35665955 Marketing Communication Mix

8/6/2019 35665955 Marketing Communication Mix

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2MIT4210 Assignment ~ 02

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Assignment No 02Describe the role of marketing communication mix whilst highlighting the role and

characteristics of each of the primary tool of communication mix. Discuss the criteria thatshould be used for selecting right communication mix and investigate the changes happening

in media and communication landscape.


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Table of ContentsIntroduction: ........................................................................................................................................... 3

Marketing communication Mix: ............................................. ............................ ................................ ...... 3

Role of marketing communication Mix: ...................... ................................ ...................... ....................... 4

1. Advertising as Non personal communication tool: ............................. ...................... ......................... 5

ROLE & Characteristics of Advertising: ................................................................................................. 7

Demerits of advertising: ....................................................................................................................... 8

2: Sales promotions as Non Personal Communication tool: ........................... ....................... .................... 8

Roles and Characteristics and objectives of sales promotions ............................. ....................... ........... 9

Demerits of sales promotion .............................................................................................................. 10

Advertising versus sales promotions: ........................... ................................ ...................... ................ 10

3: Direct Marketing: ........................... ........................... ........................... ............................ .................. 11Characteristics of direct Marketing: ........................ ................................ ...................... ..................... 11

Demerits of Direct Marketing: ............................ ................................ ...................... .......................... 12

4: Personal selling: .............................. ................................ ...................... ................................ ............. 12

Roles and Characteristics of personal selling : ..................................................................................... 12

Demerits of personal selling : .............................................................................................................. 13

5: Personal Relations : ........................................................................................................................... 13

Characteristics of PR: ..................................................... .......................... ............................ .............. 14

Selecting the right communication mix: ........................... ................................ ....................... ............... 15

1. Nature of product:....................................... ................................ ...................... ..................... 16

2. What are the objectives/the hierarchy of effects and determining the consumers when theyshow purchase intention? ................................................... .......................... ............................ ..... 16

3. Push versus Pull promotion strategy: ......................... ................................ ...................... ....... 18

4. Buyer readiness stage: ........................... ................................ ....................... .......................... 19

5. Product life cycle: ............................ ............................ ....................... ................................ .... 20

Changes happening in media and communication landscape: ........................... ........................ ............. 22

Conclusions: .......................................................................................................................................... 24

List of References: ................................................................................................................................. 25


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I ntroduction:O ut of the thousands of brands on store shelves today, what is the chance that a consumer will see anyone particular item, much less buy it? In today s society, consumers are rushed for time. They do nothave any time to leisurely walk up and down every aisle, perusing all of the wares. A brand may be of high quality or fairly valued, but nonetheless it will fail to achieve sales and profit objectives if potentialcustomers are unaware of it or do not perceive it favourably. Effective advertising and other forms of marketing communications are absolutely crucial to creating brand awareness, establishing positivebrand identities and moving products from distributors, warehouses and off store shelves.regardless of the nature of the product s category or the type of the business, marketingcommunications are key to a company s overall marketing mission and represent a major determinantof its success; indeed, it has been claimed that marketing and marketing communications areinseparable. : [M]arketing ........is communication and communication is marketing. (Don.E., Schultz.,et.al, 1993).

Marketing communication Mix:The marketing mix is the set of controllable tacticle marketing tools that the firm blends to produce theresponse it wants in the target market (Melewar. T.C., & Saunders.J, 2000)

Marketing communications are the means by which firms attempt to inform, persuade, and remindconsumers directly or indirectly about the products and brands that they sell. A company s totalmarketing communication mix also called promotion mix (Kotler, 2005) consists of specific blending of advertising, personal selling, sales promotion, public relations, and direct marketing tools that are usedby company to pursue its advertising and marketing objectives.

The following figure No 01 shows the marketing communication activities which contribute to themarketing of any new or existing product: by creating awareness of the brand; linking the rightassociations to the product s image in the consumer s memory, facilitating stronger consumer-productconnection etc.


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Advertising Sales promotions Events/experience Public Relations Personal selling Direct marketingrint and broadcastds Contests, games Sports speeches sales presentations catalogs

ackaging-outerPremiums andgifts entertainment press- kits sales meetings mailings

Motion pictures Sampling festivals Seminarsface to facemeetings telemarketing

Brochures andooklets

Fair andtradeshows arts Annual reports incentive programs

electronicshopping

osters and leaflets Exhibitions factory toursCharitabledonations samples TV shopping

Directories DemonstrationsCompanymuseums Publications

fairs and tradeshows Fax mail

Reprinting of ads Coupons street activitiesCommunityrelations e-mail

Billboards Rebates Lobbying voice mail

Display signs Entertainment Identity mediaAudio-visualmaterials Tie-ins

companymagazine

ymbols and logosVideotapes facebook, twitter

acebook, twitter

Figure 01: Common Communication Platforms Adapted from: Lane.K & Kotler. P., .,(2006).12ed.Marketing management 12e, Pearson Prentice Hall: new Jersey

