Presentation on theme: "2012/2013Author: Dr P.Harborne1 Principles Of Marketing BS2101 Lecture 9 Communicating the Offer."— Presentation transcript:
2012/2013Author: Dr P.Harborne1 Principles Of Marketing BS2101 Lecture 9 Communicating the Offer
2012/2013Author: Dr P.Harborne2 Principles of Marketing 2 3 4 5 6 7 8 9 10 Week 1 11
2012/2013Author: Dr P.Harborne3 Communicating the Offer Objectives To understand: The marketing communications process Types of marcomms Strengths of each type of marcomm Barriers to effective communication Key issues in effective communication
2012/2013Author: Dr P.Harborne4 Structure Communicating the offer 1.Communication process 2.Advertising 3.Targeting Adverts 4.Promotion through spokesperson 5.Promotions 6.Public Relations
COMMUNICATION PROCESS 2012/2013Author: Dr P.Harborne5
2012/2013Author: Dr P.Harborne6 Integrating Communications Strategy
2012/2013Author: Dr P.Harborne7 Sender Assembles message into words, pictures etc Final message Communicated via chosen media Receiver Interprets message Receiver’s response What they learn, feel, do as a result of the message eg purchase Feedback to sender e.g. complaints, commendations NOISE The Communications Process
2012/2013Author: Dr P.Harborne8 selective exposure: with thousands of newspapers, magazines, broadcasting stations, and websites to choose from, a person is only exposed to a small fraction of all commercial messages selective attention: of the 1600 or so commercial messages a person is exposed to every day, only about 80 are consciously noted selective distortion: people may twist a message to hear what they want or expect to hear selective retention: only a small fraction of decoded messages will be retained in long-term memory. Needs careful planning to reach target Communication Effectiveness depends on:
2012/2013Author: Dr P.Harborne9 Planning a Marcomms campaign Strategy issues: Who is our target audience? What do we need to communicate and achieve (objectives)? How much shall we spend? How well did we do? Media issues: How should we communicate this? (i.e. the message) Where should we communicate this? (promotion mix) When do communications need to take place? (promotion schedule)
2012/2013Author: Dr P.Harborne10 Target Audience Firms communicate both internally and externally e.g. Customers, suppliers, staff, channels, shareholders Different messages and media may be required for different target groups e.g. Communication about a new product channels and employees, more product-specific, technical information; manuals, information sheets consumers, more benefits-oriented; adverts, point-of- sale material Who?
2012/2013Author: Dr P.Harborne11 Coordination of Marketing Communication Efforts to Influence Attitudes or Behaviors Coordination of Marketing Communication Efforts to Influence Attitudes or Behaviors Builds Relationships Persuades Informs Reminds Promotion Objectives What?
2012/2013Author: Dr P.Harborne15 Advertising & Persuasion 1950s :Hidden Persuaders’ - mistrust of adverts Govts increasingly control –UK Ban on tobacco advertising –UK Control on alcohol advertising In UK consumption higher since adverts tightened in 2005 –UK Control on junk food adverts But does ‘go to work on an egg” revival ban ruin perceptions Calls for control on UK adverts for – 4x4 cars –Children ( already exists in Sweden) But does advertising really persuade?
2012/2013Author: Dr P.Harborne16 Subliminal advertising
2012/2013Author: Dr P.Harborne17 Knocking copy 1 1 2 From S Africa. This is not allowed in the UK.
Knocking copy 2 2012/2013Author: Dr P.Harborne18 3 4 From S Africa. This is not allowed in the UK
2012/2013Author: Dr P.Harborne19 Influencing consumers Current techniques Product placement – videogames, movies, TV programmes Interpersonal influences - pay people to order certain drinks in public places praise products at parties/events Are these really effective? Do you buy because James Bond does? Or because Brad Pitt does? Or because your next door neighbour does?
2012/2013Author: Dr P.Harborne20 Advertising and Business Advertising must be justified by business TV programme rely on adverts Sports coverage rely on adverts –FI racing –Premiership football If banned then will programmes be made? Will OFCOM 2010 policy change on product placement help? If watersheds, then will sports events be re- timed?
2012/2013Author: Dr P.Harborne21 Business Effectiveness Advertising must be justified for businesses Does there need to be dialogue i.e. interactive communication? Is personal communication required for some customers - salesforce (telesales, field force)? What is the actual cost of the message? How long does it take to work? Does it need tweaking? Need process to calculate costs and to track & control campaigns
2012/2013Author: Dr P.Harborne22 Percentage of sales method Affordable method Objective and task method Competitive parity method METHODS FOR BUDGETING PROMOTION Marcomms Budget How Much?
2012/2013Author: Dr P.Harborne23 Evaluation and Control A system must be put in place to assess the success (or not) of a campaign, e.g. Tracking studies Coupon returns Sales comparisons Complaints What could go wrong?
