1. COURSE TITLE : MARKETING MODULE 9: Making Communication Decisions
Ashesi University
COURSE TITLE : MARKETING
SEMESTER : FIRST, 2010/2011
MODULE 9: Making Communication Decisions
Lecturer: Ebow Spio

2. Learning Outcomes Explain the key models of communications
Define and explain the roles of marketing communications to differentiate, remind or reassure, inform and persuade (DRIP)
Outline the steps in developing effective marketing communications
Define the five promotion tools and their roles and discuss the factors that must be considered in shaping the overall promotion mix
Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix

3. Definition of Communications
Communication is the process whereby
thoughts are conveyed and meaning is
shared between individuals or between
organizations and individuals

4. COMMUNICATION MODEL NOISE Sender Message Receiver Encode Decode
Feedback Loop

5. COMMUNICATION MODEL
Sender: The person sending the message to another person
Encoding: The process of putting the intended message or thought into a symbolic form
Message: The set of words, pictures or symbols that the sender transmits
Decoding: The process by which the receiver assigns meaning to the symbols encoded by the sender
Receiver: The person receiving the message sent by another person
Response: The reactions of the receiver after being exposed to the message e.g. awareness of attributes, buy etc.
Feedback: The part of the receiver’s response communicated back to the sender
Noise : The unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent

6. Integrated Marketing Communications
Marketing Communication is a management process through which an organisation enters into a dialogue with its various audiences.
Integrated marketing communication (IMC) is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands

7. Integrated Marketing Communications
IMC considers all sources of brand & company contacts which a customer or prospect has with a product or service as a potential delivery channels for future message.
Integrated marketing communication involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response

8. Purposes of Communication
Differentiate products and services
Remind and reassure customers and potential customers
Inform
Persuade targets to think and act in a particular way.

9. Promotional Tools Personal Selling Branding Sales Promotion
The Customer
Personal Selling
Branding
Sales Promotion
Sponsorship
Public Relations
Advertising
Merchandising
Packaging
Direct Marketing
Exhibitions
Corporate
Image
Internal
Marketing
Word of Mouth

10. The Promotion Mix
The promotion mix is the specific blend of advertising,
public relations, personal selling, and direct-marketing
tools etc that the company uses to persuasively
communicate customer value and build customer
relationships
14--4

11. Steps in Developing Effective Communications Plan
CONTEXT ANALYSIS
Key Issues
COMMUNICATION OBJECTIVES
Market
Research
COMMUNICATION STRATEGY
Target Audience
Positioning
Choice Promotional Mix
Push, Pull and Profile Strategy
Creative and Media Strategy
INTEGRATED COMMUNICATION
PLAN
Budgets
Scheduling
Implementation

12. Steps in Developing Effective Communication
Determining the Communications Objectives
Marketers seek a purchase response that results from
a consumer decision-making process that includes the
stages of buyer readiness
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
SMART objectives
Example: “The marketing communications objective for the period January-March 2003 is to create 65% prompted awareness in the ABC1, male year old age group and those earning £25,000 plus”
14-24

13. Promotion Tools : Advertising
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods,
or services by an identified sponsor through
mass media with the purpose of achieving set
objectives such as creating awareness or
encouraging trial.
Used to differentiate, remind, inform
and persuade

14. Stages in Developing Advertising Campaign
Define campaign responsibilities
Define target audience
Set campaign objectives
Set budgets
Media Selection and planning
Advertising development and testing (message strategy, creative concept & message execution)
Implementation and scheduling
Campaign evaluation

15. Developing Advertising Campaign: Message
Message strategy is the general message that
will be communicated to consumers. Focus largely
on consumer benefits.
Creative concept is the idea that will bring the
message strategy to life and guide specific
appeals to be used in an advertising campaign
Characteristics of the appeals include:
Meaningful
Believable
Distinctive

16. Developing Advertising Campaign: Message
High involvement
Rational product attribute appeals
Information provision
Benefit claims
Low Involvement
Emotional image-based appeal
Social, ego, hedonic orientation

