West, Ford & Ibrahim: Strategic Marketing

Chapter 11
Marketing Communication Strategies

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

Objectives
Assess where sit marketing communications within overall marketing strategy Examine the key elements in the MARCOMS process Provide a strategic view of MARCOMS with a focus on the creative brief Assess the key issues in media choice and use Review the operational issues in implementing a MARCOMS strategy

Agenda
Introduction IMC AUDIT Establishing the Strategy Creative Execution Media Strategy How Much to Spend? Operations

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

MARCOMS and Differentiation

Central to spending on MARCOMS Despite the conventional wisdom that lots of products and services are at parity, there are probably more differences in offerings today than ever before If you take any consumer or business market, the amount of choice is substantial and often impossible for buyers to cognitively process MARCOMS provides organisations with the possibility of establishing their position with the market and asserting their distinctiveness At heart all organisations, be they for or not-for profit, seek to establish a point of difference

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 relationsand combines these disciplines to provide clarity, consistency and maximum communications impact.
The American Association of Advertising Agencies

GM case let and Mark Twain comments on page 33536. Mini case study 11.1 page 337

MARCOMS Strategic Process

AUDIT
PESTLE PESTLE Competitors Competitors
SWOT SWOT

STRATEGY

Strategic Intent/Objectives Strategic Intent/Objectives

Segment/Target Segment/Target Position Position Proposition Creative Execution Creative Execution Pre-Test Pre-Test Media Classes Media Classes Media Execution

OPERATIONS

Post-Test Post-Test Contingency International International

Brand Wheel
Features Benefits Values
Personality

Preference, but not loyalty Relationship & loyalty Core of the claim

Key Reward

Example of Brand Wheel Focus

The Task
Isolate, in a simple statement why the advertising will have worked:
Increase sales Generate leads Increase/maintain share Stop decline Justify price Announce/Launch Corporate reputation

Establishing the Strategy

Expand the Problem to a Higher Level
4) Product Definition (For new product):

Make the central benefit salient (again?)

Solve a problem or better fulfill a desire

1) Performance Superiority (USP): 2) Emotional Selling Proposition (ESP):

Help brand matter to the consumer

Make the brand part of consumers world

3) Cultural Identification: Paradigm Shift:

Alter the consumers definition of category

Types of MARCOMS Objectives

Exposure 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 supermarkets that you have heard of... Any more? Is that all?

Prompted
Which one or ones of the following supermarket chains have you heard of?

Tesco Sainsburys Waitrose Asda Jeffreys

Final Evaluation Spontaneous Prompted pre-campaign 25% 86% objectives 31% 88% post-campaign 32% 88%
[In this case the campaign would be said to be a success]

Describe Who Were Talking To

A person, not a target Beyond reports talk to customers Paint a personal picture Whats really important to them?

Sources of a Proposition
product characteristics user characteristics ways of using the product how product is made surprising points about the product price characteristics image characteristics satisfying psychological/physiological needs product heritage disadvantages of non-use direct comparisons with rivals product comparisons newsworthiness generic benefits

What Proposition Will Do This? Specific core benefit brand delivers Key emotion, reason or blend Keep it singular

A good proposition
Gives creatives an angle or way in Forces a strategic choice Is single-minded not all encompassing Is based on a truth (Rational or Emotional) Is original, or expressed in an original way Is liberating not limiting Isnt an end-line

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

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

Budgeting
1. JUDGEMENTAL METHODS Arbitrary (What is felt as necessary) 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

Conclusion
MARCOMS primarily consist of four media: advertising, direct marketing, PR and sales promotions, which can be used in marketing strategy either singularly or holistically with IMC (Integrated Marketing Communications) While MARCOMS can enable organisations to reduce costs in the medium to long-term, their main strategic use is in helping to differentiate and position