Marketing Communications

Transcription

1 Marketing Communications 1 Introduction to Marketing Communications The aims of this introductory module are to explore some of the concepts associated with marketing communications and to develop an appreciation of the key characteristics of the main tools of the communications mix. examine the concept of exchange in the marketing context; assess the role of promotion in the context of the marketing mix; consider the range and potential impact of marketing communications; identify the key characteristics of each major tool in the communications mix; examine the effectiveness of each communication tool; establish a need for marketing communications; compare marketing communications in the consumer and business markets. 1.1 Introduction 1.2 The Concept of Marketing as an Exchange 1.3 The Role of Communication in Exchange Transactions 1.4 Marketing Communications and the Process of Exchange 1.5 Defining Marketing Communications 1.6 The Role of Marketing Communications 1.7 The Marketing Communications Mix 1.8 Effectiveness of the Promotional Tools 1.9 Selection Criteria 1.10 Management of the Promotional Tools 1.11 Context and Marketing Communications 1.12 Communication Differences The concept of exchange transactions is seen by many commentators as underpinning the marketing concept. Of the different types of exchange, market and relational are the two that can be observed most often in industrial societies. Marketing communications have various roles to play in the context of both these types of exchange, but as will be seen later in this text there is a strong movement away from the reliance on market exchanges to the longer-term perspective that relational exchanges enjoy, and to the development of partnerships. This approach is referred to as relationship marketing, and it is here that changes in the use and deployment of marketing communications can be best observed. Marketing communications is an audience-centred activity and uses five traditional elements of the promotional mix: advertising, sales promotion, public relations, direct marketing, and personal selling. Each has its strengths and weaknesses, and these tools are now beginning to be used in different ways to develop relationships with customers, whether they be consumers or organisational buyers. An example of these changes is the use of the Internet, a communication medium that has grown rapidly since the mid-1990s and is threatening to reconfigure the way both marketing and marketing communications are practised. Marketing communications have an important role to play in communicating and promoting products and services not only to consumers but also to the business-to-business sector and to other organisations representing differing stakeholders. The development of partnerships between brands and consumers, and 2008 Edinburgh Business School 1

2 between organisations within distribution channels or networks, is an important perspective of marketing communications. Communications in this context will be an important part of this text. Finally, marketing communications can be seen as a series of episodes that occur within a particular set of circumstances or contexts. Marketing managers need to be able to identify principal characteristics of the context they are faced with and contribute to the context with a suitable promotional programme. 2 Communication Theory The aims of this module are to introduce communication theory and to set it in the context of marketing communications. understand the basic model of the communication process; appreciate how the components of the model contribute to successful communications; provide an analysis of the linkages between components; examine the impact of the media on the communication process; examine the impact of personal influences on the communication process; introduce more recent explanations of communication theory, including networks; explain how communication theory underpins our understanding of marketing communications. 2.1 An Introduction to the Communication Process 2.2 Linear Model of Communication 2.3 Influences of the Communication Process 2.4 Word-of-Mouth Communications 2.5 Process of Adoption 2.6 Process of Diffusion 2.7 Interactional Approaches to Communications 2.8 Relational or Contextual Approaches to Communications 2.9 Network Approaches to Communications An appreciation of the way in which communication works is important to understanding and developing planned communications. The classic approach to communication views the process as linear, similar to the actions of a hypodermic syringe injecting its audience with information. Here the sender message channel receiver approach is prevalent. Subsequent models have attempted to reflect the two-way perspective, and to account for the interpersonal components of communications, which in themselves stress mutuality and shared perceptions (Windahl et al., 1992). The linear approach is not rejected, as there are circumstances where a one-way transmission of information is required, such as a flood warning by the National Rivers Authority or the announcement that a product specification has been altered to meet new legislative requirements. However, in the context of developing relational exchanges (Module MM01), the network approach to communications is both justified and compatible. Individuals are seen to engage in patterned flows of communication that partly reflect the diversity of their interests. This text recognises the importance of the linear and interactional approaches to communication, but uses the concept of communication networks, a contextual perspective, to explore marketing communications Edinburgh Business School 2

