at
different times
 consumer decides when he/she pays
attention and attends to the message
 e.g. direct mail
Owned Media, Paid Media, Earned Media (this decision is more relevant nowadays)
Owned Media
 includes all media
which are owned by
the company
 e.g. company’s
website, SoMe
channels, owned retail
stores, catalogues
Paid Media
 company earns the
control but pays for
using the media
 e.g. TV, print, outdoor
media, radio, online
advertising
4.2.2 Marketing Communication Media
 Advertising
 Social Media
 Direct Marketing
 PR
 Event Marketing and Sponsorships
 Sales Promotion
Earned Media
 channels the company
has earned through PR
activities, SoMe
outreach, viral
campaigns, event
marketing, etc.
 e.g. consumer blogs,
rating sites, customers’
SoMe feeds, online
communities
A. Advertising
= “paid7 placement of a non-personalized message by an identified sponsor intended to inform and
persuade people about a product or service”
Advertising types
 type 1: product advertising = is related to communication relating to a company’s product
 type 2: corporate advertising
o = aims to establish a favorable attitude toward a company as a whole and to build
the image of the firm
o communicates an organization’s views
o sometimes positions the firm’s products against competition
o plays an important role in integrated brand promotion
o no direct link to a product
Advertising objectives depend on underlying communication mission
Mission
Advertising objective
Brand awareness: recognition
Objective is that consumer
recognizes the ad/product/brand
when shown the ad (brand
awareness)
Brand awareness: recall
Objective is that brand is in the
long-term memory or evoked set
of the consumer (not identical but
closely linked to brand
preference8)
Brand image
Resulting advertising focus
Reach
Frequency
Theories on achieving advertising objectives
theory 1 about achieving advertising objectives: Three-Exposure Hypothesis
 according to the theory, advertisements must be exposed at least three times to the target
customers
 assumption: consumers have an intrusion value, meaning that – even if they don’t want to
attend to an ad - they will pay attention to it if it is exposed at least three times to them
theory 2 about achieving advertising objectives: Recency Theory
 according to the theory, three exposures are not enough
 assumption: consumers have a selective attention, meaning that they decide to which
messages they pay attention and they do not have an intrusion value
 result: need for continuous advertising; exposure can be increased by adding reach
Variables concerning advertising objectives9
 variable 1: effective reach = % of audience that must be exposed to an advertisement to
achieve a specific objective -> refers to the whom of media
 variable 2: effective frequency = no. of times an audience must be exposed to an ad to
achieve a specific objective -> refers to the how of media
7
Advertising is hence part of the paid media (vs. owned media vs. earned media)
Brand recall is primarily about being able to link brand elements to the brand which does not include an
evaluation per definition but often, recall goes along with preference
9
Variables the company must decide on in developing the marketing communication
8
Advertising media channels10:
 TV
 Radio
 Magazines
 Newspaper
 Alternative media: e.g. placing brand/product in a movie/TV show or in outdoor/public
places (e.g. on trucks, restroom spaces, etc.); referred to as brand placement)
 Digital media: refers to digital advertising = advertising which uses the Internet to deliver
promotional messages to consumers; in contrast to traditional media, digital media helps to
enhance the brand relationships, to create bonds between consumers and brands and to
create brand communities; they are mainly used in the post-purchase phase (brand
advocates) but can also help during the evaluation process and be meaningful in influencing;
examples:
Digital media
examples
company websites
Description



(Internet) banner
ads
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Pop-ups
Online video ads
Videogame
advertising
Mobile advertising
and apps
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Search ads
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used for advertisements for the company in general, not for individual
brands
represents a venue to generate and transact exchanges between
organizations and their customers
provide the possibility to link to other marketing communication
activities and hence provide a way for integrated marketing
communication
have been the first digital advertising media but still accounts for 20%
of digital advertising
has evolved over time and meanwhile allows to embed videos
banner ads can be positioned on specific websites which means they
allow for targeting only those consumers who view a specific website
-> high match with audience
= ads that appear in a separate window as a pop-up
= audio-video ads which are similar to TV commercials
= positioning of the brand/product in a videogame
Refers to ads in apps, pop-ups during online searches
For this reason, they provide the same options for targeting
Option for personalization (consumers provide personal data which
can be used for personalized recommendations)
Customers have to download app (show initiative) -> app is
appropriate to influence later stages of decision making process
