MARKETING COMMUNICATIONS

STRATEGY
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Content
1 MARKETING COMMUNICATION STRATEGY 3

The Marketing and Importance of Marketing Communication 3
The Marketing Mix 16
Integrated Marketing Communication 20
2 A THEORETICAL UNDERSTANDING OF MARKETING COMMUNICATIONS 24
Communication Theory 24
Types of Buying ituation 32
The Inter!ening !aria"#es 3$
3 MANAGING THE MARKETING 39

%!a#uating Marketing Communications &cti!ities 3'
e#ecting The Message ource 64
(roduct )ife*cyc#e tage $3
4 SUCCESSFUL MARKETING STRATEGIES 74

(roducts and er!ices for Consumers $4
5 INTERNATIONAL MARKETING COMMUNICATION 82
+#o"a# (erspecti!e ,2
(ersona# e##ing and a#es Management ,'
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6 WIDER ISSUE OF MARKETING COMMUNICATION 98
)ega# Constraints ',
Cu#tura# -i!ersity 100
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Module 13 Marketing Communications Strategy 1 Marketing Communication
Strategy

The Meaning and Importance of Marketing Communications
Marketing depends hea!i#y on an effecti!e communication f#o. "et.een the company and the
consumer/ Manufacturing a product and making it a!ai#a"#e on the market is on#y a part of the
company 0o"/ It is e1ua##y important2 or perhaps more important2 to make it kno.n to the consumer
that the product is a!ai#a"#e in the market/ In a competiti!e market2 .here se!era# firms are stri!ing
to .in o!er consumers2 it is not enough if the a!ai#a"i#ity of a product on#y is made kno.n to
consumers/ It is a#so essentia# to propagate the distincti!e features of the product/ The process does
not end here2 either/ The firm shou#d a#so get feed"ack on ho. the consumers accept its products
through an effecti!e2 continuous and t.o*.ay f#o. of information "et.een the firm and the
consumer/
&ccording to the traditiona# !ie. he#d "y marketing men2 the 3promotion mix4 consisting of persona#
se##ing2 ad!ertising2 sa#es promotion and pu"#icity2 is the on#y instrument a!ai#a"#e for
communicating .ith the consumer/ Marketing #iterature a#so adopted same approach and descri"ed
the promotion mix as the so#e instrument of marketing communications/ This approach has2
ho.e!er2 undergone significant changes o!er the years/ Today2 "esides the promotion mix2 other
entities #ike product2 price and p#ace are a#so !ie.ed as components of marketing communications/
In other .ords2 a## the four (s of marketing are considered as components of the communications
mix of the firm/
The firm attempts to communicate .ith the consumer through 1ua#ity products2 co#orfu# packages2
.ritten messages2 pictures and sym"o#s2 attracti!e sho.rooms and efficient sa#esmen/ 5hen these
!arious stimu#i are recei!ed and interpreted "y the consumer2 marketing communication takes p#ace/
The communication a#so in!o#!es feed"ack from the consumer to the company2 on ho. the tota#
product offering of the company is recei!ed "y the market/
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1 Marketing Communication Strategy
Definition of Marketing Communications
o2 marketing communications can "e defined as the phenomenon of presenting a set of messages to
a target market through mu#tip#e cues and media2 .ith the intention of creating a fa!ora"#e response
from the market to.ards the company4s tota# product offering2 simu#taneous#y pro!iding for market
feed"ack for impro!ing and modifying the company4s tota# product offering/
This means that the firm is a sender of market messages and recei!er of market responses/ In its ro#e
as a sender of messages2 the firm communicates .ith the market not on#y through promotiona#
stimu#i "ut a#so through product2 price and p#ace or point of sa#e/ In its ro#e as a recei!er of market
responses2 the firm co##ects information through market research and marketing information systems/
6nder marketing communications2 .e sha## confine our discussions to the communication f#o. from
the firm to the consumer/
Marketing communication in effect .orks as indicated "e#o.7
(roduct communicates
(rice communicates
(#ace 8point of sa#e9 communicates
(romotion communicates
Marketing Communication Through Product Cues
The product is a carrier of certain messages : product messages/ It con!eys certain meanings
through its co#our2 its shape and si;e2 its physica# materia#s2 its package2 its #a"e#s and its "rand
name/ & product is no more !ie.ed as a mere non*#i!ing o"0ect/ 5hether it is a toi#et soap or a
toothpaste2 a toy or an aftersha!e #otion2 a "ott#e of "eer or a pair of shoes : it is not !ie.ed "y the
consumer as a mere o"0ect/ Consumers attri"ute meaning and significance to a product2 in turn2
pro0ects a persona#ity of its o.n/ & purchase is the resu#t of these t.o processes/ It is this image or
tota# persona#ity f the product that communicates .ith the consumer/
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&## these factors are sources of product cues or product messages to the consumer/ They
communicate something a"out the product through carrying certain impressions/ )et us see ho.
different constituent e#ements of a product2 function as communicators/
The physica# features2 the materia#2 the si;e2 shape2 design2 the finish2 etc2 of the product
The "rand name=company name
The package2 its co#our2 si;e2 design and #a"e#ing
&## these factors are sources of product cues or product messages to the consumer/ They
communicate something a"out the product through carrying certain impressions/ )et us see ho.
these different constituent e#ements of a product2 function as communicators/
Physical Features of the Product Communicate
To "egin .ith the product communicates through its physica# features/ Its materia#2 its design2 co#our2
shape2 and oduor2 finish : a## these features con!ey something to the "uyer/ (ink co#our2 o!a# shape2
0asmine scent2 si#ky fee#2 pocket si;e2 feathery touch : they are a## product features .ith great
communicati!e and conse1uent persuasi!e !a#ue/
The communication can "e !isua#2 through sight2 it can "e tacti#e through touching and fee#ing the
product or it can "e through performance through seeing the product functioning/ -epending upon
the nature of the product2 the different communication routes : !isua# communication2 tacti#e
communication and performance communication : take precedence/ In many cases2 a## these
communication routes operate on the consumer e1ua##y strong#y/ 5hen a .oman "uys a sari2 !isua#
communication takes p#ace first/ The co#or2 the design2 and the materia# impress her/ he then
touches it2 fee#s it2 examines it c#ose#y2 a tacti#e communication takes p#ace/ Tacti#e communication is
not confined to products #ike saris/ %!en in the case of non*aesthetic products or ferti#i;ers2 norma##y2
pushes his hand deep into the "ag to fee# the product/ (erformance communication "ecomes
important in certain products/ & person "uying a cost#y toy examines its performance2 in the shop
itse#f/ More than !isua# and tacti#e communication2 here2 the product has to communicate its a"i#ity
to perform/ In high*priced dura"#es2 performance is an important communication cue/
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The Package Communicates
The ro#e of package in the de!e#opment of the product persona#ity is in managing the product/ It
sho.s ho. the package takes up the ro#e of a si#ent sa#esman in the she#f=counter of the retai# shop/
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>or packaged consumer products as a group2 the package has e!o#!ed as a po.erfu# communication
too#/ It communicates a #ot/ The package pro!ides the first appea#? to the consumer/ The actua#
product comes on#y #ater/ The package is there to "e seen and fe#t/ Its co#our2 its shape and si;e2 its
#a"e#s and #ettering2 the "rand name2 the materia# used : they a## carry some communication cues/
The Colours on the Package Communicate
Co#our has great communicati!e significance/ There are co#ours2 there are du## co#ours2 there are
soothing co#ours and there are in!iting co#ours/ There are co#ours e!oking appetite2 and co#ours
in!iting s#eep/ There are co#ours associated .ith prosperity and co#ours associated .ith #o!e and
romance/ There is the co#our of .ar and aggression and the co#our of peace/ There are co#ours
associated .ith festi!a#s and co#ours associated .ith mourning/ @ace effects co#our preferences/
C#imate affects co#our preferences/ A"!ious#y2 co#our has a great communicati!e significance in
packaging/ It is a source of emotiona# en0oyment to most peop#e/ Co#our psycho#ogy and #earned
responses to co#ours can "e uti#i;ed to great effect in packaging and ad!ertising/ The right co#our or
the right com"ination of co#ours on the package can "oost the communicati!e appea# of the package/
Business firms ha!e paid a great dea# of money to psycho#ogists and research institutions to disco!er
the co#ours and co#our pattern that .i## inf#uence peop#e in their purchases/ It is not "y accident that
a #arge num"er of packages disp#ayed on the she#!es of any store are of shades of red and ye##o./
@esearch has sho.n that red and ye##o. arrest the eyes and attention/ These co#ours a#so make the
package #ook a #itt#e "igger than .hat it rea##y is/ @ed is a#so associated .ith !ita#ity2 po.er2 and an
urge to .in/ Manufacturers of cigarettes and soft drinks are extensi!e users of red in .rappings/ B#ue
is deemed to con!ey peace2 contentment and security/ &nd "#ue co#or is .ide#y used "y "anks and
manufacturers of cars in their sym"o#s=#ogos/ &nd as a genera# ru#e2 chi#dren are found to prefer
"right co#ours and adu#ts2 su"dued co#ours/
The co#ours on the package communicate instant#y/ & cake of soap in a #ight "#ue package may
capture the attention of a cu#tured young #ady2 a toy in a "right red package may attract a young "oy2
a fro;en food in #ight orange packing may attract a midd#e aged house.ife2 choco#ates in a #ight "#ue
and pink package may attract a gir# in #o!e2 a "ook co!ered in su"dued ye##o. and "ro.n may attract
an inte##ectua#/ o2 the co#our p#an of the package can ha!e te##ing communicati!e effect/ The right
co#our scheme .i## communicate the nature of the contents2 it .i## capture the attention of
,
consumers2 it .i## ref#ect the neatness and e#egance of the product inside2 it .i## faci#itate easy
reading of the instructions and in effect2 it does the initia# se##ing through these communicati!e cues/
Package Design
Bust #ike the co#our of the package2 its si;e2 shape and design too ha!e a communicati!e ro#e/ & good
package design is eye*catching and is not a strain for the consumer .ho #ooks at it and examines it/
& "ad package design can harm the tota# product message/ The product might "e a 1ua#ity product2
"ut it may not get accepted in the market if the package design does not succeed in e!oking a
fa!oura"#e response/ (ackage design and co#our ha!e to "#end rhythmica##y to make the package
communication effecti!e/ (ictures2 #a"e#s and other i##ustrations on the package increase its
communicati!e !a#ue/
The Brand Name Communicates
Brand name as a component of the tota# product has a great communication !a#ue/ Co .oman asks
for 0ust facia# make*up2 she asks for ponds2 or )akme/ he does not ask for shampoo2 she asks for
Da#o2 unsi#k2 Tiara or +#eem/ >or the uti#ity ang#e2 any of these products may ser!e the purpose/
But a "uyer identifies products and distinguishes one from the other through the "rand name/ &nd
this is the main function intended of a "rand name : to distinguish the company4s product from its
competitor4s products/ &n imaginati!e "rand name communicates .ith prospecti!e "uyers "y
e!oking positi!e meanings and associations in their minds/ Da#o or (onds -reamf#o.er2 unsi#k or
signa#2 &nge#face or +#eem2 +odre0 or .an : they a## con!ey a message to the "uyer/ & good "rand
name shou#d "e a"#e to suggest to the "uyer2 .hat type of product it is2 products2 through a
successfu# "rand strategy2 psycho#ogica# product differentiation can "e created/ Euite often2 the
"rand names are supported "y s#ogans .hich can "e easi#y remem"ered2 or .hich ha!e great
reminder !a#ue in the market/ In the Indian market2 )ife"uoy2 #ux2 !ima#2 nirma and c#ose*up are
examp#es of "rand names that ha!e succeeded remarka"#y in their communicati!e ro#es/
The Company Name Communicates
In addition to the "rand name2 firms a#so use the company name2 for marketing communication/ >or
examp#e2 most of the products of the house of Tatas carry the suffix : 3& Tata product4/ (roducts for
+odre0 for "athing soaps to stee# cup"oards2 se## under the company name +odre0/ In such cases2 the
firm is actua##y using the company name and the image of the company as a marketing
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communication too#/ uch communication has a specia# uti#ity .hen the company introduces a ne.
product="rand/ The company name2 as a part of the product persona#ity2 can contri"ute su"stantia##y
as a marketing communication too#2 on#y .hen the company has a#ready earned a name and
reputation in the market/
In Short, the Product Sends out Multi-Pronged Messages
The product seen "y the consumer is the sum tota# of the !arious product messages : the co#our2 the
shape2 the fee#2 the design2 the oduour2 etc2 of the product2 the co#our2 the si;e2 and the #ettering2 the
#a"e#s2 and the pictures on the package2 the "rand name=company name and the s#ogans/ >or the
consumer these are a## sym"o#s2 and a## of them mean something to him/ This meaning shou#d "e
positi!e/ The product messages and the product cues shou#d "e designed in such a .ay that they
e!oke a positi!e meaning and fa!oura"#e response in the mind of the "uyer/ o it is not on#y the end
use or the function of the product that matters in marketing : though it shou#d certain#y stand this
test : "uyers for the purchase to take p#ace2 or for e!oking an initia# interest in the product/ If this
communication is to "e successfu#2 the !arious product cues must support and comp#ement one
another and produce a tota# product image that is fa!oura"#e and appea#ing to the "uyer/
Marketing Communication through Price Cues
(rice Con!eys omething More than the (rice
It is not our intention here to ana#y;e the "asic concepts and strategies of pricing/
Price-Quality Equation
5hat are the informati!e cues that price pro!ides to consumersF Euite fre1uent#y2 consumers !ie.
price as an index of 1ua#ity/ 5hen se!era# "rands of the same product are a!ai#a"#e2 consumers tend
to use price as a cue to 1ua#ity/ The higher priced "rand succeeds in gi!ing greater 1ua#ity assurance
to the "uyer/ imi#ar is the case .ith products that are used as gifts2 .hen a person se#ects a gift item2
he norma##y #ikes to a!oid a cheap "rand/
Module 13 Marketing Communications Strategy 1 Marketing Communication
Strategy
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5ithin his "udget2 he may se#ect the higher priced "rand from the !arious a#ternati!es a!ai#a"#e/
Dere a#so2 price as an informationa# cue p#ays a key ro#e in his decision*making process/ De may not
"e sure a"out the 1ua#ity of the "rand he is se#ecting/ But the price2 a#ong .ith other informationa#
cues2 gi!es him an assurance of 1ua#ity/
Price-Status Equation
(rice2 in certain cases "ecomes a sym"o# of prestige or status for the "uyer/ This is 1uite often true of
high priced consumer goods/ The status conscious "uyer uses high price as a status sym"o#/ 5hen he
proud#y dec#ares that this is the highest priced "rand in the market2 he is using price as a sym"o# of
prestige/
Price, an Indicator of Technological Superiority
Techno#ogica# changes that resu#t in product inno!ations a#so tempt the customer to use price as the
most re#ia"#e information cue/ & potentia# "uyer in search of a good refrigerator may come across
different "rands2 each c#aiming a distincti!eness and 1ua#ity performance2 and #isting out its
techno#ogica# features/ 5hi#e such product information is a#so intended to "e an essentia# message
carrier to the customer2 the #ayman .ho is not .e## !ersed .ith the technica# c#aims may u#timate#y
re#y on the price cue as a measure of product exce##ence/
Consumers4 concept of 3 a reasona"#e price4
In the case of certain products2 consumers de!e#op an idea of a reasona"#e price/ They may not kno.
anything a"out the company4s cost of production of the materia# or the profits the company intends
to make/ The reasona"#e price they assume might "e "ased on prices of simi#ar products a!ai#a"#e in
market/ 5hen the actua# price of a gi!en "rand is more than the reasona"#e price they ha!e assumed2
they are re#uctant to "uy/ &nd if the price is much #o.er than the reasona"#e price2 the consumers
may then suspect the 1ua#ity/ & price that comes c#ose to the reasona"#e price a#one .i## find
acceptance in the market/
o the marketer has to necessari#y remem"er that price is not mere#y an economic too#/ The
psycho#ogica# effects of price on the consumer ha!e to "e taken into account2 and the communicati!e
ro#e of price has to "e exp#oited to make the tota# product offering attracti!e to consumers/
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Place as a Component in Marketing Communication
Euite often .e hear peop#e saying7 3I "uy on#y from G store4/ 3if you ask them .hy their rep#ies may
run #ike this/ 3They ha!e a "ig choice42 3It4s a #o!e#y p#ace to shop in42 3The ser!ice is good2 3It is
cheap42 3It has a good #ocation2 3They se## 1ua#ity products4/
The Store Image
Bust #ike the product pro0ecting its image2 the store a#so pro0ects an image of its o.n through !arious
factors such as2 its #ocation2 its externa# #ooks2 its disp#ays2 and point of sa#e promotion2 its sa#esmen2
the extent of merchandise it carries2 the extra ser!ice it offers2 its po#icy on price2 its reputation in the
#oca#ity2 the type of customers .ho patroni;e it/ Dis father may find the same store decent and
re#ia"#e/ The youngster may #ike to shop .ith a modern exterior design and interior decoration2 .ith
a spacious shopping space and good disp#ay/
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Music adds to his p#easure and the shop cosmetics from a cheap*#ooking store/ he may "uy the
same item form the ne. shopping comp#ex .ith its g#amorous appearance and co##ections/ The
extent of merchandise carried in the store a#so he#ps pro0ect its image in a fa!ora"#e manner/ (eop#e
norma##y do not #ike to patroni;e a poor#y stocked shop/ They .ou#d #ike to !isit stores !ariety/ In
addition to these physica# features of the store2 the sa#es personne# in the store a#so p#ay an important
ro#e in marketing communications/ 5e## trained and .e## mannered sa#esmen add to the store image/
Store Level Merchandising
Aften2 it is merchandising at the store #e!e# : a## those dea#er #e!e# acti!ities2 inc#uding disp#ay and
ser!ice : that speeds up the mo!ement of products from the store counter to the shopper4s "asket/ &
consumer2 .ho norma##y goes to a retai# store to "uy his usua# "rand2 may s.itch o!er a competing
"rand seeing the product on disp#ay/ In today4s high#y competiti!e market2 many companies see to it
that the store as a tota# unit "ecomes a disp#ay unit attracting high consumer traffic/
Store, a Powerful Communication Instrument
The persuasi!e ro#e of the retai# store and the need for creating a good store image has "een
high#ighted/
Tools and techniques of sales promotion
>or a marketer resorting to sa#es promotion2 a !ariety of too#s and techni1ues are a!ai#a"#e/ a#es
promotion #etters2 cata#ogues2 point of purchase disp#ays2 customer ser!ice programmes2
demonstrations2 free samp#es2 discounts2 contests2 s.eepstakes2 premiums and coupons are the
common#y resorted methods of sa#es promotion/ )et us discuss them in some detai# and see ho.
companies ha!e used these methods in actua# marketing situations/
a#es promotion #etters
e!era# #arge companies uti#i;e the medium of #etters for sa#es promotion/ These #etters ser!e
different purposes/ ometimes2 they are used to gi!e information a"out the company4s products?
sometimes they are reminders to "uy a particu#ar "rand/ ome conducted on the efficacy of #etters as
a medium of sa#es promotion indicate that a good #etter must seek action from the recei!er/ a#es
promotion #etters are sent to sa#esmen2 dea#ers and consumers/
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Catalogues
Cata#ogues carry essentia# information on the products offered "y the company7 5e## designed
cata#ogues gi!e comp#ete information re#ating to products2 their pictures2 si;e specifications2 co#ours2
packing2 uses and prices/ The products are proper#y #isted and indexed to faci#itate order "ooking and
processing/
POP/Display
(oint of purchase promotion 8(A(9 is one of the most .ide#y used sa#es promotiona# too#s/ It is a#so
sometimes referred to as point of sa#es promotion/ 5ith the pro#iferation of "rands2 inno!ati!e
disp#ays ha!e "ecome a prere1uisite for success/ Brands compete .ith each other for consumer4s
mind has "ecome the prime concern of marketers/ Dence the important of (A( disp#ay/
Harious kinds of disp#ay materia#s #ike posters2 dang#ers2 stickers2 mo"i#e .o""#ers and streamers are
used at the retai# shop #e!e# to induce purchase/
In the modern context of high intensity marketing2 the retai#ers are !irtua##y f#ooded .ith (A(s "y
a## manufacturers/ If they are 0ust dumped in a forsaken corner of the shop2 the "rand does not get the
intended sa#es promotiona# "enefit from the (A(s/ An#y those .ho can manage to get the right
disp#ay effect .i## "enefit form (A(s/
To enhance the disp#ay effect2 manufacturers use se!era# gadgets and approaches/ I##uminated
designs2 motion disp#ays2 etc2 add to the disp#ay effect/ ome companies organi;e disp#ay units and
#ocate them at !antage points .ithin the store attracting the attention of store traffic/ ki##fu##y
designed and strategica##y #ocated disp#ay units can enhance the sa#es appea#/ More and more firms
are going on for inno!ati!e disp#ays to gi!e their "rands !isi"i#ity in today4s cro.ded shop she#!es/
5hen Cest#e #aunched Maggi Cood#es2 .ay "ack in 1',32 they used a uni1ue dispenser2 the .ire
mesh "ag/ Cot on#y did it he#p in "rand identification2 it .as he#pfu# to the retai#er too/ The dispenser
hung from the cei#ing he#ped him to sa!e she#f space/ Cad"ury too came .ith space a!ai#a"#e in the
retai# store2 "ig stocks of a gi!en "rand are artistica##y arranged to gain attention/ Customi;ed racks
are a#so "eing used for disp#ay effect/ In fact2 in the paucity of space2 companies #ike (rocter I
+am"#e2 Cest#e2 Dindustan )e!er2 )akme and Tips and Toes make year#y "ookings for disp#ay space/
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-isp#ays ha!e their origins in the age*o#d "e#ief that goods .e## disp#ayed are ha#f so#d/ -isp#ays can
"e of !arious types : .indo. disp#ays2 counter disp#ays2 or f#oor disp#ays/
Demonstrations
Companies resort to product demonstrations for sa#es promotion2 especia##y2 .hen they are coming
up .ith a ne. product/ In India2 in recent years2 se!era# products : #o. unit price products #ike
"e!erages and .ashing po.ders as .e## as high unit price products #ike .ashing machines and
persona# computers : ha!e uti#i;ed product demonstration as a too# of sa#es promotion/
Demonstrations at Retail Stores
ometimes2 company sa#esmen for the "enefit of retai#ers as .e## as consumers organi;e
demonstrations at retai# stores/ This is an important ro#e of retai# stores/
School Demonstrations
5hen the product happens to "e a cost#y one and a hi*tech one2 companies arrange schoo#
demonstrations/ In this case2 consumers are in!ited to a particu#ar p#ace2 say a hote# and
demonstrations are arranged/ In computers2 se!era# companies in India organi;e this type of
demonstration/
Door-to-Door Demonstrations
Consumer product companies 1uite often resort to house*to*house demonstrations/ It is considered a
high#y specia#i;ed fie#d of sa#es promotion/ a#esmen emp#oyed for such demonstrations are gi!en
specia# training to hand#e pecu#iar situations in!o#!ed in this fie#d/
Demonstrations to Key People
ometimes2 demonstrations are organi;ed for the "enefit of key peop#e and inf#uentia# persons/
Bourna#ists2 and other media men2 community #eaders2 etc2 are in!ited and the product is introduced
to them/
-emonstration is a good se##ing techni1ue2 .hich in!o#!es the cooperation of sa#es representati!es
and prospecti!e consumers in the actua# process of demonstration of the product/ (articipation of the
1<
consumer persuades him to #earn more a"out the product and it ser!es as a persuasion for him to try
the product/
Trade fairs and exhi"itions are extensi!e#y used sa#es promotion too#s/ They a#so form one of the
o#dest practices in sa#es promotion/ Trade fairs and exhi"itions pro!ide companies .ith the
opportunity of introducing and disp#aying their products/ This "rings company4s products and
consumers in direct contact .ith each other/ 3eeing is "e#ie!ing4 is a concept "ehind #arge*sca#e
exhi"itions/
Coupons2 premiums2 free offers2 price*offs2 extras2 insta#ment payment offers
Coupons2 premiums2 free offers2 price*offs2 etc2 ha!e "ecome common and effecti!e sa#es promotion
too#s/
Coupons
Coupons are certificates2 .hich offer reductions to consumers for specified items/ They are
distri"uted through ne.spaper and maga;ine ad!ertisements2 or through the package of the
merchandise2 or e!en "y direct mai#/ Coupons norma##y perform t.o specific functions for the
manufacturer/ >irst#y2 they enthuse the consumers to exp#oit the "argain/ econd#y2 they ser!e as an
inducement to the channe# for stocking the items/ The manufacturer thus succeeds in attracting
consumers as .e## as in prompting the channe# to stock the merchandise through introducing
coupons/ They are usefu# for introducing a ne. product as .e## as for strengthening the sa#e of an
existing product/
Premiums and Free Offers
In the Indian markets manufacturers extensi!e#y use today2 premiums2 free offers2 and price*offs/
ometimes "ack2 3&ristocart4 mou#ded #uggage introduced an attracti!e sa#es promotion offer/ It a#so
ran and ad campaign in support of the sa#es promotion endea!or/ &ristocrat announced7
JIf you "uy an &ristocrat .ithin the next .eek2 you get a (hi#ips 2 Band transistor .orth @s 266*free
&nd the ad repeated the message2 Jits on#y for a .eek2 starting todayK/
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Price-Off
Da.kins pressure cookers ha!e come up .ith se!era# sa#es promotion schemes during the #ast fe.
years/ In one of the schemes Da.kins announced
6pto @s 1<0 off on a ne. Da.kins in exchange for any o#d pressure cooker2 and the ad specified
that the offer is open on#y up to a particu#ar date/
Instalment Offers
5ashotex .ashing machines came up .ith Jpay 20L no.2 take home 5ashotexK scheme/ The
consumers .ere offered the faci#ity of paying the "a#ance in 24 e1ua# month#y insta#ments/ >or a
high priced product #ike a .ashing machine2 the offer pro!ed to "e a !ery effecti!e sa#es promotion
measure/
1$

Free Samples of the Product
>ree samp#es are offered to persuade consumers to try them out/ By offering free samp#es to a #arge
section of a ne. market2 a company tries to gain entry into that market/ Af course2 the constraint in
uti#i;ing this too# is that the product shou#d "e of #o. unit cost and suscepti"#e to fre1uent repeat
purchases/ oaps2 detergents2 coffee and toothpastes are examp#es of products2 .hich are norma##y
popu#ari;ed "y pro!iding free samp#es/ In fact2 e!en a ne.spaper2 Indian post2 .as introduced and
popu#ari;ed through this method/
Gifts
Companies a#so distri"ute gifts to peop#e*customers2 dea#ers and inf#uentia# and key peop#e/ These
gifts inc#ude2 pens2 penci#s2 ca#endars2 diaries2 ta"#e decorations2 etc/ gifts .i## carry the company4s
name and #ogo/ The gifts are intended to create good.i## to.ards the company and indirect#y
promote the company4s sa#es interest
Contests
Contests of !arious kinds constitute another .ide#y and common#y used sa#es promotion too#s/ There
are 3dea#er contests4 meant exc#usi!e#y for dea#ers of the company and 3consumer contests4 open for
a##/ Companies use "oth dea#er contests and consumer contests/ 5hi#e dea#er contests norma##y
remain c#osed affair "et.een the company and its dea#ers2 consumer contests are gi!en .ide
pu"#icity to attract the participation of a .ide#y scattered consumer "ase/ Big out#ays are natura##y
a##ocated for consumer contests "ecause they need .ide pu"#icity and attracti!e pri;es=
Consumer Contests
Consumer contests take a !ariety of forms : 1ui; contests2 "eauty contests2 scooter and car ra##ies2
#ucky dra.s2 suggesting a "rand name2 coining a s#ogan2 suggesting a #ogo2 etc/ 5hate!er "e the type
of contest : fi##ing up the 1ui;2 .riting 2< .ords a"out the "rand2 or taking part in a ra##y : the
intention of the marketer is to create .idespread action and ne.s around the "rand/ To get the
consumer interested in the "rand and induce him to "uy it is the centra# idea in a## consumer contests/
Success of the Contest Depends Upon Several Factors
Contests can "e c#assified under 3ski## competition4 or 3chance4/ 5hen the participant has to suggest
a name to a "rand2 it in!o#!es a ski## on of the participant/ 5hen the num"er of a coupon c#aimed "y
1,
the consumer in inc#uded in a dra.2 the contest fa##s under chance/ Though 3contest4 is used as an a##*
rounder term2 it has a specific meaning in the context of sa#es promotion/ & 3contest4 is one in .hich
consumers ha!e to su"mit an entry/ &nd the entries are 0udged for se#ecting the "est entry/ In
3.eepstakes42 there is no such 0udgment/ Consumers enro## their names for a dra./ In India2
norma##y the contests com"ine the sa#ient features of s.eepstakes as .e##/
tudies sho. that for contests to succeed2 they must "e simp#e to operate from the standpoint of the
consumer/ If the consumer has to go through difficu#t and time*consuming procedures2 he .i## not
take part in the contest/ The pri;es and pri;e money are other ma0or considerations that decide the
success of a contest/ 5hen fa"u#ous pri;es are announced and the procedure suggested for
participation is a#so simp#e2 the contests attract .ide attention and arouse consumer interest and
participation/ &nother condition for the success of the contest is the pu"#icity gi!en to it/ Through
!arious media and a#so through (A(s at retai# stores2 contests can "e gi!en pu"#icity/ &nother
precondition for the success of the contest is the current of honesty "ehind the offer/ The pu"#ic
shou#d percei!e the .ho#e thing as genuine/ &## these ideas are pointing to.ards one fact : the retai#
store is a po.erfu# instrument through .hich a marketer can communicate .ith his prospects/
Store Choice is linked to Store Image
The choice of a store "y a consumer depends to a #arge extent on .hat the store communicates to
him/ tore choice is the resu#t of the process .here"y the consumer compares the characteristics of
the gi!en store2 as communicated through the store image2 .ith his e!a#uati!e criteria of a 3good
store4/ 3De .orks out four steps in his mind "efore making the store choice7 formu#ate the criteria2
identify the characteristics of the gi!en store2 compare the t.o and decide .hether the gi!en store is
accepta"#e or not/
It is not as though consumers go through this process "efore each store !isit/ If past experiences .ith
a store ha!e "een satisfactory2 the store is usua##y re!isited .ithout re*e!a#uation/ &gain2 it is not as
though the consumer e#a"orate#y thinks out each of the four steps mentioned a"o!e "efore making
the store choice/ But the process does take p#ace in his mind/ &nd in this process2 the communicati!e
e#ement of the store is the most important aspect/ In certain cases2 the !ery name of the store or its
category 1uick#y triggers off in his mind the re1uired responses and the decision/ >or examp#e2 hem
may ha!e in his mind certain ready associations .ith names #ike 3supermarket24 3cooperati!e store42
1'
3-iscount store42 and 3%xc#usi!e shops4/ In other cases2 his mind 1uick#y sifts the criteria such as
#ocation2 the sa#esmen in the store and the nature of the c#iente#e patroni;ing the store/
o2 the store is a good marketing communication too#/ In the case study on marketing strategy of
@e#iance Industries2 .e ha!e seen the company used the sho.room idea in de!e#oping the channe#/
The chain of exc#usi!e HIM&) sho.rooms esta"#ished throughout the country "y the company is a
te##ing examp#e of channe# "ecoming a po.erfu# too# of marketing communication and promotion/
ame is the case .ith Titan 5atches/ &s a#ready exp#ained in the case study on Titan 5atches2 the
nation.ide chain of Titan sho.rooms contri"uted a great dea# to the instant popu#arity of Titan
5atches/
Promotion as a Component in Marketing Communication
5e ha!e so far discussed the first three components : product2 price and p#ace : of marketing
communication/ 5e are no. coming to the #ast and the most su"stantia# component : promotion/
The !ery fact that promotion .as for 1uite a #ong time considered as synonymous .ith marketing
communications2 is a pointer to its premeneint ro#e in marketing communications/ &s a#ready
mentioned in the opening paragraph of this chapter2 promotion itse#f consists of four different
components2 name#y7
(ersona# e##ing
&d!ertising
a#es (romotion
(u"#icity
Personal Selling
5e sha## discuss in detai# the importance of persona# se##ing and the management of the persona#
se##ing function/ In this section2 .e are main#y concerned .ith the communicati!e ro#e of persona#
se##ing/
20
Face-to-face Transaction
(ersona# se##ing is uni1ue as it is a face*to*face transaction "et.een a sa#esmen and a prospecti!e
customer/ %!ident#y2 a .e##*trained and competiti!e spirited sa#esman can "e an effecti!e
communication instrument/ Dis kno.#edge a"out the product2 the degree of his fami#iarity .ith the
customer2 .hether he is hand#ing a ne. customer or an esta"#ished customer2 the degree of his
in!o#!ement in the company he is representing2 the #e!e# of his moti!ation and his o.n con!ictions
a"out the 1ua#ity and performance standards of the product2 .i## "e the determining factors in his
ro#e as a communicator/
Product Knowledge helps the Salesman in his Communication
(roduct kno.#edge is an important asset to a sa#esman for successfu##y communicating .ith his
customers/ This is true especia##y .hen he is dea#ing in products of a technica# or semi*technica#
nature/ & customer2 .ho is not .e## !ersed .ith the ne. product or "rand2 #itera##y #ooks up to the
sa#esman to exp#ain the sa#ient features and the distincti!e attri"utes of the product/ If the sa#esman
fai#s in his ro#e as a technica# guide2 he fai#s in his marketing communication/ In the case of
industria# products2 the ro#e of sa#esmen as marketing as marketing communication is a## the more
important/
Customer - Salesman Identification
It has "een found that if the customer finds the sa#esman re#ata"#e to himse#f in age2 cu#ture2
#anguage2 dress*sty#e2 etc2 the customer is #ike#y to de!e#op a fa!oura"#e response to.ards the
sa#esman/ It is e!ident that apart from the product kno.#edge and technica# expertise of the
sa#esman2 his o.n tota# persona#ity inc#uding his #anguage2 #ooks2 sty#e2 age2 smartness and manners
are communicati!e cues to the customer/
It is2 ho.e!er2 not enough if the sa#esman commands product kno.#edge and technica# expertise2
and possesses simi#arities .ith the customers/ &n important factor in his communicati!e ro#e is his
a"i#ity to #isten/ & sa#esman may go on exp#aining a"out a product to his prospecti!e customer2 "ut
that does not mean he is an effecti!e the prospecti!e "uyer might express a"out the product/ &nd it is
not enough if he #istens2 his customer shou#d fee# he is #istening/ The a"i#ity to #isten has to "e
de!e#oped and cu#ti!ated as an insepara"#e 1ua#ity of the sa#esman/ )istening a#so is a form of
21
cooperation .ith the customer/ 5hen he #istens to his customer2 he is actua##y co*operating .ith the
customer in the pro"#em so#!ing process and it e!en faci#itates the purchase/ o2 the a"i#ity to #isten
.i## enhance the communicati!e efficiency and the communicati!e image of the sa#esman/
Rights Sales Message Leads to Effective Marketing Communication
&part from the sa#esman and his characteristics2 the sa#es message is a#so an important factor in
communication through persona# se##ing/ The sa#esman may ha!e technica# kno.#edge a"out the
product/ ti##2 if the sa#es message*the content2 the #anguage2 the presentation and the sty#e of
message*is not appea#ing and con!incing2 he may not succeed in his communicati!e ro#e/
%xperiments ha!e sho.n that in the case of technica# products2 sa#es messages prepared .e## in
ad!ance2 and presented in an apparent#y extempore manner2 ha!e "een successfu# in e!oking a
fa!oura"#e response from kno.#edgea"#e customers/ a#es messages2 .hich are e!asi!e and s#ip2
shod in construction and content .i## upset the communicati!e effecti!eness of sa#esmen/ The
company has a direct ro#e in pro!iding them .ith good and effecti!e sa#es messages prepared in
ad!ance for making the communication 0o" effecti!e/ This is especia##y true in industria# marketing/
(ersona# se##ing2 as a marketing communication too# is usua##y more effecti!e in the tria# stage and
e!a#uation stages/ The marketing communicator has to constant#y remem"er that persona# se##ing is
"ut one of the communication too#s and it has "e idea##y supp#emented "y other components2 if it
.ere to "ecome effecti!e in its communicati!e ro#e/ Its ro#e in the tota# promotion programme
shou#d "e identified and marketing effort shou#d "e a##ocated according#y to o"tain the "est resu#ts/
Publicity
(u"#icity is the fourth ma0or too# in promotion/ 5hereas ad!ertising2 persona# se##ing and sa#es
promotion are designed and contro##ed "y the firm? pu"#icity is not easi#y contro##a"#e "y the firm/
&nother distincti!e feature of pu"#icity is that an identified sponsor does norma##y not pay it for/
The firm must proper#y p#an its pu"#icity/ & good pu"#icity campaign often "ui#ds a pu"#icity story2
.hich descri"es inno!ations or impro!ements in products or ser!ices of the firm/ Ar it may "e "ui#t
around some topic of current importance to the pu"#ic/ The significant aspect is that the contents of
the pu"#icity story ha!e to "e ne.s.orthy and of interest to a #arge section of the pu"#ic/
22
Publicity - A Potent Tool of Marketing Communication
)arge firms norma##y try to contro# their pu"#icity through constant press re#eases2 press conferences2
and #etters to editors2 etc/ 1uite often2 they send out a !ariety of ne.s re#eases a"out their products
and ser!ices and their achie!ements in specified fie#ds2 .hich may "e of interest to the pu"#ic/ uch
acti!ities are intended to "ui#d a fa!oura"#e and positi!e pu"#ic image of the firm/
It is not a#.ays possi"#e for a firm to contro# pu"#icity in its fa!our/ &n ad!erse message appearing in
some media a"out a specified product="rand may upset the company4s image/ 6n#ess the firm has
good re#ations .ith !arious media2 unfa!ora"#e ne.s may often appear/ That is .hy #arge firms
a#.ays keep a constant !igi# on their media re#ations/ This is a#so essentia# "ecause ne.s items
appearing in the press or simi#ar media ha!e a greater degree of credi"i#ity for the pu"#ic than the
ad!ertising message designed "y the company/ & consumer may ignore the #atter "ecause he kno.s
that it is designed "y the company to popu#ari;e its products/ But ne.s items in mass media are
percei!ed as more o"0ecti!e and consumers "e#ie!e ne.s stories more than ad!ertising stories/ This
makes pu"#icity a !ery potent too# in marketing communications/ If pu"#icity is ignored it can harm
the entire communication strategy of a firm/
Marketing Communications - a Crucial Function
In the preceding pages2 .e ha!e pro!ided an o!er!ie. of marketing communications/ 5e ha!e
emphasi;ed the fact that a## the four (s of marketing ha!e a marketing communication ro#e/ These
discussions re!ea# that marketing communication is a dynamic process/ By re#easing an
ad!ertisement2 or "y offering a price reduction or "y introducing an attracti!e packing2 the marketing
communications 0o" is not o!er/ It is a #arger process and a continuous one/ It in!o#!es a continuous
dia#ogue "et.een the firm and its customers/ The marketing communicator has to constant#y ad0ust
his messages to the changes in the socia# and "usiness en!ironment/ The !arious communication
too#s a!ai#a"#e to him ha!e to "e exp#oited imaginati!e#y/ The potentia# of e!ery too#s a!ai#a"#e to
him2 and he has to use them in such a .ay that one supports and supp#ements the other/ If the
different communication too#s pu## in different directions2 it may nu##ify his communication effort/
o marketing communications must "e concei!ed and executed .ithin the frame.ork of a unified
and effecti!e strategy/
23
The Changing Nature of Marketing
Marketing and the marketing communication mix are changing/ Ce. insights2 ne. too#s2 ne.
