Communication Strategy

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Communication Strategy

• Marketing Management

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Agenda

• Communication process
• Communication plan - the six Ms
• Market
• Mission
• Money
• Message strategy
• Media planning
• Monitoring of advertising effects
• Integrated Marketing Communications (IMC)

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Communications Process Nine Elements

• Parties
• Sender
• Receiver
• Communication tools
• Message
• Media (personal non-personal)

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Communication Process Nine Elements

• Functions
• Encoding putting thoughts into symbolic forms
• Decoding assign meaning to symbols encoded by
  the sender
• Response reactions of receiver
• Feedback part of receivers response
  communicated back to sender
• Noise unplanned distortion during process,
  message received differs from message sent

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Communication Process

• Senders need to know what audiences to reach
  what responses are desired
• Senders must be good at encoding messages that
  take into account how the target decodes them
• Develop feedback channels to assess how
  audiences response

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Communication Plan Six Ms

• Market target audience
• Mission - goals
• Money - budget
• Message strategy
• Media plan
• Measurement

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Target Audience

• Target customer
• Primary
• Secondary
• Non-customer targets
• Potential investors
• Channel members
• Staff
• Financial analysts

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Target Audience

• Affects decisions related to what, how, when, and
  where message will be said.

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Mission

• Hierarchy-of-effects model

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Mission

• Non-durables behavioral stage embraces trial
  repurchase
• High versus low-involvement
• Goals change over PLC

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Advertising Goals over the Product Life Cycle
Focus on Brand Superiority and Consumer
Preferences
Focus on Education about Product Class
Features/Benefits and Consumer Awareness
Focus on Brand Image and Consumer Loyalty
Time
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Types of Advertisements

• Pioneering
• what is the product
• what can it do
• where to be found
• Competitive (direct versus indirect)
• persuade target
• Reminder
• Reinforce previous knowledge
• Assure current users they made the right choice
  (reinforcement advertisements)

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Promotional Budget (Money)

• Affordability
• Percentage-of-sales (current or expected)
• Competitive parity
• Share-of-voice
• Objective-and-task (right way)

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Promotional Budget Objective-and-Task

• Specific objectives are defined
• Tasks required to achieve objectives are
  determined
• Sum of costs of performing tasks budget

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FIGURE 18-8 The objective and task approach
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Promotional Budget - Factors

• Stage in the PLC
• Market share
• Ad clutter
• Degree of brand differentiation

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Hong Kong Top 10 Spenders (2000) (000s)

• HSBC 57,166
• PCCW 48,635
• Country Garden 42,019
• McDonalds 35,908
• Hutchison 32,239
• Admart 29,226
• Sunday 26,657
• Dairy Farm 25,768
• Wm. Wrigley 23,137
• Hong Tai Travel 22,387

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Resource Allocation Push versus Pull

• Push activities Trade promotions and personal
  selling efforts push the product through the
  distribution channels
• Pull activities Media advertising consumer
  sales promotions (couponing, sweepstakes, etc.)
  generate consumer demand to pull the product
  through the channel

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Push versus Pull - considerations

• Where is purchase decision made?
• Who owns consumer?
• Competition

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Advertising Message

• What?
• Message content
• How?
• Message structure
• Message format

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Message Content AIDA Framework Desirable
Qualities

• Ideally, message should
• Get attention
• Hold interest
• Arouse desire
• Obtain action
• Rational versus emotional appeals

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Rational Appeals

• Features/benefits
• Competitive advantage
• Favorable price value for money
• News
• Popularity (Canon No. 1 copier in the world)

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Emotional Appeals

• Positive
• Love
• Joy
• Adventure
• Freedom
• Pride, etc.
• Negative
• Fear, anxiety
• Shame
• Guilt, etc.

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Message Format

• Tagline, headline
• Illustration
• Visuals
• Slogan
• Format
• Tone -- Humor/Fear

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Message Structure

• Draw conclusion or leave it to the audience
• One-sided versus two-sided (Listerine tastes bad
  twice a day)
• Strongest argument first or last

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Media Decisions

• Reach versus Frequency versus Impact
• Media mix
• Schedule over time

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Media Selection Macro Decisions

• Reach
• Frequency
• Impact
• Gross Rating Points (GRPs)
• Reach X Frequency

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Higher frequency

• the shorter the purchase cycle
• the greater the clutter
• the more intense the competition
• learning-reinforcement message
• complex persuasion

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Higher reach

• Broad target audience
• Goal creating awareness

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Choosing among Media Types

• Target audience (profile, broad versus narrow)
• Product (fit)
• Message
• Cost-per-thousand (CPM)

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Media Schedule over Time

• Macro-schedule
• Seasonal (before - during)
• Counter-seasonal
• Micro-schedule
• Flighting (bursts no advertising)
• Continuous (evenly distributed)
• Pulsing (basic regular bursts)

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I know that half of my advertising is wasted. My
problem is that I dont know which half.

• John Wanamaker

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Monitoring Ad Effectiveness

• Tracking studies measure responses over time
• Comprehension
• Persuasion
• Awareness
• Unaided recall top-of-mind
• Aided recall
• In-field Experiments

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Traditional Communication Strategy
Merchandising
Public Relations
Direct Marketing
Advertising
Sales Promotion
Sponsorship
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Integrated Marketing Communications

• Mass markets increasingly fragmented
• Conflicting messages from different sources can
  confuse company and/or brand images

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Integrated Marketing Communications (IMC)

• Look at communication mix as a whole
• Center campaign around an idea/word
• Each element of communication mix an expression
  of that idea/word ? different voices delivering a
  clear, consistent, and compelling message
• Result reinforcement of idea more
  bang-for-the-bucks

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Integrated Marketing Communication
Merchandising
Direct Marketing
Advertising
Idea!
Sales Promotion
Public Relations
Sponsorship