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Marketing Communications Strategy

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Presentation on theme: "Marketing Communications Strategy"— Presentation transcript:

1 Marketing Communications Strategy
18 Marketing Communications Strategy Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

2 18 Objectives Marketing Communications Strategy
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. 18-1 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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

4 18 Marketing Communications Strategy Figure 18.1 Integrating the Marketing Communications Plan into the Total Marketing Mix Personal Selling Produces Utility for Combined with Integrated marketing communications strategy Other aspects of the marketing program: Product Distribution Pricing strategy strategy strategy Consumer Marketing Manager Sets goals & objectives Nonpersonal Selling Feedback 18-3 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

5 Integrated Marketing Communications (IMC)
18 Marketing Communications Strategy 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. 18-4 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

6 The Process of Marketing Communications
18 Marketing Communications Strategy Figure 18.3 The Process of Marketing Communications Sender Marketing Manager Encoding Sales presentations, ads, displays, publicity, releases Transfer Mechanism Salesperson, print or electronic Advertising media, direct mail, internet, public relations channel Noise Feedback Advertising research, field reports, inventory movements Response Attitude change or decision Decoding Customer/receiver Interests message 18-5 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

7 Examples of Marketing Communications
18 Marketing Communications Strategy Table 18.1 Examples of Marketing Communications TYPE OF TRANSFER DECODING BY PROMOTION SENDER ENCODING MECHANISM RECEIVER RESPONSE FEEDBACK Personal Canon Office Sales Canon sales Office manager Order placed Information that selling Equipment presentation representative and employees Canon copier for customers are on new model in local firm reacting positively office copier discuss Canon to the message sales presentation and those of competing suppliers Two-for-one Wendy's Wendy's Coupon inserted Newspaper Hamburgers Information that coupon(sales Hamburgers marketing in weekend reader sees purchased by customers are promotion) department and newspaper coupon for consumers using reacting positively advertising hamburger the coupon to the message agency and saves it Television Movie producer Advertisement Network Audience sees Small number Communication advertising for a new movie television during ad but few of movie tickets failed to interest is developed by programs with decide to go to purchased and motivate the the producer's high percentage the movie target market advertising of viewers in agency target market 18-6 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

8 Marketing Communications Mix
18 Marketing Communications Strategy 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. 18-7 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

9 The Marketing and Marketing Communications Mix
18 Marketing Communications Strategy Figure 18.4 The Marketing and Marketing Communications Mix 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 18-8 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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

11 Nonpersonal Communication (1 of 3)
18 Marketing Communications Strategy 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. 18-10a Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

12 Nonpersonal Communication (2 of 3)
18 Marketing Communications Strategy 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 firm’s effort to create favourable attention and word-of-mouth. 18-10b Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

13 Nonpersonal Communication (3 of 3)
18 Marketing Communications Strategy 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. 18-10c Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

14 Factors That Influence the Marketing Communications Mix
18 Marketing Communications Strategy Table 18.2 Factors That Influence the Marketing Communications Mix EMPHASIS ON FACTOR Personal Selling Advertising Objectives of the Affects all decisions in the Marketing Plan mix Actions of Competitors Decide whether to match competitors and/or to develop a different mix Nature of the Market Number of buyers Limited number Large number Geographic concentration Concentrated Dispersed Type of customer Business purchaser Ultimate consumer Nature of the Product Complexity Custom-made, complex Standardized Service requirements Considerable Minimal Type of good Business Consumer Use of trade-ins Trade-ins common Trade-ins uncommon Stage in the Product Introductory and early Latter part of growth Life Cycle growth stages stage and maturity and early decline stages Price High unit value Low unit value Funds Available Affects all decisions in the mix 18-11 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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

16 18 Marketing Communications Strategy 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. 18-13 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

17 Relative Importance of Advertising and Selling
18 Marketing Communications Strategy Figure 18.5 Relative Importance of Advertising and Selling Selling Relative Importance Advertising Pre-transactional Transactional Post-Transactional 18-14 Source: Harold C. Cash and W.J.E. Crissey, “The Salesman’s Role in Marketing,” The Psychology of Selling, Vol. 12 (New York: Personnel Development Associates). Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

18 Promotion Can Help Marketers Achieve Demand Objectives
18 Marketing Communications Strategy Figure 18.6 Promotion Can Help Marketers Achieve Demand Objectives Demand objective for the product 2 Price Existing demand for a product 1 Quantity 18-15 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

19 Product Differentiation
18 Marketing Communications Strategy Figure 18.7 Product Differentiation Differentiated demand Price Homogeneous demand Quantity 18-16 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

20 Promotion Can Accentuate the Value of the Product
18 Marketing Communications Strategy Figure 18.8 Promotion Can Accentuate the Value of the Product Less responsive to price differences Price More responsive to price differences D1 D2 Quantity 18-17 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

21 Elements of Advertising Planning
18 Marketing Communications Strategy Figure 18.9 Elements of Advertising Planning Research Inputs Consumer research Product research Market analysis Consumer situation Feedback Making evaluations and adjustments Strategic Decisions Setting objectives Defining target markets Determining advertising budget deciding media strategy Coordinating with other marketing factors Taking into account constraints and uncontrollable influences Measuring the effectiveness of advertising Market Impact Tactical Execution Establishing controls Writing and producing ads and commercials Selecting and scheduling media vehicles 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 18-18 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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

23 Task-Objective Method
18 Marketing Communications Strategy 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. 18-20 Copyright © 2003 by Nelson, a division of Thomson Canada Limited.

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

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


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