3 3 Understanding How Consumers Process Information The aim of this module is to provide an introduction to the main elements of buyer information-processing, in order that readers may develop an appreciation of the way marketing communications can be built on an understanding of buyer behaviour. introduce cognitive theory as an important element in the development of planned communications; examine personality as a main factor in the determination of successful communications; explore perception in the context of marketing communications; understand the main differences between conditioning and cognitive learning processes; appraise the role of attitudes and the different ways in which attitudes are thought to be developed; appreciate the importance of understanding an individual s intention to act in a particular way and its part in the decision process; understand how marketing communications can be used to influence these elements of buyer behaviour and in particular to change attitudes; provide a brief overview of the other environmental influences that affect the manner in which individuals process information. 3.1 Introduction 3.2 Cognitive Theory 3.3 Personality 3.4 Perception 3.5 Marketing and Perception 3.6 Learning 3.7 Attitudes 3.8 Changing Attitudes with Marketing Communications This module has reviewed some of the recent and current thinking about how individuals process information. Cognitive theory provides a valuable insight into the manner in which buyers use externally and internally generated stimuli to solve problems. Personality, perception, learning, attitudes and aspects pertinent to the wider environment and each purchase situation have been considered as major elements of the problem-solving approach adopted by both consumers and organisational buyers. Marketing communication planners need to be aware of these elements and to understand how they operate in the target audience. Messages can be created to match the cognitive needs of the intended audience and change, for example, perception or attitudes, in such a way that communication with the target audience is likely to be more successful. 4 Customer Decision-Making The aim of this module is to consider some of the different processes that consumers and organisational buyers use to make purchase decisions. present a general process for purchase decision-making; examine the sequence and methods used by consumers to make decisions; explore the components of perceived risk; 2008 Edinburgh Business School 3

4 introduce and explain involvement theory and relate it to planned communication activities; consider the different types of individual who contribute to purchase decisions made by organisations; understand the stages that organisations use to make purchase decisions; appreciate the differences in approaches and content of marketing communications between consumer and organisational buying. 4.1 Introduction 4.2 A General Buying Decision-Making Process 4.3 Types of Consumer Decision-Making 4.4 Perceived Risk 4.5 Involvement Theory 4.6 Hedonic Consumption 4.7 Consumer Decision-Making Processes 4.8 Organisational Buying Decision Processes 4.9 Unifying Models of Buyer Decision-Making The processes that buyers use to make purchase decisions differ according to a variety of factors. These vary with the nature of the purchase situation: that is, whether the purchase is oriented to consumer or organisational buying, and the depth of experience held by the buyer. Other factors concerned are the levels of perceived risk, involvement, knowledge and the number of others who are contributing to the final outcome. Some of the decision processes that have been presented in this module appear to be linear and based upon logic and reason. This is not the case, as decisions are often the result of experience, knowledge and an interpretative view of the environment. Therefore the decision processes used by buyers are not always sequential, nor do they reflect a rational approach to resolving problems and needs. Marketing communications need to be based on an understanding of the decision processes used by buyers in the targeted market. This means that the content and style of messages and the form of delivery by the tools of the promotional mix (Modules 14 17) can be dovetailed closely into the needs of the receivers. This also demonstrates how the realm of understanding is an important issue in effective communications. 5 How Marketing Communications Might Work The aims of this module are to consider some of the theoretical concepts associated with ideas about how marketing communications might work, and to consider the complexities associated with understanding how clients can best use marketing communications. explore some of the fundamental ideas about the role of marketing communications; examine the strengths and weaknesses of the sequential models of how marketing communications works; explain cognitive processing as a means of understanding how people use marketing communications messages; discuss the contribution that the elaboration likelihood model can make to comprehending how motivation and attitude change can be brought together; consider the concept of significant value; present a composite model of how marketing communications might work Edinburgh Business School 4

5 5.1 Introduction 5.2 Context Strategy and Marketing Communications 5.3 The Emergence of Marketing Communications 5.4 The Role of Marketing Communications 5.5 How Does Marketing Communications Work? 5.6 Cognitive Processing 5.7 Elaboration Likelihood Model 5.8 Interaction, Dialogue and Relationships 5.9 Developing Significant Value 5.10 Towards a Model of Marketing Communications Over time a variety of models have been developed, each of which has attempted to explain how advertising works. AIDA and sequential models, such as the hierarchy of effects approach, were for a long time the received wisdom in this area. Now they are regarded as quaint and out of date, for a number of hard-hitting reasons. The developing interest in integrated marketing communications, and in particular the complementary influence of brand values with calls to action and behaviour change, has stimulated a move away from an advertising-only perspective. Developments concerning cognitive processing, feelings, likeability and elaboration enable a broader perspective on marketing communications as a whole to be achieved. At the same time many writers have become sceptical of advertising s power to persuade consumers to change their purchasing habits, USPs have given way to ESPs, and industry and commerce have shifted the focus of their marketing spend away from above- towards below-the-line activities, as if to emphasise the need to affect behavioural change. Therefore understanding the way marketing communications works, rather than just the way advertising works, is now more important. We now understand that marketing communication messages tend to be more successful when they are of particular significance to each individual. When significant they are of value: hence the need to generate messages that are of significant value to the target audience. To be significantly valuable, messages should present a new product or a product that is substantially different from the other products in the category, should be interesting and stimulating, and should be personally meaningful. Reality suggests that the majority of marketing communication messages cannot claim to be of significant value to most people. Those messages that are of value are normally dissected so that only parts of the message are extracted and stored for future use. Messages or extracts of messages can be recalled or released from long-term memory when triggered by an association, such as new incoming messages or experiences with a particular brand. Marketing communication messages and brands should be regarded as complementary elements that need to work together if marketing communications and their respective brands are to be successful. 6 Marketing Communications: Strategies and Planning The aims of this module are to explore the nature of strategy, and of marketing communications strategies in particular. The goal is to familiarise readers with the elements and concepts associated with marketing communications strategy and planning, and to introduce the marketing communications planning framework. introduce the notion of marketing communications strategy as a separate concept from marketing communications plans; consider three main marketing communications strategies: pull, push and profile; examine involvement as a basis for developing promotional strategies; 2008 Edinburgh Business School 5

