Afkortingen=

MC= Marketing communication

Comm = communication

End of each chapter summary

Chapter 1
In this chapter the major developments in marketing have been discussed.
Producers and retailers are forced to position themselves clearly and to
distinguish themselves clearly from competitors. Consequently, marketing
communication has become more important. The comm options are wide ranging
in account of the availability of many marketing communication methods and
media.
There has been a development from transaction to relationship marketing. In
this, the relationship with and the retention of customers is a central issue.
Customer information is kept in a database and used to approach customers on a
more personal basis.
Brand awareness has increased. The development and strengthening of brands
has become more important. A strong brand is an exceedingly valuable
possession for producers and retailers. The factors that influence brand value are
brand image among consumers, market leadership, and packaging and especially
support through marketing communication. Consequently the brand policy and
the choice of brand name are of crucial importance. The brand image is the image
that consumers have of a brand. It comes into existence through personal
experience with the brand and/ or through marketing communication,

A brand has various functions for companies: distinction, continuity higher price,
easier product, product introduction and greater independence from the retail
trade.
For consumers, too, a brand has several functions: distinction and recognition,
buying convenience and psychological function (brand image).
Products and services differ greatly. Consumer markets differ considerably from
business to business markets, not least in communication streams and types of
preferential goods, shopping goods and specialized goods. The distribution of and
communication strategy for these goods differ considerably.

These are various communication streams between producers, retailers and
consumers. These forms of communication must be integrated. A distinction that
is often made is between push and pull strategies. In a push strategy the retailers
are worked on so that they will include the product in their assortments. In a pull
strategy, consumer preferences are created. The ideal strategy is a combination of
push and pull. A successful campaign also needs good cooperation between retail
and producer trade.
Price has a communicative value has well. A high price suggests exclusivity and
high quality. Also remember the psychological price thresholds: products are
often priced just below them (e.g. 19.95) in order to make the expenditure look
less significant to consumers.



Chapter 2
A companys communication mix consists of corporate and marketing
communication. Corporate communication has the entire company as its object
and does not have an immediate sales objective. It is aimed at creating trust in the
company and, if this is damaged by an incident, at restoring that trust and the
companys reputation. The target groups of corporate communication are both
internal and external:
Companies own customers and prospects (potential
customers)
Government and politics
Existing and potential employees
The financial world
Public opinion

The instruments of marketing communication are:
Advertising
Online communication
PR and information extension
Sponsorship
Sales promotion
DM communication
In store communication
Personal selling
Exhibitions

Some methods are predominantly thematic and influence the knowledge and
attitudes of the target group. Other instruments are mainly action orientated and
influence the behavior of the target group. A good marketing communication
plan, in which the marketing communication instruments are integrated, may
result in important synergy for communication. Different target groups require a
different communications approach. The integration of comm campaigns is
becoming more and more important in order to attract attention amidst the
overload of rival communication and to create a distinctive identity. This requires
the proper org of all comm activities.

Chapter 3
This chapter dealt with regulations and codes aimed at preventing and
discouraging undesirable effects of MC. It also provided an overview of the most
frequently used critical arguments with regard to mc.

MC tends to increase the prices of products and brands.
Sometimes this is the case. Consumers are prepared to pay more for a
brand associated with attractive benefits and values. In other cases, mc
leads to price reduction because it increases competition, keeps profit
margins low and leads to a cut in other marketing costs.
The retail trade plays an important role in this, when producer brands co-exist
with store brands, a price drop usually occurs.



MC restricts competition. This may be the case when
monopolies are formed. In many other cases, however, marketing
communication encourages competition. Most research leads to the
conclusion that competition does not decrease when the degree of mc
increases.
Terms: full competition = ideal market for consumers
Monopolistic competition = marktvorm waarbij zeer veel aanbieders een
heterogeen product aanbieden.

MC creates pseudo needs or undesirable spending patterns.
This could be the case, but we should not forget that consumers are brought
into contact with products and brands through comm. It is unlikely that mc
creates needs. There are in fact bans on mc for tobacco and alcohol.

Mc is sometimes used without being segmented. This may
cause irritation among consumers who are not member of the target group.
The following negative aspects are mentioned in this context: an insult to
the intelligence, poor taste, creation if pseudo- reality and the
reinforcement of stereotypes.

