Session 30 MG 220 MBA - 25 Nov 10


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Session 30
MG 220 Marketing Management
MBA 10

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Session 30 MG 220 MBA - 25 Nov 10

  1. 1. Part 7:Communicating Value<br />> The Role of Marketing Communications<br />> Developing Effective Communications<br />> Deciding on Marketing Communications Mix<br />> Managing the Integrated Marketing Communications Process<br />Class Presentation | Session 30 | 25 Nov 2010<br />
  2. 2. The Role of Marketing CommunicationsConcept<br />Marketing Communication and Brand Equity<br />The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell<br />Marketing Communications Mix<br />MG 220 Marketing Management<br />2<br />
  3. 3. The Role of Marketing CommunicationsConcept<br />Marketing Communications Mix - Definitions<br />Advertising<br />Any paid form of non-personalpresentation and promotion of ideas, goods or services by an identified sponsor<br />Sales Promotion<br />A variety of short-term incentives to encourage trial or purchase of a product or service<br />Events & Experiences<br />Company-sponsored activities and programs designed to create daily or special brand-related interactions<br />Public Relations & Publicity<br />A variety of programs designed to promote or protect a company’s image or its individual products<br />Direct Marketing <br />Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit response or dialogue from specific customers and prospects<br />Personal Selling<br />Face to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders<br />MG 220 Marketing Management<br />3<br />
  4. 4. The Role of Marketing CommunicationsConcept<br />Marketing Communications Mix - Examples<br />Advertising<br />Print and broadcast ads, Brochures, Posters, Billboards, POP displays<br />Sales Promotion<br />Contests, sweepstakes, Premiums, Sampling, Coupons, Rebates<br />Events & Experiences<br />Festivals, Arts, Causes, Factory tours, Company museums, Street activities<br />Public Relations & Publicity<br />Press releases, Seminars, Annual reports, donations, Community relations, Lobbying<br />Personal Selling<br />Sales presentations, Sales meetings, Incentive programs, Samples, Fairs and trade shows<br />Direct Marketing <br />Catalogs, Mailings, Telemarketing, Electronic shopping, TV shopping, Fax mail, E-mail, Voice mail<br />CONSISTENCY IN MESSAGE BY INTEGRATING THESE MARKETING COMMUNICATIONS IS REQUIRED<br />MG 220 Marketing Management<br />4<br />
  5. 5. The Role of Marketing CommunicationsThe Communication Process Models<br />Macro-model of Marketing Communications<br />Major parties in Communication<br />Sender | Receiver<br />Major Communication Tools<br />Message | Media<br />Major Communication Functions<br />Encoding | Decoding | Response | Feedback<br />These processes operate during communication<br />Selective Attention<br />Selective Distortion<br />Selective Retention<br />MG 220 Marketing Management<br />5<br />
  6. 6. The Role of Marketing CommunicationsThe Communication Process Models<br />Micro models of Marketing Communications<br />Response hierarchy models<br />Learn-Feel-do sequence<br />Buyer passed through:<br />Learn-Feel-do<br />Do-Feel-Learn<br />Learn-Do-Feel<br />Fragility of Marketing Communications<br />Example: If at all stages success prob. is even 50%<br />MG 220 Marketing Management<br />6<br />
  7. 7. Developing Effective Communications<br />Identify Target Audience<br />Use Segmentation strategies<br />Analyze target audience:<br />Image Analysis<br />Favorability Analysis<br />Familiriaty Analysis<br />MG 220 Marketing Management<br />7<br />
  8. 8. Developing Effective Communications<br />Determine Objective<br />Category Need<br />Developing need for a certain category<br />Brand Awareness<br />Identifying a brand within a certain category<br />Brand Attitude<br />Evaluation of brand to meet a relevant need<br />Brand Purchase intention<br />Taking purchase-related action<br />MG 220 Marketing Management<br />8<br />
