CIM revision cards marketing communications by gill wood

CIM REVISION CARDS Marketing Communications 04/05 PROFESSIONAL DIPLOMA IN MARKETING 2004 –2005 SYLLABUS Key concepts for revision ● ● ● Relevant! Succinct! Compact! The Chartered Institute of Marketing Helping you to pass your CIM exam CIM REVISION CARDS Marketing Communications Gill Wood AMSTERDAM l BOSTON PARIS l SAN DIEGO l HEIDELBERG SAN FRANCISCO l l l LONDON l SINGAPORE l NEW YORK SYDNEY l l OXFORD TOKYO Elsevier Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 30, Corporate Drive, Burlington, MA 01803 First published 2004 Copyright ß 2004, Elsevier Ltd All rights reserved No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions@elsevier.co.uk You may also complete your request on-line via the Elseiver homepage (http://www.elsevier.com), by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 07506 62875 For information on all Elsevier Butterworth-Heinemann publications visit our website at http://books.elsevier.com Printed and bound in Great Britain TABLE OF CONTENTS Preface Introduction to marketing communications Marketing communication mixes The marketing communications industry Relationships and marketing communications Marketing channels Communication strategies and planning Media Evaluating communications’ effectiveness iv 16 31 43 59 70 83 95 PREFACE Welcome to the CIM Revision Cards from Elsevier/Butterworth–Heinemann We hope you will find these useful when coming to revise for your CIM exam The cards are designed to be used in conjunction with the CIM Coursebooks from Elsevier/Butterworth-Heinemann, and have been written specifically with revision in mind They also serve as invaluable reviews of the complete modules, perfect for those studying via the assignment route n Learning outcomes at the start of each chapter identify the main points n Key topics are summarized, helping you commit the information to memory quickly and easily n Examination and revision tips are provided to give extra guidance when preparing for the exam n Key diagrams are featured to aid the learning process n The compact size ensures the cards are easily transportable, so you can revise any time, anywhere To get the most of your revision cards, try to look over them as frequently as you can when taking your CIM course When read alongside the Coursebook, they serve as the ideal companion to the main text Good luck – we wish you every success with your CIM qualification! INTRODUCTION TO MARKETING COMMUNICATIONS LEARNING OUTCOMES å å å å Describing the communications process Understanding how marketing communications work Appreciating how information is processed Explaining the purchase decision process Syllabus Reference: 1.1–1.3 Unit Definition of marketing communications } Marketing communication or promotion is one of the elements of the marketing mix and is responsible for putting the marketing offer to the target market It is the planned and integrated communication activity that communicates with an organisation’s stakeholders (Fill, C., 2002) ~ MARKETING COMMUNICATIONS INTRODUCTION TO MARKETING COMMUNICATIONS The communications process Shannon and Weaver’s simple model of communication (1958) shows the various stages of the communication process Source: Fill and Yeshin: CIM Coursebook Integrated Marketing Communications (Elsevier Butterworth–Heinemann 2001) Opinion formers and leaders Word-of-mouth communications The effectiveness of the process is also determined by: Word-of-mouth communication is highly credible n The communication environment Persuasive communications must be: n The mood of the people involved in the process n Credible – if the source is seen to be objective n Opinion formers and opinion leaders n Attractive – if consumers can identify with the source Opinion formers tend to be ‘experts’ such as travel journalists and their messages are seen to be more believable than a travel advertisement n Powerful – if the source can reward or punish Opinion leaders tend to be from one’s own peer group who may have an interest in a topic Alternatively, they could be members of pressure groups or celebrities who are admired by particular target audiences MARKETING COMMUNICATIONS INTRODUCTION TO MARKETING COMMUNICATIONS Multi-step models Multi-step models reflect life more accurately than simple models because they show how people talk to and influence each other Source: Hughes and Fill: CIM Coursebook Marketing Communications (Elsevier Butterworth–Heinemann, 2004) How marketing communications work No one model can explain how marketing communications work The AIDA model was an early attempt to explain how an advertising’s target audience might pass through a number of steps, with attention being the first and most important one Source: Kelley and Hyde: CIM Coursebook Marketing in Practice (Elsevier Butterworth–Heinemann 2002) MARKETING COMMUNICATIONS Media and its role in relationship building Various media forms have a role in establishing and developing relationships with consumers: n Initial stimulus – provided by main media, such as television, newspapers, etc