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Marketing Communications: summary lectures and handbook

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  • Marketing Communications
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  • Marketing Communications

This summary contains all lecture notes and content of the book 'Marketing Communications: A European Perspective' by P. De Pelsmacker (chapters 1-7 and 13-14). Passed the exam with 18/20.

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  • Hoofdstuk 1-7 en 13-14
  • August 8, 2021
  • 129
  • 2020/2021
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MARCOM


Samenvatting Marketing Communications
CHAPTER 1: INTEGRATED COMMUNICATIONS
CHAPTER 2: BRANDING
CHAPTER 3: HOW MARKETING COMMUNICATIONS WORK
CHAPTER 4: MARKETING COMMUNICATIONS PLANNING
CHAPTER 5: ADVERTISING
CHAPTER 6: ONLINE COMMUNICATION
CHAPTER 7: MEDIA PLANNING
CHAPTER 13: MEASURING CAMPAIGN EFFECTIVENESS
CHAPTER 14: ETHICAL ISSUES IN MARKETING COMMUNICATIONS


CHAPTERS 8-12: not included

Prof. P. De Pelsmacker
2020-2021
Colleges en handboek (SEM1)






, MARCOM

Chapter 1: Integrated Communications

1.1 Marketing and the instruments of the marketing mix
Marketing = the process of planning and executing the conception, pricing, promotion and
distributions of ideas, goods and services to create and exchange value, and satisfy
individual and organizational objectives

In order to reach goals and objectives, companies pick the tools of the marketing plan. Marketing
communications is the most visible thing of marketing!

Table 1.1 Instruments of the marketing mix (p. 2)
4 Ps: inside-out, making a product, placing it somewhere and promoting it
4 Cs: from the customer’s point-of-view, products are not promoted, but communicated about

Product Price Place Promotion
(customer need) (cost to the customer) (convenience) (communication)

Benefits, features, options, List price, discounts, credit Channels, logistics, Advertising, public
quality, design, branding, terms, payment periods, inventory, transport, relations, sponsorship,
packaging, services, incentives assortments, locations brand activation, direct
warranties marketing, point-of-
purchase, exhibitions and
trade fairs, personal selling,
online communication


Product
The product has three layers:
1. Core product: unique benefit that is being marketed by focusing on the unique place in the mind of
the consumer (visualisation/summary of core benefit and associations it leads to)

2. Tangible product: product features, a certain level of quality available options, design and
packaging (make a core benefit tangible)

3. Augmented product: gives the tangible product more value and customer appeal because it
includes prompt delivery, installation service, after-sales service, management of complaints…
(‘service layer’)

Price
Price provides the resources to spend on production and marketing activities. However, good marketing
mostly means avoiding the price tool as much as possible.

List price = official price of a product (made attractive by discounts and incentives, down
payments, payment periods, interest rates…)

Price cuts…: + attracting consumers
- losing margin and profit
- customer gets used to lower price and switches the brand when the price goes back to
‘normal’

Place
Distribution means the process of bringing the product from the production site to the customer: transporting,
keeping an inventory, selecting wholesalers and retailers…

Important: companies need to maintain a co-operation between the company and the distribution
channel AND find new ways to distribute products e.g. infomercials)






, MARCOM

Promotion
Promotion is the most visible instrument of the marketing mix, because it involves instruments with which
the company communicates with target groups and stakeholders to promote their products/company.

1.2 The communications mix
Marketing communications spreads messages in order to get cognitive, attitudinal and behavioral
responses. Marketing communication…:
- can inform and persuade audiences
- can differentiate the offering from one company or brand from others
- can reinforce the relationship between an organization and its audiences

Promotion (communication) is online as well as offline, they are integrated. There are multiple tools:

1. Offline advertising
- Advertising is a one-to-many tool, which means it’s a non-personal mass communication tool.
However, online advertising is more personal, but still reaches the mass

- Advertising has a clearly identified sender (the company)

- Most advertising is a monologue, which mean customers can’t interact with a brand. However, most of
the times there is an invitation to interaction (‘Visit our website’). Online, interaction is possible (e.g.
clicking on a website)

