Marketing Management Department Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, partners, and society at large. (Approved October 2007, American Marketing Association Board of Directors).
MARKETING COMMUNICATION TOOLS Phuong Anh Vu, M.A ( Business) Phuong Anh, M.A (Business) Marketing Management Department Learning Outline • Definition of The Promotion mix and Marketing Communications • Role of Promotion mix • List type of communication tools • A View of The Communications Process Models • Steps in Developing Effective promotion Programs UNIT Overview of marketing communication What is Marketing • Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, partners, and society at large (Approved October 2007, American Marketing Association Board of Directors) What is Marketing • marketing focuses on the satisfaction of customer needs, wants and requirements (or demands) • What is Marketing communication • inform, persuade, and remind consumers—directly or indirectly—about It’s about the delivery of value to satisfied customers, through an exchange process • Future needs have to be identified and anticipated • There is normally a focus upon profitability, especially in the corporate Marketing communications are the means by which firms attempt to the products and brands they sell • Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands sector • More recent definitions recognize the influence of marketing upon society • There is a longer-term relationship with customers Communication can • inform and make potential customers aware of an organization's offering • Attempt to persuade current and potential customers of the desirability of entering into an exchange relationship • May take the form of reminding people of a need they might have, or of reminding them of the benefits of past transactions with a view to convincing them that they should enter into a similar exchange • Marketing communications can act as a differentiator, particularly in markets where there is little to separate competing products and brands What is promotion mix • The promotion mix is the specific blend of advertising, sales promotion, public relations, personal selling, and directmarketing tools that the company uses to persuasively communicate customer value and build customer relationships Marcom vs promotion mix • The Similarities • Marcom vs promotion mix • Both concepts will help business organizations to communicate and interact with customers • Furthermore, the primary aim of both is to inform or remind the customer about the product or service and finally to make a purchase • Moreover, IMC involves coordinating the firm’s promotional mix to communicate a clear, consistent brand message Role of Promotion • the most important one—for sales and building brand and customer equity • represent the voice of the company and its brands • strengthening customer loyalty • allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things • can contribute to brand equity—by establishing the brand in memory and creating a brand image—as well as drive sales and even affect shareholder value Difference : • IMC refers to conveying a brand message to its targeted audience to encourage the customers for purchases whereas promotional mix refers to use the tools to attract target audience for purchases • IMC does not involve directly in selling, whereas promotion mix may involve selling through sales promotion • IMC will create long-lasting relationships with customers than a promotional mix • IMC is more concerned with delivering product or service awareness while promotion mix is more concerned with selling products or services using a valid mix ATL vs BTL vs TTL • • Above the Line (ATL) strategies focus at directing the communication towards the mass market All promotional messages are untargeted, meaning they not focus on a specific target group • These strategies help companies reach a larger audience and create brand visibility Implementing ATL activities: • Television: Advertising campaigns directed at the regional or national level • Print media: Promotional messages in newspapers, online articles, and advertisements • Radio ATL vs BTL vs TTL • • Below The Line (BTL) activities are more focused and they are directed towards specific groups of customers They are highly targeted, with advertisements being created keeping in mind the demographic and psychographic characteristics of particular customer segments The communication is highly personalized and the objective is to gain conversions Implementing BTL activities: • Outdoor advertisements: Billboards, fliers, banners, and so on • Direct marketing: SMS, emails, social media posts, pamphlets • Sponsorship: Events • Public Relations: Press conferences, viral marketing • In-store promotion: Visual merchandising, sampling, sales promotions Marcom Components • Major marketing communication Tools ATL vs BTL vs TTL • Through the Line (TTL) advertising involves an integrated approach where both ATL and BTL strategies are combined • The objective here is to get a holistic view of the market and communicate with customers in every way possible all TTL strategies lead to better brand visibility and brand recall • The major challenge of TTL activities is the cost associated with implementing various promotional campaigns What is promotion mix The Promotion Mix • • Major type of communication Tools Advertising—Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor • Each element of the promotional mix plays a distinctive role in an promotion plan/IMC program • Each may take on a variety of forms • Each has certain advantages The Promotion Mix • • • Pervasiveness • Amplified expressiveness • Control The Promotion Mix Major Promotion Tools • Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service to stimulate immediate sales • Discounts, Coupons, Displays, trade show, allowances, price deals • Ability to be attention-getting • Incentive • Invitation • Major Promotion Tools Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events • • Nonpersonal or personal • Paid or nonpaid • Sponsor-controlled