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Integrated Marketing Communications: Advertising, Promotions. And Other MarCom Tools. LEARNING OBJECTIVES. LEARNING OBJECTIVES. Appreciate the variety of marketing communications tools, and how they work together to accomplish communication objectives - PowerPoint PPT Presentation
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• Integrated Marketing Communications: Advertising, Promotions. And Other MarCom Tools
LEARNING OBJECTIVES
• Appreciate the variety of marketing communications tools, and how they work together to accomplish communication objectives.
• Understand the nature, importance, and features of integrated marketing communications.
• Describe the concept of brand-equity enhancement and the role of marketing communications in facilitating this objective.
LEARNING OBJECTIVES
Appreciate the variety of marketing communications tools, and how they work together to accomplish communication objectives
Understand the nature, importance, and features of integrated marketing communications
Describe the concept of brand-equity enhancement and the role of marketing communications in facilitating this objective
LEARNING OBJECTIVES
• Comprehend the factors that determine how different marketing communications elements are effectively combined.
• Discuss the primary decision spheres involved in managing the marketing communications process.
• Know the major activities involved in formulating advertising strategy.
Comprehend the factors that determine how different marketing communications elements are effectively combined
Discuss the primary decisions spheres involved in managing the marketing communications process
Know the major activities involved in formulating advertising strategy
LEARNING OBJECTIVES
• Recognize the role of sales promotion, appreciate the reasons why this form of marketing communication has experienced rapid growth, and know the tasks that it can and cannot accomplish.
• Evaluate the nature and function of public relations.
• Appreciate sponsorship marketing and the practices of event marketing and cause-related marketing
Recognize the role of sales promotion. Appreciate the reasons why this form of marketing communication has experienced rapid growth, and know the tasks that it can and cannot accomplish
Evaluate the nature and function of public relations
Appreciate sponsorship marketing and the practices of event marketing and cause-related marketing
LEARNING OBJECTIVES
• Understand the role, importance, and growth of point-of-purchase communications.Understand the role, importance, and growth
of point-of-purchase communications
AdvertisinAdvertisingg
AdvertisinAdvertisingg
SalesSalesPromotionPromotion
SalesSalesPromotionPromotionP-O-PP-O-PP-O-PP-O-P
SponsorshipSponsorshipSponsorshipSponsorship
PublicityPublicityPublicityPublicityPersonalPersonalSelling Selling
MarCom Mix
THE TOOLS OF MARKETING COMMUNICATIONS
• Person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices.
Personal Selling
AdvertisinAdvertisingg
SalesSalesPromotionPromotion
SalesSalesPromotionPromotionP-O-PP-O-PP-O-PP-O-P
SponsorshipSponsorshipSponsorshipSponsorship
PublicityPublicityPublicityPublicityPersonalPersonalSelling Selling
PersonalPersonalSelling Selling
THE TOOLS OF MARKETING COMMUNICATIONS
MarCom Mix
• Nonpersonal communication that is paid for by an identified sponsor and involves either mass communication and other media or direct-to-consumer communication via direct mail.
Advertising
AdvertisingAdvertising
SalesSalesPromotionPromotion
SalesSalesPromotionPromotionP-O-PP-O-PP-O-PP-O-P
SponsorshipSponsorshipSponsorshipSponsorship
PublicityPublicityPersonalPersonalSelling Selling
PersonalPersonalSelling Selling
THE TOOLS OF MARKETING COMMUNICATIONS
MarCom Mix
• Non-personal communication to a mass audience that is not directly paid for by the company.
Publicity or Public Relations
AdvertisinAdvertisingg
SalesSalesPromotionPromotionP-O-PP-O-PP-O-PP-O-P
SponsorshipSponsorshipSponsorshipSponsorship
PublicityPublicityPersonalPersonalSelling Selling
PersonalPersonalSelling Selling
THE TOOLS OF MARKETING COMMUNICATIONS
MarCom Mix
• All the marketing activities that attempt to promote immediate sales of a product.
Sales Promotion
AdvertisingAdvertising
SalesSalesPromotionPromotion
SalesSalesPromotionPromotionP-O-PP-O-PP-O-PP-O-P
SponsorshipSponsorship
PublicityPublicityPersonalPersonalSelling Selling
PersonalPersonalSelling Selling
THE TOOLS OF MARKETING COMMUNICATIONS
MarCom Mix
• The practice of promoting the interests of a company and its brands by associating the company with a specific event.