6 consider the different elements involved in marketing communications plans; highlight the linkages and interaction between the different elements of the plan; present a framework for the development of marketing communications plans. 6.1 Introduction 6.2 Understanding Strategy 6.3 Market Segmentation 6.4 The 3Ps of Marketing Communications Strategy 6.5 Strategic Balance 6.6 Internet Strategies 6.7 Developing a Marketing Communications Plan 6.8 The Marketing Communications Planning Framework 6.9 A Framework For Integrated Marketing Communications Plans 6.10 Links and Essential Points The development of a marketing communications strategy is important if an organisation is to communicate effectively with its various target audiences. Unlike planning, which is an articulation of strategy, marketing communications needs to be rooted in its target audiences and the task that needs to be completed. Push, pull and profile strategies can be combined in different ways to meet the needs of different communication tasks. In addition to the broad target, it is important to express strategy in terms of the differentiation (positioning), reminding/reassuring, informing and persuading of audiences. The marketing communications planning framework offers a sequential format for the development of marketing communications plans. In real life such plans are developed in parallel and involve the various individuals and stakeholders to varying degrees. The framework presented here is practical and robust, yet the linear approach should not be accepted without question. Communications strategy is about the direction and coordination of messages to specific audiences. It is about the delivery of timely, accurate messages that are of significant value for their recipients. 7 Marketing Communications: and Positioning The aims of this module are to establish the nature and importance of the role that objectives play in the formulation of promotional strategies and to explore the concept of positioning. examine the need for organisational objectives; set out the different types of organisational goal; specify the relationship between corporate strategy and promotional objectives; determine the components of promotional objectives; examine the differences between sales-based and communication-based objectives; evaluate the concept of positioning; explore the technique of perceptual mapping; understand and determine various positioning strategies. 7.1 Introduction 7.2 The Role of in Corporate Strategy 7.3 The Role of Promotional and Plans 7.4 Derivation of Promotional 2008 Edinburgh Business School 6

7 7.5 The Need for Realism when Setting Promotional 7.6 SMART 7.7 Positioning: An Introduction 7.8 The Development of the Positioning Concept 7.9 The Positioning Concept 7.10 Developing and Managing a Position 7.11 Positioning Strategies 7.12 Repositioning The use of objectives in the management process is clearly vital if the organisation s desired outcomes are to be achieved. Each of the objectives, at corporate, unit and functional levels, contributes to the formulation of the promotional objectives. They are all interlinked, interdependent, multiple, and often conflicting. The major task for the promotional objectives is twofold: first, to contribute to the overall direction of the organisation by fulfilling the communication requirements of the marketing mix; second, to communicate the corporate thrust to various stakeholders so that they understand the focus of the organisation and can respond to its intentions. Promotional objectives are derived from an initial review of the current situation and the marketing plan requirements. They are not a replication of the marketing objectives but a distillation of the research activities that have been undertaken subsequently. Such objectives consist of two main elements: sales oriented and communication oriented. A balance between the two will be determined by the situation facing the organisation, but may be a mixture of product and corporate tasks. These objectives, once quantified, need to be ranked and weighted in order that other components of the plan can be developed. Part of the information generated at the research stage informs how buyers and stakeholders position the offering relative to the other players in the target market and how the product itself is perceived. This aspect of the management process is very important, as the communications undertaken by the organisation help to shape the context in which individuals place the offering (or the organisation). The way in which an organisation decides to position itself and/or its offerings determines the form, intensity and nature of the messages transmitted through the promotional mix. 8 Branding and the Role of Marketing Communications The aims of this module are to explore the nature and characteristics of branding and to identify the way in which marketing communications can be used to develop and maintain brands that are of significance to their respective target audiences. introduce and explore the nature of branding; examine the common characteristics of brands; determine the benefits to both buyers and owners of brands; identify the different types of brand and the relationships they can have with the parent organisation; appreciate the strategic importance of brands; understand the contribution of and the way in which marketing communications can be used to build and support brands; appraise the nature and significance of brand equity. 8.1 Introduction 8.2 Brand Characteristics 8.3 Benefits of Branding 2008 Edinburgh Business School 7