= ads that appear on search results pages
Options for targeting
Targeting can be based on locations (e.g. restaurant appears if
consumer makes a search related to the location) or on keywords
(referred to as branded keywords)
Social Media
Three views on exposure frequency (Krugman, 1972)
 View 1: “the ad must be learned in the same way that habits are learned – by practice”
(Krugman, 1972) -> continuous exposure to ad is crucial
10
Communication mission must also be reflected in selection of media channels


View 2: “at the right moment (when one is “in the market”) it just takes minimal exposure to
achieve appropriate effects” (Krugman, 1972) -> openness of the customer towards the ad is
crucial (and hence the right moment)
View 3 (middle road):
o Research suggests that the optimal number of exposures is not endless but rather a
few (two to four for TV commercials)
o First exposure is characterized by stimuli’s novelty -> focus on object’s nature ->
cognate response -> the consumer MUST elicit some response, “if only for the
mental classification required to discard the object as of no further interest”
(Krugman, 1972)
o Second exposure evokes more evaluative and personal responses as cognate
responses from first exposure are usually still available (object recognition, memory)
-> reevaluation of object’s relevance with focus on personal relevance
o Third exposure is “the beginning of disengagement, of withdrawal of attention from
a completed task” (Krugman, 1972)
Consumers’ moment-to-moment emotional responses to advertisements
Research about hedonic experiences provides the following insights:
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11
“Frederickson and Kahneman (1993) suggest that the representation of emotional episodes
in memory can be likened more to a collection of snapshots than to a continuous film. They
argue that people do not simply add up the hedonic values associated with the separate
moments to arrive at the measure of overall utility of the series. Rather, they seem to rely on
a weighted average model wherein certain key moments are weighted more heavily than
others and in fact could serve as proxies for the sequence as a whole.” (Baumgartner et al.,
1997); “the peak or most extreme experience and the final moments of the episode have the
greatest impact on retrospective evaluations” (Baumgartner et al., 1997) (referred to as
peak-end rule11)
Preference for improvement: consumers prefer an “improving series of outcomes to a
declining one” (Baumgartner et al., 1997) -> preference for “a high peak and a strong positive
end note” (Baumgartner et al., 1997)12
Preference for a fast improvement: consumers “are also more satisfied when the
improvement occurs at a fast pace” compared to gradual improvement (Baumgartner et al.,
1997) (referred to as “velocity of the change”)
“people might ignore other factors in evaluating extended experiences” (Baumgartner et al.,
1997) such as total or cumulative gain or loss, experience duration (referred to as “duration
neglect”13)
o Experience duration does not play a direct role on evaluation but is functional in
building to a high peak which then again has an indirect positive effect on the
evaluation
o “Therefore, for commercials that generate pleasant feelings, consumers are likely to
prefer advertisements that delay the peak emotional moment as much as possible
with the best possible outcome being a high end note” (Baumgartner et al., 1997)
Remembering self vs. experiencing self
Assuming two ads have a similar, positive end and an identical integral of positive moments, consumers will
prefer an ad with an extreme, positive peak to an ad with a consistent sequence of less extreme, positive
moments
13
The reason for duration neglect lies in the fact that several key moments rather than the sequence of
experiences as a whole are used for evaluation;
12
o
“Time after peak is likely to be “dead” time with little beneficial effect on overall
evaluations” (Baumgartner et al., 1997) and “actually reduces global evaluation by
depressing the final moment of the series” (Baumgartner et al., 1997)
Effects of Banner Advertisements
 Approximately 47%of online advertising spending is allocated to banner advertising
 In general, responsiveness to different media types varies across different consumer
segments; “Hoban and Bucklin (2015) reveal that a consumer’s online responsiveness to
banner ads varies over time as the consumer progresses to different stages of the purchase
funnel. Likewise, Ackerberg (2001) finds support for differential effects of advertising for
experienced versus inexperienced consumers.”; Based on their research, Lobschat et. Al
(2017) draw the following conclusions
o Banner ads: Consumers in earlier stages of the purchase funnel “seem to become
activated by the firm’s banner advertising (…) and are likely to visit the firm’s website
to search for more information. Thus, these consumers should be targeted with
banner ads that provide concrete information about the firm’s current product
offering”
o TV ads: “Given that TV advertising serves the same role of motivating these
consumers to visit the firm’s website, TV ads aired at time slots when mostly
nonrecent consumers are watching should explicitly mention the website and
highlight the information that can be obtained there.”