A certain degree of exaggeration is inherent in mc. This may be
deceptive to some consumers. In this chapter, an overview was given of
types of deception. Deception occurs when, on the basis of comm messages,
consumers get the wrong image of a product or brand resulting in sub
optimal purchases.

An overview was also the laws and codes that have been developed to prevent and
discourage undesirable effects of mc. The following laws were discussed:
Law on deceptive advertising
Law on games of chance
Sweepstakes
Law on the Protection of Personal Data
Benelux Treaty on Intellectual Property (BTIP)
Food and Drugs Act
Copyright act
Media law

The advertising code has been developed as a sort of self regulation tool, and
contains general and specific rules of conduct with regard to mc for medicines
and medical service, alcohol, tobacco, telephone, info services, games of chance
and environmental claims for products and services.
This chapter closed with a section on the foundation for idealistic advertising.
SIRE shows that mc may promote good causes in society. The mc world
collaborates without charge in SIRE campaigns.

Chapter 4
This chapter discussed the design of a strategic mc plan. Such a plan establishes
what it is to be achieved in specific target group and which methods (budget,
comm instruments, and media) will be employed.
A strategic mc plan consists of nine components. Each of these components has
been discussed briefly in this chapter. They will be discussed in more detail in the
chapters shown in brackets below.
The nine components of the strategic mc plan are:
Research into consumers, products and competition (5)
MC target groups (6)
MC objectives (7)
MC strategy (8)
Choice of marketing communication mix of instruments (13-
21)
Creative development (9)
Media choice (22-23)
Provisional and definitive mc budget (10)
Communication evaluation (11)

Chapter 5
In this chapter, consumer research and its importance to mc, have been
discussed. By means of research we gain an insight into the meaning and value of
products and brands for consumers. The level of consumer involvement is
important. When there is high involvement, there is a more elaborate meaning
structure of features, benefits and values. Means end chains connect these.
Product features lead to the realization of benefits for consumers.

Brands and products have functional and psychological meanings. Psychological
meanings may be expressive or impressive. Products may be categorized
according to the degree of involvement, informational and transformational,
cognitive and psychological meaning. This categorization results in models for the
effects of communication.

Phase models of the effects of communication show how communication works
and in what order these effects occur. In the case of high involvement, the phases
are more elaborate and a change in knowledge and attitude must take place
before behavioral changes. In the case of low involvement, there is less change in
knowledge and attitude e before (purchase) behavior. There are also
subconscious effects of mc. In ATR model, a product or brand is tried first, and
evaluated later.

The scanning model combines the models for high and low involvement. With
high involvement, focusing is extensive, whereas with low involvement, focusing
us limited.
Brands and products may be compared by means of a SWOT analysis.

Brands and products have a life-cycle, characterized by a rise and fall. MC may
contribute to a longer duration of the life-cycle of brands and products. Brand
extension is the use of an existing brand name for new products and services. This
is a way to keep a brand alive and vital.

Chapter 6
This chapter is dealt with target groups for mc. adequate knowledge of target
groups is indispensable for effective comm with them.
There are three levels a segmenting and establishing target groups: general,
domain specific and brand specific.

The general level is concerned with more or less permanent characteristics of
people such as age, sex education and lifestyle. These characteristics are especially
important for a description of segments that have been discovered in various
ways.

The domain-specific level is usually most suitable for segmentation. It
concerns product benefits and values within a specific interest for product
domain.

Brand-specific segmentation is especially suitable for the segmentation of
customers and non-customers on the basis of brand loyalty. Who are the most
profitable customers? How can a company persuade its customers to make more
purchases?

The chapter closed with a discussion of the roles in the decision-making process
in households: those of initiators, influential, decision makers, buyers, payers,
users and, if any, complainants. It is of the greatest importance for mc that this
division of roles on the purchase of products and services is taken into account.