Sponsorship
AdvertisingAdvertising
SalesSalesPromotionPromotion
SalesSalesPromotionPromotionP-O-PP-O-P
SponsorshipSponsorshipSponsorshipSponsorship
PublicityPublicityPersonalPersonalSelling Selling
PersonalPersonalSelling Selling
MarCom Mix
THE TOOLS OF MARKETING COMMUNICATIONS
• Includes all signage (displays, posters, signs, shelf cards, and other visual materials) designed to influence buying decisions at the point of sale.
Point-of-Purchase (P-O-P)
Advertising
SalesPromotion
SalesPromotion
P-O-P
SponsorshipSponsorship
PublicityPersonal
Selling Personal
Selling
MarCom
IntegratedMarketing
Communications
MarCom
IntegratedMarketing
Communications
• Integrated Marketing Communication (IMC)A system of
managing and integrating marketing communication elements with the result that all elements adhere to the same message
KEY PARTICIPANTS IN MARKETING COMMUNICATIONS
• Requires careful study of customers’ communication usage pattern and information needs
• Communication media (contact points) is dictated by the customer’s needs and behavior
• Involves an outside-in approach to decision making
Starts with the CustomerStarts with the Customer
Key Aspects of Integrated Marketing Communications
• Use all forms of communication and all sources of contact
• Communication media (contact points) is dictated by the customer’s needs and behavior
• Involves utilization of communication outlets that are appropriate for reaching the target audience
Use Any Form of Relevant ContactUse Any Form of Relevant Contact
Key Aspects of Integrated Marketing Communications
• Another key aspect of IMC is the need for synergy
• All communication elements should convey the same, unified message, otherwise consumers will be confused
Achieve SynergyAchieve Synergy
Key Aspects of Integrated Marketing Communications
• Successful marketing requires building a relationship between the brand and the customer
• Entails repeat purchase and loyalty
• More profitable to build and maintain relationships than to continuously search for new customers
Build RelationshipsBuild Relationships
Key Aspects of Integrated Marketing Communications
• More than awareness or attitude changes but must include behavioral changes
• Moving people to action
Affect BehaviorAffect Behavior
Key Aspects of Integrated Marketing Communications
3. Expanded efforts to assess return on investment
2. Increased reliance on highly targetedcommunications methods
1. Reduced Dependence in Mass-Media Advertising
Key Changes in MarCom Practice Resulting from the IMC Thrust
• Figure 12.1
THE MARCOM CHALLENGE: ENHANCE BRAND EQUITY
BrandKnowledge
BrandKnowledge
Brand Recognition
Brand Recognition
Brand Recall
Brand Recall
AttributesAttributes
BenefitsBenefits
OverallEvaluation(Attitude)
OverallEvaluation(Attitude)
Types ofBrand Associations
Types ofBrand Associations
Favorability, Strength, and
Uniqueness of Brand Association
Favorability, Strength, and
Uniqueness of Brand Association
BrandAwareness
BrandAwareness
BrandImage
BrandImage
BrandBrand
AwarenessAwareness
BrandBrand
ImageImage
• A brand possesses equity to the extent that consumers are familiar with the brand and have stored in memory favorable, strong, and unique brand associations
Brand Equity
BrandBrand
AwarenessAwareness
• Whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked
BrandBrand
ImageImage
Brand Awareness
BrandBrand
ImageImage
• The associations that come to mind when contemplating a particular brand
• Brand association - the particular thoughts and images that a consumer has about a brand
BrandBrand
AwarenessAwareness
Brand Image
ObjectivesObjectivesObjectivesObjectives
Nature of the ProductNature of the ProductNature of the ProductNature of the Product
Life-cycle StageLife-cycle StageLife-cycle StageLife-cycle Stage
Competitive ActionsCompetitive ActionsCompetitive ActionsCompetitive Actions
• Who is the intended market?
• Business-to-business market or consumer market?
• Understanding of the product’s target market
MarketMarket
BudgetBudgetBudgetBudget
Push vs. PullPush vs. PullPush vs. PullPush vs. Pull
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
ObjectivesObjectives
Nature of the ProductNature of the ProductNature of the ProductNature of the Product
Life-cycle StageLife-cycle StageLife-cycle StageLife-cycle Stage
Competitive ActionsCompetitive ActionsCompetitive ActionsCompetitive Actions
MarketMarketMarketMarket
BudgetBudgetBudgetBudget
Push vs. PullPush vs. PullPush vs. PullPush vs. Pull
• What are the objectives?