8 8.4 Brand Portfolios: Architecture and Forms 8.5 The Strategic Role of Branding 8.6 The Role of Marketing Communications in Branding 8.7 Business-To-Business Branding 8.8 Online Branding 8.9 Brand Equity Branding provides customers with a quick and easy way of understanding what a product is and what value it represents. It can represent a measure of psychosocial reassurance. Branding provides manufacturers and distributors with a means of differentiating their products in order to gain competitive advantage in such a way that customers perceive added value. This allows for premium pricing, and the improved margin can be used to invest in new opportunities for commercial initiatives through, for example, innovation or improved levels of customer service. Marketing communications has an important role to play in brand development and maintenance. In many circumstances advertising is used to develop strong brands. To help customers make associations with brands either a rational, information-based approach might be adopted or alternatively a more emotional relationship might be forged, one based more on imagery and feelings. In many cases the opportunity to use advertising is restricted, and many smaller and b2b organisations need to rely on a below-the-line approach. In these circumstances the brand name is important, because it needs to symbolise or convey meaning about the functionality of the brand. In addition, merchandising, packaging and other POP elements will be prominent in brand development. There are many other factors that can influence the development of brands. Co-branding, geographic signals and award symbols can impact on brand associations so that ultimately risk is reduced, trust is enhanced, and there is sufficient confidence to purchase the brand on a regular basis. Branding is a key strategic communication issue and not only affects FMCG products but is increasingly used by b2b organisations as a means of differentiation and added value. 9 Corporate Identity, Reputation and Branding The aim of this module is to consider those communications that are designed to encourage a dialogue with stakeholders, with a view to influencing the image and reputation of the organisation. introduce the notion of corporate communications and profile strategies; appraise the term corporate image and the associated concepts corporate personality, identity and reputation; consider the characteristics of corporate identity and corporate branding; explore methods of evaluating corporate image; examine the relationship between corporate identity and strategic management; introduce a framework incorporating corporate identity with the process of strategic management. 9.1 Introduction 9.2 Corporate Identity or Corporate Branding? 9.3 Corporate Communications 9.4 Dimensions of Corporate Image 9.5 Elements of Corporate Identity 9.6 Corporate Reputation 9.7 Strategy and Corporate Identity/Image 2008 Edinburgh Business School 8

9 Communications strategies need to encompass the communication needs of all those stakeholders and constituencies that might influence the organisation or be influenced by it. These approaches are referred to as the profile strategy, and so complete the 3Ps for communication: push, pull and profile. Profile strategies are essentially concerned with communication about the organisation itself rather than its products and/or services. The focus rests with the corporate body: who it is, what it is, what it is seeking to do and how it is important to other stakeholders. At the root of this strategic approach is the notion of corporate identity. Organisations project themselves (as they want to be seen/understood) through a series of cues. These are then interpreted by stakeholders and used to create an image of the organisation. This corporate image may or may not be a correct interpretation of the organisation, but this perception is an important one and must be treated seriously. Reputations over time are developed from the image, and can be seen to feed back to the corporate personality and impact upon the way members of an organisation think about themselves and determine what is central, distinctive and enduring. Profile strategies are an important part of communication strategy, and should be regarded as an integral part of any total or integrated marketing communications approach that might be developed. 10 Financial Resources for Marketing Communications The aim of this module is to examine the financial context within which organisations undertake promotional campaigns. determine current trends in advertising and promotional expenditure; discuss the role of the promotional budget; clarify the benefits of using promotional budgets; examine various budgeting techniques, both practical and theoretical; provide an appreciation of the advertising-to-sales (A/S) ratio; set out the principles where share of voice (SOV) can be used as a strategically competitive tool Introduction 10.2 Trends in Promotional Expenditure 10.3 The Role of the Promotional Budget 10.4 Benefits of Budgeting 10.5 Difficulties Associated with Budgeting for Communications Spend 10.6 Models of Appropriation 10.7 Techniques and Approaches 10.8 Competitive Parity 10.9 Advertising-To-Sales Ratio Share of Voice Appropriation Brand Types The Value of Brand Communications Profit Impact on Market Strategy (PIMS) Which Methods Are Most Used? Budgeting for the Other Elements of the Promotional Mix The task of assigning financial resources to an organisation s marketing communications is difficult and 2008 Edinburgh Business School 9

