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MARKETING COMMUNICATIONS
12th Lecture, 17th of May 2016
LECTURE CONTENTS
 Marketing communications
– What is the role of marketing communications?
 Effective communications
– How to be understood by customers?
 Mass communications
– How to advertise, promote sales and manage PR?
 Personal communications
– How to use direct and interactive marketing?
COMMUNICATIONS: INTRODUCTION
 Modern marketing calls for more than developing
a good product, pricing it and making it accesible
 Companies must also communicate with present
and potential stakeholders and the general public
 The question is not whether to communicate but rather what
to say, how and when to say it, to whom, and how often
 Consumers themselves are taking a more active role in the
communication process and deciding what they want to
receive and how they want to communicate
MARKETING COMMUNICATIONS
Marketing communications are the means by which firms
attempt to inform, persuade, and remind consumers (directly
or indirectly) about the products and brands they sell
 Marketing communications represent the "voice" of the company and its
brands and are means by which it can establish a dialogue and build
relationships with consumers
 Those who practice advertising, branding, direct marketing, graphic
design, promotion, publicity, sponsorship, public relations and online
marketing are termed marketing communicators
MARKETING COMMUNICATIONS
Marketing communications mix:
1) Advertising – any paid form of nonpersonal
presentation and promotion of ideas, goods,
or services by an identified sponsor
2) Sales promotion - variety of short-term
incentives to encourage trial or purchase
of a product or service
3) Events and experiences - sponsored
activities and programs designed to create
daily or special brand-related interactions
MARKETING COMMUNICATIONS
Marketing communications mix:
4) Public relations and publicity - variety of programs designed to
promote or protect a company's image or its individual products
5) Direct marketing – use of mail, telephone, fax, e-mail, or Internet to
communicate directly with or solicit response or dialogue from specific
customers and prospects
6) Interactive marketing - online activities and programs designed to
engage customers or prospects and directly or indirectly raise awareness,
improve image, or elicit sales of products and services
7) Personal selling - face-to-face interaction with one or more prospective
purchasers for the purpose of making presentations, answering
questions, and procuring orders
MARKETING COMMUNICATIONS
MARKETING COMMUNICATIONS
MARKETING COMMUNICATIONS
 To get their messages through, marketers must encode their messages in a way
that takes into account how the target audience usually decodes messages
 They must also transmit the message through efficient media that reach the target
audience and develop feedback channels to monitor response to the message
EFFECTIVE COMMUNICATIONS
EFFECTIVE COMMUNICATIONS
Developing effective communications:
1) Identify target audience
2) Determine objectives
3) Design communications
4) Select channels
5) Establish budget
6) Decide on media mix
7) Measure results
EFFECTIVE COMMUNICATIONS
1) Identify target audience
 The process must start with a clear target audience in mind:
 Potential buyers of the company's products
 Current users
 Deciders and influencers
 Individuals, groups
 Particular publics, or the general public
 In identifying the target audience,
the marketer needs to close any gap
that exists between current public
perception and the image sought
EFFECTIVE COMMUNICATIONS
2) Determine objectives
 Category need – establishing a product or service category as
necessary to remove or satisfy a perceived discrepancy between a
current motivational state and a desired emotional state
 Brand awareness –ability to identify (recognize or recall) the brand
within the category, in sufficient detail to make a purchase
 Brand attitude - evaluating the brand with respect to its perceived
ability to meet a currently relevant need
 Brand purchase intention – self-instructions to purchase
the brand or to take purchase related action
EFFECTIVE COMMUNICATIONS
3) Design communications
Formulating the communication requires solving three
problems:
 What to say?
(message strategy)
 How to say it?
(creative strategy)
 Who should say it?