• Do we want to create product category wants or brand preference?
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
• Insert Figure 12.2
The Hierarchy of Effects
Purchase
Purchase Intention
Attitude
Beliefs/Knowledge
Awareness
Unawareness
ObjectivesObjectivesObjectivesObjectives
Nature of the ProductNature of the Product
Life-cycle StageLife-cycle StageLife-cycle StageLife-cycle Stage
Competitive ActionsCompetitive ActionsCompetitive ActionsCompetitive Actions
• What is the nature of the product?
• Business-to-business products versus consumer goods
MarketMarketMarketMarket
BudgetBudgetBudgetBudget
Push vs. PullPush vs. PullPush vs. PullPush vs. Pull
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
ObjectivesObjectivesObjectivesObjectives
Nature of the ProductNature of the ProductNature of the ProductNature of the Product
Life-cycle StageLife-cycle Stage
Competitive ActionsCompetitive ActionsCompetitive ActionsCompetitive Actions
MarketMarketMarketMarket
BudgetBudgetBudgetBudget
Push vs. PullPush vs. PullPush vs. PullPush vs. Pull
• What is the product life-cycle stage?
• New product versus a mature product
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
ObjectivesObjectivesObjectivesObjectives
Nature of the ProductNature of the ProductNature of the ProductNature of the Product
Life-cycle StageLife-cycle StageLife-cycle StageLife-cycle Stage
Competitive ActionsCompetitive Actions
MarketMarketMarketMarket
BudgetBudgetBudgetBudget
Push vs. PullPush vs. PullPush vs. PullPush vs. Pull
• What are competitors doing?
• Does the competition allow trade allowances and, if so, how large?
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
ObjectivesObjectivesObjectivesObjectives
Nature of the ProductNature of the ProductNature of the ProductNature of the Product
Life-cycle StageLife-cycle StageLife-cycle StageLife-cycle Stage
Competitive ActionsCompetitive ActionsCompetitive ActionsCompetitive Actions
• What is the available budget for promotion?
• Do we emphasize personal selling or mass advertising?
BudgetBudget
Push vs. PullPush vs. PullPush vs. PullPush vs. Pull
MarketMarketMarketMarket
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
ObjectivesObjectivesObjectivesObjectives
Nature of the ProductNature of the ProductNature of the ProductNature of the Product
Life-cycle StageLife-cycle StageLife-cycle StageLife-cycle Stage
Competitive ActionsCompetitive ActionsCompetitive ActionsCompetitive Actions
• Will a push or pull strategy be most effective?
• Trade allowances and personal selling versus advertising and sales promotion
• Combination of push and pull technique
BudgetBudgetBudgetBudget
Push vs. PullPush vs. Pull
MarketMarketMarketMarket
DETERMINING AN APPROPRIATE MIX OF IMC TOOLS
Push Strategy
Pull StrategyVSVSVSVS
Push vs. Pull Strategy
• Utilizes aggressive trade allowances and personal selling to obtain wholesaler and retailer distribution
• The product is pushed through the channel
Push Strategy
• Encourages consumer demand for the product to obtain distribution
• Use of heavy advertising and high value coupons
Pull Strategy
Evaluating Program EffectivenessEvaluating Program Effectiveness
Formulating and ImplementingMessage and Media Strategies
Formulating and ImplementingMessage and Media Strategies
Setting BudgetSetting Budget
Establishing ObjectivesEstablishing Objectives
Selecting Target MarketSelecting Target Market
Formulating a Positioning StrategyFormulating a Positioning Strategy
MANAGING THE MARCOM PROCESS
• Allows marketing communicators to more precisely deliver messages to the target group
• Attempts to avoid wasting money outside the target market
• Identify potential target markets in terms of a combination of characteristics that will cause these consumers to act in a similar fashion (demographics, lifestyles and so on)
Selecting Target MarketSelecting Target Market
MANAGING THE MARCOM PROCESS
• Objectives must fit within the company’s overall corporate and marketing objectives
• Must also be realistic and stated in quantitative terms with the amount of projected change and the time duration specified
Establishing ObjectivesEstablishing Objectives
MANAGING THE MARCOM PROCESS
• Essential activity in developing successful MarCom programs
• Clear statement defining to whom a brand should be targeted, what should be said about the brand, and what media and message vehicles should be used
