1. Marketing Management
MBA CP 205
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
1

2. Developing and Managing
Marketing Communications
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
2

3. Developing & Managing Marketing
Communications
Learning Objectives:
• Know what is the role of marketing communications.
• Know how marketing communications work.
• Know what are the major steps in developing effective
communications.
• Know what is the communications mix and how should it be set.
• Know what is an integrated marketing communications program.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
3

4. Developing & Managing Marketing
Communications
Role of Marketing Communications
•
Marketing communications are the means by which companies
attempt to inform, persuade and remind consumers – directly or
indirectly – about the products and brands that they sell.
•
Marketing communications allow firms to link their brands to other
people, places, experiences, feelings, and things.
•
The marketing communication mix consists of six major modes of
communications:
1. Advertising: Any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
4

5. Developing & Managing Marketing
Communications
2. Sales promotion: A variety of short-term incentives to encourage
trial or purchase of a product or service.
3. Events and experiences: Company sponsored activities and
programs designed to create daily or special brand-related
experiences.
4. Public relations and publicity: A variety of programs designed to
promote or protect a company's image or its individual products.
5. Direct marketing: Use of mail, telephone, E-mail or internet to
communicate directly with and or solicit response or dialogue from
specific customers and prospects.
6. Personal selling: Face-to-face interaction with one or more
prospective purchasers for the purpose of making presentations,
answering questions and procuring orders.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
5

6. Developing & Managing Marketing
Communications
Common Communication Platforms
Advertising
 Print and
broadcast ads
 Packaging outer
and inserts
 Brochures
 Posters &
leaflets
 Billboards
 Display signs
 POP displays
 Audio visual
material
Sales Promotion
 Contests, games
 Premiums and gifts
 Sampling
 Trade fairs
 Exhibits
 Demonstrations
 Coupons
 Rebates
 Low interest
Events/
Experienc
es
 Sports
 Festivals
Public
Relations
Direct
Marketing
Personal
Selling
 Seminars
 Annual
 Catalogs
 Mailings
 Arts
 Causes
reports
 Charitable
 Tele-marketing
 E-shopping
presentations
 Sales meetings
 Samples
 Factory
donations
 TV shopping
 E-mail
 Trade fairs
 Incentive
tours

Publications
 Company
 Voice mail
 Sales
programs
magazine
financing
 Entertainment
 Logos
6

7. Developing & Managing Marketing
Communications
Integrated Marketing Communications to build Brand Equity
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
7

8. Developing & Managing Marketing
Communications
The Communications Process Models
•
The following models are useful to understand fundamental
elements of effective communications:
1. Macro-model and
2. Micro-models.
•
Macro-model has nine elements.
•
Two represent major parties in communication – sender and
receiver.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
8

9. Developing & Managing Marketing
Communications
•
Two represent major communication tools – message and media.
•
Four elements represent major communication functions –
encoding, decoding, response and feedback .
•
The ninth element is noise the random & competing messages
that interfere with intended message.
•
The more the sender’s field of experience overlaps with that of the
receiver, the more effective the message is likely to be.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
9

10. Developing & Managing Marketing
Communications
Field of Experience
Sender’s
field
01/30/14 07:02
Receiver’s
field
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
10

11. Developing & Managing Marketing
Communications
Elements in the Communications Process
Sender
Encoding
Message
Decoding
Receiver
Media
Noise
Feedback
01/30/14 07:02
Response
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
11

12. Developing & Managing Marketing
Communications
•
During the communication process, following processes may be
operating:
 Selective attention,
 Selective distortion and
 Selective retention.
•
Advertisers go to great lengths to gain consumers’ attention.
•
Receivers will hear what fits into their belief systems. In long term
memory, consumers retain only a small fraction of the messages
that reach them.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
12

13. Developing & Managing Marketing
Communications
Micro – Models of consumer responses
•
These concentrate on consumers’ specific responses to
communications. There are four classic response hierarchy
models:




AIDA model,
Hierarchy-of-effects model,
Innovation adoption model and
Communication model.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
13

14. Developing & Managing Marketing
Communications
Micro-Models: Response Hierarchy models
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
14

15. Developing & Managing Marketing
Communications
•
All models assume that the buyer passes through cognitive,
affective and behavioral stages. (Learn-feel-do)
•
Learn-feel-do sequence is appropriate when consumers have
high involvement with a product category perceived to have high
differentiation.
•
Do-feel-learn is relevant when consumers have high involvement
but perceive little differentiation.
•
Learn-do-feel is relevant when consumers have low involvement
and perceive little difference in the product category.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
15

16. Developing & Managing Marketing
Communications
•
Marketers can plan communications better by choosing the right
sequence.
•
Assuming high involvement and high perceived differentiation, the
hierarchy of effects model can be illustrated in the context of
marketing communications as follows:
•
Awareness: The communicator’s task is to make the target
consumers aware of the object.
•
Knowledge: The consumers may be aware but do not have
sufficient information. The company may decide to select
developing brand knowledge as the communication objective.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
16

