Principles Of Marketing BS2101

1. Principles Of MarketingBS2101 Lecture 9 Communicating the Offer Author: Dr P.Harborne

2. 4 3 5 2 Understanding Consumer behaviour Understanding Customers Understanding Business Buyer behaviour Marketing Planning Week 1 Introduction 6 Principles of Marketing Product Portfolio Strategy Review & revision 11 Marketing services & intangible Delivering the offer Valuing the offer 10 Communicating the offer 7 8 9 Author: Dr P.Harborne

3. Communicating the Offer Objectives To understand: • The marketing communications process • Types of marcomms • Strengths of each type of marcomm • Barriers to effective communication • Key issues in effective communication Author: Dr P.Harborne

4. Communicating the offer Structure • Communication process • Advertising • Targeting Adverts • Promotion through spokesperson • Promotions • Public Relations Author: Dr P.Harborne

5. Communication process Author: Dr P.Harborne

6. Integrating Communications Strategy Author: Dr P.Harborne

7. NOISE The Communications Process Sender Assembles message into words, pictures etc Final message Communicated via chosen media Receiver Interprets message Feedback to sender e.g. complaints, commendations Receiver’s response What they learn, feel, do as a result of the message eg purchase Author: Dr P.Harborne

8. Planning a Marcomms campaign Strategy issues: • Who is our target audience? • What do we need to communicate and achieve (objectives)? • How much shall we spend? • How well did we do? • Media issues: • How should we communicate this? (i.e. the message) • Where should we communicate this? (promotion mix) • When do communications need to take place? (promotion schedule) Author: Dr P.Harborne

9. Promotion Objectives What? Informs Coordination of Marketing Communication Efforts to Influence Attitudes or Behaviors Reminds Builds Relationships Persuades Author: Dr P.Harborne

10. advertising Author: Dr P.Harborne

11. Advertising & Persuasion • 1950s :Hidden Persuaders’ - mistrust of adverts • Govts increasingly control • UK Ban on tobacco advertising • UK Control on alcohol advertising • In UK consumption higher since adverts tightened in 2005 • UK Control on junk food adverts • But does ‘go to work on an egg” revival ban ruin perceptions • Calls for control on UK adverts for • 4x4 cars • Children ( already exists in Sweden) But does advertising really persuade? Author: Dr P.Harborne

12. Subliminal advertising Author: Dr P.Harborne

13. Knocking copy 1 1 From S Africa.This is not allowed in the UK. 2 Author: Dr P.Harborne

14. Knocking copy 2 From S Africa.This is not allowed in the UK 4 3 Author: Dr P.Harborne

15. Influencing consumers • Current techniques • Product placement – videogames, movies, TV programmes • Interpersonal influences -pay people to • order certain drinks in public places • praise products at parties/events • Are these really effective? Do you buy because James Bond does? Or because Brad Pitt does? Or because your next door neighbour does? Author: Dr P.Harborne

16. Advertising and Business • Advertising must be justified by business • TV programme rely on adverts • Sports coverage rely on adverts • FI racing • Premiership football • If banned then will programmes be made? • Will OFCOM 2010 policy change on product placement help? • If watersheds, then will sports events be re-timed? Author: Dr P.Harborne

17. Business Effectiveness • Advertising must be justified for businesses • Does there need to be dialogue i.e. interactive communication? • Is personal communication required for some customers - salesforce (telesales, field force)? • What is the actual cost of the message? • How long does it take to work? • Does it need tweaking? Need process to calculate costs and to track & control campaigns Author: Dr P.Harborne

18. Affordable method METHODS FOR BUDGETING PROMOTION Percentage of sales method Competitive parity method Objective and task method Marcomms Budget How Much? Author: Dr P.Harborne

19. Building the elements • Need to consider elements such as: • The message • The desired source of influence • The medium • Need to integrate multi-media approach (see earlier) • Consider Emirates & sponsorship of Arsenal • Is it only Arsenal fans as the target? Author: Dr P.Harborne

20. Sources of Influence Author: Dr P.Harborne

21. Scheduling • Communications need to be co-ordinated with the rest of the marketing activity e.g. • Product availability • May wish to coincide with related events eg • Robinsons drinks and Wimbledon • Turkeys at Christmas • Sometimes industry timetables e.g. major trade shows Author: Dr P.Harborne

22. Advertising Medium Includes: • TV • newspapers • magazines & periodicals • cinema • radio • billboards & posters • other media • eg buses, taxis, petrol pumps, games Author: Dr P.Harborne

23. Recent developments • Online advertising • Can be image on page, or paid link • But consider Facebook and concerns over adverts • Consider Second Life placement • Contextual advertising • targets users based on keywords in message (e-mail, text) • Exploration of shop or mall based adverts/offers - mobile telerecognised & message sent BUT EC DIRECTIVES ON COOKIES & USE OF PERSONAL DATA (e.g Facebook) Author: Dr P.Harborne

24. Recent Developments • Permission-based i.e tick the box • Generates more response than mass marketing • Viral marketing - exploits social networks • Uses funny clips, games,messages (text or e-mail) • ‘satisfied’ customers circulate e.g. Old Spice adverts • Guerilla marketing • ‘ambushing potential customers with promotional content in unexpected places’ • in 2001, IBM painted “Peace loves Linux” on pavements in San Francisco & Chicago • In June 2010 Dutch brewery (Bavaria) used orange mini-skirted women at World cup game Author: Dr P.Harborne

