Marketing Management Dersi 5. Ünite Özet

Communication Process

Communication can be thought as the process of establishing a commonness, or oneness of thought between a message sender, such as an advertiser, and a receiver, such as a consumer. The receiver of the message is generally called an audience. Communication occurs when the sender of the message and the receiver of the message have a common understanding.(See Figure 5.1 on page 127 of source book for the elements of communication.)

Sender is also called the source of the message. The sender of the message wants to share some ideas with another party. Sender may be a company, an institution, an advertiser, or a sales person.

The customers who watch the shampoo advertising are called as the receivers. In other words, receiver is the party receiving the message sent by the message source. The receiver is the person or group of people (target audience) with whom the source attempts to share ideas.

The credibility of the message sender is very important. If the receiver does not trust the sender or thinks that the sender does not have the expertise, experience, knowledge, the message’s value will decrease. Spokespersons can be better facilitators of the communications process if they are able to convey conviction, if they are easily associated with the object of the message, if they have credible expertise and if they are attractive to the receiver, in the wider sense of the Word.

The process of putting thoughts into symbolic forms is called as encoding. Messages also are transmitted to customers directly via salespeople and indirectly via word of mouth communication from friends and family members.

In the process which is called decoding the receiver assigns a meaning to the symbols encoded by the advertising agency.

The receiver of the message, (the newspaper reader) who has seen the shampoo’s brand will have some response. Response is the reactions of the receiver after being exposed to the message.

Out of the many responses of the receiver, some part of these responses are communicated back to the sender. These types of responses are called as feedback.

Assume that some parts of the newspaper is teared and the receiver could not see the written part of the message. On the other hand, the receiver’s mind may be so busy with the very awful news about a traffic accident on the same page. Thus she could not give her attention to the ad. These types of unplanned static or distortion during the communication process are called as noise. The receiver cannot interpret the message accurately, may miss important points of the message if a noise exists in the communication process.

Integrated Marketing Communication

Marketing communications is defined as the collection of all elements in an organization’s marketing mix that facilitates exchange by establishing shared meaning with its customers.

Although we accept that implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. The basic tools used to accomplish an organization’s communication objectives are often called as the promotional mix.

Due to the changing marketing environment like the introduction of communication technology, digital technology and social media, new tools are added to the blend of promotion mix.(mass / personal communication) .

(See Figure 5.1 on page 130 of source book for “Mass Communication vs Personal Communication”)

Functions of Promotional Tools

Promotion can inform and make potential customers aware of an organization’s offering. They can also provide knowledge and understanding about a brand.

Promotional tools influence and persuade the consumers.

• Promotionaltools attemptto persuade current and potential customers of the desirability of entering into an exchange relationship.
• Elements of the promotion mix may be used to reinforce experiences. Reminding consumers of the benefits of past transactions also reinforces experiences.
• Promotion makes it possible to provide reassurance or comfort immediately prior to an exchange or, more commonly, postpurchase. This is important, as it helps to retain current customers.
• Promotion helps to differentiate a brand.

Integration of Marketing Communication

Today consumers get many messages about a brand from various sources that even they cannot differentiate where they have been exposed to these messages. Mobile phones, web sites, social media, billboards, e-mails, sellers, billboards, friends, packages, movies, magazines, televisions, newspapers, search engines and etc.… Each of them says something to the consumers about the brands. Now companies may have different teams or departments to manage these. One of the very popular concepts of marketing “integrated marketing communication” has aroused out of this problem: inconsistent and uncontrollable communication efforts about a specific product or brand must be integrated. Successful IMC rests on the existence of one communication manager who has the authority to supervise and integrate all the specialized communications functions of the organization.

Elements Of Promotion Mix

Advertising

Generally, people name all types of promotion as advertising. However, its definition is as follows; “Advertising is non-personal mass communication using mass media such as TV, radio, newspapers, magazines, billboards, etc.), the content of which is determined and paid for by a clearly identified sender (the company)”

Advertising performs the following functions in the marketing communication mix:

• Informing: Advertising makes consumers aware of new brands, educates them about a product’s distinct features and benefits, and facilitates the creation of positive brand images.
• Influencing: Advertising messages influence us to try the products.
• Reminding: Advertising keeps a brand or company name fresh in the consumer’s memory.