R ole of marketing communication Mix:The traditional role of marketing communications was largely concerned with providing the mechanismby which the features and benefits of the product or the service could be promoted as inexpensively aspossible by using the promotion mix as in personal selling, advertising, sales promotion and personalrelations, with the ultimate purpose of persuading customers to buy specific products. However, themarketing communication mix is becoming more important within the marketing mix, as they includethe need to communicate with a more diverse range of stakeholders and it builds higher levels of customer service through interactive or relationship marketing. (Doole. I & Lowe. R, 2003)Moreover,

y In a way marketing communications represent the voice of the brand and are a means bywhich it can establish a dialogue and build relationships with consumers.

y Marketing communications allow companies to link their brands to other people, places events,brands, experiences, feelings, and things.

y Marketing communications perform various functions for the consumers; Customers can betold or shown what a product is about, What kind of person use this product, and consumer canbe given reward for usage or trial.


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Following are the tools/mediums of the advertising:

Figure 03: Adapted from: Kotler. Philip, et. al (2005). P rinciples of Marketing , Pearson EducationLimited: England.

y Newspapers: Faster and more efficient circulation is possible. Many international newspaperse.g.; International herald Tribune, financial Times, Asahi Shim bun, Wall Street Asian, Jung, areprinted simultaneously in many countries.

y M agazines: Many journals and magazines carry ads that target regional, international or globalcustomers. Examples are Fortune, The economist. Many women s magazines such asCosmopolitan, Elle, Vogue, and Harper s Bazaar are printed in many countries in manylanguages.

y T elevision & Radio: There is almost no country where advertising through TV is not carried out.CNN, BBC World wide, NBC, CNBC, WWE, etc are well recognized international media channels.

y Out door & T ranspor t adver t ising: Examples are Metro bus, park benches, trucks, Taxis, bus stopshelters.

y D irec t mail: Postal services vary from country to country. This advertising technique is good for

local market. Adding to this media, internet is growing fastly and direct mail is shifted to emailsand is more personalized now.(That is direct marketing).

Radio

Newspaper

O utdoor & Transport

advertisin

cinema

Professional &technical magazines

Magazines

AdvertisingMediums

Direct mail

Television


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Advertisers use a vast array of techniques to present their brands in the most favourable light andpersuade customers to contemplate purchasing these brands. Frequently employed techniques are:

I nforma t ional ads (such as automobile ads in the classified pages of the newspaper) H umoro u s exec ut ions (e.g; Little Caesar Pizza ads) S ex appeals (e.g. Calvin Klein ads) C elebri ty endorsemen t s ( e.g.; using ex-athletes such as Michael Jordan or some entertainer like

bill Cosey) V ario u s emo t ional appeals (nostalgia, romance, excitement etc)

Effective advertising is usually creative. Advertising which is the same as most of the other advertising isunable to get customer s attention and is unable to break through the competitive clusters. ( Jewler.J.A , 1985) some of the examples of creative and effective advertising are:

The long pink bunny campaign for Energizer batteries Absolut vodka s continuing campaign that focuses on this brands hip image. The milk-mustache campaign that associates drinking milk with a wide variety of interesting and

respected celebrities.

ROLE & Characteristics of Advertising:1. P ervasiveness: Seller can repeat a message many times. Buyers when receive message they can

compare that product with messages of many other competitors. Example is Nike ad whilewatching a cricket match.

2. A mplified expressiveness: Advertising provides opportunities for dramatising the company andits product through artful use of print, sound, and colour.

3. I mpersonali ty : audience does not feel obligated to pay attention or respond to advertising. it isa monologue in front of, not a dialogue with, the audience.

4. Advertising adds value to brands by influencing consumer s perception. it causes brands to beviewed as more elegant, more stylish, more prestigious. When advertising is done effectively,brands are perceived as higher quality or of better value, which results in increased marketshare and greater profitability. It is little wonder that Proctor & Gamble , leading consumers-good firm fully appreciates advertising value-adding role. Vice President of P & G , hence,characterized strong advertising as deposit in the brand equity bank . (Sanisi. J., 1992)

5. O n the one hand, advertising can be used to build up a long- t erm image for a product (such asMercedes-Benz ads). O n the other hand, advertising can t rigger q u ick sales (as whendepartment stores like Debenhams and Selfridges advertise a weekend sale. (Kirmani. A., 1990)

6. Advertising can be considered as an economic inves t men t . Some American companies investover $1 billion a year on domestic advertising. in the year 1997, for example, proctor & gamblespent $2.6 billion; General Motors spent $2.4 billion, Time Warner spent $1.4 billion.(Advertising Age, September 29, 1997, p 04)


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D emerits of advertising:1. Although it reaches many people quickly, advertising is impersonal and cannot be as persuasive

as company salespeople.2. Advertising is only able to carry on a one-wa y comm u nica t ion with the audience, and the

audience does not feel that it has to pay attention or respond.3. In addition, advertising can be very cos t l y . Although, some advertising forms such as

newspapers and radio advertising can be done on smaller budgets, other forms, such as networkTV advertising, requires very large budgets.

