MKT 337, Taufique Hossain 1 Lecture Objectives Discuss the need for planning Examine each element of the marketing communications process Differentiate planning from strategy Define integration and evaluate the reasons for and against an integrated approach to marketing communications 2 Marketing Communications Planning: Definitions “Formalisation of the strategy and ideas into a manageable sequence of activities that are linked, coherent and capable of being implemented in the light of resources available” Pickton & Broderick 2005 “A marketing communications plan is concerned with the development and managerial processes involved in the articulation of an organisation’s marketing communications strategy” Fill 2009 3 Why Planning Is Essential Clarity and consistency of brand proposition and positioning Continuity over time Facilitates integration Focuses decision making and constrains options Supports efficient setting and allocation of budget 4 Lack of Planning = Chaos 5 The Marketing Communications Planning Process Context analysis Communication objectives Marketing communications strategy Communications mix [tools and media] Scheduling and Implementation Resources Evaluation and control Feedback 6 Context Analysis Can relate to environmental analysis undertaken by marketing> SWOT PEST Should adopt a communications focus: Customer > Segmentation Brand > Identity Business Internal External 7 Lucozade Sport: Award Winning Campaign 8 Lucozade Sport: Understanding the market context Non-alcoholic Alcoholic Water Juice Milk Tea Coffee Other Carbonated Lucozade Power soft drink ade Energy Non-energy 9 Lucozade Sport: Business Context Launched in 1990, by 2004 had grown to £50m brand Strong year on year growth In 2004 sales and usage fell sharply Pepsi’s Gatorade and Coca Cola’s Powerade are main competitors 2005 Powerade redesigns packaging and attracts market aggressively Only 18% of sports participants drinking Lucozade Sport by 2004 10 Segmentation Criteria Demographics Age, sex, income, education, occupation Household composition/Life Stage Geodemographics Country, state, region, zip code, neighbourhood, climate Psychographics VALS [value, attitude, lifestyle] Personality Behavioural Purchase behaviour Purchase occasion Benefit sought 11 Example of Demographic Segmentation: Socio-Economic Classification (JICNARS) SOCIAL GRADE SOCIAL STATUS A Upper middle class B Middle class C1 HEAD OF HOUSEHOLD’S OCCUPATION APPROXIMATE PERCENTAGE OF FAMILIES Higher managerial, administrative or professional 3 Intermediate managerial, administrative or professional 10 Lower middle class Supervisory or clerical and junior managerial, administrative or professional 24 C2 Skilled working class Skilled manual workers 30 D Working class Semi and unskilled manual workers 25 E Those at lowest levels of subsistence State pensioners or widows (no other earner), casual or lowest grade workers 8 12 Segmentation: Life Stages [Wells & Gubar] Bachelor stage (young single people not living with parents) Newly married couples without children Full nest I (youngest child under 6) Full nest II (youngest child 6 or over) Full nest III (older married couple with dependent children) Empty nest I (no children living at home, family head in work) Empty nest II (family head retired) Solitary survivor (in work) Solitary survivor (retired) 13 Understanding the individual…. 14 Lucozade Sport: Segmentation Competitive Warriors Reluctant/ Detached Jugglers Team players Passive social 15 Determination of Objectives Value of objectives: Focus and coordination They help to orient everyone involved toward a common goal Guide for strategy formulation They serve as criteria for developing strategy and making decisions Measurement & control They provide the standards and benchmarks for evaluating results 16 Objectives What are we trying to achieve? Relate to the goals the marketing communications have in affecting the mind of the target audience Should be interrelated with corporate and marketing objectives To be effective should be SMART or SMARTT Provide benchmark so that relative success or failure can be evaluated 17 Objective Setting May reflect roles of communications [DRIP] or seek to move consumer through decision making process [AIDA] To what extent should communications objectives be stated in terms of sales? 18 Sales are a Function of Many Factors Product Quality Technology The Economy Competition SALES Distribution Price Policy 19 Top 10 Brand Awareness September’11 Lux N o kia Pr an Par achut e F air & Lo vely Top Of Mind So ny Sand alina Lif eb uo y 7.7 1.8 2.0 4.7 6.4 2.1 4.8 2.3 2.5 9.6 11.0 Pep so d ent 3.3 6.2 3.7 10.5 4.1 5.8 11.4 13.8 26.4 % T ib et Total Spontaneous Source QE1.a,b&c Report for Project ‘INNOVATION PLUS’ (Brand Health Study) Round September’11 Submitted on October 10, 2011 20 Top 10 Company Awareness September’11 U nilever Sq uar e N o kia Pr an So ny A kiz Top Of Mind RFL W alt o n ACI 4.7 1.6 1.6 5.9 8.2 1.6 8.1 2.1 2.1 5.3 7.5 2.8 5.8 5.9 11.5 11.9 12.9 16.7 27.9 31.9 % Ko hino o r Total Spontaneous Source QE1.a,b&c Report for Project ‘INNOVATION PLUS’ (Brand Health Study) Round September’11 Submitted on October 10, 2011 21 Competitive Operator Awareness