or not Publicity – Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor The Promotion Mix • • The Promotion Mix Major Promotion Tools Direct marketing involves making direct connections with carefully • • Major Promotion Tools Personal selling is the personal presentation by the firm’s sales force targeted individual consumers to both obtain an immediate response for the purpose of making sales and building customer relationships and cultivate lasting customer relationships—through the use of • Personal interaction direct mail, telephone, direct-response television, e-mail, and the • Cultivation • Response Internet to communicate directly with specific consumers A View of The Communications Process Models MACROMODEL OF THE COMMUNICATIONS PROCESS • Sender is the party sending the message to another party • Receiver is the party receiving the message sent by another party • Message is the set of symbols the sender transmits • Media refers to the communications channels through which the message moves from sender to receiver MACROMODEL OF THE COMMUNICATIONS PROCESS • Encoding is the process of putting thought into symbolic form • Decoding is the process by which the receiver assigns meaning to the • symbols • • • • Noise is the unplanned static or distortion during the communication Best messages consist of words and other symbols that are familiar to the receiver Feedback is the part of the receiver’s response communicated back to the sender For a message to be effective, the sender’s encoding must mesh with the receiver’s decoding process Response is the reaction of the receiver after being exposed to the message • MACROMODEL OF THE COMMUNICATIONS PROCESS Marketers may not share their consumer’s field of experience but must understand the consumer’s field of experience process, which results in the receiver’s getting a different message than the one the sender sent Steps in Developing Effective Marketing Communication plan Situation audit ( situation analysis) Identify the target audience Determine the communication objectives Design a message Select channels (Choose media) (optional) Decide on media mix/ promotion – mix tools Establish budget Measure Results analyze the current situation P.Kotler Identifying the Target Audience Marketing communications begins with a clear target audience to Identifying the Target Audience • specific the target audience answer these questions: • What will be said (message content) • How it will be said (message structure, format) • When it will be said • Where it will be said • Who will say it (source) Who are your target audiences? => Using segmentation criteria to • Demographic: age, gender, income, family lifecycle, income… • Geographic criteria • Psychographics: lifestyle, social class, personality characteristic • Behavioral criteria: purpose, purchasing location, usage, loyalty, readiness to buy, attitude, occasion… • Target audience might NOT be Target customer all the time, they might Include current customers, potentials customer, employees, stakeholders, or society Identifying the Target Audience Need to understand insight => what problem that they truly have, what are their concern, what are they thinking, feeling about the product • You can using Maslow’s hierarchy of Needs or customer behavior or shopper journey mapping process to find out “insight” Understand the target audience response ( awareness, perception, AIDA v Was coined by Elmo Lewis, and was first adopted in the fields of advertising and sale v It serves as a simple checklist or a reminder for advertising executives when they design advertisements Interest Desire A I D Grab attention Initiate interest Attention Action A attitude, loyalty ) of customer about brand or company • can using AIDA model, 4A, 5A, AISAS, marketing funnel Strengthen Ultimately drive desire action 4A v Derek Rucker (Kellogg School of Management) v The Interest and Desire stages are simplified into Attitude and a new stage, Act again, is added 5A Aware Attitude A1 A2 Act Act again A3 A4 3: Set up the Communications Objectives A1 A2 A3 A4 A5 • Answer the question what you want? Or identify Job-to-be-done • Objectives refer to what the firm seeks to accomplish with its Aware promotional program They are often stated in term of nature of Appeal message to be communicated or what specific communication effects Ask (AIDA, AISAS, 4A, 5A or marketing funnel, customer journey) are to be Act achieved Advocate • objectives may include creating awareness or knowledge about a product and its attributes or benefits; creating an image; or developing favorable attitudes, preferences, or purchase intentions Determining the Communications Objectives • Awareness If most of the target audience is unaware of the Determining the Communications Objectives Preference The target audience might like the product but not • prefer it to others The communicator must then try to build object, the communicator’s task is to build awareness • consumer preference by comparing quality, value, Knowledge The target audience might have brand awareness performance, and other features to those of likely competitors but not know much more • Liking Given target members know the brand, how they Conviction A target audience might prefer a particular product • but not develop a conviction feel about it? Purchase Finally, some members of the target audience might • have conviction but not quite get around to making the purchase SMART objective • Specific: - Be precise about what you are going to achieve • Measurable: quantify your objective • Achievable – are you attempting too much • Realistic: you have a resource to make the objective happen ( people, • Designing a Message (Creative strategy) • Finding customer insight • Design Big idea • implement the message execution (including appeals and execution) • Designing includes the message content, structure and format money, machines, materials….) • Message content—what to say Timed: state when you will achieve the objective • Message structure—how to say it • Message format—through what way to express