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Introduction to Marketing Communications
What are marketing communications?
Marketing communications is a subset of the overall subject area
known as marketing. Marketing has a marketing mix that is made
of price, place, promotion, product (know as the four P's), that
includes people, processes and physical evidence, when marketing
services (known as the seven P's).
How does marketing communications fit in? Marketing
communications is 'promotion' from the marketing mix.
Why are marketing communications 'integrated?' Integrated
means combine or amalgamate, or put simply the jigsaw pieces
that together make a complete picture. This is so that a single
message is conveyed by all marketing communications. Different
messages confuse your customers and damage brands. So if a TV
advert carries a particular logo, images and message, then all
newspaper adverts and point-of-sale materials should carry the
same logo, images or message, or one that fits the same theme.
Coca-Cola uses its familiar red and white logos and retains themes
of togetherness and enjoyment throughout its marketing
communications.
Marketing communications has a mix. Elements of the mix are
blended in different quantities in a campaign. The marketing
communications mix includes many different elements, and the
following list is by no means conclusive. It is recognised that there
is some cross over between individual elements (e.g. Is donating
computers to schools, by asking shoppers to collect vouchers,
public relations or sales promotion?) Here are the key of the
marketing communications mix.
The Marketing Communications Mix.
Personal Selling.
Sales Promotion.
Public Relations (and publicity).
Direct Marketing.
Trade Fairs and Exhibitions.
Advertising
Sponsorship.
Packaging.
Merchandising (and point-of-sale).
EMarketing (and Internet promotions).
Brands.
Integrated marketing communications see the
elements of the communications mix 'integrated'
into a coherent whole. This is known as the
marketing communications mix, and forms the
basis of a marketing communications campaign.
Introduction to Brands.
Brands and Branding.
Branding is a strategy that is used by marketers. Pickton and Broderick
(2001) describe branding as Strategy to differentiate products and
companies, and to build economic value for both the consumer and the
brand owner. Brand occupies space in the perception of the consumer,
and is what results from the totality of what the consumer takes into
consideration before making a purchase decision (Pickton and Broderick
2001).
So branding is a strategy, and brand is what has meaning to the consumer.
There are some other terms used in branding. Brand Equity is the
addition of the brand's attributes including reputation, symbols,
associations and names. Then the financial expression of the elements
of brand equity is called Brand Value.
There are a number of interpretations of the term brand (De Chernatony
2003). They are summarized as follows:
A brand is simply a logo e.g. McDonald's Golden Arches.
A brand is a legal instrument, existing in a similar way to a patent or
copyright.
A brand is a company e.g. Coca-Cola.
A brand is shorthand - not as straightforward. Here a brand that is
perceived as having benefits in the mind of the consumer is recognised
and acts as a shortcut to circumvent large chunks of information. So
when searching for a product or service in less familiar surroundings
you will conduct an information search. A recognised brand will help you
reach a decision more conveniently.
A brand is a risk reducer. The brand reassures you when in
unfamiliar territory.
A brand is positioning. It is situated in relation to other brands in
the mind of the consumer as better, worse, quicker, slower, etc.
A brand is a personality, beyond function e.g. Apple's iPod versus
just any MP3 player.
A brand is a cluster of values e.g. Google is reliable, ethical,
invaluable, innovative and so on.
A brand is a vision. Here managers aspire to see a brand with a
cluster of values. In this context vision is similar to goal or
mission.
A brand is added value, where the consumer sees value in a
brand over and above its competition e.g. Audi over Volkswagen,
and Volkswagen over Skoda - despite similarities.
A brand is an identity that includes all sorts of components;
depending on the brand e.g. Himalaya Pharmaceuticals.
A brand is an image where the consumer perceives a brand as
representing a particular reality e.g. Tanishq Reassuring
Expensive.
A brand is a relationship where the consumer reflects upon him
or herself through the experience of consuming a product or
service.