Chapter 7
The objectives of mc are derived from the marketing objectives of companies.
Without objectives, comm policy lacks direction. In order to know whether
objectives have been achieved, it is important to measure the situation before and
after a campaign.
The following eight marketing comm objectives were discussed:
Category need
Brand awareness
Brand knowledge
Brand attitude
Behavioral intention
Behavior facilitation
Behavior
Satisfaction
MC aims to achieve changes in these eight objectives. These objectives were
ranked according to the order in which consumer process info. Category need
is especially important in the case of new products and services, and in order
to promote the use of products and services in general. Only after this, passive
and active brand awareness and brand knowledge become important. There
are different forms of behavior. Satisfaction is an objective in order to retain
customers and to cause repeat purchases.
The DAGMAR model is a good example of the application of clearly
formulated objectives to mc strategy.

Chapter 8
This chapter is focused on comm strategy for products and brands. An important
aspect of this is the positioning of brands, the place of a brand occupies in
consumers perception. Position is the way in which consumers perceive brands in
a product class.

Positioning is a comm strategy in which the benefits of brands are linked to
product features (informational) and/or values (transformational) in order to
achieve a unique and favorable position of the brand in relation to other brands.
Competition and reputation are important factors in positioning.
Depending on the phase in the product life-cycle (new product, growing product,
mature product, and product in the decline phase), there are differences in mc
strategy. For a new product, much explanation is needed for its use and its
benefits. A growing product may distinguish itself functionally, but may also be
given psychological meaning by mc.
For a mature product, product improvements and psychological meaning are
important, but also user satisfaction. A product in the decline phase may be
improved in order to lengthen it life-cycle, but it may also be repositioned.

Chapter 12
In this chapter the origin and history of the Dutch communication agency
business outlined. Twenty years ago, agencies for media planning and purchase
came into existence. The agencies organized themselves into professional
federations, such as:
The VEA is the promotion of economic and trade related interests of its
members.
Pragma - promotes the interest of small and medium size independent agencies
Advertisers formed by BVA - promotes the interests of companies in the field of
mc in the widest sense of the word

A communication agency has the following departments: account, creation,
marketing service, media, finances and traffic. Account executives (AEs) are
responsible for client liaison. Within the agency they represent the client. To the
client they represent the agency.
AEs sell campaign to the client.

The choice of a communication agency is the result of a number of steps involving
comparison, meeting and testing. It is extremely important for a company to
choose an agency that fits in with his ideas.


Good marketing is also dependent on a good relationship between client and
communication agency. Both parties may contribute to a good relationship. There
are various possible arrangements for agency remuneration. The traditional 15%
arrangements are taking their place, such as the cost-plus system, a fixed or
variable percentage of profit, a fixed fee, or a result based fee.

The revenue of a communication agency consists of the following components:
media commission, hours worked, and a surcharge on purchases. The return on
investments of Dutch agencies, however, lags behind the level of 20% that is
deemed necessary internationally.

Creative hot shops - Creative hot shops occupied themselves exclusively with developing
communication concepts. Media advice, market research and other marketing activities
were not part of the services they offered.

Trade associations - Dutch agencies and advertisers have their own trade associations
these are the : The association of communication agencies (VEA), Pragma, the
association of advertisers

VEA - It purpose is the promotion of the economic and trade related interests of its
members. Memberships of the vea is open to agencies n the field of marking
communication that are of high professional standing and that advise their clients on
policies related to mc strategy.

Pragma - founded in 1988, it promotes the interest of small and medium sized
independent agencies.

Association of advertisers - Promotes the interest of companies in the field of marketing
communication in the widest sense of the word.

Account department - the account department is run by account executives, who are
responsible for relationships with clients. AEs maintain regular contact with clients.

Creative department - the creative department in an agency comprises the following
functions ( Copywriters, Art directors, Visualizers, Desktop publishers, RTV department,
Traffic, Production). These functions are together responsible
for developing and producing the communication message.

Traffic department - All work done by the creative department and other departments is
coordinated by project managers and or traffic managers, who are also known as
operations or project management. the people working in traffic and the project
managers are the lynch pin of the agency. They take care of purchasing photography for
instance. they prepare budget and plans and make sure everyone adheres to the budget
and plans.

Marketing services - The account department and the creative department are supported
by a marketing services department. This department helps formulate the
communication strategy. if necessary it carries out research - either using its own staff or
outsourcing to specialized research agencies.