25. Recent developments • Paying customers to ‘check in’ • Quidco, a cashback and voucher site released a mobile phone app in June 2011 • Customers check-in on their phone while in-store - 25p for carphone Warehouse; 20p for Halfords; 15p for Majestic Wine • Register a card with Quidco and also get cashback in Debenhams, Cineworld, Austin Reed • Other sites with phone apps- MyVouchercodes; Petrol Prices • Tescos & Sainsburys offer apps where your phone becomes the Clubcard or NectarCard Author: Dr P.Harborne

26. Selecting Advertising Media Key factors • Characteristics of target audience • Media usage behaviour, exposure • Budget • Creative constraints • Best presentation of the message eg visuals, colour • Timing • Seasonality of offering; cost of media at different times • Reach and frequency • How wide message needs to be spread, & how often Author: Dr P.Harborne

27. Example Of Press Costs • Daily Mail full page colour position not fixed £46- 50K (4.6m readers - 53% women;63% >55; 63% ABC1) • Daily Telegraph full page colour £59K (Page 1 £68k) (1.9m readers – 56% men; 59% >55; 59% AB adults) • Guardian full page colour )mono) £18k (£11.4m) (1m readers- 47%women; 49% <45; 88% ABC1) • Guardian Inserts 16 pages loose weekdays £50/100 • The Sun full page colour Mon-Fri £40-43k* (7.2m readers – 59% men; 53% 15-44; 87% C1C2DE adults) www.nmauk.co.uk for facts & figures The media fix their advertising rates according to the size of their audience and its age and social profiles: Author: Dr P.Harborne

28. Examples of Media costs • Posters(48 sheet) £1k month (96sheet) £2k month • Poster (backlit 96 sheet) £2k per week • Advan £6k p.m.; trailer £1.3kpm;Postabike £6k pm • Leaflets full Colour A4 £43/1000 • Cinemas (London 530 screens) £3.5K per 30 seconds per day ( 5secs upwards for slots) • Virgin FM (London) 30sec spot, drivetime £0.5K; minimum spend £3k per month • Radio cost is evaluated as Cost Per Thousand listeners ( verified by RAJAR) Author: Dr P.Harborne

29. Example of TV Costs ITV1 – varies by time of day, viewing figures (TeleVision Ratings), no. of advertisers, time of year, event Sell in 10 sec units but most common 30 sec advert (single) • 11 am 2.5TVR (2.5% of all adults) £5,020 • 18.45 (7TVRs) £24,667 • 19.30 Coronation St (26 TVRs) £59,549 • ITV2 2 spots per day (26.2 TVR) £45,000 Author: Dr P.Harborne

30. Unique Selling Proposition Humorous Appeals Comparative Advertising Sex Appeals Demonstration Advertising Appeals Fear Appeals Testimonial Slice-of-Life Lifestyle Designing an Advert Author: Dr P.Harborne

31. Treatment Author: Dr P.Harborne

32. Treatment 2 Author: Dr P.Harborne

33. Treatment 3 Does sex sell? Author: Dr P.Harborne

34. Low Involvement Treatment Author: Dr P.Harborne

35. Low Involvement Treatment 2 Analyse this - what is the message and does it work? Author: Dr P.Harborne

36. Parisian Love Author: Dr P.Harborne

37. Parisian Love • Consider the Google advert • Content • Structure • Format • Medium • Is it an effective advert? Author: Dr P.Harborne

38. Targeting adverts Author: Dr P.Harborne

39. Wassup Author: Dr P.Harborne

40. Wassup again Why would you do this? Author: Dr P.Harborne

41. Promotion through a spokesperson Author: Dr P.Harborne

42. Spokesperson factors • Credibility • source’s perceived trustworthiness, expertise, objectivity. • however expert comprises believability by appearing in ads (hired-gun). • Attractiveness • refers to the source’s perceived social value. • physical appearance, personality, or social status; or similarity to the receiver. • Celebrity • athletes, musicians, movie stars, comedians • “Q rating” of a celebrity: consumers’ level of familiarity and rating of consumers attitude towards person. Author: Dr P.Harborne

43. Spokesperson Author: Dr P.Harborne

44. Spokesperson • Consider the new Old Spice adverts • Tied into campaign of response to questions by twitter, Facebook etc • ‘face’ is an ex US footballer who admits to using a false voice on the advert • Is the ‘silliness’ enough to establish him as an actor not spokesperson? Author: Dr P.Harborne

45. Spokesperson factors • Jamie Oliver & Sainsburys • Backlash from school food campaign • Wayne Rooney & Nike • Metacarpal injuries; private life revelations • Tiger Woods • High profile divorce • “Lost in Translation” - geographical limitations Author: Dr P.Harborne

46. Promotions Author: Dr P.Harborne

47. Attention-Getting Consumer Promotions Attracting Consumers With Price Breaks Contests Coupons Sweepstakes Price Deals Premiums Refunds Sampling Rebates Point-of-Purchase Promotion Special Packs Consumer Promotions Author: Dr P.Harborne

48. Public relations Author: Dr P.Harborne

49. Public Relations Build good relations with company’s ‘publics’ by: • Obtaining favourable publicity • Building a good corporate image • Heading off unfavourable rumours etc • Press interviews / releases • Special events / stunts • Visits to the firm • e.g. Sellafield • Sponsorship • Community projects • Video films • Shareholder reports • Corporate identity materials • Training courses • In-house publications • Conference appearance Author: Dr P.Harborne

50. Introducing New Products to Manufacturers Objectives of Public Relations Introducing New Products to Consumers Influencing Government Legislation Enhancing the Image of a City, Region, or Country Calling Attention to a Firm’s Involvement with the Community Author: Dr P.Harborne