10 imprecise, and as yet there is no one method that can be used on a prescriptive basis. Theoretically, the task can be understood and resources allocated easily. Unfortunately, the quality and availability of information required to use marginal analysis are poor, and practitioners have to rely on other methods. These other methods range from the simplistic ( This is what I think we should spend ) to the more complex analysis associated with the spend incurred by competitors and the relationship of share of voice to market share that some believe is operable in certain market conditions, or purchased database information such as PIMS. The decision to invest in marketing communications is a difficult one. This is because the direct outcomes are intangible and often distant, as the advertising effects are digested by potential buyers until such time as they are prepared and ready to purchase. The methods presented in this module represent some of the more commonly used techniques. No one method is sufficient, and two or three approaches to the investment decision are required if management is to make decisions with any accuracy or confidence. Some commentators (e.g. Buzzell et al., 1990; Jones, 1990) suggest that the actual amounts invested by some organisations are larger than is necessary. The consequence is that there is wastage and inefficiency, which contributes to a dilution of the profits that brands generate. Management has to make a trade-off between investing and growing the brand to secure a position, and relaxing the promotional investment and harvesting some profit, perhaps as a reward for the previous investment activity. 11 Evaluating Marketing Communications The aim of this module is to review the ways in which marketing communications activities can be evaluated. discuss the role of evaluation as part of marketing communications; explore the value and methods of pre-testing and post-testing advertisements; provide an insight into the value of qualitative and quantitative testing techniques; appreciate the role that technology plays in the assessment and evaluation of advertising; examine ways in which sales promotions can be evaluated; present the methods used to evaluate direct marketing; discuss the techniques and approaches used to measure and evaluate public relations; explore the ways in which personal selling activities can be measured; consider some of the issues associated with evaluating the effectiveness of online communications Introduction 11.2 The Role of Evaluation in Planned Communications 11.3 Pre-Testing Finished Advertisements 11.4 Physiological Measures 11.5 Post-Testing 11.6 Other Tests 11.7 Sales Promotion 11.8 Using Technology to Evaluate Sales Promotions 11.9 Public Relations Sponsorship Personal Selling Online Communications The evaluation of a marketing communications plan, once implemented, is an essential part of the total 2008 Edinburgh Business School 10

11 system. The evaluation provides a potentially rich source of material for the next campaign and the ongoing communications that all organisations operate, either intentionally or not. The degree to which the promotional objectives set for a campaign (Module MM07) have been achieved has to be the focus of the evaluation process. The next important factor is the measurement of the contribution that each part of the marketing communications mix may have made. Again, this can be determined from a holistic perspective, or it can be usefully explored by employing some of the particular techniques and methods outlined in this module. It would appear that, should resources be made available and should management appreciate the importance of measuring the effectiveness of their investment in marketing communications, then testing before and after exposure to each campaign activity is advisable, in order that a degree of change can be determined. Although pre- and post-testing is normally an advertising-related approach, the principle can be applied across all the tools of the mix, to some extent. There are many issues involved with the assessment of each of the tools of the promotional mix, some associated with their individual characteristics. There is no perfect or ideal technique, but research must be undertaken if the communication performance of an offering is to be built or maintained. An important question is why so many managers choose not to measure effectiveness. The immediate answer is that all managers do measure the effectiveness as demonstrated through their observation of the sales results at the end of each period. However, proper testing and analysis is a practice rejected for many reasons. A prevalent reason are that research uses resources that some managers would prefer to sink into the product, to build sales or to build market awareness. There can be disagreement about what is to be researched, on the grounds that the many people associated with a campaign have different needs, and as the budget is restricted the net result is that there is no research. Others argue that as it is very difficult, if not impossible, to isolate the effects of one particular tool, there is no point in wasting resources on testing. All these points can and should be refuted. Only by attempting to measure effectiveness will our understanding improve, leading to a more effective utilisation and more efficient use of marketing communications. Sales measurement is used most commonly because it is relatively cheap to administer and quick to implement, and to many managers sales and profits are derived from communications (and advertising in particular), so this constitutes the only meaningful measure. 12 Advertising and Strategy The aims of this module are to explore the different views about advertising strategy and to consider the complexities associated with understanding how clients can best use advertising. consider the role that advertising plays in both consumer and business-to-business markets; introduce the principal frameworks by which advertising is thought to influence individuals; appraise the strong and weak theories of advertising; present the alphabetical model of advertising; evaluate the FCB grid as a tool for strategy development; use the Rossiter Percy grid as a means of creating strategic direction Introduction 12.2 The Role of Advertising 12.3 Emotion in Advertising 12.4 Advertising Models and Concepts 12.5 The Strong and Weak Theories of Advertising 12.6 Using Advertising Strategically 12.7 Advertising to Engage 2008 Edinburgh Business School 11