17. Developing & Managing Marketing
Communications
•
Liking: If the consumers view the brand unfavorably based on the
perceptions created due to the problem with message execution,
company needs to revamp its communication strategy.
•
Preference: If the consumers do not prefer the product, the
communicator needs to build preference by comparing quality,
value or performance with likely competitors.
•
Conviction: The communicator builds conviction by informing that
the product provides best solution to the consumer’ problem.
•
Purchase: The communicator must lead consumer to purchase by
offering lower price, premium or product trial.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
17

18. Developing & Managing Marketing
Communications
Steps in Developing Effective Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Manage IMC
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
18

19. Developing & Managing Marketing
Communications
•
The target audience is a critical influence on communicator’s
decision on what, how, when, where and to whom to say it.
•
Target audience can be defined in terms of usage and loyalty.
Communication strategy differs depending on usage and loyalty.
•
Image analysis can be conducted to profile target audience in
terms of brand knowledge to gain further insight.
•
Familiarity scale can be used to measure consumers knowledge
and respondents who are familiar can be asked how they feel
about the product using favorability scale.
•
The two can be combined to develop insight into the nature of
communication challenge.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
19

20. Developing & Managing Marketing
Communications
Familiarity – Favorability Analysis
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
20

21. Developing & Managing Marketing
Communications
Communication Objectives
Category Need
Brand Awareness
Brand Attitude
Purchase Intention
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
21

22. Developing & Managing Marketing
Communications
•
Category need involves establishing a product category as
necessary to satisfy a perceived discrepancy between a current
motivational state and a desired emotional state.
•
Brand awareness refers to ability to identify the brand within a
category in sufficient detail to make a purchase.
•
Brand attitude involves evaluation of the brand with respect to its
perceived ability to meet a current need.
•
Brand purchase intention refers to self instructions to purchase
the brand.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
22

23. Developing & Managing Marketing
Communications
Designing the Communications
•
Designing communications will require solving three problems:
 What to say (Message strategy).
 How to say it (Creative strategy).
 Who should say it (Message source).
•
In message strategy, the management searches for appeals,
themes, and ideas that will tie into brand positioning and help
establish POPs or PODs.
•
Buyers expect four types of rewards from a product: Rational,
sensory, social or ego satisfaction.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
23

24. Developing & Managing Marketing
Communications
•
Buyers may visualize these rewards from results-of-use
experience, products-in-use experience or incidental-to-use
experience.
•
Four type of rewards together with three types of experience
result in twelve types of messages.
•
Creative strategies are how marketers translate their messages
into a specific communication.
•
These can be classified as involving either ‘informational’ or
‘transformational’ appeals.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
24

25. Developing & Managing Marketing
Communications
•
Informational appeal elaborates on product or service attributes or
benefits.
•
Advertisements can be:




Problem solution ads,
Product demonstration ads,
Product comparison ads,
Testimonials from celebrity.
•
Informational appeals assume a very rational processing of
communication on the part of consumer.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
25

26. Developing & Managing Marketing
Communications
•
A transformational appeal elaborates on a non-product related
benefit or image. It attempts to stir up emotions that will motivate
purchase.
•
Communications use negative appeals such as fear, guilt and
shame to get people to do things or stop doing things.
•
Communications also use positive emotional appeals such as
humor, love, pride and joy.
•
The challenge in arriving at best creative strategy is ‘how to break
through the clutter’ to attract the attention of the consumers and
yet be able to deliver the intended message.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
26

27. Developing & Managing Marketing
Communications
•
The magic of advertising is to bring concepts on a piece of paper
to life in the minds of the target consumer.
•
In the print ad, the communicator has to decide on headline, copy,
illustration and color.
•
For a radio message, the communicator chooses words, voice
qualities and vocalizations.
•
If the ad is to be carried on TV or in person, all these elements
plus body language has to be planned.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
27

28. Developing & Managing Marketing
Communications
The Importance of Tag lines
Brand Theme
Ad Tagline
Our car is more spacious
‘More car per car’
It is prestigious to own our
brand of TV
‘Neighbor’s envy; Owner’s pride’
Our butter is tasty and fun to eat
‘Utterly Butterly delicious’
Our motor bike is fuel efficient
‘Fill it, Shut it, Forget it’
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
28

29. Developing & Managing Marketing
Communications
Selecting Communications channels
•
Communication channels may be personal and non-personal.
•
Personal communication channels derive their effectiveness
through individualized presentation and feedback.
•
Personal communications channels can be classified into three
types:
 Advocate channels: Company sales persons contacting buyers.
 Expert channels: Independent experts making statements to
target buyers.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
29