opportunities and ne. cha##enges are emerging as the 21
st
century progresses/ The .or#d4s 61=4
"i##ion consumers and a#most 400 mi##ion "usiness customers are "ecoming increasing#y accessi"#e/
&nd so too are your customers ready targets for ne. g#o"a# competitors/ Ce. pressures a#so merge
as managers operate in de#ayered organisation2 stripped of supporting ser!ices and yet freed form the
1uagmire of tier upon tier of management/ This means more mangers need to understand marketing
.hich2 itse#f2 is changing/
Marketing has mo!ed 3customer ac1uisition4 8.inning ne. customers9 through 3customer retention4
8keeping customers for #ife9 to.ards 3customer se#ection4 8dumping unprofita"#e customers .hi#e
se#ecti!e#y seeking and keeping the more profita"#e ones9/ This is sometimes ca##ed 3ad!erse
se#ection4/ It is "ecoming o"!ious that some customers are promiscuous2 non*#oya# "argain hunters
.ho exp#oit any sa#es promotion and mo!e on to the next supp#ier as and .hen the next specia# offer
appears/ These customers cost a #ot for !ery #itt#e return? in fact2 most of them are unprofita"#e/ An#y
1$ per cent of companies kno. .hich are their "est customers2 according to (& Consu#tants in 2003/
+i!en that some estimates suggest that ne. customers cost fi!e times more than existing customers
or2 put another .ay2 se##ing to existing customers can "e fi!e times more profita"#e than .inning
ne. customers2 you can see ho. it pays to kno. and #o!e your customers2 particu#ar#y the #oya# and
profita"#e ones/ ome customers "ecome #oya# "ecause they prefer your product or ser!ice2 others
.ant a sta"#e re#ationship .ith one supp#ier2 others spend more2 pay more 1uick#y2 re1uire #ess
ser!ice/ -e## C%A Michae# -e## says that his most !a#ua"#e customers are not his "iggest or his most
profita"#e ones2 "ut those that 3teach him the most/ &#though reco!ery strategies 8for #ost customers9
are important2 some defectors are not .orth sa!ing/ Carefu##y designed customer se#ection strategies
can #ea!e the competition .ith nothing "ut undesira"#e customer segments to fight o!er/
Marketing and marketing communications are changing/ trategic a##iances 8partnership marketing9
offer ne. communication channe#s into existing and ne. markets that .ere simp#y not though of
fi!e years ago/ >or examp#e2 Manchester 6nited 8M6>C9 and )ycos 6M ha!e em"arked on a N2
mi##ion communications partnership/ M6>C guarantees that a num"er of its sponsors such as
Hodafone2 Cike2 (epsi and Bud.eiser .i## "uy ad!ertising space on )ycos/ M6>C .i## a#so supp#y
content such as 5e" chats .ith p#ayers and exc#usi!e editoria# on#ine through )ycos/ In addition2
)ycos 6M has "ecome M6>C4s exc#usi!e partner to se## ad and sponsorship packages on the M6>C
24
5e" site/ This dea# supports M6>C4s key o"0ecti!e of "ui#ding its g#o"a# fan "ase through
partnership dea#s/ )ycos 6M "ecomes a p#atinum sponsor of M6>C2 .hich gi!es )ycos
ad!ertisements priority positions at the ground and in the match programmes/ The fina# piece of this
creati!e 0igsa. is that the &sian di!ision of )ycos .i## "ui#d a Chinese #anguage site for M6>C and
he#p to "ui#d content for other non*%ng#ish speaking emerging markets/
There has "een a c#ear shift of focus and "udget resources into interacti!e on#ine marketing/ %!en
the traditiona# supp#iers2 or agencies2 are changing/ &part form changing the ser!ices they offer2 they
are changing their names to ref#ect changes in the marketing ser!ices marketp#ace/ Burson
Marste##ar2 the .or#d4s "iggest (@ agency2 has dropped 3pu"#ic re#ations4 from its name2 and aatchi
I aatchi has dropped 3ad!ertising4 form its name/ Managers too ha!e to change to accept the need
for 3#ife#ong #earning42 and continua##y update and impro!e themse#!es .ith ne. ski##s2 ne. insights2
and ne. too#s/
Before #ooking at the marketing communications mix and the marketing mix2 consider "rief#y
marketing/ & simp#e dictionary definition of marketing re!ea#s7 marketing2 n/2 and the "usiness of
mo!ing goods from the producer to the consumer4/ 3+oods4 can "e taken to mean goods or ser!ices/
The Charted Institute of Marketing in the 6M defines marketing as7 3the management process
responsi"#e for identifying2 anticipating and satisfying customer re1uirements profita"#y4/ ome
years ago the &merican Marketing &ssociation spent time and effort considering the appropriateness
and accuracy of its definition of marketing/ Its ne. definitions incorporated one ma0or change : it
too# 3profit4 out2 possi"#y "ecause it exc#uded the !ast armies of marketing professiona#s .ho .ork
for charities and other non*profit making organi;ations/ (erhaps the 6M definition cou#d rep#ace
3profita"#y4 .ith 3efficient#y42 or 3in a .ay that meets the organisation4s goa#s4F & simp#er definition
is 3marketing is the se##ing of goods that don4t come "ack to peop#e .ho do4/ 3+oods that don4t come
"ack4 emphasi;es the importance of matching the promise 8made "y2 say2 the ad!ertising or the
packaging9 .ith the rea#ity of the products or ser!ice4s 1ua#ity2 i/e the #e!e# of 1ua#ity shou#d match
that .hich is ad!erse/ In the #ong term it does not pay to cheat the customer/
@ea# marketing success depends on repeat "usiness2 and that is .here4 peop#e .ho do come "ack4
em"races the customer4s 3#ifetime !a#ue4 concept/ Customers do not "uy 0ust one can of "eans2 one
cars and do;ens of photocopiers during their 3#ifetime4/ There the marketing cha##enges #ies? in
attracting and retaining profita"#e customers efficient#y/ & mo!e a.ay form the 3one off sa#es
2<
syndrome4 a##o.s marketing hori;ons to "roaden to #ifetime customers and #ifetime strategies/ &nd
today marketers are rea##y interested in separating unprofita"#e form profita"#e customers2 so that
those customers .ho ra##y do contri"ute to the "ottom #ine can "e nurtured/ )ifetime customers are
"ui#t through strong re#ationships2 .hich2 in turn2 re1uire re#ationship*marketing ski##s/ &nother set
of re#ationship ski##s is a#so emerging in the form of marketing marriages/ Marketing marriages such
as 0oint promotions2 shared data"ases2 shared distri"ution net.orks and strategic a##iances offer ne.
opportunities for existing markets "ut a#so offer ne. routes into g#o"a# markets pre!ious#y
inaccessi"#e "ecause of an organisation4s #imited resources/
6nti# marketers 0ustify the !a#ue of marketing2 it .i## not "e represented at "oard #e!e#/ It is not
surprising that fe.er than 10 per cent of the >T% 100 companies ha!e marketing directors on their
"oards/ &s is common#y 1uoted2 3.hat can4t "e measured cant "e managed/4 Therefore2 one can
understand .hy many "usinesses do not take marketing serious#y despite the fact that the .or#d
reno.ned management guru peter -ucker has stated that 3&ny "usiness has t.o and on#y these t.o
"asic functions7 marketing and inno!ation4 81''<9/ &#though he said it ha#f a century ago2 it is sti##
!a#id and common#y 1uoted today/ &## marketers must "e mindfu# of the need to measure the
effecti!eness of a## marketing acti!ities/ The .or#d of marketing communications has mo!ed on
form the days of "ig "udgets2 ca!iar2 foreign shoots2 60 seconds TH commercia#s and #itt#e
accounta"i#ity2 to.ards a more demanding "usiness en!ironment that excepts marketers to "e a"#e to
1uantify the "enefits of their actions/
The Marketing Mix
The marketing mix is essentia##y a conceptua# frame.ork that he#ps to structure the approach to each
marketing cha##enge/ There are many different approaches to the marketing mix2 ego 4(s2 and $(s/
Canadian author Berome McCarthy first ca##ed the 4(s the marketing mix/ Critici;ed "y some as
o!ersimp#ified and "y others as outdated2 the 4(s ne!erthe#ess do pro!ide a "asic frame.ork/ These
four ingredients 8product2 price p#ace=distri"ution and promotion=communication9 can "e mixed
together in an infinite num"er of .ays/ ome argue that the most important ( peop#e are missing/
This can "e interpreted as customers or as staff/ &#though origina##y used "y >MC+ 8fast mo!ing
consumer goods9 marketers2 the 4(s .ere a#so "orro.ed and used "y ser!ice marketers 8e/g/
restaurants9 unti# they de!e#oped the $(s/ The additiona# (s co!ered peop#e 8staff92 physica# e!idence
26
8e/g/ "ui#dings and uniforms9 and processes 8methods of producing2 de#i!ering and consuming the
ser!ice9/ It is interesting to see ho. the >MC+ marketers can ho. "orro. the $(s/
In 1'612 &#"ert >rey suggested that a## the marketing mix !aria"#es cou#d "e categori;ed into 0ust
groups7 the offering 8product2 packaging2 ser!ice2 "rand and price9 and The Methods=Too#s
8distri"ution channe#s2 persona# se##ing2 ad!ertising and sa#es promotion9/ 5hiche!er approach you
take2 it is the com"ination of these components2 and a fifth (2 peop#e 8customers and competition92
.hich are the "asic "ui#ding "#ocks of a marketing programme/ The marketing mix !aria"#es are
usua##y considered as interna# !aria"#es o!er .hich manager has contro# and makes decisions 8a#"eit
inf#uenced "y customers2 competition and other externa# uncontro##a"#e factors9/
It is .orth remem"ering that a## of the marketing mix communicates/ & poor 1ua#ity product or
ser!ice genera##y says more other user than any amount of ad!ertising/ (rice communicates2 e/g/
high price sends a different message to a##o. price2 and price is used "y many "uyers as an indictors
of 1ua#ity/ The p#ace of purchase a#so communicates2 e/g/ an item purchased in Darrods has a
different percei!ed !a#ue to an item purchased form a street sta##/ The fourth (2 promotion2 has its
.on mix of communication too#s2 .hich are sometimes ca##ed the promotion mix or the
communications mix/ This mix inc#udes e!ery communications too# that is a!ai#a"#e to the
organisation/ The re#ation of the communications mix to the marketing mix/
The fifth (2 peop#e or staff2 communicate2 in fact create2 a good or "ad experience through the 1ua#ity
of ser!ice de#i!ered at any particu#ar time/ Interesting#y2 according to MA@I in 20022 one in six
customers fai# to comp#ete a purchase "ecause of the .ay they .ere treated "y staff/ ome
companies2 such as prOt a Manger2 encourage managers to se#ect staff "y !oting on .hether they get
the 0o" after on#y a day4s tria#/ (hysica# e!idence communicates2 as demonstrated "y the physica#
presence2 sty#e2 #ocation and decoration/ it gra"s attention2 interest and2 to some2 creates the desire to
enter and exp#ore/ (rocess2 the fina# (2 a#so communicates/ if Mc-ona#d4s process .as s#o.2 s#oppy
or dirty2 it .ou#d send out negati!e messages to the customers and sa#es .ou#d suffer/
The Communications Mix
ometimes referred to as the promotiona# mix2 the communications mix #ists a## of the
communications too#s a!ai#a"#e to a marketer7
1/ e##ing
2$
2/ &d!ertising
3/ a#es promotion
4/ -irect marketing
</ (u"#icity 8and pu"#ic re#ations9
6/ ponsorship
$/ %xhi"itions
,/ (ackaging
'/ (oint of sa#es and merchandising
10/ 5ord of mouth
11/ %*marketing
12/ Corporate identity
Module 13 Marketing Communications Strategy 1 Marketing Communication
Strategy
This #ist is not any order of priority2 since different industries #ay different emphasis on certain
communication too#s2 .as an >MC+ 8such as a tin of "eans9 manufacturer may consider ad!ertising2
packaging2 sa#es promotion and point of sa#es to "e the most important too#s2 .hi#e a hea!y
industria# machine manufacture may #ay emphasis on se##ing2 exhi"itions and .ord of mouth/ The
second part of this "ook de!otes a chapter to each of the communication too#s #isted in the
communications mix/ The next coup#es of paragraphs c#arify and exp#ain the interpretation and
categori;ation of the marketing communications c#arify and exp#ain the interpretation and
categori;ation of the marketing categori;ation of the marketing communications mix2 since many
marketing professiona#s interpret or categori;e them different#y/
-irect marketing dra.s on2 and integrates .ith2 ad!ertising and sa#es promotion2 and inc#udes direct
response ad!ertisements2 direct mai# and te#emarketing=te#esa#es/ (u"#icity means positi!e editoria#
co!erage in the media? it is not mean to inc#ude 3"ad press4/ It does inc#ude stunts2 or e!ents2 as .e##
as certain other techni1ues/
The marketing communications mix shou#d2 in one .ay2 inc#ude emp#oyees and customers since
3.ord of mouth4 can "e extreme#y effecti!e among their o.n net.orks/ Their sa#aries and .ages are
not part of the communications "udget "ut they are .orth inc#uding in some of the communications
acti!ities that enhance the .ord of mouth process/ &#though se##ing is a## a"out communicating2
some companies choose to #ea!e se##ing and sa#es management out of the communications "udget
2,
and put the sa#es force into their distri"ution p#an instead/ This makes sense2 since one of the sa#es
force4s main responsi"i#ities is to ser!ice existing distri"ution channe#s and penetrate ones/ Do.e!er2
since face*to*face se##ing is a potent marketing communications too# 8and expensi!e on a cost per
thousand contact "ias92 it is c#ear#y inc#uded in the marketing communications mix/
It is .orth remem"ering that customers and distri"utors are not the on#y target audience/ There are
other 3stakeho#ders4 such as shareho#ders and emp#oyees .ho ha!e a keen interest in the "usiness/
ee the di!erse range of audiences 8stakeho#ders9 .ith .hich .ind farm company future .ind
partnership must communicate in order to gro. c#ean energy/
Mixing the Communications Mix
hou#d more "e spent on sa#es promotions than on ad!ertisingF 5hat .ou#d happen if a company
8#ike Dein;9 s.itched a## press2 print and TH ad!ertising o!er to direct mai#F Ar perhaps it shou#d
spend ha#f on ad!ertising and ha#f on sa#es on sa#es promotion and exc#ude pu"#icityF &#most e!ery
promotiona# acti!ity in!o#!es sacrificing something e#se/ &d!ertising is sti## seen "y many in the 6M
as the most effecti!e .ay to nurture a "rand4s image o!er the #ong hau#2 .hereas sa#es promotions
tend to "e seen as shorter term2 tactica#2 temporary sa#es "oosters 8a#though there are exceptions2
.here some companies actua##y try to de!e#op strategic promotions that "ui#d on each other .hi#e
strengthen "rand !a#ues and customer #oya#ty9/ (rofessor %hren"erg4s pan*%uropean sa#es promotion
research c#aimed that sa#es promotions had "asica##y no positi!e effect on "rand "ui#ding2 "rand
#oya#ty and repeat purchase pattern/ This is not surprising2 since the research focused most#y on price
promotions 8money off discounts2 etc9/ (rice discounts di#ute the "rand franchise or the 1ua#ity in the
communications mix chosen "y &merican companies7
Many giant consumer good companies are sadd#ed .ith huge #e!e#s of de"t so2 in category after
category2 "rand mangers are scram"#ing to "oost 1uarter#y sa#es instead of in!esting in image
ad!ertising to nurture "rands for the #ong hau#/
2'
To increase sa#es they are shifting marketing do##ars form ads to promotions such as coupons2
contests2 and s.eepstakes and2 "ecause most promotions are p#aced #oca##y2 companies are shifting
do##ars form nationa# to a #oca# media/ Many experts "e#ie!e that such strategies carried to an
extreme run the risk of damaging !a#ua"#e "rand franchises that ena"#e marketers to price their
products at a premium/
& #ot depends on the o"0ecti!es and the specific responses re1uired/ Bui#ding a.areness re1uires
ad!ertisings and (@2 .hi#e "rand s.itching re1uires some kind of integrated sa#es promotion
initia##y supported "y ad!ertising or direct mai#/ There are a#.ays exceptions? some ad!ertising and
sa#es promotions are designed to create a data"ase .hich in turn a##o.s a dynamic dia#ogue and
re#ationships to "e nurtured/ Communications need to f#o. to a## the stages through .hich a
customer mo!es on his route to.ards making a purchase and su"se1uent repeat purchases/
Integrating the Communications Mix - Initial Steps
%ach e#ement of the communications mix shou#d integrate .ith other too#s of the communications ix
so that a unified message is consistent#y reinforced/ ome ma0or ad!ertising campaigns are
supported "y (@ acti!ity2 and many ad!ertisements ha!e press #aunches not for the product "ut for
the ad!ertisement itse#f/ Thus pu"#icity and ad!ertising .ork together to create a "igger impact in a
cost effecti!e .ay/ (ress #aunches and photo opportunities .ere sei;ed on "y the po#itica# parties
.hen they re#eased ne. ad!ertisements during ce#e"rates or senior po#iticians/ The free media
8editoria#9 co!erage that fo##o.ed .as often greater than the co!erage generated "y ad!ertising/
Dere2 "e#o. the #ine 8(@9 supports a"o!e the #ine 8ad!ertising9 acti!ity/
a#es promotion2 another "e#o. the #ine communications too#s2 is often tied in .ith2 or supported "y2
ad!ertising or (@ or "oth/ It is no use ha!ing a great sa#es promotion campaign if no one hears a"out
it in the first p#ace? so2 instead of the product "eing ad!ertised2 it is the sa#es promotion that is
ad!ertised/ Dere2 a"o!e the #ine supports the "e#o. the #ine acti!ity/ There are pu"#icity opportunities
that pu"#ic re#ations professiona#s can exp#oit if they are "riefed and integrated into the o!era##
programme at an ear#y enough stage/ ome sa#es promotions get nationa# co!erage .ithout any
a"o!e the #ine support/ & fe. years ago British &ir.ays #aunched a sensationa# sa#es promotion
.hen it announced free f#ights to any.here in the .or#d/ The sa#es promotion .as so ne.s.orthy it
30
hard#y needed any ad!ertising "y the time the pu"#ic re#ations peop#e had maximi;ed the editoria#
opportunities/ The sa#es promotion a#so he#ped to "ui#d a data"ase for future direct mai# acti!ities/
Many direct response ad!ertisements 8.ith coupons or free phone num"ers9 offers an incenti!e2
premium2 gift or sa#es promotion/ The term 3direct promotion4 succinct#y com"ines direct marketing
.ith sa#es promotion/ Many >MC+ 8such as groceries9 sa#es promotions are a#so promoted on the
product itse#f 8on pack promotion9/ &ne. pack or ne. sa#es promotions*usua##y has to "e "rought to
the attention of the retai#er "y the sa#es force/ They need to "e fu##y "riefed and may need ne.
#iterature to #ea!e .ith the retai# sa#es promotion insides a retai# out#et/ & modified pack 8carrying the
on pack promotion9 has to "e designed and produced/ This means ne. stocks and so a proper#y
coordinated team has to "riefed and ready to mo!e into sometimes se!era# hundred out#ets .ithin2
say2 24 hours/ This is genera##y too "ig a 0o" the regu#ar sa#e force2 so a team of merchandisers or
fie#d marketing team sometimes supp#ements it/
)ondon4s Tate modern ga##ery a range of inno!ati!e creati!e non*commercia# communications to
support the #aunch of the ne. ga##ery/ These inc#uded 6 mi##ion specia# coffee cups for coffee
repu"#ic in its ne. )a ne. Tate CafP? Tate "randed 5agamama 8a top Bapanese restaurant9
chopsticks? Tate Beer in )ondon4s fashiona"#e Mash restaurant? and a @oya# Mai# stamp/ ome
marketers refer to these types of communications too#s as am"ient ad!ertising? mean.hi#e2 there are
a num"er of cutting edge communications too#s emerging in the marketing such as forehead
marketing2 !ira# marketing2 experientia# marketing and sensory "randing/ Communications too#s
must integrate .ith each other/ Integrating marketing communications re1uires peop#e ski##s/ Ather
managers ha!e to "e con!inced/ To do this2 a fu## understanding of the "enefits fo integrated
marketing communications 8IMC9 is re1uired/
Integrated Marketing Communications - the Benefits
&#though IMC re1uires a #ot of effort2 it effort2 it de#i!ers many "enefits/ It can create competiti!e
ad!antage2 and "oost and profits2 .hi#e sa!ing time2 money and stress/
IMC can .rap communications around customers and he#p them mo!e through the !arious stages of
their "uying process/ The organi;ations simu#taneous#y conso#idates its image2 de!e#ops a dia#ogue
31
and nurtures its re#ationship .ith its customers/ This 3re#ationship marketing4 cements a "ond of
#oya#ty .ith customers that can protect them from the ine!ita"#e ons#aught of competition/ The
a"i#ity to keep a customer for #ife is po.erfu# competiti!e ad!antages/
IMC a#so increases profits through increased effecti!eness/ &s its most "asic #e!e#2 a unified message
has more impact than a dis0ointed myriad of messages/ In a "usy .or#d a consistent2 conso#idated
and crysta# c#ear message has a "etter chance of cutting through the 3noise4 o f o!er 12000
commercia# messages that "om"ard customers each and e!ery day/ &t another #e!e#2 initia# rese4arch
suggests that images shared in ad!ertising and direct mai# "oost "oth ad!ertising a.areness and
mai#shot responses/ o IMC can "oost sa#es "y stretching messages across se!era# communications
too#s to create more a!enues for customers to "ecome a.are2 aroused and2 u#timate#y2 make a
purchase/ Carefu##y #inked messages a#so he#p "uyers "y gi!ing time#y reminders2 updated
information and specia# offers .hich2 .hen presented in p#anned se1uence2 he#p them mo!e
comforta"#y through the stages of their "uying process and this reduces their 3misery of choice4
generated "y the .ide range of competiti!e offerings/ IMC a#so makes messages more consistent and
therefore more credi"#e/ This reduces risk in the mind of the "uyer and2 in turn2 shortens the search
process and he#ps to dictate the outcome of "rand comparisons/
Integrated communications send dis0ointed messages that di#ute the impact of the message/ This may
a#so confuse2 frustrate and arouse anxiety in customers/ Integrated communications present a
reassuring sense of order/ Consistent images and re#e!ant2 usefu# messages he#p nurture #ong term
re#ationships .ith customers/ Dere2 customer data"ases can identify precise#y .hich customers need
.hat information .hen2 and throughout their .ho#e "uying #ife/
>ina##y2 IMC sa!es money2 as it e#iminates dup#ication in areas such as graphics and photography
since they can "e shared and used in2 say2 ad!ertising2 exhi"itions and sa#es #iterature/ &gency fees
are reduced "y using a sing#e agency for a## communications/ &nd e!en if there are se!era# agencies2
time is sa!ed .hen meetings "rings a## the agencies together for "riefings2 creati!e sessions2 or
tactica# or strategic p#anning/ The reduces .ork#oad and su"se1uent stress #e!e#s/
32
Integrated Marketing Communicators - the Barriers
-espite si#os many "enefits2 IMC has many "arriers/ In addition to the usua# resistance to change and
the specia# pro"#ems of communicating .ith a .ide !ariety of target audiences2 there are many other
o"stac#es that restrict IMC/ These inc#ude functiona# si#os2 stif#ed creati!ity2 timesca#e conf#icts and a
#ack of management kno. on ho./
Take functiona# si#os/ @igid organisationa# structures are infested .ith managers .ho protect "oth
their "udgets and their po.er "ase/ 35hy shou#d they their "udgets and a##o. someone e#se to make
decisions .hich pre!ious#y .ere theirsF4
ad#y2 some organi;ationa# structures iso#ate communications2 data and e!en managers from each
other? for examp#e2 the (@ department often doesn4t report to marketing2 the sa#es force rare#y meet
the ad!ertising or sa#es reps are not to#d a"out a ne. promotiona# offerQ &nd a## this can "e
aggra!ated "y turf .ars or interna# po.er "att#es .here specific mangers resist ha!ing some of their
decisions 8and "udgets9 determined or e!en inf#uenced "y someone form another department/
Dere are t.o difficu#t 1uestions : .hat shou#d a tru#y integrated marketing department #ook #ikeF
&nd ho. .i## it affect creati!ityF It shou#dn4t matter .hose creati!e idea it is2 "ut often it does/
&n ad!ertising agency may "e so enthusiastic a"out de!e#oping a creati!e idea generated "y2 say2 a
(@ or a direct marketing consu#tant/ IMC can restrict creati!ity/ Co more .i#d and .acky sa#es
promotions un#ess they fit into the o!era## marketing communications strategy/ The 0oy of rampant
creati!ity may "e stif#ed2 "ut the creati!e cha##enge may "e greater and u#timate#y more satisfying
.hen operating .ithin a tighter2 integrated2 creati!e "rief/
&dd different timesca#es into a creati!e "rief and you .i## see time hori;ons pro!ide one more
"arrier to IMC/ >or examp#e2 image ad!ertising2 designed to nurture the "rand o!er the #onger term2
may conf#ict .ith shorter*term ad!ertising or sa#es promotions designed to "oost 1uarter#y sa#es/ The
t.o o"0ecti!es can "e accommodated .ithin an o!era## IMC if carefu##y p#anned2 "ut this kind of
p#anning is not common/ & sur!ey in the mid 1''0s re!ea#ed that most &merican managers #ack
expertise in IMC/ But it4s not 0ust managers2 it4s a#so agencies and there is a pro#iferation of sing#e
discip#ine agencies/ There appear to "e !ery fe. peop#e .ho ha!e rea# experience of a## the
marketing communications discip#ines/ This #ack of kno. ho. is then compounded "y a #ack
commitment/ The fo##o.ing section2 on the +o#den @u#es for IMC2 examines this in more detai#/
33
Integrated Marketing Communications - the Golden Rules
Dere is ho. you can ensure you "ecome integrated and stay integrated2 .ith the 10 +o#den @u#es of
Integration/
1/ +et senior management support for the initiati!e "y ensuring they understand the "enefits of
IMC/ IMC fits .ith IA '0017 2000 as it re1uires companies to continua##y monitor a## their
processes and procedures 8inc#uding marketing9 and continua##y seek .ays to impro!e them/
5ith senior management support the IMC concept can mo!e do.n.ards and across the
organisation2 pro!ided the interna# marketing of the idea is proper#y executed/
34
2/ Integrate at different #e!e#s of management/ (ut 3integration4 on the agenda for !arious types
of management meetings .hether annua# re!ie.s or creati!e sessions/ Dori;onta##y2 ensure
that a## managers2 not 0ust marketing managers2 understand the importance of a consistent
message .hether on de#i!ery trucks or product 1ua#ity/ &#so ensure that ad!ertising2 (@ and
a#es promotions staff are integrating their messages/ To do this you must ha!e carefu##y
p#anned interna# communicao't0s2 that is2 good interna# marketing/
3/ %nsure the design manua# or e!en a "rand "ook is used to maintain common !isua# standards
for the use of #ogos2 typefaces2 co#ours and so on/
4/ >ocus on a c#ear marketing communications strategy/ Da!e crysta# c#ear communication
o"0ecti!es? c#ear marketing communications add !a#ue to 8instead of di#ute9 the "rand or
organisation/ %xp#oit areas of sustaina"#e competiti!e ad!antage/
</ tart .ith a ;ero "udget/ tart form scratch/ Bui#d a ne. communications p#an/ pecify .hat
you need to do to achie!e your o"0ecti!es/ In rea#ity2 the "udget you get is often #ess than you
idea##y2 so you may ha!e to prioritise communications acti!ities according#y/
6/ Think customer first/ 5rap communications around the customers4 "uying process/ Identify
the stages they go through "efore2 during and after a purchase/ e#ect communication too#s
that are right for each stage/ -e!e#op a se1uence of communications acti!ities .hich he#p the
customer to mo!e easi#y through each stage/ Ane car company identified 1$ points of
customer contact/ Marketers ha!e to think through the detai#ed stages of the menta#2
emotiona# and "eha!ioura# processes through .hich customers mo!e .hen they "uy different
products and ser!ices/
$/ Bui#d re#ationships and "rand !a#ues/ &## communications shou#d he#p to de!e#op stronger
and stronger re#ationship .ith customers/ &sk ho. each communications too# he#ps to do
this/ @emem"er customers retention is an important as customer ac1uisitions/
,/ -e!e#op a good marketing information system .hich defines .ho needs .hat information
.hen/ & customer data"ase2 for examp#e2 can he#p the te#esa#es2 direct marketing and sa#es
force/ IMC can he#p to define co*!ita# information/ -oes the data"ase ha!e a fie#d for
customer comp#aints and suggestionsF
3<
'/ hare art.ork and other media/ Consider ho.2 say2 ad!ertising imagery can "e used in
mai#shosts2 exhi"ition stands2 Christmas cards2 ne. rea#ises and .e" sites/ ome 0eans
companies are putting their .e" addresses on the 0eans #a"e#s/
10/ Be prepared to change it a##/ )earn form experience/ Constant#y search for the optimum
communications mix/ Test/ Test/ Test/ Impro!e each year/ 3Mai;en4/
Intensive Marketing Communications
Buying mode#s are he#pfu# .hen considering ho. to p#ug a## the communications gaps or channe#s
that #ead to a "uyer4s mind/ By identifying the stages a "uyer goes through2 and a## the possi"#e
communication channe#s2 it is possi"#e to force a product or ser!ice into the mind "uyer 8if the
resources are a!ai#a"#e9/ Dopefu##y2 .hat is forced in is accepted and percei!ed to "e p#easant rather
than resented and re0ected/
& ma0or soft drinks manufacturers once tested this idea in a %uropean to.n/ There .as "#anked #oca#
ad!ertising supported "y street "ands2 free samp#es2 free gifts2 ne. point of sa#es materia# in e!ery
CTC 8confectioner2 to"acconist and ne.sagent9
%!en extra !ending machines and street sta##s .ere p#aced strategica##y to maximi;e the consumer4s
opportunity to samp#e and "uy the "rand/ The consumer cou#d not a!oid the "rand/ %!ery route to
the consumer4s mind .as fi##ed/
The terms 3share of mind4 is an a.esome piece of marketing 0argon/ If effecti!e#y means ho. many
minds you can get a "rand or an organisation into/ hare of mind can "e "ought "y increasing the
marketing communications spend/ Many companies o"!ious#y .ant to keep their "rands in the front
of the "uyer4s mind 8front of minded a.areness49/ This o"!ious#y depends on the 1ua#ity and
fre1uency of ad!ertising and other marketing communication too#s compared to a competitor4s
communications/ 3hare of !oice4 refers to the share of ad!ertising spend against the tota# market
spend on ad!ertising/ Af course it isn4t a## p#ain sai#ing since2 first2 most companies ha!e #imited
resources and2 second2 there is a phenomenon ca##ed 3competition4/ They may "e trying to use same
communication channe#s/
36
Marketing Mix Must also Balanced and Integrated
& .e## p#anned and carefu##y executed marketing communications programme cannot2 on its o.n2
guarantee success/ This is dependent on a "a#anced marketing mix/ & great ad!ertisement may
succeed in getting peop#e to go out and ask for a particu#ar product2 "ut the o!era## p#an fai#s if2 say2
the p#ace is .rong/ Too much 3pu##4 and not enough 3push4/ (erhaps #ess in!estment in ad!ertising
83pu##49 and more in!estment in sa#es training 83push49 or simp#y more direct in!estment in
distri"ution 8ne. de#i!ery !ehic#es2 more dri!ers2 "etter ser!iced !ans2 "igger stocks2 sma##er
minimum orders2 1uicker de#i!eries2 etc9 might ena"#e the right good to get to the right p#ace at the
right time/ imi#ar#y2 the promotion and the p#ace might .ork to "ring a potentia# customer c#ose to
"uying a particu#ar product "ut he price might 0ust put the product out of reach/ >ina##y2 the product
8or ser!ice9 must match the promise made through the communications mix if #ong*term success
8repeat sa#es9 is to "e achie!ed/ & customer on#y "uys a "ad product once/ This means that defunct
in!estment decisions ha!e to "e made in areas often outside the marketing manager4s contro#2 e/g/
product 1ua#ity programme2 product design programme2 ne. product de!e#opment programme2
production e1uipment2 staff moti!ation customer care programmes and so on/ Today4s "usinesses are
#eaner and f#atter and run "y mu#tifunctiona# 8and therefore mu#tiski##ed9 mangers/ %!en those
managers .ho are not direct#y in!o#!ed in marketing .i## re1uire an o!era## integrated marketing
perspecti!e2 as they .i## ha!e to "a#ance financia# decisions a#ong .ith production2 1ua#ity2 human
resources and marketing decisions/ (erhaps .e .i## at #ast see more "oardrooms disp#aying products
pictures of the organi;ation4s product2 ser!ices and emp#oyeesF
3$
Communications Theory
5hat is interesting is the exchange of information/ Communication is not a once .ay f#o. of
information/ Ta#king at or at someone does not imp#y successfu# communication/ This on#y occurs
.hen the recei!er actua##y recei!es the message that the sender intended to send/ Message re0ection2
misinterpretation and misunderstanding are the opposite of effecti!e communication/
Non-Verbal and Non-Verbal Communication
&#though !er"a# and !isua# communications gain a #ot of conscious attention2 there are non*!er"a#
and non*sym"o#ic .ays of communicating2 such as space2 time and kinetics/ Cro.ded areas2 or #ack
of space2 send messages to the "rain2 .hich2 in turn2 can stimu#ate a different set of thoughts and a
different "eha!ioura# response/ The opposite is a#so true7 a spacious office or #i!ing room con!eys
different images/ In .estern cu#tures the use of time creates images2 e/g/ a "usy "ut organi;ed person
gi!es an impression of authority/ 3Thanks for your time4 immediate#y con!eys a respect for and an
appreciation of a seeming#y important person4s time/ a "usy diary can pro0ect an image of
importance/ 3I can s1uee;e you in on >riday at//4 imp#ies seniority in the re#ationship/ In the 6M2 the
term 3.indo.4 is no. used for free time or space in a "usy diary/ ome ad!ertisements se## products
and ser!ices primari#y on time sa!ing con!enience "enefits/ In fact2 "anks are rea##y time machines
that a##o. an indi!idua# to mo!e for.ard in time "y "uying2 say2 house that .ou#d not norma##y "e
afforda"#e for 30 years/ >ina##y2 kinetics communicates/ +estures and mo!ements send messages/
%!en the simp#e2 s.ift c#icking of a "riefcase2 entering or #ea!ing a room or c#osing or not c#osing a
door can communicate/ Most of a##2 "ody #anguage and facia# gestures are po.erfu# communicators/
&n understanding of "ody #anguage a##o.s an indi!idua# to #earn more a"out .hat another person is
rea##y fee#ing/ & smi#e2 for examp#e2 communicates immediate#y2 effecti!e#y and direct#y/
Semiotics
The fie#d of semiotics 8or gemo#ogy9 opens up a rich discussion of ho. sym"o#s and signs are used
in communications2 particu#ar#y ad!ertising/ &udiences often unconscious#y percei!e images
stimu#ated "y certain sym"o#s/
3,
2 A Theoretical Understanding of Marketing Communications
%nge#2 .arsha. and Minnear 81''49 demonstrated ho. )e!er4s fa"ric softener nugg#es uses a
cudd#y teddy in its ad!ertising/ Caro# Moog2 ad!ertising consu#tant and psycho#ogist2 says that
The "ear is an ancient of aggression2 "ut .hen you create a teddy "ear2 you pro!ide a softer2
nurturing side to that aggression/ &s a sym"o# for tamed aggression2 the teddy "ear is the perfect
image for a fa"ric softener that tames the rough of c#othing/
%nge#2 5arsa. and Minnear comment7
The key point here is that if marketing communicators are not a.are of the su"t#e meaning of
sym"o#s2 then they are #ia"#e to communicate the .rong message/
Miss Moog4s ad!ice to (ierre Cardin on its men4s fragrance ad!ertisement2 .hich .as designed to
sho. men .ho are 3aggressi!e and in contro#4 sp#ashing fragrance2 .as accepted "ut re0ectedQ Miss
Moog sa. 3co#ogne gushing out of a pha##ic shaped "ott#e4 creating a conf#ict of images2 since it
3sym"o#i;ed ma#e e0acu#ation and #ack of contro#4/
(ierre Cardin ackno.#edged that she .as pro"a"#y right "ut decided to keep the shot2 as it .as 3a
"eautifu# product shot p#us it encourages men to use our fragrance #i"era##y4/ C#oser to home2
+uinness used @utgers Dauer4s "#ack c#othes and "#onde hair in the no. c#assic +uinness
ad!ertisements to sym"o#i;e the pint of +uinness itse#f/
Communications Models
Co simp#e diagram can ref#ect a# the nuances and comp#exities of the communication process/ This
section some "asic theories and mode#s/
Figure 1:A Single Step Communication Model
There are three fundamenta# e#ements in communication2 the sender 8or source92 the message and
the recei!er as sho.n "e#o./
A Simple Compunctions Model
3'
ender Message @ecei!er
This "asic mode# assumes that the sender is acti!e2 the recei!er is inacti!e or passi!e and the
message is comprehended proper#y/ In rea#ity this is rare#y the case/ &n understanding of the target
recei!er or audience he#ps to identify .hat is important to the audience and ho. sym"o#s2 signs and
#anguage are interpreted/ The message is 3dressed up4 or coded in an appropriate .ay2 sent through a
media channe# and2 if it gets through a## the other noise2 fina##y decoded "y the recei!er/ +uinness
ad!ertisements "asica##y ask their target audience to drink +uinness2 "ut they are !ery carefu##y
coded/ >or examp#e2 3it is not easy "eing a do#phin4 .ere the on#y .ords uttered in one of their
te#e!ision ad!ertisements/ The audience decodes the message 8correct#y or incorrect#y9 and
u#timate#y re0ects2 accepts2 stores or decides .hether to drink +uinness or not/ &midst and carefu#
coding and decoding there is noise2 the extraneous factors that distract or distort the coded messages
as in the figure "e#o./
Figure 2: The Communication Process (based on Schramm`s 1955 Model)
The sender monitors feed"ack 8e/g/ .hether the recei!er changes his "eha!iour2 facia# expression2
"e#iefs or attitudes9 so that the message 8and=or the channe# in .hich it is sent9 can "e modified or
changed/ 5ith so many other ad!ertisements out there it is easy to understand .hy so #itt#e
communication actua##y gets through and .orks on the target market/
40
Coise
%ncoding ender
Message -ecoding @ecei!er
>eed"ack
Mass Communications
-espite the attraction of one to one marketing2 mass communications such as te#e!ision ad!ertising
is sti## considered attracti!e "ecause it can reach a #arge audience 1uick#y and cheap#y 8.hen
comparing the cost per thousand indi!idua#s contacted/ Much of this kind of mass ad!ertising is
ignored or distorted "y an indi!idua#4s information processing system/ Do.e!er2 there is usua##y2
.ithin the mass audience2 a percentage .ho are either acti!e#y #ooking for the particu#ar product
type or .ho are in a recepti!e state for this type of message/ Mass communication is therefore of
interest to many marketing communicator/ It is not the sing#e step process it .as considered to "e in
the ear#y mass communications/
This kind of inaccurate mode# of mass communication suggests that the sender has the potentia# to
inf#uence an unthinking and non*interacting cro.ded/ &udiences 8recei!ers9 are acti!e in that they
process information se#ecti!e#y and often in a distorted manner 8.e see .hat .e .ant to see9/
@ecei!ers 8the audience9 a#so ta#k to each other/ Apinion formers and opinion #eaders a#so inf#uence
the communications process/
Mat; and )a;ars fie#d4s t.o*step hypothesis 81''<9 he#ped to reduce fears of mass indoctrination "y
an a##*po.erfu# media/ It assumed mass messages fi#tered messages fi#tered through opinion #eaders
to the mass audience/
5hen opinion formers 8A>9 are added in2 the communications mode# "ecomes a #itt#e "it more
interesting/ Apinion formers can "e separated form opinion #eaders/ Apinion formers experts .hose
opinion has inf#uence2 e/g/ 0ourna#ists2 ana#ysts2 critics2 0udges/ Mem"ers of a go!erning "ody/
(eop#e seek their opinions and they pro!ide ad!ice/ Apinion #eaders2 on the other hand2 are harder to
identify they are not forma# experts2 they do not necessari#y pro!ide ad!ice "ut other "uyers are
inf#uenced "y them/ Ather customers #ook to.ards them/ Apinion #eaders often en0oy higher socia#
status 8than their immediate per group92 are more gregarious and ha!e more confidence to try ne.