Media plan - the media departments involvement begins with the preparations of a
media plan. a number of choices are made. 1st the types of media to be used are selected
(small companies> one type of media, big companies> multitude of media). after
selection of media types > selection individual media> how these media should be
used ( choices have to be made : times, frequency and formatting).

Media agencies - Specialized media agencies that purchase media space and offer
services like media planning, media strategy and media research.

Services required of an agency - Questions that might been asked :
+Is the agency required to give marketing advice or does the client have sufficient
knowledge and experiences in the field
+Is advice about all mar com methods needed? are specialized agencies required, for
instance, for packaging and sales promotion or is the intention to have all mar com
problems handled by one agency?
+Should the agency be responsible for all work or will the client take care of e.g. printed
matter and simple media placements.
+ Is the agency required only a number of creative concepts and will the client elaborate
these himself, or should the agency do this?
+Is media placement to be handled by a media agency or should this be done by the com
agency?

Quantitative criteria: Size, Turnover development, International links, knowledge and
experience, other clients, staff continuity, finances and location.

Qualitative criteria: The agencys philosophy and the quality of its creative work
Continued talks: talking continuously in order to strike the deal

Commission system: The client and the agency agree a percentage of the net expenditure
covers the agencys costs. the net expenditure is the amount the agency pays the
suppliers and media. the discounts granted on these suppliers and media are subtracted
from them. depending on the type of services supplied, the agency charges commission
on the net expenditure. this commission is the agencys reward for its own performance.

Cost-plus system - the cost plus system is geared entirely to the services supplied. all
hour are billed at an agreed rate, and there is a surcharge on purchases. the plus relates
to the surcharge and the profit margin incorporated in the hourly rate.

Fixed percentage of profit - its just that a fixed percentage of profit the agency and client
can agree on.
Minimum and maximum ROI - This arrangement guarantees the agency a minimum of
ROI but it will achieve a higher return by working efficiently. if the return exceeds the
agreed maximum, the surplus us paid back to the client. for a
client this is also a stimulus to collaborate efficiently.

Fixed fee - for an agreed amount the agency must carry out an agreed work.

Results based fee - Some clients prefer a results based fee arrangement, whereby the
agencys remuneration depends on the results of its efforts.

Media Commission - Sometimes an agency receives a media commission of 15%. these
are the media costs charged to the agency that are 15% lower than the price the client
would have paid if he booked directly.

Hours worked: these hours include the hours that have to do with the creation and the
production of advertisements, commercials, printed matter and other comm messages,
particularly the hours put in by the creative department( all the functions within this
department their costs are above the line costs)

Below the line costs- these are the hours that are spent on advertising, supervising and
coordination; hours spent by AEs, media planners and marketing services personnel.

Chapter 13
The history of advertising goes back more than 2000 years to the Greeks and
romans. The invention of the art of printing and the advent of mass media
strongly increased the potential and the effectiveness of advertising. The first
advertising agency only booked advertising space; later, agencies began to give
advice as to the content of advertising messages. In 1967 the first tv commercials
were shown in the Netherlands.
Advertising has now become an inextricable part of society. Annual media
expenditure per capita in the west us about 2000, but there us a gradual shift
from mass advertising to personal forms of communication and to experience
communication.

There are various types of advertising: consumer advertising( from producer to
consumer), retail advertising(from retailer to consumer), B2B advertising,
personnel advertising and collective advertising. Collective advertising is not
aimed at a particular brand but at a whole category of products and services. This
reinforces category need.
Advertising for an international brand may use a number of strategies: global,
adaptation, before a global or a differentiation and local.
In a global strategy, the positioning, proposition, concept and execution are
identical in all countries.
In an adaption strategy the execution is different in every country. In a
differentiation strategy the concept and the execution differ.
In a local strategy, a different campaign is run in each country and elements may
differ. Before a global or adaption campaign is started, the advantages and
disadvantages of standardization must be carefully considered. They require good
organization and a comparable market position in all countries.
The objectives and benefits of an advertising campaign are brought together in an
advertising plan. The plan is a requirement, but not a guarantee, of a successful
campaign. Media, process and effect objectives can be identified.
Media objectives are related primarily to the reach of the advertising.
Process objectives are concerned with the way in which advertising is processed
by the consumer, in other words with as attention, valuation, etc. media and
process objectives are necessary,
But effect objectives are the ultimate objectives of the campaign.
Through mass media like television, radio, newspapers, magazines and the
internet advertising is an attempt to influence the knowledge, attitudes and
possibly the buying behavior of consumers. To what extent advertising succeeds
in influencing buying is the subject of many accountability discussions.
Using scanning techniques, the short term effects of advertising can now be
established quite accurately, and many researched focus on these. The long term
effects are more difficult to establish.