Four Banding Alternatives
A Branding Strategy Based upon Brand Franchise
Extension
A tool that a marketer can employ for branding
decision-making is the Four Banding Alternatives.
Four Branding Alternatives is a strategic
marketing communications technique. It is a fun
and creative approach that can add value to any
class that likes to discuss brands and how they
could be innovatively developed. It is used when
an organization considers adding a product to its
portfolio and its associated brand name. The two
variables for this matrix are Product Category
(Existing or New) and Band Category (Existing
or New).
New Product - a new product is developed with a series of new brand
ideas and meanings to the consumer.
Flanker Brand - a new brand is introduced into a category where the
organization already has established products.
Line Extension - a current brand name is introduced into a category
where the organization already has established products.
Franchise Extension - a familiar brand is taken to a product category
where it is unknown.
New Product - Sony enters the market for music downloads under a new
sub-branding idea and concept.
Flanker Brand - Sony introduces the Sony Vaio laptops (as it indeed
has).
Line Extension - Sony enter the market for digital HD TV's (as it has).
Franchise Extension - Sony enters the market for innovative
environmentally friendly small cars that run on solar power.
Exercise - Four Banding Alternatives
Banana Computers
Your Task
Apply the Four Banding Alternatives to the scenario
of Banana Computers. How should they progress
with their branding strategy?
The Loyalty Ladder.
Turning a prospect into an advocate.
The loyalty ladder is a tool for marketing communicators. The idea is
that consumers can be moved along a continuum of loyalty using a
number of integrated marketing communications techniques (it is also
referred to as a branding ladder). Essentially, consumers become loyal
to a brand which has meaning to them in relation to a product, service,
solution or experience.
As with continuums of behaviour such as UACCA - Unawareness,
Awareness, Comprehension, Conviction, Action, or AIDA - Awareness,
Interest, Desire, Action, the loyalty ladder begins from a point where the
consumer has Not Yet Purchased, then he or she buys the product for
the first time (Trialist), if the trial has been a success he or she returns
to buy again and again (Repeat Purchaser) and finally the consumer
buys no other brand (Brand Insistent). At the Not Yet Purchased Stage
the consumer is merely a Prospect. As he or she trials they become a
Customer. The Repeat Purchaser is a Client since he or she is becoming
loyal. Finally, the consumer becomes an Advocate (i.e. activist or
campaigner) since he or she is Brand Insistent. At this point the brand is
difficult to dislodge since it has so much meaning to the consumer. Great
brands such as Nike, BMW and iPod are in this highly desirable position.
The marketing manager needs to decide or select integrated marketing
communications that move the consumer from Not Yet purchased to
Brand Insistent (i.e. from Prospect to Advocate). Once at Brand Insistent,
the marketing manager should attempt to keep the level of customer
loyalty at this point, again by using integrated marketing communications.
The Loyalty Ladder - Exercise.
Farley's Irish Dream
Your Task
Advertising Media
your segment?
Would you buy this product or service
Organising events.
Corporate events are used to woo publics in both a formal and an
informal manner. A formal corporate event could include a
manufacturer inviting employees from all of its many distributors
to visit its manufacturing plant for a training day. This has a direct
business payoff. A more informal event could include a day at the
races or a short-break abroad, where clients are wined and dined
at the cost of a company, in order to generate goodwill. This has
an indirect business payoff.
Facility visits.
Visits to a factory, such as a chocolate factory, or a facility, such
as a nuclear power plant also generate a positive perception of an
organisation. In the case of a factory visit, loyal customers or
other interested parties can experience for themselves what is
behind a well-known product. In the case of a nuclear power
plant, concerned or misinformed publics have the chance to see
for themselves what really occurs behind locked doors. Here the
organisation has the chance to deal with a delicate topic in a
planned proactive manner. Public buildings such as parliament
buildings or churches would be included under facility visits.
Publicity events and 'stunts.'
