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Flashcards in L7: Marketing communication Deck (53)
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1

Communication process (Hollensen, 2013)

- Sender > Message > Channel > Receiver > Feedback.
- The reverse MKT: Positive post-purchase experience > buyers initiate the communication process by making enquiries or placing orders.

2

Key attributes of effective communication (Hollensen, 2013; Cateora et al., 2012)

- Prevent the noise of rival manufacturers.
- Degree of ‘fit’ between the medium and message.
- The “psychological overlap” between the sender and the receiver to prevent "unintended meaning". Senders understand clearly about the message's purpose, the audience and how the audience will interpret and respond.
- Other factors: language, economic, sociocultural, legal and competitive differences.

3

Steps to build an Advertising strategy (Hollensen, 2013)

1) Objective setting
2) Budget decisions
3) Message decisions (creative strategy)
4) Media decisions
5) Agency selection
6) Advertising evaluation

4

Step "Objective setting" in the Advertising strategy (Hollensen, 2013)

- A specific communication task to be accomplished with a specific target audience during a period of time.
- Two types of objectives: Sales and Communication

5

Step "Budget decisions" in the Advertising strategy (Hollensen, 2013)

- Decide the size of promotional budget, and its allocation across markets and over time.
- Three approaches: Affordable approach, Competitive parity approach, and Objective and task approach.

6

Pros and Cons of each Budget decisions approach

- Affordable approach: simple, prevent wastage. But it is based on historical sales, and cant apply to new products.
- Competitive parity: competitors are not always right, difficult to gather competitors' information.
- Objective and task: it is not practical, and needs good knowledge about the market.

7

Step "Message decisions" in the Advertising strategy (Hollensen, 2013; Kotler and Keller, 2016)

- Address 3 issues: What to say (USP, positioning), How to say (information or transformation), and Who should say (sources of credibility).
- Determine what the communication is intended to achieve in terms of consumer behaviour.

8

Whether to standardize or localize the Message decisions (Hollensen, 2013)

- A complete standardization in all aspects is rarely attainable.
- It implies a common message, creative idea and media strategy. The USP to be clearly understood by customers in a cross-cultural environment.
- Require a balance between conveying message and allowing for local tactics.

9

How to decide media in the "Media decisions in the Advertising strategy (Hollensen, 2013)

- Define TA demographic and psychological characteristics, regional strengths of product, seasonality of sales, etc.
- Consider firm’s market objectives across countries.
- Consider media effectiveness across countries.

10

How to evaluate media effectiveness in the "Media decisions in the Advertising strategy (Hollensen, 2013)

- Reach: Total people exposed to an ad
- Frequency: Average number of times within a given timeframe that each customer is exposed to the same ad.
- Impact: Depends on the compatibility between the medium used and the message.
- Gross rating points = reach * frequency. It indicates the critical mass of a media effort. GRPs may be estimated for individual media vehicles.
- Cost per thousand = cost of an ad / reach of an ad. It is the cost of running a media campaign.

11

Step "Agency selection" in the Advertising strategy (Hollensen, 2013)

- 2 types of agency: a big international agency with domestic overseas office, or a different national agencies in the international markets where the firm is present.
- Criteria to select agency: Policy of the company, Nature of the advertising to be undertaken, Type of product.

12

Step "Advertising evaluation" in the Advertising strategy (Hollensen, 2013)

More difficult to test the advertising effectiveness in international markets:
- Difficult to transfer testing methods used in domestic markets. Ex: conditions for interviewing people vary
- Difficult to isolate the advertising effect - Solution: use an experiment on markets of firm which are grouped according to similar characteristics.

13

The creative plan in Advertising (Lee and Carter, 2012)

1) Positioning: What the product represents in the consumer eyes in reference to competition
2) Appeal: ‘the reason why’ consumers select them.
3) Tone: The use of humour.
4) Format: The way an advertisement is presented, structured and delivered.

