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Marketing Communication Strategy

Course Instructor - Anurag Hans


anuraghans.iilm@gmail.com

Structure
Figure 1.2: The Books Structure
A. INTRODUCTION
1. Overview 2. Marketing Strategy - Analysis & Perspectives

C. WHERE DO YOU WANT TO BE? B. WHERE ARE WE NOW?


3. Environmental Analysis: Market Information and Intelligence 4. Strategic Marketing Decisions & Choices 5. Segmentation, Targeting & Positioning Strategies 6. Relationship Strategies

E. DID WE GET THERE?


13. Strategy Implementation, Control & Financial/Quantitative Analyses

D. HOW WILL WE GET THERE?


7. Product Innovation & Development 8. Branding Strategies 9. Service Marketing 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing

F. CONCLUSION
14. Social Marketing & CSR

Introduction

MARCOMS are central to Porters generic costdifferentiation focus strategies framework and refer to four central types of media:

Advertising Direct marketing PR Sales promotions

There are two layers to explore in using these four media in MARCOMS strategy relating to:

What the client wants to say How you say it

MARCOMS and Cost


Short-run a client can spend money on MARCOMS to help justify a price increase or increase volume, but this will only add to costs Medium to long-term MARCOMS can support price through brand preference and provide some competitive protection for a brand Furthermore, increased volume can be encouraged by pointing out new uses for the brand or by targeting new markets Successful MARCOMS can lead to higher sales and in turn economies of scale MARCOMS can also directly reduce costs through replacing (or increasing the efficiency) of an organisations routes to markets and in reducing market research

Integrated Marketing Communications IMC


A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines, e.g., general advertising, direct response, sales promotion and public relations-and combines these disciplines to provide clarity, consistency and maximum communications impact."

The American Association of Advertising Agencies

MARCOMS Strategic Process


AUDIT

PEST Competitors
SWOT

STRATEGY

Strategic Intent/Objectives

Segment/Target Position Proposition Creative Execution Pre-Test


OPERATIONS

Media Classes
Media Execution

Post-Test Contingency International

Brand Wheel

Features Benefits Values Personality

Preference, but not loyalty

Relationship & loyalty

Key Reward

Core of the claim

Example of Brand Wheel Focus

The Task
Isolate, in a simple statement what the advertising is supposed to deliver:
Increase sales Generate leads Increase/maintain share Stop decline Justify price Announce/Launch Corporate reputation

Expand the Problem to a Higher Level

Product Definition:

Make the central benefit salient (again?) Solve a problem or better fulfill a desire

Performance Superiority:

Emotional:

Help brand matter to the consumer


Make the brand part of consumers world Alter the consumers definition of category

Cultural Identification:

Paradigm Shift:

Types of MARCOMS Objectives

Expose message to ... Create 40% awareness amongst... Create attitude/opinion that... Increase preference amongst... Encourage trial amongst... Re-enforce loyalty amongst..

Exposure

The desired level of frequency (OTS = Opportunity to See) and coverage to achieve the advertising objectives Most agencies seek an average of 2-3 OTSs amongst the target market in order to give advertising a chance to work

Example: 4 Week Campaign


Objective
cover 60% of the mkt 4 OTSs

Post-Evaluation
52% Coverage 4 OTSs

Awareness
Spontaneous:
An open-ended question, tell me of all the major soap brands that you have heard of... Any more? Is that all?

Prompted
Which one or ones of the following soap brands have you heard of?

Lux Lifebuoy Pears Dove Dettol

Final Evaluation
Spontaneous pre-campaign 25% objectives 31% post-campaign 32% Prompted 86% 88% 88%

[In this case the campaign would be said to be a success]

MARCOMS Overview
MEDIUM
ADVERTISING DIRECT MARKETING PR

DEFINITION
A paid for communication by an identified sponsor with the aim of informing and influencing one or more people. The recording, analysis and tracking of customers direct responses in order to develop loyalty. The formulation, execution and sustained effort to establish and maintain goodwill and mutual understanding and reciprocal goodwill between an organisation and its stakeholders. An incentive for the customer, sales force or distributor to make an immediate purchase.

HORIZON
Mainly long-term Short and long-term

FORM
TV, press, posters, radio, web, cinema, digital, SMS. Direct mail, DRTV & radio, telemarketing, press, inserts, leaflets, web, digital, SMS. Community relations/CSR, corporate advertising, crisis management, events, internal communications, investor relations, media relations, public affairs, lobbying, sponsorship, web, digital. Consumer: Coupons, contests, trial, mail-in offers/refunds, group promotions, self-liquidations, instore promotions, point-of-sale, web, digital, SMS. Trade: Dealer merchandise; contests advertising, allowance, trade allowance/ staff incentive, web.

