Marketing Communication
Summary
Chapter 1
Introduction
The integration of the various instruments of the marketing mix is one of the major principles of
sound marketing strategy. Obviously, this integration principle also applies to the various instruments
of the communications mix.
Marketing and the instruments of the marketing mix
Marketing is 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 market 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 Ps or the 4 Cs of the marketing mix.
Table 1.1 Instruments of the marketing mix
Product Price Place Promotion
(customer need) (cost to the customer) (convenience) (communication
Benefits List price Channels Advertising
Features Discounts Logistics Public relations
Options Credit terms Inventory Sponsorship
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Quality Payment periods Transport Brand activation
Design Incentives Assortments Direct marketing
Branding Locations Point-of-purchase
Packaging Exhibitions and
trade fairs
Services Personal selling
Warranties Online
communication
The product tool consists of three layers; the core product is the unique benefit that is meaning
marketed. The core product has to be translated into a tangible product. Finally, the augmented
product gives the tangible product more value and more customer appeal.
Price is the only marketing instrument that does not cost anything, but provides the
resources to spend on production and marketing activities. The list price is the ‘official’ price of a
product. Dicounts and incentives of all kinds can be used to make the product more attractive.
Promotion or marketing communications (MC) are the fourth and most visible instruments of
the marketing mix. They involve all instruments by means of which the company communicates with
its targt groups and stakeholders to promote its products or the company as a whole.
The communications mix
Marketing communication is a process through whichc organisations and audiences engage with one
another. Marketing communication can inform and persuade audiences, they can differentiate the
offeringfrom one company or brand from those of others, and they can reinforce the relationship
between an organisation and its audiences.
Advertising is non-personal mass communications using mass media, the content of which is
determined and paid for by a clearly identified sender (the company).
, Brand activation is 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 brands through interaction with target audiences
as it helps increase frequency, consumption and penetration of the brand.
Sales promotions, as a part of brand activation, are sales-stimulating campaigns.
Point-of-purchase communications are communications at the point of purchase or point of
sales (i.e. the shop). It includes several communications tools.
Online communications offer new ways to communicate interactively with customers and
stakeholders.
Direct marketing communications are a personal and direct way to communicate with
customers and potential clients or prospects.
Sponsorship implies that the sponsor provides funds, goods, services and/or know-how. The
sponsored organisation will help the sponsor with communications objectives such as building brand
awareness or reinforcing brand or corporate image.
Public relations consist of all the communications a company instigates with its audiences or
stakeholders. Stakeholders are groups of individuals or organisations with whom the company wants
to create goodwill.
Exhibitions and trade fairs are, particularly in business-to-business and industrial markets, of
great importance for contracting prospects, users and purchasers.
Marketing communications try to influence or persuade the (potential) consumer by
conveying 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.
In image or theme communications the advertiser tries to tell the target group something 2
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. Theme communications are also known as above-the-line communications, as
opposed to below-the-line or action communications. Above-the-line communications are
synonymous with mass media advertising.
Action communications seek to influence the buying behaviour of target groups and to
persuade the consumer to purchase the product.
Table 1.2 Personal versus mass marketing communications
Personal communications Mass communications
Reach of big audience
Speed Slow Fast
Costs/reached person High Low
Influence on individual
Attention value High Low
Selective perception Relatively lower High
Comprehension High Moderate-low
Feedback
Direction Two-way One-way
Speed of feedback High Low
Measuring effectiveness Accurate Difficult
Integration of marketing communications
Integrated marketing communications (IMC) is an old idea that emerged in the eighties and the
nineties of the previous century, but is still (and increasingly) relevant today. Don Schultz:
,IMC is the porecess 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 receptive.
The core of this definition is the idea that IMC starts form the customer point of view and works
backwards to develop effective communication.
Since IMC have been defined in a number of ways, stressing various aspects, benefits and
organisational consequences of IMC. Duncan:
A process for managing customer relationships that drive brand value. It is a cross-functional process
for creating and nourishing profitable relationships with customers and other stakeholders by
strategically controlling or influencing all messages sent to these groups and encouraging data-
driven, purposeful dialogue with them.
This definition again emphasises the use of multiple touchpoints and communication methods to
support this dialogue. IMC is data-driven, and thus based on detailed customer information.
IMC is not just a way of communicating, it is or should become a strategic business process.
