Mark 432 - Marketing Communication
Lecture 1/2/3 Introduction to Marketing Communications (Advertising and Promotions)
1. Lecture Objectives
• To be able to describe how promotions relates to the marketing mix.
• To be able to define the seven main elements of the promotional mix.
• To be able to describe the relationship between consumer needs and promotions.
• To be able to describe 3 ways of communicating.
• To be able to describe why we want to take an “integrated” approach to marketing
communications.
2. Why is so much money wasted on advertising and promotions?
- Over 80 cents of every dollar spent on advertising and promotions is wasted.
- Managers often believe that we can create needs.
- Of those who are successful (20%), successful managers try to discover unmet needs
and meet these needs better than the competition.
- Successful managers “think differently”.
- Marketers can, however, influence the brand that people select.
- Why do campaigns fail?
- Fail to effectively “communicate” (Ex. Telus campaign)
- Marketers/Advertisers believe they can create needs.
- Many marketers are stuck in the sales era.
3. How do companies compete? What is the secret to success?
4. Does advertising create needs, wants and desires?
- Body Images: Being fat symbolizes wealth, not beauty.
4. All products are a means to an end. The “end” is the satisfaction of needs.
- Most of these needs are subconscious.
- We buy these products to satisfy some sort of need (“end”).
- Maslow’s Hierarchy: We satisfy needs in a specific order.
- Physiological, Safety/Security, Social, Ego, and Self-Actualization Needs.
5. Marketing Mix
- PRODUCT: Core Product (safety features, durability, size, features), Packaging,
Warranties/Guarantees.
- PRICE: Financing, Credit, Trade-ins, Volume Discounts, “No Money Down”
- PLACE: Location, Time Utility, Delivery Service
- PROMOTION: Need for information that: Helps consumer make an informed decision,
and help them reduce perceived risk.
QUESTION: What element of the marketing mix is driving sales for Coke? BMW?
Viagra?
- PRODUCT: Core Product, Packaging, Auxiliary Services
5. Types of Needs:
Biological – Food, Water, Sex, Sleep, Warmth, etc.
Psychological – Love and companionship, self-respect, prestige/social image, selfactualization, safety, variety/stimulation, cognitive stimulation, etc.
Functional – Price, Product Design, Distribution, Transportation, Shelter, Clothing,
Money, etc.
* You don’t sell the features, you sell the benefit that the features satisfy*
6. The Promotions element of the marketing mix is the “communication function” of
marketing.
- Personal Communication, media, etc. are all forms of mediums that carry a message.
- Promotion is NOT about selling, it is about SELLING (by satisfying unmet needs).
7. Three ways in which we communicate:
Method 1: Verbally (Ex. Spoken, text, etc.)
Method 2: Nonverbally (Ex. Body language, etc.)
Method 3: Symbolically (Ex. Shapes, colors, etc.)
8. Promotions are communications that:
Creates awareness about how a company’s products and services can satisfy the
customer’s needs, wants and desires. Communications also aim to shape beliefs and
attitudes.
- The communication process is managed in a manner to:
Create awareness (synthesize multiple beliefs together)Create beliefs (5-9
beliefs in the development of most attitudes) Create attitudes  Persuade
behaviorRemind (keep company in the consumers evoked set. Ex. If asked what kind
of phone companies you would choose, the evoked set would be the companies that
naturally come to mind).
9. The seven main elements of the promotional mix include: Each performs a specific
function.
Advertising: Great for mass communication, but is highly regulated. (Ex. Helium
inhalation, dangerous). Is any paid form of non-personal communication about an
organization, product, service, or idea by an identified sponsor.
- Paid form of communication and is carried in a medium that is not owned by the
advertiser (Ex. Advertising in the newspaper or magazine).
- Advertising is not a persuasive medium. Consumers do not believe what they are
told in commercials, etc.
- On the Hierarchy of Effects model
(AwarenessBeliefsAttitudesBehaviour), it is strong at developing
“Awareness” but not in developing “Beliefs” and “Attitudes”.
Direct Marketing: Old-form of promotion. Messages are sent directly to the audience.
- A system of marketing by which an organization communications directly
with consumers to generate a response and/or transaction. Ex. Mail,
Telephone, Brochures, Letters, etc.
- Requires a database.
- Consumers can process messages at their own rate (as opposed to
commercials, where consumers only have 30 seconds to process).
Interactive/Internet Marketing: A variety of media that allows the consumer to interact
with the source of the message.
- Great for storage of information, but tricky to attract consumers to website.
Sales Promotion: Promotional activities that communicate, if you buy now you will
receive extra value.
- Extra value may come in the form of a price discount, etc.
Publicity: Publicity refers to non-personal communications regarding an organization,
product, service, or idea not directly paid for or run under an identified sponsor.