- Advertising is paid for, especially to be on the radio, on the internet, on TV… There’s persuasion
knowledge: people realize/know a brand has paid to advertise its product, which leads to scepticism

e.g. Product placement in movies is never seen as advertising, which makes it effective and will
lead to a disappearing scepticism

—> advertisers try to avoid the scepticism by using hybrid forms (mix)

- Advertising works on the long term, which means it has an effect on the mind of people, but not
immediately on the behavior of people

—> intermediate effects: customers learn that a product exists, start liking it, then develop
intentions to buying it and then decide to buy it

—> different when the ads announce a promotion (‘buy this cheaper this week’)

2. Online advertising
Not so different from offline advertising, however, the possibilities are endless: personalized message,
easier to measure the effects of your campaign, target a certain audience, fast communication…

! Efficiency, size, scope, scale, speed, measurement… is easier

3. Brand activation
Contrary to advertising (which works on the mind), brand activation wants to change the behavior of
customers immediately. It visions to make customers undertake action by stimulating interest, initiating trial
and securing consumer loyalty. The brand is build through interaction with target audiences.

- Sales promotions: giving people an incentive to buy a product, it’s sales-stimulating. It’s about
stimulating sales, but it can be image destroying (advertising a product because of a temporary
discount, and not because of its characteristics, is dangerous)

e.g. price cuts, coupons, loyalty programs, competitions… (‘‘buy two products today and get the
third one for free”)

—> sales promotions often change the price expectation and perception of customers



, MARCOM

- In-store communications: everything presented on the shop floor (messages on shelfs, products in
pictures, tv-screens with videos)

- Experience marketing: bringing people in touch with a product in a relatively cheap way (e.g. test drive
with a car, flagship stores where people can try on Nikes, taste M&M’s…)

- Point-of-purchase communications: communication at the point of purchase/sales (e.g. in the shop),
such as displays, merchandising, store layouts…

3.1 Experience marketing
= the art of creating an experience where the result is an emotional connection to a person, brand, product or
idea
Synonyms: field marketing, customer service, special events, product promotions, PR stunts

Fuel Nozzle Advertising (hendel om gas in auto te pompen) is very popular, since it is a very visible way to
promote a product. Television advertising therefore is old-fashioned, because people don’t see it anymore or
have advertising blindness.

e.g. the Red Bull launch campaign was a Fuel Nozzle Advertising-campaign
e.g. advertising on a parking meter/toilet door is also useful, because people HAVE to look at it

People are exposed to the product and can immediately buy the product. This is very useful, because people
can immediately act upon the information.

4. Online communications
Online tools offer new ways to communicate interactively with customers and stakeholders via the Internet/
mobile devices. The possibilities are endless: personalized message, easier to measure the effects of your
campaign, target a certain audience, fast communication… (better efficiency, size, scope, scale, speed,
measurement…)

e.g. online banners, pre-roll video ads, advertising social media…

5. Direct marketing communications
- Direct mailing: personal mailings
- Telemarketing: companies call customers
- Catalogue selling: sending out catalogues/booklets on paper or through e-mail
e.g. personalized brochures, leaflets, direct response advertising…

Direct marketing has grown because of the online market, but also because it’s personal, direct and
measurable.
e.g. clicks and reads can be easily checked

6. Sponsorship
The sponsor provides funds, goods, services and/or know-how. In return, the sponsored organization builds
brand awareness or reinforces the brand/corporate image.

Sponsorship is always about giving something in return (sales, sympathy from the public, visibility…). There
will be a carry over effect: when people love what you sponsor, those people will (automatically) love your
company as well. There will be a match-up.

Important: sponsorship can be cash (money) or kind (good/services)

Sponsorship is possible with sports, arts, media, education, science, social projects, social institutions and
TV programs. Events can also be sponsored, but also organized by a company itself.

7. Public relations
Public relations is mainly a corporate communications tool, which builds and maintains goodwill and
reputation to generate positive publicity. In order to do so, it addresses multiple stakeholders.




, MARCOM

Publicity = impersonal mass communications in mass media, but not paid for by a company and the
content is written by a journalist (negative publicity is therefore possible)

Stakeholders = groups of individuals or organizations with whom a company wants to create goodwill

Examples: events, press releases, events…

8. Trade fairs and exhibitions
In B2B and industrial markets, trade fairs and exhibitions are important for contacting prospects, users and
purchasers.