Effies are prizes awarded for campaigns that have proved to have had the
intended communication effect.
Printing - the invention of printing was one of the major important events which
enabled advertising on a large scale.
Newspapers - After the invention of printing, it was quite awhile before the first
newspaper appeared. the precursors of newspapers were the newsletters written
by hand by professional writers for noblemen and other who wanted to read the
news.
First advertising agencies: Rotterdam House of wijt and sons (1826), Henricus
nigh ( general advertisement agency = 1837), Abraham de la mar (General
Advertisement Agency = 1880)
Uniform media rates: now that there were a lot of agencies, almost every agency
started to drop their prices. the rules for the regulation of advertising came up
with a uniform media rate. this was to even out all prices.
Communicating through the mass media - Communicating through the mass
media has as important advantage that the costs per contact a see relatively low.
on the other hand, the intensity of the contact us usually fairly low as well. the
communication message is aimed at a wide target group and cannot be tuned to
individual needs and requirements.

Experience communication - This term is used to refer to events and other
experiences stage managed by brands. Consumers are invited to experience these
events on their own initiative. The stage-managed event is direct carrier of brand
value. experience communication is closely linked to thematic sales promotion.

Consumer advertising - Its objective is, generally, to increase brand awareness,
strengthen brand image or value, or influence buying behaviour. (producer
retailer)
Retail advertising - In most cases, the primary objective of retail advertising is to
persuade consumers to come to the store and create store-traffic. Therefore the
effectiveness of retail advertising is to be measured in a small amount of time.
(retailer consumer)
Business-to-business advertising: A different type of advertising, more technical
and the emphasis of the message is on functional benefits. (business business)
Personnel advertising- Advertising aimed at potential employees
Collective advertising - Collective advertising is referred to in the case of
advertisement not linked to a brand or product, but advertising for a product
category. The objective is to stimulate category demand and not brand preference.
All suppliers in the sector then work together.
Objectives of a collective advertising:
- Creating an alternative for brand advertising.
- Setting a quality standard. Distinguishing the top-suppliers
of a product or service from the rest.
- Achieving cost savings. Combining forces might reduce costs
of advertising, costs of the products can be lowered. Which is quite useful if
your products are taking hits from indirect competition(substitutes)
- Improving morale and self-confidence in the sector.
- Improving discipline in the sector.
- Improving the technical sophistication or raising the level of
advertising
- Launching a new product
- Entering foreign markets
- Influencing the product image
- Communicating a specific generic message
- Drawing attention to the various possibilities of product
usage
- Emphasizing a specific feature of a product
- Taking advantage of the weak points of the (indirect)
competition
- Influencing attitudes towards a product type
- supporting consumers.
Global strategy.: Same brand and advertising strategy, the same concept and the
same execution in every country. Why? 1. cost saving = one advertising strategy,
creative concept and execution. 2. customers are getting international oriented.
Also referred to as a standardized global, or worldwide strategy. Products as
cosmetics, softdrinks and fashion clothing are often internationally standardized.
An important motive for a global strategy is cost saving. It must be important to
position the brand in the same way in every country, the target group should be
identical in all countries.
Adaption Strategy.
The same brand and advertising strategy and the same concept in every country,
but a different execution
Adaption of the Global Strategy to different cultures. Picking local celebrities for
different countries is an example.
Differentiation Strategy .
The same brand and advertising strategy in every country, but a different concept
and a different execution
Due to the different nature of the product use, life-cycle, positioning or culture in
the different countries, a standardized approach might not work. Local agencies
are allowed to adapt the advertisements by adapting the creative concept, but
maintaining the brand- and advertising strategy.
Local strategy.: a different brand and advertising strategy, a different concept and
a different execution in each country.