4. In most of the cases, managers and the advertisers have to rely heavily on large doses of j udgemen t along with more quantitative analysis when they are setting advertising budgets.This intuition based advertising budget may not be always right. (Ehrenberg. A., et.al .,1997)

5. Some critics claim that large consumer companies use lots of image advertising extensivelywithout really knowing its effects and they overspend as a form of insurance against notspending enough.

2 : Sales promotions as Non Personal Communication tool:Kotler., et.al (2005), defined this as Short term incentives which are used to encourage purchase orsales of a product or a service. sales promotions are the tools of marketing, which are added benefitsoffered by the companies to encourage the purchase or sales of a product or a service.Advertising in contrast with sales promotions offers the reasons to buy the product where as salespromotions offers the reasons to buy now.Sales promotions includes the wide variety of promotion tools designed to stimulate earlier or strongermarket response. It includes:C ons u mer promo t ion samples, coupons, rebates, prices offs, premiums, contests, and others.

T rade promo t ion-- buying allowances, free goods, merchandise allowances, cooperative advertising,push money, dealer sales contests etc.Sales force promo t ions bonuses, contests, sales rallies etc.


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F igu re 00: shows t he common Sales promo t ion t ools :

Figure 04: Adapted from: Kotler. et.al (2005). P rinciples of Marketing . 4th edition. pearson educationlimited: England: Harlow.

Roles and Characteristics and objectives of sales promotions :1. F acili t a t ing t he I n t rod uc t ion of New prod uc t s t o T rade : Many retailers refuse to carry new

products unless they receive extra compensation in the form of trade allowances, displayallowances and other forms of allowances.

2. Reinforcing adver t ising: a final can do capability of sales promotion is to reinforce advertising.An advertising campaign can be strengthen by well-coordinated sales promotion.

3. Ob t aining p u rchases from T rial cons u mers: Marketers depend on free samples, coupons, andother sales promotions to encourage trial purchases of new products. Many consumers wouldnever try a new product without these promotions.

4. I ncreasing on and off shelf M erchandising space: trade oriented sales promotions enable amanufacturer to obtain extra shelf space for a temporary period. this space may be in the formof extra facing (i.e., rows of shelf space) or off- shelf space in a gondola or an aisle-display.

5. Ne ut ralizing compe t i t ive adver t ising and sales promo t ions: sales promotions can be used tooffset competitors advertising and sales promotions efforts. For example, one company s 50cents-off coupon loses much of its appeal when a competitor simultaneously comes out with a$1 coupon.

samples

coupons

cash

refundoffers

price

packs

premiums

Advertising

specialities

Point of purchase

Competitions,

sweepstakes

Lotteries andgames

Sales promotionTools


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(Schultz.D & Robinson. W., 1986)6. Moreover, sales promotions can build customer relationships. examples include all the

frequency marketing programs , loyalty card schemes and clubs that have mushroomed inrecent years.

D emerits of sales promotion :1. U sually, when a brand is price promoted more often, the consumer begins to devalue it and buy

it mainly when it goes on sales.2. There is also an evidence that price promotions do not build permanent total category volume.

O ne study of more than 1000 promotions concluded that only 16% paid off. (Magid. M .Abraham & Lodish. M. L., 1990, reviewed in 2004)

3. Sales promotions cannot give the trade or consumers any compelling long-term reason tocontinue purchasing a brand.

4. Moreover, sales promotions cannot permanently stop an established brand s declining salestrend, or change the basic non acceptance of an undesired brand.

A dvertising versus sales promotions:A decade ago the advertising to sales promotions was about 60:40. Today- in many consumers-packagedgoods companies, sales promotions accounts for 75% of the combined budget. (Strang. R.,)With the increasing numbers of brands, , companies use promotions more frequently, to attractcustomers as Consumers now are more price oriented, many brands seem similar, advertising efficiencyhas declined because of rising costs, media clutter and legal restraints. There is a danger however, inletting advertising take too much of a back seat to promotions, because advertising increase or build upthe brand loyalty. Sales promotions, whereas, can devalue the product offerings in buyer s mind as they

offer coupons, deals, premiums etc. small share competitors find it advantageous to use salespromotions, because they cannot afford to match the market leader s large advertising budgets; nor canthey obtain shelf space without offering trade allowances or stimulate consumer trial allowanceswithout offering incentives. (Michael. F. Kent, 1985)


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3 : Direct Marketing:Direct marketing is the use of consumer-direct channels to reach and deliver goods and services tocustomers without using marketing middlemen.

Companies now a days are trying to increase the productivity by reducing the personal selling and are

seeking to substitute it by mail-and phone by selling units to reduce the field expenses. Sales producedthrough traditional direct marketing tools have been growing rapidly. Whereas U S retail sales growaround 3 percent annually, catalog and direct mail sales grow at double that rate.

all types of marketers use direct mail as a strategically important advertising medium. Business weekmagazine claims, albeit with some hyperbole, that marketers of all types of consumer goods are turningfrom TV box to the Mail box. (Business week, 1991)

Some of the tools of direct marketing are as follows:

Figure05: Adapted from: Czinkota. M. et.al (2000).