Categorizing marketing communications instruments
First way to categorize marketing communications instruments:
- Personal communications: influencing or persuading a (potential) consumer by conveying them a
personally addressed message

e.g. direct and interactive marketing actions, personal selling

- Mass communications: message transfer to a number of receivers who cannot be identified, using
mass media to reach a broad audience

Table 1.2 Personal versus mass marketing communications (p. 5)
The practical implications of the selection mix deed on the situation and the creative implementation and
execution of the communications instruments.

Personal communications (personal Mass communications (tv, outdoor
selling, online advertising…) advertising, sponsorship, pr…)

Reach of big audience
Speed slow fast
Costs / reached person high low

When mass media is calculated by cost per person/reach is relatively low. Personal selling (/communication) however,
requires the cost of your employee, a car to drive there, small talk… Which is why it’s a slower and more expensive
process.

Exception: online marketing can be really expensive when highly targeted

Influence on individual
Attention value high low
Selective perception relatively lower high
Comprehension high moderate-low

The way personal and mass communication have an influence on the customer. In mass communications, the
attention value is low, since people don’t see tv or outdoor advertising. Selective perception is bad, because it
means you only see part of the ads. Comprehension in mass communications is very low: people forget the brand,
don’t know why they should by the brand…

Feedback
Direction two-way one-way
Speed of feedback high low
Measuring effectiveness accurate difficult

Mass media is a monologue, takes long to bring in results of the campaign and therefore it’s difficult to analyze if the
campaign was effective (e.g. which part of campaign lead to increased sales?). Online and in personal communication
is two-way, as people can click on the ad, leave their contact details…


Online advertising has all the benefits of personal and mass communications: has a big reach (mass), but
can also gain interesting data about consumers (personal).






, MARCOM

Second way to categorize marketing communications instruments:
- Image or theme communications: the advertiser tries to tell the target group something about the
brand or products/services that are offered

- Goal: improve relations with target groups, increase customer satisfaction or reinforce brand
awareness, brand preference and loyalty
- Effect: positive influence on (buying) behavior of target group
- Also known as above-the-line communication (mass media)

Goal: change something in the mind, knowledge, awareness of people
Example: sponsorship, public relations…

- Action communications: seek to influence the buying behavior of target groups and persuade the
consumer to purchase the product

- Goal: stimulate purchases
- Also known as below-the-line communication

Example: brand activation

The difference of above-the-line and below-the-line refers to an advertising plan that companies used to
make. Above the line, they put the media they were going to use. Below the line there were other
promotional means: events, promotion…

Above-the-line: traditional mass media advertising (to make the brand visible)
Below-the-line: sales promotions (action communication, making people buy)

For everything above the line, the company had to address an advertising agency, which would be paid a fee
of 15% (commission). The 15%-rule was not applicable on ‘below-the-line’ tools.

Important: the difference does not exist anymore, because agencies now charge a fixed/hourly fee

In practice, thema and action communications are hard to distinguish! However, above-the-line and below-
the-line are not really synonyms.

Customer satisfaction and loyalty
It is a lot easier and cheaper to retain customers, since acquisition is way more expensive and troublesome.
This is translated into the satisfaction-profit chain:

Satisfaction —> loyalty —> profit

The more satisfied the customers are, the more loyal they will become. The more loyal they are, the more
profit they generate. Loyalty has two components:

1. Attitude: a loyal person believes the brand is the best one and always wants to buy it
2. Behavioral: if a person believes that that brand is the only good one, he will always buy that one and
be behaviorally loyal

Important to realize is that a lot of people buy the same product, not because they’re loyal to it, but because
they’re used to buying it. Loyalty therefore refers to exclusiveness: always buying from the same brand.

Important: loyal customer don’t need anymore advertising AND they’re advocates for the brand,
which means free advertising (word-of-mouth)






, MARCOM

Loyal consumers
The advocates are the truly loyals, since the
company does more for them than promised (e.g.
surprising consumers). They are exclusively loyal to
a brand.

Hostages are not happy with a brand, but they will
often stay with a brand when there’s a monopoly
(e.g. NMBS trains are mostly cancelled, but the
consumer has only one option).