17. Developing Advertising Campaign: Message
Message Execution :Four elements important:
• The balance : information vrs pleasure
• The structure: conclusion drawing, One or two sided message, Primary vrs recency
• The source/credibility : company, opinion leader or former
• Message Execution Styles : Information (factual, slice of life, demonstration, comparative advertising) vrs Emotion & Feeling (fear, humour, animation, sex, music, fantasy)
Personality Symbol, Scientific Evidence, Technical Expertise, Testimonial Evidence & endorsement

18. The Communications Industry
The media
The clients
The agencies : An agency represents an external supplier which an organization contracts to provide services that assist in the creation and implementation of effective communications.
Support organisations

19. Communications Industry
Statutory & Self-Regulatory Control -
Advertising Association of Ghana
National Media Commission
Private Newspaper Publishers of Ghana
Advertisers Board
Food and Drugs Board
National Communication Authority

20. Agency Types
1. Full service : These provide full wide range of services
2. Limited Service Agencies: Specialize in specific elements of the marketing communications process such as design or new media
Direct Marketing
Creative Hot Shops
Sales Promotion
Media Buying Houses
Design Studios PR
A la Carte Agencies
An a la carte agency co-ordinates a range of specialist agencies on behalf of an organization and outsources the work across a range of other specialist agencies. This option provides great flexibility but integration of campaigns can be problematic.

21. Agency Structure: Full Service Agencies
Full Service Agencies : These agencies provide a full range of services
Market
Research
Creative
Strategic
Production
Media Planning
Advantages : 1. Huge pool of staff under one roof that can be drawn on as needed
2. New different perspectives on communication problems may be
gained
3. Easier to manage integrated marketing communication under
one roof.
Disadvantages: Having your eggs in one basket. A gap is created when relationship breaks down.

22. Agency Structure Board of Directors - Finance, direction of company
Company Management
Board of Directors - Finance, direction of company
Account Management
Account Directors, Managers and Executives -
liaison with and developing clients
Creative Staff
Generally in two man teams visualiser and
copywriter
TV Staff
Internal production staff
Art Staff
Make up the ads, story boards etc.

23. Agency Structure Traffic Staff
Make sure all the elements come together
Media Staff
Buying, TV air time, press, posters, radio, cinema
etc.
Planning Staff
Developing advertising strategy and tactics for
clients
Admin Staff
General administration billing of clients etc.

24. Agency remuneration Fees Media percentage 10% - 15%
Print mark up 17.65% +
Performance related
Hourly rate
Project by project quotes

25. The Agency brief
The success or failure of the implementation of a communications campaign can depend on the quality of the brief given to the agency. It is not easy to brief.
Briefing Outline:
Current situation
Promotional Objectives
Target Markets
Product/Service
Budget
Competitors
Time Scales

26. Advertising Brief Format
Why do we want new brand communication? Launch,
What consumer understanding or insight drives this brief?
Who is our target audience?
What do they think and do now? State of mind or current behaviour
What would we like them to think and do in response to the advertising? Objectives
What is most likely to achieve this change? (i.e. the differentiator or unique selling proposition) Could be functional as well emotional
Why should they believe it? Supporting evidence
Practical Considerations : e.g. type of ad, media, duration

27. Sales Promotion Marketing activities or techniques which are
intended to stimulate quick buyer action by
offering extra benefits or added value. The key
aim may be to accelerate sales or generate
trials. E.g. free sampling, premiums, coupons

28. Sales Promotion Offers buyers additional inducement to buy
Can be targeted at consumers,
intermediaries and the sales force
Reach new customers
Reduce distributor risk
Reward behaviour
Retention
Assist segmentation
Improve efficiency

29. Increasing Emphasis of Sales Promotion
Short termism (Target pressure)
Management Accountability
Brand Performance and Retail Technology advancement
Brand expansion and challenges of vast spectrum of choice
Competing brands offer less differentiation
Competition for shelf space
Consumers have become deal oriented.
Retailers demanding more deals from suppliers

30. Objectives of Sales Promotion
To stimulate trial
To level out demand fluctuations
To increase usage
To encourage trading up
To stem competitor move
To maintain shares
To increase customer loyalty

31. Sales Promotion Consumer promotions: Targeted End user
Types of Sales Promotions
Consumer promotions: Targeted End user
Trade promotions : Targeted at the intermediaries e.g. wholesalers, retailers
Sales force promotions