12 A variety of models have been developed in an attempt to explain how advertising works. In addition some of these models have attempted to develop a strategic perspective for this mass communications tool. AIDA and the various sequential models, such as the hierarchy of effects approach, have now given way to new views of how advertising works. Advertising, once considered the prime form of mass persuasion, is now subject to many different views. Those who are sceptical of advertising s power to persuade consumers to change their purchasing habits now explore ideas concerning advertising s strategic role in reinforcing brand messages and repositioning brands. The strong theory of advertising reflects the persuasion concept, and has high credibility when used with new brands. However, the contrasting view is that advertising should be regarded as a means of defending customers purchase decisions and for protecting markets, not building them. Reality suggests that most advertising cannot claim to be of significant value to most people, and that the strong and the weak theories are equally applicable but not at the same time and not in the same context. The FCB and Rossiter Percy grids represent formalised attempts to interpret the strategic use of advertising. Intended to provide agencies with a method that might ensure consistency, meaning and value with respect to their client s brands, these are no longer considered by agencies to be sufficiently flexible, rigorous or representative of how contemporary advertising performs. A more current perspective of advertising strategy suggests that advertising should become more engaged with the customer s experience of the brand and not be rooted just in the development of brand values. 13 Advertising Messages and Creative Approaches The aim of this module is to consider some of the ways in which advertising messages can be created, by focusing on some of the principal aspects of message construction and presentation. show how messages can be constructed to account for the context in which they are to be received; examine the importance and characteristics of using source credibility; examine the use of emotions and feelings in advertising messages; explore the advantages and disadvantages of using spokespersons in message presentation; consider how advertising messages might be best presented; suggest how informational and transformational motives can be used as tactical tools in an advertising plan Introduction 13.2 Message Source 13.3 Message Balance 13.4 Message Structure 13.5 Message Presentation 13.6 Advertising Tactics Advertising has an important role to play in most promotional plans. It is used primarily to build awareness and to usher in the other tools of the mix. The tasks that advertising is expected to achieve will have been set out in the promotional objectives, and they will require communication with target consumers and organisational buyers. Advertising is normally regarded as a tool that can persuade and change the behaviour of individuals, but 2008 Edinburgh Business School 12

13 there are a growing number of researchers who believe that its prime use is to defend loyal customers from the attacks of competitor products, by reinforcing attitudes. The design and assembly of advertising messages is crucially important. Through establishment of a good realm of understanding, messages can be created in such a way that they stand a far greater opportunity of building a dialogue between members of the target audience and the brand. By appreciating the underlying emotions of the target buyer and the motivations that drive attitudes and purchase intentions, the balance and the pattern they assume can be shaped in such a way that they lead to effective advertising. 14 Media Behaviour and Planning: Delivering The Message The aims of this module are to introduce the fundamental elements of media planning and to set out some of the issues facing media planners. consider various theories concerning the content of different media and related media-switching behaviours; explain the role of the media planner and highlight the impact of media and audience fragmentation; examine the key concepts used in media selection: reach and cover, frequency, duplication, rating points and CPT; appreciate the concept of repetition and the debate concerning effective frequency and recency planning; understand the concepts of effectiveness and efficiency when applied to media selection decisions; introduce media source effects as an important factor in the selection and timing of advertising in magazines and television programmes; explore the different ways in which advertisements can be scheduled Introduction 14.2 Media-Switching Behaviour 14.3 Vehicle Selection 14.4 Media Planning Concepts 14.5 Effective Frequency 14.6 Recency Planning 14.7 Media Usage and Attitudes 14.8 Efficiency 14.9 Media Source Effects Scheduling The task of buying the time or space in media vehicles in order that an advertising message may be carried to a target audience appears seductively straightforward. It is not. It is complicated by several factors, ranging from the size and dispersion of the target audience to the increasing number and variety of available media. These factors are referred to as audience and media fragmentation, which bring both benefits to and difficulties for media planners and advertisers. For example, it is easier to target more specialised and compact target audiences using new and specialised media. However, audience profiles are changing rapidly, and there is little control information about these audiences that allows advertising funds to be allocated properly (Mueller-Heumann, 1992). Another major difficulty, increasing in its importance, is the question of how many times a message must be repeated before an impression, awareness or learning occurs. The search for effective frequency continues, particularly by product class. However, it is generally accepted that three exposures are necessary as a 2008 Edinburgh Business School 13

