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Topics 09-10 Promotion: 1. Marketing Communication Theory 2. Marketing Promotional Tools

PRINCIPLES OF MARKETING-A2. Topics 09-10 Promotion: 1. Marketing Communication Theory 2. Marketing Promotional Tools. Assoc. Prof. A. Popissakov 2009-2010. Topic Contents Communication Theory. 1. The Communication Process 2. The Promotional Mix 3. C ommunication Planning Model

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Topics 09-10 Promotion: 1. Marketing Communication Theory 2. Marketing Promotional Tools

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  1. PRINCIPLES OF MARKETING-A2 Topics 09-10Promotion: 1. Marketing Communication Theory2. Marketing Promotional Tools Assoc. Prof. A. Popissakov 2009-2010

  2. Topic ContentsCommunication Theory 1. The Communication Process 2. The Promotional Mix 3. Communication Planning Model • Communication objectives • Communication strategies 4. Models of Marketing Involvement

  3. Some Communication problems • in society = government do things right, people do not believe. • in business = poor communication costs money, time and opportunities. • in family = the gap between generations, • in school = clever teacher vs. lazy and stupidstudents • in university = ignorance vs. proper academic scholarship (The “P” word), • in love = “I love you more than you do”.etc.

  4. Six Questions in Communication Process (“6Qs”) • Who? What? Why? Where? When? How? • Whatever communication task you are undertaking, asking these six simple questions before you start will give your communication a better chance of success and make the task easier E.g. What is your name?

  5. 2. The Communication Process Sender Who? Ideation What? Encoding How? Media channels Where/When N o i s e Feedback Receiver Who? Action Do?Not do? Analyzing What? Decoding How?

  6. “6 Qs” - Who? • Who? - The Sender and Receiver • Sender is me. • Who exactly is the receiver, my audience? • What sort of person is he? Personality? Education? Age? Status? Social status? Nationality? .... • How is he likely to react to my message? • What does he know already about the subject of my message? A lot? Not much? Nothing? Less/more than I do?, etc.

  7. “6 Qs” - What? • What? = subject = Ideation • What exactly do I want to say? • What do I need to say? • What does he need to know? • What information can I omit? • What information must I include?

  8. “6 Qs” - How? Encoding/Decoding • How? = Encoding/Decoding • The process of organizing the ideas into series of symbols, words, gestures, specially designed to communicate with particular receiver. • How am I going to communicate my message? With words? Or pictures? Or both? Which words? Which pictures? • How the receiver will decoded what I have encoded in my massage?

  9. “6 CQs” - How? Encoding/Decoding • E.g. • Student (encoding massage) to Teacher: • I am late with my report, but I shell submit it on Friday. • Teacher(decoding massage from Student) • This guy is lazy and arrogant (not responsible, violation of due date, just informing, no appology).

  10. “6 CQs” - How? Encoding/Decoding • Student (encoding): I am ready with my report, but my dog ate it just before my leaving for school. Will you give me a chance to rewrite it and submit on Friday. • Teacher(decoding): This story may be true or not, but this guy seems courteous, let give him a chance.

  11. “6Qs” - Where? When? Where? When? = (place and context) • Where will he be when he receives my message? • At what point in the total matter does my message come? • Am I replying to something he has raised? Or will my message represent the first he has heard about this topic/problem/issue? • Is the subject of my message the cause of controversy between us? Is the atmosphere strained or cordial?

  12. “6 CQs” - Feedback • Feedback occurs when the receiver send the message back to the sender. • It restarts the communication process. • The receiver becomes the sender by beginning with IDEATION, ENCODING and so on. • If sending the original message results in two-way communication this process can go though many cycles.

  13. Marketing Communication Gap Communication process - An equation can be developed, What do we want our customers to know - What they already know ------------------------------------------------------- =Gap (to be filled by communication) What if the “Gap” > 0 or < 0?

