Communication Strategy and IMC MKT 460 (Strategic Marketing) Taufique Hossain

The marketing communications mix The internet and digital technologies have enabled new interactive forms of communication, where the receiver has greater responsibility for their part in the communication process A traditional model of the marketing communication mix

Figure 1.1 The tools and position of the marketing communications mix Fill 2009

Figure 1.2 Above-and below-the-line communications Fill 2009

Selection Criteria Degree of control required over delivery Financial resources available (cost) Level of credibility Ability to deliver message (communications) Size and geographic dispersion of target audiences

Key Characteristics of Tools ADVERTISING Non-personal mass communication High reach Impact High cost Low credibility? Difficult to measure

Key Characteristics of Tools SALES PROMOTION Used tactically in short term Aim is often to increase sales High control and measurement Moderate cost Can be used throughout distribution channel Credibility may be questioned

Key Characteristics of Tools PERSONAL SELLING Interpersonal communications tool (two way) Instantaneous feedback possible Message can be tailored High cost More suitable where message is complex

Key Characteristics of Tools DIRECT MARKETING Any form of direct response communications Targets individual customers (database) Can deliver personalised message Builds relationships Facilitated by technological developments Moderate absolute cost but cost per contact high

Key Characteristics of Tools PUBLIC RELATIONS Non-personal Wide range of tools available High credibility Low cost

Figure 1.3 The relative effectiveness of the tools of the marketing communications mix Fill page 25

Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools of marketing communications Fill

Major communication tools Use Examples Advertising Efficiently gets message to large audience Television and radio commercials and new paper ads; paid search engine links; product and company brochures; billboards; transit ads; ads delivered by cell phone and emails Sales promotion Stimulate immediate purchase; reward repeat purchase Samples, coupons, premiums, contests, games, incentives Public relations Build positive image, strengthen ties with stakeholders Event sponsorship, news release, briefings, speeches and blogs, public appearance Direct marketing Reach target audience, encourage direct response Mail, email, telemarketing campaigns, printed and online catalog, direct response tv and radio Personal selling Reach customers one to one to make sales, strengthen relationships Sales appointment, sales meetings and presentation, online sales chat help

New Tools, New Media Broadcast advertising (TV/radio) Print advertising (newspaper/magazine) Interactive/internet marketing Website/on-line advertising Outdoor/billboards Mobile/Wap Personal selling Telemarketing Packaging Direct marketing Publicity/PR Point of purchase Product placement Sales promotion Word of mouth Events & sponsorship

Product Placement

The Marketing Communications Planning Process Context analysis Communication objectives Marketing communications strategy Communications mix [tools and media] Scheduling and Implementation Resources Evaluation and control Feedback

Context Analysis Can relate to environmental analysis undertaken by marketing> SWOT PEST Should adopt a communications focus: Customer -Segmentation Business – Corporate and marketing strategy, Competitor analysis Internal – Financial, Culture, Value, Marketing expertise External – Stakeholders, PEST

Lucozade Sport: Award Winning Campaign

Lucozade Sport: Understanding the market context Non-alcoholic Alcoholic Water Juice Milk Tea Coffee Lucozade Other Carbonated soft drink Power ade Energy Non-energy

Lucozade Sport: Business Context Launched in 1990, by 2004 had grown to £50m brand Strong year on year growth In 2004 sales and usage fell sharply Pepsi’s Gatorade and Coca Cola’s Powerade are main competitors 2005 Powerade redesigns packaging and attracts market aggressively Only 18% of sports participants drinking Lucozade Sport by 2004

Determination of Objectives Value of objectives: Focus and coordination They help to orient everyone involved toward a common goal Guide for strategy formulation They serve as criteria for developing strategy and making decisions Measurement & control They provide the standards and benchmarks for evaluating results

Objectives Objectives should consist of three main element: Corporate objectives – business or marketing plan, mission Marketing Objectives – sales objectives, market share, ROI Marketing communication objectives – Current context, Current Brand identity, Future context

Lucozade Sport: Campaign Objectives Getting associated with sport preparation so that the brand would be consumed before sport [Before] Giving the product functionality and scientific credentials to raise credibility [Fuel] Reduce the claim and align the brand to small but meaningful sport events [Edge]

Strategy Guides the direction, approach and implementation of an organisation’s desired marketing communications >Push >Pull >Profile Planning is about the formalisation of the strategy and ideas into a manageable sequence of activities that can be resourced and implemented.