n Response – a ‘passive’ response may occur with the information being ‘stored’, or an ‘active’ response may occur where the receiver decides to get further information or make a purchase n Interactivity – as relationships develop, online media and call centres may be used to elicit interactivity n Ongoing contact and involvement – can occur through the use of databases to target direct mail MARKETING COMMUNICATIONS 91 MEDIA The Internet and interactivity Most Internet activity is directed at b2b markets, although it is still used to communicate with b2c markets The following applications are used: n Websites – These provide text and graphic information, but music and video streaming can also be used They can also be used to attract visitors and enable two-way communication with customers They can also be used for information or for transactional purposes 92 n Banner advertising – Advertising on a website, where customers can click on the advert to be connected to the advertiser’s website n Extranet – Where external stakeholders are given access to specific areas of information on a website, to create a two-way communication flow n Intranet – Where staff are given access to specific areas on a website, where information can be shared between staff and management n E-mail – Used in e-marketing in the same way as mailshots Benefits of e-communication Can save costs Can generate quick response Good for two-way communication Can expand to global market Can result in better management of supply chain n Can enhance reputation n Gives customers convenient access n n n n n MARKETING COMMUNICATIONS 93 MEDIA Digital technology With the advent of digital technology used in television and radio broadcasting, audiences have a greater choice of how and when they watch/listen They can also interact, using certain buttons to find out more or communicate their views The increase in channels has led to media fragmentation Trends indicate that, although advertising spend on traditional terrestrial television channels has decreased, advertising has become more targeted with the increase of channels 94 A Comparison of New and Traditional Media Traditional media New media One-to-many One-to-one and many-to-many Greater dialogue Passive provision Individualized Personalized Information Communities Greater monologue Active provision Mass marketing General need Branding Segmentation Source: Fill (2002) Hints and Tips This unit has examined the roles that different main media play in the communication process and the criteria involved in selecting the media It also examines some of the key media efficiency and valuation measures The unit gives an overview of how electronic media helps create two-way communication flows For examination purposes, ensure that you identify the issues associated with new media and digital technology It is important that you compare and contrast new and traditional media Finally, you should also spend some time considering media’s role in relationship building Go to www.cimvirtualinstitute.com and www.marketingonline.co.uk for additional support and guidance MARKETING COMMUNICATIONS 95 EVALUATING Unit COMMUNICATIONS’ EFFECTIVENESS The Aim of Marketing Communications LEARNING OUTCOMES å Understand the importance of evaluation in marketing communications planning å Consider how the success of coordinated campaigns can be measured å Explain how different marketing communications can be assessed for effectiveness Syllabus Reference: 2.2, 2.4, 2.5, 2.12, 2.16 The Importance of Evaluation It is vital to determine if marketing communication goals, in relation to messages, targets, media and timing have been achieved Advertising agency clients are under more pressure than ever before to measure their effectiveness if they are to retain client accounts Marketing research can be used and new technology provides new measurement techniques to test effectiveness Evaluation is about finding appropriate ways to measure effectiveness There is rarely a ‘perfect’ measure, but a variety of mechanisms can be used to evaluate the extent to which communication goals have been achieved MARKETING COMMUNICATIONS 97 EVALUATING COMMUNICATIONS’ EFFECTIVENESS Evaluating Coordinated Campaigns It is important to evaluate campaigns holistically: Evaluation can occur before, during and after a campaign n Analysis – through analyzing main markets n Objectives – through checking objectives n Planning – determining strategic options and coordinating timing of activities n Budgets – determining appropriate spend n Media – by taking a media-neutral approach n Marketing mix – by ensuring that communications fit in with the marketing mix n Customer service – by ensuring that appropriate mechanisms are in place to deal with customer communication resulting from promotion n Creativity – by ensuring creativity runs through the whole process Effectiveness of coordinated campaigns should be based on the degree to which promotional objectives have been achieved 98 Evaluation of Advertising Pre-testing (or copy testing) involves showing an unfinished