32. Sales Promotion :Consumer Promotion Tools
Patronage rewards
Point of purchase displays
Demonstrations
Contests
Sweepstakes
Games
Samples
Coupons
Cash refunds
Price packs
Premiums
Advertising specialties
16-58

33. Sales Promotion :Trade Promotion Tools
Trade promotion tools persuade resellers to:
Carry a brand
Give the brand more shelf space
Promote the brand in advertising
Push the brand to consumers
16-63

34. Sales Promotion :Trade Promotion Tools
Trade promotion tools include:
Discount
Allowance
Free goods
Specialty advertising

35. Sales Promotion : Business Promotions Tools
Business promotion tools are used to:
Generate leads
Stimulate purchases
Reward customers
Motivate salespeople
Conventions and trade shows
Sales contests

36. Public Relations
Public relations involves building good relations with the
company’s various publics by obtaining favorable publicity,
building up a good corporate image, and handling or
Heading off unfavorable rumors, stories, and events
Publicity involves the dissemination of messages through
third party media, such as magazines, newspapers or news
programmes.
Public relations is used to promote product, people, ideas,
and activities

37. Public Relations : Publics
Publics consist of the following
Customer Groups
Opinion Leaders and formers
Local and central government
Investors/shareholders
The media
Current and potential employees
Trade unions
Local community
Suppliers

38. Public Relations Objectives
To create/maintain corporate/brand image
To raise an organisation’s profile (position and standing in public)
To enhance the perception of an organisation
To disseminate information
To overcome poor publicity
To communicate the organisation’s ethos or philosophy or corporate values.
To manage crisis
To guide and disseminate internally organizational change initiative

39. Public Relations : Elements of Corporate Identity
Corporate image
Corporate personality
Culture (values, beliefs,
Strategic process
Way company carries is
business
Overall strategic
Purpose
NB: What an organisation actual is
Formation of cues by
which stakeholders can
recognize the organisation
Products & services
Where made and
distributed
How it communicates
with stakeholders
How it behaves
NB: How organisation presents itself to stakeholders
Influenced by
identity
Values, beliefs
and attitudes held
about the
Organisation
NB: What stakeholders perceive an organisation to be

40. Public Relations: Factors Affecting Corporate Image
Image Destroying Activities
Image Building Activities
Discrimination
Harassment
Pollution
Misleading communications
Deceptive communications
Offensive communications
Empowerment of employees
Charitable contributions
Sponsoring local events
Selling environmentally safe products
Outplacement programs
Support community events

41. Typical PR Techniques Press releases Press conferences Publications
Media relations
Investor Relations
Events
Annual reports
Lobbying: presentation of papers to parliament or government
Private public sector partnership

42. Personal Selling
Interpersonal communication tool which involves face-to-face activities undertaken by individuals, often representing an organisation, in order to inform, persuade or remind an individual or group to take appropriate actions

43. Personal Selling Involves face to face dialogue
• Gives flexibility of message
• Immediate feedback gained
• Very useful in business to business
markets
• Very useful when products and
services are complex

44. Personal Selling: Sales Force Objectives
To increase sales turnover
To reduce the number of clients under certain order levels
To reduce cost of sales
To increase the number of distribution outlets

45. Tasks of Personal Selling
Orders : Getting or Taking
Prospecting
Communicating
Selling
Market Research and Information gathering
Servicing Account
Allocating
Customer relationship

46. The Personal Selling Process
Prospecting for customers
Qualifying prospects
Developing the relationship
Presenting the sales message
Handling queries and objections
Closing the sales
Providing the service and support
Developing the relationship and maintaining commitment

47. Personal Selling Set objectives Know the customer
Know your product and service
Planning saves time
Develop a system
Good Presentation : Ask Questions, learn to listen, uncover needs primary/secondary, address concerns, position yourself properly, present ultimate benefits, close sale

48. Support for Sales Force
Provide Information : product knowledge
Potential Lead
Client History
Financial Report
Promotional Materials
Sales Aids e.g. samples
Promotion plans
Brand Performance : e.g. numeric distribution, shares etc.