  9. 9. Developing Effective Communications<br />Design Communications<br />Message Strategy (what to say)<br />Looking for appeals related to brand positioning <br />To help establish POPs and POPs<br />Creative Strategy (how to say it)<br />Informational Appeals – giving information<br />Transformational Appeals –emotional attributes<br />Message Source (who to say it)<br />Source should have credibility through:<br />Expertise<br />Trustworthiness<br />Likability<br />MG 220 Marketing Management<br />9<br />
  10. 10. Developing Effective Communications<br />Select Channels<br />Personal Channels<br />Advocate Channels (e.g. salesforce)<br />Expert Channels (e.g. independent experts)<br />Social Channels (e.g. neighbors, family, friends)<br />Non-Personal Channels<br />Media<br />Sales Promotions<br />Events and Experiences<br />Public Relations<br />Integration of Communication Channels<br />MG 220 Marketing Management<br />10<br />
  11. 11. Developing Effective Communications<br />Establish Total Mktg. Comm. Budget<br />Affordable Method<br />Percentage-of-Sales method<br />More result oriented, variable cost<br />No logical basis for choosing the “%age”<br />Competitive-Parity method<br />Budget established to achieve ‘share-of-voice’ parity with comp.<br />Collective wisdom (?) & preventing promotion wars (?)<br />Objective-and-task method<br />Establish market share goal<br />Determine %age of market that should be reached by advertising<br />Determine %age of aware prospects that should be persuaded<br />Determine number of ad impressions per 1 percent trial rate<br />Determine number of Gross Rating points (GRPs)<br />Determine req. advertising budget on basis of avg. cost of GRP<br />MG 220 Marketing Management<br />11<br />
  12. 12. Deciding on Marketing Communications MixCharacteristics of Marketing Comm. Mix<br />Advertising<br />Long-term image | trigger sales | reach geog. dispersed customers<br />Pervasiveness (several repetitions)<br />Amplified expressiveness<br />Impersonality (it is monologue)<br />Sales Promoti0n<br />Stronger & Quick buyer response | Short-run effects<br />Communication<br />Inventive<br />Invitation<br />Public Relation & Publicity<br />Coordinated with other elements of mix<br />High credibility<br />Ability to catch buyers “off-guard”<br />Dramatization<br />MG 220 Marketing Management<br />12<br />
  13. 13. Deciding on Marketing Communications MixCharacteristics of Marketing Comm. Mix<br />Events & Experiences<br />Costly yet having many advantages<br />Relevant<br />Involving<br />Implicit<br />Direct Marketing<br />Forms: Direct Mail, telemarketing, internet marketing<br />Customized<br />Up-to-date<br />Interactive<br />Personal Selling<br />Most effective in later stages, good for building preferences<br />Personal interaction<br />Cultivation<br />Response<br />MG 220 Marketing Management<br />13<br />
  14. 14. Deciding on Marketing Communications MixFactors in Setting the Marketing Comm. Mix<br />Type of Product Market<br />Consumer markets: more spend on sales prom. & advertising<br />Business markets: more on personal selling<br />Buyer-Readiness Stage<br />Cost-effectiveness of communication tools vary at different stagesof buyer readiness<br />Product Life-Cycle Stage<br />Cost effectiveness of communication tools vary as with PLC stages<br />MG 220 Marketing Management<br />14<br />
  15. 15. Deciding on Marketing Communications MixMeasuring Communication Results<br />Feedback Measurement<br />After implementing the plan:<br />Impact on target audience is to be measured<br />Surveyed to ask:<br />Whether they have recall<br />How many times they saw it<br />What points they recall<br />A good example of measured results:<br />MG 220 Marketing Management<br />15<br />
  16. 16. Managing the IMC – Integrated Marketing Communications<br />Coordinating Media<br />Personal and Non-personal channels to be coordinated<br />Implementing IMC<br />IMC concept has been relatively slow to take hold:<br />Large companies have several specialist organizations<br />They don’t know much about other channels/tools<br />Global companies use different agencies in different countries<br />Still a few agencies have improved by integrating with differentspecialist companies – by acquiring them<br />Offering one-window solutions<br />MG 220 Marketing Management<br />16<br />
  17. 17. Part 7:Communicating Value<br />> Developing and Managing an Advertising Program<br />> Deciding on Media and Measuring Effectiveness<br />Class Presentation | Session 31 | 29 Nov 2010<br />