When exit barriers disappear, consumers turn into
terrorists. They immediately quit the brand and
find something else.

Variety seekers are satisfied, but just want to try
something else because they like change.

Loyalty does not linearly increases with satisfaction. A 7 on the ‘satisfaction’ scale refers to a customer that
is not delighted, however, the brand does their job. A brand needs a certain level of satisfaction to create
loyalty.

There could be exit barriers such as:
- financial barriers (leaving the company/brand would cost money, e.g. leaving a bank costs money),
- psychological barriers (e.g. changing your provider requires changing your phone number)
- technological barriers (e.g. switching to Apple in a company where everyone uses Microsoft is difficult)
- contractual barriers…

However, a company can also give positive exit barriers (e.g. ‘If you stay long enough, you will be rewarded
in the end). Exit barriers are interesting because customers cannot ‘run away’ easily. However, dissatisfied
customers will always look for a different company/brand.

1.3 Integration of marketing communications
Integrated marketing communications (IMC) is a process of developing and implementing persuasive
communications programs with customers and prospects over time and doing so consistently.

Consistent: media, tools and marketing from the same brand should have the same look&feel
(consistent advertising is the bear minimum)

Goal: directly influence or affect the behavior of the selected audience by using all forms of
communication that are relevant for the customer or prospect

IMC is a 360°-communication perspective, because it starts from the customers’ point of view and uses all
possible communication touchpoints with the customer. It is customer-oriented, so it builds dialogues and
relationships between brands and customers/stakeholders/prospects.

Important: IMC is data-driven, because it’s based on customer information

IMC also permeates all levels of a company. Therefore, it should be the driving force behind the focus of a
company: not only promoting products, but taking a customer-centre view and operationalizing it for
profitable brand building.






, MARCOM

Figure 1.1 Stages in IMC development (p. 7)

1. Financial and strategic Constantly monitor marketing communications ROI. Information and knowledge
integration about served segments are linked to this evaluation on a permanent basis.

2. Application of information Maintain accessible data sources and build segmented databases. Translate
technology data into knowledge. Effectively incorporate these data in marketing
communications.

3. Redefining the scope of Gather extensive information about customers and apply to marketing
marketing communications communications. Evaluate feedback.

4. Tactical coordination of Build consistent and synergetic and marketing communications programs, using
marketing communications. multiple touchpoints with customers.


If companies want IMC to become a prime business driver, they have to follow step 1 first: building,
monitoring and measuring the profitability of well-integrated marketing communications. To do so, they have
to target markets thoroughly and build marketing programs that are profitable.

ROMI (Return On Marketing Communications): monitoring profitability for strategic and financial
reasons

The bottom of the pyramid (step 4) means communicating with customers from their perspective.

The two principles of a marketing communications mix
By combining communications instruments, a synergetic effect is reached and communications effort
becomes homogeneous (‘seamless’). Moreover, IMC makes it possible for companies to convey
consistent messages to all target audiences through all available forms of contact and message channels.

1. Consistency: all marketing instruments work in the same direction and don't conflict with each other
2. Synergy: the effects of the tools of the marketing communications mix are mutually reinforcing

Example: paying money for sponsorship and the sales crew (inviting customer for a football match
and discussing the contract over some beers) —> aligning multiple tools

Example: when a James Bond movie included BMW (and not Aston Martin), BMW launched a
poster campaign with ‘shaken, not stirred’, which is a typical phrase for James Bond

Creating synergies in marketing communications
- Sales team has an easier job when brand is well-known through advertising or sponsorship
- A promotional campaign that is supported by advertising is more successful
- PR, sponsorship and advertising can have synergetic effects on company and brand image
- Website have to be supported by offline campaigns

Customers’ point of view
Consumers are more sensitive to commonalities and discrepancies among messages, so companies have to
create added value by faster and better comprehend communication.

Important: companies have to manage each point of contact between the consumer and the
product/organization

Figure 1.2 The marketing mix and integrated marketing communications (p. 10)
Gives an overview of elements of the communications mix, and the potentially integrating role of marketing
communications.