products and ser!ices/ %ndorsements form "oth opinion formers and opinion #eaders are !a#ua"#e/
The opinion formers are often 1uoted in promotiona# #iterature and ad!ertisements2 .hi#e the sty#e
#eaders are often seen .ith the "rand through c#e!er editoria# exposure engineering "y pu"#ic
re#ations professiona#s/ This can "e generated "y co##ecting third party endorsements2 creating e!ents
41
around ce#e"rities and 3p#acing4 products a#ongside ce#e"rities 8e/g/ "randed minera# .ater on the top
ta"#e at press conferences or actua# ce#e"rities 8e/g/ "randed minera# .ater on the top ta"#e at press
conferences or actua# product p#acement in fi#ms/9 in B2B markets "#ue chip customers are opinion
#eaders and are much sought after2 as their presence on a customer #ist inf#uence other customers/
Both opinion formers and opinion #eaders can contri"ute to.ards credi"i#ity/ 3Credi"i#ity "efore
!isi"i#ity4 means that a so#id p#atform of credi"i#ity shou#d "e de!e#oped "efore raising !isi"i#ity and
high profi#e acti!ities/
Multi Step Communications Model (a)
Communication is in fact a mu#tifaceted2 mu#ti step and mu#ti directiona# process/ Apinion #eaders
ta#k to each other/ Apinion #eaders ta#k to their #isteners/ )isteners ta#k to each other 8increasing#y
.ith discussion groups=internet groups9 and su"se1uent#y feed "ack to opinion #eaders/ ome
#isteners=readers recei!e the message direct#y/
Multi Step Communications Model (b)
Coise2 channe#s and feed"ack can "e added to the mu#ti step mode# to make it more rea#istic/ The
process of communicating .ith groups is fascinating/ +roups ro#es 8#eaders2 opinion formers=#eaders
and fo##o.ers92 group norms and group attitudes are considered in 3group inf#uence/ In fact2 a## the
inter!ening psycho#ogica# !aria"#es can "e added into the communications mode#s to sho. ho.
perception2 process/ The inter!ening !aria"#es and some more comp#ex mode#s of "uyer "eha!iour
are considered/
5ining o!er the opinion #eaders can "e key to any marketing communications campaign2 .hether
BB or B2C/ Take BB7 IBM #inked up .ith the Marketing ociety2 as its 32<00 mem"ers
represented key mo!ers and shakers in the "usiness .or#d/ Consider B2C7 Mangaroos trainers
targeted opinion #eading ce#e"rities such as Cat -ee#ey2 %dith Bo.man and kids TH sho. presenters
"y gi!ing "y gi!ing them free shoes/
Web Communications Models
)et4s take this a stage further and consider today4s .e" communications mode#s .hich re!o#!e
around the "rand instead of simp#y "eing sent to the masses "y the "rand o.ner/ Markets are
42
con!ersations/ 5or#d of mouth .orks much more 1uick#y on#ine than off#ine/ 5ith the Internet came
the easier faci#itation of customer communities2 .here customers can ta#k2 first2 to each other 8C2C9
and2 second#y2 "ack to the company 8C2B9/ The f#o. of communications e!entua##y "ecomes #ike a
.e" communications "et.een customers and opinion #eaders a## "ui#t around the "rand/
The company faci#itates these con!ersations/ In doing so2 it keeps c#ose to customers2 as if can #ook
and #isten to .hat4s "eing said/ It can a#so communicate easi#y .ith the customers and u#timate#y
de!e#op strong re#ations .ith them/ Ce.sgroup and discussion rooms hosted "y the "rand discuss
the "rand2 its app#ication2 pro"#ems2 issues2 ideas2 impro!ements and a "roader array of topics #inked
.ith some of the "rand !a#ues/ In a sense2 a .e" of con!ersations is spinning around the "rand/
Customers ta#k to each other/ >or examp#e2 more than ha#f of eBay4s customers come form referra#s
8@eichfie#d and chafter 20009/
The e*marketing team shou#d a#so monitor user group sites it does not host? some of the truths may
"e painfu# "ut extreme#y usefu#/ C2C communications can "e negati!e/ @emem"er the (entium chip
pro"#emF It spread #ike .i#dfire as the .orry spread on#ine/ C2C communications can a#so "e fue##ed
"y some customer groups .ho set up fake sites and hate sites that are spreading negati!e messages
a"out "rands/ Ane type of CC that is positi!e and in fact generates a #ot of "usiness is referra#2
.here happy customers "ecome ad!ocates and recommend other customers/ &nother positi!e form
of C2C and (2( is ri!a#2 .here customers pass the message on/ This is acce#erated .ord of
announcements and in!itations are good for !ira# marketing/ &ffi#iate marketing a#so spreads
a.areness of a "rand among a community of re#e!ant customers2 .ho in turn to each other and can
spread ordinary or c#e!er !ira# messages among their o.n communities/ Imp#icate in a## of these
communications mode#s is permission "ased marketing/ In this time compressed2 information
c#uttered .or#d2 customers resent unso#icited pam/ %xce##ent e*marketers .in permission to send
future messages/ If the customer agrees2 a message is fina##y sent/
Indi!idua##y do ta#k to each other 8at #east <00 mi##ion on the internet and "i##ions on the phone92
particu#ar#y .hen sharing persona# product experiences/ In fact2 dissatisfied customers te## up to
another 11 peop#e a"out their "ad experience2 .hereas satisfied customers te## on#y 3 or 4/
43
&s marketing guru (hi#ip Mot#er says2 3Bad ne.s tra!e#s faster than good ne.s4/ &#though this is not
in the rea#m of mass communications2 it does demonstrate ho. e!erything an organi;ation does
communicate something to someone some.here/
Understanding Multi Phase Communication
5hether on#ine2 off#ine or integrated2 here is ho. an understanding of mu#ti phase communication
he#ps many ad!ertisers to communicate direct#y to the mass 8through the mass media9 and indirect#y
through opinion #eaders2 sty#e #eaders2 inno!ators2 ear#y adopters2 inf#uentia# indi!idua#s and opinion
formers/
&d!ertisers recogni;e than in each market there are sma##er target markets of opinion #eaders .ho
inf#uence other mem"ers in the marketp#ace/ Ma0or "rands can maintain their credi"i#ity "y ta#king
8ad!ertising9 specifica##y to these #eaders as .e## as ta#king to the mass through other media channe#s
8sometimes .ith messages tai#ored for the t.o groups9/ 5hether ad!ertising hi*fis2 fashion2 tennis
rackets or socia# issues2 mu#ti step communications can "e emp#oyed/
In the .or#d of fashion2 the #eaders re ca##ed 3sty#e #eaders4/ %!en cu#t fashion products can "e mass
marketed "y carefu##y sp#itting the messages "et.een sty#e #eaders and the mass/ 5hi#e the #eaders
.ant to set themse#!es apart form the rest2 the mass market conscious#y and or unconscious#y #ooks
to the #eaders for suggestions a"out .hat to "uy/ The difficu#ty #ies .ith success as the mass*market
"uys more2 the #eaders #ose interest un#ess they are reinforced .ith "rand !a#ues that preser!e the
"rand4s credi"i#ity among the cognoscenti/ This is important "ecause if the #eaders mo!e a.ay today2
the mass sa#es .i## e!entua##y start fa##ing a.ay next year after/ o2 in addition to the mass
ad!ertising2 some "rands use sma## use sma## audience2 targeted2 opinion #eader media to send the
3right4 message to reinforce the #eaders4 re#ationship .ith the "rand/
Di*fi trendsetters need different kind of ad!ertising than 0ust co#our supp#ements .ith g#ossy "rand
images/ These 3inno!ators and ear#y adopters4 read additiona# maga;ines and #ook for more detai#ed
technica# information in music maga;ines or specia#ist hi*fi maga;ines "uyers4 guides2 etc/ #ess
kno.#edgea"#e "uyers often refer to a friend .ho is a "it of a music "uff 8inno!ator or adopter9 for
an opinion on a "rand of hi*fi "efore deciding to "uy/ Bust getting the product into the hands of the
44
opinion #eaders can he#p a "rand competing in a #arge market/ 6 marketing guru Mot#er suggest that
specia# offers to opinion formers can .ork .onders/
& ne. tennis rac1uet may "e offered initia##y to mem"ers of the high schoo# teams at a specia# #o.
price/ The company .ou#d hope that these star high schoo# tennis p#ayers 8of inf#uentia# indi!idua#s9
.ou#d 3ta#k up4 their rac1uet to other high scho#ars/
&n understanding of mu#ti phase communication processes can contri"ute something to the
de!e#opment of socia# issue campaigns #ike that concerning &I-/ The initia# stages of the campaign
.ere temporari#y restricted "y inaccurate editoria# co!erage/ ome ta"#oid 0ourna#ists .ere feeding
conf#icting messages to the same mass .hich the ad!ertising .as addressing .as addressing/ The
factua# ad!ertising .as s.itched into the press so that opinion formers 80ourna#ists9 cou#d hot .rite
any more conf#icting and inaccurate reports/
The po.er of inf#uentia# indi!idua#s and inf#uentia# organi;ations can a#so "e seen in industria#
markets/ &n entire industry may fo##o. .e##*respected and high#y successfu# companies initia##y/
Marketers in consumer markets can a#so focus on the peop#e .ho are the first to "uy ne. ideas/
Better information today can pro!ide a focused approach through data"ase marketing2 .hi#e the
imagery used can ref#ect the #ifesty#es2 attitudes and aspirations of these 3inno!ators=ear#y adopters4
of fresh ideas/
5ho are these 3ear#y adopters4 of ne. products and ser!ices4 are they different form the other
potentia# customers in the same in the same marketF Do. do they 3adopt4 ne. products or ser!icesF
Is there a particu#ar type of process through .hich they passF The fina# section of this chapter
pro!ides some ans.ers/
Word of Mouth
5ord of mouth is the potent of a## the communications to##s/ (roduct=ser!ice 1ua#ity and customer
care great#y inf#uence .ord of mouth/ @ecord #a"e# Te#star has .orked .ith peaopp#esound/com
using its peop#e to recruit mo"i#e users 8and2 important#y their num"ers92 .ho then recei!e a Mis*
tee1 mo"i#e #ogo and ring*tones/ The Body hop a!oids ad!ertising yet ha!e a#so succeeded through
.ord of mouth/ 5ord has spread a"out the ne. .e" company Cua/ &#though it is physica##y "ased
4<
in Ire#and2 .ord of mouth has encouraged o!er 1002000 "usiness executi!es to su"scri"e to its free
e#ectronic .e" sur!eys/ Many Internet campaigns are designed to encourage the most potentia# too#2
.ord of mouth/ @egard#ess of source2 and often regard#ess of fact2 peop#e do ta#k/ @umours can
spread #ike .i#dfire .ithout any mass ad!ertising/ (eop#e do ta#k to each other2 .hether opinion
formers2 opinion #eaders groups of peop#e ta#king on the Internet2 on chat sho.s or on street corners/
Adoption Model
e!era# different hierarchica# message mode#s/ The adoption mode# 8@ogers2 1'629 is one of these/ It
attempts to map the menta# process though .hich an indi!idua# passes on his 0ourney to.ards
purchasing2 and u#timate#y adopting 8or regu#ar#y purchasing9 a ne. product or ser!ice/
This some.hat simp#istic hierarchica# mode# is ne!erthe#ess usefu# for identifying2 first2
communication o"0ecti!es and2 second2 the appropriate communications too#s/
>or examp#e2 te#e!ision ad!ertising may create a.areness2 .hi#e a .e##*trained sa#esman of expert#y
designed "rochure may he#p the indi!idua# in the e!a#uation stage/ In rea#ity2 the process is not
simp#y hierarchica#/ ome indi!idua#s more direct#y from a.areness to trai#2 .hi#e others #oop
"ack.ards form the #ater stages "y ne!er actua##y getting around to trying the ne. idea2
su"se1uent#y forgetting it and then ha!ing to go through "eing made a.are o fit again/ @ogers .as
a#so interested in ho. a ne. idea spreads or diffuses through a socia# system or market/ De deafened
diffusion as 3the spread of a ne. idea from its source of in!ention or creation Ito its u#timate users or
adopters4/ e!era# groups .ho mo!ed to.ards adoption : at different rates .ere identified/ The first
groups try a ne. product .ere ca##ed 3inno!ators?/ They represent approximate#y 2/< per cent of a##
of the "uyers .ho .i## e!entua##y adopt the ne. product/ Their profi#e .as different from those .ho
.ere #ast to try a ne. idea 8the 3#aggards49/ Apinion #eader characteristics .ere part of the
inno!ators/ The key to the market is to identify2 iso#ate and target resources at the inno!ators rather
than e!eryone 8,4 per cent .i## not "uy the product unti# they se the inno!ators and ear#y adopters
.ith it first9/ The 3ear#y adopters4 are the second group to adopt a ne. idea 8they represent 13/< per
cent of the tota# market92 fo##o.ed "y the 3ear#y ma0ority4 834 per cent92 the 3#ate ma0ority4 834 per
cent9 and the 3#aggards4 816 per cent9/
46
%ach group has a different profi#e2 encompassing income2 attitudes2 socia# integration2 etc/ inno!ators
are !enturesome2 socia##y mo"i#e and key #ikes to try that are ne./ The ear#y adopters tend to "e
opinion #eaders .ho carefu##y adopt ne. ideas ear#y/ In the retai# sector2 Cie#sen identified ear#y
adopters as mu#tip#e card ho#ders 8among other things92 .ho are !ery different form sing#e
cardho#ders in that they are significant#y more promiscuous in their usage/ The ear#y ma0ority adopts
ear#ier than the ma0ority of the market and they are e!en more carefu#2 a#most de#i"erate2 in their
"uying process/ The #ate ma0ority on#y adopt after they ha!e seen the ma0ority of peop#e try it/ They
tend to "e skeptica#/ The #aggards are se#f*exp#anatory tradition "ound and the #ast to adopt/
Many of the pre!ious#y discussed mode#s offer some insight into the communication process "ut2
a#most in!aria"#y2 they distort or o!ersimp#ify the process of communication/
The Complex Burger Buyer
5hy "uy a "urgerF The ans.er might "e as simp#e as 3"ecause I .as hungry so I "ought a Big Mac4/
The rea# reason2 ho.e!er2 may "e 1uite different/ (erhaps the "uyer .as in a recepti!e state for food
"ecause of the time of the day/ In the dame .ay that a stimu#us such as a "e## for (a!#o!4s dog can
cause a dog to sa#i!ate2 the high#y !isi"#e ye##o. Mc-ona#d4s #ogo can act as a stimu#us to the
customer to remind him of food and arouse fee#ings of hunger e!en sa#i!ation/ (erhaps the ye##o.
#ogo a#so acts as a cue "y triggering memories of the happy ad!ertising images2 .hich are #earned
and stored in memory "ankF
& teenage "urger "uyer may prefer Mc-ona#d4s "ecause friends hang out there and it fe##s nice to "e
in .ith the in*cro.d 8Mas#o.4s need to "e accepted or #o!ed? see 3moti!ation49/ May "e the friend#y
image and the 1uick ser!ice simu#taneous#y satisfies t.o "asic needs : #o!e and hungerF Many
con!enience purchases today are2 in fact2 thing e#se2 to satisfy another need/ It is #ike#y that "uyers
ha!e many different reasons .ith different orders of importance/ -ifferent reasons .ith different
orders of importance/ But .hy don4t they go into a 5impy restaurant or a fish and chip shop instead
of a Mc-ona#d4sF
Choice is often inf#uenced "y fami#iarity .ith the "rand2 or sometimes the #e!e# of trust in a "rand
name/ >ami#iarity can "e generated "y actua# experience and or increased a.areness "oosted "y
ad!ertising/ If one "rand can get into the front of an indi!idua#4s mind 83font of mind a.areness49
through ad!ertising2 etc2 then it .i## stand a "etter chance of "eing chosen in a simp#e "uying
4$
situation #ike this2 un#ess2 of course2 the "uyer has a preferred set of fast food prepared to search a
#itt#e harder 8e!en cross the road9 "efore satisfying the aroused need/
The choice of another group of "urger "uyers can "e determined simp#y "y #ocation offering the
right goods or ser!ices in the right p#ace at the right time at the right prices/ &ssuming this a##
supported "y the right image 8e/g/ c#ean and friend#y2 nutritious2 fast ser!ice2 socia##y responsi"#e92
and then the marketing mix has succeeded in capturing this segment of non*#oya# "urger "uyers .ho
ha!e no strong preferred set of fast food out#ets/ Cice hea#th conscious "uyers may prefer a nice
.arm cup of soup2 .hyF 5hat moti!ates themF Dea#thF & desire to #i!e #ongerF & fear of deathF &
desire to "e fit2 stay s#im2 #ook good 8esteem9 or 0ust fee# hea#thy=fee# good 8se#f actua#i;ation9 or
perhaps it4s cheaper than a "urgerF Ar is it "ecause e!eryone #ese in the office recommends the #oca#
de#icatessen4s soup 8pressure to conform to group norms2 desire to "e accepted "y a group again2 the
need to "e #o!ed9F
There are other possi"i#ities that #ie in the dark depths of our !ast information storage cham"ers2
other.ise kno.n as our unconscious/ >or examp#e2 in the 1'<0s Hance (ackard suggested that7
The deepest roots of our #iking for .arm2 nutritious and p#entifu# soup may #ie in the comforta"#e
and secure unconscious prenata# sensations of "eing surrounded "y the amniotic f#uid in our
mother4s .om"/
Impu#se "uying and repeat purchasing of #o. cost fast food o"!ious#y differ from the "uying
"eha!iour in!o#!ed in the purchase of2 say2 ane. compact disc system2 a house2 a ho#iday or a f#eet
of ne. cars for the company/ It is #ike#y that more 3information search4 .i## occur than in the simp#e
stimu#us response*"uying mode# 8Mc-ona#d4s ye##o. #ogo stimu#ates the senses and arouse hunger2
.hich generates the response "uy a Big Mac9/ @egu#ar #o. cost purchases are kno.n as 3routines
response "eha!iour4 and therefore ha!e a different "uying process than a high cost2 high risk2
irregu#ar purchase2 .hich is kno.n as a 3high in!o#!ement purchase4/ ome "asic "uying mode#s
he#p to exp#ain the different types of purchases and the types of "uying in!o#!ed/
4,
ome peop#e "eha!e different#y on#ine than off#ine/ They assume different pseudonyms and
persona#ities/ ometimes it4s hard to kno. .ho4s .ho on#ine/ &s they say2 3.ho kno.s you are a dog
on#ineF4
Why do They Buy?
Marketing peop#e rea##y do need to kno. the reasons .hy "uyers "uy/ There appears to "e a host
conscious and unconscious reasons under#ying .hy peop#e "uy .hat they "uy/ ome reasons are
more important than others to a particu#ar segment/ ome reasons are rationa# and some are
emotiona#/ The sp#it "et.een the t.o is ca##ed the 3emotiona#=rationa# dichotomy4/ The #ate @o"ert
+oue;eta2 former C%A of Coca Co#a2 once said2 3.e se## image/ 5e don4t kno. to se## on
performance/ %!erything .e se##2 .e se## on image4/
This rationa# and emotiona# 1uagmire is not restricted to consumer purchasing "ut app#ies a#so to
supposed#y hard*nosed rationa# professiona# "uying "eha!iour/ (erhaps he .as a"so#ute#y right .hen
you consider that many customers are prepared to pay ,00 per cent more for the 3the rea# thing4 than
an o.n "rand co#a from &sda/ The authors .ere shocked to disco!er a 2*#itre "ott#e of Co#a *Co#a
se##ing at N1/20 .hi#e on the same she#f &sda o.n #a"e#s 2 #iter co#a .as se##ing for N0/1</ The
"ottom #ine is that marketing managers ha!e constant#y to ask 1uestion7 3.hy are they "uying or not
"uying my products or ser!icesF4 the ans.ers are not static2 one*off pieces of research findings "ut a
constant f#o. of information/ @easons change2 peop#e change2 market change2 competition and
techno#ogy change/ & !a#id reason for "uying a particu#ar product yesterday may "ecome o"so#ete
tomorro./ )ike.ise2 an apparent#y irre#e!ant feature yesterday may "ecome a key reason for "uying
tomorro./
& company executi!e might "uy one "rand of a computer rather than another simp#y "ecause of a
distant fear of "eing fired/ This further comp#icated "y the fact that some customers "uy t he same
product for different reasons/ >or examp#e2 &mericans may "uy a ony -iscman "ecause it ena"#es
them 3to #isten to their fa!ourite music .ithout images of different reasons 8needs or moti!es9 for
"rushing their teeth/ The fo##o.ing toothpaste test exp#ains/
The Co#gate 3ring of confidence4 .as one of he 6M4s "est*kno.n toothpaste ad!ertisements/ It .as
"asica##y se##ing a tu"e of socia# confidence/
4'
This need to "e accepted is re#ati!e#y o"!ious a#though not a#.ays admitted initia##y/ There are2
ho.e!er2 deeper fee#ings2 emotions2 memories2 moods thoughts2 "e#iefs and #ocked up inside the
dark depths of our unconscious/ igmund >reud suggested that the mind .as #ike an ice"erg in so far
as the tip represents the conscious part of the mind .hi#e the greater su"merged part is the
unconscious/ %!en #ong forgotten chi#dhood experience can affect "uying "eha!iour2 inc#uding hard
nosed &merican industria# "uyers/
In the 6M many organisations use in depth research2 e/g/ +uinness carry out in depth research to tap
into drinkers4 deep#y ingrained fee#ings a"out the product/ Indi!idua#s are asked to express their
8often unconscious9 fee#ing through c#ay mode#ing2 picture comp#etion and cartoon comp#etion
techni1ues/ This kind of research has re!ea#ed that peop#e associate natura# goodness and 1uasi*
mystica# 1ua#ities .ith the "rand/ The section on moti!ation #ooks at in depth fee#ings/
Types of Buying Situation
The amount of time and effort that a "uyer is prepared to put into any particu#ar purchase depends on
the #e!e# of expenditure2 the fre1uency of purchase and the percei!ed risk in!o#!ed/ @e#ati!e#y #arger
expenditure usua##y .arrants greater de#i"eration during search and e!a#uation phases/ In consumer
markets this "uying process is c#assified as 3extensi!e pro"#em so#!ing4 8%(9 if the "uyer has no
pre!ious product experience and the purchase of2 and fami#iarity .ith2 a particu#ar product or
ser!ice/ This is ca##ed 3#imited pro"#ems so#!ing4 8)(9/ In the case of strong "rand #oya#ty of a
ha"itua##y purchased product2 3routinised response "eha!iour4 8@@B9 can "e identified "y the repeat
"rand purchasing of con!enience products #ike "aked "eans/ The "uyer chooses 1uick#y and has a
#o. in!o#!ement .ith the purchases/ %( re1uires high in!o#!ement form the "uyer2 .hich means
that the "uyer spends time and effort "efore actua##y deciding to "uy a particu#ar product or "rand/
This can "e comp#icated "y further ad!isers and inf#uences .ho form part of the 3decision making
unit4 or -M6 8see "e#o.9/ )( o"!ious#y re1uires #o.er #e!e#s of in!o#!ement than %( "ut more
than @@B/
Industria# "uying is e!en more c#ear#y inf#uenced "y decision*making units2 particu#ar#y .hen the
purchase is considered #arge2 infre1uent or risky/ )ike consumer "uying2 types of purchase situation
a##o. !ary in industria# markets/ a 3ne. task4 "uying situation means .hat it says the organisation
has no experience of the product or ser!ice and is "uying it for the first time/ a 3modified re"uy4
<0
situation is .here the industria# "uyers has some experience of the product or ser!ice2 .hi#e a
3straight re"uy4 is .here the "uyer2 or purchasing department2 "uys on a regu#ar "asis/
Decision Making Units
&s mentioned pre!ious#y2 there are often se!era# indi!idua#s in!o#!ed in any one person4s fami#y to
purchase either consumer or industria# products and ser!ices/ The choice of a fami#y car may "e
inf#uenced "y parents2 chi#dren2 aunts2 un#ess2 neigh"ours2 friends2 the &utomo"i#e &ssociation and
so on/ %ach may p#ay a different ro#e in the "uying process/ imi#ar#y2 the purchase of a ne. factory
machine may ha!e "een instigated "y a safety inspector2 se#ected "y a team of engineers2
super!isors2 shop ste.ard2 production manager2 agreed "y the "oard2 "ought or ordered "y the
purchasing director and paid for "y the financia# director or company secretary/
Models or Buyer Behaviour
There can demonstrate this simp#e "uying mode# "y considering2 say2 the purchase of a ne. compact
disc p#ayer/ ome.here2 some"ody or something te##s you that you need a C-/
This is kno.n as pro"#em recognition .hich is fo##o.ed "y 3information search4/ This may in!o#!e
ads and editoria# in maga;ines2 !isits to stores2 discussion among friends2 etc/ next comes e!a#uation/
)eaf#ets2 cata#ogues2 ads and discussions are massed and a set of criteria is further refined/ This may
inc#ude si;e2 shape2 co#our2 de#i!ery2 guarantee2 etc/ (erformance is rea##y difficu#t to assess2 since
fe. of us can read sound is made to choose decipher a good sound in a shop fu## of other speakers/
>ina##y2 a decision is made to choose a particu#ar mode#/ It isn4t o!er yet/ The chosen "rand may "e
out of stock 8in .hich case the communications mix has fai#ed2 since distri"ution has not got the
product on the she#f9/ &nother "rand is e!entua##y purchased/ This is .hen .ea!es of .orry2 dou"t or
3post purchase dissonance42 arise/ This may "e addressed "y reassuring the "uyer 8.ith a
congratu#atory note2 additiona# ad!ertising2 after sa#es ser!ice and2 most of a##2 a product or ser!ice
that #i!es up to the promise made in the ad!ertising9/ &nd if the product matches the promise then
repeat "usiness and .ord of mouth referra#s are more #ike#y to occur o!er the #onger run/
The simp#e "uying mode# sho.n "e#o. in the figure ser!es as a usefu# check#ist to see .hether you
are fi##ing in a## the communication gaps in the "uying process/ Interesting#y2 many .e" sites no.
