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Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications Strategy 18.

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Presentation on theme: "Foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications Strategy 18."— Presentation transcript:

1 foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications Strategy 18

2 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Objectives 1. Explain the concept of the marketing communications mix. 2. Describe the marketing communications mix as part of the marketing mix. 3. Elaborate on the importance of the integrated marketing communications concept. 4. Outline a theoretical mode of the communications process. 5. Show how various marketing communications must conform to this model in order to be effective. 6. Explain and contrast pulling and pushing marketing communications strategies. 7. Discuss the appropriateness of different types of marketing communications objectives. 8. Explain the concept of a marketing communications budget. 9. Discuss the appropriateness of different types of marketing communications budgets. 10. Discuss marketing communications in the light of some public criticisms. Marketing Communications Strategy

3 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications All activities and messages inform, persuade, and influence the consumer in making a purchase decision. 18 Marketing Communications Strategy 18-2

4 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Integrating the Marketing Communications Plan into the Total Marketing Mix 18 Marketing Communications Strategy Figure Marketing Manager Integrated marketing communications strategy Other aspects of the marketing program: Product Distribution Pricing strategy strategy strategy Consumer Sets goals & objectives Combined with Feedback Personal Selling Nonpersonal Selling Produces Utility for

5 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Integrated Marketing Communications (IMC) A comprehensive marketing communications plan that takes into consideration all the communication disciplines being used and combines them to provide clarity, consistency, and maximum communications impact. 18 Marketing Communications Strategy 18-4

6 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Process of Marketing Communications 18 Marketing Communications Strategy Figure Sender Marketing Manager Encoding Sales presentations, ads, displays, publicity, releases Noise Transfer Mechanism Salesperson, print or electronic Advertising media, direct mail, internet, public relations channel Feedback Advertising research, field reports, inventory movements Response Attitude change or decision Decoding Customer/receiver Interests message

7 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Examples of Marketing Communications 18 Marketing Communications Strategy Table TYPE OFTRANSFERDECODING BY PROMOTIONSENDERENCODINGMECHANISMRECEIVERRESPONSE FEEDBACK PersonalCanon OfficeSalesCanon salesOffice manager Order placed Information that sellingEquipmentpresentationrepresentativeand employeesCanon copierfor customers are on new modelin local firmreacting positively office copierdiscuss Canonto the message sales presentation and those of competing suppliers Two-for-oneWendy'sWendy'sCoupon insertedNewspaperHamburgersInformation that coupon(salesHamburgersmarketingin weekendreader seespurchased bycustomers are promotion)department andnewspapercoupon forconsumers usingreacting positively advertisinghamburgerthe couponto the message agencyand saves it TelevisionMovie producerAdvertisementNetworkAudience seesSmall numberCommunication advertisingfor a new movietelevision duringad but fewof movie ticketsfailed to interest is developed byprograms withdecide to go topurchasedand motivate the the producer'shigh percentagethe movietarget market advertisingof viewers in agencytarget market

8 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Communications Mix The blend of personal selling and nonpersonal communications (including advertising, sales promotion, public relations, sponsorship marketing, and point-of-purchase communications) by marketers in an attempt to accomplish information and persuasion objectives. 18 Marketing Communications Strategy 18-7

9 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Marketing and Marketing Communications Mix 18 Marketing Communications Strategy Figure Marketing Mix Product Price Distribution Marketing communications Marketing Communications Mix Personal selling Nonpersonal selling Advertising Sales promotion Point-of-purchase communications Public relations Sponsorship marketing Publicity

10 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Personal Selling A sellers promotional presentation conducted on a person-to-person basis with the buyer. 18 Marketing Communications Strategy 18-9

11 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Nonpersonal Communication (1 of 3) Advertising Paid nonpersonal communication through various media by business firms, nonprofit organizations, and individuals who are in some way identified with the advertising message and who hope to inform or persuade members of a particular audience. 18 Marketing Communications Strategy 18-10a

