File - Taufique Hossain's Academic Resources

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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
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