Effective advertising has to satisfy the following criteria;

• Effective advertising must be coordinated and compatible with the other elements of marketing communication. Effective advertising must get people’s attention and create awareness.
• Effective advertisement messages promise what the brand can deliver. Otherwise, customers may distrust the advertisers and advertisements.
• Successful advertisements are the results of a creativity process. However, if an advertisement is entertaining you but you do not remember the advertised brand of course we may not call it effective.
• Effective advertising must be stated in a way that relates to the consumers’ needs, wants, and values.

Message and Media Strategy

For a message to be communicated successfully, it should be meaningful to the recipient. Messages need to be targeted at the right audience, be capable of gaining attention, and be understandable, relevant and acceptable. Advertisers use emotional or rational appeals to create message content.

Emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase. Emotional advertising refers to advertising that tries to evoke emotions in consumers rather than to make consumers think.

Advertisers using rational appeals in their messages focus on the consumer’s practical, functional or utilitarian need for the product/service. They may explain the features and benefits of the product and some facts about the products, such as giving information about the warranty of a product and explaining how many years it can be used.

Message Execution

Some of the popular message execution styles are slice of life(which show typical people use a product in a normal setting), lifestyle, technical experties, fantasy, mood/image, musical, testimonial evidence or endorment(where a credible/famous person recommends te product), scientific evidence, and personality symbol(a character representing the brand).

Sales Promotion

Sales promotions which are often called promotions make the customer try the products and encourage the customers to buy “now”. While advertisement may need some time to make a sale, consumer sales promotions stimulate the purchase of products quickly by providing incentives to consumers.

However, sales promotions do not help to create brand loyalty which is one of the objectives that can be achieved by advertisement, or it can reverse a declining sales trend. Overuse of sales promotion may be harmful for brand image; consumers may become so deal-prone that they start to buy products only when some incentive is offered.

To improve the effectiveness of sales promotion;

• Sales promotions work when a company is introducing a new product, especially a product with high perceived risk. A coupon or a sample pack may encourage the customer to try the product with fewer costs.
• Sales promotions are effective in creating a repeat purchase pattern for the customer. If more than one proof of purchase (like product label, tap etc.) is required to participate a sweepstake, customers buy more of a product.
• Sales promotions are effective when the company is attempting to create movement of large amounts of products quickly. Bonus packs (three packages of rice wrapped together and sold for the price of two) may achieve this objective and may encourage the use of more products.
• Sales promotions are effective when the company wants to counter the competitor’s attacks. A company may offer a promotion that offers a financial incentive to retaliate the competitor’s strategy of price-cutting.
• Sometimes the customers have more than one preferred brands in a product category. An attractive offer may facilitate the consumer’s decision making for the favor of promoted brand.

Consumer Sales Promotion Techniques

Free test drives for cars, trial offers, bonus packs, coupons, sweepstakes, games, contests, refund, and rebate are all techniques that help sales promotion.

Trade Sales Promotion

The main objective of the sales promotions directed to retailers is to increase distribution and getting shelf space, especially for new products. Discounts, extended credit, point-of-sale (POS) or point-ofpurchase (POP) materials, tie-ins, shelf facings and screamers, and displays are the examples of trade promotions.

Public Relations

A company’s success depends on good relations not only with customers but also with many groups like investors, media, employees, financial institutions, non-profit organizations, suppliers, communities, and governments. These groups are known as publics.

Marketing public relations (MPR) helps to achieve a brand’s communication objectives through activities like media relations, corporate communication, sponsorships, events and publicity, which is a prominent PR tool. Publicity consists of the messages (information) given as news in the media, so these messages are filtered through the editors in the newspapers. Both advertisement and publicity give messages to the audience through the media, in advertisements, the advertiser pays for the communication and company has control over the message.

Public relations generally has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. A successful public relations campaign may provide many benefits to a company like building a positive image, countering bad publicity, improving employee motivation. It may also improve the effectiveness of the company’s advertisements. Public relations may be proactive and reactive.

Personal Selling

Personal selling is a person-to-person communication in which a seller attempts to assist and/or persuade prospective customers to purchase the company’s products or services. In personal selling, there is a direct contact and communication between the customer and the seller.