Formulating a Positioning StrategyFormulating a Positioning Strategy
MANAGING THE MARCOM PROCESS
• Top-down budgeting (TD): senior management decides how much each subunits receives
• Bottom-up budgeting (BU): managers of subunits determine how much is needed and the amounts are then combined to establish the total budget
• Bottom-up/top-down (BUTD)• Top-down/bottom-up (TDBU)• BUTD process is the most frequently
used
Setting BudgetSetting Budget
MANAGING THE MARCOM PROCESS
• Make a decision regarding the message to be communicated and the media within which the message will be sent
• Many different alternatives of media are available and each has a unique rate of effectiveness as well as cost
Formulating and ImplementingMessage and Media Strategies
Formulating and ImplementingMessage and Media Strategies
MANAGING THE MARCOM PROCESS
• Evaluation information will be critical in creating future programs and taking corrective action when necessary
• Advertising is more difficult to measure
• Communication outcomes: changes in consumers’ awareness of the advertised brand, knowledge of copy points, or attitudes toward the brand (assess advertising effectiveness)
Evaluating Program EffectivenessEvaluating Program Effectiveness
MANAGING THE MARCOM PROCESS
ADVERTISING
• Advertising adds value to brand by influencing consumers’ perception
• Effective advertising can lead to increased market share and greater profitability
• U.S., the biggest advertising spender in the world
Assessing Assessing Advertising Advertising
EffectivenessEffectiveness
Objective Objective SettingSetting
BudgetingBudgeting
Selecting Selecting Advertising Advertising
MediaMedia
Creating Creating Advertising Advertising MessagesMessages
Establishing Establishing the Brand the Brand
PositioningPositioning
ADVERTISING STRATEGY
• Reasons for setting advertising objectives Make top management to agree upon the course
of advertising Guide the budgeting, message creating, and
media selection Provide standards against which results can be
measured
Objective Objective SettingSetting
ADVERTISING STRATEGY
• The most difficult advertising decision because it is hard to determine precisely how effective advertising has been or might be in the future
• The sales-response to advertising is influenced by a multitude of factors
BudgetingBudgeting
ADVERTISING STRATEGY
• Promotional budget set as a percentage of past or anticipated sales
Percent of SalesPercent of SalesPercent of SalesPercent of Sales
Objective &TaskObjective &TaskObjective &TaskObjective &Task
Budgeting for Advertising
• Objectives specified• Promotional
elements identified• Budget is
determined by accumulating anticipated costs among the various promotional elements
Percent of SalesPercent of SalesPercent of SalesPercent of Sales
Objectives &TaskObjectives &TaskObjectives &TaskObjectives &Task
Budgeting for Advertising
• Establishing how the brand is to be thought of by members of the target market and how the brand is to be perceived relative to competitive brands in the product category
Establishing Establishing the Brand the Brand
PositioningPositioning
ADVERTISING STRATEGY
• Advertisers use a vast array of techniques to present their brands in the most favorable light and persuade customers to contemplate purchasing these brands
Creating Creating Advertising Advertising MessagesMessages
ADVERTISING STRATEGY
• Informational ads
Creating Advertising Messages
• Humorous executions
Creating Advertising Messages
• Sex appeals
Creating Advertising Messages
• Sex appeals
Creating Advertising Messages
• Celebrity endorsements
Creating Advertising Messages
• Emotional appeals
Creating Advertising Messages
• Using animation
Creating Advertising Messages
• Extends from sound marketing strategy
• Takes the consumer’s view• Persuasive• Finds a unique way to break through
competitive clutter• Never promises more than it can
deliver• Prevents the creative idea from
overwhelming the strategy
Creating Effective Messages
• Absolut
Creative Campaigns
• Absolut
Creative Campaigns
• Absolut
Creative Campaigns
• Absolut
Creative Campaigns
• Milk
Creative Campaigns
• Milk
Creative Campaigns
• Milk
Creative Campaigns
• Milk
Creative Campaigns
• Insert Figure 12.5
Creative Campaigns
• Outstanding message execution is to no avail unless the message is delivered to the right customers at the right time, and with sufficient frequency
