Session 30 MG 220 Marketing Management MBA 10

1. MG 220 Marketing Management
MBA 10
Fall 2010
Muhammad Talha Salam, Asst. Professor
talha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 7:
Communicating Value
> The Role of Marketing Communications
> Developing Effective Communications
> Deciding on Marketing Communications Mix
> Managing the Integrated Marketing Communications
Process
Class Presentation | Session 30 | 25 Nov 2010

2. Access it online: www.slideshare.net/talhasalam
The Role of Marketing Communications
Concept
Marketing Communication and Brand Equity
• The means by which firms attempt to inform, persuade, and remind consumers, directly
or indirectly, about the products and brands they sell
Marketing Communications Mix
MG 220 Marketing Management 2

3. Access it online: www.slideshare.net/talhasalam
The Role of Marketing Communications
Concept
Marketing Communications Mix - Definitions
• Advertising
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified
sponsor
• Sales Promotion
A variety of short-term incentives to encourage trial or purchase of a product or service
• Events & Experiences
Company-sponsored activities and programs designed to create daily or special brand-related interactions
• Public Relations & Publicity
A variety of programs designed to promote or protect a company’s image or its individual products
• Direct Marketing
Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit response or dialogue
from specific customers and prospects
• Personal Selling
Face to face interaction with one or more prospective purchasers for the purpose of making
presentations, answering questions and procuring orders
MG 220 Marketing Management 3

4. Access it online: www.slideshare.net/talhasalam
The Role of Marketing Communications
Concept
Marketing Communications Mix - Examples
• Advertising
Print and broadcast ads, Brochures, Posters, Billboards, POP displays
• Sales Promotion
Contests, sweepstakes, Premiums, Sampling, Coupons, Rebates
• Events & Experiences
Festivals, Arts, Causes, Factory tours, Company museums, Street activities
• Public Relations & Publicity
Press releases, Seminars, Annual reports, donations, Community relations, Lobbying
• Personal Selling
Sales presentations, Sales meetings, Incentive programs, Samples, Fairs and trade shows
• Direct Marketing
Catalogs, Mailings, Telemarketing, Electronic shopping, TV shopping, Fax mail, E-mail,
Voice mail
CONSISTENCY IN MESSAGE BY INTEGRATING THESE MARKETING
COMMUNICATIONS IS REQUIRED
MG 220 Marketing Management 4

5. Access it online: www.slideshare.net/talhasalam
The Role of Marketing Communications
The Communication Process Models
Macro-model of Marketing Communications
• Major parties in Communication
– Sender | Receiver
• Major Communication Tools
– Message | Media
• Major Communication Functions
– Encoding | Decoding | Response | Feedback
These processes operate
during communication
• Selective Attention
• Selective Distortion
• Selective Retention
MG 220 Marketing Management 5

6. Access it online: www.slideshare.net/talhasalam
The Role of Marketing Communications
The Communication Process Models
Micro models of Marketing Communications
• Response hierarchy models
• Learn-Feel-do sequence
• Buyer passed through:
– Learn-Feel-do
– Do-Feel-Learn
– Learn-Do-Feel
• Fragility of Marketing Communications
• Example: If at all stages success prob.
is even 50%
MG 220 Marketing Management 6

7. Access it online: www.slideshare.net/talhasalam
Developing Effective Communications
• Identify Target Audience
– Use Segmentation strategies
– Analyze target audience:
• Image Analysis
• Favorability Analysis
• Familiriaty Analysis
MG 220 Marketing Management 7
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

8. Access it online: www.slideshare.net/talhasalam
Developing Effective Communications
• Determine Objective
– Category Need
• Developing need for a certain category
– Brand Awareness
• Identifying a brand within a certain category
– Brand Attitude
• Evaluation of brand to meet a relevant need
– Brand Purchase intention
• Taking purchase-related action
MG 220 Marketing Management 8
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

9. Access it online: www.slideshare.net/talhasalam
Developing Effective Communications
• Design Communications
– Message Strategy (what to say)
• Looking for appeals related to brand positioning
• To help establish POPs and POPs
– Creative Strategy (how to say it)
• Informational Appeals – giving information
• Transformational Appeals –emotional attributes
– Message Source (who to say it)
• Source should have credibility through:
– Expertise
– Trustworthiness
– Likability
MG 220 Marketing Management 9
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