2012/2013Author: Dr P.Harborne24 Causes for poor response Low awareness Poor comprehension Low interest Low intentions Low purchase level –Poor media selection –Insufficient frequency –Poor ad copy –Insufficient frequency –Poor ad copy –Insufficient benefits –Weak value proposition –Poor ad copy –High price –High switching cost –Not readily available –Insufficient sales/service
2012/2013Author: Dr P.Harborne25 Building the elements Need to consider elements such as: –The message –The desired source of influence –The medium Need to integrate multi-media approach (see earlier) Consider Emirates & sponsorship of Arsenal Is it only Arsenal fans as the target?
2012/2013Author: Dr P.Harborne26 Sources of Influence
2012/2013Author: Dr P.Harborne27 Scheduling Communications need to be co-ordinated with the rest of the marketing activity e.g. –Product availability –May wish to coincide with related events eg Robinsons drinks and Wimbledon Turkeys at Christmas –Sometimes industry timetables e.g. major trade shows
2012/2013Author: Dr P.Harborne28 Advertising Includes: –TV –newspapers –magazines & periodicals –cinema –radio –billboards & posters –other media eg buses, taxis, petrol pumps, games Medium
2012/2013Author: Dr P.Harborne29 Comparison of Media TV –large audience –see product-in-use –sound and vision –relaxing environment –cable, satellite and digital provide scope to segment –expensive –consumers may find commercials irritating Cinema –similar advantages to TV –smaller audience –segmentation possibilities –often more welcome than TV ads (signals start of the programme)
2012/2013Author: Dr P.Harborne30 Newspapers –use of illustrations –long copy –large audience, regular purchasers –segmentation possibilities –short life spans Comparison of Media Billboards and Posters –high opportunity to see –low cost –segmentation possible –short and long term possibilities –subject to weather –environmental criticism
2012/2013Author: Dr P.Harborne31 Magazines –can integrate editorial with advertising –segmentation possibilities –long life spans –leisure reading –high readership compared to circulation –can involve audience –‘desert areas’ eg inside front, back pages Comparison of Media Commercial radio - growing in popularity - sound only, but intimacy - segmentation possibilities - small, often passive audience
2012/2013Author: Dr P.Harborne32 Internet –growth medium –consumers actively seeking information –can be interactive –sound, pictures and words –segmentation possibilities –on-line shopping –not yet at critical mass –they have to find you –access time can be slow Comparison of Media
2012/2013Author: Dr P.Harborne33 Advertising Co-branding Online advertising Mobile advertising Interactive digital television Interactive kiosks Permission-based marketing Contextual marketing Viral marketing Guerilla marketing Paying customers to check in with mobile phone (Quidco) Recent developments
2012/2013Author: Dr P.Harborne34 Recent developments Online advertising –Can be image on page, or paid link –But consider Facebook and concerns over adverts –Consider Second Life placement Contextual advertising – targets users based on keywords in message (e- mail, text) –Exploration of shop or mall based adverts/offers - mobile tele recognised & message sent BUT EC DIRECTIVES ON COOKIES & USE OF PERSONAL DATA (e.g Facebook)
2012/2013Author: Dr P.Harborne35 Recent Developments Permission-based i.e tick the box –Generates more response than mass marketing Viral marketing - exploits social networks –Uses funny clips, games,messages (text or e-mail) –‘satisfied’ customers circulate e.g. Old Spice adverts Guerilla marketing – ‘ambushing potential customers with promotional content in unexpected places’ in 2001, IBM painted “Peace loves Linux” on pavements in San Francisco & Chicago In June 2010 Dutch brewery (Bavaria) used orange mini- skirted women at World cup game
2012/2013Author: Dr P.Harborne36 Recent developments Paying customers to ‘check in’ Quidco, a cashback and voucher site released a mobile phone app in June 2011 Customers check-in on their phone while in-store - 25p for carphone Warehouse; 20p for Halfords; 15p for Majestic Wine Register a card with Quidco and also get cashback in Debenhams, Cineworld, Austin Reed Other sites with phone apps- MyVouchercodes; Petrol Prices Tescos & Sainsburys offer apps where your phone becomes the Clubcard or NectarCard
2012/2013Author: Dr P.Harborne37 Selecting Advertising Media Key factors Characteristics of target audience –Media usage behaviour, exposure Budget Creative constraints –Best presentation of the message eg visuals, colour Timing –Seasonality of offering; cost of media at different times Reach and frequency –How wide message needs to be spread, & how often