SCOPE
Awareness, attitudes Mainly retention but also acquisition Credibility, visibility and reputation

Short and long-term

SALES PROMOTIONS

Mainly short-term

Consumer: Trial, re-trial, extended trial, build database Trade: Gain a listing, increase distribution, increase inventory, improve shelving space/position

Advertising Can Shape Corporate Images

Sales As Advertising Objectives

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Scheduling
1. 2. 3. 4. 5. 6. Reach Creative Scope Media History Location Distribution Channels Budget

Budgeting
1. JUDGEMENTAL METHODS Arbitrary Affordable 2. OBJECTIVE and TASK 3. MEASUREMENT ROI Incremental Quantitative Models 4. PERCENTAGE OF SALES % Last Years Sales % Anticipated Sales Unit Sales 5. SHARE OF VOICE Competitive Absolute Competitive Relative

Ad Spending and Share of Voice

High

Competitors Share of Voice

Decreasefind a Defensible Niche

Increase to Defend

Low

Attack With Large SOV Premium Low

Maintain Modest Spending Premium High

Your Share of Market

The Sales Promotion Trap

e-Marketing Strategy

Course Instructor - Anurag Hans


anuraghans.iilm@gmail.com

Introduction

In the general excitement over the Internet, many observers have argued that the old rules about marketing strategy have changed Organisations that treat the Internet as an evolutionary force tend to outperform organisations that see it as revolutionary E-markets are smart Most customers are concerned by convenience rather than price E-marketing is thus more about differentiation than cost

Navigation

Navigation is a term linked to E-marketing: the process of steering between the mass and variety of information in cyberspace However, navigation also occurs in physical commerce. For example, no one reviews all the possible options in buying a shirt or pair of shoes Instead consumers rely on suppliers and retailers to help them navigate Over the Internet it is possible to search extensively at negligible cost. Navigation and selection occur independently of physical warehousing and distribution and bricks and mortar companies no longer have any special advantages Navigation is the key to profit potential

Navigation Dimensions
Reach

How many customers a business can access and how many products it can offer

Is about whose interest the business represents

Affiliation

Is the depth and detail of information that the business gives the customer and collects about the customer

Richness

Relates to the breadth and depth of the products and services offered

Range

(Wells & Gobeli, 2003)

Critical to decide on what dimension do you want to leverage e-marketing

Loyalty

Acquiring customers on the Web is extremely expensive, so unless companies can lock customers in, they will be faced with the prospect of catering solely to price-sensitive British Airport Authority has launched two online services designed to produce greater loyalty among its regular customers

One service is a regular newsletter called Discovery Airside, whose subscribers receive information on the latest travel news in-terminal store openings, product introductions and shopping offers Supported by an automated acknowledgement campaign for customers booking travel services online

Customization

Identify
Differentiate Interact Customize

Identify

Being able to locate and contact a number of customers directly, or at least a large chunk of the most valuable ones and understand their behaviour Habits and preferences as well as the addresses, phone numbers

Differentiate

Recognises different levels of value and needs Invaluable for deciding on the best Emarketing strategy in any given situation People will do business with sites that make their lives easier and are prepared to pay a premium People often prepared to trade off price against

Interact

Hiring an outside service for scanning or data entry Drip-irrigation (asking only one or two questions each transaction) Periodic review of the integrity of the list

Customisation

Choiceboards are on-line systems that interact with customers so that they can design their own goods and services from a menu of features Instead of having to haggle over the price of fixed product lines, the Internet changes commerce and enables consumers to describe exactly what they want Furthermore, suppliers are able to deliver bespoke goods and services without compromise or delay

Communities

Communities enable consumers to communicate with each other The aim is to build differentiation through relationships Communities like Facebook, Orkut and Twitter have started acting as virtual meeting points of e-savvy consumers Exchanges provide brands with free content and consumers appreciate the ability of meeting likeminded people Content and exchanges act like magnets and draw people back frequently and regularly

Conclusion

E-marketing strategy is rooted in the classic elements of the Five Forces and sustainable competitive advantage Any e-marketing strategies should be based on businesses run like bricks and mortar companies using classic metrics like gross margin and size of order However, to achieve e-marketing success it may often be necessary to mentally break down the current business model into its components, and understand which of the current components can be managed better using e-marketing strategies

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