Characteristics of direct Marketing:1. C u st omised: The message can be prepared to appeal to the addressed individual.

2. U p- t o da t e: The message can be prepared very quickly3. I n t erac t ive: The message can be changed depending on the customer s response.

Directmail

Catalogs

Telemarketing

InteractiveTVkiosks

Websites

Mobiledevices


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Demerits of Direct Marketing:1. I nvasion of privac y : Every time consumers made an order for products on internet or by mail or

telephone enter a sweep stakes, apply for a credit card, their names, addresses and purchasingbehaviour are added to several company databases.

2. U nfairness: Some direct marketers take advantage of impulsive or less sophisticated buyers. TVshopping shows and infomercials may be the worst culprits with their smooth talking hosts andclaims of drastic price reductions.

3. I rri t a t ion : Many people do not like the increasing number of hard-sell, direct marketingsolicitations. especially bothersome are dinnertime or late night phone calls, poorly trainedcallers and computerized calls placed by auto-dial recorded message players.

4 : Personal selling:Czinkota. M. et.al (2000) defined personal selling as Direct oral communication designed to explain howan individual s or firm s good, services, or ideas fit the needs of one or more prospective Personal selling is one of the most important elements of the promotional mix and a critical activity of marketing management. It is also one of the most expensive form of promotion that a firm canundertake.The selling environment in concern with selling types is in following sheet:

SellingEnvironments Selling Types

O ver the counter O rder takerO rder Getter

Field Selling professional sales peoplenational AccountmanagersMissionary sales peoplesupport salespeople

Telemarketing O utboundInbound

Figure 06: selling environments and types of selling in Czinkota. M. et.al (2000). Marketing bestpractices: The Dryden Press, Harcourt College Publishers: U SA.

Roles and Characteristics of personal selling :1. It involves direct communication between a sales representative and a prospective customer. , it

is the only form of promotion that allows the firm to immediately respond to the customerprospects.

2. Personal selling allows for immediate customer feedback, so a firm has timely informationregarding customer satisfaction with its offerings.

3. P ersonal in t erac t ion : It involves an immediate and interactive relationship between two ormore persons. Each party can observe the other s reactions.


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Figure07: Kotler. et.al (2005). P rinciples of Marketing . 4th edition. pearson education limited: England:Harlow.

Reac t ive P R or Bad P u blic rela t ions :Reactive Pr is the negative publicity. For example:

y Audi of America experienced and irreversible loss in sales after news report were disseminatedclaiming that the Audi 5000-S sometimes lunged out of control when shifted into drives orgears. Sales plummeted from approx. 74000 units in 1985 to sales of approx.12000 in 1991.

(Kiley.D., 1991)y Food Lion, a regional supermarket chain, suffered grave losses and was forced to close some

stores after news reports charged that the stores are unsanitary and they sell out-of-date meat,fish and other poultry products.

y Cans of Pepsi cola were rumoured to be contaminated with hypodermic needles, but skilfullyconceived public relations quickly dispelled this hoax. (Magiera.M, 1993)

Characteristics of P R :1. P ress rela t ions : Presenting news and information about the organization in the most positive

light.2. P rod uc t pu blici ty : Sponsoring efforts to publicize specific products. for example different brands

have their own ambassadors , which are popular celebrities , such as Christiano Ronaldosponsored by CK.

3. C orpora t e comm unica t ions: promoting understanding of the organization through internal andexternal communications.

Speeches

specialevents

writtenmaterials

audio-visual

materialscorporateidentity

materials

publicservice

activities

Sponsorship

news

Tools of PR


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4. C ou nselling: Advising management about public issues and company positions and image duringgood times and bad.

5. A ssis t ing in t he la u nch of new prod uc t s: The amazing commercial success of toys such asTeenage Mutant Ninja Turtles, mighty Morphin Power Rangers, Beanie babies,

6. A ssis t ing in reposi t ioning a ma tu re prod uc t : New York City had extremely bad press in the1970 s until the I love new York campaign.

7. I nfl uencing S pecific t arge t gro u ps: McDonald s sponsors special neighbourhood events in Latinoand African American communities to produce good will.

8. D efending P rod u c t s t ha t have enco u n t ered p ublic problems: PR professionals must be adept atmanaging crisis, such as the Coca Cola incident in Belgium over allegedly contaminated soda,and Fire stones crisis with regard to the tire tread separation problem.

9. Bu ilding t he corpora t e image in a wa y t ha t reflec t s favo u rabl y on i t s prod uc t : Bill Gatesspeeches and books have helped to create an innovative image for Microsoft Corporation.