  14. The Promotional “P” Promotion is WHAT and HOW marketers communicate with their target markets. • I make bicycles • “Nike” is the brand name • Price from $100-$500 • Unisex product • Quality is higher than price • Find them in Metro, Billa … • 10% Christmas sale • etc. …….. Promotional Communication messages

  15. The promotional mix The direct way in which organisations attempt to communicate with various target audiences. It consists of five main elements

  16. Changing promotional mix for consumer or B2B markets PR PR PR Direct marketing Direct marketing Direct marketing Sales promotion Sales promotion Advertising Sales promotion Personal selling Advertising Advertising Personal selling Personal selling Capital equipments Raw materials Services Consumables B2B goods Consumer goods Home improvements Cars White goods Brown goods Cloths FMCG

  17. Communications Planning Model (CPM) Initial step (3 in 1)

  18. (CPM) Situation Analysis (1): The Target Market Knowledge of the target market is an essential prerequisite for communication strategy. • Who are our customers? • Are they • defindable? reachable? sizable?… • B2B or consumer market? E.g. B2B markets depend on personal selling, while for consumer marketsadvertising and promotionsdominate.

  19. (CPM) Situation Analysis (1): Push or pull strategy Flow of product Flow of infomation

  20. (CPM) Situation Analysis (2): The Product How the promotional mix is affected by the type of product and the product life cycle. Type of product • B2B and consumer goods It is simplistic to believe that personal selling is effective only for B2B products, while all consumer goods require advertising. Both types of product can benefit from any of the various elements of the promotional mix.

  21. (CPM) Situation Analysis (2): The PLC Product life cycle The product life cycle stages • Introduction • Growth • Mature • Decline Since marketing objectives change as a product matures, the communication objectives and messagesalso change.

  22. (CPM) Situation Analysis (3): The Environment Key environmental factors affect communication strategies • Social and cultural acceptance of product/services. • Customer's changing attitudes and lifestyle, (danger of stereotyping through mass communication efforts). • Political and regulatory environment • Competitors • etc. STEP Analysis

  23. Communications Planning Model (CPM) (continued) Situation analysis 1,2,3, help marketers to set the background influences of the CPM. Further Steps in the CPM • Define theObjectives • DiviseStrategies • Decide onBudgeting • Implementation and Evaluation of CPM

  24. CPM Step 3. Communication Strategies THREE logical and sequential steps in marketingcommunication A. Informing B. Persuading C. Reinforcing These objectives must guide the customer from the stage of awareness to the real buying and post-sales reassure.

  25. A. Informing Emitting relevant information about market product/services: • they do exist • what they do • what are their features • where can be obtained

  26. B. Persuading Creation of favourable attitude about market products/services: • favour one brand (product) over the other • favour one view point over the other • create a feeling thatthis product is what you need. • create a feeling that this product is your best choice.

  27. C. Reinforcing Building support/loyalty to a point of view of purchasing • Ensuring a good climate for future sales. • Transforming abuyer by chance user to a heavy user • Motivation of customers to be your advertising assistants (Word-of-mouth)

  28. Models of Marketing Involvement Generally all models are based on Knowledge, Attitude and Behaviour Knowledge Atitude Behaviour Information stage Persuasion stage

  29. Models of Marketing Involvement AIDA Model - Strong’s (1925) Knowledge Atitude Behaviour Desire Action Attention Interest Buy / not buy Get attention Provoke interest Arose desire

  30. Models of Marketing Involvement Awareness Six stage Lavidge & Steiner Model Knowledge Knowledge Linking Atitude Preference Conviction Behaviour Purchasing

  31. Models of Marketing Involvement Awareness DAGNAR Study of Russel Colley (a list of 50 possible advertising objectives) Knowledge Comprehension Atitude Conviction Behaviour Action Defining Advertising Goals for Measured Advertising Results

  32. CPM – Step 4 Budgeting (self actinity) Two main methods of budget setting: • Judgemental budget setting: • Arbitrary budgets, • Affordable method, • Percentage of past sales method, • Percentage of future sales. • Data-based budget setting: • Competitive parity, • Objective and task budgeting. Brassington and Pettit (2005) pp. 279-280

  33. CPM – Step 5Implementationof the Plan Planning helps marketers to: • establish priorities, • allocate responsibilities, • ensure a fully integrated, consistent approach that maximises the benefits gained from all elements of the communication mix.

  34. CPM – Step 6Evaluation of Plan The final check-list of whole planning model : • What return on investment did we achieve? • What increase in sales revenue and from where and why? • What part of the “Communication GAP” did we filled?

  35. The End

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