Marketing Chapter 17 Managing Marketing Communications Gilbert A. Churchill, Jr. J. Paul Peter Slide 17-1 Primary Tasks of Communication REMINDING INFORMING •During the introduction stage of the PLC •Explain the purpose & benefits.
Download ReportTranscript Marketing Chapter 17 Managing Marketing Communications Gilbert A. Churchill, Jr. J. Paul Peter Slide 17-1 Primary Tasks of Communication REMINDING INFORMING •During the introduction stage of the PLC •Explain the purpose & benefits.
Marketing Chapter 17 Managing Marketing Communications Gilbert A. Churchill, Jr. J. Paul Peter Slide 17-1 Primary Tasks of Communication REMINDING INFORMING •During the introduction stage of the PLC •Explain the purpose & benefits of the product Target Audience •During the growth stage of the PLC •Convenience the customer to buy company’s brand over the competition PERSUADING •During the maturity stage of the PLC •Used to trigger memory (brand specific) Slide 17-2 Table 17.1 Some Strategic Goals of Marketing Communications Strategic Goal Description Create awareness Inform markets about products, brands, stores or organizations. Build positive images Develop positive evaluations in people’s minds about products, brands, stores or organizations. Identify prospects Find out the names, addresses and possible needs of potential buyers. Build channel relationships Retain customers Increase cooperation among channel members. Create value for customers, satisfy their wants and needs, and earn their loyalty. Slide 17-3 Figure 17.1 The Communication Process Source Encodes Message Source Transmits Message via Medium Receiver Provides Feedback to Source Noise Receiver Decodes Message Slide 17-4 Figure 17.2 The AIDA Model Marketing Communications Attention Interest Desire Action Slide 17-5 The Communications Mix Advertising Personal Service Sales Promotion Publicity Slide 17-6 Comparing the Elements of the Communications Mix Advertising Personal Selling Sales Promotion Publicity Communications Mode One-Way Two-Way One-Way One-Way Marketer Control Over Message High Medium-High High Low Long Term, Ongoing Activity Yes Yes No No Considered an Unbiased Source No No No Yes Message can be Customized for each Customer No Yes No No Short Term Focus No No Yes No Cost per Contact Low High Varies Overall Cost High Low Varies No Direct Cost No Direct Cost Slide 17-7 When Elements of Communication Mix (Promotion) Are Most Useful Effectiveness Advertising Personal Selling Sales Promotion Public Relations Attention Interest Very effective Somewhat effective Not effective Desire Action Slide 17-8 Managing Communications Strategy Set Communications Objectives Select the Communications Mix Set Communications Budgeting Implementation and Control Slide 17-9 Factors that Affect the Communication Mix Nature of the Product • Industrial products are expensive, complex, customized • Consumers products depend upon costs and risks Stage in the Product Life Cycle • Early - advertising & publicity • Later - sales promotions Target Market Characteristics • Widely scattered markets • Highly informed buyers Type of Buying Decision • Routine - advertising • Complex - personal selling Available Funds • Lack of money - publicity, commission based personal selling • Plenty of money - advertising Push–and–Pull Strategies • Push - suppliers promote to intermediaries • Pull - suppliers promote to ultimate consumer $$$ Slide 17-10 Figure 17.3 Two Marketing Communications Approaches Push Strategy Producer Marketing Communications Resellers Marketing Communications End Users Pull Strategy Marketing Communications Producer Request Products Resellers Request Products End Users Slide 17-11a Table 17.3 Methods for Setting Communications Budgets Method Advantage Percentage of sales • Simple to use Fixed sum per unit • Marketer likely to benefit Disadvantage • Budgeting based on expected sales implies communications can’t improve sales performance from increasing the budget during times of rising sales Competition- • Takes into account based competitors’ activities • Amounts budgeted will be reasonable if competitors are budgeting effectively • Decreasing the communications budget during periods of falling sales could be disastrous in some cases • Can be difficult to get competitors’ budget information • Can lead to ever-increasing communications budgets • Assumes competitors have the same objectives Slide 17-11b Table 17.3 Methods for Setting Communications Budgets Method All you can afford Advantage • Takes into account limited resources • May stimulate creativity in making funds work hard Objective and task • Based on achieving communications objectives • Focusing on objectives uses funds most efficiently Disadvantage • Doesn’t consider marketing objectives • Borrowing may be worthwhile to fund some communications strategies • No basis for setting priorities among objectives • Treats all objectives as equally worthy of funding • Hard to estimate what will it cost to achieve a particular objective Slide 17-12 Evaluating the Effectiveness of Marketing Communications Sales Sales Changes Changes What Marketing Research Why Happened it Happened ? ? Slide 17-13 Regulation of Communication Self-Regulation - complaints • National Advertising Division (NAD) of BBB • National Advertising Review Board (NARB) Federal Regulation - deceptive & misrepresentation • Federal Trade Commission (FTC)