10. D rama t iza t ion: Public relations has the potential for dramatizing a company or a product.

Selecting the right communication mix:Companies in the past often treated the marketing communications as virtually separate activities,whereas current marketing philosophy holds that integration of all elements is absolutely imperative forsuccess. The emergence of integrated marketing communications (IMC) has become one of the mostsignificant examples of development in the marketing discipline . ( Kitchen, 200 3 )

Smith e t al. (1999 ) have defined IMC asy Management and control of all market communications,y The strategic analysis, choice, implementation and control of all elements of marketing

communications which efficiently,y Ensuring that the brand positioning, personality and messages are delivered synergistically

across every element of communication.IMC is a powerful tool in reaching target audiences with persuasive messages. O ne of the greatstrengths of IMC is its flexibility. A finely crafted IMC effort can influence those audiences which wereotherwise unreachable. (Pitta.D. et. Al, 2006)Moreover, in determining an appropriate mix of marketing communications elements, the product orbrand manager must weigh the variety of factors related to the category, brand and the market. Amarketing manager should consider it first whether the entire budget goes towards the supporting of sales force or should some of it be allocated to the television advertising? Will coupons or bonus packsor gift vouchers help to move a product more? There is no right formula. The decision could be guidedby addressing the following issues.


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C ri t eria involved in selec t ing righ t comm u nica t ion mix are:

1. Nature of product:The importance of different communication and promotion tools varies between consumer andbusiness markets. It may happen that advertising is a major promotion tool for one and for the other it

have less importance. It all is dependent on the nature of the product. Consumer goods companiesusually put more of their funds into advertising, followed by sales promotion, personal selling, and thenpublic relations. In general, personal selling is used more heavily with the expensive and risky goods andin markets with fewer and larger sellers.Following are the graphs of relative importance of some of marketing communication mix as forconsumer and industrial goods.

CONSUMER GOODS INDUSTRIAL GOODS

Relative importance of promotional tool Relative importance of Promotional tool

Figure 08: Relative importance of promotion tools in consumer versus industrial markets Adaptedfrom: Armstrong.G.,(2005).

2 . W hat are the objectives/the hierarchy of effects and determining the consumerswhen they show purchase intention?

Figure 00: presents the framework, which is called as hierarchy of effects that provides a usefulway of thinking about the objectives that marketing communication is designed to accomplish.Different stages in hierarchy are best understood by examining actual communications situation.Consider again the magazine advertisement that was presented in the opening vignette(G ardenb u rger s Eq u i ty -Enhancing Effor t ). In the case of Gardenburger efforts, they createdcons u mer awareness by presenting a small story about Lucy the lion tamer wanting to eat ameaty burger but not wanting lions to smell meat on her breath. Moreover, consumer awarenessis not only the single factor; advertising should persuade the consumers that in reality, Garden

Advertising

Personal selling

Public

relations

Sales promotion

Personal selling

Sales promotion

Personal selling

Publicrelations


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burger veggie patties taste like real meat. O ther clever fictive devices are designed to influenceconsumer s beliefs/knowledge to encourage the formation of positive attitude and purchaseintentions towards the product.

The process is shown in the following figure No 09:

Figure 09: Hierarchy of effects

Examples of t he cons u mer awareness as in H ierarch y effec t s:

Following are the two different examples of two different products but with the same approaches: oneof the ad is about a fizzy drink seltzer that is making the consumers aware about the thing that sugarybeverages and soda can make them fat, they should go for either water, seltzer (which is zero sugar ) orlow fat milk instead. Moreover the word P OU NDS is highlighted in other colour giving customers theknowledge that they could save the pounds as in money and as in body fats.

Beliefs/Knowledge

Purchase Intention

Attitude

Purchase

Awareness

U nawareness


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Figure 00: Adapted from: http://boulderbite.com/wp-content/uploads/2009/12/NYC-anti-soda-ad1-285x300.jpg & http://images.google.co.uk/images?um=1&hl=en&rlz=1I7AD BR_en&tb s=isch:1&q=gardenburger+ads&sa=N&start=100&ndsp=20

3 . Push versus Pull promotion strategy:Both of the push and pull strategies utilize personal selling, advertising, sales promotion mostly.

Some small industrial goods company s uses only push strategies; some direct marketingcompanies use only pull strategies. Most of the large companies use the combination of both.For example, RJR/Nabisco uses mass media advertising to pull its products, and a large salesforce and trade promotions to push its products through the channels. It all depends on thenature of the market and the product for which strategies to use, be it push, pull or both andthe product life cycle.

(Armstrong.G & Kotler.P., 1994)


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PUSH STRATEGY

Producer marketing Reseller s activitiesActivities (personal selling, (Personal selling,Trade promotions, etc) advertising etc)

PULL STRATEGY

Demand Demand

Producer marketing activities(Consumer advertising, sales

promotions and other)Figure 10: Push versus Pull strategy Adapted from: (Kotler.P; Wong Veronica; Saunders. J;ArmstrongGary.,2005)

4 . B uyer readiness stage:These are the stages that normally consumers pass through on their way to purchase, includingawareness, knowledge, liking preference, conviction and purchase. This process can begin with simplemessages that repeat the company or product name. For example, when Orange introduced its mobile

phone network, it began with an extensive teaser advertising campaign to create name familiarity.Initial ads for O range created curiosity and awareness by emphasizing brand name. The effects of thepromotional tools vary for the different buyer readiness stages. (Armstrong. G, 1994)

Figure 11: shows Buyers readiness Stage:

Producer

Producer

Retailers andWholesalers

Retailers &Wholesalers

Consumers

Consumers

Awareness Knowledge Liking

PurchaseConvictionPreference


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5 . Product life cycle:For the product life cycle stage it should be noted that is the brand well established or is the newproduct in the introduction stage? Thi9s is the crucial point as if to understand the product life cycle, forwhere it lies in the cycle and then marketing tools are used as per need:

Figure 12: Product life cycle : Adapted from: http://www.davedolak.com/advtg.htm :Accessed on: March15, 2010.