(message source)
EFFECTIVE COMMUNICATIONS
4) Select channels
Personal channels:
 Advocate – salespeople contacting buyers in the target market
 Expert – independent experts making statements to target buyers
 Social – neighbors, friends, family members, and associates
Nonpersonal channels:
 Media – print, broadcast, electronic, display
 Sales promotions – consumer, trade and business promotions
 Events – sports, arts, entertainment
 PR - directed internally to employees of the company or externally to
consumers, other firms, the government, and media
EFFECTIVE COMMUNICATIONS
5) Establish budget – methods:
 Affordable – what you think the company can afford
 Percentage of sales – set expenditures at a specified % of sales
 Expenditures might be as high as 40% to 45% of sales in the cosmetics industry and
as low as 5% to 10% in the industrial-equipment industry
 Competitive-parity – set promotion budget to achieve share-of-voice
parity with competitors
 Objective-and-task – estimating the costs of performing stated
communication tasks
 E.g. the advertiser hopes to reach 80% (40 million prospects) with the advertising
message; the company estimates 50 million potential users and sets a target of
attracting 8% of the market-that is, 4 million users
EFFECTIVE COMMUNICATIONS
6) Decide on media mix
 Companies must allocate the marketing communications budget over
the major modes of communication
 Each communication tool has its own unique characteristics and costs
 Companies are always searching
for ways to gain efficiency by replacing one
communications tool with others
EFFECTIVE COMMUNICATIONS
7) Measure results
 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
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
MASS COMMUNICATIONS
MASS COMMUNICATIONS
Advertising – any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor
Advertising is a form of marketing communication used to encourage,
persuade, or manipulate an audience to take or continue to take some action
 Most commonly, the desired result
is to drive consumer behavior with
respect to a commercial offering
 In Latin, ad vertere
means "to turn toward"
MASS COMMUNICATIONS
Advertising objectives:
 Informative advertising aims to create
brand awareness and knowledge of new
products or new features
 Persuasive advertising aims to create
liking, preference, conviction, and
purchase of a product or service
 Reminder advertising aims to stimulate
repeat purchase of products and services
 Reinforcement advertising aims to
convince current purchasers that they
made the right choice
MASS COMMUNICATIONS
Mass media for mass marketing communications:
 Print (newspapers, magazines, etc.) from the late 15th century
 Recordings (tapes, cassettes, cartridges, CDs) from the late 19th century
 Cinema from about 1900
 Radio from about 1910
 Television from about 1950
 Internet from about 1990
 Mobile phones from about 2000
MASS COMMUNICATIONS
Out-of-home advertising (OOH) – focused on marketing to consumers when
they are "on the go" in public places, in transit, waiting (such as in a medical
office), and/or in specific commercial locations (such as in a retail venue)
 Billboards
 Street furniture
 Transit
 Alternative
MASS COMMUNICATIONS
Sales promotions are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product
availability, used to:
 Gather information about what type of customers
one draws in and where they are
 Jumpstart sales
 The ultimate goal of sales
promotions is to stimulate
potential customers to action
MASS COMMUNICATIONS
Sales promotions include:
 Contests and games
 Product giveaways
 Demonstrations
 Loyalty programs
 Premiums
 Discounts
MASS COMMUNICATIONS
Event and experience marketing – the activity of designing
or developing a themed activity, occasion, display, or exhibit
(such as a sporting event, music festival, fair, or concert), to:
 Promote a product, cause, or organization
 Identify with a particular target market or lifestyle
 Increase awareness of company or product name
 Create experiences and evoke feelings
 Express commitment to the community or on social issues
 Entertain key clients or reward key employees
MASS COMMUNICATIONS
Successful sponsorships of events requires:
 Choosing the appropriate events – the event must meet
the marketing objectives and communication strategy defined
for the brand, the audience must match the target market
 Designing the optimal sponsorship program – the marketing
program accompanying an event sponsorship ultimately
determines its success
 Measuring the effects of sponsorship – assessing the extent of
media coverage and reported exposure from consumers
MASS COMMUNICATIONS
Public relations (PR) includes a variety of programs to promote
or protect a company's image or individual products
 Not only must the company relate constructively to customers,
suppliers, and dealers, it must also relate to a large number of
