Market Communications

1. Market Communications Arild Aspelund IØT, NTNU

2. Outline • The role of market communications • Marketing communications mix • Advertising • Sales Promotion • Events and Experiences • Public Relations • Personal Selling • Direct Marketing • Management of different marketing communication activities

3. The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. Market Communications

4. Raising Attention and Communication Values

5. The Communication Process

6. Encoding and Decoding • Encoding • Carefully wrapping your message and communicating your value proposal • Decoding • Selective attention • A cognitive screening process to save your brain from information overload • Selective distortion • Tendency to interpret information to fit with your preconceptions • Selective retention • Tendency to remember the good about the things you like, and forget the good about those you don’t • Subliminal perception • Messages to you subconscious

7. Encoding and Decoding • Encoding and decoding can be troublesome • Sometimes the message is not interpreted the way it was meant • Sometimes the message is complicated • The trick is to make a complicated message available with simple means

8. The Role of Market Communications

9. Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Communications - Advertising

10. Campaign Objectives Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising

11. Communications - Advertising • Print and broadcast ads, motion pictures, brochures and booklets, posters, POP displays, logos, mobile content, etc. • Special characteristics • Pervasiveness • Amplified expressiveness • Impersonality

12. Advertising Campaigns

13. Evaluation of Ads • Is the message clear at a glance? • Is the benefit in the headline? • Does the illustration support the headline? • Does the first line of the copy support or explain the headline and illustration? • Is the ad easy to read and follow? • Is the product easily identified? • Is the brand or sponsor clearly identified?

14. Media Selection • Reach • Frequency • Impact • Exposure • Target audience and media habits • Product characteristics • Message characteristics • Costs

15. Advertising Campaigns • There is a trend in the market communication industry to select multiple media channels and also multiple platforms • This gives the opportunity to differentiate message to different segments with different media preferences • Example: Grandiosa’s campaign “Spelt”

16. Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Sales Promotion

17. Sales Promotion • Advertising offers reasons to buy, while sales promotions offers incentives to buy • Contests, games, trade shows, exhibits, coupons, entertainment, etc • Examples of contests: • Special characteristics • Communication • Incentive • Invitation

18. Sales Promotion • DN – 3 weeks free delivery by renewal of subscription • 71 grader nord • Finally, check out gjerrigknark.com

19. Events and Experiences • Sports, entertainment, festivals, arts, company museums, street activities, etc. • Special characteristics • Relevant • Involving • Implicit • Totally 3.021.000.000 NOK spent on sponsoring in 2005 • 59 % goes to sports • Source: SynovateMMI

20. Audience closely matches target market Event generates media attention Event is unique with few sponsors Event lends itself to ancillary activities Event enhances brand image of sponsor Selecting Events

21. Public Relations • Public Relations are market communications that the receiver does not perceive the sender to have paid for • Press kits, speeches, seminars, annual reports, charitable donations, publications, community relations, lobbying, etc • Special characteristics • High credibility • Ability to catch buyers off guard • Dramatization • Represents an exciting tool for resource-constrained new ventures • Industrial Magazine “Moderne Produksjon” • Aker Kværner’s campaign “Nøtterknekker”

22. Personal Selling and Direct Marketing • Personal selling • Sales presentations, sales meetings, incentive programs, samples, fairs and trade shows • Special characteristics • Personal interaction • Cultivation • Response • Direct marketing • Catalogs, mailing-lists, telemarketing, TV shopping, fax mail, E-mail, etc • Special characteristics • Customized • Up-to-date • Interactive

23. Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC Targeting Communications

24. Targeting • What we have been discussion in the last classes… • Product strategy • Pricing • Market channels and distribution • Market communication … constitutes the primary variables in your targeting strategy • It deals with adopting your market offering to provide maximum value for your customers as well as raising attention and communicating with your targeted customers

25. Summary and Continuation • Summary • Communications are a major part of your targeting strategy • Continuation • Exam