Publicity events fall under the banner of guerrilla marketing. Here an
organisation will take the opportunity to seize upon a particular moment
to hijack public attention. Publicity events and stunts are practiced by
both companies and private bodies (including pressure and political
groups). A famous example of a publicity stunt was one conducted by
Fathers For Justice (a British pressure group for divorced fathers),
whereby individuals, dressed as Superheroes, invaded Buckingham Palace
in London.
Account management.
Creative.
Media.
Traffic and production.
Account planning.
Account management.
Account managers work for an agency with the client (an agency's customers are
called 'clients'). Very often they will spend a lot of time with the client working as
part of their marketing team. This is one way in which an agency works closely with
its client and why the 'chemistry' between a client and its agency needs to be right.
The account manager makes sure that the correct information is passed from the
client to the other members of the agency. He or she is a co-ordinator and time
manager. The account planner will work on a brief that is fed back to the agency
team.
Creative Team
The first internal agency team members to see the brief tend to be the creatives
and the media planners. The brief contains a 'proposition' that the client wishes to
communicate to the target audience. The creative team will transform the
proposition into something exciting and attractive to the target audience. The
creative team decide upon the 'creative concept.' This will be a motivational idea.
The words used to express the creative concept are called 'copy.' The images,
pictures and diagrams are created i.e. the 'design' or 'layout.' This is done by
'designers' and 'copywriters.' Beware some creatives! Creatives tend to be artistic
and innovative. Hence their advice should be highly regarded and any criticism
should be constructive.
Traffic and Production Team.
The traffic and media team are in charge of the production of the physical and
artistic output, i.e. the marketing communication. In the case of a TV advert, they
would commission scripts, recruit a ctors (mainly via agents), film crews and
supporting activities (such as costumes and catering). All ads are different and so
the specifics will vary. In the case of print advertising, the traffic and production
team would commission and sign-off all printed advertising material such as direct
marketing materials, magazine ads or posters.
Media Team.
The media team will organise the timing and scheduling of the marketing
communications campaign. They will look at the range of media to be exploited,
and then look at the best slots in which to run advertising. They will help a client to
decide upon the duration of and individual slot, and how many of them to run. Here
the expense and return to the client are key factors that influence decision-making.
The two main skills of the media team are media planning and media buying. Today
there is a wealth of data on which media buying can be based. There is software for
planning and simulation.
Direct Marketing.
What is Direct Marketing?
Direct marketing is a channel free approach to distribution and/or marketing
communications. So a company may have a strategy of dealing with its
customers 'directly,' for example banks (such as CityBank) or computer
manufacturers (such as Dell). There are no channel intermediaries i.e.
distributors, retailers or wholesalers. Therefore - 'direct' in the sense that
the deal is done directly between the manufacturer and the customer.
As mentioned above, 'direct' also in the sense that marketing
communications are targeted at consumers by the manufacturers. For
example, a brand that uses channels of distribution would target
marketing communications at wholesalers/distributors, retailers, and
consumers, or a blend of all three. On the other hand, a direct marketing
company could focus upon communicating directly with its customers.
Direct marketing and direct mail are often confused - although direct mail
is a direct marketing tool.
There are a number of direct marketing media other than direct mail. These
include (and are by no means limited to):
Inserts in newspapers and magazines.
Customer care lines.
Catalogues.
Coupons.
Door drops.
TV and radio adverts with free phone numbers or per-minute-charging.
. . . and finally - and most importantly - The Internet and New Media.
The Internet and New Media (e.g. mobile phones or PDA's) are perfect for
direct marketing. Consumers have never had so many sources of supply,
and suppliers have never had access to so many markets. There is even
room for niche marketers - for example Scottish salmon could ordered
online, packed and chilled, and sent to customers in any part of the world
by courier.
Many companies use direct marketing, and a current example of its use,
as part of a business model, is the way in which it is used by low-cost
airlines. There is no intermediary or agent, customers book tickets directly
with the airlines over The Internet. Airlines capture data that can be used
for marketing research or a loyalty scheme. Information can be processed
quickly, and then categorised into complex relational databases.