1. Chapter 2 EFFECTIVE COMMUNICATIONS FOR MARKETING DIPLOMA IN INTERNATIONAL BUSINESS (BUS2513)

2. Some Strategic Goals of Marketing Communications Slide 17-1 Table 17.1 Strategic Goal Create awareness Build positive images Build channel relationships Description Inform markets about products, brands, stores or organizations. Develop positive evaluations in people’s minds about products, brands, stores or organizations. Identify prospects Find out the names, addresses and possible needs of potential buyers. Increase cooperation among channel members. Create value for customers, satisfy their wants and needs, and earn their loyalty. Retain customers

3. The Communication Process

6. Possible Objectives Of Promotion

7. THE AIDA MODEL Slide 17-3 Figure 17.2 Action Desire Interest Attention Marketing Communications

8. Promotion and the AIDA Model Promotion Objectives Adoption Process AIDA Model Informing Persuading Reminding Attention Interest Desire Action Awareness Interest Evaluation Trial Decision Confirmation } } {

12. Encouraging product trial through a free offer © Jeff Greenberg / PhotoEdit

13. Communications Objectives of Consumer Promotions Slide 18-7a Coupons Deals Contests and sweepstakes Stimulate sales by short-term price reductions; obtain trial for new products. Premiums Free samples Stimulate sales of products, visits to stores; increase quantities purchased. Attract new customers to existing products; build goodwill; offer greater value. Attract attention; create goodwill; increase sales; generate publicity. Encourage usage by consumers so they can experience product benefits. Table 18.3 Type Communications Objectives Free trials Stimulate sales by lowering risk of product being unacceptable after purchase; provides experience of product’s performance.

14. Slide 18-7b Point of Purchase Displays Rebates Trade shows Make products more prominent in stores; increase chances of impulse purchases; introduce new products. Continuity plan Specialty promotions Encourage purchases, particularly for big ticket items; get customer information for databases. Reward customer loyalty; support relationship marketing efforts; increase sales volumes. Generate attention and awareness of an industry’s products; identify prospects; make sales. Generate awareness of company, products and locations; get repeated exposures to messages; create goodwill. Table 18.3 Type Communications Objectives Communications Objectives of Consumer Promotions

17. Comparing the Elements of the Communications Mix Slide 17-5 Message can be Customized for each Customer Considered an Unbiased Source Long Term, Ongoing Activity Marketer Control Over Message Communications Mode Short Term Focus Cost per Contact Overall Cost Personal Selling Sales Promotion Advertising Publicity Two-Way One-Way One-Way One-Way Low Varies High No Direct Cost Yes No Yes No No No No Yes Yes No No No No Yes No No High Varies Low No Direct Cost Medium-High High High Low

20. Push vs. Pull Promotional Strategies

23. Advertising and Public Relations

25. Types of Advertising Slide 18-1 Table 18.1 Digital Advertising Advertising that focuses on using TV, radio, online advertising, product placement (covert advertising) Term Definition Physical advertising Physical appearance on the advertising such as press advertising (newspapers, magazines), mobile billboard advertising, in-store advertising, coffee cup advertising, street advertising, celebrity advertising

27. The Process of Managing Advertising Slide 18-2 Figure 18.2 Review Advertising Goals and Budget Pretest Ads Schedule and Run Ads Evaluate Advertising Effectiveness Adjust Advertising As Needed Select Media Create Messages

28. Advertising Appeals Slide 18-3 Humor Emotional Moral Rational Sex Fear

30. Steps In Developing And Implementing An Advertising Campaign

32. Advertising Expenditures By Media

34. Relative Merits of Major Advertising Media Slide 18-5a Television Radio • Reaches a broad audience • Provides both audio and visual information • Can generate attention • Low cost per exposure Table 18.2 Medium Advantages Disadvantages • High network charges and production costs • Limited ability to target customers • Short exposure time in most cases • Limited availability • Can be zapped by consumers with remotes • Messages are short • Inability to convey visual information • Lower attention than television • No standard rate structures • Audience engages in other activities while listening • Less costly than television advertising • Messages can be fairly well targeted for consumer markets • Widely used in many parts of the world

35. Slide 18-5b Print • Can provide broad or targeted exposure • Cost can be low • Reader can study an ad and review detailed information • Broad acceptance • High believability • Magazine reproduction quality is high • Some pass-along audience Table 18.2 Medium Advantages Disadvantages • Some print media require submission well in advance of publication • Some print media do not effectively reproduce color • No guarantee of ad’s position • Ads in widely read magazines and newspapers may be costly • Frequency limited by publication schedule Relative Merits of Major Advertising Media

36. Direct Mail • Relatively high cost • Poor image of medium among many customers • Usually lacks nonadvertising material to attract readers • Delivery time and date cannot be guaranteed • Messages can be narrowly targeted • Messages can be relatively long and detailed • No competing ads in medium • Performance can be measured relatively easily • Difficult for competitors to monitor results Slide 18-5c Table 18.2 Medium Advantages Disadvantages Relative Merits of Major Advertising Media

37. Slide 18-5d Outdoor Internet • Inexpensive (in the case of posters) • High repeat exposure • Low competition • Can be placed near point of sale Table 18.2 Medium Advantages Disadvantages • Targets an audience only by geographic location • Message viewed very briefly • Expensive (in the case of billboards) • Negative image among environmentalists • Not all users speak the same language used in the ad • Quality of images varies • Audience limited to Internet users interested in the company or product • Messages can be customized • No additional cost for reaching global markets • Messages can include words, pictures, sound and video Relative Merits of Major Advertising Media

41. Types of Publicity Press Releases Company Newsletter Organize News Public Speaking Interviewed on TV/Radio Exhibition Trade Shows Press Launches

43. Advertising Vs. Public Relation Advertising Public Relation Company pays for ad space. They know exactly when the ad will air or be publish. Get free publicity for the company. Getting free media exposure for the company and its products/services. Company has creative control on what goes into the ad. No control over how the media presents the company’s information, and company is not obligated to cover the event. Can run ads over and over for as long as budget allows. The company exposure only once on a press release. They won’t publish the same article. Buzz words are used to motivate people to buy your product. Strictly writing in a formal news format, there is no blatant commercial messages in the articles/speech/press release.

44. Unified Communications

45. The Communications Divide

59. In the Industry…