use this as a check#ist to ensure that site he#ps different customers to mo!e through different stages
<1
of their "uying process/ The mode# shou#d not "e hierarchica# since in rea#ity there are #oops2 e/g/
"et.een information and e!a#uation as the "uyer #earns a"out ne. criteria not pre!ious#y considered/
This mode# is more re#e!ant for a high in!o#!ement purchase .hether extensi!e pro"#em so#!ing
8consumer9 or ne. task 8industria#9/ & routini;ed response situation2 #ike "uying a "eer2 .ou#d not
in!o#!e this #engthy de#i"eration/ )o. in!o#!ement purchases can sometimes appear to "e
thought#ess 8impu#si!e9 responses 8purchases9 to stimu#i 8point of sa#e disp#ays or .e## designed
packs9/ If attention can "e gra""ed2 them some "rands can "e "ought2 apparent#y2 .ithout much
considered thought processing/ Basica##y2 if you se the "rand2 you try it2 and if you #ike it2 you re"uy
it/ ome ad!ertising aims to remind customers and reinforce the "enefits of the "rand/ &d!ertising
can a#so reassure existing customers that they ha!e "ought the right "rand/ This defensi!e
ad!ertising 8defending market share9 reduces any post purchase dissonance 8or .orries9 and a#so
keeps the "rand on the "uyer4s shopping #ist 8or repertoire or "rands9/ In contrast .ith high
in!o#!ement purchases2 attitudes to.ards #o. in!o#!ement "rands can "e formed after the "rand
experience and not "efore/ In the more considered2 high "eha!iour actua##y occurs/ The attitude may
su"se1uent#y "e reinforced "y2 first2 the rea# experience of "uying and using the "rand and2 second2
any su"se1uent ad!ertising or .ord of mouth communications/
(rofessor %hren"ergs 1'$4 &T@ mode# 8a.areness Tria# @einforcement9 suggested that consumes
"ecome a.are of a "rand2 try it 8"uy it9 and then exposed to reinforcement "y ad!ertising 8or e!en
the actua# "rand experience9/
&.areness
Tria#
@einforcement
Tria# can occur many months after an ad!ertisement has created a.areness/
<2
&d!ertising here is a#so seen as defensi!e2 in so far as it reassures existing "uyers that they ha!e
made the right choice2 as opposed to ad!ertising that might make them run out and "uy the
ad!ertised "rand immediate#y/ %hren"erg ackno.#edges that some ad!ertising actua##y does prompt
8or 3nudge49 "uyers to "uy2 as demonstrated .ith his more exp#icit 1''$ &@T R C 8&.areness Tria#
@einforcement p#us occasiona# Cudging9 mode#/ %hren"erg4s specific !ie.s differ form many other
approaches high#ighted in this chapter2 yet his research findings are used "y top "#ue chip companies
around the .or#d/
Many other academics "e#ie!e that different "uying situations 8high and #o. in!o#!ement9 re1uire
different thought processes and timesca#e4s/ %!en .ithin the same product sector different processes
can occur/ Take grocery shopping/ &ustra#ian academics @ossiter and (ercy ha!e identified
differences in though process .ithin the grocery sector/ They suggest that most grocery "rands 86<
per cent9 need recognition at the point of purchase2 since "uyers tend to see the "rand first and then
rea#i;e they .ant it/ )ess than 10 seconds e#apse "et.een recognition and putting the product into
the tro##ey/ The other 3< per cent of groceries are chosen in ad!ance2 so "rand a.areness 8"efore
purchase9 is important for these/
It does not stop there/ There are more differences depending on .hether the purchase is a re#ief
purchase 8to so#!e a pro"#em such as dirty c#othes9 or a re.ard purchase 8to pro!ide gratification2
#ike ice cream9/ The re#ief purchases re1uire a more rationa# approach and the re.ard purchases a
more emotiona# approach/ o each market and each "rand needs to "e carefu##y ana#ysed/ (rofessor
@o"ert ha. 81''$92 points out 3many different measures such as "rand kno.#edge2 esteem2
re#e!ance or percei!ed 1ua#ity may need to "e monitored4/ &ny marketing manager other industria#
or consumer2 product or ser!ice has constant#y to .atch the market2 its segments and ho. it is
fragmenting/
Marketers need to understand their customers4 "uying process2 .hether on#ine2 off#ine or a mixture
of "oth/ -u#ux paints found that its "rand share is 11 per cent higher .hen customers choose their
paint co#our at home rather than in store/ But $< per cent of co#our decisions are made in the store/ It
therefore tried to #ock peop#e into a -u#ux purchase "efore they !isit a shop "y creating a !a#ue
added on#ine experience .here"y users can decorate a !irtue room 8.ith co#our coordination
suggestions9 and recei!e free s.atches de#i!ered free to their home .ith directions to their nearest
-u#ux retai#er/
<3
Response Hierarchy Models
&#though the u#timate o"0ecti!e for most marketing managers is to "ui#d repeat purchases from
profita"#e customers2 there are many stages "et.een creating pro"#em recognition or need arousa#
and purchase/ The communication mode#s sho.s .hat are "ought to "e se1uence of menta# stages
through .hich a "uyer passes on his 0ourney to.ards a purchase/
These mode#s are sometimes ca##ed 3message mode#s4 or 3response hierarchy mode#s42 since they
he#p to prioriti;e the communication o"0ecti!es "y determining .hether a cogniti!e affecti!e or
"eha!ioura# response is re1uired2 i/e .hether the organisation .ants to create a.areness in the target
audience4s mind2 or to change an attitude2 or to act in some .ay 8"uy2 !ote2 participate2 etc9/
These hierarchica# communication mode#s identify the stages through .hich "uyers genera##y pass/
&n understanding of these stages he#ps to p#an appropriate marketing communications/ -&+M&@
8defining ad!ertising goa#s form measuring ad!ertising resu#ts9 .as created to encourage measura"#e
o"0ecti!es for each stage of the communications continuum/
ome of the stages can sometimes occur simu#taneous#y and=or instantaneous#y2 as in the case of an
impu#se purchase/ Buyers can a#so a!oid mo!ing in a straight #ine or hierarchy of stages .hen
making a more considered purchase 8extending pro"#em so#!ing9/ >or examp#e2 during the
e!a#uation stages a potentia# "uyer may go "ack to the information stage to o"tain more information
"efore making a decision to "uy/ %ach hierarchica# mode# rea##y re1uires a #oop form the 3#ast4 stage
up to the first stage to sho. that the sa#es 8action9 is not the end stage2 "ut rather the "eginning of an
ongoing dia#ogue that nurtures a re#ationship and a report "uying process/
Idea##y2 these mode#s shou#d a##o. for these and other #oops "y 3message decay4 8or forgetting92
changes in attitudes2 competiti!e distractions2 etc/ the mode#s a#so ignore the mind4s of >ish"en et a#
and the 3comp#ex mode#s4 of Do.ard and heth2 and %nge#2 B#ack.e## and Mo##att 81'$,9/ The
comp#ex mode#s2 do2 in fact2 a##o. for "oth #oops and the comp#exities of the inter!ening !aria"#es/
Three types of mode#2 3"#ack "ox42 3persona# !aria"#e4 and 3comp#ex42 .i## no. "e conspired "rief#y/
B#ack "ox mode#s consider externa# !aria"#es that acts as stimu#i 8such as price2 shops2 merchandise2
ad!ertisements2 promotions and the socia# en!ironment inc#uding fami#ies and friends9 and response
such as sa#es/ (ersona# !aria"#e mode#s focus on some of the interna# psycho#ogica# !aria"#es such as
attitudes and "e#iefs/ The comp#ex mode#s attempt to inc#ude "oth the interna# and externa# !aria"#es
<4
in one grand mode#/ To some this pro!es impossi"#e/ &s +ordon >oxa## 81''29 pointed out2 3no one
mode# can capture human nature in its entirety? nor can a handfu# of theoretica# perspecti!es em"race
the scope of human interaction4/
Black Box Models
The "eha!iourists4 schoo# of psycho#ogy concentrates on ho. respond to stimu#i/ It is not concerned
.ith the comp#ex range in eterna# and externa# factors that affect the "eha!iour/ The comp#exities of
the mind are #eft #ocked up in a 3"#ack "ox4/ The resu#ting stimu#us response mode#s ignore the
comp#exities of the mind 8inc#uding the inter!ening !aria"#es such as perception2 moti!ation2
attitudes etc9 and focus on the input or stimu#us2 e/g/ ad!ertising2 and the output2 e/g/ purchase
"eha!iour/ & c#assica# approach to stimu#us response mode#s is considered in #earning4/ The figure
"e#o. sho.s a "#ack "ox mode#/
Figure 3: Black-Box Model
&s 5i##iams 81','9 says7 3"#ack "ox treat the indi!idua# and his physio#ogica# and psycho#ogica#
make up as an impenetra"#e "#ack "ox4/ An#y6 the inputs and outputs are measured/ &ny interna#
menta# processes 8the inter!ening processes9 that cannot "e measured are ignored/
The "#ack "ox approach considers on#y the inputs and outputs/ Carefu# ana#ysis under contro##ed
tests 8using sophisticated computer mode#s9 can re!ea# the optimum price2 the optimum #e!e# of
ad!ertising and so on/
Personal Variable Models
These mode#s take a g#impse the "#ack "ox of the mind/ The mode#s on#y in!o#!e a fe. persona#
!aria"#es such as "e#iefs2 attitudes and intentions/
These kinds of mode# are sometimes used .ithin more comp#ex mode#s/ Three types of persona#
!aria"#e mode#s 3#inear additi!e42 thresho#d4 and 3trade off4 are "rief#y considered "e#o./
<<
timu#us !aria"#es
8Inputs9
Inter!ening !aria"#es
8B#ack "ox9
@esponse !aria"#es
8outputs9
Linear Additive Models
)inear additi!e mode#s #ike that of >ish"ein are "ased on the um"er of attri"utes a particu#ar product
or ser!ice has2 mu#tip#ied "y the score each attri"ute is percei!ed to ha!e2 mu#tip#ied "y the
.eighting .hich each attri"ute is deemed to ha!e/ This mode# opens up attitudes "y indicating .hich
attri"utes are considered to "e important to the customer and ho. each attri"ute the customer scores/
&ttitudes are not a#.ays trans#ated into purchasing "eha!iour/ %!en intentions are not a#.ays
trans#ated into action/ Ce!erthe#ess2 marketing strategies can "e "ui#t around changing "e#iefs a"out
attri"utes2 and a#tering their e!a#uation or scores/
Threshold Models
Most purchases ha!e cut off points or thresho#ds "eyond .hich the "uyer .i## not !enture/ It may "e
price or some particu#ar feature that a product or ser!ice must ha!e 8or must not ha!e in the case of
some en!ironmenta##y damaging ingredients9 if it is to "e considered at a##/ Dere2 the "uyer has a
se#ection process that screens and accepts those products or ser!ices .ithin the thresho#d for either
further ana#ysis or immediate purchase/ Those "eyond the thresho#d are re0ected and .i## not "e
considered any further/
Trade off Models
Buyers genera##y ha!e .ide array of choices2 many .ith different types and amounts of attri"utes/ &
trade off occurs .hen the "uyer accepts a product that is #acking in one attri"ute "ut strong in
another/ & sort of compensatory mechanism emerges/ 5hen "uying a car2 engine si;e and price can
"e traded off against each other2 e/g/ a "igger engine means a .orse price 8higher price9/ & num"er of
com"inations of price and engine si;e can "e researched to find the !a#ue or 3uti#ity4 for different
prices and engine si;es/
Complex Models
The cogniti!e schoo# attempts to open the #id and #ook inside the mind4s "#ack "ox/ Dere more
comp#ex "uying mode#s/ )ike that of Do.ard and heth 81'6'92 try to incorporate into the
hierarchica# communication mode#s the inter!ening !aria"#es of perception2 moti!ating2 #earning2
memory2 attitudes2 "e#iefs2 group inf#uence2 etc? in fact2 a#most e!erything inside the mind/
<6
Howard and Sheth
& simp#ified !ersion of Do.ard and heth4s comp#ex mode# di!ides the "#ack "ox into perceptua#
constructs and #earning constructs/ The exogenous !aria"#es are externa# to this mode# and inc#ude
persona#ity traits2 socia# c#ass2 financia# status2 the socia#=organi;ationa# setting and e!en the
importance of the purchase to the indi!idua#/
The comp#ete comp#ex mode# inc#udes perception2 #earning2 attitudes and moti!ation/ timu#us
am"iguity imp#ies information to make a decision/ (erceptua# "ias "asica##y means that there is a
certain amount of distortion in the .ay that an indi!idua# percei!es a stimu#us/
This comp#ex mode# has "een critici;ed for #acking a c#ear definition of the re#ationship of the
re#ationships "et.een some of the !aria"#es and for a #ack of distinction "et.een the endogenous
!aria"#es 8.ithin the mode#9 and exogenous !aria"#es 8externa# to the mode#9/ The mode# is2 for
many readers2 difficu#t to understand and2 for many practitioners2 impossi"#e to use/ Ce!erthe#ess it
does pro!ide a usefu# insight into the possi"#e .orkings of the mind/
The remainder of this chapter #ooks at some of the inf#uencing !aria"#es such as perception2 #earning2
moti!ation2 !a#ues2 attitudes and #ifesty#es2 and considers ho. an understanding of them he#ps to
make more effecti!e marketing communications/
The Intervening Variables
Perception
(erception means the .ay stimu#i2 such as commercia# messages2 ad!ertisements2 packaging2 shops2
uniform2 etc are interpreted/ Messages and images are not a#.ays percei!ed in the manner intended
"y the ad!ertiser/ &s Chisna## 81',<9 says7 3our perceptua# system has a tendency or organi;e2
modify and distort information reaching it/4 (erception is se#ecti!e/ 5e see .hat .e .ant to see/
The Smoker
Dere4s simp#e test/ &sk a smoker to reca## exact#y .hat the hea#th .arning says on the side of their
packet of cigarettes/ >e. .i## "e a"#e to te## you the exact .orse/ This is "ecause .e a## se#ecti!e#y
screen out messages or stimu#i that may cause discomfort2 tension or 3cogniti!e dissonance4/ Image
<$
that the smoker a##o.s the message 8.arning9 to "e percei!ed/ This .i## cause discomfort e!ery time
a cigarette is taken2 since the "ox gi!e the smoker an unp#easant message/ In order to reduce this
tension2 the smoker has t.o options7 8a9 change "eha!iour 8stop smoking9 or 8"9 screen out the
message and continue the "eha!iour 8smoking9/
Many stimu#i are screened out "y the perceptua# system2 .hich2 it is estimated2 is hit "y "et.een <00
and 12<00 different ad!ertisements a day/ The next examp#e sho.s ho. preferences and moti!ations
affect perception/
o perceptions are "iased "y our under#ying moti!ations/ Take this examp#e from Dong Mong .here
in 1''$ china regained contro# o!er this former British co#ony/ The committee responsi"#e for
ce#e"rating the resumption of Chinese so!ereignty chose the .hite do#phin as its sym"o#/ & British
ne.spaper2 the independent2 pointed out that his century/ The committee a#so chose to p#ace it
a#ongside the ne. sym"o# for the future specia# &dministrati!e @egion of Dong Mong2 the Bauhina
f#o.er2 .hich2 reported the ne.spaper2 .as a steri#e hy"rid that produces no seed/ The ne.spaper
percei!ed Dong Mong to "e marching into the future under the sym"o#s of an endangered species
and steri#ity/ The Dong Mong committee sa. the friend#y do#phin as appea#ing to differ !ast#y e!en
o!er the same sym"o# or stimu#us/ (erceptions can !ary e!en .ithin the same region/ & 6M TH
ad!ertisements for 6ni#e!er4s (ersi# .ashing po.der sho.ed a -a#matian shaking off its "#ack
spots2 a .hite horse "reaking a.ay from "#ack horses and a skater dressed "eing racist/ -espite the
ad!ertisements ha!ing "een tested .ith &fro*Cari""ean .omen "efore going on air2 the ITC
8Independent Te#e!ision Commission9 recei!ed 32 comp#aints/
Before perception occurs2 attention has to "e gained "y2 say2 the ad!ertiser/ &s 5i##iams 81','9 says
interests2 needs and moti!es determine 3not on#y .hat .i## arouse attention2 "ut a#so .hat .i## ho#d
it4/ >or examp#e2 ad!ertisements for a ne. house are ignored "y the mass popu#ation/
But there is a sector of the popu#ation that is acti!e#y #ooking for house this sector has a need for a
ne. house and it is therefore recepti!e to any of these ad!ertisements/ Indi!idua# form this sector
positi!e#y se#ect information re#e!ant to their needs/ This is kno.n as 3se#ecti!e attention4/
There are a#so certain physica# properties that increase the #ike#ihood of message gaining attention7
intensity and si;e? position? sound? co#our? contrast? and mo!ement 8eyes are in!o#untari#y attracted
to mo!ement "ecause of the "ody4s instincti!e defence mechanism9/ +i!en that an indi!idua#4s
<,
attention is constant#y ca##ed upon "y ne. stimu#i2 repetition can enhance the #ike#ihood of a
message getting through/ Co!e#ty can a#so "e sued to a0ar expectations and gra" attention/
(ercei!ed differences in "rands are not necessari#y dependent on rea# differences 8in either function
or form9/ &s Chinssa## 81',<9 says7 3Consumers e!a#uate products against the "ackground to their
experiences2 expectations and associations/ (erception is se#dom an o"0ecti!e2 scientific assessment
of the comparati!e !a#ues of competing "rands/
&n understanding of the .ay our perceptua# system organi;es information has he#ped some "rand
ad!ertisers to exp#oit perceptua# systems through an understanding of gesta#t psycho#ogy/ +esta#t
means 3tota# figuration4/ Ane of the four "asic perceptua# organi;ing techni1ues form the gesta#t
schoo# is 3c#osure4/ &n indi!idua# stri!es to make sense of incomp#ete messages "y fi##ing in the gaps
or shaping the image so that it can fit comforta"#y into his cogniti!e set 8or set of kno.#edge9/
Mar#"oro4s2 3M&@)4 ad!ertisements and Mit*Mat4s 3Mit4 ad!ertisements p#ay on the need to fi## in
these gaps/ This may happen so fast that the !ie.er is not a.are of .hat is going on inside to the
comp#ete image is !isi"#e on#y inside our head/ %ffecti!e#y2 the mind momentari#y "ecomes the
medium2 since the comp#ete image/ In a sense our head2 .hi#e the externa# ad!ertisement sho.s the
incomp#ete stimu#us/ The natura# perceptua# tendency to.ards 3c#osure4 comp#etes the
ad!ertisement4s image inside the audience4s mind/
(erception is a#so inextrica"#y #inked .ith past experiences2 moti!ation2 "e#iefs2 attitudes and the
a"i#ity to #earn/
<'
Evaluating marketing communications activities
6nderstanding communications effecti!eness
Table 1: Communications are designed to meet three objectives
&.areness Increase "rand a.areness and esta"#ish "rand recognition
Tria# timu#ate tria# purchase
@einforcement timu#ate and reinforce "rand #oya#ty
To succeed in achie!ing these goa#s2 communications must7
+ain attention
Communicate a message
A"tain the audience4s #iking for the message and its execution
There are t.o e#ements to ht e!a#uation of the effecti!eness of marketing communications
campaigns
-e!e#oping and testing the message themse#!es7 guidance through pre*testing
Measuring the o!era## impact and effect of the message7 1uantitati!e e!a#uation after the campaign
8post testing9
60
3: Managing the Marketing
The difficu#t part is measuring the effecti!eness of the marketing communications process/ The
fo##o.ing are some possi"#e techni1ues/
Table 2:
Marketing communications methods %xamp#es of measurements
(ersona# se##ing a#es targets? producti!ity2 costs
(u"#ic re#ations %ditoria# co!erage? a.areness? opinions
-irect marketing %n1uiries generated
&d!ertising Brand a.areness
a#es promotion tock turno!er
%xhi"itions Contact made
An#ine communications 3c#ick*thoughts4
The fo##o.ing ta"#e sho.s possi"#e ad!ertising effecti!eness and contro# methods/
Table 3: Classification of advertising effectiveness measures
Type of measure &d!ertising re#ated (roduct re#ated
)a"oratory measures
8@espondent a.are of testing9
(retesting pane#s
Consumer pane#s
(ortfo#io tests
@eada"i#ity tests
(hysio#ogica# measure e/g/ eye
tracking
(retesting
Theatre tests
Da## tests
)a"oratory tests
@ea# .or#d measures (retesting
61
8@espondent una.are of
testing9
-ummy ad!ertising
In1uiry tests
An air tests
(ost testing
@ecognition
@eca## tests
&ssociation measure
Consumer communication case studies
The cases used here are presented in a format2 .hich .ou#d pro!ide a frame.ork for marketing
communication p#anning7
ituation ana#ysis
Communications o"0ecti!es
Marketing communications strategy
Communications tactics : promotiona# mix
&ction : imp#ementation
Contro# : measurement and e!a#uation
Business-to-Business Strategies
&#though the princip#es of marketing communications are the same for "oth consumer and industria#
markets2 there are significant differences in the detai#s of ho. promotion is carried out/
In particu#ar2 the targets in industria# markets are usua##y more specific and promotiona# "udgets are
usua##y more #imited/ In order to understand these differences it is !a#ua"#e to #ook again at the ma0or
differences "et.een industria# 8or "usiness9 marketing and consumer marketing/
62
Table 4: Major differences between industrial and consumer marketing
&rea Industria# marketing Consumer marketing
(urchase moti!ation Mu#tip#e "uying inf#uences
support company operations
Indi!idua# or fami#y need
Cature of demand -eri!ed or 0oint demand (rimary demand
%mphasis of se##er %conomic needs Immediate satisfaction
Customer needs %ach customer has different
needs
+roup .ith simi#ar needs
Cature of "uyer +roup decisions (urchase "y indi!idua# or
fami#y unit
Time effects )ong term re#ationships hort term re#ationships
(roduct detai#s Technica##y sophisticated )o.er technica# content
(romotion decisions %mphasis on persona# se##ing %mphasis on mass media
ad!ertising
(rice decisions (rice determined "efore terms
are important
(rice su"stantia##y fixed
discounts are important
(#ace decisions )imited num"ers of #arger
"uyers2 short channe#s
)arge num"er of sma## "uyers
comp#ex channe#s
Customer ser!ice Critica# to success )ess important
)ega# factors Contractua# arrangements Contracts on#y on ma0or
purchases
%n!ironmenta# factors &ffect sa#es "oth direct#y and
indirect#y
&ffect demand direct#y

Business Decision-Making Process
(erhaps the most significant differences are the nature of the "uying moti!ation and the #inked nature
of the "uying decision process/ In industria# "uying there are many moti!ations/ These stem part#y
form the technica# use of the product "ut a#so from financia#2 security of supp#y2 and2 to a #esser
degree2 emotiona# reasons/
Table 5: Decision makers and buying motivation
63
-ecision makers Buying moti!ation
Aperationa# manager 6ses the product in the organi;ation4s processes : .ants efficiency
and effecti!eness
Technica# manager Aften has to test and appro!e the product : .ants re#ia"i#ity
The managing director May appro!e ma0or expenditure or change of supp#ier
The purchasing manager &ppro!es conditions of purchase
Monitors supp#ier performance
)ega# manager -ra.s up or appro!es #ega# contracts .ith supp#ier
>inance manager &ppro!es expenditure and contro#s de"t payment
Dea#th and safety manager May ha!e a ro#e to p#ay .ith ha;ardous supp#ies
Implications for marketing communications strategy
It .i## "e o"!ious that marketing communications strategy for industria# marketing must ref#ect this
considera"#y more comp#ex decision*making process/
Strategic Importance
Business or industria# marketing can "e regarded as in!o#!ing more strategic decision in its
imp#ementation/ Consumer products2 "y definition2 are mass*market products often purchased in a
routine and ha"itua# manner/ This is un#ike#y to "e the case in industria# marketing/ Business
customers ha!e differing needs and in some cases these needs may "e conf#icting .ithin the
organi;ation/ Identifying "usiness is comp#icated "y ha!ing to dea# .ith different decision makers
.ithin the company/
Impact of Time
The #ength of time in!o#!ed for the purchase e!a#uation and for the #ife of the product is much
greater industria# markets/ Consumers often make "uying decisions on the spur of the moment/
Industria# "uying decisions may take o!er one year/ This them a#ters "oth the type of marketing
communications and the re#ationships "et.een the "uying and se##ing organi;ations/
Buying Organization
Business "uyers ha!e se!era# different methods of organi;ing purchasing and this can affect
communication strategy/ ome firms purchase on a high#y centra#i;ed "asis/ This a##o.s for
maximum price ad!antage and negotiation strength "ecause of economies of sca#e/ Ather
organi;ations a##o. decentra#i;ed purchases2 .hich #eads to #oca# needs "eing "etter met/ In these
64
cases2 t.o different forms of se##ing organi;ation are needed and the communication strategy needed
to reach the right person .i## "e different in each case/
Variety of Products and Services
The !ariety of products in "usiness markets is extreme#y #arge/ Business products !ary form product
inputs to items for resa#e/ They can "e "roken do.n into three main types/
Capita# e1uipment 8ma0or purchases of fixed assets9
(roduct inputs 8"ecoming part of the "uyer4s process9
Business supp#ies=ser!ices 8on*going use "y the "uyer9
&gain2 each type of purchase .i## need a different communications strategy/
The Business-to-Business Communications Mix
The chart "e#o. sho.s the re#ati!e importance of differing e#ements of the promotiona# mix "et.een
consumer and industria# markets/ These differences are ref#ected in de!e#oping marketing
communication strategies for industria# markets/
Figure 4: Relative importance of the promotional element
Digh
6<
&d!ertising (ersona# se##ing
-irect*marketing

(u"#ic re#ations
)o.
Consumer markets Business*to*"usiness markets
Relative Importance of Promotional Elements
The c#earest difference is the importance of persona# se##ing in industria# markets "ecause of the
comp#exity of the decision*making process2 the differing process2 the differing industria# needs and
the higher !a#ue of indi!idua# purchases/ &d!ertising though sti## important in industria# marketing2
is #ess so than for consumer marketing/
The diagram a#so sho.s that "oth pu"#ic re#ations and direct marketing ha!e important continuing
ro#es in "oth consumer and industria# marketing/ It is c#ear from the a"o!e #ist that the methods to
communicate .ith industria# markets .i## "e of a much greater !ariety than for consumer markets/
This in turn means that industria# marketing decisions can "e rea##y cha##enging and the need for
effecti!e co*coordinated marketing communications is important/
66
Table 6: The range of promotional methods is described below.
Method Comment
(ersona# se##ing This is a ma0or component of industria# marketing "ecause of the need to
dea# .ith technica# and other issues on a face*to*face "asis/
Interna# se##ing Increasing#y it is recogni;ed that a sa#esperson has an interna# ro#e to p#ay
in representing his customer4s needs to the company
Internet The use of the internet for e*commerce is perhaps more high#y de!e#oped
in industria# marketing than in the consumer sector/ &d!ertising and
on#ine cata#ogues are 0ust t.o of the .ays that it can "e used/ Many
companies ha!e a#so set up e#ectronic #inks .ith supp#iers and customers
for such functions as automatic ordering/
&d!ertising & .ide !ariety of pu"#ications exist .hich can "e used to target
indi!idua# market sectors inc#uding7
Trade 0ourna#s
Business press
-irectories
&d!ertising is used to create a.areness2 pro!ide information2 generate
#eads2 assist channe# mem"ers and sometimes to se## off the page
Te#emarketing Te#emarketing has "een pro!ed to "e a !ery cost effecti!e method of
order processing2 customer ser!ice2 sa#es support and account
management
-irect mai#ing Industria# marketers ha!e used direct mai#? another form of direct
6$
marketing2 for a #ong time "ut its use has su"stantia##y increased/ It can "e
used to pro!ide information and generate en1uiries/ It can "e tai#ored to
indi!idua# customer needs/
(u"#ic re#ations ometimes in industria# markets this is referred to as pu"#icity/ It often
focuses on getting editoria# co!erage in appropriate maga;ines "ut it has a
.ider ro#e of "ui#ding customer re#ations/
a#es promotion a#es promotion is an important area of communication in industria#
markets/ There are a .ide range of methods that are of .e## esta"#ished
use in industria# campaigns/
)iterature
Hideos
%!ents
Trade sho.s
%xhi"itions
-iscounting
Business gifts
Technica# #iterature is c#ear#y important in specifying the product/
Comp#icated e1uipment can "e captured on !ideo and app#ications
sho.n/ Trade sho.s and exhi"itions continue to gro. in importance/
-iscounting and specia# price promotions are used extensi!e#y in
industria# markets/ Business gifts continue to ha!e their !a#ue if not used
excessi!e#y
%!a#uating the effecti!eness of persona# se##ing
This hinges around measuring the inputs made 8the effort and costs "y the sa#es force9 against the
outputs achie!ed/ The key measure2 producti!ity2 is the ratio of inputs to outputs/ Increasing
emphasis is a#so "eing p#aced upon the profita"i#ity of each sa#esperson/
&cti!ities
a#es ca##s
(resentation made these can "e measured against
6,
%xpenses organi;ationa# standards
Cost of samp#es
Time taken
Mno.#edge and ski##s inputs
-epth of product kno.#edge
(resentation ski##s #ess easi#y e!a#uated2 "ut !ery
Customer re#ationships important 8and #ike#y to "ecome more so9
Market kno.#edge
@atios are often used to measure the performance and producti!ity of a sa#esperson or the sa#es force
as a .ho#e/ They can a#so "e used to "enchmark against industry standards/
Table 7
Type of ratio %xamp#es
%xpense ratios %xpenses
a#es?
Costs
Cum"er of ca##s
er!icing ratios a#es !a#ue
Cum"er of orders?
Ce. accounts
Tota# accounts
&cti!ity ratios Cum"er of orders
Cum"er of ca##s?
Cum"er of ca##s
Cum"er of .eeks
Marketing communications for service organizations
The promotions of goods and ser!ices ha!e many simi#arities/ 5e do not need to discriminate
"et.een the t.o .hen considering7
The ro#e of promotion in meeting marketing o"0ecti!es
The need to design effecti!e promotions
The manageria# cha##enge of efficient imp#ementation
The "road choice of methods and media
The agencies a!ai#a"#e to support promotion
6'
(romotiona# o"0ecti!es for ser!ices are re#ated to those for products2 as the fo##o.ing examp#es
sho./
Bui#d a.areness and interest in the ser!ice and the ser!ice organi;ation
Communicate and portray the "enefits of the ser!ice a!ai#a"#e
Bui#d and maintain the o!era## image and reputation of the ser!ice organi;ation
&d!ise customers of ne. channe#s
&d!ise customers of specia# offers or modifications to the ser!ice
(ersuade customers to use or "uy the ser!ice
In spite of these simi#arities there are significant differences caused "y the specia# nature of ser!ices/
+ronroos2 a .edish .riter on ser!ice marketing2 dra.s attention to some of the comp#exity in the
diagram "e#o. demonstrating ser!ice re#ationships/
In ser!ice markets there are four e#ements of the ser!ice that need to "e taken into account in
p#anning/
The core ser!ice concept and any auxi#iary ser!ice/
The accessi"i#ity of the ser!ice
The interacti!e communications that take p#ace in de#i!ering the ser!ice
The inf#uence of the consumer and other consumers recei!ing the ser!ice
>our promotiona# methods are then used to inf#uence the customer
Traditiona# se##ing
&d!ertising and direct marketing
(u"#ic re#ations and sa#es promotions
The communication aspects of pricing po#icy
Figure 5: Model of services communication
$0
Traditiona# se##ing corporate image (@ sa#es
(romotion
Communication
By pricing po#icy
&d!ertising and
-irect
Marketing
Marketing needs
1/ The ser!ice concept
4/ Consumer inf#uence 2/ &ccessi"i#ity
of the ser!ice
3/ Interacti!e
communication
s
There are differences in promotion necessitated "y the characteristics of ser!ice industries and
ser!ices companies/
Table 8
Characteristics Conse1uences
)ack of market orientation Managers are untained2 unski##ed and una.are of the ro#e of
promotion
(rofessiona# and ethica#
constraints
(#aces #imitations of certain promotion methods/ ometimes #ega#
restrictions
ma## sca#e of many ser!ice
organi;ations
)imits si;e of promotion "udgets
Cature of capacity a!ai#a"#e Capacity for de#i!ering the ser!ice may "e #imited/ (romotion may
produce too much demand
&ttitude to promotion )imited kno.#edge of and attitude to .ide range of promotion
$1
methods method
Table 9: The marketing of services
Characteristics Conse1uences
Cature of the ser!ice er!ices may "e specific2 .hich exc#udes mass ad!ertising
Consumer attitudes Consumers may re#y on su"0ecti!e 0udgement made at the point of ser!ice
de#i!ery
Buying process The need to de!e#op a professiona# re#ationship .ith the ser!ice pro!ider
makes customer care important
These differences #ead to a num"er of guide#ines that must "e considered .hen designing
communication campaigns for ser!ice markets/
6se c#ear unam"iguous messages to communicate the range2 depth2 1ua#ity and #e!e# of ser!ices
%mphasi;e the "enefits of the ser!ice rather than their technica# detai#s
An#y promise .hat can "e de#i!ered2 to a!oid disappointment
&d!ertise to emp#oyees2 as they are particu#ar#y important in many peop#e*intensi!e ser!ices
A"tain maximum customer co*operation in the ser!ice production process as the ser!ice is often an
interacti!e system
Bui#d on .ord of mouth communication form one satisfied customer to another
(ro!ide tangi"#e e!idence to strengthen promotiona# messages/ 6se .e## kno.s persona#ities to
support the messages/
-e!e#op continuity in promotion "y the use consistent and continuous sym"o#s2 themes2 formats or
images
@emo!e post purchase anxiety "y reassuring the "uyer of the soundness of choice2 especia##y .here
there is no tangi"#e product
(ersona# se##ing "ecomes more important in the promotion of ser!ices as the fo##o.ing ta"#e sho.s
Table 10: Differences between selling goods and services
Issue Comment
Customer4s purchase Customers !ie. ser!ice as ha!ing #ess consistent 1ua#ity
$2
perception of
ser!ices
er!ice purchasers ha!e higher risks
er!ice purchasing is #ess p#easant
5hen ser!ices are "ought greater consideration is gi!en to the particu#ar
sa#esperson
(erception of the ser!ice company is an important factor .hen deciding to
"uy a ser!ice
Customer4s purchase
"eha!ior .ith
ser!ices
Customers may do fe.er price comparisons .ith ser!ices
Customers gi!e greater consideration to the particu#ar se##er of ser!ices
Customers are #ess #ike#y to "e inf#uenced "y ad!ertising and more "y
persona# recommendations
(ersona# se##ing of
ser!ices
Customer in!o#!ement is greater
Customer satisfaction is inf#uenced "y the sa#esperson4s persona#ity and
attitude
a#espeop#e may ha!e to spend more time reducing customer uncertainty
Marketing Communications for Non Profit Organizations
The ma0or princip#es of marketing communications for non*profit organi;ations are the same as for
consumer and industria# marketing/ There are2 ho.e!er2 considera"#e differences of emphasis/ The
sum of money a!ai#a"#e for organi;ed communication may "e #ess/ (u"#ic scrutiny of po#icies may
"e higher/
&#most certain#y there .i## "e a different set of communication o"0ecti!es/
Making target customers a.are of a product2 ser!ice or socia# "eha!iour
%ducating consumers a"out the offer or changes in the offer
Changing "e#iefs a"out negati!e and positi!e conse1uences of taking a particu#ar action
Changing the re#ati!e importance of particu#ar conse1uences
%n#isting the support of a !ariety of indi!idua#s
@ecruiting moti!ating or re.arding emp#oyees or !o#unteers
Changing perceptions a"out the sponsoring organi;ation
Inf#uencing go!ernment "odies
(re!enting the discontinuity of support
$3
(ro!iding "enefits o!er 3competitor4s
Com"ating in0urious rumours
Inf#uencing funding agencies
Ance the non*profit marketer has de!e#oped the "road o"0ecti!es for the communications p#an the
next step is to decide specific messages/ These messages may "e de!e#oped .ithin one of the three
frame.orks/
Rational, emotional and moral framework
@ationa# messages pass on information and ser!e the audience4s se#f interest/ >or examp#e messages
a"out !a#ue2 economy or "enefits
%motiona# messages are designed to de!e#op emotion to shape the desired "eha!ior/ >or examp#e
.ith fear2 gui#t2 shame appea#s to stop doing things #ike smoking2 drinking2 taking drugs or
o!ereating/
Mora# messages directed at the audience4s sense of right or .rong/ >or examp#e2 to support a c#eaner
en!ironment or e1ua# rights or he#p the under*pri!i#eged/
Reward and situation framework
There may "e four types of re.ard7 rationa#2 sensory2 socia# or ego satisfaction re.ards
@e.ards may resu#t direct#y from use2 or indirect#y form the products in use2 or "e incidenta# to use/
>or examp#e2 think a"out the !arious re.ards offered "y cars .ith cata#ytic con!erters/
Attitude change framework
Changes in the importance of one or more outcomes
Changes in the "e#iefs a"out one or more outcomes
&dding ne. positi!e outcomes
Da!ing decided .hat messages to transmit it is then necessary to decide the sty#e of promotiona#
execution/ The fo##o.ing sty#es are appropriate for consumer goods ad!ertising "ut can easi#y "e
adopted for non*profit organi;ations/
$4
Table 11: Health Education
ty#es %xecution
#ice of #ife >ami#y doing hea#thy acti!ities throughout the day
)ife*sty#e >ather and daughter of 0ogging ear#y in morning
>antasy -ream of .inning a marathon
Mood %xercises in a fie#d of .i#d f#o.ers
Musica# %xercises to modern music
(ersona#ities 6sing a .e## kno.n successfu# sports persona#ity
Technica# expertise Euoting performance capa"i#ity in exercises
cientific e!idence ho.ing the "enefits of #ess i##ness and greater #onge!ity
Testimonia# e!idence Mem"ers of the pu"#ic gi!e !ie.s on "enefits
Table 12: How marketers of non-profit organizations can reach target audiences
Method Comment
(aid ad!ertising Con*profit organi;ations may ha!e #imited funds "ut his can sti## "e an
effecti!e route e!en on #o. "udgets2 as the sa!e the chi#dren fund
campaign sho.ed/ &#ternati!e#y o"taining commercia# sponsorship
may "oost the "udget/
6npaid 8pu"#ic ser!ice9
ad!ertising
Media o.ners may pro!ide airtime or press space on a free of charge
"asis as a pu"#ic/ Do.e!er2 there is #itt#e contro# o!er this and the time
or spaces may occur at unpopu#ar times or p#aces
a#es promotions hort*term incenti!es to encourage purchases or donations/ Market
contro# is strong and promotions are often ne.s.orthy 8for examp#e2
$<
@ed Cose day or (oppy day promotions9
(u"#ic re#ations Many of the stories of non*profit organi;ations are of considera"#e
interest/ They may feature in the press or the "roadcast media/ Contro#
o!er the message is good and feed"ack is possi"#e
(ersona# se##ing and
communication
taff at a## #e!e#s of the non*profit organi;ations shou#d "e trained in
persona# communications/ They .i## often ha!e the opportunity to 3se##4
to their supporters and possi"#e "enefactors/
Categories of non*profit communications inc#ude the fo##o.ing7
(o#itica# part#y communications
ocia# cause communications
Charita"#e communications
+o!ernment communications
@e#igious communication
(rofessiona# "ody communications
Ather pri!ate non*profit communications 8hospita#s2 uni!ersities2 museums and so on9
Direct marketing
This is a medium increasing#y "eing used "y non*profits organi;ations2 particu#ar#y arts foundations
and charities/ It has se!en important ad!antages for non*profit marketers/
It can "e !ery focused for maximum effect on the target market/
It can "e pri!ate and confidentia#/ This is especia##y important .hen dea#ing .ith sensiti!e issues
There is the #ess direct regu#ation on direct mai# promotions/ In the past charita"#e ad!ertising in the
"roadcast media has "een #imited/
Cost per conduct and cost per response is #o. and contro##a"#e2 .hich is important .here funds ha!e
to "e used .ise#y
@esu#ts are c#ear#y measura"#e and can make the programme more accounta"#e
ma##*sca#e tests of proposed strategies are feasi"#e
The effecti!eness of direct marketing can "e assessed in terms of "eha!ior 8i/e/ orders2 donations2
re1uests for mem"ership9/
$6
Behaviour Channels
Con*profit campaigns often ca## for "eha!ioura# changes on the part of the target audience/ It is for
this reason that it is !a#ua"#e to monitor the effecti!eness of such a campaign using a modification of
the hierarchy of effects mode#/ The mode# sho.n "e#o. has "een adapted for a campaign to
encourage the use of contracepti!es to aid fami#y p#anning/
Figure 6: Contraceptive campaign social behaviour change model
M&C&+%M%CT T&M CAC6M%@ B%D&HIA6@
&/ %-6C&TIAC 1
B/ H&)6% CD&C+%
2
3
C/ &TTIT6-% CD&C+% 4
<
6
-/ MATIH&T% TA &CT
$$
6nderstands reproduction
6nderstands contraception
Cot opposed to contraception
Interested in using contraception
&.are of a method
(ercei!es "enefits exceed costs
&.are of .here to ac1uire
$
,
'
%/ T@&IC &C- @%IC>A@C%
10
Module 13 Marketing Communications Strategy 3 Managing the
Marketing
11
Campaign tit#e7 C(CC
Context
Business
The C(CC set up a fi!e*!ision programme to tack#e the pro"#em of chi#d a"use2 head on/ This
programme sought to7
et up an in!estigati!e ser!ice to run in para##e# .ith the po#ice
(romote 1ua#ity parenting
5ork .ith schoo#s and teacher training co##eges
-e!e#op chi#dren*friend#y communities
5ork for cu#tura# and #egis#ati!e change
$,
&c1uires method
Tries method
Continues usage
&dopts correct usage
External
&n independent nationa# commission of en1uiry had reported that chi#d a"use and neg#ect can a#most
a#.ays "e pre!ented2 pro!ided the .i## to do so is there/
Organizational
The financia# resources necessary to imp#ement the fi!e !isions .ere #imited
There .as a strong cu#ture and dri!e to "e successfu#
Customer
+i!ing fatigue2 C(CC fatigue
uspicion concerning raising the standard of parenting
&ttitudes : skepticism at he charity4s am"ition to a"o#ish chi#d a"use=crue#ty
&"use is uni!ersa##y condemned "ut peop#e fee# he#p#ess S they kno. .hat to do and they don4t
think it goes on near them
Stakeholder
Argani;ations .i##ing to "e associated .ith cause re#ated issues2 .hich e1uate to sponsorship and
assistance .ith fund raising/
Promotional objectives
The aim .as to hit e!ery househo#d in the 6M
Corporate to end chi#d a"use
Marketing to raise N2<0 mi##ion in 12 months : donated or p#edged 8norma#
&mount N<0m9
Communication7 to raise a.areness of chi#d crue#ty to persuade peop#e to "ecome in!o#!ed .ith the
cause
Promotional strategy
trong pu## campaign designed to raise a.areness of chi#d crue#ty/ Campaign to "e de#i!ered in t.o
main steps/ The first to de!e#op a.areness and the second step to "e action oriented/
$'
In para##e# there shou#d "e a strategy designed to communicate .ith "usinesses in order to generate
funds2 good.i## and support/
The o!era## profi#e of the organi;ation 8C(CC9 sha## "e raised and communications need to ensure
that the integrity of the organi;ation and those associated .ith it are maintained/ In addition a##
communications need to "e consistent/
(romotiona# mix used to create a dia#ogue .ith the pu"#ic
(u"#ic re#ations
TH2 posters
>ie#d Marketing
-irect Marketing7 -irect Mai#2 Te#emarketing
5e"site
First phase
(u"#ic re#ations .ere used at the initia# stages of the campaign t he#p create a.areness/ (u"#ic
address systems at rai#.ay stations and airports .ere used as a reminder mechanism/
& nationa# TH campaign2 supported "y posters2 "roke soon after the pu"#ic re#ations in order to raise
a.areness and pro!oke the 1uestion .ithin each indi!idua#2 3.hat can I doF4 the message strategy
.as !ery emotiona# and used strong imagery to crate shock and attention/
The hea!y TH campaign #ooked to generate 600 TH@s2 ,<L co!erage at $/1 ATs/ The supporting
poster campaign used 4, sheets on 32<00 sites designed to de#i!er <<L co!erage .ith 21 ATs/
Initia# en1uires to this .a!e of communications .ere hera#ded "y an automated te#emarketing
"ureau/
Second phase
This initia# approach .as fo##o.ed up "y a 23 mi##ion nation.ide doordrop campaign/ The aim .as
to pro!ide the pu"#ic .ith an ans.er to the 1uestion that the ad!ertising had pro!oked2 name#y2 to
sign the p#edge and=or !o#unteer as a donor or fundraiser/
,0
The en!e#ope picked up the TH creati!e treatment2 repeating as a su"dued "ackground motif the
image of nursery .a##paper .ith a teddy "ear co!ering its eyes .ith its pa.s/ -on4t c#ose your eyes t
crue#ty to chi#dren4/
It .as thought that the doordrop #etter addressed as 3-ear Douseho#der4 might offend esta"#ished
donors/ To a!oid this2 1602000 "est donors .ere sent an ear#y .arning #etter in ad!ance of the
campaign "reaking in order to get their support/ &nother mi##ion recei!ed persona# #etters 0ust ahead
of the doordrop/
It .as anticipated that the "u#k of en1uiries .ou#d come from the doordrop action and these .ere to
"e hand#ed through persona# te#emarketing responses 8in"ound9/ The .e"site .as a#so adapted in
order that it .ou#d "e a"#e to accept p#edges/
In addition to this the campaign uti#i;ed a ca##*to*action .eekend .ith !o#unteers staffing 22000 sites
around the country2 inc#uding most city centers2 to remind and raise cash donations/
(romotiona# mix used to communicate .ith "usinesses
Sponsorship
-irect mai#=information pack
Internet
ponsorship dea#s .ere made a!ai#a"#e ena"#ing "usinesses to a#ign themse#!es more c#ose#y .ith
the campaign/ Microsoft ha!e "een c#ose#y in!o#!ed .ith C(CC for a num"er of years and hey
acted as prime mo!ers encouraging other "usinesses to p#edge their support/ Microsoft sponsored the
ad!ertising for the campaign/
Ather sponsorship and cause re#ated marketing packages .ere detai#ed in a Too#kit distri"uted to
other ma0or organi;ations/
-irect mai# .as a#so used to encourage "usiness to make donations and e#ectronic communications
.ere used to promote p#edges on#ine/
,1
8ources7 adopted form +often M 81'''9 JC(CC aims to con!ert a"use anger into cashK2
marketing9/
This campaign sought to dea# .ith on issue that most peop#e choose to ignore/ The am"itious targets
needed an extraordinary marketing communications campaign if it .as to e successfu#/ The
coordinated promotiona# p#an ena"#ed a simp#e yet hard*hitting message to "e con!eyed to a
su"stantia# part of the nation/
It shou#d "e remem"ered that .ithout kno.ing the "udgets made a!ai#a"#e to fund the campaign and
the extent of the contri"ution made "y the "usiness*to*"usiness sector2 it is dou"tfu# .hether a return
on the in!estment .i## "e made kno.n outside of the charity/ Do.e!er2 this shou#d not detract from
.hat is a ma0or contri"ution to the socia# and mora# .e#fare of the nation2 made possi"#e through
astute use of an coordinated marketing communications campaign/
,2

Integrated Marketing Communications
-uring the past se!era# decades2 companies around the .or#d ha!e perfected the art of mass
marketing : se##ing high#y standardi;ed products to masses of customers/ In the process2 they ha!e
de!e#oped effecti!e mass*media ad!ertising techni1ues to support their mass*marketing strategies/
These companies routine#y in!est huge sums of money in the mass media2 reaching tens of mi##ions
of customers .ith a sing#e ad/ Do.e!er2 in the t.enty*first century2 marketing managers face some
ne. marketing communications rea#ities/
The Changing Communications Environment
T.o ma0or factors changing the face of today4s marketing communications/ >irst2 as mass markets
ha!e fragmented2 marketers are shifting a.ay from mass marketing/ More and more2 they are
de!e#oping focused marketing programmes designed to "ui#d c#oser re#ationships .ith customers in
more narro.#y defined micro markets/ econd2 !ast impro!ements in information techno#ogy are
speeding the mo!ement to.ards segmented marketing/ Today4s information techno#ogy he#ps
marketers to keep c#oser track of customer needs : more information is a!ai#a"#e a"out customers at
the indi!idua# and househo#d #e!e#s than e!er "efore/ Ce. techno#ogies a#so pro!ide ne.
