Marketing Communication

Marketing communication can be defined as the process of presenting a set of messages to a target market through multiple cues and media with the intention of creating a favorable response from the market for the companys total product offering and simultaneously providing market feedback for improving and modifying the offering. TKMCE Mech

Marketing communication contd.

Firm is a sender of market message and receiver of market response. As a sender of message the firm communicates through its marketing mix variables in addition to the promotional stimulai. In the role as a receiver of market response ,the firm collects information through marketing research and marketing information system.

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The marketing communication mix

Product communication Price communication Place communication Promotion communication - Advertisement - Sales promotion - Public relations - Personal selling
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Product as a component in marketing communication

Product message Conveys certain meanings through its colour, shape ,size and physical features. Brand name and company name Package takes the role of a silent salesman in the shelf.

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Price as a component in marketing communication

How price conveys something more than price ! Price quality equation- quite frequently consumers view price as an index of quality Price-status equation- in certain cases price becomes status symbol. Price - an indicator of technological superiority Consumers concept of reasonable price- based on prices of similar items available in the market

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Place- as a component in marketing communication

Usually people say I buy only from X store. The store image Wider network of stores- Eg: Titan watches, Maruti service stations .

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Elements of Marketing communication mix

1.Advertisement 2.Sales promotion 3.Public relation 4.Personal selling

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Advertisement
Any paid form of non personal presentation and promotion of ideas , gods or services by an identified sponsor

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Sales promotion
A variety of short term incentives to encourage trial or purchase of a product or service.
Contests Lotteries Premium and gifts Samples Fairs and trade shows Exhibits Demonstrations Coupons Rebates Low interest financing etc.
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Public relation and publicityA variety of programs designed to promote or protect a companys image or its individual product Seminars Press kits Speeches Charitable donations Sponsorships Community relations etc.
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Personal selling
Face to face interaction with one or more prospective purchaser for the purpose of making presentations, answering questions ,and procuring orders. Sales meetings Sales presentations Incentive programs
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Elements in the Communication Process

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Steps in developing effective communication

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1.Identify the target audience

The communication process must start with clear target audience in mind. - potential buyers -current users - deciders - individuals -groups depending on this the communicator has to decide What to say? How to say? When to say? Where to say? To whom to say?

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Identify the target audience contd.

Target audience may not receive the intended message for any of three reasons:
Selective attention Selective distortion Selective retention

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Selective attention
People are bombarded by about 1600 messages /day of which 80 are consciously noticed and 12 provoke some reaction

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Selective distortion
Receivers will hear what fits into their belief system. As a result receivers often add things to the message that are not there and do not notice things that are there.

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Selective retention
People will retain in long term memory only a small fraction that they reach them. If initial attitude towards the object is positive, highest chance of recall. If initial attitude towards the object is negative, highest chance of rejection.

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2.Determine the communication objective

Marketer may want to put something into consumers mind, change an attitude or get the consumer to act. There are 3 different stages in consumer response Cognitive stage -learn Affective stage -feel Behavioral stage- do (learn-feel-do stage)
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3. Design the message

Ideally the message should -gain Attention -hold Interest -arouse Desire -elicit Action

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AIDA model
Attention Attention

Interest

Desire

Action

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Designing the message

Formulating the message will require solving four problems. What to say( message content) How to say it logically ( message structure) How to say it symbolically (message format) Who should say it ( message source)
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Designing the message contd.

Types of appeals
Rational appeals they claim the product will produce some benefits

Emotional appeals- attempt to stir up negative or positive emotions that will motivate purchase Moral appeals are directed to the audiences sense of what is right and proper
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4.Select the Communication Channels

Personal channels- Two or more persons communicating with each other Non personal channels Print media- news paper, magazines Broadcast media-radio, TV etc Network media- telephone, satellites etc Electronic media video tape, CD-Rom, web page Display media- posters, signs etc.
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5.Establish the total communication budget

How much to spent on promotion? 4 methods
Affordable Method Percentage -of- Sales Method Competitive-Parity Method Object and task method TKMCE Mech
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6.Decide on media mix

Companies must allocate the promotion budget over the promotional tools. Factors affecting the choice of tool Type of product Buyer readiness stage PLC stage

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7.Measure the communications result

Senior managers want to know the outcome and revenues resulting from their communication investment After implementing the promotional plan ,the communicator must measure its impact on the target audience They must also collect behavioral measures of audiences response
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IMC is a concept of marketing communication planning that recognizes the added value of a comprehensive plan. IMC evaluates the strategic role of a variety of communications disciplines and combines these disciplines to provide clarity, consistency, and maximum impact.

8.Managing the integrated marketing communication process (IMC)

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Developing and Managing an Advertising Program(5Ms of advertisement)

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5Ms contd.
Mission- What are the advertising objectives? Money- how much can be spent? Message-What message should be sent? Media- What media should be used? Measurement- How should the results be evaluated?
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Advertising objective can be

Informative advertising Persuasive advertising

Reminder advertising
Reinforcement advertising

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Informative advertising
Aims to create awareness and knowledge of new products , new features of existing products.

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Persuasive advertising
Aims to create liking, preferences, conviction and purchase of a product or service.

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Reminder advertising
Aims to stimulate repeat purchase of product or service.

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Reinforcement advertising
Aims to convince current purchase that they made the right choice.

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Deciding on the advertisement budget

Five factors to consider when setting the advertising budget:
Stage in the product life cycle Market share and consumer base Competition and clutter

Advertising frequency
Product substitutability
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Choosing the advertising message

Message generation Message evaluation and selection Message execution- rational positioning and reality positioning Social responsibility review

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Deciding on media and measuring effectiveness

Deciding on desired reach Deciding on frequency Deciding on impact Choosing among major media type Selecting specific media Deciding on media timing Deciding on geographical media allocation
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Major media types

News paper TV Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet
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SALES PROMOTION
A variety of short term incentives to encourage trial or purchase of a product or service.
Advertising offers reason to buy Sales promotion offers incentive to buy

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Sales promotion contd.

Consumer promotion tools Trade promotion tools Business and sales force promotion tools

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Consumer promotion tools

Samples Coupons Cash refund offer Premium-gifts Prizes Lottery Free trials Rebates Low interest financing etc
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Trade promotion tools

Offer given by the manufacturer to the retailer/wholesaler 1.Price off 2.Allowance- advertisement allowance and display allowance 3.Free goods

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Business and sales force promotion tools

Trade show and conventions Sales contests Specialty advertising-low cost items bearing company's name and address like ballpoint pen, calendars, key chains, memo pads etc.

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Thank u for ur co-operation

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