Degree of standardization:
- Target group, should be the same in every country
- Positioning, is it possible to position the brand the same in
every country(values)
- Nature of the product (B2B market)
- (Market) Environment
- Organization. GM Opel example.
Advertising plan:
1. Research - composition of the market, consumer buying behavior, the strong
and weak points of ones own brand in comparison with competitive brands
2. Advertising target group - the more accurate a target group is defined the better
it can be reached. the advertising target group doesnt have to be the same as the
mc target group.
3. advertising objectives - These should be relevant to the selected target group.
4. advertising strategy - the proposition must distinguish the brand from
competing brands and it must be credible to consumers.
5. Campaign development - here it is the how that matters. the agency receives a
briefing from the advertisers
6. Media selection - the where and when are relevant here. In which media when
and how often?
7. Definitive advertising budget - after all these phases a definite budget must be
established
8. Execution campaign - placing of advertisements, tv spots
9. Evaluation advertising research - have the formulated objectives been realized

Media objectives. - media objectives relate to the reach and contact frequency of
an advertising campaign. They answer questions: Which part of the target group
is to be confronted with the campaign through which media? How often within a
buying period should they be confronted? and how should they be confronted. the
media objectives also concern the qualitative aspects of the confrontation. they
also want to know about the eventual effectiveness of the campaign.
Process objectives - process objectives are objectives related to the direct
reactions of consumers to an advertising message. Process objectives specify what
should happen between the moment that the consumers are confronted with an
advertising message and the eventual effect of this process. Process objectives are:
1.Drawing attention
2. Creating acceptance and appreciation
3. Aiding information processing

Advertising effect objectives - what the consumers feel think and do in relations to
the brand. A couple of advertising effect objectives are:
1. category need
2. brand awareness
3. brand knowledge
4. brand attitude
5. behavioral attention
6. behavior facilitation
7. behavior
8. satisfaction


Chapter 14
Since advent of the internet, mc has changed radically. The controllability of
comm has decreased. Consumers can take control of a brand or a
communication message. Opinions about brands are broadcasted via windows
live(MSN), twitter and on YouTube funnyand irritating commercials are placed
and downloaded. Companies have partly lost control of their brands and their
comm and now have to anticipate situationbs that may change rapidly. What
matters now is offering consumers relevant info and attractive entertainment
when they are looking for it on the internet. The internet is also a place where
companies may accurately place their messages in form of banners and buttons.
The production and media costs of online mc are considerably lower than in the
offline world. Online media are usually linked to the number of clicks or reads;
production costs involve maintaining customer files and individualizing and
targeting messages.
The measurability of the effectiveness of an online campaign is faster and grater
with web analytics such as google analytics. Communication managers know
almost immediately where visitors to their website come from, how long they stay
on the website and which pages they visit. Possibilities to adjust comm on the
basis on this info have increased and van be realized more quickly. In this sense,
the work of comm managers is becoming more effective. Second life and habbo
are online worlds ion which people meet each other and are confronted with
products and brands.
The online world facilitates the finding of info and selection among alternatives.
Consider in this respect bookstores and travel agencies. The online and offline
worlds are connected, however, when the aim is for the consumer to make a
selection from what is on offer and to plan a store visit.

Chapter 15
Public relations (PR) is more than just a mc instrument. Internal and financial
comm are also part of PR. This causes a considerable overlap between PR and
corporate communication. In this chapter, the various forms of PR were
discussed.
Internal PR is aimed at target groups within an org and comprises function-
oriented, task-oriented, and cohesion-orientated and person orientated
communication.

External PR is aimed at target groups outside a company that are important to
the companys continued existence.
A financial PR or investor relation is aimed at banks and shareholders and is
important for financing a company.

Public affairs is aimed at the societal and political relations of a company.
Marketing PR is part of mc and is aimed at intermediaries such as journalists or
opinion leaders, to obtain favorable publicity for an organization or brand.

Marketing PR is especially used for an intro of a product, new brand and for
special events.

