1.2. Role of Communication Flashcards
4 Cs
- Customer Value
- Cost
- Communication
- Convenience
Effective Marketing
Good product or Pricing PLUS available and appealing
Modern concept of marketing
moving away from production to communication orientation
What is communication
Sharing of information/ meaning between: the sender (the source) and the receiver (the audience)
Sender (encoding =>) message (medium) (decoding =>) receiver
Encoding a message
putting idea into symbolic form
transmitting the message (the symbols)
via some medium
decoding the message
assigning meaning to transmitted symbols
When does communication break down
- send the wrong message
- Send the right message but fail to encode it correctly
- Send the right message, encode it correctly, but send it via the wrong medium
- Send the right message, encode it correctly, send it via the correct medium, but receiver fails to decode it correctly
Advertising
- paid form of media
- Reaches large, geographically dispersed audiences, often with high frequency
- Low cost per exposure, though overall costs are high
- Consumers perceive advertised goods as more legitimate
- Builds brand image; enhances brand attitude
- Impersonal; one-way communication
Public realtions
- Enhance a company’s image through publicity, news conferences, sponsored events, open houses, donations
- Highly credible
- Many forms: news stories, news features, events and sponsorships, etc.
- Reaches many prospects missed via other forms of promotion
Sales Promotion
- Makes use of a variety of formats: premiums, coupons, discounts, samples, etc.
- Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales
- Stimulates quick response
- short-lived
- Not effective at building long-term brand preferences
Personal Selling
- Face-to-face contact between the marketer and the prospective customer
- Most effective tool for building buyers’ preferences, convictions, and actions
- Personal interaction allows for feedback and adjustments
- Buyers are more attentive
- Salesforce represents a long-term commitment
Direct Marketing
- Customers purchase the product without a reseller
- Telemarketing, direct mail, online marketing, etc.
- Distinctive characteristics:
nonpublic, immediate, customized, interactive, measurable - well suited to highly targeted marketing efforts
Marketing Communications Mix Comparison
Table
Price can communicate…
- quality (high-end cars)
- exclusivity (watches)
Place of distribution can communicate…
- value (discount vs department store)
- image (drug store vs select shop)
Product or Package can communicate…
- benefits of the product (cosmetics, medicine)
- characteristics of the product (power tool, hair dryer)
Integrated Marketing Communication
- The company integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the company and its products
- all elements of communication mix work jointly to produce effective communication with consumers
- Contrast with traditional approach: ad agencies & marketing department
Traditional marketing vs IMC
Traditional: Separate promotional functions handled by experts in separate departments
=>
IMC: Integrate all aspects of promotional mix under one strategic umbrella
B2B IMC
the largest portion of IMC budget is sales promotions
B2C IMC
the largest portion of IMC budget is personal selling