o “banner ads are effective for both types of consumers, albeit through different
routes”
 Banner ads contribute (1) directly to the objects advertised, and (2) to the brand building in
general
 “For nonrecent online consumers, the success of a banner ad campaign can be gauged by the
number of website visits generated by banner ads, as they are strongly linked to offline
sales.”; “a lack of online response should not be interpreted as an indication of low banner
ad effectiveness because these consumers do show a positive offline sales response”
B. Social Media
= “utilization of social media or social networks to market a product, company, or brand”
Social Media Marketing Strategies
Social Media Marketing
Strategy
Real-time Marketing
Creation and execution of an instantaneous marketing message via
SoMe in response to or during a live event
Video Marketing
Using videos on SoMe to promote and market products/services
Influencer Marketing
 Using an individual to market a brand
 Alignment between brand and individual is crucial
Interactive Marketing
Usage of two-way communication channels to allow interaction / to
allow consumers to connect with the company directly
Consumer-Generated
Usage of customer-generated material and feedback (e.g. consumer
Content Marketing
reviews)
What drives consumer sharing of Social Media brand messages (Ordenes et al., 2018)
 "Consumers are more willing to share brand messages with informational or emotional
content, rather than demands or commands”
o Emotional: e.g. “Fridays are fun!”
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o Informational: e.g. “We have a new product launch this Friday”
o Demands/commands: e.g. “Come to our event Friday!”
On Facebook, rhetorical styles are likely to be shared
“On Twitter, explicit advertising cues (e.g., directive messages, including repetition and
alliteration) will turn consumers’ attention elsewhere
“action images in combination with assertive or expressive messages will result in greater
engagement than action images with directive messages”
WOM
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“Word-of-mouth communication strategies are appealing because they combine the
prospect of overcoming consumer resistance with significantly lower costs and fast delivery”
“We find that WOM referrals have a strong impact on new customer acquisition.”; “The
elasticity for WOM is approximately 20 times higher than that for marketing events and 30
times that of media appearances.”
“The electronic tracking of WOM, along with new member sign-ups, enables us to provide a
concrete and measurable link between observed WOM activity and customer acquisition”
C. Direct Marketing
Direct Marketing Types
Database Driven
Marketing
Direct Response
Marketing
Personal Selling
Usage of databases to derive appropriate communication strategies
 usage of ID codes and cookie data to customize content on
websites
 usage of personalized communications (e.g. birthday mails)
 usage of available data to personalize content (e.g. based on
previous purchases)
 aims to evoke a direct response/action by customer -> strong
focus on activating (e.g. by using coupons)
 includes direct mail, catalogues, and mass media
 appropriateness depends a lot on product
D. Public Relations
= “Public relations is a strategic communication process that builds mutually beneficial relationships
between organizations and their publics”
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objectives: generating publicity, enhancing the general reputation of the company, informing
the public about activities
at the corporate level rather than product/brand level
PR strategies: proactive vs. reactive (defensive)
E. Event Marketing and Sponsorships
Sponsorship Objectives
Event Marketing Objectives
 Enhance company image
 Aim to support certain lifestyles
 At the corporate level
 Brand-name recognition
 Increase company visibility
 Mostly at the corporate level
 Differentiate company/brand from
competitors
In both marketing activities, match between company mission (+ underlying values) and the
sponsored athlete, celebrity, etc. or event is crucial
F. Sales Promotion
Sales Promotions
Discounts &
Allowances
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Promotional pricing
Segmented pricing
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Reduced prices to reward customer responses such as making
volume purchases, paying early, or promoting the product
Discounts: Early-bird discounts, quantity discounts, functional
discounts (=discounts for referrals to friends)
Allowances: “Turn in the old item when buying a new one”
Temporal price reductions
Different prices for different segments
S6 Strategic Impact of Marketing Communication – Money & Measurement
6.1 Money

How much will be spent to communicate?