Selecting Selecting Advertising Advertising
MediaMedia
ADVERTISING STRATEGY
Selecting Advertising MediaSelecting Advertising Media
Selection of Target Selection of Target AudienceAudience
Selection of Target Selection of Target AudienceAudience
Specification of Media Specification of Media ObjectivesObjectives
Specification of Media Specification of Media ObjectivesObjectives
Selection of MediaSelection of MediaSelection of MediaSelection of Media
Purchase of MediaPurchase of MediaPurchase of MediaPurchase of Media
Selecting Advertising MediaSelecting Advertising Media
• Must be clearly pinpointed• Based on geographic factors,
demographics, product-usage concerns, psychographics
Selection of Target AudienceSelection of Target Audience
Specification of Media Objectives
Specification of Media Objectives
• Reach• Frequency• Continuity• Cost
Selecting Advertising MediaSelecting Advertising Media
Selection of MediaSelection of Media
• Television• Radio• Magazines• Newspapers• Internet
Selecting Advertising MediaSelecting Advertising Media
• Insert Figure 12.6
Selecting Advertising Media
• Cost per thousand (CPM)• Gross rating points (GRP)
Purchase of MediaPurchase of Media
CPM Match Target Image ... OverallMagazine1Magazine2Magazine3......Magazine N
CPM=CPM=
GRP=Reach*FrequencyGRP=Reach*Frequency
CostCostAudience SizeAudience Size
______________________
Selecting Advertising MediaSelecting Advertising Media
• Measure magazine readership Simmons Market Research Bureau(SMRB) and
MediaMark Research, Inc. (MRI)
• Measure television audience size Nielsen, and Arbitron
• Others Starch Readership Service, Burke Day-After Recall
Assessing Assessing Advertising Advertising EffectivenesEffectivenes
ss
ADVERTISING STRATEGY
Direct Advertising
• Database Marketing OffersAddressabilityMeasurabilityFlexibilityAccountability
• The use of any incentive The use of any incentive by a manufacturer to by a manufacturer to induce the trade induce the trade (wholesalers and retailers) (wholesalers and retailers) or consumers to buy a or consumers to buy a brand and to encourage brand and to encourage the sales force to the sales force to aggressively sell itaggressively sell it
SALES PROMOTION
Factors Giving Rise to the Growth of Sales Promotion
• Balance of power transfer• Increased brand parity and price
sensitivity• Reduced brand loyalty • Splintering of the mass market & reduced
media effectiveness• Short-term orientation & corporate
reward structure• Trade & consumer responsiveness
Sales Promotion’s Capabilities
• Facilitate the introduction of new products
• Obtain trial purchases• Stimulate sales force enthusiasm• Invigorate sales of a mature brand• Increase on- and off-shelf merchandising
space
Sales Promotion’s Capabilities
• Neutralizing competitive advertising• Encouraging repeat purchases• Increase brand usage by loading
consumers• Preempting competition by leading
consumers• Reinforcing advertising
Sales Promotion: Roles and Objectives
• Introduce new or revised products• Increase distribution• Build retail inventories• Maintain shelf space• Obtain display space• Reduce excess inventory• Induce cooperative advertising• Counter competition• Sell more to final consumers
Proactive MPRProactive MPRProactive MPRProactive MPR
PUBLIC RELATIONS
• Dictated by a company’s marketing objectives
• Offensively oriented • Opportunity-seeking rather than
problem-solving• Another tool for promotion of
company’s products and services
Reactive MPRReactive MPRReactive MPRReactive MPR
PUBLIC RELATIONS
• Undertaken as a result of external pressures
• Deals with changes that have negative consequences
• Attempts to repair a company’s reputation, prevent market erosion, and regain lost sales
SPONSORSHIP MARKETING
• Avoid the clutter• Help companies respond to
consumers’ changing media habits• Help companies gain the approval of
various constituencies• Enable marketers to target their
communication and promotional efforts to specific geographic regions and/or to specific lifestyle groups
Event MarketingEvent MarketingEvent MarketingEvent Marketing
SPONSORSHIP MARKETING
• Form of a brand promotion that ties a brand to a meaningful cultural, social, athletic, or other type of high-interest public activity
• Separate from advertising, sales promotion, point-of-purchase merchandising, or public relations
Cause-Related MarketingCause-Related MarketingCause-Related MarketingCause-Related Marketing