To ensure successful IMC, there needs to be a strategic integration of the departments that are
responsible for parts of the communications function. Ideally, there’s one communications manager who
supervises and integrates all the specialized communication functions.

Important: strategic is rather difficult as it requires a change of structure, and therefore has barely
been implemented in companies


, MARCOM

Table 1.3 Classic and integrated communications (p. 12)
Integrated communications changes awareness and attitudes, but also directly influences behavior. Classic
communications will also reach the key objectives of modern marketing, however, integrated
communications will do it more efficiently.

Both the nature of communication and the attitude of the consumer change. Therefore, there’s a difference
between:
- traditional communications: mass media delivering generalized transaction-oriented messages
(hard-sell: putting the brand on the market in order to persuade consumers)
- integrated communications: personalized, customer-oriented, relationship-based and interactive
(soft-sell: aimed at retaining consumers, keep people loyal)

Classic communications Integrated communications

Aimed at acquisition Aimed at retention, relationship management, loyalty

Mass communications Selective communications

Monologue Dialogue

Information is sent Information is requested

Information provision Information — self service

Sender takes initiative Receiver takes initiative

Persuasive ‘hold up’ Provide information

Effect through repetition Effect through relevance

Offensive Defensive

Hard sell Soft sell

Salience of brand Confidence in brand

Transaction-oriented Relationship-oriented

Attitude change Satisfaction

Modern: linear, massive Postmodern: cyclical, fragmented

Classical communication tools Digital technology

Local markets Globalisation


1.4 Integrating marketing communications across cultures
Culture = collective programming of the mind which distinguishes the members of one group or
category of people from those of another group

= the consistent configuration of learned behavior and results of behavior whose
component element are shared and transmitted by the members of a particular society

Very often, people forget a culture has been learned as they are very self-evident by people in the same
culture. This is the self-reference criterion: the unconscious tendency to refer everything to your own
cultural values or the consideration of your own habits, values etc. being superior

Ethnocentrism: self-reference criterium is tied to our national culture, interpretation of situations,
evaluation of people, communication, negotiation and decisions about attitudes
—> stereotypes exist because of ethnocentrism

Important: Companies always have to avoid the self-reference criterion






, MARCOM

Components of culture
- Non-verbal language: facial expressions, body language
- Verbal language: the way we talk
- Gender roles: what should men/women do or not do?
- Sense of humor: never use a universal humorous idea (because it differs in every country
- Religion: varies across the globe
- Values and attitudes

Stereotype Content Model (SCM)
- COO competence: the consumer appraisals about a country’s capability, efficacy and efficiency, which
originates from the country’s degree of modernity, innovativeness, technology, sophistication, economic
development and political power

- COO warmth: consumer appraisals about a country’s friendliness, cooperativeness and
trustworthiness, which originates from past and current cultural, political and economic relationship
between the foreign country and a consumer’s own country

Individuals perceive countries to have different degrees of competence and warmth and unintentionally
transfer these perceptions to companies and products originating from these countries:
- warm and competent
- warm and incompetent
- cold and competent
- cold and incompetent

Often, there’s a universal stereotype of a country, which leads to countries belonging to the same category
(e.g. Italy is warm and incompetent).

RESEARCH: Country-of-origin stereotypes and consumer responses to productharm crises
e.g. “People died because of poisoned chocolate” was a problem that was launched in different countries of origin
(COO). There will be a Stereotype Content Model (SCM)!

Purpose: How and when do stereotypes of competence and warmth evoked by a foreign company’s country-
of-origin impact blame attributions and attitudes toward the company’s products, when the company is
involved in a product-harm crisis?

—> Do consumer ethnocentrism or animosity toward a country moderate these country- of-origin effects?



The COO competence influences the attitude towards the
brand. The COO warmth has an effect on the blame of a
country and the attitude toward the brand.

The more competent the brand, the better the attitude
towards the brand. The warmer the company, the better the
attitude and the less blame (intermediate effect of blame).




Two empirical studies (about chocolate scandal or about exploding
lightbulbs) show that a country has a more positive attitude when it’s a
country-of-origin. Otherwise, the country is perceived

- When the product is situated in a warm country, the blame is less and
often external reasons are highlighted (<—> cold countries)

-Warmth leads to less blame and less blame leads to higher attitudes

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