communications a!enues for reaching sma##er customer segments .ith more tai#ored messages/
The shift from mass marketing to segmented marketing has had a dramatic impact on marketing
communications/ Bust as mass marketing ga!e rise to a ne. generation of mass media
communications2 so the shift to.ards one*to*one marketing is spa.ning a ne. generation of more
specia#i;ed and high#y targeted communications efforts/
+i!en this ne. communications en!ironment2 marketers must rethink the ro#es of !arious media and
promotion*mix too#s/ Mass*media ad!ertising has #ong dominated the promotion mixes of consumer*
product companies/ >or examp#e2 in 20032 media ad!ertising represented 40/< per cent of g#o"a#
marketing spend2 fo##o.ed "y sa#es promotion 820/< per cent92 (@ and sponsorship 81</4 per cent9
direct mai# 814/0 per cent9 and interacti!e marketing 8$/$ per cent9/ Do.e!er2 a#though te#e!ision2
maga;ines and other mass media remain !ery important2 their dominance is dec#ining/ Companies
are not gi!ing up on mass*media ad!ertising2 "ut are seeking .ays to get "etter !a#ue for money/
,3
>or examp#e2 6ni#e!er4s Comfort @efresh2 a c#othing and fa"ric deodorants spray2 is ad!ertised in the
.omen4s #a!atories of c#u"s and pu"s2 "ecause its target audience of young fema#es2 .ho use it to
remo!e the sme## of cigarette smoke form their c#othing are more #ike#y to "e out partying then
sitting at home .atching te#e!ision for hours at a time/ @efresh a#so sponsors a TH series that
appea#s to young fema#es/ In keeping .ith the assumption that the 30*second TH commercia#2 .hen
the company #aunched comfort easy iron spray2 product demonstrations .ere staged in shopping
ma##s across the country/ 6ni#e!er is a#so increasing its use of outdoor poster ad!ertising in "rand*
"ui#ding campaigns for product #aunches/
Market fragmentation has resulted in media fragmentation : in an exp#osion of more focused
media that "etter match today4s strategies/ Beyond the traditiona# mass*media channe#s2 ad!ertisers
are making increased use of ne.2 high#y targeted media2 ranging from high#y focused specia#ty
maga;ines and ca"#e or sate##ite te#e!ision channe#s to C- cata#ogues and .e"site on the internet2 to
airport kiosks and f#oor deca#s in supermarket ais#es/
Many companies are di!erging marketing spending to interacti!e marketing2 .hich can "e focused
more effecti!e#y on indi!idua# consumer and trade segments/ In a##2 companies are doing #ess
"roadcasting and more narro. casing/
The need for Integrated Marketing Communications
&## too often2 companies fai# to integrate their !arious communications channe#s/ The resu#t is a
hodgepodge of communications to consumers/ Mass*media ad!ertisement say one thing a price
promotion sends a different signa#2 a product #a"e# creates sti## another message2 company sa#es
#iterature says something a#together different2 and the company4s .e"site seems out of sync .ith
e!erything e#se/
The pro"#em is that these communications often come form different company sources/ &d!ertising
message are p#anned and imp#emented "y the ad!ertising department or ad!ertising agency/ a#es
management de!e#ops persona# se##ing communications/ Ather functiona# specia#ists are responsi"#e
for pu"#ic re#ations2 sa#es promotion2 direct marketing on#ine sites and other forms of marketing
communication/
,4
@ecent#y2 such functiona# separation has "een a ma0or pro"#em for many companies and their
Internet communications acti!ities/ Many companies first organi;ed their ne. .e" communications
operations into separate groups or di!isions2 iso#ating them from mainstream marketing acti!ities/
Do.e!er2 a#though some companies ha!e compartmenta#i;ed the ne. communication too#s2
customers may do a "it of .e" surfing to find out a"out companies4 products or ser!ices2 "ut this
does not mean that they no #onger pay attention to TH or maga;ine ads or take any notice of firms4
sa#es promotion campaigns/
To "e sure2 the Internet promises exciting marketing communications potentia#/ Do.e!er2 marketers
trying to use the 5e" a#one to "ui#d "rands face many cha##enges/ Ane #imitations is that the Internet
does not "ui#d mass "rand a.areness/ The .e" simp#y cannot match the impact of 5or#d Cups2
A#ympic games or ix Cations @ug"y2 .here tens of mi##ions of peop#e see the same 30*second
Cokia and Cike ad at the same time/ Instead2 it is #ike ha!ing mi##ions of pri!ate con!ersations/
6sing the 5e"2 it is hard to esta"#ish uni!ersa# meanings : such as 3Cokia Connecting (eop#e4 or
3Bust do it4 that are at the heart of "rand recognition and "rand !a#ue/
Thus2 if treated as a specia# case2 the Internet : or any other marketing communication too# : can "e
a disintegrating force in marketing communications/ Instead2 a## the communication too#s must "e
carefu##y integrated into the "roader marketing communication mix/
In the past2 no one person .as responsi"#e for thinking through the communication ro#es of the
!arious promotion too#s and coordinating the promotion mix/ Mem"ers of !arious departments often
differ in their !ie.s on ho. to sp#it the promotion "udget/ The sa#es manager .ou#d rather hire a fe.
more sa#espeop#e than spend a fe. hundred thousand euros more on a sing#e te#e!ision commercia#/
The pu"#ic re#ations manager fee#s that he or she can do .onders .ith some money shifted from
ad!ertising to pu"#ic re#ations/ Today2 ho.e!er2 more companies are adopting the concept of
integrated marketing communications/ 6nder this concept2 as i##ustrated in the figure "e#o.2 the
company carefu##y integrates and coordinates its many communications channe#s to de#i!er a c#ear2
consistent and compe##ing message a"out the organi;ation and its products/
,<
It "ui#ds a strong "rand identity in the marketp#ace "y trying together and reinforcing a## the
company4s messages2 positioning and images2 and identity2 coordinating these across a## marketing
communications !enues/ It means that your direct mai# campaign2 and your ad!ertising has the same
3#ook and fee#42 as your .e"site/
IMC ca##s for recogni;ing a## contract pints .here the customer may encounter the company2 its
products and its "rands/ %ach "rand contact .i## de#i!er a message2 .hether good2 "ad or indifferent/
The company .orks out the ro#es that the !arious promotiona# too#s .i## p#ay and the extent to .hich
each .i## "e used to de#i!er a consistent and positi!e message at a## contact points/ It carefu##y
coordinates the promotiona# acti!ities and the timing of .hen ma0or campaigns take p#ace/ It keeps
track of its promotiona# expenditures "y product2 promotiona# too#2 product #ife*cyc#e stage and
o"ser!ed effect in order to impro!e future use of the promotion*mix too#s/ >ina##y2 to imp#ement
integrated marketing communications2 some companies appoint a marketing communication director
: or marcom manager : .ho has o!era## responsi"i#ity for the company4s communications efforts/
%ssentia##y2 in order for the firm4s externa# communication to "e integrated effecti!e#y2 it must first
integrate its interna# communications acti!ities/
Integrated marketing communication produce "etter communications consistency and greater sa#es
impact/ They p#ace the responsi"i#ity in someone4s hands : .here none existed "efore : to unify the
company4s image as it is shaped "y thousands of company acti!ities/ They #ead to a tota# marketing
communication strategy aimed at sho.ing ho. the company and its products can he#p customers
so#!e their pro"#ems/
A View of the Communication Process
Integrated marketing communications in!o#!e identifying the target and shaping a .e##*coordinated
promotiona# programme to e#icit the desired audience response/ Too often2 marketing
communications focus on o!ercoming immediate a.areness2 image or preference pro"#ems in the
target market/ This approach to communication is too shortsighted/ Today2 marketers are mo!ing
to.ards !ie.ing communications as managing the customer re#ationship o!er time2 that is2 during
the pre*se##ing consumption and post*consumption stages/
Because customers differ2 communications programmes need to "e de!e#oped for specific segments2
niches and e!en indi!idua#s/ Important#y2 gi!en the ne. interacti!e communications techno#ogies2
,6
companies must ask not on#y 3Do. can .e reach our customersF4 "ut a#so 3Do. can .e find .ays to
#et our customers reach usF4
Thus2 the communication process shou#d start .ith an audit of a## the potentia# interactions that
target customers may ha!e .ith ta#k to others2 see te#e!ision commercia#s2 read artic#es and
ad!ertisements in ne.spapers and maga;ines2 !isit !arious .e"sites and try out computers in one or
more stores/ The marketer needs to assess the inf#uence that each of these communications
experiences .i## ha!e at different stages of the "uying process/ This understanding he#ps marketers
to a##ocate their communication "udget more effecti!e#y and efficient#y/
To Communicate Effectively, Marketers need to understand how Communication Works.
Communication in!o#!es the nine e#ements sho.n in the figure "e#o./ T.o of these e#ements are the
ma0or parties in a communication : the sender and the recei!er/
&nother t.o are the ma0or communication too#s : the message and the media/ >our more are
primary communication functions : encoding2 decoding2 response and feed"ack/ The #ast e#ement is
noise in the system/ 5e .i## exp#ain each of these e#ements using an ad for %ricsson mo"i#e phones/
Figure 7: Integrated marketing communication strategy
,$
Message
Media
Coise
sender %ncoding -ecoding @ecei!er
ender4s fie#d of experience @ecei!er4s fie#d of experience
ender/ The party sending the message to anther party : in this case2 %ricsson/
%ncoding/ The process of putting the intended message or thought into sym"o#ic form : %ricsson4s
ad!ertising agency assem"#es .ords and i##ustrations into an ad!ertisement that .i## con!ey the
intended message/
Message/ The set of .ords pictures or sym"o#s that the sender transmits : the actua# %ricsson mo"i#e
phone ad/
Media/ The communication channe#s through .hich the message mo!es from sender to recei!er : in
this case2 the specific maga;ine that %ricsson se#ects/
-ecoding/ The process "y .hich the recei!er assigns meaning to the sym"o#s encoded "y the sender
: a consumer reads the %ricsson mo"i#e phone ad and interprets the .ords and i##ustrations it
contains/
@ecei!er/ The party recei!ing the message "y another party : the consumer or "usiness customer
.ho reads the %ricsson mo"i#e phone ad/
@esponse/
,,
>eed"ack
@esponse
The reactions of the recei!er after "eing exposed to the message : any of hundreds of possi"#e
responses2 such as the customer is more a.are of the attri"utes of the %ricsson mo"i#e phone2
actua##y "uys the mo"i#e phone ad!ertised2 or does nothing
>eed"ack/ The part of the recei!er4s response communicated "ack to the sender : %ricsson4s research
sho.s that consumers #ike ad remem"er the ad2 or consumers .rite or ca## the company praising or
critici;ing the ad or its products/
Coise/ The unp#anned static or distortion during the communication process2 .hich resu#ts in the
recei!er getting a different message from the one the sender sent : for examp#e2 the customer is
distracted .hi#e reading the maga;ine and misses the %ricsson mo"i#e phone ad or its key points/
>or a message to "e effecti!e2 the sender4s encoding process must mesh .ith the recei!er4s decoding
process/ Thus2 the "est messages consist of .ords and other sym"o#s that are fami#iar to the recei!er/
The more the sender4s fie#d of experience o!er#aps .ith that of the recei!er2 the more effecti!e the
message is #ike#y to "e/ Marketing communicators may not a#.ays share their consumer4s fie#d of
experience/ >or examp#e2 an ad!ertising copy.riter from one socia# stratum might crate an ad for
consumers for another stratum : say2 "#ue*co##ar .orkers or .ea#thy "usiness executi!es/ Do.e!er2
to communicate effecti!e#y2 the marketing communicator must understand the consumer4s fie#d of
experience/
This mode# points out the key factors in good communication/ enders need to kno. .hat audiences
they .ant to reach and .hat responses they .ant/ They must "e good at encoding messages that take
into ho. the target audience decodes them/ They must send channe#s so that they can assess the
audience4s response to the message/
Steps in Developing Effective Communication
5e no. examine the steps in de!e#oping an effecti!e integrated communication and promotion
programme/ The marketing communicator must identify the target audience2 determine the
communication o"0ecti!e2 design a message2 choose the media through .hich to send the message2
and co##ect feed"ack to measure the promotion4s resu#ts/ )et us address each of these steps in turn/
,'
Identifying the Target Audience
& marketing communicator starts .ith a c#ear target audience in mind/ The audience may "e
potentia# "uyers or current users2 those .ho make the "uying decision or those .ho inf#uence it/ The
audience may "e indi!idua#s2 groups2 specia# pu"#ics or the genera# pu"#ic/ The target audience .i##
hea!i#y affect the communicator4s decision on .hat .i## "e said2 ho. it .i## "e said2 .hen it .i## "e
said2 .here it .i## "e said and .ho .i## say it/
Determining Communication Objectives
Ance the target audience has "een defined2 the marketing communicator must decide .hat responses
is sought/ Af course2 in many cases2 the fina# response is purchase/ But purchase is the resu#t of a
#ong process of consumer decision*making/ The marketing communicator needs to kno. .here the
target audience no. stands and to .hat state it needs to "e mo!ed/ To do this2 he or she must
determine .hether or not the customer is ready to "uy/
The target audience may "e in any of six "uyer*readiness stages : the stages that consumers
norma##y pass though on their .ay to making a purchase/ These stages are a.areness2 kno.#edge2
#iking2 preference2 con!iction and purchase/ They can "e descri"ed as a hierarchy of consumer
response stages/ The purpose of marketing communication is to mo!e the customer a#ong the stages
and u#timate#y to achie!e fina# purchase/
Awareness
The marketing communicator4s target market may "e tota##y una.are of the product2 kno. on#y its
name or kno. one or a fe. things a"out it/ If most of the target audience is una.are2 the
communicator tries to "ui#d a.areness2 perhaps starting .ith 0ust name recognition/ This process can
"egin .ith simp#e messages that repeat the company or product name/ >or examp#e2 .hen Arange
introduced its mo"i#e phone net.ork2 it "egan .ith an extensi!e 3teaser4 ad!ertising campaign to
crate name fami#iarity/ Initia# ads for Arange crated curiosity and a.areness "y emphasi;ing the
"rand name2 "ut not the ser!ice/
'0
Figure 8: Buyer readiness stages
Knowledge
The target audience might "e a.are of the existence of the company or of the product2 "ut not kno.
much more/ The company needs to #earn ho. many peop#e in its target audience ha!e #itt#e2 some or
much kno.#edge a"out its offering/ &t #aunch2 Arange ads created kno.#edge "y informing potentia#
"uyers of the company4s ser!ice and inno!ati!e features/
Liking
&ssuming target audience mem"ers kno. the product2 ho. do they fee# a"out itF Ance potentia#
"uyers kne. a"out orange2 the company4s marketers .ou#d .ant to mo!e them a#ong to the next
stage : to de!e#op fa!oura"#e fee#ings a"out the "rand/ If the audience #ooks unfa!oura"#y on the
"rand2 the communicator has to find out .hy2 and then reso#!e the pro"#ems identified "efore
de!e#oping a communications campaign to generate fa!oura"#e fee#ings/
Preference
The target audience might #ike the product2 "ut not prefer it to others/
In this case2 the communicator must try to "ui#d consumer preference "y promoting the product4s
1ua#ity2 !a#ue and their "eneficia# features/ The communicator can check on the campaign4s success
'1
&.areness Mno.#edge )iking
(reference Con!iction (urchase
"y measuring the audience4s preferences again after the campaign/ If orange finds that many
potentia# customers #ike its ser!ice offering "ut prefer other mo"i#e phone operators4 "rands2 it .i##
ha!e to identify those areas .here its offerings are not as good as competing dea#s and .here they
are "etter/ It must them promote its ad!antages to "ui#d preference among prospecti!e c#ients2 .hi#e
redressing its .eaknesses/
Conviction
& target audience might prefer the product2 "ut not de!e#op a con!iction a"out "uying it/ Thus some
customers may prefer orange to other mo"i#e phone net.ork "rands2 "ut may not "e a"so#ute#y sure
that it is .hat they shou#d su"scri"e to/ The communicator4s 0o" is to "ui#d con!iction that the
offering is the "est one for the potentia# "uyer/ & com"ination of the promotion mix too#s shou#d "e
used to create preference and con!iction/ &d!ertising can "e used to exto# the ad!antages offered "y
the "rand/ (ress re#eases and pu"#ic re#ations acti!ities .ou#d "e used to stress the "rand4s specific
features2 such as its inno!ati!eness or performance/
-irect marketing too#s cou#d "e used or dea#er sa#espeop#e cou#d a#so "e encouraged to educate
potentia# "uyers a"out the product or ser!ice options2 !a#ue for the price and after*sa#e ser!ice/
Purchase
>ina##y2 some mem"ers of the target audience might "e con!inced a"out the product2 "ut not 1uite
get around to making the purchase/ (otentia# "uyers might decide to .ait for more information or for
the economy to impro!e/ The communicator must #ead these consumers to take the fina# step/
&ctions might inc#ude offering specia# promotiona# prices2 re"ates or premiums/ a#espeop#e might
ca## or .rite to se#ected customers2 in!iting them to !isit the sa#es out#et for a specia# demonstration
or product tria#/
In discussing "uyer readiness stages2 .e ha!e assumed that "uyers pass through cogniti!e and
"eha!iora# stages2 in that order/ This 3#earn*fee#*do4 se1uence is appropriate .hen "uyers ha!e high
in!o#!ement .ith a product category and percei!e "rands in the category to "e high#y differentiated2
such as the purchase of a car/ But consumers often fo##o. other se1uences/ >or examp#e2 they might
fo##o. a 3do*fee#*#earn4 se1uence for high*in!o#!ement products .ith #itt#e percei!ed differentiation2
such as a centra# heating system/ ti## a third se1uence is the 3#earn*do*fee#4 se1uence2 .here
'2
consumers ha!e #o. in!o#!ement and percei!e #itt#e differentiation2 as is the case .hen they "uy a
product such as sa#t/
>urthermore2 marketing communication a#one cannot crate positi!e fee#ings and purchases for the
product/ o2 for examp#e2 orange must pro!ide superior !a#ue to potentia# "uyers/ In fact2
outstanding marketing communications can actua##y speed the demise of a poor product/ The more
1uick#y potentia# "uyers #earn a"out the poor product2 the faster they "ecome a.are of its fau#ts/
Thus2 good marketing communications ca## for 3good deeds fo##o.ed "y good .ords4/ Conethe#ess2
"y understanding consumers4 "uying stages and their appropriate se1uence2 the marketer can do a
"etter 0o" of p#anning communications/
Designing a Message
Da!ing defined the desired audience response2 the communicator turns to de!e#oping an effecti!e
message/ Idea##y2 the message shou#d get &ttention2 ho#d interest2 arouse -esire and o"tain action/ In
practice fe. messages take the consumer a## the .ay form a.areness to purchase2 "ut the &I-&
frame.ork suggests the desira"#e 1ua#ities of a good message/
In putting the message together2 the marketing communicator must decide .hat to say and ho. to
say it/
Message Content
The communicator has to figure out and appea# or theme that .i## produce the desired response/
There are three types of appea#7 rationa#2 emotiona# and mora#/ @ationa# appea#s re#ate to the
audience4s se#f*interest/ They sho. that the product .i## produce the desired "enefits/ %xamp#es are
messages sho.ing a product4s 1ua#ity2 economy2 !a#ue or performance/ Thus2 in its ads2 Mercedes
offers automo"i#es that are 3engineered #ike no other car in the .or#d42 stressing engineering design2
performance and safety/
'3
%motiona# appea#s attempt to stir up their positi!e or negati!e emotions that can moti!ate purchase/
Communicators may use positi!e emotiona# appea#s such as #o!e2 humor2 pride2 promise of success
and 0oy/
Communicators can a#so use negati!e emotiona# appea#s2 such as fear2 gui#t and shame appea#s in
order to get peop#e to do things they shou#d or to stop doing things they shou#dn4t/ for examp#e2 a
recent Crest ad in!oked mi#d fear .hen it c#aimed 3there are some things you 0ust cant afford to
gam"#e .ith4/ o did Miche#in tyre ads that featured cute "a"ies and suggested 3Because so much is
riding on your tyres4/
Mora# appea#s are directed to the audience4s sense of .hat is 3right4 and 3proper4/ They are often
used to urge peop#e to support socia# causes such as a c#eaner en!ironment2 "etter race re#ations2
e1ua# rights for .omen and aid to the disad!antaged/
Message Structure
The communicator must decide ho. to say it/ This re1uires the communicator to hand#e three
message*structure issues/ The first is .hether to dra. a conc#usion or to #ea!e it to the audience/
%ar#y research sho.ed that dra.ing a conc#usion .as usua##y more effecti!e .here the target
audience is #ess #ike#y to "e moti!ated or may "e incapa"#e of arri!ing at the appropriate conc#usion/
More recent research2 ho.e!er2 suggests that in many cases .here the targets are #ike#y to "e
interested in the product2 the ad!ertiser is "etter off asking 1uestions to stimu#ate in!o#!ement and
moti!ate customers to think a"out the "rand2 and then #etting them come to their o.n conc#usions/
The second message structure issue is .hether to present a one*sided argument2 or a t.o*sided
argument/ 6sua##y2 a one*sided argument is more effecti!e in sa#es presentations : except .hen
audiences are high#y educated or #ike#y to hear opposing c#aims or .hen the communicator has a
negati!e association to o!ercome/ The third message*structure issue is .hether to present the
strongest arguments first or #ast/ (resenting them first gets strong attention2 "ut may #ead to an
antic#imactic ending/
'4
Message Format
The communicator a#so needs a strong format for the message/ In a print ad2 the communicator has
to decide on the head#ine2 copy2 i##ustration and co#our/ To attract attention2 ad!ertisers can use
no!e#ty and contrast2 eye*catching pictures and head#ines2 distincti!e formats2 message si;e and
position2 and co#our2 shape and mo!ement/ If the message is to "e carried o!er the radio2 the
communicator has to choose .ords2 sounds and !oices/ The 3sound4 of an announcer promoting
"anking ser!ices shou#d "e different from one promoting 1ua#ity furniture/
If the message is to "e transmitted on te#e!ision or con!eyed in person2 then a## these e#ements p#us
"ody #anguage ha!e to "e p#anned/ (resenters p#an their facia# expressions2 gestures2 dress2 posture
and e!en hairsty#e/ If the message is carried on the product or its package2 the communicator has to
.atch texture2 scent2 co#our2 si;e and shape/ >or examp#e2 co#our p#ays an important communication
ro#e in food preferences/
Thus2 if coffee company .ants to communicate that its coffee is rich2 it shou#d pro"a"#y use a red
container a#ong .ith #a"e# copy "oasting the coffee4s rich taste/
%!en .hen an indi!idua# is exposed to a message2 he or she may pay no attention to the message
"ecause it is either "oring or irre#e!ant/ The communicator increases the chances of the message
attracting the attention of the target audience "y taking into consideration the fo##o.ing factors7
The message must ha!e a practica# !a#ue to the target audience "ecause indi!idua#s are in the market
for the product/
The message must interest the target group
The message must communicate ne. information a"out the product or "rand/ Consumers pay more
attention to ne. messages/
The message must reinforce or he#p to 0ustify the "uyer4s recent purchase decisions : if you ha!e
recent#y "ought a persona# computer2 it is #ike#y that you .i## notice or your attention .i## "e 1uick#y
dra.n to ads for the (C
The message must "e presented in such a .ay as to make an impact/ &s exp#ained a"o!e2 this
o"0ecti!e can "e achie!ed "y paying attention to message formats and stressing creati!ity in the .ay
the copy2 art.ork=i##ustrations and physica# #ayout or presentation de#i!ered
'<
5hi#e ad!ertisers4 "asic aim is to get their ads noticed2 they must "e sensiti!e to2 and comp#y .ith2
codes of practice operated "y the industry .atchdogs or country regu#ators/ Messages shou#d create
maximum impact "ut .ithout causing pu"#ic offence and irritation/
Choosing Media
The communicator must no. se#ect channe#s of communication/ There are t.o "road types of
communication channe#7 persona# and non*persona#/
Personal Communication Channels
In persona# communication channe#s2 t.o or more peop#e communicate direct#y .ith each other/
They might communicate face*to*face2 o!er the te#ephone or mo"i#e phone2 through the mai# or e!en
through an Internet2 3chat4/ (ersona# communication channe#s are effecti!e "ecause they a##o. for
persona# addressing and feed"ack/
ome persona# communication channe#s are contro##ed direct#y "y the company/ >or examp#e2
sa#espeop#e contact "uyers in the target market/ Ather persona# communications a"out the product
may reach "uyers through channe#s not direct#y contro##ed "y the company/ These might inc#ude
independent experts : consumer ad!ocates2 consumer "uying guides and others : making statements
to target "uyers/ Ar they might "e neigh"ours2 friends2 fami#y mem"ers and associates ta#king to
target "uyers/ This #ast channe#2 kno.n as .ord*of*mouth inf#uence2 has considera"#e effect in many
product areas/
(ersona# inf#uence carries great .eight for products that are expensi!e2 risky or high#y !isi"#e/ >or
examp#e2 "uyers of cars and ma0or app#iances often go "eyond mass*media sources to seek the
opinions of kno.#edgea"#e peop#e/ Companies can take steps to put persona# communications
channe#s to .ork for them/ >or examp#e2 they can create opinion #eaders : peop#e .hose opinions
are sought "y others : "y supp#ying certain peop#e .ith the product on attracti!e terms/ This is a#so
ca##ed "u;; marketing : cu#ti!ating opinion #eaders and getting them to spread information a"out a
product or ser!ice to others in their communities/ They cou#d .ork through community mem"ers
such as #oca# radio persona#ities2 heads of #oca# organi;ations or community #eaders/ They can a#so
'6
use inf#uentia# peop#e in their ad!ertisements or de!e#op ad!ertising that has high 3con!ersation
!a#ue4/
Non-Personal Communication Channels
Con*persona# communication channe#s are media that carry messages .ithout persona# contact or
feed"ack/ They inc#ude ma0or media2 atmospheres and e!ents/ Important media consist of print
media2 "roadcast media2 and on#ine and e#ectronic media/ &tmospheres are designed en!ironments
that create or reinforce the "uyer4s #eanings to.ards "uying a product/ Thus #a.yers4 offices and
"anks are designed to communicate confidence and other factors that might "e !a#ued "y their
c#ients/ %!ents are occurrences staged to communicate messages to target audiences/ >or examp#e2
pu"#ic tours and other e!ents to communicate .ith specific audiences/
Con*persona# communication affects "uyers direct#y/ In addition2 using mass media often affects
"uyers indirect#y "y causing more persona# communication/ Communications first f#o. from
te#e!ision2 maga;ine and their mass media to opinion #eaders step "et.een h mass media ad their
audiences and carry messages to peop#e .ho are #ess exposed to media/ This suggests that mass
communication shou#d aim their messages direct#y at opinion #eaders2 #etting them carry the message
to others/ >or examp#e2 pharmaceutica# firms direct their ne. drugs promotions at the most
inf#uentia# doctors and medica# experts first : the 3thought #eaders4 in the profession2 if they are
persuaded2 their opinions ha!e an impact upon the ne. product4s acceptance "y others in the fie#d/
Thus opinion #eaders extend the inf#uence of the mass media/ Ar they may a#ter the message or not
carry the message2 or not carry the message2 thus acting as gatekeepers/
Selecting the Message Source
In either persona# or non*persona# communication2 the message4s impact on the target audience is
a#so affected "y ho. the audience !ie.s he communicator/ The credi"i#ity and attracti!eness of the
message source : the company2 the "rand name2 the spokesperson for attracti!eness of the "rand2 or
the actor in the ad in the ad .ho endorses the product : must therefore "e considered/
Messages de#i!ered "y high#y credi"#e sources are more persuasi!e/
'$
(harmaceutica# firms .ant doctors to te## a"out their products4 "enefits "ecause of doctors rank high
on expertise in their fie#d2 so they ha!e high credi"i#ity/ Many food companies promote to doctors2
dentists and their hea#thcare experts to moti!ate these professiona#s to recommend their products to
patients/ >or examp#e2 for years2 ensodyne toothpaste has promoted the product in denta# surgeries2
and ads use endorsements "y denta# practitioners to persuade target users to adopt the "rand/ But2 to
remain credi"#e2 the source must "e percei!ed "y the target audience as "eing an expert .here the
product is concerned2 and trust.orthy7 that is2 o"0ecti!e and honest in his or her opinion of the
"enefits c#aimed for the product/
Marketers a#so use ce#e"rity endorsers : top ath#etes2 .e##*kno. fi#m stars2 fashion mode#s and e!en
cartoon characters : to de#i!er their "rand messages/ Michae# A.en2 (au# +ascoigne and +ary
)ineker ha!e a## spoken for .a#kers crisps2 .hi#e Tiger 5oods stands "ehind Cike2 Tag Deuer and a
do;en other "rands/
Do.e!er2 companies must "e carefu# .hen se#ecting ce#e"rities to represent their "rands/ (icking the
.rong spokesperson can resu#t in em"arrassment and a tarnished image/ Cike found this out .hen it
entrusted its good name to the care of Mo"e Bryant .ho .as tria##ed for sexua# assau#t/ (epsi and
Modak faced simi#ar em"arrassment .hen their spokesperson2 "oxer Mike Tyson .as accused of
"eating his .ife and .as #ater 0ai#ed for rape/
Figure 10: Feedback measurements for two brands
Af these
',
100L
Market
20L not a.are
,0L a.are
40L did
not try
60L tried
,0L
disappointed
20L satisfied
Collecting Feedback
&fter sending the message2 the communicator must research its effect on the target audience/ This
in!o#!es asking the target audience mem"ers .hether they remem"er the message2 ho. many times
hey sa. it2 .hat points they reca##2 ho. they fe#t a"out the message2 and their past and present
attitudes to.ards the product and company/ The communicator .ou#d a#so #ike to measure "eha!ior
resu#ting in the message : ho. many peop#e "ought a product2 ta#ked to others a"out it or !isited the
store/
>igure 6 sho.s an examp#e of feed"ack measurement for t.o hypothetica# "rands/ )ooking at Brand
&2 .e find that ,0 per cent of the tota# market is a.are of it2 that 60 per cent of those a.are of it
ha!e tried it2 "ut that on#y 20 per cent of those .ho tried it .ere satisfied/ These resu#ts suggest that
a#though the communication programme is creating a.areness2 the product fai#s to gi!e consumers
the satisfaction they expect/ Therefore2 the company shou#d try to impro!e the product .hi#e staying
.ith the successfu# communication programme/ In contrast2 on#y 40 per cent of the tota# market of
Brand B2 on#y 30 per cent of those a.are of Brand B2 has tried it2 "ut ,0 per cent of those .ho ha!e
tried it are satisfied/ In this case2 the communication programme needs to "e stronger to take
ad!antage of the "rand4s po.er to o"tain satisfaction/
Setting the Total Promotion Budget and Mix
5e ha!e #ooked at the steps in p#anning and sending communications to a target audience/ But ho.
