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Chapter 11: Marketing Communications Structure A. INTRODUCTION 1. Overview and Strategy Blueprint 2. Marketing Strategy: Analysis & perspectives C. WHERE DO WE WANT TO BE? B. WHERE ARE WE NOW? 3. Environmental & Internal Analysis: Market Information & Intelligence 4. Strategic Marketing Decisions, Choices & Mistakes 5. Segmentation, Targeting & Positioning Strategies 6. Branding Strategies 7. Relational & Sustainability Strategies D. HOW WILL WE GET THERE? E. DID WE GET THERE? 14. Strategy Implementation, Control & Metrics 8. Product Innovation & Development Strategies 9. Service Marketing Strategies 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing Strategies 13. Social and Ethical Strategies Learning Objectives Assess where marketing communications sits within overall marketing strategy. Examine the key elements in the MARCOMS process. Provide a strategic view of MARCOMS with a focus on the creative brief. Assess the key issues in media choice and use. Review the operational issues in implementing a MARCOMS strategy. Chapter at a Glance • • • • • • • IMC SHIFT FROM PUSH TO PULL MARCOMS STRATEGIC PROCESS MEDIA STRATEGY OPERATIONS FREQUENCY INTERNATIONAL Introduction • MARCOMS are central to Porter’s generic cost-differentiation focus strategies framework & refer to four central types of media: – – – – Advertising Direct marketing PR Sales promotions • There are two layers to explore in using these four media in MARCOMS strategy relating to: – What the client wants to ‘say’ – ‘How’ you say it IMC Tools Advertising TV Transport/ Outdoor Press Direct Direct Messages Direct Mail Internet Cinema Radio Internet PR Word-ofmouth Personal Selling Sales Promotion Point-ofpurchase Sponsorship Sales Promotion PR Ambient Buzz MPR Product Placement Events Integration: Love Aga Campaign Source: By permission of Aga Rangemaster Group plc MARCOMS & Cost • Short-run a client can spend money on MARCOMS to help justify a price increase or increase volume, but this will only add to costs • Medium to long-term MARCOMS can support price through brand preference and provide some competitive protection for a brand • Furthermore, increased volume can be encouraged by pointing out new uses for the brand or by targeting new markets • Successful MARCOMS can lead to higher sales and in turn economies of scale • MARCOMS can also directly reduce costs through replacing (or increasing the efficiency) of an organisation’s routes to markets and in reducing market research MARCOMS & Differentiation • Central to spending on MARCOMS • Despite the conventional wisdom that lots of products and services are at parity, there are probably more differences in offerings today than ever before • If you take any consumer or business market, the amount of choice is substantial and often impossible for buyers to cognitively process • MARCOMS provides organisations with the possibility of establishing their position with the market and asserting their distinctiveness • At heart all organisations, be they for or not-for profit, seek to establish a point of difference IMC “A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines, e.g., general advertising, direct response, sales promotion and public relations-and combines these disciplines to provide clarity, consistency & maximum communications impact.” The American Association of Advertising Agencies IMC Foundations All elements of the marketing mix are coordinated using push and pull techniques. By focusing on a single message stronger relationships are developed with consumers. More focused and single-minded messages are processed more effectively by consumers. I M P A C T COI Big Drink Debate Source: By permission of The Central Office of Information CrossCountry and Facebook Source: By permission of CrossCountry Trains MARCOMS Strategic Process Market Scan AUDIT Competitors SWOT STRATEGY Objectives Set Budget Contingency Target Market Position Creative Strategy Media Strategy OPERATIONS Creative Execution Media Execution [Meet objectives] [Fail to meet objectives] Measurement Expand the Problem to a Higher Level • Product Definition: – • Performance Superiority: – • Help brand matter to the consumer Cultural Identification: – • Solve a problem or better fulfill a desire Emotional: – • Make the central benefit salient (again?) Make the brand part of consumer’s world Paradigm Shift: – Alter the consumer’s definition of category Announcing a Launch Source: By permission of The Manchester Airports Group Product Superiority: Club Med – More Exclusive, More Inclusive Source: By permission of Club Med UK Cultural Identification: Arriva Buses Source: By permission of Arriva plc Network Q Source: By permission of General Motors Corporation - Network Q The Task Isolate, in a simple statement why the advertising will have worked: •Increase sales •Generate leads •Increase/maintain share •Stop decline •Justify price •Announce/Launch •Corporate reputation MARCOMS Measurement Approach Method Objective Type Measure Research prior to development • Focus groups • Interviews Discovery and understanding Qualitative • Attention measures • Little or no evaluation of the effectiveness of final MARCOMS Research during development • Concept testing • Consumer panels • Dummy media & copy • Readability of copy Discovery and understanding Qualitative • Attention measures • Little or no evaluation of the effectiveness of final MARCOMS Pre-testing • Theatre/hall testing of commercials • Physiological tests e.g. pupil dilation, eye tracking, skin response, neurological (e.g. EEG testing) • Focus groups Selection, development, evaluation, comparisons Qualitative & Quantitative Attention & processing measures: • Likeability of MARCOMS • Attitude towards MARCOMS • Credibility of MARCOMS • Brand recall • Brand recognition • Brand benefit belief • Brand attitude • Brand purchase intention Monitoring • Continuous tracking & testing • Recognition tests • Interviews • Questionnaires Development, evaluation, comparisons Qualitative & Quantitative Processing measures: • MARCOMS Recall • MARCOMS Recognition • Brand recall • Brand recognition • Brand benefit belief • Brand attitude • Brand purchase intention • Brand behaviour (purchasing) Types of MARCOMS Objectives • “Exposure message to ...” • “Create 40% awareness amongst...” • “Create attitude/opinion that...” • “Increase preference amongst...” • “Encourage trial amongst...” • “Re-enforce loyalty amongst..” Exposure • The desired level of frequency (OTS = Opportunity to See) and coverage to achieve the advertising objectives • Most agencies seek an average of 2-3 OTS’s amongst the target market in order to give advertising a chance to work Example: 4 Week Campaign Objective • cover 60% of the mkt • 4 OTS’s Post-Evaluation • 52% Coverage • 4 OTS’s Awareness Spontaneous: An open-ended question, “tell me of all the major supermarkets that you have heard of...” “Any more?” “Is that all?” Prompted “Which one or ones of the following supermarket chains have you heard of?” • • • • • Tesco Sainsbury’s Waitrose Asda Jeffrey’s Final Evaluation pre-campaign objectives post-campaign Spontaneous 25% 31% 32% Prompted 86% 88% 88% [In this case the campaign would be said to be a success] Describe Who We’re Talking To • • • • A person, not a “target” Beyond reports - talk to customers Paint a personal picture What’s really important to them? Sources of a Proposition • • • • • • • • • • • • • • Product characteristics User characteristics Ways of using the product How product is made Surprising points about the product Price characteristics Image characteristics Satisfying psychological/physiological needs Product heritage Disadvantages of non-use Direct comparisons with rivals Product comparisons Newsworthiness Generic benefits What Proposition Will Do This? • Specific core benefit brand delivers • key emotion, reason or blend • Keep it singular A good proposition • • • • • • • Gives Creatives an ‘angle’ or way in Forces a strategic choice Is single-minded not all encompassing Is based on a truth (Rational or Emotional) Is original, or expressed in an original way Is liberating not limiting Isn’t an end-line MARCOMS Overview MEDIUM DEFINITION HORIZON FORM SCOPE ADVERTISING A paid for communication by an identified sponsor with the aim of informing and influencing one or more people. The recording, analysis and tracking of customers’ direct responses in order to develop loyalty. The formulation, execution and sustained effort to establish and maintain goodwill and mutual understanding and reciprocal goodwill between an organisation and its stakeholders. Mainly long-term TV, press, posters, radio, web, cinema, digital, SMS. Awareness, attitudes Short and long-term Mainly retention but also acquisition An incentive for the customer, sales force or distributor to make an immediate purchase. Mainly short-term Direct mail, DRTV & radio, telemarketing, press, inserts, leaflets, web, digital, SMS. Community relations/CSR, corporate advertising, crisis management, events, internal communications, investor relations, media relations, public affairs, lobbying, sponsorship, web, digital. Consumer: Coupons, contests, trial, mail-in offers/refunds, group promotions, self-liquidations, instore promotions, point-of-sale, web, digital, SMS. Trade: Dealer merchandise; contests’ advertising, allowance, trade allowance/ staff incentive, web. DIRECT MARKETING PR SALES PROMOTIONS Short and long-term Credibility, visibility and reputation Consumer: Trial, re-trial, extended trial, build database Trade: Gain a listing, increase distribution, increase inventory, improve shelving space/position Media Scheduling 1. Reach 2. Creative Scope 3. Media History 4. Location 5. Distribution Channels 6. Budget Conclusion • MARCOMS primarily consist of four media: advertising, direct marketing, PR and sales promotions, which can be used in marketing strategy either singularly or holistically with IMC (Integrated Marketing Communications). • While MARCOMS can enable organisations to reduce costs in the medium to long-term, their main strategic use is in helping to differentiate and position.