Management of Marketing Communications

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American Marketing Association (AMA) defines Marketing : The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Marketing Communication plays an important role in this exchange to happen.

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Basic task of marketing is to combine the 4 Ps into a marketing program to facilitate the potential for exchange with consumers in the market place.

Marketingmix Plac e

Produc t

Pric e

Promotio n

Marketing Communication

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The means by which firms attempt to inform, persuade, and remind consumers directly or indirectly about the products and brands that they sell. Marketing Communication is a collective term for all the various types of planned messages used to build a brand.

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Functions of Marketing Communications Provide information. Stimulate demand Differentiate the product Highlight the utility of the product Counter competition and stabilize sales Build image Provide brand reminders Reinforces past purchases and brand experiences

Role of Marketing Communication 4/21/12 Explicit Role

Implicit Role

Guide to prospective buyers Primary and selective demand Product differentiation Encouraging innovation tendency to consume Financial support to media

Lowering of prices Advertising and Competition Improves product quality Increase in economic activity and employment Effect on Business Cycles

4/21/12 History of Marketing Communications

Started ever since the time of Barter System Pre-printing era(1438):

Trademarks (Brands) Signs (Ancient outdoor advertising) Town Criers

First known printed advertisement in 1500s

(William Caxton of London- handbill of rules for the guidance of clergy at Easter was put on the church doors)

First ad on circulated sheet appeared in German news pamphlets (1525)-Hand cards.

( This praised the virtues of a mysterious drug)

4/21/12 The first printed newspaper in English- 1622

(Weekly News of London)

First ad in newspaper -1625 The first ad in America appeared in 1704

(Ad offered a reward for the capture of a thief)

In the 17th century ads in the form of announcements. ( Importers of Coffee,Tea,Chocolate etc.) Pre industrialization Era (Till 1800) The Era of Industrialization (1800-1875)
(Advertising became widespread, Dailies became popular-1850)

4/21/12 Consumer culture dawns (1875-1918) Advertising became a full-fledged industry The 1920s (1918-1929)

Advertising finds fame and glamour as it was the most modern of all professions. Ads play on social anxieties Segmentation begins by social class

Lux fabric wash ad-1927

4/21/12 The Depression Era (1929-1941) Radio emerges as a new medium The theme in the ad traded on the anxieties of the day

WWII and the Fifties (19411960)

Products linked with patriotism Fascination with science Subliminal advertising scare hits

Peace, Love and Creative Revolution-(1960-1972)

Cultural revolution and Creative revolution

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Shift to Sales promotion activities to meet sales. Regulation and oversight took hold (1973-1980) ACT, FTC and NARB become active Present day advertising-technology driven and customer oriented.

Indian Marketing Communication4/21/12 History The personal selling era (Barter era) The product era (manufacture products that attracted consumers) The sales era (Transition from information to persuasion) The consumer era ( Emergence of the study of consumer

psychology, lifestyle advertising, in-depth research, subliminal advertising, concept of USP etc.)

The positioning era (Importance on, appeals based on the

perceived value of the product, emotions like love and envy, social acceptance)

Value marketing era( current age- integrated marketing

communication used)

Promotion : All the personal and impersonal efforts by 4/21/12 a seller or sellers representative to inform, persuade or remind a target audience of their products. Promotion mix is the combination of different kinds of promotional tools used by a firm to advertise and sell its products.
Promotion Mix

Advertising

Sales Promotion

Personal Selling

Interactive / Internet Marketing Publicity

Direct Marketing

4/21/12 Factors affecting the Promotion Mix

Product Considerations

Nature of the product Product Image Stage of Products Life Cycle Packaging Degree of Customization

Pricing Policy Distribution Target Market Characteristics

Level of Competition Geographic Coverage Buyer Readiness Stage

IM C Integrated Marketing Communication involves

coordinating the various promotional elements and other marketing activities that communicate with a firms customers. The process of using all forms of promotion to achieve maximum communication impact. The evolution of IMC (need for coordination, need for one stop shopping, understanding that customer perception of brands/co. is a synthesis of the bundle of message exposed to, more effective method of building relationship with stakeholders with the

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Reasons For Growing Importance of IMC Shift from media advertising to other forms of marketing communication Movement away from advertising-focused approaches that emphasize mass media. Shift in power from manufacturers to retailers Rapid growth of database marketing Changes in agency compensation (Objective measures-sales, market share, profitability. Demands for accountability) Rapid growth of the Internet Increasing importance of branding

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Promotion Tools
1.Sales Promotion

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Short-term incentives to encourage the purchase or sale of a product or service.

Advantages

Can stimulate quick increases in sales by targeting promotional incentives on particular products. Good short term tactical tool. If used over the long-term, customers may get used to the effect. May damage the brand image.

Disadvantages

2.Public Relations/ Publicity

Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Advantages

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Credibility Low cost (although not totally free) Often results in word-of-mouth. Image building. Not always under control of organization Can be negative

Disadvantages

3.Personal Selling

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Oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales.
Advantages

Direct contact between buyer and seller allows for more flexibility. Can tailor sales message to specific needs of customers. Allows for more direct and immediate feedback. Sales efforts can be targeted to specific markets and customers who are best prospects.

Disadvantages

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High costs per contact Expensive way to reach large audiences Difficult to have consistent and uniform message delivered to all customers

Importance of Personal Selling

When the product is of high value. Highly complicated and technical products. Newly launched product. Which requires demonstration and after sales services. In the case of products which dont fall in the impulse category.

4.Direct Marketing

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Is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction.
Advantages

More receptive to direct-marketing Allows marketers to be very selective and target, specific segments of customers. Messages can be customized for specific customers. Effectiveness easier to measure.

Disadvantages

4/21/12 Lack of customer receptivity and very low response rates. Clutter. (too many messages) Image problems particularly with telemarketing.

5. Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advantages

Advertiser controls the message Cost effective way to communicate with large

Effective way to create brand images and symbolic appeals Often can be effective way to strike responsive chord with consumer Often can be effective way to strike responsive chord with consumer

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Disadvantages

High costs of producing and running ads Credibility problems and consumer skepticism Clutter Difficulty in determining effectiveness

4/21/12 6. Interactive / Internet Marketing

Allows for a back and forth flow of information, whereby users can participate in and modify the form and content of the information they receive in real time.
Advantages

Can be used for a variety of IMC functions Messages can be tailored to specific interests and needs of customers Interactive nature of the Internet leads to higher level of involvement Can provide large amounts of information to customers.

Disadvantages

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Internet is not yet a mass medium as many consumers lack access. Attention to Internet ads is very low. Great deal of clutter on the Internet. Audience measurement is a problem on the Internet.
Use of the Internet as an IMC Tool

-As an advertising medium to inform, educate and persuade customers -As a direct sales tool

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Direct marketing methods Direct mail Catalogs Telemarketing Direct response ads Direct selling Internet

Consumer-oriented
Targeted to the ultimate users of a product or service

4/21/12 Trade-oriented

Coupons Sampling Premiums Rebates Contests Sweepstakes

Targeted towards marketing intermediaries such as retailers, wholesalers, or distributors

Promotion allowances Merchandise allowances Price deals Sales contests Trade shows

Sales Promotion Uses

Introduce new products. Get existing customers to buy more. Attract new customers. Combat competition. Maintain sales in off season. Increase retail inventories. Enhance personal selling efforts.

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4/21/12 To obtain customer database information. To communicate and interact with buyers. To provide customer service and support. To build and maintain customer relationships. As a tool for implementing sales promotion. As a tool for implementing publicity/public relations programs.