does the company decide on the tota# promotion "udget and its di!ision among the ma0or
''
100L
Market
60L not
a.are
40L a.are
$0L did
not try
30L tried
,0L
satisfied
promotiona# too# to create the promotion mixF By .hat process does it "#end the too#s to create
integrated marketing communicationsF 5e no. #ook at these 1uestions/
Setting the Total Promotion Budget
Ane of the hardest marketing decisions facing a company is ho. much to spend on promotion/ Bohn
5anamaker2 an &merican department store magnate2 one said7 3I kno. that ha#f of my ad!ertising is
.asted2 "ut I don4t kno. .hich ha#f/ I spent T2 mi##ion for ad!ertising2 and I don4t kno. if that is
ha#f enough or t.ice too much/4 It is not surprising? therefore2 that industries and companies !ary
.ide#y in ho. much they spend on promotion/ (romotion spending may "e 20 : 30 per cent of sa#es
in the cosmetics industry and on#y 2 or 3 per cent in the industria# machinery industry/ 5ithin a
gi!en industry2 "oth #o. and high spenders can "e found/
Do. does a company decide on its promotion "udgetF There are four common methods used to set
the tota# "udget for ad!ertising7 the afforda"#e method2 the percentage*of*sa#es methods2 the
competiti!e*parity method and the o"0ecti!e*and*task method/
Affordable Method
& common 3ru#e*of*thum"4 used "y many companies is the afforda"#e method7 they set the
promotion "udget at the #e!e# they think the company can afford/ They start .ith tota# re!enues2
deduct operating expenses and capita# out#ays2 and then de!ote some portion of the remaining funds
to ad!ertising/
6nfortunate#y2 this method of setting "udgets comp#ete#y ignores the effect of promotion on sa#es/ It
tends to p#ace ad!ertising #ast among spending priorities2 e!en in situations .here ad!ertising is
critica# to the firm4s success/
It #eads to an uncertain annua# promotion "udget2 .hich makes #ong*range market p#anning difficu#t/
&#though the afforda"#e method can resu#t in o!erspending on ad!ertising2 it more often resu#ts in
under spending/
Percentage-of-Sales Method
In the percentage*of*sa#e method2 marketers set their promotion "udget at a certain percentage of
current or forecast sa#es/ Ar they "udget a percentage of the unit sa#es price/ &utomoti!e companies
100
usua##y "udget a fixed percentage for promotion "ased on the p#anned car price/ >ast*mo!ing
consumer goods companies usua##y set it at some percentage of current anticipated sa#es/
The percentage*of*sa#es method has ad!antages/ It is simp#e to use and he#ps managers think a"out
the re#ationship "et.een promotion spending2 se##ing price and profit per unit/ The method
supposed#y creates competiti!e sta"i#ity "ecause competing firms tend to spend a"out the same
percentage of their sa#es on promotion/
-espite these c#aimed ad!antages2 ho.e!er2 there is #itt#e to 0ustify the method/ It .rong#y !ie.s
sa#es as the cause of promotion rather than as the resu#t/ The "udget is "ased on a!ai#a"i#ity of funds
rather than on opportunities/ It may pre!ent the increased spending sometimes needed to turn around
fa##ing sa#es/ It fai#s to consider .hether a higher or #o.er #e!e# of spending .ou#d "e more
profita"#e/ Because the "udget !aries .ith year*to*year sa#es2 #ong*range p#anning is difficu#t/
>ina##y2 the method does not pro!ide any "asis for choosing a specific percentage2 except .hat has
"een done in the past or .hat competitors are doing/
Competitive-Parity Method
Ather companies use the competiti!e*parity method2 setting their premonition "udgets to match
competitors4 out#ays/ They .atch competitors4 ad!ertising or get industry promotion*spending
estimates from pu"#ications or trade associations2 and then set their "udgets "ased on the industry
a!erage/
T.o arguments support this method/ >irst2 competitors4 "udgets represent the co##ecti!e .isdom of
the industry/ econd2 spending .hat competitors spend he#ps pre!ent promotion .ars/ 6nfortunate#y
neither argument is !a#id/ There are no grounds for "e#ie!ing that the competition has a "etter idea of
.hat a company shou#d "e spending on promotion than does the company itse#f/ Companies differ
great#y in terms of market opportunities and profit margins2 and each has its o.n specia# promotion
needs/ >ina##y2 there is no e!idence that "udgets "ased on competiti!e parity pre!ent promotion
.ars/
Objective-and-Task Method
The most #ogica# "udget*setting method is the o"0ecti!e*and*task method2 .here"y the company sets
sit s promotion "udget "ased on .hat it .ants to accomp#ish .ith promotion/ The method entai#s 819
defining specific promotion o"0ecti!es2 829 determining the tasks needed to achie!e these o"0ecti!es2
101
and 839 estimating the costs of performing these tasks/ The sum of these costs is the proposed
promotion "udget/
The o"0ecti!e*and*task method forces management to spe## out its assumptions a"out the re#ationship
"et.een amount spent and promotion resu#ts/ But it is a#so the most difficu#t method to use/ Mangers
ha!e to set sa#es and profit targets and then .ork "ack to .hat tasks must "e performed to achie!e
desired goa#s/ Aften it is hard to figure out .hich specific tasks .i## achie!e specific o"0ecti!es/
>or examp#e2 suppose (hi##ips .ants '< per cent a.areness for its ne. -H- p#ayer mode# during the
six*month introductory period/ 5hat specific ad!ertising messages and media schedu#es .ou#d
(hi##ips need in order to attain this o"0ecti!eF Do. much .ou#d these messages and media schedu#es
costF (hi#ips management must consider such 1uestions2 e!en though they are hard to ans.er/ By
comparing the campaign cost .ith expected profit gains2 the financia# !ia"i#ity of the promotions
campaign can "e determined/
The main ad!antage of this method is that it gets managers to define their communication o"0ecti!es2
ho. each o"0ecti!e .i## "e met using se#ected promotion too#s and the financia# imp#ications of
a#ternati!e communication programmes/
Setting the Promotion Mix
The concept of integrated marketing communication suggests that it must "#end the promotion too#s
carefu##y into a coordinated promotion mix/ But ho. does the company determine .hat mix of
promotion too#s it .i## useF
Companies are a#.ays #ooking for .ays to impro!e "y rep#acing one promotion too# .ith another
that .i## do the same 0o" more economica##y/ Many companies ha!e rep#aced a portion of their fie#d
sa#es acti!ities .ith te#ephone sa#es and direct mai#/ Ather companies ha!e increase their sa#es
promotion spending in re#ation to ad!ertising to gain 1uicker sa#es/
-esigning the promotion mix is e!en more comp#ex .hen one too# must "e used to promote another/
Thus .hen British &ir.ays decides to offer &ir Mi#es for f#ying .ith the company2 it has to run ads
to inform the pu"#ic/ 5hen )e!er Brothers uses a consumer ad!ertising and sa#es promotion
campaign to "ack a ne. .ashing po.der2 it has to set aside money to promote this campaign to the
rese##ers to .in their support/
102
Many factors inf#uence the marketer4s choice of promotion too#s/ 5e no. #ook at these factors/
The Nature of Each Promotion Tool
%ach promotion too# has uni1ue characteristics and costs/ Marketers must understand these
characteristics in se#ecting the promotion mix/ )et us examine each of the ma0or too#s/
Advertising
The many forms of ad!ertising make it hard to genera#i;e a"out its uni1ue 1ua#ities/ Do.e!er2
se!era# 1ua#ities can "e noted7
&d!ertising can reach masses of geographica##y dispersed "uyers at a #o. cost per exposure? & for
examp#e2 TH ad!ertising can reach huge audiences
Beyond its reach2 #arge*sca#e ad!ertising "y a se##er says something positi!e a"out the se##er4s si;e2
popu#arity and success
Because of ad!ertising4s pu"#ic nature2 consumers tend to !ie. ad!ertised products as standard and
#egitimate : "uyers kno. that purchasing the product .i## "e understood and accepted pu"#ic#y/
&d!ertising ena"#es the se##er to repeat a message many times2 and #ets the "uyer recei!e and
compare the messages of !arious competitors
&d!ertising is a#so !ery expressi!e2 a##o.ing the company to dramati;e its products through the
artfu# use of !isua#s2 print2 sound and co#our/
103
An the one hand2 ad!ertising can "e used to "ui#d up a #ong*term image for a product/ An the other
hand2 ad!ertising can trigger 1uick sa#es/
Advertising also has some Shortcomings
&#though it reaches many peop#e 1uick#y2 ad!ertising is impersona# and cannot "e as persuasi!e as
company sa#espeop#e
&d!ertising is on#y a"#e to carry on a one*.ay communication .ith the audience2 and the audience
does not fee# that it has to pay attention or respond
In addition2 ad!ertising can "e !ery cost#y/ &#though some ad!ertising forms2 such as ne.spaper and
radio ad!ertising2 can "e done on sma##er "udgets2 other forms2 such as net.ork TH ad!ertising2
re1uire !ery #arger "udgets/
Personal Selling
(ersona# se##ing is the most effecti!e too# at certain stages of the "uying process2 particu#ar#y in
"ui#ding up "uyers4 preferences2 con!ictions and actions/ Compared to ad!ertising persona# se##ing
has se!era# uni1ue 1ua#ities7
It in!o#!es persona# interaction "et.een t.o or more peop#e2 so each person can o"ser!e the other4s
needs and characteristics and make 1uick ad0ustments
(ersona# se##ing a#so a##o.s a## kinds of re#ationships to spring up2 ranging from a matter*of*fact
se##ing re#ationship to a deep persona# friendship/ The effecti!e sa#esperson keeps the customer4s
interests at heart in order to "ui#d a #ong*term re#ationship
>ina##y2 .ith persona# se##ing the "uyer usua##y fee#s a greater need to #isten and respond2 e!en if the
response is a po#ite 3no thank you4/
These uni1ue 1ua#ities come at a cost2 ho.e!er2 a sa#es force re1uires a #onger*term commitment
than does ad!ertising : ad!ertising can "e turned on and off2 "ut sa#es force si;e is harder to change/
(ersona# se##ing is a#so the company4s most expensi!e promotion too#2 costing companies se!era#
hundreds euros on a!erage per sa#es ca##2
Sales Promotion
a#es promotion inc#udes a .ide range of too#s : coupons2 contests2 price reductions2 premium
offers2 free goods and others : a## of .hich ha!e many uni1ue 1ua#ities
104
They Attract Consumer Attention and Provide Information that may Lead to a Purchase
They offer strong incenti!es to purchase "y pro!iding inducements or contri"utions that gi!e
additiona# !a#ue to consumers
Moreo!er2 sa#es promotions in!ite and re.ard 1uick response/ 5hereas ad!ertising says 3"uy our
product? sa#es promotion offers incenti!es to consumers to 3"uy it no.4/
Companies use sa#es promotion too#s to create a stronger and 1uicker response/ a#es promotion can
"e sued to dramati;e product offers and to "oost sagging sa#es/ a#es promotion effects are usua##y
short*#i!ed2 ho.e!er2 and are often not as effecti!e as ad!ertising or persona# se##ing in "ui#ding
#ong*run "rand preference/ To "e effecti!e2 marketers must carefu##y p#an the sa#es promotion
campaign and offer target customers genuine !a#ue/
Public Relations
(u"#ic re#ations of (@ offers se!era# uni1ue 1ua#ities/ It is a## those acti!ities than the organi;ation
does to communicate .ith target audiences2 .hich are not direct#y paid for/
(@ is !ery "e#ie!a"#e7 ne.s stories2 features2 sponsorship and e!ents seem more rea# and "e#ie!a"#e
to readers than ads do
(u"#ic re#ations can reach many prospects .ho a!oid sa#espeop#e and ad!ertisements2 since the
message gets to the "uyers as 3ne.s4 rather than as a sa#es*directed communication
)ike ad!ertising (@ can dramati;e a company or product/ The Body shop is one of the fe.
internationa# companies that ha!e used pu"#ic re#ations as a more effecti!e a#ternati!e to mass TH
ad!ertising/
Marketers tend to under use pu"#ic re#ations or to use it has an afterthought/ Uet a .e##*thought*out
pu"#ic re#ations campaign used .ith other promotion*mix e#ements can "e !ery effecti!e and
economica#/
10<
Direct Marketing
&#though there are many forms of direct marketing : direct mai#2 te#emarketing2 e#ectronic
marketing on#ine marketing and others : they a## share four distincti!e characteristics/
-irect marketing is non*pu"#ic as the message is norma##y addressed to a specific person
-irect marketing is immediate as messages can "e prepared !ery 1uick#y
-irect marketing can "e customi;ed2 so messages can "e tai#ored to appea# to specific customers
-irect marketing is interacti!e7 it a##o.s a dia#ogue "et.een the communicator and the customer2
and messages can "e a#tered depending on the consumer4s response/
Thus2 direct marketing is .e## suited to high#y targeted marketing efforts and to "ui#ding one*to*one
customer re#ationships/
Promotion Mix Strategies
Marketers can choose form t.o "asic promotion mix strategies : push promotion or pu## promotion/
The figure "e#o. contrasts the to. strategies/ The re#ati!e emphasis on the specific promotion too#s
differs for push and pu## strategies/ & push strategy in!o#!es 3pushing4 the product through
distri"ution channe#s to fina# consumers/ The firm directs its marketing acti!ities to.ards channe#
mem"ers to induce them to carry the product and to promote it to fina# consumers/ 6sing a pu##
strategy2 the producer directs its marketing acti!ities to.ards fina# consumers to induce them to "uy
the product/ If the pu## strategy is effecti!e2 consumers .i## then demand the product from channe#
mem"ers2 .ho .i## in turn demand it from producers/ Thus under a pu## strategy2 consumer demand
3pu##s4 the product through the channe#s/
ome sma## industria#*goods companies4 use on#y push strategies? some direct*marketing companies
use on#y pu##/ Do.e!er2 most #arge companies use some com"ination of "oth/ >or examp#e2 )e!er
Brothers uses mass*media ad!ertising to pu## consumers to its products and a #arge sa#es force and
trade promotions to push its products through the channe#s/
In recent years2 consumer*goods companies ha!e "een decreasing the pu## portions of their
promotion mixes in fa!our of more push/ There are a num"er of reasons "ehind this shift in
promotion strategy/ Ane is the rising cost of mass*media campaigns/
106
Many firms ha!e a#so found ad!ertising #ess effecti!e in recent years/ Companies are increasing their
segmentation efforts and tai#oring their marketing programmes more narro.#y2 making nationa#
ad!ertising #ess suita"#e than #oca#i;ed retai#er promotions/ In these days of hea!y "rand extensions
and me*too products2 many companies are finding it difficu#t to feature meaningfu# product
differentiations in ad!ertising/ Instead2 they differentiate their "rands through price reductions2
premium offers2 coupons and other promotions aimed at the trade/
Figure 11: Push versus pull promotion strategy
(roducer marketing acti!ities @ese##er marketing acti!ities
8(ersona# se##ing2 trade 8persona# se##ing2 ad!ertising
(romotion2 other9 sa#es promotion2 other9
-emand -emand
(roducer marketing acti!ities
8Consumer ad!ertising2 sa#es promotion2 other9
The gro.ing strength of retai#ers is a#so a key factor inf#uencing the shift form pu## to push/ Big
retai# chins in %urope ha!e greater access no. than e!er "efore to product sa#es ad profit
information/ They ha!e the po.er to demand and get .hat they .ant from supp#iers/ &nd .hat they
.ant is margin impro!ements : that is2 more push/ Mass ad!ertising "ypasses them on its .ay to the
consumers2 "ut push promotion "enefits them direct#y/ Consumer promoting gi!e retai#ers an
immediate sa#es "oost and cash from trade a##o.ances pads retai#er profits/ o2 manufacturers are
compe##ed to use push promotions 0ust to o"tain good she#f space and ad!ertising support from their
retai#ers/
10$
(roducer @etai#ers and
.ho#esa#ers
Consumers
(roducer @etai#ers and
.ho#esa#ers
Consumers
Do.e!er2 reck#ess use of push promotion #eads to fierce price competition and a continua# spira# of
price s#ashing and margin erosion2 #ea!ing #ess money to in!est in the product @I-2 packaging and
ad!ertising that is re1uired to impro!e and maintain #ong*run consumer preference and #oya#ty/
@o""ing the ad!ertising "udget to pay for more sa#es promotion cou#d mortgage a "rand4s #ong*term
future for short*term gains/ 5hi#e push strategies .i## remain important2 particu#ar#y in packaged*
goods marketing2 companies that find the "est mix "et.een the t.o : consistent ad!ertising to "ui#d
#ong*run "rand !a#ue and consumer preference and sa#es promotion to crate short*run trade support
and consumer excitement : are most #ike#y to .in the "att#e for #oya# and satisfied customers/
Factors in Designing Promotion Mix Strategies
Companies consider many factors .hen designing the promotion mix strategies2 inc#uding the type
of product=market2 "uyer*readiness stage and the product #ife*cyc#e stage/
Module 13 Marketing Communications Strategy 3 Managing the
Marketing
Type of Product/Market
The importance of different promotiona# too#s !aries "et.een consumer and "usiness markets/
Consumer*goods companies usua##y put more of their funds into ad!ertising2 fo##o.ed "y sa#es
promotion2 persona# se##ing and then pu"#ic re#ations/ &d!ertising is re#ati!e#y more important in
consumer markets "ecause there are a #arger num"er of "uyers2 purchases tend to "e routine2 and
emotions p#ay a more important ro#e in the purchase*decision process/ In contrast2 industria#*goods
companies put most of their funds into persona# se##ing2 fo##o.ed "y sa#es promotion2 ad!ertising
and pu"#ic re#ations/ In genera#2 persona# se##ing is used more hea!i#y .ith expensi!e and risky
purchases2 and in markets .ith fe.er and #arger se##ers/
Figure 12: Relative importance of promotion tools in consumer versus industrial markets
10,
&d!ertising
a#es promotion
(ersona# se##ing

@e#ati!e importance @e#ati!e importance
8Consumer goods9 8Industria# goods9

&#though ad!ertising is #ess important than sa#es ca##s in "usiness markets2 it sti## p#ays an important
ro#e/ &d!ertising can "ui#d product a.areness and kno.#edge2 de!e#op sa#es #eads and reassure
"uyers/ imi#arity2 persona# se##ing can add a #ot to consumer goods marketing efforts/ It is simp#y
not the case that 3sa#espeop#e put products on she#!es and ad!ertising takes them off4/ 5e##*trained
consumer*goods sa#espeop#e can sign up more dea#ers to carry a particu#ar "rand2 con!ince them to
gi!e more she#f space and urge them to use specia# disp#ays and promotions/
Buyer-Readiness Stage
The effects of the promotiona# too# !ary for the different "uyer*readiness stages/ &d!ertising a#ong
.ith pu"#ic re#ations p#ays the #eading ro#e in the a.areness and kno.#edge stages2 more important
than that p#ayed "y 3co#d ca##s4 from sa#espeop#e/ Customer #iking2 preference and con!iction are
more affected "y persona# se##ing2 .hich is c#ose#y fo##o.ed "y ad!ertising/ >ina##y2 c#osing the sa#e
is most#y done .ith sa#es ca##s and sa#es promotion/ C#ear#y2 ad!ertising and pu"#ic re#ations are the
most cost*effecti!e at the ear#y stages of the "uyer decision process2 .hi#e persona# se##ing2 gi!en its
high costs2 shou#d focus on the #ater stages of the customer "uying process/
Product Life-Cycle Stage
The effects of different promotion too#s a#so !ary .ith stages of the product #ife cyc#e/ In the
introduction stage2 ad!ertising and pu"#ic re#ations continue to "e po.erfu# inf#uences2 .hereas sa#es
10'
(ersona# se##ing
(u"#ic re#ations
a#es promotion
&d!ertising
(u"#ic re#ations
promotion again "ecomes important re#ati!e to ad!ertising/ Buyers kno. the "rands and ad!ertising
is needed on#y to remind them of the product/ In the dec#ine stage2 ad!ertising is needed on#y to
remind them of the product/ In the dec#ine stage2 ad!ertising is kept at a reminder #e!e#2 pu"#ic
re#ations is dropped and sa#espeop#e gi!e the product on#y a #itt#e attention/ a#es promotion2
ho.e!er2 might continue strong in order to stimu#ate trade and prop up sa#es/
Integrating the Promotion Mix
Da!ing set the promotion "udget and mix2 the company must no. take steps to se that a## of the
promotion mix e#ements are smooth#y integrated/ Dere is a check#ist for integrating the firm4s
marketing communications/
&na#yse trends : interna# and externa# : that can affect your company4s a"i#ity t do "usiness/ )ook
for areas .here communications can he#p the most/ -etermine the strengths and .eaknesses of each
communications function/ -e!e#op a com"ination of promotiona# tactics "ased on these strengths
and .eaknesses/
&udit the pockets of communications spending throughout the organi;ation/ Itemise the
communications "udgets and tasks and conso#idate these into a sing#e "udgeting process/ @eassess
a## communications expenditures "y product2 promotiona# too#2 stage of the #ife*cyc#e2 and o"ser!ed
effect/
Identify a## contract points for the company and its "rands/ 5ork to ensure that communications at
each point are consistent .ith your o!era## communications strategy and that your communications
efforts are occurring .hen2 .here and ho. your customers/

Team up in communications p#anning/ %ngage a## communications functions in 0oint p#anning/
Inc#ude customers2 supp#iers and other stakeho#ders at e!ery stage of communication p#anning/
Create compati"#e themes2 tones and 1ua#ity across a## communications media/ Make sure each
e#ement carries your uni1ue primary messages and se##ing points/ This consistency achie!ing greater
impact and pre!ents the unnecessary dup#ication of .ork across functions/
Create performance measures that are shared "y a## communications e#ements/ -e!e#op systems to
e!a#uate the com"ined impact of a## communications acti!ities/
8Industria# goods9
110
&ppoint a director responsi"#e for the company4s persuasi!e communications efforts/ This mo!e
encourages efficiency "y centra#i;ing p#anning and creating shared performance measures/
Products and Services for Consumers
111
4: Successful Marketing Communications Strategies
Quality
+#o"a# competition is p#acing ne. emphasis on some "asic tenets of "usiness/ It is shortening
product #ife cyc#es and focusing on the importance of 1ua#ity2 competiti!e prices2 and inno!ati!e
products/ The po.er in the marketp#ace is shifting form a se##er4s market to customers2 .ho
ha!e more choices "ecause there are more companies competing for their attention/ More
competition2 more choices2 puts more po.er in the hands of he customer2 and that2 of course2
dri!es the need for 1ua#ity/ +one are the days .hen the customer4s kno.#edge .as #imited to
one or at "est 0ust a fe. different product/ Today the customer kno.s .hat is "est2 cheapest2 and
highest 1ua#ity/ It is the customer .ho defines 1ua#ity in terms of his or her needs and resources/
&merican products ha!e a#.ays "een among the .or#d4s "est2 "ut competition is cha##enging us to
make e!en "etter products are among the most important criteria "y .hich purchases are made/
>or consumer and industria# products a#ike2 the reason often gi!en for preferring one "rand o!er
another is "etter 1ua#ity at a competiti!e price/ Eua#ity2 as a competiti!e too#2 is not ne. to the
"usiness .or#d2 "ut many "e#ie!e that it is the deciding factor in .or#d markets/ Do.e!er2 .e
must "e c#ear a"out .hat .e mean "y 1ua#ity/
Quality Defined
Eua#ity can "e defined on t.o dimensions7 market*percei!ed 1ua#ity and performance 1ua#ity/ Both
are important concepts2 "ut concepts2 "ut consumer perception of a 1ua#ity product often has
more to do .ith market percei!ed 1ua#ity than performance 1ua#ity/ The re#ationship of 1ua#ity
conformance to customer satisfaction is ana#ogous to an air#ine4s de#i!ery of 1ua#ity/ If !ie.ed
interna##y form the firm4s perspecti!e 8performance 1ua#ity92 an air#ine has achie!ed 1ua#ity
conformance .ith as f#ight and #anding/ But "ecause the consumer expects performance 1ua#ity
"e a gi!en2 1ua#ity to the consumer is more than comp#iance 8a safe f#ight and #anding9/ @ather2
cost time#y ser!ice2 fre1uency of f#ights2 comforta"#e seating and performance of air#ine
personne# from check in to "aggage c#aim are a## part of the customer4s experience that is
percei!ed as "eing of good or poor 1ua#ity/ Considering the num"er of air mi#es f#o.n dai#y2 the
air#ines industry is approaching ;ero defects in 1ua#ity conformance2 yet .ho .i## sat that
customer satisfaction is any.here near perfectionF These market percei!ed 1ua#ity attri"utes are
em"edded in the tota# product2 that is2 the physica# or core product and a## the additiona# features
the consumer expects/
112
In a competiti!e marketp#ace .here the market the market has choices2 most consumers expect
performance 1ua#ity to "e a gi!en/ Catura##y2 if the product does not perform up to standards2 it
.i## "e re0ected/ 5hen there are a#ternati!e products2 a## of .hich met performance 1ua#ity
attri"utes/ Interesting#y2 china4s #eading refrigerator maker recogni;ed the importance of these
market percei!ed 1ua#ity attri"utes .hen it adopted a techno#ogy that ena"#ed it to #et consumers
choose form 20 different co#ors and textures for door hand green mar"#e hand#es and mo#dings/
5hy is this importantF Because it #ets consumers Jupdate the #i!ing roomsK .here most of the
refrigerators are parked/ The company4s moti!e .as simp#e7 it positioned its product for
competition form mu#tinationa# "rands "y gi!ing the consumer another expression 1ua#ity/
Eua#ity is a#so measured in many industries "y o"0ecti!es third parties/ In the 6nited tates2 B-
(o.er and &ssociates has expanded its auto 1ua#ity ratings "ased on consumer sur!eys to other
areas2 such as computers/ Customer satisfaction indexes de!e#oped first in .eden are no. "eing
used to measure customer satisfaction across a .ide !ariety of consumer products and ser!ices/
>ina##y2 the 6/ -epartment of Commerce annua##y recognise4s &merican firms for the 1ua#ity of
their internationa# offerings the @it; Car#ton Dote# chain has .on the prestigious a.ard t.ice/
113
Maintaining Quality
Maintaining performance 1ua#ity is critica#2 "ut fre1uent#y a product that #ea!es the factory at
performance 1ua#ity is damaged as it passes through the distri"ution chain/ This is a specia#
pro"#em for many g#o"a# "rands for .hich production is distant form the market and=or contro#
of the product is #ost "ecause of the distr"ut,ion system .ithin the market/ 5hen Mars
Company4s nickers and other 5estern confectioneries .ere first introduced to @ussia2 they
.ere a "ig hit/ >oreign "rands such Mars2 To"#erone2 5a#d"aur2 and Cad"ury .ere the top
"rands indeed2 on#y one @ussian "rand p#aced in the top ten/ But .ithin the fi!e years the
@ussian "rand p#aced in the top ten/ But .ithin fi!e years the @ussian "rands had retaken eight
of the top spots2 and on#y one 6// "rand2 Mars4s -o!e "ars2 .as in the top ten/
5hat happenedF & com"ination of factors caused the dec#ine/ @ussian4s @ed Acto"er Choco#ate
>actory got its act together2 moderni;ed its packaging2 product mix2 and e1uipment2 and set out
to capture the market/ (erformance 1ua#ity .as a#so an issue/ 5hen the @ussian market opened
to outside trade2 foreign companies anxious to get into the market dumped surp#us out of date
and poor 1ua#ity products/ In other cases2 choco#ates .ere smugg#ed in and so#d on street
corners and .ere often mishand#ed in the process/ By the time they made it to consumers2 the
choco#ates .ere #ike#y to "e misshapen or disco#ored poor 1ua#ity compared .ith @ussia4s @ed
Acto"er choco#ate/
Market percei!ed 1ua#ity .as a#so an issue/ @ussian choco#ate has a different taste "ecause of its
formu#ation more cocoa and choco#ate #i1ueurs are used than in .estern "rands2 .hich make it
grittier/ Thus2 the @ed Acto"er "rand appea#s more to @ussian taste e!en though it is genera##y
priced a"o!e 5estern "rands/ &s e!inced "y this examp#e2 1ua#ity is not 0ust desira"#e2 it is
essentia# for success in today4s competiti!e g#o"a# market2 and the decision to standardi;e or
adapt a product is crucia# in de#i!ering 1ua#ity/
Physical or Mandatory Requirements and Adaptation
114
& product may ha!e to change in a num"er of .ays to meet the physica# or mandatory re1uirements
of a ne. market2 ranging form simp#e package changes to tota# redesign of he physica# core
product/ In many countries the term product homo#ogation is used to descri"e the changes
mandated "y #oca# product and ser!ice standards/ & recent study reaffirmed the often*reported
finding that mandatory adoptions .ere more fre1uent#y the reason for product than adapting for
cu#tura# market/
)ega#2 economic2 po#itica#2 techno#ogica#2 and c#imatic re1uirements of the #oca# marketp#ace often
dictate product adaptation/ -uring a period in India .hen the go!ernment .as !ery anti foreign
in!estment2 (epsi*Co#a changed its product name to )ehar*(epsi 8in Dindi2 )ehar means
J.a!eK9 to gain as much #oca# support as possi"#e/ The name returned to (epsi*Co#a .hen the
po#itica# c#imate turned fa!ora"#e/ )a.s that !ary among countries usua##y set specific package
si;es and safety and 1ua#ity standards/ To make a purchase ore afforda"#e in #o.*income
countries2 the num"er of units per package may ha!e to "e reduced form the typica# 1uantities
offered in high*income countries/
@a;or "#ades2 cigarettes2 che.ing gum2 and other mu#tip#e pack items are often so#d sing#y or to. to
pack instead of he more customary 10 or 20 Cheetos2 a product of (epsiCo4s >rito*)ay2 is
packaged on 1< gram "oxes in china so it can "e priced at 1 Uuan2 a"out 12 cents/ &t this price2
e!en chi#dren .ith #itt#e spending money can afford Cheetos/
Changes may a#so ha!e to "e made to accommodate c#imatic differences/ +enera# Motors of Canada2
for examp#e2 experienced ma0or pro"#ems .ith se!era# thousand Che!ro#et automo"i#es shipped
to a mid %ast country? it .as 1uick#y disco!ered they .ere unfit for the hot2 dusty c#imate/
upp#ementary air fi#ters and different c#utches had to "e added to ad0ust for the pro"#em/
imi#ar#y2 crackers ha!e to "e packaged in tins for humid areas/
11<
The #ess economica##y de!e#oped a market is2 the greater degree of change a product may need for
acceptance/ Ane study found that on#y one in ten products cou#d "e marketed in de!e#oping
countires .ithout modification of some sort/ Because most products so#d a"oard "y internationa#
companies originate in home markets and most re1uire some form of modification2 companies
need a systematic process to identify products that need adapting/
& 1ua#ity issue of gro.ing importance the .or#d o!er2 especia##y in %urope and the 6nited tates2 is
green marketing/ %urope has "een at eh forefront of the Jgreen mo!ementK2 .ith strong pu"#ic
opinion and specific #egis#ation fa!ouring en!ironmenta##y friend#y marketing/ +reen marketing is a
term used to identify concern .ith the en!ironmenta# conse1uences of a !ariety of marketing
acti!ities/ The %uropean Commission has passed #egis#ation to contro# a## kinds of packaging .aste
throughout the %C/ T.o critica# issues that affect product de!e#opment are the contro# of the packing
component of so#id .aste and consumer demand for en!ironmenta##y friend#y products/
The %uropeans Commission issued guide#ines for eco*#a"e#ing that "ecame operationa# in 1''2/
6nder the directi!e2 product is e!a#uated on a## significant en!ironmenta# effects throughout its #ife
cyc#e2 from manufacturing to disposa# a crad#e to gra!e approach/ & detergent .hose formu#ation
.ou#d "e harmfu# .hen discharged friend#ier than a detergent .hose formu#ation .ou#d "e harmfu#
.hen discharged into the en!ironment/ &eroso# prope##ants that do not dep#ete the o;one #ayer are
another examp#e of en!ironmenta##y friend#y products/ Co country4s #a.s year re1uire products to
carry an eco*#a"e# to "e so#d2 ho.e!er/ The designation that a product is Jen!ironmenta##y friend#y
product/
ince the introduction of he eco*#a"e# idea2 Doo!er .ashing machines ha!e "een the on#y products
that ha!e gained appro!a# for he eco*#a"e#/ Interesting#y enough2 the "enefits of .inning the sym"o#
ha!e resu#ted in Doo!er tre"#ing its market share in +ermany and dou"#ing its share of he premium
sector of the 6/M/ 5ashing machine market/ The appro!a# process seems to "e deterring many
%uropean manufacturers2 many of .hom are using their kno.n2 unofficia# sym"o#s/ The Cationa#
Consumer Counci#2 a consumer .atchdog group2 and reports that many consumers are so confused
and cynica# a"out the myriad sym"o#s that they are gi!ing up a#together on trying to compare the
green credentia# of simi#ar products/
)a.s that mandate systems to contro# so#id .aste2 .hi#e !o#untary in one sense2 do carry pena#ties/
The %C #a. re1uires that packaging materia# through a## #e!e#s of distri"utions2 from the
116
manufacturer to the consumer2 "e recyc#ed or reused/ Current#y2 "et.een <0 percent and 4< percent
of he .eight of the tota#ity of packaging materia#s contained in packaging .aste .i## "e recyc#ed/
%ach #e!e# of he distri"ution chain is responsi"#e for returning a## packaging2 packing2 and other
.aste materia#s up the chain/ The "iggest pro"#em is .ith the packaging form the customer if no
centra# recyc#ing #ocations are a!ai#a"#e/ >or the manufacturer4s product to participate in direct
co##ection and not ha!e to "e returned to the retai#er for recyc#ing2 the manufacturer must guarantee
financia# support for cur"side or centra# co##ection of a## materia#s/ The gro.ing pu"#ic and po#itica#
pressure to contro# so#id .aste is a strong incenti!e for comp#iance/
&#though the packaging and so#id .aste ru#es and "urdensome2 there ha!e "een successfu# cases of
not on#y meting #oca# standards "ut a#so "eing a"#e to transfer this approach to other markets/
(rocter T +am"#e4s internationa# operations integrated g#o"a# en!ironmenta# concerns as a response
to increasing demands in +ermany/ It introduced )enor2 a fa"ric softener in a superconcentrated
form2 and so#d it in a p#astic refi## pouch that reduced packaging "y ,< percent/ This mo!e increased
"rand sa#es "y 12 percent and he#ped set a positi!e tone .ith go!ernment regu#ators and acti!ists/
The success of )enor .as transferred to the 6nited tates2 .here ( T + faced simi#ar en!ironmenta#
pressures/ & superconcentrated -o.ny2 the 6// "rand of fa"ric softener2 .as repackaged in refi##
pouches that reduced package si;e "y $< percent2 there"y costing consumers #ess green marketing as
a %uropean pro"#em? concern for the en!ironment is .or#d.ide and simi#ar #egis#ation is sure to
surface e#se.here/ This is another examp#e of the need to adapt products for g#o"a# marketing/
Product and Culture
To appreciate the comp#exity of standardi;ed !ersus adapted products2 one needs to understand ho.
cu#tura# inf#uences are inter.o!en .ith the percei!ed !a#ue and importance a market p#aces on a
product/ & product is more than a physica# item7 it is "und#e of satisfactions 8or uti#ities9 that the
"uyer recei!es/ These inc#ude its form2 taste2 co#our2 odor and texture? ho. it functions in use? the
package? the #a"e#? the .arranty? manufacturer4s and retai#er4s ser!icing? the confidence or prestige
en0oyed "y the "rand? the manufacturer4s reputation? the country of origin? and other sym"o#ic uti#ity
recei!ed form the possession or use of the goods/ In short2 the market re#ates to more than a
product4s confer much of the importance of these other "enefits/ In other .ords2 product is the sum
of the physica# and psycho#ogica# satisfactions it pro!ides the user/
11$
& product4s attri"utes genera##y are re1uired to create its primary function/ The primary function of
an automo"i#e2 for examp#e2 is to mo!e passengers from point & to B/ this a"i#ity re1uires a motor2
transmission2 and other physica# features to achie!e its primary purpose/ The physica# features or
primary function of an automo"i#e product are re1uired .hen mo!ing form one cu#ture to another/
Do.e!er2 an automo"i#e 8co#our2 si;e2 design2 "rand name2 price9 ha!e #itt#e to do .ith its primary
function the mo!ement form point & to B "ut do add !a#ue to the satisfaction recei!ed/
The meaning and !a#ue imputed to the psycho#ogica# attri"utes of a product can !ary among cu#tures
and are percei!ed as negati!e or positi!e/ To maximi;e the "und#e of satisfactions recei!ed and to
create positi!e products attri"utes rather than negati!e ones2 adaptation of the nonphysica# features
of a product may "e necessary/ Coca*Co#a2 fre1uent#y touted as a g#o"a# product2 found it had to
change -iet Coke to Coke )ight .hen it .as introduced in Bapan/ Bapanese .omen to not #ike to
admit to dieting2 and further2 the idea of diet imp#ies sickness or medicine/ o instead of emphasi;ing
.eight #oss2 Jfigure maintenanceK is stressed/
&daptation may re1uire changes of any one or a## of the psycho#ogica# aspects of a product/ & c#ose
study of the meaning of a product sho.s to .hat extent the cu#ture determines an indi!idua#4s
perception of .hat a product is and .hat satisfaction that product pro!ides/
The adoption of some products "y consumers can "e affected as much "y ho. the product concept
conforms .ith norms2 !a#ues2 and "eha!iour patterns as "y its physica# or mechanica# attri"utes/ >or
examp#es2 on#y recent#y ha!e Bapanese consumers taken an interest in dish.ashers they simp#y
didn4t ha!e room in the kitchen/ Do.e!er2 !ery compact designs "y Mitsu"ishi2 Toto 8a Bapanese
toi#et company92 and others are making ne. inroads into Bapanese kitchens/ & no!e#ty a#.ays comes
up against a c#ose#y intergraded cu#tura# pattern2 and it is primari#y this determines .hether2 .hen2
ho.2 and in .hat form it gets adopted/ Insurance has "een difficu#t to introduce into Mus#im
countries "ecause the pious cou#d c#aim that it part #ook of "oth usury and gam"#ing2 "oth exp#icit#y
!oted in the Moran/ The Bapanese ha!e a#.ays found a## "ody 0e.e#ry repugnant/ The cots ha!e a
decided resistance to pork and a## its associated products2 apparent#y form days #ong ago .hen such
ta"oos .ere founded on fundamenta#ist interpretations of he Bi"#e/ >i#ter cigarettes ha!e fai#ed in at
#east one &sian country "ecause a !ery #o. #ife expectancy hard#y p#aces many peop#e in the age
"racket most prone to fears o f#ung cancer e!en supposing that they shared 5estern attitudes a"out
death/
11,
5hen ana#y;ing a product for a second market2 the extent of adoption re1uired depends on cu#tura#
differences in product use and perception "et.een the market the product .as origina##y de!e#oped
for and the ne. market/ The greater these cu#tura# difference "et.een the to markets2 the greater the
extent of adoption that may "e necessary/
&n examp#e of this ru#e of thum" in!o#!es an undisputed &merican #eader in cake mixes2 .hich
tacit#y admitted fai#ure in the %ng#ish market "y c#osing do.n operations after fi!e unsuccessfu#
years/ Taking its most successfu# mixes in the 6// market2 the company introduced them into the
British market/ Considera"#e amounts of time2 money2 and effort .ere expended to introduce its
!ariety of cake mixes to this ne. market/ Dindsight pro!ides se!era# pro"a"#e causes for he
company4s fai#ure/ Traditiona#ism .as certain#y among the most important/ The British eat most of
the cake .ith tea instead of dinner and ha!e a#.ays preferred dry sponge cake2 .hich is easy is to
hand#e? the fancy2 iced cakes fa!ored in the 6nited ates .ere the type introduced/ -ancy iced cakes
are accepted in Britain2 "ut they are considered extra specia# and are purchased form a "akery or
made .ith much effort and care at home/ The company introduced .hat it thought to "e an easy cake
mix/ This easy cake mix .as considered a s#ight to domestic pro.ess/ Domemakers fe#t gui#ty a"out
not e!en cracking an egg2 and there .as suspicion that dried eggs and mi#k .ere not as good as fresh
ones/ Therefore2 .hen the occasion ca##ed for a fancy cake2 an easy cake mix .as simp#y not good
enough/
Ironica##y2 this company had faced a#most identica# pro"#ems2 .hich they e!entua##y o!ercame2
.hen introducing ne. easy cake mixes in the 6// market/ There .as initia# concern a"out the
1ua#ity of mixes and the resu#ting effect on the homemaker4s reputation as a "aker/ %!en today there
remains the fee#ing that JscratchK cakes are of specia# 1ua#ity and significance can shou#d "e made
for extra important occasions/ This fee#ing persists in spite of the fact that the uniform 1ua#ity of
resu#ts form a#most a## mixes and the .ide !ariety of f#ours certain#y e1ua#2 if not exceed2 the a"i#ity
of most to "ake from scratch/
uch a cu#tura# phenomenon apparent#y exists in other cu#tures as .e##/ 5hen instant cake mixes
.ere introduced in Bapan2 the consumers4 response .as #ess than enthusiastic/ Cot on#y do Bapanese
reser!e cakes for specia# occasions2 "ut a#so they prefer the cakes to "e "eautifu##y .rapped and
purchased in pastry shops/ The Bapanese homes do not ha!e o!ens/ &n interesting side"ar to this
examp#e is the company4s attempt to correct for that pro"#em "y de!e#oping a cake mix that cou#d "e
cooked in a rice cooker2 .hich a## Bapanese homes ha!e/
11'
The pro"#em .ith that idea .as that in a Bapanese kitchen rice and the manner in .hich it is cooked
has strong cu#tura# o!ertones2 and to use the rice cooker to cook something other than rice is a rea#
ta"oo/
%xamp#es are typica##y gi!en a"out cu#tures other than &merican2 "ut the need for cu#tura# adaptation
is often necessary .hen a foreign company markets a product in the 6nited tates/ & ma0or Bapanese
cosmetics company2 hiseido2 attempted to "reak into the 6// cosmetic market .ith the same
products so#d in Bapan/ &fter introducing them in more than ,00 6// stores2 the company rea#i;ed
that &merican taste in cosmetic is !ery different form Bapanese/ The pro"#em .as that hiseido4s
make up re1uired a time consuming series of steps2 a point that does not "other Bapanese .omen/
uccess .as attained after designing a ne. #ine of cosmetics as easy to use as &merican products/
The pro"#ems of adapting a product to se## a"road are simi#ar to those associated .ith the
introduction of a ne. product at home/ (roducts are not measured so#e#y "y their physica#
specifications/ The nature of the ne. product is in .hat it odes to and for the customer to ha"its2
tastes2 and patterns of #ife/ The pro"#ems i##ustrated in the cake mix examp#e ha!e #itt#e to do .ith
the physica# product or the user4s a"i#ity to make effecti!e use of it2 "ut more .ith fact that
acceptance and use of he cakes mixes .ou#d ha!e re1uired upsetting "eha!iour patterns considered
correct or idea#/
5hat significance2 outside its intended use2 might a product ha!e in a different cu#tureF 5hen
product acceptance re1uires changes in patterns of #ife2 ha"its2 or taste2 the understanding of ne.