14

International advertising (Hollensen, 2013)

It is the extent to degree of standardization / localization
Ex: LEGO in Western vs. Asian

15

International advertising challenge (Hollensen, 2013)

1) Creative challenge: Creating a global campaign concept that meets the global brand aims and is adaptable for local market needs. Obstacles (images, humour, animals, metaphors, colours, traditions).
2) Implementation challenge: Planning and managing the project from inception to the key localization stages. Consider: Roles and accountabilities, Defined budgets, Global creative brief. Clear project management and communication.
3) Solution: a) Not relying on central assumptions of HQ. b) Working close with local c) Wait for the time for the ideas to be implemented.

16

Role of PR (Hollensen, 2013; Lee and Carter, 2012)

+ WOM advertising - cheap and effective.
+ Enhance corporate image building and influence favourable media treatment.
+ Respond to criticism, remedial action, and counter harming messages.
+ Earn and maintain public understanding and acceptance.
+ Venue to meet key customers or suppliers.
+ Indirectly support employees, government and community

17

PR methods (Hollensen, 2013)

1) Sponsorship
2) Celebrity endorsement
3) Product placement
4) Others

18

Sponsorship (Hollensen, 2013)

A business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage

19

Two forms of sponsorship (Hollensen, 2013)

+ Event-sponsorship: provide company with alternatives to the cluttered mass media, segment on a local or regional basis, and reach narrow lifestyle groups.
+ Cause-oriented: company contributes to a cause every time the customers undertake some action.

20

Reasons for the dramatic growth of Sponsorship (Lee and Carter, 2012)

- Increased leisure activity provides opportunity for sponsorship involvement.
- Greater global media coverage of sponsorship events
- Cost-effective marketing communication tool compared with traditional advertising.
- Government policies on tobacco and alcohol.

21

Pros and Cons of Sponsorship (Lee and Carter, 2012)

1) Pros: Media visibility, Corporate hospitality, Direct marketing, E-marketing, Awareness, Commercial impact.
2) Cons: Risk of being perceived as ‘intrusive’, take away the sense of ‘escapism’ => Brands need to fit naturally with events.

22

Celebrity endorsement (Hollensen, 2013)

- The fit between celebrities and product's image.
- Why celebrities?
+ Consumer tends to believe major stars are motivated by genuine affection
+ Highly trustworthy, believable, persuasive and likable.

23

Product placement (Hollensen, 2013)

- The inclusion of a branded product in media, usually without explicit reference to the product. Most commonly are featured in movies, television shows and video games.
- Why product placement?
+ Increase consumer awareness (20%), strengthen demand and drive purchase intention.
+ Market brands on a global basis with a standardized strategy.

24

Other forms of PR

Lobbying for government, press releases, contributing prizes to events

25

International public relations (Lee and Carter, 2012)

Promote ‘mutual understanding and good relations where it is necessary to bridge cultural, geographical or linguistic gaps’.

26

PR in the cultural considerations (Lee and Carter, 2012)

- Concern promoting or enhancing mutual understanding.
- Managing relationships with all key stakeholders involved the strategy development.
- Developing arguments of PR may clash the basic logic of local people.
- Dealing with strong nationalistic feelings by visible commitment to the local community.

27

Exhibitions and Trade fairs definition (Lee and Carter, 2012)

Manufacturers, distributors and other vendors display their products and/or describe their services to current and prospective customers, suppliers, other business associates and the press.

28

Pros of Exhibitions and Trade fairs (Lee and Carter, 2012)

1) Selling benefits: consolidate relationships, acquire sales.
2) Promotional benefits: direct interact in a short time with a large number of customers, suppliers, influencers, etc.
3) Research benefits: MR when attract targeted audience
4) Strategic benefits: gather competitors info, keep up with new technology, see what works now.

29

Sales promotion (Cateora et al., 2012)

- MKT activities that stimulate consumer purchases and improve the middlemen effectiveness and cooperation.
- Main MKT method to target hard-to-reach market (media limitation) or rural parts in less-developed countries.
- Its success depends on local adaptation. Responses to promotions can vary across promotional types and culture.

30

Role of Sales promotion (Cateora et al., 2012)

+ Consumer-product trial or immediate purchase
+ Consumer introduction to the store
+ Gaining retail point-of-purchase displays
+ Encourage stores to stock products
+ Support and augment advertising and personal sales efforts.