6.1.1 Types of Budgets
 Percentage of Sales
o Allocations are derived from either
 Sales from previous year
 Or anticipated sales for the next year
 Meet the Competition
o Seeks to prevent loss of market share
o Depends on how much your competitor spends on communication
 What Can we Afford
o Sets marketing communication budget after all the company’s other budget have
been established
 Objective and Task
o Identify the marketing objective (not marketing communication objective!) to pursue
and then calculate the cost of accomplishing each objective
o Communications budget is the cumulative cost of accomplishing each objective
 Payout Planning
o Management establishes a ratio of communications to sales or market share
o Allocate greater amounts in early years to get payouts later
Which budget type is appropriate in which situation?
6.1.2 Allocating Money for Marketing Communications
 Largely depends on the decisions regarding the execution of the marketing communication
 Types of schedules
o Pulsating schedule
 = continuous communications during the year with bursts of higher intensity
at specific times
 Makes sense for products that are (1) used continuously/products of daily
life (e.g. deodorants) and that are (2) used more at specific times of the year
(e.g. summer months)
o Fighting schedule

o
= communications are presented at only peak times and not at al during
other times
 Makes sense for products that are solely used during specific times of the
year (e.g. winter coats)
Continuous campaign schedule
 = spending in level amounts to keep the brand in front of the consumers
repetitively
 Makes sense for products that are used continuously over the year without
peaks (e.g. detergents)
6.2 Measurement

How will the impact of the marketing communication be assessed?
Marketing research objective:
 identify and define marketing opportunities and problems
 generate, refine and evaluate marketing actions to make them more effective
 assess the impact of the marketing communication
Marketing research process:
1
Problem definition
2
Research design development
3
Data collection: manage and implement the data collection process
4
Data analysis: analyze the results
5
Communicating findings: communicate the findings and its implications
2 Research design development: Exploratory vs. Conclusive Research
 design the method/plan for collecting information
 Research Design Process:
o Define the information needed to answer the problem defined earlier
o Decide on the design -> Exploratory vs. Conclusive Research
o Decide on the techniques of understanding and/or measurement
o Construct form for data collection -> See classification of marketing research data
o Sampling method/size
o Develop data analysis

Research Design Classification depends on the kind of information needed for the specific
marketing communication campaign

Exploratory vs. conclusive design
o
o
Exploratory research uses:
 obtain background information
 to define problem areas and formulate hypotheses
 to reduce no. of different ideas in new marketing communication
campaign
 to identify relevant behavior patterns
 to explore sensitive issues (e.g. explore emotions associated with a
brand in the target segment)
Conclusive research:
 Uses:
 To describe characteristics of relevant groups
 To make specific predictions
 To compare findings over time
 To determine the degree to which marketing variables are
associated
 E.g. measure the impact of a marketing communication on sales
 Conclusive design can
 either be descriptive research:
o a prior formulation of specific research questions and
hypotheses exists
o information needed is clearly defined
o Examples: market size, consumer buying power, sales by
geographic region, consumer perceptions of the company,
consumption patterns, consumer responses to price
changes, media consumption habits, traffic-flow of channels
 or casual research
o objective is to obtain an evidence of cause-and-effect
relationships
o Examples: whether the intro of the new brand will increase
market share of the brand; whether the campaign will
increase sales
3 Data collection: Classification of Marketing Research Data
Primary data:
collection of new data
Qualitative data/research:
 Objective is to gain a qualitative
understanding of the underlying
reasons and motivations (e.g. how did
the affective campaign influence
consumer emotions)
 sample: small sample of
nonrepresentative cases
 Collection: unstructured
 Data analysis: nonstatistical
 intended to provide an initial insight
and understanding
Direct (try to get
deep down to
motivations)
Focus
In-Depth
groups Interviews
Indirect (try get
the top of the