SPONSORSHIP MARKETING
• Narrow aspect of overall sponsorship
• Combination of PR, sales promotion and corporate philanthropy
• Linked to consumers’ engaging in revenue-producing exchanges with the firm
Cause-Related MarketingCause-Related MarketingCause-Related MarketingCause-Related Marketing
• Stride Rite
SPONSORSHIP MARKETING
ConsumersConsumersConsumersConsumers
• P-O-P delivers useful information and simplifies the shopping process by setting products apart from similar items
RetailersRetailers ManufacturersManufacturers
POINT-OF-PURCHASE COMMUNICATIONS
RetailersRetailersRetailersRetailers
• Increased sales• Enables retailers to better organize shelf
space and improve inventory control, volume, and profitability
ConsumersConsumers ManufacturersManufacturers
POINT-OF-PURCHASE COMMUNICATIONS
ManufacturersManufacturersManufacturersManufacturers
• Calls attention to special offers and helps stimulate impulse purchasing
• Serves to complement the job already performed by advertising before the consumer enters a store
ConsumersConsumers RetailersRetailers
POINT-OF-PURCHASE COMMUNICATIONS
Supplemental Material
Communication Process
FeedbackFeedbackSourceSource
EncodingEncoding
MessageMessage ChannelChannel ReceiverReceiver
DecodingDecodingNoiseNoise
Communication Process
FeedbackFeedback
EncodingEncoding
MessageMessage ChannelChannel ReceiverReceiver
DecodingDecoding
NoiseNoise
• The marketer• The sender of the message
• The marketer• The sender of the message
SourceSource
Communication Process
FeedbackFeedback
MessageMessage ChannelChannel ReceiverReceiver
DecodingDecoding
NoiseNoise
• Designing of advertisements, sales presentations, P-O-P displays, etc.
• Translation of the message into symbolic form
• Designing of advertisements, sales presentations, P-O-P displays, etc.
• Translation of the message into symbolic form
SourceSource
EncodingEncoding
Communication Process
FeedbackFeedback
ChannelChannel ReceiverReceiver
DecodingDecoding
NoiseNoise
• Actual advertisement that contains the intended message• Symbolic expression of the sender’s thoughts
• Actual advertisement that contains the intended message• Symbolic expression of the sender’s thoughts
MessageMessage
SourceSource
EncodingEncoding
Communication Process
FeedbackFeedback
ReceiverReceiver
DecodingDecoding
NoiseNoise
• Television, radio, print media, telephone, direct mail, etc.• Path through which the message moves to get to the receiver
• Television, radio, print media, telephone, direct mail, etc.• Path through which the message moves to get to the receiver
MessageMessage ChannelChannel
SourceSource
EncodingEncoding
Communication Process
FeedbackFeedback
DecodingDecoding
NoiseNoise
• Person or groups of persons for whom the message is intended
• Person or groups of persons for whom the message is intended
MessageMessage ChannelChannel ReceiverReceiver
SourceSource
EncodingEncoding
Communication Process
FeedbackFeedback
NoiseNoise
• Process receiver uses to interpret the meaning of the message• Process receiver uses to interpret the meaning of the message
ReceiverReceiver
DecodingDecoding
MessageMessage ChannelChannel
SourceSource
EncodingEncoding
Communication Process
NoiseNoise
• Marketing research, market share changes, sales reports• Attitude changes, purchase or non-purchase• Gauge of effectiveness of communication techniques
• Marketing research, market share changes, sales reports• Attitude changes, purchase or non-purchase• Gauge of effectiveness of communication techniques
DecodingDecoding
FeedbackFeedbackSourceSource
EncodingEncoding
ChannelChannel ReceiverReceiverMessageMessage
Communication Process
• Interference at some stage in communications process• Competitive promotional messages• Misinterpretation of message or wrong receiver
• Interference at some stage in communications process• Competitive promotional messages• Misinterpretation of message or wrong receiver
FeedbackFeedbackSourceSource
EncodingEncoding
MessageMessage ChannelChannel ReceiverReceiver
DecodingDecoding
NoiseNoise
Functions Of Advertising
InformInformInformInform
PersuadePersuade
RemindRemind
Add ValueAdd Value
Assist Other EffortsAssist Other Efforts
• Makes consumers aware of new products
• Informs them about specific brands
• Educates them about particular product features & benefits
Functions Of Advertising
InformInform