14 minimum and ten as a maximum. Decisions regarding the media cannot be made in isolation from the qualitative factors associated with each vehicle. Known as vehicle source effects, these are concerned with the quality of the vehicle in terms of its atmosphere, technical aspects and audience/product fit. The final task concerns the timing or scheduling of advertisements. As with most things in life, timing is of the essence. Scheduling calls for subjectivity and, although there are numerous quantitative measures to assist decision-making, media planning is essentially about management making judgements about where best to place its client s messages to maximise their effectiveness and the efficiency of the spend. 15 Sales Promotion The aim of this part of the module is to consider the nature and role of sales promotion, and to appraise its position within the marketing communications mix. explain the role of sales promotion in the promotional mix; discuss the reasons for the increased use of sales promotions; examine the way in which sales promotions are considered to work; appraise the value of this promotional tool; discuss the nature of loyalty programmes, and issues associated with customer retention; appreciate how sales promotions can be used strategically; examine the sales promotion techniques used by manufacturers and resellers; clarify the particular objectives sales promotions seek to satisfy Introduction 15.2 Understanding the Value of Sales Promotions 15.3 The Role of Sales Promotion 15.4 Sales Promotion Plans: The 15.5 An Overview of How Sales Promotions Work 15.6 Loyalty and Retention Programmes 15.7 The Strategic Use of Sales Promotions 15.8 Methods and Techniques 15.9 Sales Promotions: Manufacturers to Resellers Sales Promotions: Resellers to Consumers Sales Promotions: Manufacturers to Consumers Sales Promotions: The Salesforce Other Sales Promotion Aids Sales promotions now command the lion s share of the promotional budget. This is because it has been proved that they are very effective as a communication tool with consumers, members of the performance network, and the salesforce. The range of techniques and methods used to add value to offerings is enormous, but there are growing doubts about the effectiveness and profitability of some sales promotions. In comparison with advertising and public relations, many of the sales promotion techniques are easier to evaluate, if only because the number of variables is smaller and they are easier to isolate. Having said this, there is a lack of effective sales promotion measurement and control. This often leads to a short-term focus. Retailers are in the same position, except for the evaluation on a pre- and post-test basis of their own-brand promotions. Store traffic, sales volume and consumer attitude studies prevail. Sales promotions have a strategic role to play, particularly when they are used to complement the other 2008 Edinburgh Business School 14

15 activities in the promotional mix. By attempting to develop a consistent theme for a promotional plan, sales promotions can follow advertising s awareness-building activities with a series of messages that continue the theme already established. Success is much more likely when consumers are invited to take advantage of a promotion for a product that they are not only aware of but have raised consciousness as a result of recent promotional messages. The range of techniques and methods used to add value to offerings is enormous, but there are growing doubts about the effectiveness and profitability associated with some sales promotions. Sales promotions used by manufacturers to communicate with resellers are aimed at encouraging resellers either to try new products or to purchase more of the ones they currently stock. To do this, trade allowances, in various guises, are the principal means. Sales promotions used by resellers (largely retailers) to influence consumers are normally driven by manufacturers, although some price deals and other techniques are used to generate store traffic. Most sales promotions are used by manufacturers to influence consumers. Again, the main tasks are to encourage trial or increase product purchase. A range of techniques, from sampling and coupons to premiums, contests and sweepstakes, are used, with varying levels of success, but there has been a distinct shift away from traditional promotional instruments to the use of digital media in order to reflect consumers preferences and media behaviour. 16 Public Relations and Sponsorship The aim of this part of the module is to explore public relations in the context of promoting organisations and their products. discuss the role of public relations in the communications mix; clarify the differences between corporate public relations and marketing public relations; highlight the main audiences to whom public relations activities are directed; provide an overview of some of the main tools used by public relations; appreciate the development and significance of corporate advertising; examine the nature and context of crisis management; determine the manner in which public relations complements the other tools of the promotional mix. understand the reasons why sponsorship has become an important part of the promotional mix; provide an insight into the main characteristics of this form of communication; consider where sponsorship may best be placed in the promotional mix; explore ways in which sponsorship can be best evaluated Introduction 16.2 Characteristics of Public Relations 16.3 Publics or Stakeholders? 16.4 A Framework of Public Relations 16.5 Corporate Public Relations and Marketing Public Relations 16.6 of a Public Relations Plan 16.7 Cause-related Marketing 16.8 Public Relations Methods and Techniques 16.9 Lobbying Corporate Advertising Crisis Management Crisis for Online Brands Integration of Public Relations in the Promotional Mix Sponsorship 2008 Edinburgh Business School 15