mind associations)
Projective
techniques:
 Association
techniques
 Completion
techniques
 Construction
techniques
 Expressive
techniques
Secondary data:
already available
data
Quantitative data/research:
 Objective: seeks to quantify
data and generalize the
results from the sample to
the population of interest
 sample: large number of
representative cases
 Collection: structured
 Data analysis: related to
measurement and statistical
analysis
 Recommends a final course of
action
Descriptive
Survey
Data
Causal
Obser- Experimental
vational
& other
data
3 Data collection: Focus groups
 = discussions conducted by a trained moderator in a non-structured and natural manner with
a small group of participants
 6-10 people who discuss with each other -> members “feed off” each other
 Objective is similar to in-depth interviews; aim is to uncover deep lying associations and
feelings
 Drawback: members may feel intimidated, shy and not reveal anything significant -> try to
compose a homogeneous group which allows a relaxed, informal and comfortable setting
 Use of storyboards, mood boards, products, advertisements, films, music, websites to
stimulate discussion
 Use of audiocassettes, videotapes and notes to record the discussions
 1,5 – 6 hours
3 Data collection: In-depth Interviews
 Unstructured, direct, personal interview in which a single participant is questioned by an
interviewer
 Objective: uncover underlying motivations, beliefs, attitudes and feelings on a topic (the
marketing communication plan); affective associations which lie deep within consumers’
minds and are difficult to be assessed from the outside

Techniques:
o Laddering technique:
 interviewer develops a mental map of consumer’s view toward a particular
product
 this is done for several homogeneous consumers
 results in a laddered map which represents the link between products and
consumer’s perceptions
 enables to understand how consumers translate attributes through their
personal meanings
 focus on motives behind the consumption
 focus on cognitive structure (means-end chain: attributes .-> consequences > values)
 appropriate for HF case as it refers back to the means-end-chain concept
with the segment’s desired values and the product attributes
 measure if consumers establish the cues in the same way as we did
in designing the marketing plan
 did the product attributes help to realize the desired values/does the
consumer believe they do so
o Zaltman metaphor elicitation technique:
 Interviewer creates a mental map of consumer’s views towards a
communication
 Interviewer asks interviewees to bring in pictures that reflect their thoughts
about a communication (method uses images and metaphors to reveal how
consumers think and feel)
 Less appropriate for HF case because the segment’s desired values are not
obviously linked to metaphors or images -> technique is not better than
laddering
3 Data collection: Projective Techniques
 Unstructured, indirect form of questioning that encourages respondents to project their
underlying motivations, beliefs, attitudes, or feelings regarding the issues of concern
 Recipients are not really aware of the fact that they are part of a research -> facilitates to
uncover the processes that go on within their subconscious mind
 Types: word associations, sentence completion, cartoon constructions, role playing
 Is more appropriate to uncover attitudes which are on top of the mind of consumers’ minds
(spontaneous cues) and less appropriate to uncover associations which are located deeply in
consumer minds
3 Data collection: Survey Data
 Structured questionnaires
 Sample of a target population
 Most questions are fixed-response alternative questions -> participants are asked to select
from a predetermined set of response
3 Data collection: Observation Method
 Recording the behavioral patterns of people in a systematic manner
 Can be
o Personal: researcher observes actual behavior as it occurs (e.g. no of people entering
store)
o
o
Electronic (eye-tracking, neuromarketing, psycho-galvanometer, voice-pitch analysis,
response latency)
Or in form of a trace analysis e.g. through web cookies (traces, evidences, past
behavior)
3 Data collection: Experimental Research
 Used to test a causal relationship between variables
 Procedure:
o Determine test units
o Determine independent variables to be manipulated
o Determine dependent variables to be measured
o Determine how to control for extraneous variables
4 Data analysis: Message evaluation techniques
Advertising Tracking
Research
Is what?
Conducted by
famous MR
companies such as
Nielsen IAG or
Millward Brown in
the form of
continuous report
cards
Used
when?