Creating and maintaining good relations with target groups is the (primary)
objective of PR.
Pr is not directly aimed at turnover but may create a favorable climate for the use
of other mc methods. Among the tasks of PR are:
Lobbying
Influencing public opinion
Associating a product with an event
Ghost writing
Issuing press releases
Initiating viral mc
PR may play a role in defensive, assertive, tactical, and strategic reputation
management in order to evoke a favorable, or perhaps less unfavorable, image
among target groups.
Information extension does not have a direct turnover objective either.
Educational, informative and persuasive information extension may be
distinguished. Changes in knowledge and attitudes among target groups are
usually the prime objectives of information extension.

Chapter 16
In the past, sponsorship was sometimes a management hobby. Now sponsorship
has developed into a professional and fully fledged mc instrument. Through
sponsorship, communication objectives may be realized that are difficult to
achieve with other instruments.
The objectives of sponsorship are linked to increasing brand awareness, brand
knowledge and brand value, strengthening brand attitude and brand image,
showing social responsibility, making and maintaining business
contacts(hospitality), and motivating the companys own employees. Sometimes
the objectives are increasing turnover and reaching specific target groups.
Objects for sponsorship are social projects, sports, the arts, culture,
entertainment, events, education and science. Television and radio programmes
are sponsored as well.
The commitments of the sponsor and the sponsoree are usually set out in a
contract. Essentially, the sponsor provides financial support. The sponsoree
makes sure that the brand of the sponsor gets as much favourable exposure as
possible.
It is not only the objectives of a sponsorship that are important. Measuring and
assessing its effects are also vital. According to its effects, a contract may be
prolonged, changed or terminated.
Finally, it is important to select the right sponsored object. It should be carefully
considered whether the object fits in with the sponsors strategy and aims and
whether the desired effects can be achieved at a reasonable price.

Chapter 17
Classical sales promotions are temporary increases in the value or reductions in
the price of a brand in order to generate extra sales in the short term. A sales
promotion may however also be used to influence the experience of and attitudes
towards a brand (thematic sales promotions). Here, turnover is not the focus but
the surplus value of the brand (knowledge and attitude).

The following types of classical sales promotion were discussed:
Temporary discounts
Coupons and refunds
Bonus packaging
Sampling (free samples) and demonstrations

The following types of thematic sales were dealt with:
Give aways
Premiums with additional payment
Premium collections and loyalty programs
Competition

There are various applications of sales promotions: consumer, retail trade and
sales promotions for sales staff.
Consumer sales promotions may have the following objectives:
Attracting new customers
Retaining existing customers
Increasing spending per customer
Stimulating product use
Supporting thematic marketing communication
Introducing a new brand

Trade sales promotions may have the following objectives:
Obtaining the support of the trade for a consumer sales
promotion
Expanding the number of sales outlets
Increasing or diminishing stocks
Improving trade relations

Sales promotions for sales staff may have the following objectives:
Recruiting customers
Increasing the value of orders
Paying extra attention to certain brands
Realizing a more even seasonal spread
Selling brands with a higher profit margin
Improving the performance of shop assistants
Obtaining more in-store displays

Collaborations with retailers is always necessary if sales promotions are to be
carried out successfully, especially in the case of tailor-made sales promotions,
developed especially for a specific chain store. A sales promotion plan is never a
discrete plan. There is always a combination of sales promotions with other
marketing communication methods, especially advertising. Advertising serves to
provide thematic content for and increase awareness of the sales promotions.
Research shows that sales promotions cannot change a failing trend in market
share. On the contrary, the trend is merely reinforced by the sales promotions.


Chapter 18
The unique aspect of Dm comm is that personal data of current and potential
customers are used. This makes it possible to adapt the comm entirely to the
target group and even to individual consumers. DM is particularly suitable for
specialist and shopping goods and financial services. Consumers may also
respond directly to an offer.
The advantages of the direct relationships generated by dm are:
Cost savings by eliminating the retail trade (disintermediation)
Independence from the retail trade
Personalization of the message
Serving customers who are widely distributed
Less waste than with mass comm
Accountability; the effects of DM van be analyzed accurately
Discreet sale of taboo products