ideas2 the acceptance of the difficu#t to "e#ie!e2 or the ac1uisition of comp#ete#y ne. tastes or ha"its2
specia# emphasis must "e used to o!ercome natura# resistance to change/
Innovative Products and Adaptation
&n important first step in adapting a product to a foreign market is to determine the degree of
ne.ness as percei!ed "y the intended market/ Do. peop#e react to ne.ness and ho. ne. product is
to market must "e understood/ In e!a#uating the ne.ness of a product2 the internationa# marketer
must "e .are that many products successfu# in the 6nited tates2 ha!ing reached the maturity or
e!en dec#ine stage in their #ife cyc#es2 may "e percei!ed as ne. in another country or cu#ture and
120
thus must "e treated as inno!ations/ >rom a socio#ogica# !ie.point2 any idea percei!ed as ne. "y a
group of peop#e is an inno!ation/
5hether or not a group accepts an inno!ation2 and the t time it takes to do so2 depends on the
product4s characteristics/ (roducts ne. to a socia# system are inno!ations2 and kno.#edge a"out the
diffusion 8i/e2 the process "y .hich inno!ation spreads9 of inno!ations is he#pfu# in de!e#oping a
successfu# product strategy/ ony4s marketing strategies for the 6// introduction of its (#aysation 2
.ere .e## informed "y its .i#d success achie!ed six months ear#ier during the product4s introduction
in Bapan/ Con!erse#y2 mid 1''0s dips in Bapanese sa#es of &pp#e computers .ere preceded "y dips in
&pp#e4s home 6// market/ Marketing strategies can guide and contro# to a considera"#e extent the
rate and extent of ne. product diffusion "ecause successfu# ne. product diffusion is dependent on
the a"i#ity to communicate re#e!ant product information and ne. product attri"utes/
& critica# factor in the ne.ness of a product is its effect on esta"#ished patterns of consumption and
"eha!iour/
In the preceding cake mix examp#e2 the fancy2 iced cake mix .as a product that re1uired "oth
acceptance of the Jdifficu#t to "e#ie!eK2 that is2 that dried eggs and mi#k are as good in cake as the
fresh products2 and the ac1uisition of ne. ides2 that easy to "ake fancy cakes are not a s#ight to one4s
domestic integrity/ In this case2 the product direct#y affected t.o important aspects of consumer
"eha!iour2 and the product inno!ation met .ith sufficient resistance to con!ince the company
studied the target market "efore introducing the product2 perhaps it cou#d ha!e a!oided the fai#ure/
&nother 6// cake mix company entered the British market "ut carefu##y e#iminated most of the
ne.ness of the product/ Instead of introducing the most popu#ar &merican cake mixes2 the company
asked <00 British house.i!es to "ake their fa!orite cake/ ince the ma0ority "aked a simp#e2 !ery
popu#ar dry sponge cake2 the company "rought to the market a simi#ar easy mix/ The sponge cake
mix represented fami#iar tastes and ha"its that cou#d "e trans#ated into a con!enience item and did
not infringe on the emotiona# aspects of preparing a fancy product for specia# occasions/
Conse1uent#y2 after a short period of time2 the second company4s product gained 30 to 3< per cent of
the British cake mix market/ Ance the idea of a mix for sponge cake .as accepta"#e2 the introduction
of other f#a!ours "ecame easier/
121
The goa# of a foreign marketer is to gain product acceptance "y the #argest num"er of consumers in
the market in the shortest span of time/ &#though they may u#timate#y "e accepted2 the time it takes
for a cu#ture to #earn ne. .ays2 to #earn to accept a ne. for in!estment and profita"i#ity/ If a
marketer in!ests .ith the expectation that a !enture .i## "reak e!en in three and it takes se!en to
gain profita"#e !o#ume2 the effort may ha!e to "e premature#y a"andoned/ The 1uestion comes to
mind of .hether the pro"a"#e rate of acceptance can "e predicted "efore committing resources and2
more critica##y2 if the pro"a"#e rate of acceptance is too #o.2 .hether it can "e acce#erated/ In "oth
cases2 the ans.er is a 1ua#ified yes/ &ns.ers to these 1uestions come form examining the
&na#y;ing the fi!e characteristics of an inno!ation can assist in determining the rate of acceptance or
resistance of the market to a product/ & product4s 819 re#ati!e ad!antage 8the percei!ed margina#
!a#ue of the ne. product re#ati!e to the o#d9? 829 compati"i#ity 8its compati"i#ity .ith accepta"#e
"eha!iour2 norms2 !a#ues2 and so forth9? 839 comp#exity 8the degree of comp#exity associated .ith
product use9? trai#a"i#ity 8the degree of economic and=or socia# risk associated .ith product use9? and
8<9 o"ser!a"i#ity 8the ease .ith .hich the product "enefits can "e communicated9 affect the degree
of its acceptance or resistance/ In genera#2 it can "e postu#ated that the rate of diffusion is positi!e#y
re#ated to re#ati!e ad!antage2 compa"i#ity2 trai#a"i#ity2 and o"ser!a"i#ity2 "ut negati!e#y re#ated to
comp#exity/
By ana#y;ing a product .ithin these fi!e dimensions2 a marketer can often unco!er perceptions he#d
"y the market that if #eft unchanged2 .ou#d s#o. product acceptance/ Con!erse#y2 if these
perceptions are identified and changed2 the marketer may "e a"#e to acce#erate product acceptance/
The e!a#uator must remem"er that it is the perception of product characteristics "y the potentia#
adopter2 not the marketer that is crucia# to the e!a#uation/ & market ana#yst4s se#f*reference criterion
8@C9 may cause a perceptua# "ias .hen interpreting the characteristics of a product/ Thus2 instead
of e!a#uating product characteristics form the foreign user4s frame of reference2 the marketer might
ana#y;e them form his or her frame of reference2 #eading to a misinterpretation of the product4s
cu#tura# importance/
122
Ance the ana#ysis has "een made2 some of the percei!ed ne.ness or cause for resistance can "e
minimi;ed through adroit marketing/ The more congruent that product perceptions are .ith current
!a#ues2 the #ess resistance there .i## "e and the more rapid product diffusion or acceptance .i## "e/
Production of Innovations
ome consideration must "e gi!en to the in!enti!eness of companies and countries/ >or examp#e2 it
is not surprise that most of the ne. ideas associated .ith the Internet are "eing produced in the
6nited tates/ The 110 mi##ion &merican users of the Internet far out num"er the 1, mi##ion Bapanese
users/ imi#ar#y2 &merica .ins the o!era## @T- expenditure contest/ %xpenditures are a"out the same
across AC%- countries at a"out 2 to 3 percent of +-(2 so &merica4s #arge economy supports t.ice
@T- spending as does Bapan2 for examp#e/ This spending yie#ds a"out three times the 6// patents
granted to &merican firms !ersus Bapanese firms/ Many Bapanese firms take ad!antages of &merican
inno!ati!eness "y esta"#ishing design centers in the 6nited tates most nota"#e are the p#ethora of
auto design centers in southern Ca#ifornia/ &t the same time &merican automo"i#e first ha!e
esta"#ished design centers in %urope/ Indeed2 the >ord Taurus2 the car that sa!ed >ord in the 1',0s2
.as a %uropean design/
123
Global Perspective
Most industry ana#yst remains to "e persuaded that there is a "ig enough market to 0ustify the &*
3,04s T10/2 "i##ion de!e#opment costs/ ome ca## it fo#ie de grandeur a foo#ish expression of
%uropean pride/ &ir"us descri"es it as the Jf#agshipK passenger 0et of he next century that .i## gi!e
the company !ictory o!er its archi!a#2 Boeing/ 5e sha## see/
5hi#e e!eryone is fami#iar .ith most of consumer "rands sa#es of such products and ser!ices do not
constitute the ma0ority of export sa#es for industria#i;ed countries/
The issues of standardi;ation !ersus adaptation ha!e #ess re#e!ance to marketing industria# goods
than consumer goods "ecause there are more simi#arities in marketing products and ser!ices t
"usinesses across country markets than there are differences/ The inherent nature of industria# goods
and the sameness in moti!es and "eha!iour among "usinesses as customers create a market .here
product and marketing mix standardi;ation are commonp#ace/ (hotocopying machines are so#d in
Be#arus for he same reasons as in the 6nited tates7 to make photocopies/ ome minor modification
may "e necessary to accommodate different e#ectrica# po.er supp#ies or paper ma0ority of industria#
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5: International Marketing Communications
goods/ >or industria# products that are "asica##y custom made ma0ority of industria# goods/ >or
industria# products that are "asica##y custom made 8specia#i;ed stee#2 customi;ed machine too#s2 and
so on92 adaptation takes p#ace for domestic as .e## as foreign markets/
T.o "asic factors for greater market simi#arities among industria# goods customers than among
consumer goods customers/ >irst is the inherent nature of the product7 industria# products and
ser!ices are used in the process of creating other goods and ser!ices? consumers are in their fina#
form are consumed "y indi!idua#s/ econd2 the moti!e or intent of he user differs7 industria#
consumers are seeking profit .hereas the u#timate consumer is seeking satisfaction/ These factors
are manifest in specific "uying patterns and demand characteristics2 and in a specia# emphasis on
re#ationship marketing as a competiti!e too#/ 5hether a company is marketing at home or a"road the
differences "et.een "usiness to "usiness and consumer markets merit specia# consideration/
&#ong .ith industria# goods2 "usiness ser!ices are high#y competiti!e gro.th market seeking 1ua#ity
and !a#ue/ Manufactured products genera##y come to mind .hen .e think of internationa# trade/ Uet
the most rapid#y gro.ing sector of 6/ firms in g#o"a# markets/ The intangi"i#ity of ser!ices
accounting2 ad!ertising2 "anking2 consu#ting2 construction2 hote#s2 insurance2 #a.2 transportation2 and
tra!e# so#d "y 6/ firms in g#o"a# markets/ The intangi"i#ity of ser!ices creates a set of uni1ue
pro"#ems to .hich the ser!ice pro!ider must respond/ & further comp#ication is a #ack of uniform
#a.s that regu#ate market entry/ (rotectionism2 a#though pre!a#ent for industria# goods2 can "e much
more pronounced forth e ser!ice pro!ider/
This chapter discusses the specia# pro"#ems in marketing goods and ser!ices to "usinesses
internationa##y2 the increased competition and demand for 1ua#ity in those goods and ser!ices2 and
the imp#ications for the g#o"a# marketer/
Demand in Global Business-to-Business Markets
+auging demand in industria# markets can in!o#!e some huge "ets/ Bust ask the fo#k at Iridium ))C
their $2 sate##ite2 T< "i##ion communications system may "e in or"it "ut it doesn4t #ook #ike its going
to f#y/
They "ad#y misca#cu#ated demand for their approach to g#o"a# te#ecommunications2 and the entire
system is current#y in diuse and may "ecome space refuse/ Three factors seem to affect the demand
in internationa# industria# markets different#y than in consumer markets/ >irst2 demand in
12<
internationa# industria# markets is "y nature more !o#ati#e/ econd2 stages of industria# and
economic de!e#opment affect demand for industria# products/ >ina##y2 the #e!e# of techno#ogy of
products and ser!ices makes their sa#es more appropriate for some countries than others/
There are numerous reasons .hy consumer products firms market internationa##y exposure to more
demanding customers2 keeping up .ith the competition2 extending product #ife cyc#es2 and sa#es and
profits2 to name a fe./ >or firms production products a"oard7 dampening the natura# !o#ati#ity of
industria# markets/ Indeed2 perhaps the sing#e most important difference "et.een consumer and
industria# marketing is the huge2 cyc#ica# s.ings in demand inherent in the #atter/ It is true that
demand for consumer dura"#es such as cars2 furniture2 or home computers can "e 1uite !o#ati#e/ In
industria# markets2 ho.e!er2 t.o other factors come into p#ay that exacer"ate "oth the ups and
do.ns in demand7 professiona# "uyers tend to act in concert2 and deri!ed demand acce#erates
changes in markets/
(urchasing agents at #arge persona# computer manufacturers such as IBM2 &pp#e2 &ccer2 amsung
and Toshi"a are responsi"#e for o"taining component parts for their firms as cheap#y as possi"#e and
in a time#y manner/ They monitor demand for (Cs and prices of components such as
microprocessors or disk dri!es2 and changes in either costumer markets or supp#ier prices direct#y
affect their ordering/ -ec#ines in (C demand or supp#ier prices can cause these professiona#s to s#am
on the "rakes in their "uying? in the #atter case they .ait for further price cuts/ &nd "ecause the
purchasing agents at a## the (C companies2 here and a"road are monitoring the same data2 they a##
"rake 8or acce#erate9 simu#taneous#y/ Consumers monitor markets as .e##2 "ui#t not near#y to the
same degree/ (urchases of co#a and cars tend to "e steadier/
>or managers se##ing capita# e1uipment and "ig*ticket industria# ser!ices2 understanding the concept
of deri!ed demand is a"so#ute#y fundamenta# to their success/ -eri!ed demand can "e defined as
demand dependent on another source/ Thus2 the demand for Boeing $4$s is deri!ed from the
.or#d.ide consumer demand for air tra!e# ser!ices2 and the demand for >#our -anie#4s g#o"a#
construction and engineering ser!ices to design and "ui#d oi# refineries in china is deri!ed from
Chinese consumers4 fends for gaso#ine/ Minor changes in consumer demand mean ma0or changes in
the re#ated industria# demand/ The 1< per cent dec#ine in consumer demand in year < resu#ts in a
comp#ete shutdo.n of demand for sho.er sta## making machines/ >or Boeing circa 1'',2 &sian
financia# pro"#ems direct#y caused reductions in air tra!e# 8"oth !acation and commercia#9 to and
126
.ithin the region2 .hich in turn caused cance##ations of orders for aircraft2 indeed2 the commercia#
aircraft industry has a#.ays "een and .i## continue to "e one of the most !o#ati#e of a##/
Industria# firms can take se!era# measures to manage this inherent !o#ati#ity2 such as maintaining
"road product #ines2 raising prices faster and reducing ad!ertising expenditures during "ooms2 or
ignoring market share as a strategic goa# and focusing on sta"i#ity/ >or most &merican firms2 .here
corporate cu#tures emphasi;e "eating competitors2 such sta"i#i;ing measures are usua##y gi!en on#y
#ip ser!ice/ Con!erse#y2 +erman and Bapanese firms !a#ue emp#oyees and sta"i#ity more high#y and
are genera##y "etter at managing !o#ati#ity in markets/
ome 6// companies2 such as Boeing2 Inte#2 and Microsoft2 ha!e "een 1uite good at spreading their
portfo#io of markets ser!ed/
)ate 1''0s dec#ines in &sian markets .ere some.hat offset "y strong &merican markets2 0ust as #ate
1',0s increases in Bapanese demand had offset dec#ines in the 6nited tates/ Indeed one of the
strange disad!antages of ha!ing the precious#y command economies go pri!ate in their integration
into the g#o"a# market/ That is2 prior to the "reakup of the 6@2 o!iets "ought industria# outside of
he communist "#oc/ Their off cyc#e ordering tended to dampen demand !o#ati#ity for companies a"#e
to se## there/ Co. pri!ate#y he#d @ussian manufacturers .atch and react to .or#d markets 0ust as
their counterparts do a## o!er the g#o"e/ The increasing g#o"a#i;ation of markets .i## tend to increase
the !o#ati#ity in industria# markets as purchasing agents around the .or#d act .ith e!en greater
simu#taneity/ Managing this inherent !o#ati#ity .i## necessari#y affect a## aspects of the marketing
mix2 inc#uding products=ser!ice de!e#opment/
Because an industria# product is purchased for "usiness use and sought not as an entity in itse#f "ut
as part of a tota# process2 the "uyer p#aces high !a#ue on ser!ice dependa"i#ity2 1ua#ity2 performance2
and cost/ in internationa# marketing2 these features are comp#icated "y cu#tura# and en!ironmenta#
differences2 inc#uding !ariations in industria# de!e#opment found among countries/
(erhaps the most significant en!ironmenta# factor affecting the industria# goods market is the degree
of industria#i;ation/ &#though genera#i;ing a"out countries is a#most a#.ays impendent2 the degree of
economic de!e#opment in a country can "e used as a rough gauge of the market for industria# goods/
Because industria# goods are products for industry2 there is a #ogica# re#ationship "et.een the degree
of economic de!e#opment and the character of demand for industria# goods ground .ithin a country/
12$
@eca## @osto.4s fi!e*stage mode# of economic de!e#opment/ -emand for industria# products can "e
c#assified corresponding#y/
The first stage of de!e#opment 8i/e/2 the traditiona# society9 is rea##y a preindustria# or precommercia#
stage .ith #itt#e or no manufacturing and an economy a#most .ho##y "ased on the exp#oitation of ra.
materia#s and agricu#tura# products/ The demand for industria# products is confined to #imited range
of goods used in the simp#e production of the country4s resources2 that is2 the industria# machinery2
e1uipment2 and goods re1uired in the production of these resources/ -uring this stage2 a
transportation system de!e#ops that creates a market for high#y specia#i;ed and expensi!e
construction e1uipment that must "e imported/
The second stage 8preconditions for take*off9 ref#ects the de!e#opment of primary manufacturing
concerned .ith the partia# processing of ra. materia# and resources2 .hich in stage 1 .ere shipped
in ra. form/ &t this #e!e#2 demand is for the machinery and other industria# goods necessary for
processing ra. materia#s prior to exporting/ >or examp#e2 in outh &frica there is demand for hea#th
ser!ices2 construction e1uipment2 te#ecommunications e1uipment2 mining and processing faci#ities2
po.er generating e1uipment2 and technica# expertise and training for most of the "asic industries/
The third stage of de!e#opment 8take off9 is characteri;ed "y the gro.th of manufacturing faci#ities
for nonduara"#e and semi dura"#e consumer goods/ +enera##y2 the industries are sma##2 #oca#
manufacturers of consumer goods ha!ing re#ati!e mass appea#/ In such cases2 the demand for
industria# products extends to entire factories and the supp#ies necessary to support manufacturing/
Most of the eastern %uropean countries2 such as @ussia2 @omania and 6kraine fit this category/
)i"eria is another country at this stage of de!e#opment/
The )i"erian de!e#opment corporation has "een focusing attention on de!e#oping same and medium
si;ed industries2 such as shoe factories and "attery and nai# manufacturing this degree of
industria#i;ation re1uires machinery and e1uipment to "ui#d and e1uip the factories and supp#ies to
keep machinery and e1uipment imports form the 6nited tates are construction and mining
e1uipment2 motor !ehic#es and parts2 meta# structures and parts2 and manufactured ru""er goods/
12,
& country at stage 4 8dri!e to maturity9 is a .e##*industria#i;ed economy/ This stage ref#ects the
production of capita# goods as .e## as consumer goods2 inc#uding products such as automo"i#es2
refrigerators2 and machinery/ %!en though the country produces some industria# goods2 it sti## needs
to import more specia#i;ed and hea!y capita# e1uipment not yet produced there "ut necessary for
domestic industry/ (arts of %astern %uropean typify countries at this stage for examp#e2 the C;ech
@epu"#ic2 Dungary2 (o#and and %stonia/ The needs of their industria# "ase ref#ect ma0or
re!ita#i;ation2 creating an enormous market as they turn form socia#ist managed to market dri!en
economies/
&nother category of countries in this fourth stage is the ne.#y industria#i;ed countries 8CICs92 many
of .hich .ere in stages 1 or 2 0ust a fe. decades ago/ outh Morea for examp#e2 has risen form a
.ar torn economy to a ma0or competitor in .or#d markets2 offering an e!er increasing num"er of
industria# and consumer products/ %!en though outh Morea is a ma0or exporter of high tech goods
such as petrochemica#s2 e#ectronics2 machines2 automo"i#es and stee#2 it is dependent more
industria#i;ed countries for industria# too#s2 commercia# aircraft2 information systems2 and other
techno#ogica##y ad!anced products not priest#y produced in outh Morea "ut necessary to sustain its
expanding manufacturing "ase/ a#es form &merican industria# supp#iers such as Boeing2 Cisco
ystems2 and Inte# suffered su"stantia##y .hen outh Morea gro.th nose*di!ed in 1''$/
The fifth stage of economic de!e#opment 8the age of mass consumption9 signifies comp#ete
industria#i;ation and genera##y indicates .or#d #eadership in the production of a #arge !ariety of
goods/ Many of the industria# goods that had "een purchased form others are no. produced
domestica##y/ Countries that ha!e achie!ed this #e!e# typica##y compete .or#d.ide for consumer and
industria# goods markets/
Bapan2 the 6nited tates2 and +ermany ha!e a## reached the fifth stage of industria# de!e#opment2 and
a#though they are industria#i;ed economies2 there is sti## the need to import goods/ Countries in this
category are markets for ht e #atest techno#ogy as .e## as for #ess sophisticated products that can "e
produced more economica##y in other countries/ -emand is found for te#ecommunication e1uipment2
computer chips2 e#ectronic fork#ifts and #athes/ Do.e!er2 products on the cutting edge of techno#ogy
and goods produced in the most cost effecti!e manner are the important differentia# ad!antages for
companies competing for market demand in countries in the fifth stage/ Indeed2 information
techno#ogy exports are he#ping maintain .or#d economic #eadership .e## into the 21
st
century/
12'
uccess in a fierce#y competiti!e g#o"a# market for industria# goods depends on "ui#ding an edge in
science and techno#ogy/ The industria#i;ation of many countries in stages 1 to 4 creates enormous
demand for goods produced "y firms in the most ad!anced stages of technica# de!e#opment/
&utomated machines that .ire 640 circuits in an hour are phasing out the &sian .orker .ho can
.ire 1220 integrated circuits for semiconductor chips in one hour/ &s techno#ogy de!e#ops2 countries
that ha!e "een re#ying on cheap #a"or for a competiti!e ad!antages ha!e to shift to more
sophisticated machines2 thus creating markets for products from more techno#ogica##y ad!anced
countries/
The Message: Creative Challenges
Internationa# communications may fai# for a !ariety of reasons/ & message may not get through
"ecause of media inade1uacy2 the message may recei!ed "y the intended audience "ut not "e
intended audience and "e understood "ut ha!e no effect "ecause the marketer did not correct#y assess
the needs and .ants or e!en the thinking processes of the target market/
The effecti!eness of promotiona# strategy can "e 0eopardi;ed "y so many factors that a marketer
must "e certain no contro##a"#e inf#uences are o!er#ooked/ Those internationa# executi!es .ho
understand the communications process are "etter e1uipped to manage the di!ersity they face in
de!e#oping an internationa# promotiona# program/
In the internationa# communications process2 each of the se!en identifia"#e steps can u#timate#y
affect the accuracy of the process/
1/ &n information source/ &n internationa# marketing executi!e .ith a product message to
communicate/
2/ %ncoding/ The message forms the con!erted into effecti!e sym"o#ism for transmission to a
recei!er/
3/ -ecoding/ The interpretation "y the recei!er of the sym"o#ism transmitted from the
information source/
4/ @ecei!er/ Consumer action "y those .ho recei!e the message and are the target of the
thought transmitted/
</ >eed"ack/ Information a"out the effecti!eness of the message that f#o.s from the recei!er
8the intended target9 "ack to the information source for e!a#uation of the effecti!eness of the
process
130
6/ & message channe#/ The sa#es force=or ad!ertising media that con!ey the encoded message to
the intended recei!er
$/ Coise/ 6ncontro##a"#e and unpredicta"#e inf#uences such as competiti!e acti!ities and
confusion that detract form the process and affect any or a## of he other six steps/
6nfortunate#y2 the process is not as simp#e as 0ust sending a message !ia a medium to a recei!er and
"eing certain that the intended message sent is the same one percei!ed "y the recei!er/ Ather.ise2 a
message fa##ing outside the recei!er4s perceptua# fi#ed may transmit an unintended meaning/ It is this
area that e!en the most experienced companies make "#unders/
Most promotiona# misfires or mistakes in internationa# marketing are attri"uta"#e to one or se!era# of
these steps not proper#y ref#ecting cu#tura# inf#uences or to a genera# #ack of kno.#edge a"out the
target market/ The product message to "e con!eyed shou#d ref#ect the needs and .ants of the target
market? ho.e!er2 often the actua# market "ends and the marketer4s perception of them do not
coincide/ This is especia##y true .hen the marketers re#ies more on the se#f*reference criterion 8@C9
than on effecti!e research/ It can ne!er "e assumed that Jif it se##s .e## in one country2 it .i## se## in
another/K for instance2 "icyc#es designed and so#d in the 6nited tates to consumers fu#fi##ing
recreationa# exercise needs are not so#d as so#d as effecti!e#y for the same reason in a market .here
the primary use of the "icyc#e is transportation/ Ca!ity reducing f#uoride toothpaste se##s .e## in the
6nited tates2 .here hea#thy teeth are percei!ed as important2 "ut has #imited appea# in markets such
as +reat Britain and the >rench areas of Canada2 .here the reason for "uying toothpaste is "reath
contro#/ >rom the set of the communications process2 if "asic needs are incorrect#y defined2
communications fai# "ecause an incorrect or meaning#ess message is recei!ed e!en though the
remaining steps in the process are executed proper#y/
The encoding step causes pro"#ems e!en .ith a JproperK message/ &t this step such factors as co#or2
timing2 !a#ues2 "e#iefs2 humor and tastes can cause the internationa# marketers to sym"o#i;e the
message incorrect#y/ >or examp#e2 the marketer .ants the product to con!ey coo#ness so the co#or
green is used? ho.e!er2 peop#e in the tropics might decode green as dangerous or associate it .ith
disease/ &nother examp#e of the encoding process misfiring .as a perfume presented against a
"ackdrop of rain that2 for %uropeans2 sym"o#i;ed a c#ean2 coo#2 refreshing image2 "ut to &fricans .as
sym"o# of ferti#ity/ The prompted many !ie.ers to ask if the perfume .as effecti!e against
inferti#ity/
131
-eBeers2 outh &frica -iamond Company2 found that its sty#ish ads depicting shado. figures
con!eying engagement2 .edding2 and anni!ersary gifts of diamonds .ith ghosts and death/ & tota##y
different ad .as de!e#oped for the Chinese market/ In some Mus#im countries the ads had to "e
a#tered so that shado.s sho.ed si#houettes of .omen .earing !ei#s2 rather than the "arefaced
.omen shado.s are sho. in 5estern markets/
(ro"#ems of #iteracy2 media2 media a!ai#a"i#ity2 and types of media create pro"#ems in the
communications process at the encoding step/ Message channe#s must "e carefu##y se#ected if an
encoded message is to reach the consumer/ %rrors such as using te#e!ision as a medium .hen on#y a
sma## percentage of an intended market is exposed to TH2 or using print media for a channe# of
communications .hen the ma0ority of the intended users cannot read or do not read the #anguage in
the medium2 are examp#es of infecti!e media channe# se#ection in the communications process/
Improper encoding2 .hich caused such errors as (epsi4s Jcome &#i!eK s#ogan "eing decoded as
JCome out of the gra!eK genera##y2 creates decoding pro"#ems/ Che!ro#et4s "rand name for the Co!a
mode# 8.hich means ne. star9 .as decoded into panish as Co HaQ 2 meaning Jit doesn4t goK/ In
another misstep2 a trans#ation that .as supposed to "e decoded as Jhydrau#ic ramK .as instead
decoded as J.et sheepK/ In a Cigerian ad2 a p#atinum "#onde sitting next to the dri!er of a @enau#t
.as intended to enhance the image of the automo"i#e/ Do.e!er the mode# .as percei!ed as not
respecta"#e and so created a fee#ing of shame/ &n ad used for e!eryday energi;er "atteries .ith the
energi;er "unny .as seen "y Dungarian consumers as touting a "unny toy2 not a "attery/
-ecoding errors may a#so occur accidenta##y/ uch .as the case .ith Co#gate (a#mo#i!e4s se#ection
of the "rand name Cue for toothpaste/ The "rand name .as not intended to ha!e any sym"o#ism?