PersuadePersuadePersuadePersuade
RemindRemind
Add ValueAdd Value
Assist Other EffortsAssist Other Efforts
• Persuade customers to try new products, brands & services
• Create demand for entire product category
• Build secondary demand
Functions Of Advertising
InformInform
PersuadePersuade
RemindRemindRemindRemind
Add ValueAdd Value
Assist Other EffortsAssist Other Efforts
• Keeps company’s brand fresh in consumer’s memory
• Create top-of-mind awareness
Functions Of Advertising
InformInform
PersuadePersuade
RemindRemind
Add ValueAdd ValueAdd ValueAdd Value
Assist Other EffortsAssist Other Efforts
• Innovation• Improving quality• Altering consumer
perceptions
Functions Of Advertising
InformInform
PersuadePersuade
RemindRemind
Add ValueAdd Value
Assist Other EffortsAssist Other EffortsAssist Other EffortsAssist Other Efforts
• Delivering sales promotions
• Assist sales representatives
• Pre-sell products• Provide salespeople
with valuable introduction
Create Create Brand Brand
Awareness Awareness
Create Create Brand Brand
Awareness Awareness
Enhance Enhance AttributesAttributesIntentionsIntentions
Enhance Enhance AttributesAttributesIntentionsIntentions
Facilitate Facilitate Purchase Purchase
Facilitate Facilitate Purchase Purchase
Communication Objectives
Build Build Products Products Wants Wants
Build Build Products Products Wants Wants
Build Products WantsBuild Products WantsBuild Products WantsBuild Products Wants
Create Brand Awareness Create Brand Awareness Create Brand Awareness Create Brand Awareness
Enhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/Intentions
• Marketers must first build product category wants or primary demand
Facilitate Purchase Facilitate Purchase Facilitate Purchase Facilitate Purchase
Communication Objectives
Build Products WantsBuild Products WantsBuild Products WantsBuild Products Wants
Create Brand Awareness Create Brand Awareness Create Brand Awareness Create Brand Awareness
Enhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/Intentions
• After a product category is established, marketers attempt to create secondary demand for their specific brand
Facilitate Purchase Facilitate Purchase Facilitate Purchase Facilitate Purchase
Communication Objectives
Build Products WantsBuild Products WantsBuild Products WantsBuild Products Wants
Create Brand Awareness Create Brand Awareness Create Brand Awareness Create Brand Awareness
• After creating secondary demand, marketers want to influence attitudes and intentions
Facilitate Purchase Facilitate Purchase Facilitate Purchase Facilitate Purchase
Communication Objectives
Enhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/Intentions
Build Products WantsBuild Products WantsBuild Products WantsBuild Products Wants
Create Brand Awareness Create Brand Awareness Create Brand Awareness Create Brand Awareness
Enhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/IntentionsEnhance Attributes/Intentions
• Marketing communication variables can facilitate purchase and overcome other marketing mix variables
Facilitate Purchase Facilitate Purchase Facilitate Purchase Facilitate Purchase
Communication Objectives
Hierarchy-of-Effects Models
PurchasePurchase
Purchase IntentionPurchase Intention
AttitudeAttitude
Beliefs/KnowledgeBeliefs/Knowledge
AwarenessAwareness
UnawarenessUnawareness
ConnotationConnotation
AffectAffect
CognitionCognition
PrecognitionPrecognition
Specific StageSpecific Stage Summary TermSummary Term
Methods Of Setting Promotions Budgets
• Match competitors’ actions
• Meeting competitor’s budget doesn’t allow firm to meet its own objectives
Meeting CompetitionMeeting CompetitionMeeting CompetitionMeeting Competition
Past SalesPast SalesPast SalesPast Sales
Task/ObjectiveTask/ObjectiveTask/ObjectiveTask/Objective
Methods Of Setting Promotions Budgets
• Sets promotional budget based on past or anticipated sales
• Limited by forecast reliability
Meeting CompetitionMeeting CompetitionMeeting CompetitionMeeting Competition
Past SalesPast SalesPast SalesPast Sales
Task/ObjectiveTask/ObjectiveTask/ObjectiveTask/Objective
Methods Of Setting Promotions Budgets
• Objectives specified
• Promotional elements identified
• Budget determined by costs needed to reach objectives
Meeting CompetitionMeeting CompetitionMeeting CompetitionMeeting Competition
Past SalesPast SalesPast SalesPast Sales
Task/ObjectiveTask/ObjectiveTask/ObjectiveTask/Objective