10. Access it online: www.slideshare.net/talhasalam
Developing Effective Communications
• Select Channels
– Personal Channels
• Advocate Channels (e.g. salesforce)
• Expert Channels (e.g. independent experts)
• Social Channels (e.g. neighbors, family, friends)
– Non-Personal Channels
• Media
• Sales Promotions
• Events and Experiences
• Public Relations
– Integration of Communication Channels
MG 220 Marketing Management 10
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

11. Access it online: www.slideshare.net/talhasalam
Developing Effective Communications
• Establish Total Mktg. Comm. Budget
– Affordable Method
– Percentage-of-Sales method
• More result oriented, variable cost
• No logical basis for choosing the “%age”
– Competitive-Parity method
• Budget established to achieve ‘share-of-voice’ parity with comp.
• Collective wisdom (?) & preventing promotion wars (?)
– Objective-and-task method
• Establish market share goal
• Determine %age of market that should be reached by advertising
• Determine %age of aware prospects that should be persuaded
• Determine number of ad impressions per 1 percent trial rate
• Determine number of Gross Rating points (GRPs)
• Determine req. advertising budget on basis of avg. cost of GRP
MG 220 Marketing Management 11
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

12. Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications Mix
Characteristics of Marketing Comm. Mix
Advertising
• Long-term image | trigger sales | reach geog. dispersed customers
– Pervasiveness (several repetitions)
– Amplified expressiveness
– Impersonality (it is monologue)
Sales Promoti0n
• Stronger & Quick buyer response | Short-run effects
– Communication
– Inventive
– Invitation
Public Relation & Publicity
• Coordinated with other elements of mix
– High credibility
– Ability to catch buyers “off-guard”
– Dramatization
MG 220 Marketing Management 12
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

13. Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications Mix
Characteristics of Marketing Comm. Mix
Events & Experiences
• Costly yet having many advantages
– Relevant
– Involving
– Implicit
Direct Marketing
• Forms: Direct Mail, telemarketing, internet marketing
– Customized
– Up-to-date
– Interactive
Personal Selling
• Most effective in later stages, good for building preferences
– Personal interaction
– Cultivation
– Response
MG 220 Marketing Management 13
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

14. Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications Mix
Factors in Setting the Marketing Comm. Mix
Type of Product Market
• Consumer markets: more spend on sales prom. & advertising
• Business markets: more on personal selling
Buyer-Readiness Stage
• Cost-effectiveness of communication tools vary at different stages
of buyer readiness
Product Life-Cycle Stage
• Cost effectiveness of communication tools vary as with PLC stages
MG 220 Marketing Management 14
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

15. Access it online: www.slideshare.net/talhasalam
Deciding on Marketing Communications Mix
Measuring Communication Results
Feedback Measurement
• After implementing the plan:
• Impact on target audience is to be measured
• Surveyed to ask:
– Whether they have recall
– How many times they saw it
– What points they recall
• A good example of measured results:
MG 220 Marketing Management 15
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

16. Access it online: www.slideshare.net/talhasalam
Managing the IMC – Integrated Marketing
Communications
Coordinating Media
• Personal and Non-personal channels to be coordinated
Implementing IMC
• IMC concept has been relatively slow to take hold:
– Large companies have several specialist organizations
– They don’t know much about other channels/tools
– Global companies use different agencies in different countries
• Still a few agencies have improved by integrating with different
specialist companies – by acquiring them
• Offering one-window solutions
MG 220 Marketing Management 16
Identify Target Audience
Determine Objective
Design Communications
Select Channels
Establish budget
Decide on media mix
Measure results
Manage IMC

17. MG 220 Marketing Management
MBA 10
Fall 2010
Muhammad Talha Salam, Asst. Professor
talha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 7:
Communicating Value
> Developing and Managing an Advertising Program
> Deciding on Media and Measuring Effectiveness
> Sales Promotion: SKIM
> Events & Experiences: SKIM
> Public Relations: SKIM
Class Presentation | Session 31 | 29 Nov 2010