•Marketing Communications Mix ising and marketing objectives. Integrated Marketing Communications mpany carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. Developing Effective communication Step1: Identifying the target audience Step2. Determining communication objectives-(6 buyer readiness stages: Awareness •Knowledge •Liking •Preference •Conviction •Purchase Step3:Designing a message: AIDA Framework,attention,intrest,desire,action Step4:Chossing media-Personal(face-to-face,mail,world-of-mouth)-Non personal (media,events,atmosphere) Step5: selecting the message source Step6:Collecting feedback Setting the Total Promotional Budget Budget is set at a level that a company can afford -of-Sales Method Past or forecasted sales may be used -Parity Method Budget matches competitors’ outlays Objective-and-Task Method Specific objectives are defined Tasks required to achieve objectives are determined Costs of performing tasks are estimated, then summed to create the promotional budget Setting the Overall Promotion Mix nature of each promotion tool and the selected promotion mix strategy Advertising Reaches large, geographically dispersed audiences, often with high frequency •Low cost per exposure, though overall costs are high •Consumers perceive advertised goods as more legitimate •Dramatizes company/brand •Builds brand image; may stimulate short-term sales •Impersonal; one-way communication Personal Selling Most effective tool for building buyers’ preferences, convictions, and actions •Personal interaction allows for feedback and adjustments •Relationship-oriented •Buyers are more attentive •Sales force represents a long-term commitment •Most expensive of the promotional tools Sales Promotion May be targeted at the trade or ultimate consumer •Makes use of a variety of formats: premiums, coupons, contests, etc. •Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales •Stimulates quick response •Short-lived •Not effective at building long-term brand preferences Public Relation Highly credible •Many forms: news stories, news features, events and sponsorships, etc. •Reaches many prospects missed via other forms of promotion •Dramatizes company or benefits •Often the most underused element in the promotional mix Direct MarketingMany forms: Telephone marketing, direct mail, online marketing, etc. •Four distinctive characteristics: •Well-suited to highly targeted marketing efforts Promotion Mix Strategies Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. -through an agent(Avon) Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products. – directly to the final consumer-(Nike) Skimming Price- Apple Iphone Penetration price-walmartBundle Pricing-Video games+Play stations Competition based pricing-Coke and Pepsi,Windows-Apple Product line price:severel different version of a similar product-Audi A3 and A6(same product,various model) Psychological:Lexus is a luxury vehicle of Toyota Corporate identity change:Nickelodeon,Guitar Hero-new logo Importance of CI: •Differentiation •Evaluation •Stability •Means to run an enterprise •Brings value to an enterprise •Quality setting Visual Elements of cl Logo •Colour •Letter type •Letter, fax, margins •Buildings, offices, firms, •Uniforms •Cars Reasons of failure: Lack of involvment at all levels Lack of internal acceptance Lack of external acceptance Lack of management commitment Cost and resource constraints Pour process management Unrealistic expectations and objectives Brand A brand is a distinguishing name or symbol intended to identify goods or services of a seller and to differentiate those goods or services from competitors. Brand is created to establish and increase customer loyality with products and services Purpose of brand:inspire,motivate,connect,simplify,inform (Coke-Pepsi blind taste test,identified taste test) Experience!!!!!!!!!-Harley Davidson-accountant-dress in black leather-have people be afraid in town-FEELING Cult branding = Techniques used to generate devotion,motivations, desires and attitudes of customers are key. Question - why do you need to define your brand? Answer: •to ensure that you have a fresh, compelling and competitive proposition •to ensure that your brand works strongly at an emotional as well as at a rational level •to ensure that your brand can be delivered consistently and in full by all its stakeholders Examples of central organising thoughts would be: •BMW: competitive achievement •Chrysler: cars that dare to stand out •Coca-Cola: refreshing the mind, body and spirit •Federal Express: guaranteed, trackable, delivery on time •Mercedes: technical innovation •Virgin: more fun, more value Slogen: Nokia-connecting