2012/2013Author: Dr P.Harborne38 Example Of Press Costs Daily Mail full page colour position not fixed £46- 50K (4.6m readers - 53% women;63% >55; 63% ABC1) Daily Telegraph full page colour £59K (Page 1 £68k) (1.9m readers – 56% men; 59% >55; 59% AB adults) Guardian full page colour )mono)£18k (£11.4m) (1m readers- 47%women; 49% <45; 88% ABC1) Guardian Inserts 16 pages loose weekdays £50/100 The Sun full page colour Mon-Fri £40-43k* (7.2m readers – 59% men; 53% 15-44; 87% C1C2DE adults) www.nmauk.co.ukwww.nmauk.co.uk for facts & figures The media fix their advertising rates according to the size of their audience and its age and social profiles :
2012/2013Author: Dr P.Harborne39 Examples of Media costs Posters(48 sheet) £1k month (96sheet) £2k month Poster (backlit 96 sheet) £2k per week Advan £6k p.m.; trailer £1.3kpm;Postabike £6k pm Leaflets full Colour A4 £43/1000 Cinemas (London 530 screens) £3.5K per 30 seconds per day ( 5secs upwards for slots) Virgin FM (London) 30sec spot, drivetime £0.5K; minimum spend £3k per month Radio cost is evaluated as Cost Per Thousand listeners ( verified by RAJAR)
2012/2013Author: Dr P.Harborne40 Example of TV Costs ITV1 – varies by time of day, viewing figures (TeleVision Ratings), no. of advertisers, time of year, event Sell in 10 sec units but most common 30 sec advert (single) 11 am 2.5TVR (2.5% of all adults) £5,020 18.45 (7TVRs)£24,667 19.30 Coronation St (26 TVRs) £59,549 ITV2 2 spots per day (26.2 TVR) £45,000
2012/2013Author: Dr P.Harborne41 Advertising expenditure
2012/2013Author: Dr P.Harborne42 Advertising Reach Reach = number who see or hear
2012/2013Author: Dr P.Harborne43 Continuous Schedule Steady Stream of Advertising e.g. shampoo Continuous Schedule Steady Stream of Advertising e.g. shampoo Flighting Advertising Appears in Short, Intense Bursts Alternating With Periods of Little or No Activity Flighting Advertising Appears in Short, Intense Bursts Alternating With Periods of Little or No Activity Pulsing Schedule Varies Adverting Depending on Product Demand e.g. suntan lotion Pulsing Schedule Varies Adverting Depending on Product Demand e.g. suntan lotion Media Scheduling How often?
2012/2013Author: Dr P.Harborne44 Designing an Advert Unique Selling Proposition Unique Selling Proposition Humorous Appeals Humorous Appeals Fear Appeals Comparative Advertising Comparative Advertising Demonstration Testimonial Advertising Appeals Slice-of-Life Lifestyle Sex Appeals
2012/2013Author: Dr P.Harborne45 Message Choices What to say (content) –Rational, emotional, moral appeal How to say it (structure and format) –Order of presentation, conclude or leave open- ended –Words, pictures, people, Who should say it (source) –An expert, famous personality, an actor, the brand name etc
2012/2013Author: Dr P.Harborne48 MESSAGE CONTENT Moral appeals Emotional appeals Rational appeals MESSAGE STRUCTURE Argument order Argument type Draw conclusions Sensory appeals MESSAGE FORMAT ContrastNovelty Principles Of Marketing The Message – How?
2012/2013Author: Dr P.Harborne49 Treatment 3 Does sex sell?
2012/2013Author: Dr P.Harborne50 Advertising high involvement products highly involved consumers look for the “steak” (eg. strong, rational arguments). communication should have a relatively high information content. when interested in the message/product consumers will carefully attend to the message content. printed media more appropriate then TV or radio. the credibility of the claims, sources or presenters are important. focus on “central” product-related information. generate cognitive responses to arguments. attitude behaviour High involvement = products are important to life/business
2012/2013Author: Dr P.Harborne51 “sizzle” (eg. colours, image, spokesperson). relatively low information content. focus on “peripheral cues”, non-product information. a non-rational approach, appealing to, or arousing, feelings and emotions, atmosphere. media which can be observed with the minimum of effort, which can be experienced passively. high frequency of the communication, so that the feeling is repeatedly imprinted, the message frequently received. behaviour attitude, Advertising low involvement products
2012/2013Author: Dr P.Harborne52 Low Involvement Treatment
2012/2013Author: Dr P.Harborne53 Low Involvement Treatment 2 Analyse this - what is the message and does it work?
2012/2013Author: Dr P.Harborne58 Wassup again Why would you do this?
