BA230-Marketing Communication

Transcription

1 BA230-Marketing Communication

2 Product Decisions Quality Design Branding Packaging Customer Service New Products Product mix, line and life cycle strategies Goals Objectives Mix Budget Promotion Messages Media Metrics Market Mix Objectives Strategies Methods Price Decisions Setting pricing Price changes Discounting Place Channel type Channel mgt Supply chain Distribution Logistics Transportation Service levels

3 Communication Goes Beyond the Specific Promotion Mix Elements Although the promotion mix is the company's primary communication activity, the entire marketing mix -- promotion and product, price, and place -- must be coordinated for the greatest communication impact.

4 Need for Synergy Besides communication tools, all the marketing mix elements should work together harmoniously for maximum informational and persuasive effect. The major goal is to send a consistent message to customers.

5 Marketing Mix Influences on Consumer Perception Nature of Product Physical Attributes of Product Package Design Brand Name Advertisements & Commercials Point of Purchase Displays Distribution of Products

6 1. Product Individuals exchange something (e.g. money) in return for some benefit. The entire product experience provides value to customers. The product must be compatible with needs of the target audience.

7 Winning the Battle of Perceptions Many people believe that the basic issue in marketing is convincing customers you have a better product, that in the long run the best product will win. Not true It s an Illusion there is no objective reality. The perception is the reality.

8 1. Product The product is what the company has to offer, including its... Design Quality Features Varieties Brand name and logo

9 a.) Perceived Quality of Products Essential Cues Physical characteristics of the product (such as size, color, flavor, or aroma) that serve to influence the consumer s perceptions of product quality. For instance, a toilet tissue is preferred for superior durability and softness and a television for movie-quality picture and sound.

10 a.) Perceived Quality of Products Essential Cues Cues external to the product (such as price, store image, or brand image) that serve to influence the consumer s perception of a product s quality. For instance, BMW s slogan has helped build its brand image: "The ultimate driving machine

11 b.) Brand Message Almost anything related to brand conveys a message about the value of product. Two different products serving the same need can be compared on the basis of price for example: 5 dollars and 45 dollars per product. Consider a toothpaste in a supermarket which is covered with dust and placed at the last shelf.

12 b.) Brand Name A name that provides the customer with an easily identified theme to increase product recognition. The brand name fulfills a special role acting as a summary message on a package. Consumers use brand name as signals of product quality.

13 b.) Brand Value Coca Cola: $ billion IBM: $ billion Microsoft: $ billion

14 c.) Purchasing and Consumption Processes are Related to Senses Occurs through stimulation of our five senses. touch taste smell sight hearing

15 c.) Sensory Receptor: Sight Colors and learned associations Colors and mood Red: powerful, dangerous, exciting, hot, appetizing Burger King, KFC White: clean, pure laundry detergents

16 c.) Sensory Receptor: Sight Green: natural, peaceful, harmonious, environment friendly BP logo Blue: authoritative, respectful, meditative cool- cold Arko cooling after shave cologne Black: cold, sophisticated, prestigious Johnnie Walker Black Label scotch Mont Blanc pen

17 c.) Sensory Receptor: Sight Shape perception Long and large shapes are perceived as strong and effective. Short and thin shapes evoke elegance, fragileness. Round shapes are perceived as feminine, harmonious. Cornered shapes evoke dynamism, masculinity.

18 c.) Sensory Receptor: Smell Smell and emotions perfumes Smell& childhood associations Pelikan

19 c.) Sensory Receptor: Touch Touch Shetland sweater Solo Linen pillow

20 c.) Sensory Receptor: Taste Culturally determined Lifecycle changes Becel Negative taste experiences

21 d.) Packaging Offers convenience to consumers Prevents waste and make storage easier Promotes the product by communicating its features, uses, benefits, and image

22 d.) Packaging Packaging can improve perceived product quality. Packaging can make the difference in ease of use, more distinctive. Selpak side opening facial tissue can be opened either on the top or on the side of the pack enabling the easy use of the product in the car door pocket in addition to the conventional access.

23 2. Price One of the most important elements of the marketing mix. The amount charged for a product or service should support its positioning A pricing which is out of synchronization with the product and other marketing mix elements will confuse customers and hence lead to lower sales.

24 a.) Price/Quality Relationship The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product). High price reflects the exclusiveness of the product for example, Porsche. Value for customer = (Perceived Benefits - Perceived Price)

25 b.) Consumer Evaluation of Price Some products are subject to objective evaluation by customers e.g., a car with features as ABS, air conditioning, airbags, alarm, central locking... Whereas, some products are not appropriate for objective evaluation as beer and cigarettes.

26 c.) Pricing Fixed and variable costs Competition Company objectives Proposed positioning strategies. Target group and willingness to pay

27 3. Place Where tangible product is purchased or service is provided? Is it convenient? Where people are predisposed to pay attention to the promotional message? Are we taking full advantage of these places?

28 Place Observational studies have shown that time in store and amount spent are positively related. The more time in the store, the more money spent. Place is everything for low-involvement products.

29 Place

30 Store Image Overall perception the customer has of the store s environment. Physical elements in a store s design appeal to consumers emotions and encourage buying Interior layout, colors, furnishings, and lighting, exterior storefront and entrance design, display windows

31 Store Image

32 Store Image