- Not highly credible, but can persuade consumers to develop attitudes.
Public Relations: Programs that are designed to manage a company’s corporate image to
earn public understanding and acceptance.
- Ex. Ronald McDonald Charity House is used to generate public goodwill
towards the company.
- Is not generally a persuasive method of developing attitudes and beliefs because
consumers put their needs first, “what’s in it for me?”
Personal Selling: Involves person-to-person communication with a prospect. It is a
process of developing relationships; discovering customer needs; matching appropriate
products with these needs; and communicating how the company’s products/services can
satisfy these needs.
- Most persuasive method at developing beliefs and attitudes amongst consumers.
- Very persuasive because you can assess and give information relevant to
consumer needs.
- However, cannot reach a large audience at the same time.
10. Why is it that we take an “integrated” approach to marketing communications?
• Communication objectives often need to be sequenced to create awareness, shape
beliefs and attitudes.
• Different mediums (elements of the promotional mix) may be required to create
awareness, develop attitudes and persuade behavior.
• Problem Recognition  Information Search  Evaluate Alternatives  Purchase
 Post Purchase Evaluation.
o High-involvement purchases are high-risk.
o Purchasing patterns must match selling patterns.
o Problem Recognition
 Awareness of economic cycles. Ex. Economy is booming, but
down the road may go down.
o Information Search
 Give information that creates risk for your competitors in the
minds of your consumers. Consumers move away from risk. Ex.
Business MBA program at UofA does not accept graduates from
Grant Mac business program, UofA students may make higher
salaries, etc.
o Evaluate Alternatives
 Give information that helps consumers evaluate alternatives.
 Communicate perception of value for your company to consumers.
 Value=Benefit/Price
 Incentives? Bonus offers, etc.
o Post Purchase Evaluation
 Reduce buyer’s remorse/cognitive dissonance.
11. Definition: Integrated Marketing Communications - The practice of unifying all
marketing communication tools from advertising to personal selling to packaging – to
send target audiences a consistent, persuasive message.
- Ex. Maytag machines. Advertising campaign shows repairman that has no work to do
because the message portrays Maytag machines never break down. But then offer
purchase of maintenance program. Inconsistent messaging!
12. Summary
1. Marketing is about creating a marketing mix that satisfies the target market’s needs,
wants and desires (marketing is about selling).
2. Promotion is a method by which we communicate with consumers how our products
and services will satisfy their existing needs, wants and desires (promotions is about
communicating).
- Increase risk of miscommunication, if symbolically.
3. Efficiency in promotion means gaining maximum impact or exposure at minimum cost
(most bang for buck). We accomplish this by taking an integrated and sequential
approach to marketing communications.
Additional Notes
Understanding Consumer Needs
All human behaviour is to satisfy unmet needs.
The following section provides three key considerations for understanding consumer
needs and the needs assessment process.
1. Consumers Are Not Always Aware of Their Needs.
Consumers often have latent needs (sometimes called a dormant need). A latent need is a
need that is present, but not currently being thought about by the customer. For example,
a person may have a need for more calcium in their body. Yet if asked if they have a
calcium deficiency they would probably say, “I don’t know.” It is the same with a
homeowner who has poorly insulated windows. If you asked the homeowner if they have
a problem with heat leaking out through poorly insulated windows they may say, “I don’t
know.” The main point is, when a consumer has a latent need, part of the needs
assessment process will be to create an awareness of potential latent needs.
2. Consumer Needs Change Over Time.
Second, it is important to note that consumer needs change over time.
A family may have purchased a minivan because they have a need to haul two adults,
four children, a family dog, and groceries at the same time. When the children become
adults and leave home mom and dad no longer have a need to carry six people and
additional cargo simultaneously. Therefore, as a person’s needs change, so too will the
products that they choose to satisfy those needs.
3. Consumer Need for the Product Versus Consumer Need for the Benefits the Product
Creates.
Salespeople often make the mistake of trying to assess whether the customer has a need
for the product being sold. Remember, consumers do not have a need for a product per
say, they have a need for the benefit the product creates. For example, if a homeowner
was asked if he had a need for new windows the response might be, “I have no broken
windows; therefore I do not need new windows.”
The benefits of new windows could include: lower monthly heating bills (due to less heat
loss), greater comfort (house is warmer in winter and cooler in summer), reduction of
condensation on window and a more attractive image.
Therefore, what the salesperson wants to assess is not whether the homeowner has a need
for new windows, but rather does the homeowner have a need for lower monthly heating
bills, greater comfort, reduction of condensation on window or a more attractive image.
What the salesperson needs to do is assess the unmet needs relative to the benefits new
windows create. For example, new windows are generally more energy efficient. That is
they help reduce monthly heating bills. New windows may also be more aesthetically
pleasing, thus, making the home more attractive.