30. Developing & Managing Marketing
Communications
 Social channels: Neighbors, friends and family members talking to
target buyers.
•
Personal influence is especially important in two situations:.
 When products are expensive, risky or purchased infrequently.
 When the product suggests something about the user’s status or
taste.
•
Non-personal communications channels are directed to more than
one person and include media, sales promotions, events and
publicity.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
30

31. Developing & Managing Marketing
Communications
•
Media: Consist of print, broadcast, network (telephone, satellite),
electronic (Audio, video tapes, CD-Rom, web page) and display
media (Bill board, sign, posters).
•
Sales Promotions: Consist of consumer (Samples, coupons and
premiums), Trade ( ad and display allowances) and business &
sales-force promotions (Contests for sales reps).
•
Events and experiences: include sports, arts, entertainment and
cause events that create novel brand interactions with consumers.
•
Public Relations: Include communications directed to employees,
consumers, other firms, government and media.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
31

32. Developing & Managing Marketing
Communications
Deciding on Marketing Communications Mix
•
Firms allocate their marketing communications budget over six
major modes of communications:






Advertising,
Sales Promotion,
Public relations and publicity,
Events and experiences,
Sales Force and
Direct marketing.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
32

33. Developing & Managing Marketing
Communications
•
Advertising can be used to build a long term image for a product
or trigger quick sales. It can efficiently reach geographically
dispersed buyers. It has following qualities:
 Persuasiveness: Permits seller to repeat a message many times,
allows buyers to compare the messages of various competitors
and says something about sellers’ size, power and success.
 Amplified expressiveness: Provides opportunities for dramatizing
the company and its products through use of print, sound & color.
 Impersonality: It is a monologue, and not dialogue with audience.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
33

34. Developing & Managing Marketing
Communications
•
Companies use sales promotion tools to draw stronger and
quicker buyer response. They offer three distinct benefits:
 Communication: They gain attention and may lead the consumer
to the product.
 Incentive: Incorporate some concession, inducement or
contribution that gives value to the consumer.
 Invitation: Indicate a distinct invitation to engage in the
transaction now.
•
The use of public relations and publicity is based on three
qualities: High credibility, ability to catch buyers off guard and
dramatization.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
34

35. Developing & Managing Marketing
Communications
•
News stories and features are more authentic and credible to
readers than ads.
•
Public relations can reach prospects who prefer to avoid sales
people and advertisements.
•
Events and experiences have following advantages:
 Relevant: A well chosen event can be seen as highly relevant as
the consumer gets personally involved.
 Involving: Consumers find the events more actively engaging.
 Implicit: Events are more of an indirect ‘soft sell’.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
35

36. Developing & Managing Marketing
Communications
•
Direct marketing includes direct mail, telemarketing and internet
marketing. Direct marketing is:
 Customized: Message can be prepared to appeal to the
addressed individual.
 Up-to-date: Message can be prepared very quickly.
 Interactive: Message can be changed depending on the person’s
response.
•
Personal selling is the most effective tool in the later stages of the
buying process.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
36

37. Developing & Managing Marketing
Communications
•
It helps in building up buyer preference, conviction and action. It
has three characteristics:
 Personal interaction: Involves an immediate and interactive
relationship between two or more persons. Each party is able to
observe other’s reactions.
 Cultivation: It permits all kinds of relationships to spring up,
ranging from matter-of-fact selling relationship to deep personal
friendship.
 Response: It makes the buyer feel under some obligation for
having listened to the sales talk.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
37

38. Developing & Managing Marketing
Communications
Factors in setting the Marketing communication mix
•
Factors to be considered when developing the marketing
communication mix are:
 Type of product market, consumer or business market.
 Consumer readiness to make a purchase.
 Stage in the product life cycle.
•
Advertising is used less in business markets, yet it can be useful
during introduction of new products, more economical.
•
Sales force can contribute more effectively in consumer markets
by persuading dealers to keep increased stocks, build enthusiasm
and key account management
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
38

39. Developing & Managing Marketing
Communications
One of a series of Tiger woods ads
that are part of the Accenture
re-branding campaign
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
39

40. Developing & Managing Marketing
Communications
Managing Integrated Marketing Communications Process (IMC)
•
IMC is a concept of marketing communications planning that
recognizes the added value of a comprehensive plan.
•
It evaluates the strategic roles of a variety of communication
disciplines and combines these to provide clarity, consistency and
maximum impact through seamless integration of messages.
•
IMC forces the company to consider various ways in which the
customer comes in contact with the company, how it
communicates its positioning, relative importance of each vehicle
and timing issues.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
40

41. Developing & Managing Marketing
Communications
Recap:
• What is the role of marketing communications.
• How marketing communications work.
• What are the major steps in developing effective
communications.
• What is the communications mix and how should it be set.
• What is an integrated marketing communications program.
01/30/14 07:02
Prof. U.M. Amin, CMS,
JMI University, New
Delhi
41