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Managing Communications

Ryan Hamilton,
Associate Professor
of Marketing
Communication Management
Creating Communicating Delivering
value value value

Product

Service
Communi-
Brand Communication Distribution
cation
Price

Incentives
The Process
Marketing Plan Communications Plan

Goal Goal Communication goal

Target audience
Strategy Strategy Value proposition|Positioning
Message
Tactics Tactics Media
Creative solution
Implementation Implementation Implementation

Control Control Measuring effectiveness


Milk: The Problem
• Problem: Consumption declined from 26.4 gallons in 1987 to 24.8 gallons in
1992 ($50M lost profits)
• Causes for decline in the consumption of milk:
– Proliferation of other beverages (diet and caffeine-free soft drinks, iced teas,
juices, bottled water)
– Decline in the competitive spending level ($70m on milk vs. $760m on beer
and $498m on soft drinks in 1992)
– Lack of portability
– Lack of flavor variety
– Not thirst quenching
– Lack of consumer mindshare (top-of-mind awareness)
– Shared consumption (“rationing”)
Milk: The Problem
• Milk advertising in the late 1980s and early 1990s:
– Teens: Milk makes you strong and beautiful
– Kids: Milk is cool and fun
Milk: The Solution
• Beliefs about milk in 1992:
– “I like the taste of milk”: 80% agree
– “Milk is a healthy drink”: 89% agree
• Solution
– Increase mindshare: create memorable advertising campaign
– Manage “rationing”: encourage buyers to bring more milk home
The “Got Milk?” Campaign
Communications Plan Communication goal: Increase milk consumption by one
glass per week within a year
Goal Target audience: Adults (because they decide how much
milk to buy)
Strategy Value proposition: Milk complements many other meals
(cereal, cookies, cake)
Tactics Message: Make sure you have enough milk (bring home
more milk)
Implementation
Media: TV, print
Creative solution: Got Milk? “deprivation” campaign
Control
Implementation: Goodby, Silverstein & Partners; launched
in November 1993
The “Got Milk?” Campaign
Communications Plan Communication goal: Increase milk consumption by one glass
per week within a year
Goal Target audience: Adults (because they decide how much milk
to buy)
Strategy Value proposition: Milk complements many other meals
(cereal, cookies, cake)
Tactics Message: Make sure you have enough milk (bring home
more milk)
Implementation
Media: TV, print
Creative solution: Got Milk? “deprivation” campaign
Control
Implementation: Goodby, Silverstein & Partners; launched in
November 1993
Measuring effectiveness:
60% aided recall in 3 months
2.67% ($30M) increase in annual sales
Communication Goal: Milk

Purchase Satis- Usage Usage Repurchase Repurchase


faction freq. quant. intent
Evolution of “Got Milk?” Campaign
Evolution of “Got Milk?” Campaign
Evolution of “Got Milk?” Campaign
Evolution of “Got Milk?” Campaign
Communication Goal: Gap Analysis

Target Aware- Under- Attractive- Afford- Avail- Purchase Purchase


customers ness standing ness ability ability intent
Goal: Awareness
• Create/maintain awareness
– News
• In the early 2010s, taxi and online car hailing security was a big
problem in China.
• Taxi services performed a limited, general background check on
their drivers. Online ride sharing platforms were doing minimal
security checks on their drivers.
• THE NEWS: DIDI is a new ride hailing service designed to
make getting a ride easy, convenient, and safe by performing
extensive security screening on their drivers.
• In 2018, the year that commercial launched, DiDi accounted for
91 Percent of Chinese ride sharing market.
Goal: Awareness
• Create/maintain awareness
– News
– Faux news (e.g., trivial innovation)
Goal: Awareness
• Create/maintain awareness
– News
– Faux news (e.g., trivial innovation)
– Entertainment value/social currency
Goal: Awareness
• Create/maintain awareness
– News
– Faux news (e.g., trivial innovation)
– Entertainment value/social currency

• When is awareness the right goal?


Goal: Awareness
• Create/maintain awareness
– News
– Faux news (e.g., trivial innovation)
– Entertainment value/social currency

• When is awareness the right goal?


Repetition-Variation Model

Memory Attention

Repetition increases the Novelty reduces the


likelihood of the message likelihood of the ad getting
being remembered screened out by System 1

MORE REPITION MORE VARIATION


Repetition-Variation Model

Repeated Elements Varied Elements

A problem
that a
pharmacy
can solve
Repetition-Variation Model
Attention Memory
Repetition-Variation Model
Attention Memory
Goal: Understanding
• About the offering
• About incentives
• About innovations
• About extensions
Goal: Attractiveness
• Points of Parity/Points of Differentiation
– Non-comparative
Goal: Attractiveness
• Points of Parity/Points of Differentiation
– Non-comparative
– Comparative (Steal-Share Strategy)
Goal: Attractiveness
• Points of Parity/Points of Differentiation
– Non-comparative
– Comparative (Steal-Share Strategy)
• Non-product sources of value
Entertainment vs. Content
• The “marketing entertainment” principle: The execution should offer a
balance of marketing and entertainment
Company Customer
value value
OVP

Collaborator
value

Entertainment
Marketing
Means
Goal

• A successful communication campaign must break through the media clutter


to help the company achieve its marketing goals
Company Customer
value value
OVP

Collaborator
value

Entertainment
Marketing
Means
Goal

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