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Marketing
Chapter 17
Managing Marketing
Communications
Gilbert A. Churchill, Jr.
Irwin/McGraw-Hill
J. Paul Peter
© The McGraw-Hill Companies, Inc., 1998
Slide
17-1
Table
17.1
Some Strategic Goals of
Marketing Communications
Strategic Goal
Description
Create awareness
Inform markets about products, brands, stores or
organizations.
Build positive
images
Develop positive evaluations in people’s minds
about products, brands, stores or organizations.
Identify prospects
Find out the names, addresses and possible needs
of potential buyers.
Build channel
relationships
Retain customers
Increase cooperation among channel members.
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Create value for customers, satisfy their wants and
needs, and earn their loyalty.
© The McGraw-Hill Companies, Inc., 1998
Slide
17-2
Figure
17.1
The Communication Process
Source
Encodes
Message
Receives
Decodes
Message
Source Transmits
Message via Medium
Receiver Provides
Feedback to Source
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
17-3
Figure
17.2
The AIDA Model
Marketing
Communications
Attention
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Interest
Desire
Action
© The McGraw-Hill Companies, Inc., 1998
Slide
17-4
The Communications Mix
Advertising
Sales
Promotion
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Personal
Service
Publicity
© The McGraw-Hill Companies, Inc., 1998
Slide
17-5
Comparing the Elements
of the Communications Mix
Advertising
Personal
Selling
Sales
Promotion
Publicity
Communications Mode
One-Way
Two-Way
One-Way
One-Way
Marketer Control Over
Message
High
Medium-High
High
Low
Long Term, Ongoing Activity
Yes
Yes
No
No
Considered an Unbiased
Source
No
No
No
Yes
Message can be Customized
for each Customer
No
Yes
No
No
Short Term Focus
No
No
Yes
No
Cost per Contact
Low
High
Varies
Overall Cost
High
Low
Varies
No Direct
Cost
No Direct
Cost
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
17-6
Managing Communications Strategy
Set
Communications
Objectives
Select the
Communications
Mix
Set
Communications
Budgeting
Implementation
and
Control
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© The McGraw-Hill Companies, Inc., 1998
Slide
17-7
Figure
17.3
Two Marketing Communications
Approaches
Push Strategy
Producer
Marketing
Communications
Resellers
Marketing
Communications
End Users
Pull Strategy
Marketing Communications
Producer
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Request
Products
Resellers
Request
Products
End Users
© The McGraw-Hill Companies, Inc., 1998
Slide
17-8a
Table
17.3
Methods for Setting Communications
Budgets
Method
Advantage
Percentage
of sales
• Simple to use
Fixed sum
per unit
• Marketer likely to benefit
Disadvantage
• Budgeting based on expected
sales implies communications
can’t improve sales performance
from increasing the budget
during times of rising sales
Competition- • Takes into account
based
competitors’ activities
• Amounts budgeted will be
reasonable if competitors
are budgeting effectively
• Decreasing the communications
budget during periods of falling
sales could be disastrous in
some cases
• Can be difficult to get
competitors’ budget information
• Can lead to ever-increasing
communications budgets
• Assumes competitors have the
same objectives
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© The McGraw-Hill Companies, Inc., 1998
Slide
17-8b
Table
17.3
Methods for Setting Communications
Budgets
Method
All you can
afford
Advantage
• Takes into account limited
resources
• May stimulate creativity in
making funds work hard
Objective
and task
• Based on achieving
communications objectives
• Focusing on objectives
uses funds most efficiently
Disadvantage
• Doesn’t consider marketing
objectives
• Borrowing may be worthwhile to
fund some communications
strategies
• No basis for setting priorities
among objectives
• Treats all objectives as equally
worthy of funding
• Hard to estimate what will it cost
to achieve a particular objective
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© The McGraw-Hill Companies, Inc., 1998
Slide
17-9
Evaluating the Effectiveness of
Marketing Communications
Sales
Sales
Changes
Changes
What
Marketing
Research
Why
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Happened
it Happened
?
?
© The McGraw-Hill Companies, Inc., 1998