Stages of product life cycle versus Marketing communication tools:I n t rod u c t ion s t age of prod uc t : Heavy use of advertising is used, public relations are generated forawareness of the product and to involve buyer s readiness stage, sales promotions could be used for

trial too, to know where the product would lie.G row t h s t age of prod u c t : The marketing tools which should be used are more advertising, publicrelations, branding and brand marketing, and personal selling for distribution of the product or brand.M a tu ri ty st age of prod u c t : Not much advertising be done at this stage. Some reminder and persuasivetechniques should be used the marketing tools to make the consumers and other customers realize thatyou do sell too.D ecline s t age of prod u c t : Advertising and public relations decreases at this point. Limited salespromotion can be used depending on the nature of product. Personal selling should be used as the toolfor distribution of product.

(Dolak.D., 2009)

S ome of t he examples of selec t ing S pecific and righ t C omm u nica t ion M ix according t o t hesi tu a t ion and t he prod u c t life c y cle are:

y To reach target markets and build brand equity, holistic marketers are creatively employingmultiple forms of communications. In Introducing the Mini cooper which originally was sold foronly seven years and withdrawn in 1960 s due to stiff emission regulations and introduced inmarket again in March 2002, BMW did not even use TV advertising. Different poster ads for Mini


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Cooper proclaimed unusual texts as THE S U V BACKLASHO FFICIALLY STARTS NO W , GO LIATHLO ST , XXL-XL-L-M-S-MINI , PO NY-U P. WITH A SMALLER AMOU NT O F PO NY etc. (Levin.K. &Kotler. P., 2006)Two of the poster ads examples are as follows:

Figure 13: Adapted from:http://images.google.co.uk/images?um=1&hl=en&rlz=1I7ADBR_en&tbs=isch:1&q=Mini+cooper+ads&sa

=N&start=80&ndsp=20 , Accessed on: March 10, 2010.

y To launch its new Kleenex soft pack product, Kimberly-Clark budgeted 75 percent of its overalladvertising dollars to television, 23 percent to print, and 2 percent online to build awarenessand drive trial. O nline ads were found to help reach an audience that TV might have overlooked,and online and magazine ads were found to be the most effective mix for brand awareness.

(Brand week, 2003)y Supermarket chain Sainsbury s used seamlessly integrated offline and online communications to

promote its Sainsbury s To You home delivery service. A consistent message was used topromote a consistent offer of 5 [7] off the customer s first online shop via online and offline

advertising, the Sainsbury s website, email outs and in-store events. Although it seems obvious,according to John Baker, head of digital services at media agency Proximity London, it is notuncommon to find the online agency saying they will offer a discount of 5 to shop online, andthe offline ad saying 10 off.

(David Murphy., 2003)


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Changes happening in media and communication landscape:Twenty years ago, 75 percent of marketing budgets went to advertising in the U S. Today, 50 percentgoes into trade promotions, 25 percent into consumer promotions and less than 25 percent intoadvertising (Kitchen, 200 3 ). The allocation of communication budgets away from mass media andtraditional advertising has obviously promoted IMC in recognition and importance for effectivemarketing. The emergence of IT has fundamentally changed the media landscape, contributed to anextensive deregulation of markets and individualized patterns of consumption and increased thesegmentation of consumer tastes and preferences ( Eagle and Kitchen, 2000; Kitchen, 200 3 ).

O n a macro level, we can distinguish three factors which have fundamentally changed the conditions forIMC; deregulations of markets, globalization of economy and individualization of consumption. Theemergence of IT is another underlying factor. Communication always built upon tree systems which aresound image and writing. All these systems depend on technological development. Previously thesethree systems were separate. IT revolution has made a total communicative integration possible, whichin turn have changed business structures. These large business areas are now integrated: telephone,television and the computer industry (Liber & Malmo., 2002) as the total number of internet hostsexpanded from 4852,000 in 1995 to 9472,000 in 1996- with estimates of total users at 30 million andhigher and now they are not even the double in spite much much more than that. (Network Wizards)The fundamental consequence of this integration is that the traditional emphasis on heavy-weight masscommunication campaigns (so-called above-the-line) has been replaced by more direct and highlytargeted promotional activities using direct marketing and other tools aimed to reach the smallest of alltarget groups and the single individual. (Engel, Et.al, 1994)

Suitability of modern marketing percentage superiority over traditional marketing to meet the

objectives of marketing communication mix could be seen in the following table:


