Lesson 11 - Marketing Communications

11.1 Introduction

This lesson takes the journey into the last P of the marketing mix –
Promotion. However, this is more about the many aspects associated with the
communications between the firm and the customer. Much discussion in marketing
textbooks about marketing communications is based around the product or service
offered by the firm.

There is the wider need for a firm to communicate a range of messages to other key
stakeholders.  These are largely not based around a product or product category but
more around the “corporate” or “strategic business unit” entity. For example a
company such as QANTAS or Bayer will have a clear need to communicate about
their products and brands. In the case of QANTAS this would include its Jetstar,
QANTAS Link and its core QANTAS airline brands – and for Bayer it would cover its
products in crop care, animal health and pharmaceuticals.

The recent wider interest in corporate social responsibility, ethics and corporate
governance etc. has added further force to the need for wider communication
strategies. Remember also that there is considerable cross over between the more
recognised product/brand communication and wider corporate type
communication. The person seeing an advertisement on television maybe also a
fund manager or a supplier, or a key person in a lobby/self-interest group.

 Role of marketing communication

There are many factors that characterize the marketing communication environment
of today. And no doubt there will be further changes.

Some of these more recent changes include:

 Technology – and especially media types and options

 Changing demands  - greater expectation to be “communicated” to
 Changing ways stakeholders/customers access information
 Need for speed – with communication
 Ability to manage “spot message” dissemination of the message - and its associated
interpretation etc.
 Different ways of synthesizing the messages
 Regulation and compliance in communication (e.g. privacy)
 Changed ability to “hide” information and the need for real/perceived  transparency
 Increasing numbers of communication messages needing to be managed by the
“listener”
 Changed technology impacting on the type of messages used e.g. animation
 Cost of communication e.g. electronic brochures/marketing collateral vs. print
 Media costs and the “rise and rise” of communication via internet and social media
 Media management and associated “fall-out” from some communication process

Maybe you should consider how firms/brands have changed the way of
communicating to you as either an existing or potential buyer.
One very scary fact – “the average city dweller is exposed to an estimated 3,000 –
5,000 advertising messages (stimuli) per day”.

How does marketing communications work?

This section provides an insight into both the macro and micro levels of the
communication process.  And these both have applicability to many forms of
communication – not just of marketing based communication.

Macro-Model

The following is a very easy overview of the wider communication processes. Note

that there are several areas of “disconnect” between the sender
(supplier/marketers/firm) and the “receiver” (consumer, customer, B2B buyer etc.).

And the communication strategy needs to ensure that:

 The message from the sender is ENCODED in a way that will have resonance
and meaning to the receiver.
 There will be a need to ensure that the correct and most effective form of
MEDIA is considered and used.
 The many sources of NOISE are understood and accounted for.  This noise
includes the many other messages that a receiver is absorbing on an almost
continual basis. 
 The message and media are in a form that will be appropriately DECODED by
the receiver - recognizing that different market segments and different
customers/consumers may decode the same message in differing ways –
imaging on the ultimate success of the marketing communication process.
 There is a well-developed RESPONSE and FEEDBACK loop – adding further
communication strategies and decisions.

Micro-Model

There are several models that provide insight into the many different tasks and
stages of the communication response process. While there may be some
differences between the various models there are some very clear similarities e.g.

 Need to create attention

 Need for knowledge
 Need for some level of interest and underlying desire
 Need to create some form of connection and attachment  to the product
 Role and impact of non-rational factors e.g. attitude and emotion
 Need to convert the interest etc. to purchase/tangible actions  - maybe
trial/usage not just purchase

The key stages of post purchase evaluation (many say that marketing begins AFTER
the product is actually purchased and full evaluation can occur)

Developing Effective Communications--step 1&2

Step 1:   Identify Target Communication Audience

An obvious starting point to this intimal stage is to consider the firm’s target market
segment (s). However – even within these established target market segments there
may be some different communication targets. Some of the communication might be
targeted at some sub-categories within the target market segments. Also, at different
stages of the purchase process there will differing communication targets. The
communication target at the “initiator stage” will often be quite different from e.g. the
“decider” stage.

- Remember that there are many related stakeholder groups that will - to varying
degrees – form part of a firm’s communication strategy.  This can be indirect and
direct. A shareholder of a firm is also watching television or surfing the internet –
where a firm might be advertising! 

Step 2:   Set the Communication Objectives

It is very simplistic to assume that the prime or only objective of any communication
strategy/program is to increase sales or profit.  Of course these might be sound
objectives but there are many other objectives of a communication program.