people, L’Oreal because you are worth it McDonalds-Im lovin it,Nike-just do it Some brands have real personalities:Virgin:Sir Richard Branson Association: Tiger Woods-golf, Michael Jordan-basketball Values of the brand Benetton-social issues-campaign for equal opportunities Ikea-family values Story of HP: H-P tells the story of Bill and Dave and the factory in the garden shed where the door was always open (if there ever was one) Hard benefits-low cost airline (level of emotional and rational decisions) Icon brands:grows rapidly,becomes outdated and declines and then bounces back on the next cycle of history.Mr.Clean,Olds spice,Marlboro(cigarette for women, then to increase among men:cowboy80-90s quick decline 3Marlboro models died of lung cancer. In contrary still lives on in pop culture. Personal Construct Theory •This theory argues that individuals develop theories (constructs) about how the world works, what values are to be espoused, and how personal success is achieved. laddering, a good interviewer can begin to discover individuals' core constructs by starting with their peripheral ones. Attribution theory •- this theory argues that people ascribe characters to the people they meet based on a very few clues around which they spin elaborate stories. 1. On-going sales & profits •Profit from income from loyal customers because: you protect your current level of sales to those customers you get additional sales for other products/services to those customers you get recommended by loyal customers, and so attract new customers loyal customers value you more and are therefore prepared to pay a premium for your products/services Capital Growth Co-Branding Two companies join to create a new product carrying both their brands.(Best westerns hotels+Harley davidson,Nike+Apple,Fiat+Mattel,Bacardi-Coca-cola,Jack Daniels+T.G.I Fridays,Mastercard+Virgin) Brand: A name, term, sign, symbol, or design (or some combination thereof) used to identify the products of one firm and to differentiate them from competitive offerings. Tradework: A brand that has been given legal protection and has been granted solely to its owner.(Starbucks logo,Burberry check pattern) National brand: products that carry the name of the manufacturer.( Philadelphia cream cheese, Rama, Margarine) Private brand:products that carry the name of the seller (CBA cream cheese, Tesco milk) Generic brand: brand name over which the original owner has lsot exclusive claim because all offerings in the associated class of products have become generally known by the brand name. (kleenex,jeep,xerox) Generic Goods: „no name” consumer products that are distinguished by the absence of the brand name (toilet paper,dish soap) Brand Recognition / Equity - awareness, loyalty, quality, emotion •Brand Preference / Loyalty - the degree to which customers are committed to further purchases eg. I will always buy Reebok (Brand Insistence) •Brand Awareness -your product is the first that comes to mind in a certain product category eg. jeans-Levi’s, walkman - SONY •Brand Association - the link to favourable images, celebrities, geographic regions ie. VW - Germany, Bailey’s – Eire, Jordan – Nike, BMW Z3 - 007 Design is a creative activity, aiming to identify the characteristics of products (inside-outside) Design Requirements: Technical (optimal usage) •Economical (price vs. value) •Psychological (status) •Aesthetic (conformity to forms in the given culture) Trade (create trust; easy to place) •Production (maximal profit, conformity to persent production methods/capacity) Types of design •Styling (fashion; form vs. usability) •Product design •System design •Corporate design Types of packaging •Transport •Collection •Display collection •Group •Consumer advertising is:It is a non personal, influencing communication with an identified sender about Products,Services and Ideas that is published in several media Advertisingby its process: Introductory •Reminding :Coca cola •Re-positioning :Dell in China,P and G’s oil of olay-olay,Maruti 800,Coca cola-took out the coke(drug) •Providing information Media: are communication channels that exist independently from the certain message, but can be resorted to impart our own messages Characteristics of Media •Prestige of media •Situations related to media •Technical parameters of media •Consumer consistence •Targeting Costs of communication •Flexibilty of media •Time scale •Legal aspects Prestige of Media •Trust •Source-effect •Size vs. Credibility The objective of advertising is to increase, influence and co-ordinate consumer demand. Promotion-mix Communication aim Length of impact Primary target group