16 16.15 The Growth and Development of Sponsorship Sponsorship How Sponsorship Might Work Theoretical Aspects of Sponsorship Types of Sponsorship The Role of Sponsorship in the Promotional Mix Public relations, whether oriented primarily to product support or to the development of corporate goodwill, plays an important role within the communications mix. According to Haywood (1991), public relations can support marketing in various ways, from improving awareness and projecting credibility to creating direct sales leads and motivating the salesforce and members of the performance network. However, public relations is now recognised as a communication discipline that can develop and maintain a portfolio of relationships with a range of key stakeholder audiences. By providing all stakeholders with cues by which they can develop an image of an organisation, public relations enables organisations to position themselves and provide stakeholders with a means of identifying and understanding an organisation. This may be accomplished inadvertently through inaction or deliberately through a planned presentation of a variety of cues. These range from publicity through press releases to the manner in which customers are treated, products perform, events are managed and expectations are met. Finally, the area referred to as crisis communications management has grown in significance during recent years. Public relations plays an important role in preparing for and constraining the impact of a crisis and reestablishing an organisation once a crisis has passed. By creating campaigns targeted at individual stakeholders, or at least identifying the needs of the performance network as separate from those of the support network, the effects intended at the outset can be measured at the close of different campaigns. Sponsorship of events, activities and organisations will continue to grow in significance, if only because of its effectiveness and value as a tool of marketing communications relative to the other tools in the mix. Organisations believe that sponsorship allows them access to specific target audiences and enhances their corporate image (Marshall and Cook, 1992). Other areas will become subject to sponsorship, such as the development of television programme sponsorship (for example the weather forecasts by Portman Building Society on Meridian and Tulip Computers on Sky). There seems little doubt that the introduction of new products and brands can be assisted by the use of appropriate sponsorship. Indeed, it appears that sponsorship, in certain contexts, can be used to prepare markets for the arrival and penetration of new brands. The evaluation of sponsorship arrangements poses a problem, in that measurement is little better than that used for advertising. However, the impact and approach that sponsorship can have suggest that the two tools should be used together, coordinated, if not integrated, to develop awareness and strong brand associations and triggers. There is a warning, and that concerns the degree to which sponsorship is capable of changing purchase behaviour through persuasion. Organisations considering the use of sponsorship as a means of directly impacting upon the bottom line are likely to be disappointed. Other tools are required to stimulate behaviour; sponsorship alone is not capable of persuading target audiences to behave differently. 17 Direct Marketing The aims of this module are to explore the characteristics of direct marketing, and to develop an understanding of interactive marketing communications. introduce and define direct marketing; consider the reasons behind the growth and development of this new marketing communications 2008 Edinburgh Business School 16

17 tool; examine the relationship of direct brands and direct response media and their role within the marketing communications mix; appreciate the significance of the database in direct marketing; identify and consider different direct response media; consider the value of integrating the activities of direct marketing with other elements of the mix Introduction 17.2 The Role of Direct Marketing 17.3 Types of Direct Brand 17.4 The Growth of Direct Marketing 17.5 The Role of the Database 17.6 Direct Response Media 17.7 Integration and Direct Marketing 17.8 Supporting the Salesforce 17.9 Multichannel Selling Direct marketing has become an established communications discipline. The various ways in which direct marketing can be used are proliferating, mainly as a result of developments in technology. Direct marketing uses direct response media based on database support, and permits the generation and feedback of messages with individual customers. The overarching objectives are to build and sustain a mutually rewarding relationship with each customer, to reduce media costs, and to improve effectiveness and measurement. The use of direct marketing has grown considerably in recent years and will undoubtedly continue to grow as new efficiency and effectiveness measures are developed. For some organisations their whole marketing approach has been built around the direct concept (e.g. First Direct in financial services), whereas for others the approach has been used to complement their use of the other tools in the promotional mix. Direct marketing will not replace mass-media-based communications, but it is likely that an increasing proportion of marketing budgets will move towards direct communication activities. 18 Internal Marketing Communications The aim of this module is to examine the context of internal marketing and how such issues might impact on an organisation s overall marketing communications. introduce the notion of internal marketing; understand the significance of organisational issues when developing marketing communication strategies; introduce the notion of organisational identity and the impact that employees can bring to the way that organisations are perceived by members and non-members; examine the impact of corporate culture on planned communications; provide an insight into the notion of strategic credibility and stakeholder perception of the focus organisation; appreciate the interaction and importance of corporate strategy to planned communications; examine how communication audits can assist the development of effective marketing communications; introduce ideas concerning the intellectual and emotional engagement of employees Edinburgh Business School 17