Among All Users % 100 80 60 40 20 0 Apr'10 May'10 June'10 July '10 Aug'10 Sep'10 Oct'10 Nov'09 Dec'10 Jan'11 Feb'11 Mar'11 Apr'11 May'11 June'11 July'11 Aug'11 Sep'11 Launch Launch banglalink TOM grameenphone TOM Aktel TOM Robi TOM Warid TOM airtel TOM Source Q.1ai-iv Report for Project ‘INNOVATION PLUS’ (Brand Health Study) Round September’11 Submitted on October 10, 2011 22 Lucozade Sport: Campaign Objectives Getting associated with sport preparation so that the brand would be consumed before sport [Before] Giving the product functionality and scientific credentials to raise credibility [Fuel] Reduce the claim and align the brand to small but meaningful sport events [Edge] 23 Strategy Guides the direction, approach and implementation of an organisation’s desired marketing communications >Push >Pull >Profile Planning is about the formalisation of the strategy and ideas into a manageable sequence of activities that can be resourced and implemented. 24 Figure 12.5 Marketing communication strategic eclipse 25 Figure 12.2 The direction of communication in a pull strategy 26 Pull Strategy This will “pull” products through the distribution channels Promote to consumers and users in order to “create” demand Emphasis on mass media advertising 27 Figure 12.3 The direction of communication in a push strategy 28 Push Strategy Products “pushed” through the distribution channel Promoting heavily to members of the distribution channel eg retailers, wholesalers, agents It is assumed that they will in turn promote heavily to the end consumer Emphasis on personal selling and sales promotion 29 Figure 12.4 The direction of communication in a profile strategy 30 Profile Strategy Communications to ‘stakeholder’ groups Focuses on development of corporate image and reputation Awareness, perception and attitudes held by stakeholders towards an organisation need to be understood and acted upon Dialogue required which will normally lead to development of trust and commitment 31 Figure 1.1 The tools and position of the marketing communications mix Fill 2009 32 Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools of marketing communications Fill 33 Lucozade Sport: Communications Mix Advertising Press/TV Relationship building Sports Science Academy Sponsorship Talksport Product Placement 34 35 Lucozade: Sports Science Academy 36 Scheduling/Implementation Agency v In-house Creative Copy Production Printing Media planning and booking Distribution [DM SP] Timescale? Competitors? Environment 37 Resources: Budget Planning Four commonly used approaches to setting the budget: All you can afford Percentage of sales Competitive expenditure Objective & task 38 Monitoring & Evaluation of performance Feedback Contingency planning 39 Evaluation Techniques Complex especially in the case of integrated campaigns. Each element of the mix may be measured in a different way to capture individual contribution. Examples of some measurement techniques: > Recall and recognition tests (TV advertising) > Tracking studies (advertising) > Column inches (PR) > Coupon redemption (sales promotion) > “hits” (online) > Sales?????????? 40 Lucozade Sport: Campaign Evaluation Year on year sales Penetration level among sports participants Credibility of essential role in sports preparation 41 Integrated Marketing Communications (IMC) The triangulated use of combinations of media emanating from the belief that image advertising, sales promotion, direct response advertising and marketing public relations are not mutually exclusive disciplines and that incorporating elements of each into communication materials may lead to a triangulation in effects Nowak and Phelps, 1994 Integrated marketing communications is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programmes over time Schultz, 2004 42 IMC Drivers: The Communications Landscape Increasing message clutter and need to cut through Need for clear and consistent brand differentiation Greater levels of audience literacy Developments in technology and evolving new media opportunity Decreasing cost of database technology Needs for greater efficiency and accountability Convergence of entertainment and consumption media Move from transactional to relationship marketing 43 Figure 11.1 Elements for integration 44 The Case for IMC Reduce costs Streamlines company/agency relationships Achieve synergy across mix Supports brand and brand positioning in crowded market place Fosters customer focused Requires cultural shift and employee participation 45 The Case against IMC Encourages rigidity and inflexibility? Decision making becomes more centralised Loss of creativity Increased time and bureaucracy Internal resistance Need for global brands to be adapted? Could damage brand if one/some elements do not fit effectively 46 Management Fashion? “ IMC is a management fashion, apparent in its lack of definition and transient influence and its influence upon practice should be conceived accordingly” “ Despite its pervasive penetration in the marketing and communication management world, little has been said, however, about IMC’s theoretical robustness as well as its actual significance for marketing and advertising thought and practice” Cornelissen & Lock 2000 47