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Percentage superiority of .

livecommunication

Traditionalcommunication

A wareness phaseIncrease brand awareness 46 54F amiliari ty phaseCultivate brand image 58.2 41.8Foster trust in brand 87.8 12.2P reference phaseset brand apart fromcompetition 75.2 24.8demonstrate brand quality 83.8 16.2deliver brand experience 68.3 31.7P u rchase phasedirectly increase sales 74.9 25.1Loy al ty phaseIncreased brand loyalty 81.3 18.7Improve customer retention 84.7 15.3

Figure 14: Suitability of live communication to meet the objectives of marketing communication:Adapted from: Kirchgeorg. M et.al (2010). O bjectives for successfully participating in trade shows :Journal of Business and industrial marketing. 25/1 (2010) pp 63-72. Emerald Publishing Limited. [ISSN-0885-8624]P roforma , a franchise business that provides promotional products, is spending a couple of millionsdollars to create a custom software system for its database marketing, as is said by Banning theconcerned person at Proforma. In his view Tw itter and LinkedIn are helping in making more of theirannual sales. Marcy Shinder, VP-brand manager at A merican Express OP EN , expressed on the changesof landscape. In her view the marketers in old economy had time to rely on agencies and partners topackage thinking and to present points of views on the latest trends. But the new economy is moving sorapidly, Marketers to keep pace with the fast moving trends, have to work hard on the research and onthe advertising communication mix for which one to use, to make that brand more cost effective in lesspossible time. (Maddox.K, 2009)Another example is of V irgin A merica airlines , where people once only griped about their lost bags,crowded flights and cattle-call boarding. Virgin America flyers are now tweeting and telling anyone whowill listen about in-flight Wi-Fi, spacious leather seats, mood lighting, and in seat food and beverageordering through touch screens control panels. They began their new operations little over two yearsago and are now enjoying the emails receiving s and other feedback from customers wishing that maytheir flights would have lasted longer. All this was made possible by relying heavily on the marketing mixas on PR, social media, word-of-mouth and partnerships with properties such as G oogle and HBO s

entourage . (Bush.M, 2009)O ne other example of changing media is of viewers of recent episodes of Warner Bros. syndicated

Ellen DeGeneres Show watched as Jeannie, one of the program s production assistants, drove across


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the country in a new 2010 Terrain from General Motors GMS. But fans that follow the show s twitterfeed, @ The Ellen Show, also had the chance to participate in a gas-card giveaway from GMC. As of Nov.06, 2009, Ms Degeneres has 3.6 million followers on Twitter, third only to Ashton Kutcher and Britneyspears, Warner Bros said. (SteinBerg. B., 2009)

Conclusions:O ut of the thousands of brands on store shelves today, what is the chance that a consumer will see anyone particular item, much less buy it? In today s society, consumers are rushed for time. They do nothave any time to leisurely walk up and down every aisle, perusing all of the wares. A brand may be of high quality or fairly valued, but nonetheless it will fail to achieve sales and profit objectives if potentialcustomers are unaware of it or do not perceive it favourably. Some of the promotion mix (Kotler, 2005)consists of specific blending of advertising, personal selling, sales promotion, public relations, and directmarketing tools that are used by company to pursue its advertising and marketing objectives and toreach the customers in this busy world. The traditional role of marketing communications was largelyconcerned with providing the mechanism by which the features and benefits of the product or theservice could be promoted as inexpensively as possible. Today these, marketing communication playdifferent roles, as in Advertising is a form of communication intended to persuade an audience (viewers,readers or listeners) to take some action. When advertising is done effectively, brands are perceived ashigher quality or of better value, which results in increased market share and greater profitability. Somedemerits of advertising are being impersonal, one-wa y comm u nica t ion, and more over advertisers haveto rely heavily on large doses of j u dgemen t . Sales promotions are the tools of marketing, which areadded benefits offered by the companies to encourage the purchase or sales of a product or a service.Advertising in contrast with sales promotions offers the reasons to buy the product where as salespromotions offers the reasons to buy now. O ther marketing tools are direct marketing, personal

relations, personal selling etc. Direct marketing is the use of consumer-direct channels to reach anddeliver goods and services to customers without using marketing middlemen. Personal selling is one of the most important elements of the promotional mix and a critical activity of marketing management.Because personal selling is instrumental in generating revenue for an organization, sales managementrequires the skills of planning, directing, controlling and implementing the personal selling function,which could be too expensive at times and not too efficient. To be sure, the internet and other webtools promises exciting marketing communications potential. However, marketers trying to use the webalone to build brands face many challenges. O ne limitation is that the internet does not build massbrand awareness. The web simply cannot match the impact of World cups, O lympic games or six nationRugby, where tens of millions of people see the same 30-second Nokia or Nike-ad at the same time.