The following are just a few:

 Creating a Need – for the actual product and then hopefully for your brand
 Brand Awareness – informing the market of your brand – especially in the
early stages
 Education – maybe about a new generation product – an issue for trail blazers
 Brand Attitude – creating a positive and correct attitude and perception of the
brand
 Corporate Image – communication targeted at a curate objective and not just
a brand or product
 Buyer Behavior – it might be to initiate or trigger some tangible consumer
behavior change e.g. to initiate the idea of buying the product or a blatant “buy
me” message
 Competitor Considerations – communication aimed at altering attitudes etc. to
your product relative to competitors.  It may be that the objective is a cold and
hard attack on competitors.
 Market Share – it might be to increase or equally valid, to maintain market
share

You might want to consider the many communication objectives for a firm or brand –
think about how it will impact on both “Usage” and “Attitude” to your firm and/or
brand etc.

 Developing Effective Communications--design the communications

Step 3:   Design the Communication

If only everything was as simple as solving the following three key problems:
  What to Say
 How to Say It
 Who should Say It

Message Strategy/What to Say:  This is really focussing on the key content of the

message – e.g. is it to emphasise points of difference or maybe points of parity.  Is it
to communicate key aspects of the wider product/service offer – such as
performance, image, style etc.?

Developing Effective Communications--select channels and establish

budget

Step 4: Select Channels

Personal communications channels let two or more persons communicate face to

face or person to audience through a phone, surface mail, or e-mail. They derive
their effectiveness from individualized presentation and feedback and include direct
marketing, personal selling, and word of mouth. We can draw a further distinction
between advocate, expert, and social communications channels. Advocate channels
consist of company salespeople contacting buyers in the target market. Expert
channels consist of independent experts making statements to target buyers. Social
channels consist of neighbors, friends, family members, and associates talking to
target buyers.

Nonpersonal channels are communications directed to more than one person and
include advertising, sales promotions, events and experiences, and public relations.

Step 5: Establish Budget

•Affordable method
•Percentage-of-sales method
•Competitive-parity method
•Objective-and-task method

 Developing Effective Communications--Selecting the Marketing

Communications Mix

Step 6: Select the Marketing Communication Mix

There are many options that a firm might use as part of its wider communication
program.

It is suggested that you review the explanation of these different communication

platform categories – thinking of examples.

 •Advertising

•Sales promotion
 •Events and experiences

•Public relations and publicity

•Online and social media marketing

•Mobile marketing

•Direct and database marketing

•Sales force

It is suggested that you review the explanation of these different communication

platform categories – thinking of examples from the wider marketing communication
we experience in day-to-day life. 

You might also want to consider in what situation – and at what stage of the buying
process - do firms use these categories.  It is typical that a firm will use several -
never relying on just one approach.

Step 7: Measure Communications Results

Communication mix depens on: the types of product market; the product life cycle
stage; and buyer readiness stage. 

After implementing the communications plan, the communications director must

measure its impact. Members of the target audience are asked whether they
recognize or recall the message, how many times they saw it, what points they
recall, how they felt about the message, and what are their previous and current
attitudes toward the product and the company. The communicator should also collect
behavioral measures of audience response, such as how many people bought the
product, liked it, and talked to others about it.

Step 8: Manage IMCs

A planning process designed to assure that all brand contacts received by a

customer or prospect for a product, service, or organization are relevant to that
person and consistent over time.

 Online marketing

The variety of online communication options means companies can offer or send
tailored information or messages that engage consumers by reflecting their special
interests and behavior.

A company chooses which forms of online marketing will be most cost-effective in

achieving communication and sales objectives. The options include Web sites,
search ads, display ads, and e-mail.

Word of Mouth
Word of Mouth (WOM) is a pwoerful marketing tool and it is one of the most effective
drivers of sales. Some brands have been built almost exclusively by word of mouth. 

•WOM is information transmitted by individuals to individuals

•WOM is interpersonal and informal
•It takes place between two or more people
•None of whom represents a commercial selling source.

Social Media and Mobile Marketing

Social media are means for consumers to share text, images, audio, and video
information with each other and with companies, and vice versa. Social media allow
marketers to establish a public voice and presence online. They can cost-effectively
reinforce other communication activities. Because of their day-to-day immediacy,
they can also encourage companies to stay innovative and relevant. Marketers can
build or tap into online communities, inviting participation from consumers and
creating a long-term marketing asset in the process.