After campaign
launch
Procedure
respondents are
shown a brief
portion of the ad
with the brand name
removed
What is to
be
measured
brand and ad
recognition, unaided
brand awareness,
memorability,
likability, unaided
and aided message
14
Copytesting
Neuromarketing
Online
Evaluation
Metrics
At the final stages of
campaign
development;
One form: Emotional
Reaction Tests such
as Warmth Meter
(used specifically for
affective
advertisements14)
Evaluation of main
message and format:
brand message and
image, memorability
of ad and brand,
enjoyability of ad,
Ad design
Warmth Meter provides insights on which ad sections elicit positive and which ad sections elicit negative
emotions -> reveals how the audience shows emotional reactions (can also be used to investigate differences in
emotional responses between target audience and total audience)
recall, unaided and
aided campaign
recall
Insights
provided
what the ad
communicates, how
well the ad
communicates the
intended message,
potential response,
persuasive power of
ad, engagement of
the viewer with ad
and brand
 insights about
campaign
performance in
comparison to
previous
campaigns and to
competitors
 insights about
the point at
which consumers
stop giving
attention to
campaign
Evaluation
Brainwave activity
Associated with high
costs but very
valuable and thus
recommended in
order to test the
campaign before the
launch
Does not rely on
self-reporting and is
hence a great
indicator of
respondent’s true
reaction
Online/Digital Advertising Evaluation Metrics:
Click through rate
(CTR)
Length of engagement
Dwell time
Dwell rate
Bounce rate
Time on page
Impressions
Hits
No of visitors
New vs. repeat visitors
15
No of clicks on ad / total impressions of ad
Refers to SEO: Length of time a person spends looking at a webpage after
they’ve clicked a link on a SERP page, but before clicking back to the SERP
results15
measures the proportion of users who physically touch the ad
percentage of visitors who visit one page and then click to any other page
on or off the company’s website;
For a weather forecast site, a high bounce rate is a good thing as it
indicates that consumers quickly found what they were looking for
time a user spends anywhere on your page before leaving
No of times your content is displayed
Number of visits
Is relevant in SEO strategy: If you operate a weather site, it may take less than five mins for people to get
what they want from a link so that dwell time would naturally be low
Page views
Page views per visit
Entry and exit pages
Cost per click (CPC)
Conversion ratio (CR)
AOV
Revenue per visit
(RPV)
Sales Funnel Efficiency
Social Media Volume
Metrics
Social Media
Engagement Metrics
Social Media
Conversion Metrics
Price you pay for each click
Percentage of customers who take your desired action
Average dollar amount spent each time a customer places an order
Amount of money generated each time a customer visits your page
Measure the level of traffic to SoMe sites and no of visitors to SoMe
sites: views, likes, new and lost subscribers/followers, location, time/day
of visit
Show the level of engagement with SoMe sites and level of involvement:
mentions, shares/reposts/retweets, likes, comments, time on page, visits
per day or month, bounce rate
CTR, CR, AOV, RPV
Retro 07-Oct 2020
Theoretical framework for marketing communication plan is the 6M model.
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Background information
o Tie background information with why the brand needs a new marketing
communication plan
o strategic intent: why do you have to come up with a new marketing communication
plan (think of the plan’s impact on the brand)
o Strategic positioning of the brand
o Overall strategy -> setting the stage for mission
which component of the attitude do you intend to change? Cognitive component (mission
component 1 disseminate information) and as a result affective responses to the brand (PCB
hierarchy of effects: cognitions – affect – behavior order)
market: focus on result of the segmentation (the target market) rather than the
segmentation process
o does market make sense with regard to the strategic positioning of the brand
execution – message:
o visualize (print ad in appendix) or storytell (what will the consumer see, how will his
experience look like: busy work woman scrolls through her SoMe feed in the evening
and sees a post of so of her social network with whom she can identify…)
o elaboration likelihood model
o why enhancing motivation to attend message and process information
o Coca cola: message = taste the feeling -> they communicate different stories which
convey the message
o In our exam: outline one potential story / one form of execution
Execution – media:
o Which media channels are most important (focus on these) and which can be used as
an addition
o HF is known as a digital brand -> communicate via digital media
o Stay with the specific story to present the media which will be used to communicate
this specific story
impact – money:
o which associated costs are to be expected considering the selected media
(budget/costs must reflect the individual components of the media mix)
o how long will you engage in the marketing plan (1/2 years?)
o e.g. how often will TV ads be changed
impact – measurement:
o must be consistent with mission (and relate to all components of the mission)
o research problem: what is/how are we going to measure the impact of our marketing
communications plan (in our case: on the attitude)
o everyone will use conclusive research design (<-> exploratory)
 @Gülen: doesn’t exploratory research makes sense in order to explore the
feelings within the target segment?
o Indicate the research process but no need to precisely explain how, for instance, the
survey will be designed etc.