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Lecture notes of 51 pages for the course 1.2 online branding at Hanze (good luck studying)
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Exam 1.2 online brandingWeek 1
MOC, chapter 1 integrated communications
Marketing and the instrument of the marketing mix
Marketing: the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create and exchange value, and satisfy individual and
organisational objectives.
Given the marketing objectives and goals, the target segments and the marketing position that has to
be defended, the tools of the marketing plan have to be decided upon. The marketer has a number
of tools to hand: the instruments of the marketing mix. Traditionally, these instruments are divided
into four categories, called the 4 P’s or the 4 Cs of the marketing mix.
Some of the tools of the marketing mix
Product
The product tool consists of three layers.
1. Core product: the unique benefit that is being marketed. The Unique place in the mind of the
consumer that will be focused upon. Often the brand is a summary, a visualisation of this
core benefit and all the associations it leads to. The core product has to be translated into a
2. Tangible product/ actual product: has product features, a certain level of quality, the
available options, design and packaging are important instruments by which a core product
can be made tangible.
3. Augmented product: gives the tangible product more value and more customer appeal. Can
be defined as the ‘service layer’ on top of the tangible product. Includes elements such as
delivery, installation services, after-sale services and management of complaints.
,Price
Price is the only marketing instrument that does not cost anything, but provides the resources to
spend on production and marketing activities.
List price: the ‘official’ price of a product. However, discounts and incentives of all kinds can be used
to make the product more attractive. Systems of down payments and payments periods (afterpay,
klarna), combined with attractive interest rates, can also be used to make the offering more
attractive and ensure that the immediate budget constraint is less of a problem for the consumer.
Price cuts are a effective way to attract consumers but price cuts mean losing margin and profit and
the customer may get used to discounts and may gradually be educated to buy on price and be a
brand-switcher. So the regular use of the price instrument is incompatible with building a strong
position and a strong brand on the basis of product characteristics or benefits. Therefore, good
marketing can be defined as avoiding the price tool as much as possible.
Place or contribution
The process of bringing the product from the production site to the customer. This involves
transporting the product, keeping an inventory, selecting wholesalers and retailers, deciding on
which types of outlet the product will be distributed in, and the assortment of products to be offered
in the various outlets.
Distribution strategy also implies maintaining co-operation between the company and the
distribution channel, and finding new ways to distribute products, such as infomercials (an
advertising film which promotes a product in an informative and supposedly objective style) and e-
commerce (he buying and selling of goods and services over the Internet).
Promotion or marketing communications (MC)
The fourth and most visible instruments of the marketing mix. They involve all instruments by means
of which the company communicates with its target groups and stakeholders to promote its products
or the company as a whole. The instruments of the communications mix are introduced in the next
section.
The communications mix
Marketing communications is a process through which organisations and audiences engage with one
another. Marketing communications can inform and persuade audiences, they can differentiate the
offering from one company or brand from those of others, and they can reinforce the relationship
,between an organisation and its audiences. A large variety of marketing communications
instruments exists, each with their own typical characteristics, strengths and weaknesses. The tools
of the communications mix are presented in the last column of the table above.
Advertising: non personal mass communications using mass media such as TV, radio, newspapers,
magazines, billboards, banners on websites, pre-roll ads in online videos, advertisements on social
media, etc. The content of which is determined and paid for by a clearly identified sender (the
company).
Brand activation: the integration of all available communications means in a creative platform in
order to activate consumers by stimulating interest, initiating trial and eventually securing consumer
loyalty. It is a tool used to build brand through interaction with target audiences as it helps increase
frequency, consumption and penetration of the brand. Brand activation refers to a campaign, event,
or interaction through which your brand generates awareness and builds lasting connections with
your target audience. it is a marketing process of bringing a brand to life through creating brand
experience. Offering car buyers a test drive is a form of brand activation. Sales promotions, as a part
of brand activation, are sales-stimulating campaigns, such as price cuts, coupons, loyalty
programmes, free samples, etc. Point-of-purchase communications are communications at the point
of purchase or point of sales. They include several communications tools such as displays,
merchandising, etc.
Direct marketing communications: personal and direct way to communicate with customers and
potential clients or prospects. Personalised brochures and leaflets (with feedback potential), direct
mailings, telemarketing actions, direct response advertising, email campaigns, etc., are possible ways
using direct marketing communications.
Sponsorship: implies that the sponsor provides funds, goods, services and/or know-how (practical
knowledge or skill) The sponsored organisation will help the sponsor with communication objectives
such as building brand awareness or reinforcing brand or corporate image. Sports, arts, media,
education, science and social projects and institutions, and TV programmes, can be sponsored.
Events are often linked to sponsorship; a company can sponsor an event.
Public relations: consists of all the communication a company instigates (aanzet tot) with its
audiences or stakeholders. Press releases and conferences, some of the major public relations tools,
should generate publicity. Publicity is impersonal mass communications in mass media, but it is not
paid for by a company and the content is written by journalists (negative publicity is also possible).
Exhibitions and trade fairs: are, particularly in business-to-business and industrial markets, of great
importance for contacting prospects, users and purchasers. A trade fair (trade show, trade exhibition,
or trade exposition) is an exhibition organized so that companies in a specific industry can showcase
and demonstrate their latest products and services, meet with industry partners and customers,
study activities of rivals, and examine recent market trends and opportunities. They provide
an excellent opportunity to assess opinions from clients and determine market potential, conduct
research and evaluate competition, develop commercial structures by identifying new agents and
distributors, and initiating joint ventures and project partnerships.
Besides these traditional instruments of the communication mix, new formats and media are
increasingly used.
, Marketing communications try to influence or persuade the (potential) consumer by conveying
(overbrengen) a message. This message transfer may be directed to certain known and individually
addressed persons, in which case it is called personal communications.
The message transfer may also be directed to a number of receivers who cannot be identified, using
mass media to reach a broad audience. This is called mass communications. Personal
communications are mainly direct and interactive marketing actions and personal selling. All other
promotional tools are mass communications.
Personal vs mass marketing communications
Another way of categorising marketing communications instruments is to differentiate between
theme or image communications and action communications.
Image or theme communications, above-the-line communications(ATL): called above the line refers
to the fee an advertising agency used to earn. Above the line promotional tools used to lead to a 15%
commission fee on media purchased. The advertising is going to be deployed around a wider target
audience, mass media advertising, e.g. television (TVC), radio, or billboards. The advertiser tries to
tell the target group something about the brand or products and services offered. The goal of image
communications could be to improve relations with target groups, increase customer satisfaction or
reinforce brand awareness and brand preference.
Action communications, below-the-line communications: communications instruments for which
the 15% rule was not applicable. Action communications seek to influence the buying behaviour of
target groups and to persuade the consumer to purchase the product. The primary goal is to
stimulate purchases.
Products are promoted in media other than mainstream radio or television. Below-the-line
advertising campaigns include direct mail campaigns, trade shows, catalogs, and targeted search
engine marketing. The advertising is going to target a specific group of potential consumers.
Integration of marketing communications
Integrated marketing communications (IMC): IMC is the process of developing and implementing
various forms of persuasive communication programs with customers and prospects over time. The
goal of IMC is to influence or directly affect the behaviour of the selected audience. IMC considers all
sources of brand or company contacts which a customer or prospect has with the product or the
service as potential delivery channels for future messages. Further, IMC makes use of all forms of
communication which are relevant to the customer or prospect, and to which they might be
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