Figure 12.5 Marketing communication strategic eclipse

Figure 12.2 The direction of communication in a pull strategy

Pull Strategy This will “pull” products through the distribution channels Promote to consumers and users in order to “create” demand Emphasis on mass media advertising

Figure 12.3 The direction of communication in a push strategy

Push Strategy Products “pushed” through the distribution channel Promoting heavily to members of the distribution channel eg retailers, wholesalers, agents It is assumed that they will in turn promote heavily to the end consumer Emphasis on personal selling and sales promotion

Figure 12.4 The direction of communication in a profile strategy

Profile Strategy Communications to ‘stakeholder’ groups Focuses on development of corporate image and reputation Awareness, perception and attitudes held by stakeholders towards an organisation need to be understood and acted upon Dialogue required which will normally lead to development of trust and commitment

Product life cycle stage and communication Introduction High initial expenditure Advertising to create awareness Sales promotion to create trial, retailer acceptance Growth Less intense communication activity Shifts away from awareness to brand equity building Advertising as a prime means of image creation Each stage of the product life cycle requires a different communication strategy. Growth- less information giving; more image building

Product life cycle stage and communication Maturity Reminding and reassuring Decline Low levels of advertising and sales promotion Maturity- defensive and holding operation Blanket application of this model is not good; Coke is a mature brand that keeps reinventing tself to keep it relevant and appealing to the teenage section. So, if you follow their communication, you will find that they keep coming up with new ideas, themes, etc which might resemble communication for earlier stages.

Coordinated communication mix Figure 1.1 The tools and position of the marketing communications mix Fill 2009

Lucozade Sport: Communications Mix Advertising Press/TV Sponsorship Talksport Product Placement Sports Science Academy Relationship building

Resources: Budget Planning Four commonly used approaches to setting the budget: All you can afford Percentage of sales Competitive expenditure Objective & task

Scheduling/Implementation Agency v In-house Creative Copy Production Printing Media planning and booking Distribution Timescale? Competitors? Environment

Monitoring & Evaluation of performance Contingency planning Feedback

Evaluation Techniques Complex especially in the case of integrated campaigns. Each element of the mix may be measured in a different way to capture individual contribution. Examples of some measurement techniques: > Recall and recognition tests (TV advertising) > Tracking studies (advertising) > Column inches (PR) > Coupon redemption (sales promotion) > “hits” (online) > Sales??????????

Lucozade Sport: Campaign Evaluation Year on year sales Penetration level among sports participants Credibility of essential role in sports preparation

Integrated Marketing Communications (IMC) The triangulated use of combinations of media emanating from the belief that image advertising, sales promotion, direct response advertising and marketing public relations are not mutually exclusive disciplines and that incorporating elements of each into communication materials may lead to a triangulation in effects Nowak and Phelps, 1994 Integrated marketing communications is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programmes over time Schultz, 2004

Figure 11.1 Elements for integration

The Case for IMC Reduce costs Streamlines company/agency relationships Achieve synergy across mix Supports brand and brand positioning in crowded market place Fosters customer focused Requires cultural shift and employee participation

The Case against IMC Encourages rigidity and inflexibility? Decision making becomes more centralised Loss of creativity Increased time and bureaucracy Internal resistance Need for global brands to be adapted? Could damage brand if one/some elements do not fit effectively

Management Fashion? “ IMC is a management fashion, apparent in its lack of definition and transient influence and its influence upon practice should be conceived accordingly” “ Despite its pervasive penetration in the marketing and communication management world, little has been said, however, about IMC’s theoretical robustness as well as its actual significance for marketing and advertising thought and practice” Cornelissen & Lock 2000

The marketing communications mix An Integrated Marketing Communication Mix A contemporary model of the marketing communication mix