IMC permeates all levels of a company, and is the driving force behind the focus of accompany: not
just promoting product, but taking a customer-centred view and operationalising it for profitable
brand building. The essential characteristic of IMC is that marketing communications are built on
deep customer insights and profitable customer relationships. The focus of a company should be to
learn to know target markets thoroughly, and build marketing communications programmes that are
profitable. ROMI (return on marketing communications) thus becomes of crucial importance. Only
then is IMC strategically and financially integrated.
Focus on the bottom of the pyramid. From that perspective and putting it very generally,
IMC: is a new way of looking at the whole, where once we saw only parts such as advertising, public
relations, ales promotion, purchasing, employee communication, and so forth, to look at it the way 3
the consumer sees it – as a flow of information form indistinguishable sources.
It is the integration of specialised communications functions that previously operated with
varying degrees of autonomy. Ikt is seamless, through-the-line communications. The American
Association of Advertising Agencies uses the following definition of IMC: a concept of marketing
communication planning that recognises the added value of a comprehensive plan that evaluates the
strategic roles of a variety of communication disciplines and maximum communication impact.
The various definitions incorporate the same core idea: communications instruments that
traditionally have been used independently of each other are combined in such a way that a
synergetic effects is reached, and the resulting communications effort becomes ‘seamless’ or
homogeneous. IMC have an added value when compared with traditional marketing
communications.
Two principles are important when designing and implementing an integeated marketing
communications mix, namely consistency and synergy. Marketing instruments have to be combined
in such a way that the company’s offering is consistently marketed. All marketing instruments have
to work in the same direction. Successful marketing communications depend on an well-integrated,
synergetic and interactive marketing mix.
The rationale behind this new way of looking at marketing communications is the customer’s
point of view.
IMC do not happen automatically. All the elements of the communications mix have to be
carefullyu planned in such a way that they form a consistent and coherent integrated
communications plan. Successful IMC rest on the existence of one communications manager who has
the authotiy to supervise and integrate all the specialised communications functions of the
organisation. Often this will imply a radical change in the structure of the organisation, and that may
be the most important reason why IMC have not been implemented in most companies.
Table 1.3 Classic and integrated communications
, Classic communications Integrated communications
Aimed at acquisition Aimed at retention, relationship management
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
Classic communications Integrated communications
Transaction-orientated Relationship-orientated
Attitude change Satisfaction
Modern: linear, massive Postmodern: cyclical, fragmented
Classical communication tools Digital technology
Local markets Globalisation
Some major differences between ‘classic’ communications and integrated communications.
The focus in on the changing nature of communications and the changing attitude of the consumer.
Integrating marketing communications across cultures
International marketing communications management differs from domestic communications
management in that onehas to operate in a different environment with different demographic,
economic, geographic, technological, political and legal conditions. Different cultural components can
have a moajor impact on international communications campaigns. Different regulations regarding 4
communications instruments are also important. Due to differences in the international marketing
environment, a company has to consider the major question: to what extent should it localise (adapt)
or globalise (standardise or integrate) its marketing communications across different cultures.
Cultural differences are among the most important factors that impact international
marketing communications. In order to succeed, marketing communications managers have to
understand these cultural differences. The self-reference criterion refers to our unconscious
tendency to refer everything to our own cultural values. In order to be able to understand other
cultures, the marketer has to try to avoid the self-reference mistake, and not take for granted
everything he or she is used to.
Once a company decides to go international, one of the most important strategic decisions to
be made is to what extent a global or cross-culturally integrated marketing strategy in the foreign
market(s) must be followd. A standardised campaign can be defined as a campaign that is run in
different countries, using the same concept, setting, theme etc. a local approach (localisation or
adaptation) implies that elements of the communications strategy are dapted to local circumstances.
The majority of studies seem to support the effectiveness of advertising localisation or
adaption. The differences between nations’ and consumers’ tastes around the world do not
guarantee that the same ad can be similarly effecrtive in all the countries. Therefore, often the
international marketer will have to adapt or localise his or her marketing ix to a different foreign
environment.
Often, the best way to apporacht international markets is not to adhere to one of the
extreme strategies of globalisation or localisation, but to opt for a ‘global commitment to a local
vision’, or in other words to ‘think global, but act local’ (glocalisation). Glocalised advertising
campaigns often combine global elements, such as a blobal brand name and positioning, with local
elements, such as wording or a local celebrity endorser.
