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 organisational objectives.
4 categories of tools within the marketing mix:
Products (customer need): quality, design, packaging, warranty etc.
Price (cost to the customer): discounts, payment period, incentives etc.
Place (convenience): channels, inventory, transport, locations etc.
Promotion (communication):
o Advertising (Chapter 5)
o Brand activation (Chapter 7)
o Direct marketing (Chapter 8)
o PR (Chapter 9)
o Sponsorship (Chapter 10)
o Exhibitions & trade fairs (Chapter 11)
Marketing communications (MC) = the process through which organisations and audiences
engage with one another.
In the past, the 2 arrows at the bottom were non-existent!
1.2 The communication mix
1.2.1 Categorizing MC tools/instruments
Categorization 1
MC try to influence/persuade the (potential) customer by conveying a message. This
message transfer may be directed to:
Certain known & individually addressed persons = personal communications.
, E.g., direct & interactive marketing actions and personal selling.
A broad number of receivers who cannot be identified = mass communications.
E.g., all other promotional tools.
Personal communications Mass communications
Reach of big audience
Speed Slow Fast
Cost/reached person High Low
Influence on individual
Attention value High Low
Selective perception Relatively low High
Comprehension High Moderate-low
Feedback
Direction Two-way One-way
Speed of feedback High Low
Measuring effectiveness Accurate Difficult
Categorization 2
In image/theme communications the advertiser tries to tell the target group something
about the brand or products and services offered. They are also known as above-the-line
communications because above-the-line promotional tools used to lead to a 15%
commission fee on media space purchased. They are synonymous with mass media
advertising.
In action communications the advertiser tries to influence the buying behaviour of target
groups and to persuade them to buy the product. They are also known as below-the-line
communications because the 15% rule was not applicable.
However, this rule has lost its importance because most agencies now charge a fixed
or hourly fee instead of commissions.
Satisfactions leads to loyalty which leads to profit
Loyalty means that a person only buys its products from 1 single company
(behavioural) and truly believes there is no better supplier (attitudinal).
Advocates will partly do the advertising for you. Hostages exist when there are
certain exit barriers e.g., switching costs, a monopoly (e.g., only NMBS exist, you
cannot switch because there’s only 1 railroad company).
,1.3 Integration of marketing communications
Integration of marketing communications (IMC) = 360° communications: starts from the
customer point of view and works backwards to develop effective communication. It is
aimed at developing both behaviour & attitudes, and it uses all possible touchpoints with the
customers (= multiple touchpoint perspective).
The consumer sees communication as a flow of information from indistinguishable
sources. Therefore, it is all about creating synergies in MC.
Traditional communications integrated communications.
Traditional communications are based on mass media delivering generalised
transaction-oriented messages.
Integrated communications are personalised, customer-oriented, relationship-based,
and interactive.
Figure 1 - IMC pyramid; stages in IMC development
IMC has 2 key principles:
1) Consistency: Marketing mix instruments have to be combined in such a way that the
company’s offering is consistently marketed. Thus, all marketing instruments have to
work in the same direction, and not conflict with each other.
2) Synergy: Marketing mix instruments have to be designed in such a way that the
efforts of the tools are mutually reinforcing.
, Some benefits of creating synergy & consistency in MC:
In-store communications that are consistent with advertising are more effective.
A promotional campaign that is supported by advertising is more successful.
PR, sponsorship, and ads can have synergetic effects on company and brand image.
Websites are visited more when announced in or supported by offline campaigns.
Social media campaigns are more effective when accompanied by offline advertising
or brand activation campaigns.
Figure 2 - The marketing mix & IMC
Figure 2 gives an overview of various elements of the marketing mix, and the potentially
integrating role of marketing communications.
a) Corporate advertising
b) Sales force and channel communications, trade shows, packaging, direct marketing
c) Distribution, logistics, pricing
d) Investor relations, public affairs, crisis communication, charitable contributions
e) Product publicity, brochures, sponsorships
f) Traditional mass media advertising
1.4 Integrating marketing communications across cultures
Because more companies are operating internationally, international MC have grown
immensely. International MC management ≠ domestic MC management because it has to
deal with different demographic, economic, geographic, technological, political, legal and
cultural conditions. But also: differences in media availability and media popularity.
Cultural differences are among the most important factors that impact international MC.
Marketeers & MC executives often fall victim to the self-reference criterion = the
unconscious tendency to refer everything to our own cultural value. They often expect
foreigners to have the same values, interests etc. Religion, sense of humour, gender roles,
(non-)verbal language, values and attitudes are all components of culture.
International MC’ main challenge = the translation from message strategy ‘what to say’ into
a creative strategy ‘how to say it’. Therefore, you cannot use a singular strategy in all
different countries. A company must consider: “To what extend to we localize (adapt) or
globalize (standardize) our MC across different cultures?”
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