49. Personal Selling
Personal selling is the most expensive element of the marketing communication mix
It is resource intensive
It is time ineffective
It incurs high contact costs

50. Direct Marketing
Direct Marketing is a strategy used to create personal and intermediary free dialogue with customers
It is an interactive system which uses one or more advertising media to effect a measurable response at a location
e.g. Direct Mail, mail order, Telephone sales, direct response advertising

51. Direct Marketing Disseminate information Generate sales leads
Increase repeat orders
Build a relationship

52. Direct Marketing
Used to create a personal dialogue with customers and stakeholders (not through an intermediary)
Breakthrough ad clutter
Better Targeting to reduce waste
• Widely used
• Technology enabled

53. Direct Mail
Direct Mail refers to personally addressed advertising that is delivered through postal system.
It can be personalised and target with great accuracy and its results are capable or precise measurement

54. Telemarketing
This is approaching customers or prospects through the phone.
The scope
To generate sales leads
To screen leads prior to following up
To arrange appointments for sales representatives
To direct sales
To encourage cross/upward selling
To provide dealer support
To manage and service accounts
To undertake market research
To undertake test marketing

55. Direct Response Advertising
It is another form of direct marketing and appears in the standard broadcast and standard print media.
Different from other forms of advertising as it actually demands a response by giving a website address, telephone number or coupon for personal visit.

56. E-Media Internet can provide on-line versions
of other promotional tools
• Good for providing information
• Cost-effective
• Can be good at prompting immediate
action

57. Criteria for the review of promotional tools
Communications
Ability to reach out large audience, or interaction or personal feedback
Costs (Financial Resources) : This the cost involved in sending a message to target audience.
Control : Intended message is transmitted and received by the target audience.
Credibility : Borders on the objectivity of the message

58. Characteristics of promotional tools - Communications
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
Ability to deliver a personal message
Low
High
Ability to reach a large audience
Medium
Level of interaction
Credibility given by target audience

59. Characteristics of promotional tools - Costs
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
Absolute costs
High
Medium
Low
Cost per contact
Wastage
Size of Investment

60. Characteristics of promotional tools - Control
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
Ability to target particular audience
Medium
High
Low
Management’s ability to adjust the deployment of the tool as circumstances change

61. Communication Strategies
To accomplish promotional objectives, strategies are needed to meet goals that have been set. There are 3 broad strategies namely
Pull Strategy
Push Strategy
Profile Strategy

62. Communication Strategies: Pull, Push and Profile communications
Pull – aims to encourage customers to ‘pull’ products through the channel
Push – aims to communicate with members of the channel to encourage them to ‘push’ products through the channel
Profile – aims to develop corporate reputation and image

63. Communication Strategies: Pull Strategy
A pull strategy is a marketing communications approach which involves the delivery of messages to members of the target audiences/consumers (Final Consumer)
The aim is to stimulate demand by encouraging consumers to “pull” products through the channel network
This usually means consumers go into retail outlets or shops to enquire about particular products

64. Pull Strategy
Pull Strategies can be used to achieve any of the following goals:
Inform about a new product or raise levels of awareness of an existing product.
Persuade a target audience to try a product or take part in a sales promotion
Build or reinforce attitudes
Differentiate a brand from its competitors
Remind lapsed customers of brand values

65. Push Strategy
A push strategy is a marketing communications approach which involves communication with members of the marketing channel networks. This is vital to make products available to end users or consumers.
This strategy is designed to facilitate resale to other members of network and contribute to achievement of their own objectives.
It is essentially aimed at “pushing” the product down through the channel towards the end-users

66. Push Strategy
The purpose of push strategy is to achieve the following amongst intermediaries:
To help distributors/retailers understand the attributes and benefits of each products
Persuade intermediaries to take stock, provide facilities (e.g. shelf space) and preference over other suppliers
Build long term relationship with intermediaries
Get intermediaries to become advocates of the products
Differentiation so that intermediaries can understand how a product offering is positioned.
Provide coordination, the exercise of power and encouragement of loyalty and commitment, so as to reduce likelihood of tension

67. Profile Strategy
Corporate communication is a communication where the organisation itself or its identity is the focus of the campaign rather than the product or service or other offerings. It is the organisation and its role in context of a particular stakeholders activities that is important
The awareness, perception and attitudes held by stakeholders towards an organisation needs to be understood, shaped and acted upon. This can be accomplished through continual dialogue, which can lead to the development of trust and commitment and enable relationships to grow. This is necessary in order that stakeholders think and act favourably towards an organisation and enable the organisation develop strategies that are compatible with the environment and its own objectives

68. Profile Strategy
Profile Strategy provides stakeholders such as investors and employees with information about the organisation rather than products/services that enables them to perceive and position an organisation in a desired corporate image
They are used to convey information about its performance and policies to encourage investors and/or attract employees
They can also be used to provide consistent messages to internal audiences.
An organisation’s corporate communications are bound by its identity.