Advertising Short Consumers Public Relations Increase sales Image creation Image creation Long Average opinion setters Personal Selling Selling Mid / Long Organisational Customers / Consumers Sales Promotion Increase sales Short / Mid Potential consumers Pioneer advertisements… •In general are introducing a new product range. •With products providing decreasing sales data (milk, wine) the company can help by using pioneer advertisments. (Apple Iphone was first released it had 100% of the market in touch screen phone,now there are other phones that has joint the same market.) The competitve advertisements…Gladly used, Regulated in most countries. Illegal is some countries. Rules that are not written are important. Quality standard.Convince consumer that the message is correct. (Mac versus Pc, Pepsi versus coke,presidential candidades,) 15 - 233 Characeristics of daily press Advantages Prestige high for political/actual Situation Disadvatages low for tattle public transport 5-15 minutes Techincal characteristics high frequency low printing quality, short message Audience crowds Targeting local targeting, inside media targeting large deviation, low secondary readinng unable to reach certain groups Costs Flexibility Life span Legal affairs low quick, flexible short/ one never enough limitations - front page 15 - 234 Characeristics of perodicals Prestige Situation Techincal characteristics Disadvatages Advantages changing changing favourable good printing and paper quality Audience wide range of readers, secondary reading Targeting by content, theme, smaller deviation Costs possibly low costs per capita georaphically not concentrated Flexibility Life span l longer than daily press, can be reviewd Legal affairs Costs Flexibility Life span Legal affairs limited actuality, limited flexibility reach developes slowly front cover Characeristics of professional press Advantages Prestige Situation Techincal characteristics Audience Targeting high costs Disadvatages high favourable good printing quality larege secondary reading limited number of readers perfect targeting possibility, low deviation high per capita costs limited fexibility long life span, can be reviewd front cover Characeristics of free press •Help to find information •Concentrated information •Fixed purchasing ideas •Serching discounts •Short time to get to know the certain market Outdoor means are•…placed outside buildings in order to show ads. Characteristics of Outdoor Advantages Disadvatages Prestige favourable Situation frequent contact, people on PT, strong summer medium Techincal characteristics large, variable, good supporting medium Audience large Targeting local Costs low per capita costs Flexibility Life span Legal affairs Types of Outdoor •Permanent •Altering •Moving – non-moving not too high prestige superficial, infavourable simple messages, impersonal mixed limited places (law) high production costs, efficiency hard to measure/evaluate limited long authorisation procedure, limitation Categories of Outdoor •Posters :2 seconds Billboards ,2 dimensions ,3 dimensions ,City-lights,Rounders,Lamppost ,Traditional bills •Painted walls, boards Longer span than bills,•Partition-walls,Canvas •Illuminating means Some only at night •Neon •Light press •Mega screens •Laser •Lighted posters •Street furniture Benches •Handrails •Flags •Bins •Molino Vehicle ads Air ads • Air-Balloons •Airplane-transparencies •Company balloons - figures Characteristics of the radio Advantages Disadvatages Prestige high prestige, human voice Situation able to reach travelling crowds/public background radio listening, other noises Techincal characteristics it is a "theatre for fantasy", good missing visuality, not able to show supporting medium and provide data Audience broad target group high deviation Targeting by chanel, by programs, by geography Costs low production and broadcasting costs high frequency needed Flexibility very flexible Life span not to search back for target group, it is gone with the wind Legal affairs limited time, and restrictions 15 - 261 Characteristics of Television Advantages Disadvatages Prestige high prestige Situation favourable, most attractive for humans background televisioning, missing signal Techincal characteristics very good possibilities, complex effect Audience broad target group high deviation Targeting by programs, by geography Costs possibly low per capita most expensive medium Flexibility limited flexibility, saturation Life span easier to remember, multiple effect not to search back for target group, it is gone with the wind Legal affairs limited time, and restrictions Characteristics of Movie Advantages Prestige