advertisement to a focus group to check if it meets communication objectives Different techniques can be used: n Internal – checklists and readability analysis n Communication effects – physiological tests, recall and direct opinion measurement n Behavioural effects – to measure actual response via trailer tests and split scan procedures Post-testing involves evaluating a campaign after its release n Recall tests assess how memorable an ad or campaign was n Recognition tests assess how well information can be reprocessed n Likeability tests can be useful predictors of sales success n Tracking studies assess perception on an ongoing basis n Responses in the form of returned coupons or orders can also comprise post-campaign analysis MARKETING COMMUNICATIONS 99 EVALUATING COMMUNICATIONS’ EFFECTIVENESS Evaluation of sales promotions Typical evaluation methods will include: n Consumer audits used to indicate success of trial product giveaways and repeat purchase promotions n Sales information can be used to show sales increases after promotions n Retail audits can track changes in stock changes and market share after campaigns n Sales force feedback provides qualitative information n Voucher/coupon redemption can be coded to assist in the measurement of response for particular campaigns 100 Evaluation of public relations Typical evaluation methods are: n Awareness – by using marketing research to assess levels of awareness in the market n Attitude – by using research to judge if attitudes have changed positively or negatively n Media coverage and tone – can measure the number of column inches achieved, the type of headings and tone of coverage n Positioning – by measuring the position of the organization in comparison to the competition n Response generation – if an article provides contact details, the amount of telephone response or website hits can show response to PR coverage n Share price – this can be affected negatively or positively, depending on the PR that is generated n Sales – while PR is not usually linked with sales directly, a significant mention on television or radio, or in print, can affect sales negatively or positively MARKETING COMMUNICATIONS 101 EVALUATING COMMUNICATIONS’ EFFECTIVENESS 102 Evaluation of direct and interactive marketing communications Typical evaluation methods are: n Response rate – the number of responses to a mailshot is counted n Conversion rate – the number of responses that are converted to orders is counted n Order value – the value of orders is calculated n Cost per enquiry and/or order – used to calculate the overall effectiveness of a mailshot or e-marketing campaign n Click-through rates measure the number of people that visit a website from an online advertisement Evaluation of sponsorship Typical assessment methods are: n Media exposure measurement – to measure how much media coverage the sponsorship activity achieved n Pre-testing and post-testing of awareness in relation to sponsorship activity Brand evaluation Research can also be conducted into the overall brand performance looking at: n n n n Brand vision Brand essence Organizational structure Brand resourcing n Feedback from participants – qualitative feedback from customers, sponsored party and other stakeholders to determine effect on corporate image MARKETING COMMUNICATIONS 103 EVALUATING COMMUNICATIONS’ EFFECTIVENESS Evaluation of personal sales Typical monitoring methods of sales visits or telephone calls are: n Productivity – number of calls in relation to number of orders n Account development – number of new accounts or growth from existing accounts n Expenses – amount of new business in relation to cost of keeping account 104 Hints and Tips This unit has focussed on evaluating the effectiveness of various marketing communication activities Although individual activities are measured, there are signs that measuring the effective co-ordination of campaigns is considered to be the best way to determine overall success of marketing communications It is important to be able to cite various up-to-date examples of how organizations and agencies have measured the success of different campaigns Ensure that you update yourself on the ways that interactive and digital technology are monitored to determine effectiveness For assessment purposes, it is essential that you can appreciate a variety of different ways to monitor the success or not of a campaign, rather than just citing one evaluation method Go to www.cimvirtualinstitute.com and www.marketingonline.co.uk for additional support and guidance MARKETING COMMUNICATIONS 105 ... Introduction to marketing communications Marketing communication mixes The marketing communications industry Relationships and marketing communications Marketing channels.. .CIM REVISION CARDS Marketing Communications Gill Wood AMSTERDAM l BOSTON PARIS l SAN DIEGO l HEIDELBERG SAN FRANCISCO l... Source: Hughes and Fill: CIM Coursebook Marketing Communications (Elsevier Butterworth–Heinemann, 2004) How marketing communications work No one model can explain how marketing communications work