69. Media Department Functions
Plan and buy – time and space in appropriate media vehicles
Task of the media planner: Deliver advertising messages through a selection of media which match the viewing and/or reading habits of the target audience at the lowest possible cost.
Selection: refers to the choice of media vehicles to carry the message on behalf of the advertiser
Scheduling: Refers to the number of occasions, timing and duration that a message is exposed in the selected vehicles to the target audience.

70. Types of media available
Broadcast - TV & Radio
• Print - Newspapers & Magazines
• Outdoor - Billboards & Transit
• New Media- CD-ROM, Internet, Website, SMS, mobile phone etc
• In-Store - POP & packaging
• Other - Cinema, product placement,
Exhibitions, etc

71. Television Advantages: • Visual and audio capabilities
Reaches large audiences
• Visual and audio capabilities
Maximum flexibility for gaining attention
• Short lead time to place ad.

72. Television Disadvantages: • Relatively expensive.
Not easy to target selected audiences.
• Relatively expensive.
• Requires production specialists.
• Short exposure time.

73. Magazine Advantages Reaches demographic and geographic segments.
• High Quality reproduction.
• Ad lasts as long as magazine is kept and
read.
Ad benefits from magazine’s credibility.

74. Magazine Disadvantages Must place ad well in advance of publication.
• Limited flexibility to gain attention.
No complete control of location of ad in a in magazine

75. Newspaper Advantages Reaches large audience.
Segments audiences by local, regional and national.
Short lead time to place ad.
Credibility of newspaper can benefit ad.

76. Newspaper Disadvantages May be expensive.
• Little flexibility for creative messages.
Limited reproduction quality (e.g. Use of colour).
Short life of newspaper carries over to ad.

77. Outdoor Advantages • Relatively inexpensive?
• Many repeat exposures for one appearance
Disadvantages
Only a very limited message is possible.
Cannot segment audience
Very short exposure time..

78. Radio Advantages Audio capabilities. Relatively low costs.
Short lead time to place ad.
Segments audiences demographically and geographically.
Reaches large audiences.

79. Radio Disadvantages • No visual capabilities. • Short exposure time.
• Little flexibility to gain attention?

80. How Do You Decide Which Media To Use?
Audience Size
If you want to advertise nationally, exclude
regional newspapers, etc.
If you are testing, a regional test can be the
best way.
Audience Type
What is your target market?
Would you advertise Mmaa Nkomo on Atlantis
FM?

81. How Do You Decide Which Media To Use?
Audience State Of Mind
Can ‘Drive To Work’ Radio deliver a complicated
message?
• Budget
What is the cost of promotion?
Is there a minimum cost of space?
What is the cost per thousand?
• Message Objective
Is colour/ sound needed?
Do you want to demonstrate the product?
Is there a lot of technical detail?

82. How Do You Decide Which Media To Use?
Is there a need for urgency?
Is the media compatible?
Would Rolls Royce and Mercedes Benz advertise in the P & P ?
• Ease of buying
Lead times for space and production can impact?
Are your competitors using the same media?

83. Factors responsible for the emergency of New Media
Changing dynamics: demographics & life style
Increasing competition
Customer power
Fragmentation of the media
Increasing cost of media
Emerging distribution channel
New technologies

84. The Marketing Communication Budget
Who decides the budget?
When is it set?
How is the decision reached?
Special cases for expenditure

85. The Marketing Communications Budget
Objective & task
Affordable Method
New products
Residue of last year’s surplus
Percentage of previous year’s sales
Desired share of voice
Percentage of anticipated turnover
Media Inflation
Competitive-Parity Method