Marketing The Eskimo has fifty-two names for snow because it is important to them Communications strategy Anonymous Dr. Paurav Shukla 1 Objectives Why communicate? The Communications Process Developing Effective Communications Deciding on the Marketing Communications Mix Managing and Coordinating Integrated Marketing Communications Inform Persuade Image creation (_) Reassure 3 Communication techniques The communications mix Advertising Sales Promotion Public Relations Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Print & Broadcast ads Outer packaging Packaging inserts Motion pictures Brochures & Booklets Posters and leaflets Directories Reprints of ads Billboards Display signs POP displays Audiovisual material Symbols and logos Short-term Incentives to Encourage Trial or Purchase. Protect and/or Promote Company’s Image/products. Personal Selling Personal Presentations. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. 5 Dr. Paurav Shukla 4 Sales promotion Contents, games, sweepstakes, lotteries Premiums & gifts Sampling Fairs & trade shows Exhibits Demonstrations Couponing Rebates Low-interest financing Entertainment Trade-in allowances Trading stamps Tie-ins Public relations Personal selling Press kits Speeches Seminars Annual reports Charitable donations Sponsorships Publications Community relations Lobbying Identity media Company magazine Events Sales presentation Sales meetings Incentive programmes Samples Fairs & trade shows Direct marketing Catalogues Mailings Telemarketing Electronic shopping TV shopping 6 1 Marketing Elements in communication process Message Problems Selective Attention SENDER Message Decoding Encoding RECEIVER Media Selective Distortion Noise Feedback Selective Retention Response 7 Plutchik’s model 8 Plutchik’s model 9 Effective Communications Factors affecting communication 1. 2. 3. 4. 5. The greater the monopoly of the communication source over the recipient, the greater the change or effect in favour of the source over the recipient. Communication effects are greatest where the message is in line with the existing opinions, beliefs, and dispositions of the receiver. Communications can produce the most effective shifts on unfamiliar, lightly felt, peripheral issues, which don’t lie at the centre of the recipient’s value system. Communication is more likely to be effective, where the source is believed to have expertise, high status, objectivity, or likeability, but particularly where the source has power and can be identified with. The social context, group, or reference group will mediate the communication and influence whether or not it is accepted. John Fiske & John Hartley, Reading Television (London: Methuen, 1980), p.79. 11 Dr. Paurav Shukla 10 Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Awareness Knowledge Liking Preference Conviction Purchase 12 2 Marketing Response Hierarchy Models Stages Cognitive Stage (Learn) Affective Stage (Feel) Behavior Stage (Do) AIDA Model a Hierarchy-ofEffects Model b InnovationAdoption Model c Communications Model d Awareness Reception Cognitive response Knowlege Interest Liking Learn – Feel – Do Do – Feel – Learn Learn – Do – Feel Exposure Awareness Attention Interest Attitude Evaluation Intention High involvement – High differentiation High involvement – No/little differentiation Low involvement – No/little differentiation Preference Desire Conviction Action Purchase Trial Adoption Behavior 13 Step 3. Designing the Message (__) Message Content Rational Appeals Emotional Appeals Moral Appeals (__) Message Structure Draw Conclusions Argument Type Argument Order (__) Message Format Layout, Words, & Sounds, Body Language Message Source Expertise, Trustworthiness, Congruity 14 Step 4. Select Communications Channel Personal Communication Channels Nonpersonal Communication Channels (__) (__) 15 16 Step 6. Decide on Communications Mix Step 5. Establish the Budget Advertising Public, Pervasive, Expressive, Impersonal Sales Promotion Affordable Communication, Incentive, Invitation % Of Sales Public Relations & Publicity Credibility, Surprise, Dramatization Competitive Parity Objective & Task Personal Selling Personal Confrontation, Cultivation, Response Direct Marketing Nonpublic, Customized, Up-to-Date, Interactive 17 Dr. Paurav Shukla 18 3 Marketing Factors in developing promotion mix Step 7. Measure Results Type of Product/ Market Step 8. Manage the IMC Process Buyer/ Readiness Stage Push vs. Pull Strategy Product Life-Cycle Stage 19 Push Versus Pull Strategy 20 Concluding IMC Producer Marketing activities Intermediaries Demand Marketing activities End users Push Strategy Marketing activities Producer Demand Intermediaries Demand End users Pull Strategy 21 Review 22 Personal Communication Channels The Communications Process Developing Effective Communications Deciding on the Marketing Communications Mix Managing and Coordinating Integrated Marketing Communications 23 Dr. Paurav Shukla … a Concept of Marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – for ex. Advertising, direct response, sales promotion, and PR – and combines these disciplines to provide clarity, consistency, and maximum communications’ impact through the seamless integration of discrete messages Identify Influential Individuals and use them Create opinion leaders by supplying them products at attractive terms Work through influential community individuals Use testimony advertising with influential people Design ads with high conversation value Develop word of mouth referral channel Establish electronic forum 24 4 Marketing Objective & Task Method Buyer Readiness Stage Establish the market share goal Determine the % of population that should be reached by advertising Determine the % of aware prospects that should be persuaded for trial Determine the number of ad exposures per 1% trial rate Determine the gross rating point to be purchased Determine the ad budget on the basis of GRP Advertising Personal Selling Sales Promotion Awareness High Low Low Comprehension High Low Low Medium High Low Low High High Medium High High Conviction Ordering Reordering 25 26 PLC Stage Advertising Introduction Personal Selling Sales Promotion Medium V. High High Growth High Medium Low Maturity High Medium High Decline Medium Medium High Dr. Paurav Shukla 27 28 29 30 5 Marketing 31 32 People no longer buy shoes to keep feet warm and dry. They buy them because of the way the shoes make them feel – masculine, feminine, rugged, different, sophisticated, young, glamorous, “in”. Buying shoes has become and emotional experience. Our business now is selling excitement rather than shoes. Francis C. Rooney 33 Dr. Paurav Shukla 6