interested publics
 A public is any group that has
an actual or potential interest
in or impact on a company's
ability to achieve its objectives
MASS COMMUNICATIONS
PR functions:
1) Press relations – presenting news and information about the
organization in the most positive light
2) Product publicity – sponsoring efforts to publicize specific products
3) Corporate communications – promoting understanding of the
organization through internal and external communications
4) Lobbying – dealing with legislators and government officials to promote
or defeat legislation and regulation
5) Counseling – advising management about public issues, and company
positions and image during good and bad times
PERSONAL COMMUNICATIONS
PERSONAL COMMUNICATIONS
Direct marketing is a form of advertising that allows businesses
and nonprofit organizations to communicate straight to the
customer
 Market demassification has resulted
in an ever-increasing number
of market niches
 It emphasizes a focus on the
customer, data, and accountability
 Problems: irritation, unfairness,
deception, invasion of privacy
PERSONAL COMMUNICATIONS
Interactive Marketing refers to the evolving trend in marketing
whereby marketing has moved from a transaction-based effort
to a conversation
 Not synonymous with online marketing, although interactive marketing
processes are facilitated by internet technology
 The ability to remember what the customer
has said is made easier when we can collect
customer information online and we can
communicate with our customer more easily
using the speed of the internet
PERSONAL COMMUNICATIONS
Online advertising, also called online marketing or Internet advertising or
web advertising, is a form of marketing and advertising which uses the
Internet to deliver promotional marketing messages to consumers
 Email marketing
 Search engine marketing (SEM)
 Social media marketing
 Display advertising
 Mobile advertising
PERSONAL COMMUNICATIONS
Personal selling is a face-to-face interaction in which a seller
attempts to persuade a buyer to make a purchase
 Today most industrial companies rely heavily on a professional sales force
to locate prospects, develop them into customers, and grow the business
 In modern economies ~10% of the total workforce work fulltime in sales
occupations, both nonprofit and for profit
 Many consumer-based companies use
only direct salesforce to sell their products
 Interactive (two way communication), but
costly and with lack of control
PERSONAL COMMUNICATIONS
Sales-force objectives:
 Prospecting – searching for prospects, communicating information about
the company's products and services
 Selling – approaching, presenting, answering questions, overcoming
objections, and closing sales
 Servicing – providing various services to the customers-consulting on
problems, rendering technical assistance, arranging financing and delivery
 Information gathering – conducting market research and doing
intelligence work
 Allocating – deciding which customers will get scarce products during
product shortages
INBOUND VS OUTBOUND
„Inbound marketing focuses on creating quality content that pulls people
toward your company and product, where they naturally want to be
By aligning the content you publish with your customer’s interests, you
attract inbound traffic that you can then convert, close, and delight”
INBOUND VS OUTBOUND
Outbound marketing
 Also called interruption-based marketing
 Finding a medium with a large following
and periodically interrupt that following
with disassociated ads
 With some careful planning and a study of the demographics, a small
percentage of the audience will listen to the interruption in the storyline
and convert in to a customer
 Examples: TV & Radio ads, Direct Mail, Newspaper ads, Billboards
INBOUND VS OUTBOUND
Inbound marketing
 Also called permission-based marketing
 Communication via mediums in which
the audience has given you permission to communicate
 Examples: subscription based email marketing, social media, blog subscribers
 Answering the questions people are asking and proliferate those answers
around the web in anticipation of the question
 Examples: SEO, keyword targeting, landing page strategy, content/blog strategy
CONLUSIONS
 Marketing communications is based on informing, persuading, and
reminding about products and services using different channels
 Developing effective communications is a process starting with
identification of audience and objective within the budget constraints
 Mass communications is typically based on advertising, using mass media,
OOH, sales promotion, event marketing and public relations
 Personal communications relies on interactive and online marketing and
personal selling and can be the only choice for some products
 Altough new marketing paradigm follows the need for inbound marketing,
the use of „interruption-based” outbound marketing is still vast