There are different titles used for sellers such as seller, salesperson, customer consultant, account manager, sales engineer, or sales representative. Sales positions may cover different types of selling positions;

1. Deliverer: The seller delivering water, oil to your home is a seller whose main task is delivering products to customers.
2. Order taker: A seller behind the counter at a fast food restaurant is an order taker.
3. Missionary: These sellers do not take orders from the customers. They have the task of giving detailed information about the products.(a sales represantative introducing new medicine)
4. Technician: A seller with an undergraduate mechanical engineering degree visiting potential factories to sell ventilations systems is an example of technician seller.
5. Demand creator: This selling position requires sellers to use creative methods to sell physical products and mainly services.(an insurance seller)
6. Solution vendor: A seller visiting small and medium sized companies that have problems with customer relations management may provide a solution to the customers.

Personnel Selling Process

Above-mentioned selling positions require different educational background, expertise and may be different in terms of being a challenging and rewarding job. However, personal selling process covers some common steps that are performed by most of the sellers.

(See figure 5.3 on page 139 of your book)

1. Personal selling process begins with identifying the potential customers.
2. In the pre-approach step, sales person arranges a meeting with the prospect and gathers important information about the customer.
3. Approach step involves the first meeting of two parties; the seller and the prospect.
4. Sales presentation is the fundamental part of the selling process since the seller presents the product, gives information, and explains the benefits and value of the product for the customer. SPIN method is a popular method of learning about the problems of the customer. It includes questions to be asked by the seller as situation, problem, impact and need-payoff questions.
5. Handling objections is inevitable part of the selling process. The customer may have some questions, problems in mind. These facts about the product must be explained to the seller honestly. A seller must respond positively to the customer’s objection, ask question to clarify the real reasons of the objection and answer politely
6. Closing a sale means the seller’s asking to customer to purchase the product. The following situations are the contexts that are good for closing the sale:

• When the seller has completed the presentation without any objectives from the customer.
• When the seller completed the presentation and responded to the objections coming from the customer and answered the questions sucessfully.
• When the customer seems interested in the offer. Non-verbal messages coming from the customer must be watched carefully by the seller to find the best time to ask for the order.

Follow-up is very important in modern selling which emphasizes long-term relationships with the customers. The seller has to follow if the customer has any problem with the product or difficulties in using the product.

Direct Marketing

Direct marketing has been added to the promotion mix later than the other tools. Direct here means using direct media such as mailings (including e-mailings), catalogues, kiosks, direct-response television ads, telephone or brochures, and not through intermediaries such as dealers, retailers or sales staff by the company.

The basic characteristics of direct marketing are;

Accountability: Tracking the response of the audience to control content and cost

Effect a response: Objective is getting an immediate response to the message

Interactive process: Feedback help modify future messages

Database: Use to identify target audience and track response More efficient targeting: Database helps to target spesific individuals and groups

Setting The Promotional Strategy

There are two different promotion strategies as push promotion and pull promotion. In the push strategy, promotional efforts are directed to sales force and intermediaries like the retailers.

Pull strategy, on the other hand, aims to create a demand on consumers by directing promotional efforts (sales promotions, advertisements, and etc.) mainly to consumers.

The type of the market and the product affect the design of the communication mix. (See Table 5.5 on pg.143 of your books for situations where personal selling and advertising relatively have more importance.)

Stage in the product lifecycle is another factor that may affect the promotion mix. Introductory stage needs mass advertising and sales promotion while personal selling in this stage is used to gain new distributors. In the maturity stage, sales promotion that will provide incentives to consumers is more important. While companies with more resources use mass advertising and personal selling, companies with limited resources may only afford to use public relations and sales promotion.

Ladder (hierarchy) of Communication Effects is another model that helps marketing managers in designing the promotion mix:

• Brand ignorance
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase

When a product is introduced, new advertising and publicity is important to move consumers from brand ignorance. Teaser campaigns are very effective in creating awareness and gaining attention. In the next stage, building knowledge is important; although advertisements help to give information about the product, personal selling may be necessary if the product is complex and highly technical. Liking may come out of trying the product or from effective public relations and advertisements.

Preference for the product implies comparison with other brands. If the consumers who have tried the product because of the advertisements are satisfied with the product they will prefer it again. Salespeople are important to influence the preferences of customers especially on shopping goods. Consumers make comparisons between the competing brands and good sellers help customers in this process by giving information about the attributes of the competing brands.

Conviction for convenience products may occur after trial of the product several times. For consumer durables and industrial products, personal selling may be more important to convince the customer. Personal selling is the most expensive element of the communications mix and it is generally agreed that personal selling is most effective at the later stages of the hierarchy of effects or buying process, rather than at the earlier stage of awareness building.