The media that may be used for DM are:
Addressed direct mail ( with the name and address of
customers)
Unaddressed direct mail (door to door delivery in particular
postcode areas)
Catalogues
Inbound (call centers) and outbound telephone
communication
Print media, such as newspapers and magazines
Direct response (home shopping) television programs
Interactive media (email and websites)
A DM comm sequence may consist of the following steps: preparation,
proposition, follow up to non-response, after-sales, cross-selling, relationship
management and recruiting campaign. Relationship management may be done
through a brand magazine, club or customers brand.
Good databases are indispensable. Besides socio-demographic data, customers
buying history may be stored in the database. Databases can also be used to carry
out financial tests to access the efficiency and effectiveness of a DM campaign.
Formerly, DM communication was used only to achieve short term turnover
increases. Nowadays, it is more often used to build long term relationships with
customers. This makes DM an instrument suitable for developing customer
relationships with a brand.

Chapter 19
In store communication may determine whether or not consumers will buy a
product in the store. Much buying behavior is impulsive and many (brand)
decisions are not taken until customers are in the store. Attractive packaging, a
display or the sales promotion may then tip the balance.
Various in store media may be used to attract special attention to a brand. The
design and layout of a store are important elements in its positioning. Store
design includes the layout of the store, the combination of product groups and
store furniture.
Visual merchandizing is very important. This includes shelf position and displays.
Both have a function in terms of turnover and communication. Displays may
draw extra attention to products. Displays and other material are often supplied
by producers, but they are by no means always placed in stores.
Packaging is an important element in in-store communication and in the
positioning of a brand. It has the following functions for producers, retailers,
consumers and society:
Protection of the product
Facilitating transport, storage and handling
Recognition of the brand and the product ( the product
uniform)
Increasing the attractiveness of the product or brand
Providing information about the product or brand
Convenience and usage possibilities
Environmental concern

Chapter 20
Personal selling is the oldest and best form of mc. It is, however, also the most
expensive. For this reason, personal selling has to be replaced by and
complemented with other instruments in many cases. Personal selling is ussualy
focused on action and selling, but it may also have thematic objectives such as
giving info to customers and influencing their attitudes.
Personal selling is usefull when it involves:
A small number of customers ( and prospects) who make it
large orders
A small market area
A product with a high purchase price
A long-term obligation
Adaption to individual needs
The need for explanation, instruction or installation
Price negotiation
Counteracting strong ties with another supplier
Consequently, personal selling occurs more often in B2B markets than in
consumer markets.
The personal sales pitch is the most characteristic feauture of this form of
salesperson may follow to arrive at a transaction.
There are various types of salesperson: representatives, account managers, sales
assistants in stores, service merchandisers, resellers and brokers.
The organization and size of sales staff depend on the composition of the
clientele, the product range and the extent of the support by the internal sales
staff. Account management is a modern form of personal selling aimed at
maintaining relationships with big customers at a central level.
Not all products can be sold in self-service stores. In specialist stores and in the
fresh food departments of supermarkets, service personnel are used. The services
of restaurants, GPs and financial institutions are also delivered through personal
contact with customers.



Chapter 21 BITCHES
Exhibitions emerged in the middle ages and have grown into a complex and
intensive instrument of mc. Participation in exhibitions and other events is
complex because other mc instruments and many media play a role. Objectives of
events may be thematic (information, provision and relation management) or
action and sales orientated.

There are various types of exhibitions: general and specialist consumer
exhibitions, horizontal and vertical trade fairs, trade marts, conference-linked
exhibitions, branded events and local events, among which are fetes, black
markets and flea markets.

Compared with other mc instruments, exhibitions have a number of advantages
and some disadvantages.
The advantages mainly concern the personal contact that is possible with
customers and the opportunity for product demonstrations.

Disadvantages are the high costs per contact and the pressure on staff. A possible
disadvantage, too, is that ones own customers may be brought into contact with
competitors at the exhibition may result in delayed purchase of products.

With a plan for an exhibitions and evaluation research it can easily be checked
whether the objectives have been achieved and whether participation has been
cost effective.
A stand at an event is often a multimedia affair. Products are demonstrated but
may also be viewed on DVD or the internet. Through personal contact, visitors are
able to evaluate products and take documentation home.