MKT547 Marketing Communications. Shamshul Anaz Hj. Kassim

Transcription

1 MKT547 Marketing Communications Shamshul Anaz Hj. Kassim

2 After studying this topic, student should be able to: Analyze the different elements in the communication model & how the components relate to marketing communication List the different components in the marketing communication model & apply the model to a real marketing scenario Compare the differences between communication process, marketing communication decisions & IMC Identify the different ways of segmenting, targeting & positioning

3 Marketing Communications

4 NOISE transmit SENDER Message ENCODE CHANNEL Message DECODE RECEIVER FEEDBACK NOISE

5 Sender Refer to the source / originator Receiver Party who receive the message / destination Message set of symbols that sender transmit Channel communication media Encoding message is translated into symbolic form which receiver will understand Decoding receiver who translates/interprets the symbols Feedback receiver response communicated back to sender Response reactions of the receiver after being exposed to the message Noise - interruption or communication dysfunction that prevent effective decoding

6 An efficient marketer must understand this process well so that he can plan the marketing communication program activity effectively

7 Can be either : Planned Communication Communications that are specifically planned to achieve some marketing objectives i.e. advertising, sales promotion, direct marketing and all the marketing commutation available are considered as planned messages Unplanned communication Unintentional gestures can communicate messages to the customers If customers are well treated, the company get good credit Otherwise, the company will be perceived as having bad services

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10 Positioning Targeting Setting Objectives Budgeting Guiding Structure

11 Positioning represents key feature, benefit or image that it stands for in the target s audience collective s mind Brand positioning statement - the central idea that encapsulates a brand s meaning and distinctiveness vis-à-vis competitive brands in the product category. Positioning and targeting decisions go hand in hand

12 Targeting Allow marketing communicators to deliver precisely and to prevent wasted coverage to people falling outside the intended audience Identify target markets in terms of demographic characteristics, lifestyles, product usage patterns, and geographic considerations. Meaningful market segments generally represent consumers who share a combination of characteristics and demonstrate similar behavior

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14 Setting Objectives Marketing communicator s decisions are grounded in the underlying goals/objectives to be accomplish for a brand Content of objectives varies according to the form of marketing communications used.

15 Budgeting Financial resources are budgeted to specific MarCom elements to accomplished desired objectives

16 Budgeting (Note: This topic is covered more thoroughly in chapter 6,) Different methods include Top-down budgeting (TD) - senior management decides how much each subunit receives. Bottom-up budgeting (BU) - managers of subunits (i.e., product category level) determine how much is needed to achieve their objectives, and these amounts are then combined to establish the total marketing budget. Bottom-up/top-down process (BUTD) - subunit managers submit budget requests to a chief marketing officer, who coordinates the various requests and then submits an overall budget to top management for approval. Top-down/bottom-up (TDBU) - top managers first establish a total size of the budget and then divide it among the various subunits. BUTD process is the most frequently used.

17 Guiding Structure The point at which the circles intersect represents the guiding structure for the implementation decisions that remain to be made Decision about the mixture of MarCom tools, message design and media placement are guided by more fundamental determinations about brand positioning, targeting, objective setting and budgeting

18 Mixing Elements Creating Messages Selecting Media Establishing Momentum

19 Mixing Elements» A fundamental issue confronting all companies is deciding exactly how to allocate resources among the various marketing communication tools» i.e. for B2B, the mixture typically emphasizes personal selling with supplementation from trade advertising, technical literature, trade shows.

20 Creating Messages» In the form of advertisements, publicity releases, promotions, and other form of MarCom message» Message content should be dictated by the brand s positioning strategy and aligned with the communications objective for the designated target audience

21 Selecting Media» all messages require an instrument or medium for transmission i.e. advertising (tv, radio, internet, etc.)

22 Establishing Momentum» establishing an energy or a force, particularly one that helps to increase or improve something» Refers to object s force or speed of movement» i.e. small-share automobile brands such as Hyundai, Mazda must spend a much larger portion of their sales on advertising compared to larger competitors such as Honda, Toyota and Ford; newer brands mush spend more to get established and to create strong, favorable and perhaps unique brand images

23 Each outcomes influences the other i.e. an advertising campaign for a new brand generates brand awareness and creates positive brand image, consumers may be persuaded to try the new brand therefore, brand equity is enhanced

24 Measuring results» Measure the results of MarCom efforts against the objectives that were established Providing Feedback» May suggest changes in product/promotion Taking corrective action» further improvement, greater investment

25 Many companies treat the various communication elements as virtually separate activities rather than integrated tools that work together to achieve a common goal. Lack of integration was more prevalent in the past than currently, though.

26 The philosophy and practice of carefully coordinating a brand s sundry marketing communications elements.

27 F fun E exhilaration E - energy

28 IMC is a communication process that entails the planning, creation, integration, and implementation of diverse forms of marcom (advertisements, sales promotions, publicity releases, events, etc.) that are delivered over time to a brand s targeted customers and prospects.

29 The goal of IMC is ultimately to influence or directly affect the behavior of the targeted audience. IMC considers all touch points, or sources of contact, that customer/prospect has with the brand as potential delivery channels for messages and makes use of all communications methods that are relevant to customers/prospects. IMC requires that all of a brand s communication media deliver a consistent message. The IMC process further necessitates that the customer/prospect is the starting point for determining the types of messages and media that will serve best to inform, persuade, and induce action.

30 multiple methods in combination with one another yield more positive communication results than do the tools used individually

31 (1) Start With The Customer or Prospect (2) Use Any Form Of Relevant Content (3) Speak With Single Voice (4) Build Relationship (5) Affect Behavior

32 An Example of Touch Point, or 360 Marketing: Hershey Foods

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35 Reduced Dependence on Mass Media Advertising Media advertising is not always the most effective or cost-efficient. Other communication methods should receive careful consideration before mass media advertising is automatically assumed to be the solution. Media-neutral approach - first identify the goal(s) a marcom program is designed to accomplish and then identify the best way to allocate the budget.

36 Increased Reliance on Highly Targeted Communication Methods Pinpointed communications are often less expensive and more effective than mass media advertising, and they are feasible today due to customer databases

37 Heightened Demands on Suppliers Agencies (i.e., advertising agencies, sales promotion firms, and public relations agencies) have historically offered a limited range of services. It is increasingly important for suppliers to offer multiple services.

38 Increased Efforts to Assess Communications Return on Investment Managers must increasingly be held financially accountable for their actions. Investment in marcom must be assessed in terms of the profit-to-investment ratio to determine whether changes are needed or whether other forms of investment might be more profitable.

39 Few providers have the skills required to execute. Mass media campaigns easier than Direct-to- Customer. The real challenge is to make sure that tools are consistently executed.

40 A packaged-goods company plans to introduce a new brand of healthy breakfast cereal named Long Life into the market. With the aid of a diagram, detail out the brand-level marketing communication decision process for this new brand

41 Students must present the Marcom Decisions models with the components of:» Fundamental decision: positioning, targeting, setting objective and budgeting» Implementation decisions: mixing elements, creating messages, selecting media, establishing momentum