12 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Nonpersonal Communication (2 of 3) Sales Promotion Those marketing activities, other than personal selling, mass media advertising, and publicity hat stimulate consumer purchasing and dealer effectiveness. Public Relations A firms effort to create favourable attention and word-of-mouth. 18 Marketing Communications Strategy 18-10b

13 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Nonpersonal Communication (3 of 3) Sponsorship Marketing The practice of promoting the interests of a company by associating the company or a brand with a specific event. Point-of-Purchase Communications Materials designed to influence buying decisions at the point of purchase. 18 Marketing Communications Strategy 18-10c

14 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Factors That Influence the Marketing Communications Mix 18 Marketing Communications Strategy Table 18.2 EMPHASIS ON FACTORPersonal Selling Advertising Objectives of theAffects all decisions in the Marketing Planmix Actions of CompetitorsDecide whether to match competitors and/or to develop a different mix Nature of the Market Number of buyersLimited number Large number Geographic concentrationConcentrated Dispersed Type of customerBusiness purchaser Ultimate consumer Nature of the Product ComplexityCustom-made, complex Standardized Service requirementsConsiderable Minimal Type of goodBusiness Consumer Use of trade-insTrade-ins common Trade-ins uncommon Stage in the ProductIntroductory and early Latter part of growth Life Cyclegrowth stages stage and maturity and early decline stages PriceHigh unit value Low unit value Funds AvailableAffects all decisions in the mix 18-11

15 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Pulling Strategy A promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel. 18 Marketing Communications Strategy 18-12

16 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Pushing Strategy The promotion of the product first to the members of the marketing channel, who then participate in its promotion to the final user. 18 Marketing Communications Strategy 18-13

17 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Relative Importance of Advertising and Selling 18 Marketing Communications Strategy Figure Selling Advertising Pre-transactionalTransactionalPost-Transactional Relative Importance Source: Harold C. Cash and W.J.E. Crissey, The Salesmans Role in Marketing, The Psychology of Selling, Vol. 12 (New York: Personnel Development Associates).

18 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Promotion Can Help Marketers Achieve Demand Objectives 18 Marketing Communications Strategy Figure Demand objective for the product Quantity Price Existing demand for a product 1 2

19 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Product Differentiation 18 Marketing Communications Strategy Figure Differentiated demand Quantity Price Homogeneous demand

20 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Promotion Can Accentuate the Value of the Product 18 Marketing Communications Strategy Figure Less responsive to price differences Quantity Price More responsive to price differences D1 D2

21 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Elements of Advertising Planning 18 Marketing Communications Strategy Figure Research Inputs Consumer research Product research Market analysis Consumer situation Making evaluations and adjustments Measuring the effectiveness of advertising Taking into account constraints and uncontrollable influences Strategic Decisions Setting objectives Defining target markets Determining advertising budget deciding media strategy Coordinating with other marketing factors Tactical Execution Establishing controls Writing and producing ads and commercials Selecting and scheduling media vehicles Market Impact Feedback Source: Excerpt from advertising: Its Role in Modern Marketing, 5th ed., by S. Watson Dunn and Arnold M. Barban, p Copyright © Reprinted with permission of South-Western, a division of Thomson Learning: Fax

22 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. How Much Should be Spent on Marketing Communications? Percentage of Sales Fixed Sum per Unit Meet Competition Task-Objective Method 18 Marketing Communications Strategy 18-19

23 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Task-Objective Method A sequential approach to allocating marketing communications budgets that involves two steps: 1)defining the realistic communication goals the firm wants the marketing communications mix to accomplish, and 2)determining the amount and type of marketing communications activity required to accomplish each of these objectives. 18 Marketing Communications Strategy 18-20

24 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Direct-Sales Results Test A test that attempts to ascertain for each dollar of promotional outlay the corresponding increase in revenue. 18 Marketing Communications Strategy 18-21

25 Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Value of Marketing Communications Business and Nonprofit Enterprise Importance Economic Importance Social Importance 18 Marketing Communications Strategy 18-22


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