Situation Techincal characteristics Audience Targeting Costs Flexibility Life span Legal affairs very favourable, not to switch off Disadvatages not credible disliking towards ads very good possibilities, complex effect young people, good to reach limited number of people visiting movies by films, by geography deviation favourable low costs, audience high per capita costs, no number guarantee developed monitoring system limited good remembering effect some freedom alcohol at night 15 - 266 Types of Marketingcommunication Films •Ad films •Product shows •Reference films •Good-will films •PR films By content ration Justification (person important) Employee of a company Famous person Product user HOW TO make a visual content? By providing n appearing (Coca Cola-Santa Claus) (Louis Vuitton,Nike-their products fit in with various sport life styles) (Nike-regular people using their products) (HP-open door) Methods (declared yourself campaign,fair trade) ( Tricks –whiskas,pedigree –durex,vicoria’s secret (Snickers) Characteristics of Internet Advantages Prestige Situation who is not present >>> does not exist, high at certain sites very favourable (at home, high attention) Techincal characteristics very good, anything can be made Audience educated, high income, young Disadvatages low at certain sites very easy to switch old computers, slow, expensive access unable to reach broad audience Targeting very good, improving, by content Costs Flexibility Life span low good flexibility Legal affairs short, must change continuously strong self regulation, own laws, hard to regulate legally some freedom Below the line involves more direct content with customers usually not commision based but payed through flat fees. Product is promoted in media other than radio,tv,billboards,print,film and the internet. E.g.:direct mail campaigns,catalogues-(Avon) POP-point of purchase:chewing gum Above the line traditional mass media advertising that is conducted in newspapers, on television,radio and the internet Direct Marketing… …is an interactive tool that can be applied at any fields of marketing by using different means of communication in order to reach an impact where the number of chioces and purcases are to measure. Tools of DM •Telefax •Inbound •SMS •Telephone marketing •Outbound Sales Promotion… •…is a mixture of marketing communication means that’s aim is the immediate sales, by providing an additional advantage to the consumer/customer for a limited time. Characteristics of SP •Different / Non-usual offer •Limited time scale •Not to use alone •Better targeting •Cost efficiency •Tailored to the PLC 15 - 302 POP ticks •Show cases •Product at eye-height •„Bottle-necks” •End of shelves •Crossings •Cashier •Display Event Marketing Step1:Analysing the current situation •Selecting invited ones •Theme !!! •Selecting place (image…) •Selecting date •Responsible for organisation •Attrap •Signs •Wobbler •Bills •Flags •Vignettes •Floor ads/signs •Furniture Step 2 •Invitation cards •Presents? •Scenario •Instructing organisers •Personell •Technical support •Catering •Plan „B” (other place) Step 3 •Scenario based actions •Importance of the Key Organiser •„Renovation” 15 - 312 Step 4 •Evaluation 15 - 315 Characteristics of Fairs and Exhibitions Fairs Product Consumer goods Exhibitions Personell Buyers Traders Consumers Production, investment, consumer goods Producers, importers Business people, Professionals Type Product types Selling Multiple Making contracts Limited groups of products, specialised Quality of goods low, medium high Sponsoring •…is a monetary investment in an activity in return for business potential (Forma1-Redbull) Public Relation: management function that is planned and permanently adopted to reach understanding and trust inside the organisation and staff just like in the public, consumers, customers Campaign is a… •Concentrated action to influence the market (environment). 5M-Method •Mission •Money •Message (USP, SWOT) •Media •Measurement Media Planning is… •…the part of the campaign planning where – based on the ad aims and the circumstances – they define the media aims, the media strategy, the used media and the time schedule in the given campaign. Media indicators:medium:RPI-reach per issue BR-broadest readership Rating-TVR,AMR Campaign:RCH-reach(COV coverage) Frequency-OTH-OTS opportunity to hear/ see AFF-Affinity AFI-affinity index GRP-gross rating point GI-gross impression Cost efficiencyCPT cost/thousand CPRP/CPP-cost per rating point,cost per point Players of the Media Market •Ordering company •Owner of Media •Research companies •Producers of equipment •Media agencies •Creative boutiques