Instead, it is like millions of private conversations. U sing the web only, it is hard to establish universalmeanings such as Nokia connecting People or Just Do It that are at the heart of brand recognitionand brand value. For using the web based tools or internet, the marketing communication should beintegrated with other marketing communication mix to make the customers aware at the most possiblelevel and to make them realize the attributes of the product so they could choose it. IMC produce bettercommunication existency and greater sales impact. They lead to a total marketing communicationstrategy aimed at showing how the company and its products can help customers solve their problems.


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L ist of R eferences:1. O nline is in the Mix for traditional marketers, Special Advertising Section, Brandweek,

February 17, 2003.2. Kitchen, P.J. (2003), "Critical times; an integrated marketing communication perspective",

paper presented at the First International Conference on Business Economics3. Eagle, L.C., Kitchen, P.J. (2000), "IMC, brand, communications and corporate cultures;

client/advertising agency co-ordination and cohesion", European Journal of Marketing , Vol. 34No.5/6, pp.667-86.

4. Smith, P.R., Berry, C., Pulford, A. (1999), S trategic Marketing Communications , Kogan Page,London, .

5. Doole. I & Lowe. R, 2003). International Marketing strategy: Analysis, development andimplementation, Thomson Learning: Routlegde: London.

6. http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Articles/1680110103.html

7.

Dolak.D., 2009. Advertising .Available online at: http://www.davedolak.com/advtg.htm Accessed on 09 March, 2010.

8. David Murphy., (2003). The integrated Approach , Marketing Business (May 2003), pp 15-19.9. Don.E., Schultz, Stanley I. Tannenbaum, Robert. F LAuterborn. ,(1993). Integrated Marketing

Communications. Lincolnwood, IL: NTC Publishing Group, p-46.10. Maddox. k.,(2009). Lessons learned from marketing in a recession. B to B [serial online].

November 16, 2009; 94 (15):20. Available at: Content Select Research navigator, Ipswich, MA.Accessed on: March 16, 2010.

11. Bush. M., (2009). VIRGIN AMERICA. Advertising Age [serial online]. November 16, 2009 ; 80

(39): 12. Available from: Content Select Research Navigator, Ipswich, MA.Accessed on March 17,2010.12. Engel, J.F., Warshaw, M.R., Kinner, T., (1994). Promotional strategy: Managing the marketing

communications process. 8 th Edition. Irwin: Burr Ridge. IL.13. Steinberg. B., (2009). First Network, then cable, now there s social TV. Advertising Age [serial

online] November 16,2009 ; 80 (39) : 3-49. Available from Content Select research Navigator,Ipswich, MA. Accessed on March 17, 2010.

14. Melewar. T.c., & Saunders. j., (2000). Global carporate visual identity systems: using anextended marketing mix , European Journal of Marketing, 34, 5/6 , pp.538-50.

15. A. Jerome Jewler, Creative strategy in Advertising ( Belmont , CA : Wadsworth Publishing

Company, 1985, pp7-8.16. Sanisi. J., (1992). Love: EDLP Equals Ad investment , Brandweek, November 16, 1992.17. Ehnerberg.A, Neil barnard, scriven .J., justifying our advertising budgets market and research

today[February 1977], pp. 38-44; Dana . W. Haymen7 don. E. Schultz, how much should youspend on advertising? Advertising Age [26 April 1999], pp 32; J. Thomas Russell & W. RonaldLane, kleppner s advertising procedure, 15 th edn, ( U pper Saddle River, NJ: Prentice Hall, 2002)

18. 100 leaders by U .S Advertising Spending , Advertising Age, September 29, 1997. p. 04.


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19. Kirmani. A., (1999). The effect of perceived Advertising Costs on Brand perceptions, Journal of Consumer Research, 17 September, 1990, pp 160-171.

20. JEG - Sign In Page". Joeg.oxfordjournals.org.http://joeg.oxfordjournals.org/cgi/content/full/8/3/421 . Retrieved 2009-04-20.

21. Yadien. D & Jefkins. F., (2000). 4 th edition. Advertising .Pearson education limited:England,Harlow.

22. Roger. A Strang., (1976). sales promotions: Fast growth, faulty management , HarvardBusiness Review, (July-august 1976). pp 116-119.

23. Michael. F. Kent, (1985). Advertising/ promotion budgets: How did we get here: and what dowe do now : Journal of Consumer Marketing (Fall 1985): pp 405-447

24. Magid. M . Abraham & Lodish. M. L., (1990). Getting the most out of advertising andpromotion, Harvard Business Review (May-June, 1990). Seen in Srinivasan. S. et.al, Dopromotions benefit manufacturers, retailers or both? Management Science. 2004

25. Schultz.D & Robinson. W., (1986). sales Promotion Management, Lincoln Wood, IL: NTC Books,Chap 03.

26. Kiley.D., After Peugeot and sterling, Who s Next? Adweek s Marketing week, August 19, 1991,p-09

27. Magiera. M., Pepsi weathers Tampering Hoax, Advertising Age, june 21,1993, pp 1, 46.28. M. et.al (2000). Marketing best practices: The Dryden Press, Harcourt College Publishers: U SA.29. Kotler.P., & Keller.L .,(2006). 12ed.Marketing management 12e, Pearson Prentice Hall: new

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