ne!erthe#ess2 the >rench into a pornographic .ord instead decoded it/ In some cases2 the intended
sym"o#ism has no meaning to the decoder/ In an ad transferred form the 6nited tates2 the irony of
tough guy actor Tom e##eck standing atop a mountain .ith a steaming mug of )ipton tea .as #ost
on %astern %uropeans/ %rrors at the recei!er end of the process genera##y resu#t form a com"ination
of factors? an improper message resu#ting form incorrect kno.#edge of use patterns2 poor encoding
producing a meaning#ess message2 poor media se#ection that does not get the message to the
recei!er2 or inaccurate decoding "y the recei!er so that the message is gar"#ed or incorrect/
132
>ina##y2 the feed"ack step of the communications process is important as a check on the effecti!eness
of he other steps/ Companies that do not measure their communications efforts are apt to a##o. errors
of source2 encoding2 media se#ection2 decoding2 or recei!er to continue #onger than necessary/ In fact2
proper feed"ack system 8ad testing9 a##o.s a company to correct errors "efore damage occurs/
In addition to the pro"#ems in the steps out#ined2 the effecti!eness of the internationa#
communications process can "e impaired "y noise comprises a## other externa# inf#uences2 such as
competiti!e ad!ertising2 other externa# inf#uences2 such as competiti!e ad!ertising2 other sa#es
personne#2 and confusion at the recei!ing end2 that can detract form the u#timate effecti!eness of the
communication/ Coise is a disrupti!e force interfering .ith the process at nay step and is fre1uent#y
"eyond the contro# of the sender or the recei!er/
The mode#4s significance is that one or a## steps in the/
process2 cu#tura# factors or the market4s @C can affect the u#timate success of he communication/
for examp#e2 the message2 encoding2 media2 and the intended can "e designed perfect#y "ut eh
ina"i#ity of he recei!er to decode may render the fina# message inoperati!e/ in de!e#oping
ad!ertising messages2 the internationa# marker can effecti!e#y use this mode# as a guide to he#p
ensure that a## potentia# constraints and pro"#ems are considered so that the fina# communication
recei!ed and the action taken correspond .ith the intent of the source/
The gro.ing intensity of internationa# competition2 coup#ed .ith the comp#exity of mu#tinationa#
marketing2 demands that the internationa# ad!ertiser function at the high.est creati!e #e!e#/ The
creati!e task is made more daunting "y other kinds of "arriers to effecti!e communications #ega#2
#inguistic2 cu#tura#2 media2 production2 and cost considerations/
/
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Personal Selling and Sales Management
The sa#esperson is a company4s most direct tie to the consumer? in the eyes of most customers2 the
person is the company/ &s presenter of company offerings and gatherer of customer information2 the
sa#es representati!e is the fina# #ink in the cu#mination of a company4s marketing and sa#es effort/
Increased g#o"a# competition coup#ed .ith the dynamic and comp#ex nature of internationa# "usiness
increases "oth the need and the means for c#oser ties .ith "oth customers and supp#ier/ @e#ationship
marketing2 "ui#t on effecti!e communications "et.een the se##er and "uyer2 focuses on "ui#ding
#ong*term a##iances rather than treating each sa#e as a one*time e!ent/ &d!ances in information
techno#ogy are a##o.ing for increasing#y higher #e!e#s of coordination across ad!ertising in customer
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re#ationship management se##ing efforts2 yie#ding ne. ro#es and functions in customer re#ationship
management 8C@M9/ imi#ar#y2 such ad!ances are changing the nature of persona# se##ing and sa#es
management2 #eading some to forecast su"stantia# reductions in fie#d sa#es efforts/
In this e!er*changing en!ironment of internationa# "usiness2 the tasks of designing2 "ui#ding2
training2 moti!ating2 and compensation an internationa# sa#es group generate uni1ue pro"#ems at
e!ery stage of management and de!e#opment/ This chapter discusses the a#ternati!es and pro"#ems
of managing sa#es and marketing personne# in foreign countries/ Indeed2 these pro"#ems are among
the most difficu#t facing internationa# marketers/ In one sur!ey of C%As and other top executi!es2 the
respondents identified Jesta"#ishing sa#es and distri"ution net.orksK and cu#tura# differencesK as
ma0or difficu#ties in internationa# sa#es and operations/
Designing the Sales Forces
The first step in managing a sa#e force is its design/ Based on ana#yses of current and potentia#
customers2 the se##ing en!ironment2 competition2 and the firm4s resources and capa"i#ities2 decisions
must "e made regarding the num"ers2 characteristics2 and assignments of sa#es personne#/ &## these
design decisions are made more cha##enging "y the .ide !ariety of pertinent conditions and
circumstances in internationa# markets/ Moreo!er2 the g#o"a#i;ation of market and customers/ e##ing
high techno#ogy products may a##o. for ht greater use of &merican expatriates2 .hereas se##ing
consu#ting ser!ices .i## tend to re1uire more participation "y nati!e sa#es representati!es/ e##ing in
#o. context 8indi!idua#istic=ega#itarian9 cu#tures such as +ermany may a#so a##o. for greater use of
expatriates/ Do.e!er2 high context 8co##ecti!istic=hierarchica#9 countries such as Bapan .i## re1uire
the most comp#ete #oca# kno.#edge possessed on#y "y nati!es/ 5riting a"out Bapan2 t.o
internationa# marketing experts agree7 Jpersona# se##ing as a ru#e has to "e #oca#i;ed for e!en most
g#o"a# corporations and industries/
Ance decisions ha!e "een made a"out ho. many expatriates2 #oca# nationa#s2 or third country
nationa#s a particu#ar market re1uires2 then more intricate aspects of design can "e undertaken2 such
as territory a##ocation and customer ca## p#ans/ Many of the most ad!anced operations research too#s
de!e#oped in the 6nited tates can "e app#ied in foreign markets2 .ith appropriate adaptation of
inputs2 of course/ >or examp#e2 one co company has pro!ided too#s to he#p internationa# firms create
"a#anced territories and find optima# #ocations for sa#es offices in Canada2 Mexico2 and &ustra#ia/
Do.e!er2 the use of such high tech resource a##ocation too#s re1uires intricate kno.#edge of not on#y
13<
geographica# detai#s "ut a#so appropriate ca## routines/ Many things can differ across cu#tures #ength
of sa#es cyc#es2 the kinds of customer re#ationship2 and the kinds of interactions .ith customers/
Indeed2 more than one study has identified su"stantia# differences in the importance of referra#s in
the sa#es of industria# ser!ices in Bapan !is*V*!is the 6nited tates/
The imp#ications are that in Bapan sa#es ca##s "e made not on#y on customers2 "ut a#so on the key
peop#e2 such as "ankers2 in the a## important referra# net.orks/
Recruiting Marketing and Sales Personnel
The num"er of marketing management personne# form the home country assigned to foreign
countries according to the si;e of the operation and the a!ai#a"i#ity of 1ua#ified #oca#s/ Increasing#y2
the num"er of 6/ home country nationa#s 8expatriates9 assigned to foreign posts is sma##er as the
poo# of trained2 experienced #oca#s gro.s/ The #argest personne# re1uirement a"oard for most
companies is the sa#es force2 recruited form three sources7 expatriates2 #oca# nationa#s2 and third
country nationa#s/ a company4s staffing pattern may inc#ude a## three types in any sing#e foreign
operation2 depending on 1ua#ifications2 a!ai#a"i#ity2 and a company4s needs/ a#es and marketing
executi!es can "e recruited !ia the traditiona# media of ad!ertising 8inc#uding ne.spapers2
maga;ines2 0o" fairs2 and the internet92 emp#oyment agencies or executi!e search firms2 and the a##*
important persona# referra#s/ The #ast source .i## "e crucia# in many foreign countries2 particu#ar#y
the high*context ones/
Expatriates
The num"er of companies re#ying on expatriate personne# is dec#ining as the !o#ume of .or#d trade
increases and as more companies use #oca#s to fi## marketing positions/ Do.e!er2 .hen products are
high#y technica#2 or .hen se##ing re1uires an extensi!e "ackground of information and app#ications2
an expatriate sa#es force remains the "est choice/ The expatriate sa#esperson may ha!e the
ad!antages of greater technica# training2 "etter kno.#edge of the company and its product #ine2 and
pro!en dependa"i#ity/ Because they are not #oca#s2 expatriates sometimes add to the prestige of the
product #ine in the eyes of foreign customers/ &nd perhaps most important2 expatriates usua##y are
a"#e to effecti!e#y communicate .ith and inf#uence head1uarters personne#/
The chief disad!antages of an expatriate sa#es force are the high cost2 cu#tura# and #ega# "arriers2 and
the #imited num"er of high*ca#i"er personne# .i##ing to #i!e a"road for extended periods/ Companies
136
in the 6nited tate are finding it difficu#t to persuade outstanding emp#oyees to take o!erseas posts/
%mp#oyees are re#uctant to go a"oard for many reasons7 some find it difficu#t to uproot fami#ies for a
t.o or three year assignment2 increasing num"ers of dua# career coup#es often re1uire finding
suita"#e 0o"s for spouses2 and many executi!es "e#ie!e such assignments impede their su"se1uent
promotions at home/ @eca## the comments of the executi!es in the +#o"a# (erspecti!e/ The #oss of
!isi"i#ity at corporate head1uarters p#us the "e#ief that Jout of sight is out of mindK are ma0or reasons
for the re#uctance to accept a foreign assignment/ Companies .ith .e##*p#anned career de!e#opment
programs ha!e the #east difficu#ty? indeed2 the "est internationa# companies make it crysta# c#ear that
a ticket to top management is an o!erseas stint/ Morn=>erry Internationa# reports in its most recent
sur!ey of $< senior executi!es form around the .or#d that Jinternationa# experienceK is the attri"ute
identified as second most important for C%As experience in marketing and finance positions .ere
first and third2 respecti!e#y/
%xpatriates commit to foreign assignments for !arying #engths of time2 from a fe. .eeks or months
to a #ifetime/ ome expatriates ha!e one*time assignments 8.hich may #ast for years92 after .hich
they are returned to the parent company? others are essentia##y professiona# expatriates2 .orking
a"road in country after country/ ti## another expatriate assignment is a career #ong assignment to a
gi!en country or region? this is #ike#y to #ead to assimi#ation of the expatriate into the foreign cu#ture
to such an extent that the person may more c#ose#y resem"#e a #oca# than an expatriate/
Because expatriate marketing personne# are #ike#y to cost su"stantia##y more than #oca#s2 a company
must "e certain of their effecti!eness/
More and more &merican companies are taking ad!antage of &merican emp#oyees .ho are f#uent in
#anguages other than %ng#ish/ >or examp#e2 many 6// citi;ens speak panish as their first #anguage/
The #arge num"er of (uerto @icans .orking &merican mu#tinationa#s in p#aces #ike Mexico City is
.e## documented/ @ecent immigrants and their sons and daughter .ho #earn their parents4 #anguage
and "oth their nati!e cu#tures .i## continue to "e in!a#ua"#e assets for firms .ishing to enter such
markets/ Certain#y ethic Chinese and Hietnamese &mericans are ser!ing as cu#tura# "ridges for
commerce .ith those t.o nations/ Indeed2 throughout history commerce has a#.ays fo##o.ed
immigration/
13$
Virtual Expatriates
The Internet and other ad!ances in communications techno#ogies2 a#ong .ith the gro.ing re#uctance
of executi!es to mo!e a"oard2 are creating a ne. "reed of expatriate2 the !irtua# one/ &ccording to a
price.ater DouseCoopers sur!ey of 2$0 organi;ations2 there has "een a su"stantia# increase in
shorter term2 commuter and !irtua# assignments since 1''$/ Hirtua# expatriates manage operations in
other countries2 "ut don4t mo!e there/ They stay in hote#s2 make #ong !isits and maintain their
fami#ies at home/ ome spend up to $< percent of their .orking time tra!e#ing/ Cone #ea!e home
.ithout the u"i1uitous #aptop and ce## phone/
C#ose contact .ith su"ordinates and customers is2 of course2 tougher for !irtua# expatriates/
Moreo!er2 the tra!e# can "e a ki##er that is2 foreign "ugs are often more !iru#ent and easier to catch
on #ong internationa# f#ights 8indeed2 one doctor ca##s airp#anes Jgerm tu"esK92 crime against
expatriates and tra!e#ers in foreign cities is a rea# ha;ard2 and #i!ing in hote#s is #one#y/ Do.e!er2
!irtua# expatriates4 fami#ies don4t ha!e to "e uprooted2 and executi!es can stay in c#oser touch .ith
the home office/ >ina##y2 form the firm4s perspecti!e a !irtua# assignment may "e the on#y option and
often a good .ay to a!oid the extra expenses of an actua# executi!e mo!e/
The historica# preference for expatriate managers and sa#espeop#e form the home country is gi!ing
.ay to a preference for #oca# nationa#s/ >or examp#e2 one study reports that the num"er of 6/M/
Managers and professiona#s on internationa# assignment dropped form a high of 302000 in 1''1 to a
#o. of a"out 222000 in 1''$/ &t the sa#es #e!e#2 the picture is c#ear#y "iased on fa!our of the #oca#s
"ecause they transcend "oth cu#tura# and #ega# "arriers/ More kno.#edgea"#e a"out a country4s
"usiness structure than an expatriate .ou#d "e2 #oca# sa#espeop#e are "etter a"#e to #ead a company
through the ma;e of unfami#iar distri"ution systems and referra# net.orks/ >urthermore2 in some
p#aces there are no. poo#s of 1ua#ified foreign a!ai#a"#e2 .ho cost #ess to maintain than a staff of
expatriates/
In %urope and &sia2 many #oca#s ha!e earned MB& degrees in the 6nited tates? thus2 a firm gets the
cu#tura# kno.#edge of he #oca# meshed .ith an understanding of 6// "usiness management systems/
&#though expatiates4 sa#aries may "e no more than those of their nationa# counterparts2 the tota# cost
of keeping compara"#e groups of expatriates in a country can "e considera"#y higher 8often three
times the expense9 "ecause of specia# cost of #i!ing "enefits2 mo!ing expenses2 taxes2 and other costs
associated .ith keeping an expatriate/
13,
The main disad!antage of hiring #oca# nationa#s is the tendency of head1uarters personne# to ignore
their ad!ice/
%!en though most foreign nationa#s are carefu# to keep re#ationships at the home office .arm2 their
inf#uence is often reduced "y their #imited %ng#ish communications ski##s and #ack of understanding
of ho. office po#itics inf#uence communication ski##s and #ack of understanding of ho. po#itics
inf#uence decision*making/ &nother key disad!antage can "e their #ack of a!ai#a"i#ity? one C%A of a
consu#ting firm that specia#i;es in recruiting managers in china reports that ten openings exist for
e!ery one 1ua#ified app#icant/ Moreo!er2 .hi#e in the 6nited tates it is common practice to hire
a.ay experienced sa#espeop#e form competitors2 supp#iers2 or !endors2 the same approach in other
countries .i## not .ork/ In p#aces #ike Bapan2 emp#oyees are much more #oya# to their companies and
therefore are difficu#t to #ure a.ay e!en for "ig money/ Co##ege recruits can a#so "e hard to hire in
Bapan "ecause the smartest students are hea!i#y recruited can a#so "e hard to hire Bapan "ecause the
smartest students are hea!i#y recruited "y the #argest Bapanese firms/ ma##er firms and foreign firms
are seen in Bapan as much as more risky emp#oyment opportunities/
Ane other consideration makes recruiting of #oca# nationa#s as sa#es representati!es more difficu#t in
many foreign countries/ 5e a## kno. a"out &mericans 3a!ersion to "eing a Jsa#esmanK/ (ersona#
se##ing is often derided as a career and represented in negati!e #ight in &merican media &rthur
Mi##er4s -eath of a a#esman is of course the "est examp#e/ -espite the "ad press2 ho.e!er2 persona#
se##ing is the most common 0o" in the 6nited tates/ Indeed2 the 6nited tates has "een descri"ed as
Ja nation of sa#esmenK/ But2 as negati!e#y as hr se##ing profession is !ie.ed in the 6nited tates2 in
many other countries its !ie.ed in e!en .orse .ays/ (articu#ar#y in the more hierarchica# cu#tures
such as Mexico and Bapan2 sa#es representati!es tend to "e on the "ottom rung of the socia# #adder/
Thus2 it can "e !ery difficu#t indeed to recruit the "rightest peop#e to fi## sa#es positions in foreign
operations/
Third Country Nationals
The internationa#i;ation of "usiness has created a poo# of third country nationa#s 8TCCs292
expatriates form their o.n countries .orking for a foreign company in a third country/ TCCs are a
group .hose nationa#ity has #itt#e to do .ith .here they .ork or for .hom/ &n examp#e .ou#d "e a
+erman .orking in &rgentina for a 6// company/ Distorica##y2 a"oard2 "ut no. a tru#y Jg#o"a#
executi!eK has "egun to emerge/ The recent#y appointed chairman of di!ision of a ma0or Cether#ands
13'
company is a Cor.egian .ho gained that post after stints in the 6nited tates2 .here he .as the
6// su"sidiary4s chairman2 and in Bra;i#2 .here he he#d the position of genera# manager/ &t one
time2 a >renchman2 the .iss su"sidiary "y a -ane2 the +erman su"sidiary "y an %ng#ishman2 the
>rench su"sidiaries "y a .iss2 the Hene;ue#an su"sidiary "y an &rgentinean2 and the -anish
su"sidiary "y -utchman ran Burroughs Corporation4s Ita#ian su"sidiary/
&merican companies often seek TCCs form other %ng#ish speaking countries to a!oid the dou"#e
taxation costs of their &merican managers/ &mericans .orking in pain2 for examp#e2 must pay "oth
panish and 6/ income taxes2 and most &merican firm4s compensation packages for expatriates are
ad0usted according#y/ o gi!en the same pay and "enefits2 it is cheaper for an &merican firm to post
a British executi!e in pain than an &merican/
A!era##2 the de!e#opment to TCC executi!es ref#ects not on#y a gro.ing internationa#i;ation of
"usiness "ut a#so an ackno.#edgement that persona# ski##s and moti!ations are not the exc#usi!e
property of one nation/ TCCs often are sought "ecause they speak se!era# #anguages and kno. an
industry or foreign country .e##/
140
More and more companies fee# that ta#ent shou#d f#o. to opportunity regard#ess of one4s home
country/
The host go!ernment4s attitudes to.ards foreign .orkers comp#icate f#exi"i#ity in se#ecting
expatriate 6// Cationa#s or #oca# nationa#s/ Concerns a"out foreign corporate domination2 #oca#
unemp#oyment2 and other issues cause some countries to restrict the num"er of non*nationa#s
a##o.ed to .ork .ithin the country/ Most countries ha!e specific ru#es #imiting .ork permits for
foreigners to positions that cannot "e fi##ed "y a nationa#/ >urther2 the #a. often #imits such permits
such permits to periods 0ust #ong enough to train a #oca# for a specific position/ uch restrictions
mean that MCC ha!e fe.er opportunities for sending home country personne# to management
positions a"oard/
In ear#ier years2 personne# gained foreign country experience "y "eing sent to #o.er management
positions to gain the necessary training "efore e!entua##y assuming top #e!e# foreign assignments/
Most countries2 inc#uding the 6nited tates2 contro# the num"er of foreign managers a##o.ed to .ork
or train .ithin their "orders/ In one year2 the 6nited tates immigration and Catura#i;ation er!ice
re0ected 3$ of 40 app#ications form %uropean chefs that the Marriott Corporation .anted to "ring the
6nited tates for management training in their 6// hote#s/
Selecting Sales and Marketing Personnel
To se#ect personne# for internationa# marketing positions effecti!e#y2 management must define
precise#y .hat is expected of its peop#e/ & forma# 0o" description can aid management in expressing
#ong*range needs as .e## as current needs/ In addition to descriptions for each marketing position2
the criteria shou#d inc#ude specia# re1uirements indigenous to !arious countries/
(eop#e operating in the country need on#y the attri"utes of effecti!e sa#espersons2 .hereas a
transnationa# manger can re1uire ski##s and attitudes that .ou#d cha##enge a dip#omat/ Internationa#
personne# re1uirements !ary considera"#y/ Do.e!er2 some "asic re1uisites #eading to effecti!e
performance shou#d "e considered "ecause effecti!e executi!es and sa#espeop#e2 regard#ess of .hat
foreign country they are operating in2 share certain persona# characteristics2 ski##s2 and orientations/
141
Maturity is a prime re1uisite for expatriate and third country personne#/ Mangers and sa#es personne#
.orking a"oard typica##y must .ork more independent#y than their domestic counterparts/ The
company must ha!e confidence in their a"i#ity to make decisions and commitments .ithout constant
recourse to thee home office or they cannot "e indi!idua##y effecti!e/
Internationa# personne# re1uire a kind of emotiona# sta"i#ity not demand in domestic positions/
@egard#ess of #ocation2 these peop#e are #i!ing in cu#tures dissimi#ar to their .on? to some extent
they are a#.ays under scrutiny and a#.ays a.are that they are officia# representati!es of the
company a"oard/ They need sensiti!ity to "eha!ioura# !ariations in different countries2 "ut they
cannot "e so hypersensiti!e that their "eha!iour is ad!erse#y affected/
Managers or sa#espeop#e operating in foreign countries need considera"#e "readth of kno.#edge of
many su"0ects "oth on and off the 0o"/ The a"i#ity to speak one or more other #anguages differences
and dea#s effecti!e#y .ith the se##ing situation/
The marketer .ho expects to "e effecti!e in the internationa# marketp#ace needs to ha!e a positi!e
out#ook on an internationa# assignment/
Module 13 Marketing Communications Strategy 5 International Marketing
Communications
(eop#e .ho do not #ike .hat they are doing and .here they are doing it stand #itt#e chance of
success2 particu#ar#y in a foreign country/ >ai#ures usua##y are the resu#t of o!erse##ing the
assignment2 sho.ing the "right side of the picture and not .arning a"out the "#eak side/
&n internationa# sa#esperson must ha!e a high #e!e# of f#exi"i#ity2 .hether .orking in a foreign
country or at home/ %xpatriates .orking in a foreign country must "e particu#ar#y sensiti!e to the
ha"its of ht e market those .orking at home for a foreign company must adapt to the re1uirements
and .ays of the parent company/ uccessfu# adaptation in internationa# affairs is "ased on a
com"ination of attitude and effort/ Carefu# study of the customs of the market country shou#d "e
initiated "efore the marketer arri!es and shou#d "e continued as #ong as there are facets of the cu#ture
that are not c#ear/ Ane usefu# approach is to #isten to the ad!ice of nationa# and foreign
"usinesspeop#e operating in that country/ Cu#tura# empathy is c#ear#y a part of the "asic orientation
"ecause it is un#ike#y that anyone can "e effecti!e if antagonistic or confused a"out the en!ironment/
142
>ina##y2 internationa# sa#es and marketing personne# must "e energetic and en0oy tra!e#/ Many
internationa# sa#es representati!es spend a"out t.o thirds of their nights in hote# rooms around the
.or#d/ +oing through the #ong #ines of customers and immigration after a 1< hour f#ight re1uires a
certain kind of stamina kind of stamina not common#y encountered/ ome e!en argue that fre1uent
#ong f#ights can damage your hea#th/ %!en the seducti!e #ights of (aris nights fade after the fifth
"usiness trip there/
Most of these traits can "e assessed during inter!ie.s and perhaps during ro#e*p#aying exercises/
(aper and penci# a"i#ity2 "iographica# information2 and reference checks are of secondary
importance/ Indeed2 as pre!ious#y mentioned2 in many countries referra#s .i## "e the "est .ay to
recruit mangers and sa#es representati!es2 making reference checks during e!a#uation and se#ection
processes irre#e!ant/
There is a#so e!idence that some traits that make for successfu# sa#es representati!es in the 6nited
tates may not "e important in other countries/ In one study sa#es representati!es in the e#ectronic
industries in Bapan and the 6nited tates .ere compared/ >or the &merican representati!es2 pay and
education .ere "oth found to "e positi!e#y re#ated to performance and 0o" satisfactionF In Bapan they
.ere not/ That is2 the &mericans .ho cared more a"out money and .ere more educated tended to
perform "etter in and "e more satisfied .ith their 0o"s/ Con!erse#y2 the Bapanese sa#es
representati!es tended to "e more satisfied .ith their 0o"s .hen their !a#ues .ere consistent .ith
those of their company/ The fe. systematic studies in this genre suggest that se#ection criteria must
"e #oca#i;ed2 and &merican management practices must "e adapted to foreign markets/
There is a#so e!idence that some traits that make for successfu# sa#es representati!es in the 6nited
tates may not "e important in other countries/ In one study sa#es representati!es in the e#ectronic
industries in Bapan and the 6nited tates .ere compared/ >or the &merican representati!es2 pay and
education .ere "oth found to "e positi!e#y re#ated to performance and 0o" satisfaction/ In Bapan they
.ere not/ That is2 the &mericans .ho cared more a"out money and .ere more educated tended to
perform "etter in and "e more satisfied .ith their 0o"s/ Con!erse#y2 the Bapanese sa#es
representati!es tended to "e more satisfied .ith their 0o"s .hen their !a#ues .ere consistent .ith
those of their company/ The fe. systematic studies in this genre suggest that se#ection criteria must
"e #oca#i;ed2 and &merican management practices must "e adapted to foreign markets/
143
e#ection mistakes are cost#y/ 5hen an expatriate assignment does not .ork out2 hundreds of
thousands of do##ars are .asted in expenses and #ost time/ +etting the right person to hand#e the 0o"
is a#so important in the se#ection of #oca#s to .ork for foreign companies .ithin their home country/
Most de!e#oping countries and many %uropean countries ha!e stringent #a.s protecting .orker4s
right/ These #a.s are specific as to pena#ties for the dismissa# of emp#oyees/ (erhaps Hene;ue#a has
the most stringent dismissa# #egis#ation7 .ith more than three months of ser!ice in the same firm2 a
.orker gets se!erance pay amounting to one month4s p#us an additiona# 1< days4 pay for each year
emp#oyed/ >urther2 after an emp#oyee is dismissed2 the #a. re1uires that person "e rep#aced .ithin
30 days at eh same sa#ary/ Co#om"ia and Bra;i# ha!e simi#ar #a.s that make emp#oyee dismissa# a
high cost proposition/
Impact of cultural values of managing
&fter sa#es force has "een esta"#ished2 next come the tasks of training2 moti!ating2 and contro##ing/
e!era# !ita# 1uestions arise .hen performance these task in other cu#tures/ Do. much does a
different cu#ture affect management practices2 processes2 and concepts common#y used in the 6nited
tatesF (ractices that .ork .e## in the 6nited tates may not "e e1ua##y effecti!e .hen customs2
!a#ues2 conf#ict hand#ing "eha!iours2 and #ifesty#es differ/ Transferring management practices to
other cu#tures .ithout concern for their exporta"i#ity is no #ess !u#nera"#e to ma0or error than
assuming that product successfu# in the 6ntied tates .i## "e successfu# in other countries/
Management concepts are inf#uenced "y cu#tura# di!ersity and must "e e!a#uated in terms of
#aoca#norms/ 5hether or not any sing#e management practice needs adapting depends on the #oca#
cu#ture/ (erhaps peter -ucker put it "est7 different peop#e ha!e to "e managed different#yK/
Because of the un#imited cu#tura# di!ersity in the !a#ues2 attitudes and "e#iefs affecting management
practices2 on#y those fundamenta# premises on .hich 6// management reader4s a.areness of the
need for adaptation of management practices rather than to present a comp#ete discussion of 6//
cu#ture and management "eha!iour/
There are many di!ergent !ie.s reading the most important ideas on .hich normati!e 6// cu#tura#
concepts are "ased/ Those that occurs most fre1uent#y in discussions of cross cu#tura# e!a#uations are
represented "y the fo##o.ing7
144
JMaster of destinyK !ie.point
Independent enterprise as the instrument of socia# action
(ersonne# se#ection and re.ard "ased on merit
-ecisions "ased on o"0ecti!e ana#ysis
5ide sharing in decision making
Ce!er ending 1uest for impro!ement
Competition yie#ding efficiency
The Jmaster of destinyK phi#osophy is fundamenta# to 6// management thought/ imp#y stated2
peop#e can su"stantia##y inf#uence the future? .e are in contro# of our o.n destinies/ This !ie.point
a#so ref#ects the attitudes that a#though #uck may inf#uence an indi!idua#4s future2 on "a#ance2
persistence2 hard .ork2 a commitment to fu#fi## exceptions2 and effecti!e use of time gi!e peop#e
contro# of their destinies/ In contrast2 many cu#tures ha!e a fata#istic approach to #ife/ They "e#ie!e
indi!idua# destiny is determined "y a higher order and that .hat happens cannot "e contro##ed/
In the 6nited tates2 approaches to p#anning2 contro#2 super!ision2 commitment2 moti!ation2
schedu#ing2 and dead#ines are a## inf#uenced "y the concept that indi!idua#s can contro# their futures/
In cu#tures .ith more co##ecti!istic and fata#istic "e#iefs2 these good "usiness practices may "e
fo##o.ed2 "ut concern for the fina# outcome is different/ &fter a##2 if one "e#ie!es the future is
determined "y an uncontro##a"#e higher order2 than .hat difference does indi!idua# effort rea##y
makeF
The acceptance of the idea that independent enterprise is an instrument for socia# action is the
fundamenta# concept of 6/ corporations/ & corporation is recogni;ed as an entity that has ru#es and
continuity of existence2 and is a separate and !ita# socia# institution/ This recognition of he
corporation as an entity can resu#t in strong fee#ings of o"#igation to ser!e the company/ Indeed2 the
company may take precedence o!er fami#y2 friends2 or other acti!ities that might detract form .hat
is "est for the company/ This is in sharp contrast to the attitudes he#d "y Mexicans2 .ho fee# strong#y
that persona# re#ationships are more important in dai#y #ife than the corporation/
Consistent .ith the !ie. that indi!idua#s contro# their .on destinies is the "e#ief that personne#
se#ection and re.ard must "e made on merit/ The se#ection2 promotion2 moti!ation2 or dismissa# of
14<
personne# "y 6// managers emphasi;es the need to se#ect the "est*1ua#ified persona for 0o"s2
retaining them as #ong as their performance meets standards of expectations2 and continuing the
opportunity for up.ard mo"i#ity as #ong as those standards are met/ In other cu#tures .here
friendship or fami#y ties may "e more important than the !ita#ity of the organi;ation2 the criteria for
se#ection2 organi;ation2 and moti!ation are su"stantia##y different form those in 6// companies/ In
some cu#tures2 organi;ations expand to accommodate the maximum num"er of friends and re#ati!es/
If one kno.s that promotions are made on the "asis of persona# ties and friendship rather than on
merit2 fundamenta# moti!ation #e!er is #ost/
The !ery strong "e#iefs in the 6nited tates that "usiness decisions are "ased on o"0ecti!e ana#ysis
and that managers stri!e to "e scientific has a profound effect on the 6// manager4s attitudes
to.ard o"0ecti!ity in decision making and accuracy of data/ 5hi#e 0udgment and intuition are
important criteria for making decisions2 most 6// managers "e#ie!e decisions must "e supported
and "ased on accurate and re#e!ant information/ Thus2 in 6// "usiness2 great emphasis is p#aced on
the co##ection and free f #o. of information to a## #e!e#s .ithin the organisation and on frankness of
expression in the e!a#uation of "usiness opinions or decision/ In other cu#tures2 such factua# and
rationa# support for decisions is not as important? the accuracy of data and e!en the proper reporting
of data are not prime prere1uisites/ >urther2 existing data fre1uent#y are for the eyes of a se#ect fe./
The frankness of expression and openness in dea#ing .ith data characteristics of 6// "usinesses do
not fit easi#y into some cu#tures/
Compati"#e .ith the !ie.s that one contro#s one4s o.n destiny and that ad!ancement is "ased on
merit is the pre!ai#ing idea of .ide sharing in decision*making/ &#though decision making is not a
democratic process in 6// "usinesses2 there is a strong "e#ief that indi!idua# in an organi;ation
re1uire and2 indeed2 need the responsi"i#ity of making decisions for continued de!e#opment/ Thus2
decisions are fre1uent#y decentra#i;ed2 and the a"i#ity as .e## as the responsi"i#ity for making
decisions are high#y centra#i;ed2 in part "ecause of he "e#ief that on#y a fe. in the company ha!e the
right or the a"i#ity to make decisions/
In the Midd#e %ast2 for examp#e2 on#y top executi!es make decisions/
146
& key !a#ue under#ying the &merican "usiness system is ref#ected in the notion of a ne!er depending
1uest for impro!ement/ The 6nited tates has a#.ays "een a re#ati!e#y acti!ist society? in many
.a#ks of #ife2 the pre!ai#ing 1uestion is Jcan it "e done "etterFK thus2 management concepts ref#ects
the "e#ief that change is not on#y norma# "uy a#so necessary2 that nothing is scared or a"o!e
impro!ement/ In fact2 the merit on .hich one achie!es ad!ancement is fre1uent#y tied to one4s
a"i#ity to make impro!ements/ @esu#ts are .hat count? if practices must change to achie!e resu#t2
and then change is in order/ &nother cu#tures2 the strength and po.er of those in command
fre1uent#y rest not on change "ut on the premise that the status 1uo demands sta"#e structure/ To
suggest impro!ement imp#ies that those in po.er ha!e fai#ed? for someone in a #o.er position to
suggest change .ou#d "e !ie.ed as a threat to another4s pri!ate domain rather than as the suggestion
of a #ater and dynamic indi!idua#/
(erhaps most fundamenta# to 5estern management practices is the notion that comp#etion is crucia#
for efficiency2 impro!ement2 and regeneration/ +ordon +ekko put it most "ana##y in the mo!ie 5a##
treet7 Jgreed is goodK/ &dam mith in his 5ea#th of Cations .rote one of the most important
sentences in the %ng#ish #anguage7 J"y pursuing his o.n interest he fre1uent#y promotes that of the
society more effectua##y than .hen he rea##y intended to promote itK/ This is the Jin!isi"#e handK
notion that 0ustifies competiti!e "eha!ior "ecause it impro!es society and its organi;ations/
Competition among sa#es peop#e 8for examp#e2 sa#es contests9 is a good thing "ecause it promotes
"etter indi!idua# performance and conse1uent#y "etter corporate performance/ 5hen companies
compete2 society is "etter off2 according to this reasoning/ Do.e!er2 managers and po#icy makers in
other cu#tures often do not share this Jgreed is goodK !ie./ Cooperation is more sa#ient2 and
efficiencies are attained through reduced transaction costs/ These #atter !ie.s are more pre!a#ent in
co##ecti!istic cu#tures such as China/
The !ie.s expressed here per!ade much of .hat is considered 6// management techni1ue/ They are
part of our se#f*reference criterion 8@C9 and affect out management attitudes and they must "e
considered "y the internationa# marketer .hen de!e#oping and managing an internationa# sa#es force/
14$
Legal Constraints
)a.s that contro# comparati!e ad!ertising !ary country to country in %urope/ In +ermany2 it is
i##ega# to use comparati!e termino#ogy? you can "e sued "y a competitor if you do/ Be#gium and
)uxem"ourg exp#icit#y "an comparati!e ad!ertising2 .hereas it is c#ear#y authori;ed ad!ertising
a##o.s imp#icit comparisons that do not name directi!e co!ering comparati!e ad!ertising a##o.s
comparisons "et.een named products/ The %uropean commission has issued se!era# directi!es to
harmoni;e the #a.s go!erning ad!ertising/
Do.e!er2 mem"er states are gi!en su"stantia# #atitude to co!er issues under their 0urisdiction/ Many
fear that if the #a.s are not harmoni;ed2 mem"er states may c#ose their "orders to ad!ertising that
does not respect their nationa# ru#es/
Comparati!e ad!ertising is hea!i#y regu#ated in other parts of the .or#d2 as .e##/ In &sia2 an
ad!ertisement sho.ing chimps choosing (epsi o!er Cooke .as "anned form most sate##ite
te#e!ision? the phrase Jthe #eading co#aK .as accepted on#y in the (hi#ippines/
14,
6: Wider Issues of Marketing Communications
&n Indian court ordered to cease c#aiming that it4s Ce. (epsodent toothpaste .as J12L "etterK than
the #eading "rand/ Co#gate2 the #eading "rand2 .as ne!er mentioned in the ad!ertisement2 a#though a
mode# .as sho.n mounting the .ord JCo#gateK and the image .as accompanied "y a JtingK sound
recogni;ed in a## Co#gate ads as the ring of confidence/ Banning exp#icit comparisons .i## ru#e out
an effecti!e ad!ertising approach hea!i#y used "y 6/ companies at home and in other countries
.here it is permitted/
& !ariety of restrictions on ad!ertising of specific products exist around the .or#d/ &d!ertising of
pharmaceutica#s is restricted in many countries/ >or examp#e2 critics in Canada comp#ain that #a.s
there ha!en4t "een re!ised in <0 years and ha!e "een rendered o"so#ete "y the ad!ent of TH and
more recent#y the Internet/ Toy2 to"acco2 and #i1uor ad!ertising is restricted in numerous countries/
&d!ertising on te#e!ision is strict#y contro##ed in many countries/ In Mu.ait2 the go!ernment
contro##ed TH net.ork a##o.s on#y 32 minutes of ad!ertising per day2 in the e!ening/ Commercia#s
are contro##ed to exc#ude super#ati!e descriptions2 indecent .ords2 fearfu# or shocking shots2
indecent c#othing or dancing2 contests2 hatred or re!enge shots2 and attacks on competition/ It is a#so
i##ega# to ad!ertise cigarettes2 #ighters2 pharmaceutica#s2 a#coho#2 air#ines2 and choco#ates or other
candy/
There does seem to "e some softening of country #a.s against accessi"i#ity to "roadcast media/
&ustra#ia has ended a "an on ca"#e te#e!ision spots2 and Ma#aysia is considering changing the ru#es
to a##o. foreign commercia#s to air ne.#y #ega#i;ed sate##ite signa#s/ Do.e!er2 .ith rare exceptions2
a## commercia#s on Ma#aysian te#e!ision sti## must "e made in Ma#aysia/
Companies that re#y on te#e!ision infomercia#s and te#e!ision shopping are restricted "y the
#imitations p#aced on the #ength and num"er of te#e!ision commercia#s permitted .hen their
programs are c#assified as ad!ertisements/ The #e!e#s of restrictions in the %uropean Community
!ary .ide#y2 from no ad!ertising on the BBC in the 6nited Mingdom to mem"er states that #imit
ad!ertising to a maximum of 1< percent of programming dai#y/
The Te#e!ision .ithout >rontiers directi!e permits stricter or more detai#ed ru#es to the "roadcasters
under 0urisdiction of each mem"er state/ In +ermany2 for examp#e2 commercia#s must "e spaced at
#east 20 minutes apart and tota# ad time may not exceed 12 minutes per hour/ Commercia# stations in
the 6nited Mingdom are #imited to $ minutes per hour/
14'
Internet ser!ices are especia##y !u#nera"#e as %6 mem"er states decide .hich area of regu#ation
shou#d app#y to these ser!ices/ Barriers to pan*%uropean ser!ices .i## arise if some mem"er states
opt to app#y te#e!ision*"roadcasting ru#es to the Internet .hi#e other countries app#y print media
ad!ertising ru#es/ The good ne.s is that the %6 is addressing the issue of regu#ation of acti!ities on
the Internet/ &#though most of the attention .i## "e focused on domain names and Internet addresses2
the Commission does recognise that on#ine acti!ities .i## "e se!ere#y hampered if su"0ect to
fragmented regu#ation/ ome countries ha!e specia# taxes that app#y structure in &ustria "est
i##ustrates ho. ad!ertising taxation can distort media choice "y changing the cost ratios of !arious
media7 in federa# states2 .ith the exception of Bergen#and and Tyro# there is a 10 per cent tax on ad
inner!ations? for posters2 there is a 10 to 30 percent tax according to state and municipa#ity/ @adio
ad!ertising carries a 10 per cent tax2 except in Tyro#2 .here it is 20 percent/ In a#s"urg2 teiremark2
Marnten2 and Hora#"ert2 there is no tax/ There is a uniform tax a 10 percent tax in Hienna2 20 percent
in Bergen#and and 30 percent is teiermark/ There is no cinema tax in the pother federa# states/
Linguistic Limitations
)anguage is one of the ma0or "arriers to effecti!e communication through ad!ertising/ The pro"#em
in!o#!es different #anguages of different countries2 different #anguages or dia#ects .ithin one
country2 and the su"t#er pro"#ems of #inguistic nuance and !ernacu#ar/ Incautious hand#ing of
#anguage has created pro"#ems in a## countries/ ome examp#es suffice/ Chrys#er Corporation .as
near#y #aughed out of pain .hen it trans#ated its 6// theme that ad!ertised Jdart is po.erK to the
panish2 the phrase imp#ied that "uyers sought "ut #acked sexua# !igor/ The Bacardi Company
concocted fruity "itters .ith a made up name2 pa!ene2 suggesti!e of >rench chic/ Bacardi .ant to
se## the drink in +ermany2 "ut pa!ene is peri#ous#y c#ose to (a!ian2 .hich means J"a"oonK/ &
company marking tomato paste in the Midd#e %ast found that in &ra"ic the phrase Jtomato pasteK
trans#ates as Jto mate g#ueK in panish speaking countries/ The .ord "a## trans#ates in panish as
"o#a2 .hich means "a## in one country2 re!o#ution in another a #ie or fa"rication in another2 and is an
o"scenity in yet another/
Tropicana "rand orange 0uice .as ad!ertised as 0ugo de china in (uerto @ico2 "ut .hen transported
to Miami4s Cu"an it .as china the country and the Cu"ans .ere not in the market for Chinese 0uice/
Ane Midd#e %ast ad!ertisement featured an automo"i#e4s ne. suspension system that2 in trans#ation2
said the car .as Jsuspended form the cei#ingK/ ince there are at #east 30 dia#ects among &ra"
1<0
countries2 there is amp#e room for error/ 5hat may appear as the most o"!ious trans#ation can come
out .rong/ >or examp#e2 Ja .ho#e ne. range of productsK in a +erman ad!ertisement came out as Ja
.ho#e ne. sto!e of productsK/
)anguage raises innumera"#e "arriers that impede effecti!e2 idiomatic trans#ation and there"y
hamper communication/ This is especia##y apparent in ad!ertising materia#s/
&"straction2 terse .riting2 and .ord economy2 the most effecti!e too#s of the ad!ertiser pose
pro"#ems for trans#ators/ Communication is impeded "y the great di!ersity of cu#tura# heritage and
education that exists .ithin countries and .hich causes !arying interpretations of e!en sing#e
sentences and simp#e concepts/
ome companies ha!e tried to so#!e the trans#ation pro"#em "y hiring foreign trans#ators .ho #i!e in
the 6nited tates his often is not satisfactory "ecause "oth the #anguage and the trans#ator change2 so
the expatriate in the 6ntied tate is out of touch after a fe. years/ %!eryday .ords ha!e different
meanings in different cu#tures/ %!en pronunciation causes pro"#ems7 5rig#ey had trou"#e se##ing its
pearmint gum in +ermany unti# it changed the spe##ing to pearmint/
In addition to trans#ation cha##enges #o. #iteracy2 in many countries serious#y impedes
communications and ca##s for greater creati!ity and use of !er"a# media/ Mu#tip#e #anguages .ithin a
country or ad!ertising are pose another pro"#em for the ad!ertiser/ %!en a tiny country such as
.it;er#and has four separate #anguages/ The me#ting pot character of the Israe#i popu#ation accounts
for some <0 #anguages/ & Berusa#em commentor says that e!en through De"re. Jhas "ecome a
negotia"#e instrument of dai#y speech2 this has yet to "e con!erted into ad!ertising idiom2K
ad!ertising communications must "e perfect2 and #inguistic differences at a## #e!e#s cause pro"#ems/
In country testing .ith the target consumer group is the on#y .ay to a!oid such pro"#ems/
Cultural Diversity
The pro"#ems associated .ith communicating to peop#e in di!erse cu#tures present one of the great
creati!e cha##enges in ad!ertising/ Ane ad!ertising executi!e puts it "#unt#y? Jinternationa#
ad!ertising is a#most uniform#y dreadfu# most#y "ecause peop#e don4t understand #anguage and
cu#tureK/ Communication is more difficu#t "ecause cu#tura# factors #arge#y determine the .ay !arious
phenomena are percei!ed/ If the perceptua# frame.ork is different perception of the message itse#f
differs/
1<1
Mno.#edge of cu#tura# di!ersity must encompass the tota# ad!ertising pro0ect/ +enera# Mi##s had t.o
pro"#ems .ith one product/ 5hen it introduced instant cake mixes in the 6nited tates and %ng#and2
it had the pro"#em of o!ercoming the homemaker4s gui#t fee#ings/ 5hen +enera# mi##s introduced
instant cake mixes in Bapan2 the pro"#em changed/ Cakes .ere not common#y eaten in Bapan2 so
there .as no gui#t fee#ing2 "ut the homemaker .as concerned a"out fai#ing/ he .anted the cake mix
as comp#ete as possi"#e/ in testing TH commercia#s promoting the notion that making a cake is as
easy as making rice2 +enera# Mi##s #earned it .as offending the Bapanese homemaker2 .ho "e#ie!es
the preparation of rice re1uires great ski##/
%xisting perceptions "ased on tradition and heritages are often hard to o!ercome/ >or examp#e2
marketing researchers in Dong Mong found that cheese is associated .ith yeung*Uen 8foreigners9
and re0ected "y some Chinese/ The concept of coo#ing and heating the "ody is important IC Chinese/
The concept of coo#ing and heating the "ody is important in Chinese thinking ma#ted mi#k is
considered heating2 .hereas fresh mi#k is coo#ing? "randy is sustaining2 .hiskey harmfu#/
(rocter I +am"#e4s initia# ad!ertisement for pampers "rand diapers fai#ed "ecause of cu#tura#
differences "et.een the 6nited tates and Bapan/ & 6// commercia# that sho.ed an animated stork
de#i!ering pampers diapers to homes .as du""ed into Bapanese .ith the 6// (ackage rep#aced "y
the Bapanese package and .as put on the air/ To (T+4s dismay the ad!ertisement fai#ed to "ui#d the
market/ ome "e#ated consumer research re!ea#ed that consumers .ere confused a"out .hy this "ird
.as de#i!ering disposa"#e diapers/ &ccording to Bapanese fo#k#ore2 giant peaches that f#oat on the
ri!er "ring "a"ies to deser!ing parents2 not storks/
In addition to concerns .ith differences among nations2 ad!ertisers find su"cu#tures .ithin a country
re1uire attention as .e##/ In Dong Mong there are ten different patterns of "reakfast eating/
The youth of a country a#most a#.ays constitute a different consuming cu#ture from the o#der peop#e2
and ur"an d.e##ers differ significant#y from rura# d.e##ers/ Besides these differences2 there is the
pro"#em of changing traditions/ In a## countries2 peop#e of a## ages2 ur"an or rura#2 c#ing toothier
heritage to a certain degree "ut are .i##ing to change some areas of "eha!iour/ & fe. years ago2 it
.as unthinka"#e to try to market coffee in Bapan2 "ut it has "ecome the fashiona"#e drink for younger
peop#e and ur"an d.e##ers .ho #ike to think of themse#!es as %uropean and sophisticated/ Coffee
1<2
drinking in Bapan .as introduced .ith instant .ith coffee2 and there is !irtua##y no market for
anything e#se/
Media Limitations
Media are discussed at #ength #ater2 so here .e note on#y that #imitations on creati!e strategy
imposed "y media may demise the ro#e of ad!ertising in the promotiona# program and may force
marketers to emphasi;e other e#ements of the promotiona# mix/ & marketer4s creati!ity is certain#y
cha##enged .hen a te#e!ision commercia# is #imited to ten sho.ings a year .ith no t.o exposures
c#oser than ten days2 as is the case in Ita#y2 creati!e ad!ertisers in some countries ha!e e!en
de!e#oped their o.n media for o!ercoming media #imitations/ In some &frican countries2 ad!ertisers
run "oats up and do.n the ri!ers p#aying popu#ar music and "roadcasting commercia# into rura#
areas as they tra!e#/
Production and Cost Limitations
Creati!ity is especia##y important .hen a "udget is ma## or .here there are se!ere production
#imitations2 such as poor 1ua#ity printing and a #ack of high*grade paper/ >or examp#e2 the poor
1ua#ity of high circu#ation g#ossy maga;ines and other 1ua#ity pu"#ications in %astern %urope has
caused Co#gate (a#mo#i!e to depart form its customary hea!y use of print media in the 5est fo other
media/ Ce.sprint is of such #o. 1ua#ity in China that a co#or ad used "y Modak in the .est is not an
option/ Modak4s so#ution has "een to print a sing#e sheet markets poses another pro"#em in many
countries/ >oe examp#e2 hand painted "i##"oards must "e instead of printed "ecause the #imited
num"er of "i##"oards does not .arrant the production of printed sheets/ In %gypt2 static fi##ed
te#e!ision and poor 1ua#ity "i##"oards ha!e #ed companies such as coco*co#a and Cest#e to p#ace their
ad!ertisements on the sai#s of fe#uccas2 "oat that sai# a#ong the Ci#e/ >e#uccas2 .ith the it triang#e
sai#s2 ha!e "een used to transport goods since the time of the pharaohs and ser!e as an effecti!e
a#ternati!e to attract attention to company names and #ogos/
1<3