Managing Marketing

Communications

What is Marketing?

Creating Value
Capturing Value
Communicating Value
Delivering Value
Sustaining Value

The art & science of choosing, acquiring,

retaining, growing customers through
creating, delivering & communicating
superior customer value

How do I decide how much to spend

on MarComm?

How do I decide how much to spend

on MarComm?

How do I decide how much to spend

on MarComm?

How do I decide how much to spend

on MarComm?

How do I decide how much to spend

on MarComm?

Developing Advertising Programs

Psychological
Economic
Always start by identifying the target market and buyer motives

Buyer Motives

Social

Buyer Motives Denim Jeans

Exclusivity,
status

Craftsmanship, a
lifestyle
Blue denim
Youth,
ruggedness,
convenience,
durability

Fashion, fit, finish

Armani
Rs 10000
Premium - Levis
Rs 2500

Entry level Discount store

or PL Rs 500

Mid level - FM
Rs 1500

The 5 Ms of Advertising

Advertising Objectives
Persuade

Inform

Reinforce

Remind

Setting the Objectives

Communication Task

To increase among 30 million

homemakers who own automatic

Achievement Level

washers the number who identify

brand X as a low-water consuming

Audience

detergent, and who are persuaded

that it gets clothes cleaner, from 10

Period of Time

percent to 40 percent in one year.

Deciding on the Advertising Budget

Decision Factors:
Stage in the Product Life Cycle
Market share and consumer base
Competition and clutter

Advertising frequency
Product substitutability

Advertising
Budget

Awareness

Advertising Elasticity

Developing the Advertising Campaign

strategyhow the ad expresses the brand claims

Creative Strategy

Message Strategy
or positioning of an adwhat the ad
attempts to convey about the brand

Media Decisions and Measurement

Reach, Frequency,
Impact
Media Type

Media Vehicles

Media Timing

Geographical Media
Allocation

Reach, Frequency, and Impact

Reach

Frequency

The number of different persons or households exposed to

a particular media schedule at least once during a specified time period

Impact

The qualitative value of an exposure through a given medium

(thus a food ad will have a higher impact in Good Housekeeping than in Economist magazin

Relationship Between Trial,

Awareness, and the Exposure
Function

Profile of Major Media Types

Medium

Advantages

Disadvantages

Newspapers

Flexibility; timeliness;
local; believability

Short life; small passalong; reproduction

Television

Multiple senses;
appealing; high
attention; high reach

High absolute cost;

clutter; fleeting exposure;
less audience selectivity

Direct Mail

Audience selectivity;
flexibility; personalized

Relatively high cost;

junk mail image

Radio

Mass use; high

selectivity; low cost

Single sense; passive;

fleeting exposure

Profile of Major Media Types

Medium

Advantages

Disadvantages

Magazines

High selectivity; high

quality; credibility and
prestige; long life

Long lead time; waste in

circulation

Outdoor

Flexibility; low cost;

high repeat exposure;
low competition

Low audience selectivity;

creative limitations

Yellow Pages

Excellent local coverage; High competition; long

high believability; wide lead time; creative
reach; low cost
limitations

Internet

High selectivity;
interactive possibilities;
low relative cost

Increasing clutter

Alternate Advertising Media

Public Spaces

Product Placement
Reaching people where they work, play, and, of course, shop.

Point of Purchase

Billboards

Selecting Specific Media Vehicles

Media Cost

Audience Size
(readers, viewers, listeners,
etc)

Composition
Of the target audience, buyer roles

Media Timing and Allocation

Macroscheduling
(seasons/business cycle)

Microscheduling
(short term)

Advertising Timing Patterns

Evaluating Advertising Effectiveness

Copy Testing
(pretest, post-test)

to determine whether an ad is communicating effectively

Brand awareness by ..%

Brand preference by .. %
Trials by ..%
Inquiries by %
Sales by %

Sales-effects

Measuring the Sales Impact

of Advertising
Share of expenditures

Share of voice

Share of mind and heart

Share of market

Sales promotion

Sales Promotion
Short term

Stimulate Sales

Objectives
Product trial

Increase
repurchase

Reward

Brand switching

Major Sales Promotion Decisions

Objectives

Consumer

Trade

Develop the Program

Implement and Evaluate

Sales Force

Major Consumer Promotion Tools

Samples
Coupons
Cash refunds
Prices off
Premiums
Prizes

Loyalty rewards
Free trials
Tie-in promotions
Cross-promotions
Point-of-purchase displays
Demonstrations

Major Trade Promotion Tools

Price off
Advertising allowances
Display allowances
Free goods

Events and Experiences

Sports - 68%

Festivals - 5%

Cause Marketing9%

The Arts - 5%

Entertainment - 10%

Creating Experiences
More engaging / informative

Increased word-of-mouth

Factory Tour
Connects a product or service with unique and
interesting experiences

The idea is not to sell something, but to

demonstrate how a brand can enrich a customers
life.

Corporate Museum

Public Relations & Publicity

Public Relations & Publicity

Public Relations
is about strategically managing
your brands reputation.
Telling your story
is an overall program
is long term
A PR firm will talk about story
telling and being remarkable
at spreading the word
Crisis management is also part
of PR

Publicity
is about getting ink (written
about or visibility)
is a tool
is short term
A publicity firm will brag
how much ink they got their
clients

Regis Mckenna was great at PR. He got Steve

Jobs and the Mac on the cover of more than
30 magazines on the year it was launched.
That was just publicity.
The real insight was the crafting of the story of
the Mac; and with that, the story of Steve
Jobs.

Which is actually better for your

businessPR or publicity?
You should be doing both.
Getting ink should be part of your overall PR
strategy.

Public Relations
Who is Public?

Any group that has an actual or potential interest in

or impact on a companys ability to achieve its
objectives
Promote

Monitors attitudes

Protect Image

Marketing Public Relations (MPR)

Publicity
Launch new products
Repositioning a mature product
Building interest in a product category
Influencing specific target groups
Manage brand crisis
Build corporate image