MP - Communication - 7

nguyp035's version from 2016-05-13 23:25

Section 1

Question Answer
Why do we need marketing communications?Having the right product in right place at right price is good. But if concept and benefits are not communicated with consumers, could be a problem.
In order to change perceptions of a product we need to....KNOW what we want to tell the market about the product - the type of promotion to use - the type of media that is most effective - how should market be contacted
What are the objectives of marketing communication?To BUILD relationships - PERSUADE consumers to choose - REMIND consumers to carry on using product/service - INFORM consumers about new goods
Example of communication...Peugeot 208 - communication to consumers that the car is reliable, energetic, stylish - 'let your body drive' campaign - text, video, posters
Effective communication is...when consumers are able to interpret the message in the same way as expected by the source.

Section 2

Question Answer
Schramms communication modelSchramm suggested that communication was a two way process where both sender & receiver takes it in turns to send and receive messages
the model explains the communication cycle - showing the process a message goes through from a marketer
often we use the drip model (differentiate, remind, inform, persuade) when we think about processes
Sender (transmitter)the person who sends the message
Encoderperson who CONVERTS message to be send into codes
Decoderperson who GETS the MESSAGE sent by encoder and CONVERTS it into a language which is understandable to them
Interpreterperson who tries to UNDERSTAND and ANALYSE the message - message received after interpretation
Receiverperson who GETS the message - he/she decodes and interprets the message (same person as interpreter)
Messageis the DATA SENT by the sender and info that the receiver gets
Feedbackprocess of RESPONDING to the received message by the receiver
Media/MediumCHANNEL used to send the message
Noiseinterference/INTERRUPTIONS caused during the process - also caused when the intended meaning of the message sent by the sender is misinterpreted by the receiver.
Evaluate the purpose of schramms modelthe model shows how meaning is transferred from one person to the other - communication is seen as a never ending process as each person is the sender and receiver so there is an interpretation of the message each turn.
feedback is also important in order to let sender know if receiver interpreted the message correctly - message is useless if receiver doesn't understand so feedback is different from expected.
ExampleA person is talking to someone who does not understand English. The person codes the message and writes the message in the form of language. The other person won't be able to decode it as the person cannot understand the language. The feedback is immediately passed to the sender acknowledging that the receiver hasn't interpreted the message as required making feedback an important component in the communication.
Example 2Toyota Prado GX - banner misinterpreted - had a despotic manner - you HAVE to pay respect to it - used stone carved lion resembles invasion by troops WW2
Advantages of the model are..circular comms give opportunity to both parties to give their opinion - noise helps to understand the issues that can occur during interpretation - concept of interpretation makes communication effective
Disadvantage of the model are...model cannot deal with multiple levels of comms - messages sent and received may be misinterpreted - there can only be two sources of communicating

Section 3

Question Answer
COMMUNICATION MIX consists of...Advertising, sales promotion, public relation, personal selling
Above the line (ATL) communication is...communication that makes use of COMMISSION-PAYING mass media payment to third party agencies (TV press, cinema, radio, posters, internet)
Below the line (BTL) communication is NON-COMISSION paying media focus on individuals (Direct mail, email marketing)

Section 4

Question Answer
ADVERTISING MEDIA channels could benewspaper, tv, radio, direct mail, magazine, internet
ADVANTAGES of advertising aremass appeal, cost efficient if reaching mass audience, conveys rich info
LIMITATIONS of advertising arecredibility issue, high costs, little feedback
CHALLENGES of advertisingdifficult to measure effectiveness, long time effect (e.g. banner vs online search)
Example newspapers(+) flexible, timeless, good local market coverage (-) short life, poor reproduction quality
How do we choose the advertising media?We base it on the criteria of 1- reach and selectivity 2- cost and 3- information
What are the styles of advertising?informative, persuasive, reminder advertising (reminds about product), comparative advertising (mentioning competitors name to show why they are lower in rank (inferior))
Advertising and creative appealsAdvertising should give off positive and negative appeals e.g. fear, guilt and shame (banner tired of being ugly? hit the gym OR humour, love, pride, joy (e.g. johnson and johnson advert mother loving babies)

Section 5

Question Answer
SALE PROMOTIONS are (mechanics)...short term tactics to boost sales e.g. use of coupons, bundles, price promotions, sample, loyalty program, bogof, x % off
The goal of sales promotion is to..induce product trial and purchase - companies spend heavily on sales promos e.g. christmas
ADVANTAGES of sales promotion...effectively stimulates product trial and raise short term sales
LIMITATIONS of sales promotion...costly, puts pressure on demand forecasting and inventory, easily duplicated, negative long term brand image/reference price, sales increase may not be real.
CHALLENGES of sales promotion much does sales increase by - who are competitors? - whats the magnitude of halo effect - whats the margin made? - any substitutes and compliments in or outside prod category?
Effect of sales promotionHalo effect (consuming acceleration, brand switching, cannibalisation)
Example of halo effectTesco has sale for sunflower oil 5lt, sales for ChipFry goes down (brand switch), tesco sunflower 1lt sales fall (cannibalisation)

Section 6

Question Answer
PUBLIC RELATIONSis used to..track public attitudes, identify issues that may elicit public concern and create and maintain positive relationship between a firm and its stakeholders - communicating through media directly or indirectly
ADVANTAGES to PR..high credibility
CHALLENGES of PR...different to control
Example of PR in action...Tesco horse meat scandal - tesco will reduce outsourcing - refund customers - letter of apology to public, reassurance and help offered - their action to prevent it
Methods of PRwrite news press, featured articles, white papers, product placement, appearances, event sponsorship (e.g. scholarship program & tesco sponsers cancer research race for life)

Section 7

Question Answer
PERSONAL SELLING s when..businesses use people (sales force) to sell the product after meeting face to face with the customer. - product is promoted through specialist product knowledge, appearance and attitude - they encourage customer to buy
ADVANTAGES of personal selling are..focuses less on sales and more on developing long term PERSONAL RELATIONSHIPS with buyers - mose PRECISE form of communication - it is the frontline knowledge as one of the most important assets of the firm
DRAWBACKS of Personal selling are..high cost per contact
Personal selling is useful for..higher involvement and complex purchases e.g. B2B
Examplehospital equipment manufacturer requires their sales rep to sell equipment to medical practices & food producer needs sales reps to meet with wholesale/retail buyers

Section 8

Question Answer
INTEGRATED MARKETING COMMUNICATION (IMC) strategy used to...integrate all forms of marketing tools (Advertising, Public relations, personal selling, sales promo) to achieve our marketing objectives
By meeting objectives, it ensures that..all communication mix are consistent (telling the same story for each communication mix)
and the limitations of each communication mix cancel each other off... (e.g. social network, poster, tv, direct mail)
What did companies do previously?Previously company may hire separate agencies for different aspects of communication, which may tear the brand image apart- a sub-prime solution.

Section 9

Question Answer
Extra..Traditional media channels have fragmented audiences
Digital communication such as internet and mobile are... a fast growing form of advertising i.e. putting a positive spin on negative news