PROMOTION THROUGH A SPOKESPERSON 2012/2013Author: Dr P.Harborne59
2012/2013Author: Dr P.Harborne60 Spokesperson factors Credibility source’s perceived trustworthiness, expertise, objectivity. however expert comprises believability by appearing in ads (hired-gun). Attractiveness refers to the source’s perceived social value. physical appearance, personality, or social status; or similarity to the receiver. Celebrity athletes, musicians, movie stars, comedians “Q rating” of a celebrity: consumers’ level of familiarity and rating of consumers attitude towards person.
2012/2013Author: Dr P.Harborne62 Spokesperson Consider the new Old Spice adverts Tied into campaign of response to questions by twitter, Facebook etc ‘face’ is an ex US footballer who admits to using a false voice on the advert Is the ‘silliness’ enough to establish him as an actor not spokesperson?
2012/2013Author: Dr P.Harborne63 Spokesperson factors Jamie Oliver & Sainsburys –Backlash from school food campaign Wayne Rooney & Nike –Metacarpal injuries; private life revelations Tiger Woods –High profile divorce “Lost in Translation” - geographical limitations
2012/2013Author: Dr P.Harborne65 Attracting Consumers With Price Breaks Attention-Getting Consumer Promotions Coupons Price Deals Refunds Rebates Special Packs Contests Sweepstakes Premiums Sampling Point-of-Purchase Promotion Consumer Promotions
2012/2013Author: Dr P.Harborne66 Sales Promotion Good weapon for small companies (variable cost) Reduce risk, encourage trial Appeal to price/deal conscious consumers Can target specific segments, offer de facto price cut Add excitement to mundane purchases Help to match demand & supply (short-term & quick response) Issue is redemption rates - can vary by country Sales coupons - can be by hard copy, internet or mobile phone But : Remember the Hoover air flights promotion?
2012/2013Author: Dr P.Harborne67 Target Audience Sales promotions can be aimed at: –Consumers demand pull, incentive to purchase e.g. money off coupons, gifts, competitions –Channels, intermediaries supply push, incentive to promote the particular product e.g. increase bonuses, commissions, competitions and gifts, co-operative advertising, point-of-sale materials
2012/2013Author: Dr P.Harborne68 Role of Sales Promotion Break down brand loyalty –e.g. Encourage product trial, brand switching Acts as: –Communication gains attention, gives information –Incentive inducement to purchase –Invitation engage in transaction now Potential Disadvantages –Frequent offers may ‘cheapen’ the brand image –Encourages consumer promiscuity –Subsidises those who would have purchased anyway
PUBLIC RELATIONS 2012/2013Author: Dr P.Harborne69
2012/2013Author: Dr P.Harborne70 Public Relations Build good relations with company’s ‘publics’ by: –Obtaining favourable publicity –Building a good corporate image –Heading off unfavourable rumours etc Press interviews / releases Special events / stunts Visits to the firm –e.g. Sellafield Sponsorship Community projects Video films Shareholder reports Corporate identity materials Training courses In-house publications Conference appearance
2012/2013Author: Dr P.Harborne71 Introducing New Products to Manufacturers Introducing New Products to Manufacturers Introducing New Products to Consumers Introducing New Products to Consumers Influencing Government Legislation Influencing Government Legislation Enhancing the Image of a City, Region, or Country Enhancing the Image of a City, Region, or Country Calling Attention to a Firm ’ s Involvement with the Community Calling Attention to a Firm ’ s Involvement with the Community Objectives of Public Relations
2012/2013Author: Dr P.Harborne72 Appeal of PR Low cost compared with other forms of communication Credibility –More authentic to target audiences Penetration –Can reach people who avoid advertisements Dramatisation –Can dramatise a company or product
2012/2013Author: Dr P.Harborne73 Limitations Publicity can be –Difficult to control –Adverse eg appearing on BBC ‘Watchdog’ (consumer affairs program) PR can: –Gain positive publicity –Build a ‘bank’ of goodwill
2012/2013Author: Dr P.Harborne74 Emerging Issues see OFCOM 2011 report Average 4 hrs daily but 14% of TV watching is time- shifted VCR/DVR allow TV viewers to skip adverts - so is TV advertising worthwhile? Teenagers increased use of smartphones means less TV watching TV and radio now accessed through internet as well Radio listening hours dropping – but 91.6% of adults listen (just for less time) Online advertising spend in 2010 was £4bn (26% of all advertising) TV advertising spend in 2010 was £5.2bn
Emerging issues 2 Could viral advertising etc be less acceptable if firms seem to exploit it e.g. Cadburys & online campaign for Wispa bars; buzz vs hype (viral) Governments increasing control of adverts 2012/2013Author: Dr P.Harborne75
2012/2013Author: Dr P.Harborne76 Summary We have explored: The marketing communications process Types of marcomms The relative cost of types of marcomms Strengths of each type of marcomm Barriers to effective communication Adverse perceptions of adverts Increasing legislative control of marcomms Key issues in effective communication