Marketing Communications – Chapter 1 Integrated communications
1.1 INTRODUCTION TO MARKETING CONCEPTS
What is marketing?
Marketing = the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create and execute value, and satisfy individual and
organizational objectives
=> Value is at the core of marketing
Instruments of the marketing mix
- Marketing mix = the 4 P’s
- These 4 tools represent the focus of MC
- Went from the 4 P’s => 4 C’s because we look from the customers’ view
- We focus on promotion (communication) in this course
4 categories of tools
What is marketing communications?
Marketing communications = the process through which organizations and audiences engage with
one another
- This used to be a one-way relationship, but now we have a feedback loop from customers to
the organization. But now there is also a feedback loop (cognitive, attitudinal and behavioral
responses).
- There is also a lot of “noise”: when communicating we have to take into account a certain
extent of noise. Maybe the consumer is motivated to process the message, but they are not
capable of doing so. They might be trying to listen to the radio, and there is a commercial,
and all of a sudden, they are driving through a tunnel, and they don’t hear the commercial.
Or on a website there might be too many banners, so the customer feels overwhelmed and
doesn’t remember any banner that they saw.
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Instruments of the communication mix (the toolbox)
1. Advertising:
− One-to-many (mass communication tool)
− Monologue (except online)
− No feedback from the customer
− (!!) With online advertising: more personalization and getting feedback from
the consumer is possible <-> offline: less possible
− Paid tool
− Cost per individual = quite low compared to other tools
− Often long term (!): the goal of advertising is not to persuade the consumer to buy
the product immediately, the goal is rather to get into customer’s mind and being
the best brand in their head
− Via intermediary effects
− Advertising works on the short term through intermediary effects: we need
additional tools e.g. direct promotion, getting a discount (brand activation
measure) on the sweater that the customer just saw on Instagram, might
convince him to go to the store but advertising alone doesn’t have the
function to get the customer to the store
− Online advertising
− Websites
− Advertising on websites
− E-mail
− Social media advertising
− Mobile advertising
2. Brand Activation: getting the customer to the store immediately, no plans on the long run,
the goal is NOT to change an image in the customers’ mind, we just want them to buy as
much as possible and as quick as possible
− Sales promotions
− Sales stimulation e.g. discount: buy one, get one free
− Incentive-based (rewarding the customer)
− Is sales promotion image destroying? Yes and no, it depends on the type of
promotion and the type of reward. => Some say that sales promotions
destroy the image of a company, because when we sell our product based
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on discounts then we are not selling the product but the price. Not every
category or product allows for sales promotions. If you want to do good MC,
then it is advised not to do many sales promotions because this will harm
the image of the company. What will happen is that customers will run to
the store when your product is on discount but when it is back to the normal
price, they will ignore you. As a good marketing communicator, you want
people to buy your product because of its inherent value, because of the
benefits the product or service provides. But with a discount you are not
giving the image that your product does that, you are telling them to buy the
product because it’s cheaper now. A lot of tech brands (e.g. Apple) or luxury
brands almost never put products on sale because that would be harmful to
their image. It does not align with their image, value and benefits that they
try to portray. Luxury brands sometimes offer a premium. For example, you
buy a luxury car in a car dealer store, they don’t tell you it’s a sales
promotion, but they offer you a sound system. It's a sales promotion,
because you get something for free. But they won’t tell you it’s for free, they
will say it’s premium, and you get it because you are such a good client, or
you spend a certain amount of money etc. Same for airlines, they work with
reward cards/saving cards/loyalty cards. It's also a type of sales promotion,
but they don’t discuss it like that.
− Depends on the type of promotion
− Depends on the type of reward
− Point-of-purchase communications: trying to reach your consumer at the place
where they are at that moment
− Hugely effective because you are reaching people at the right time, at the
right place
− E.g. Promotion of the newest Danone flavor on the shelves = shelf stopper
=> very effective; people are looking for a product, they have the
opportunity to see your promotion and it will lead to a purchase
− E.g. Red Bull fuel nozzles: Red Bull decided to promote their drink on the
fuel nozzles when you get gas, as a customer you are already standing there,
you can’t use your phone, you basically can’t do anything, so you have time
to look at the promotion on the fuel nozzles when getting gas. It also says,
“are you tired?” “Drink RB” where can you get one? In the gas station. It’s a
great match between what the customer is looking for and what is provided
in that place.
− Restroom advertising: for some target groups it works very well, very often
used in cinema’s
− Experience marketing:
− The art of creating an experience where the result is an emotional
connection to a person, brand, product or idea
− Field marketing, customer service, special events, product promotions, PR
stunts, ...
− Creating connection through a designed emotive experience
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− Examples:
− BBQ week with brands in supermarket
− Test drive with car
− Flagship stores like Nike or M&M’s => for fans of M&M this is a great
way to getting them return to your store and creating loyal
customers
3. Direct marketing: you can reach target customers on an individual basis, so it’s very
personalized and easy to measure
− Direct mailing/e-mail marketing
− Telemarketing
− Catalogue selling
− Increasingly online
=> Personal
=> Measurable
4. Public relations: the whole idea behind PR is not to sell the product but to create a goodwill
and keep a positive reputation among the stakeholders
− Mainly corporate communications tool
− Building and maintaining goodwill and reputation
− Generate positive publicity
− Many stakeholders (government, shareholders, etc. BUT NOT CUSTOMERS)
PR Advertising
All about the brand All about the product or service
Controlled by media Controlled by brand
Credible Less credible
Earned Paid/expensive
Written Visual
5. Sponsorship
− Cash or kind (time, employees)
− Return, especially sales
− Strong image carry over effects from the event or the person you are sponsoring to
your brand
− E.g. Fiat and Chupa Chups => 2 very different brands
− By sponsoring events or people outside the brand category that the brand is
in, they hope that the cool and fancy image of the sport will transfer/carry
over to the brand
− Other sponsors
− Match-up between sponsor and sponsored organization is crucial!!
− E.g. Coca Cola sponsored the UEFA CUP 2020 => great match; CC is all about
belonging, happy feelings, sense of community and that matched really well
with the people interested in games
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