Marketing Communications Environment Marketing Communications MSc Marketing Management (Lecture 2.2) Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk
Marketing Communications 2015, Business School, BU
Learning Outcomes • To understand the role of MC; • To differentiate external/internal contexts in MC; • To assess the importance of the situational analysis for a MC planning; • To apply stakeholders approach to MC; • To introduce the concept of IMC (Brief Overview)
What are the Internal Factors?
What are the External Factors?
Internal Factors • MEN (Labour). • MONEY (Finances) • MACHINERY (Equipment) • MINUTES (Time) • MATERIALS (Factors of Production)
External Factors • Who are our customers? • Who are our competitors? • What is the cultural environment? • What is the economic condition of the environment? • What is the political and legal environment?
The MC Role in Organisations • Defining organisational relationships • Relationships building and managing tool • Relevance/Receptivity • Communication episodes
Receptivity
Message
Customer Context
Media Selection
Business Context
Context Relevance
Engagement – Key to MC Message • Information nature – rational/functional & emotional/expressive • Equilibrium • Appropriate application of MC tools
Kent and Taylor (2002) • 5 features of dialogical orientation – Mutuality (stakeholder relationships) – Propinquity (temporary/spontaneity of organisation – stakeholder interactions) – Empathy – (support for stakeholder interests and their goals) – Risk (willingness to interact with others on their terms) – Commitment – (interprets, listens to and practises dialogical communications)
MC Transformation • Top-down approach to communication: Awareness, Knowledge, Liking, Preference, Conviction, Purchase – AIDA (Attention, Interest, Desire, Action) • Engagement Model – One-to-one communication (i.e. direct mail) • Shift towards ‘Influence Model’ – CCAC (Conviction, Creativity, Advocacy, Collaboration)
Tactical
MC Strategic
MC – not a core competence; Outsourcing; Short/Medium- term activity Source: Butterfield, J., 1997. Strategy Development. In: Butterfield, L. ed. Excellence in Advertising, p. 87
DRIP • Differentiate – distinctiveness of the product • Reinforce – to maintain brand values: remind about the values, strengthen experiences, reassure • Inform – to raise awareness, to make known the product/service/brand • Persuade – to motivate/convince buying &/or repeating the purchase
Situational Analysis: External Context Change, Dynamism, Uncertainty; Implications for MC: Complexity of contemporary consumer behaviour (autonomy & unpredictability) (TRA): cause ďƒ effect = low predictive power
TRA – Theory of Reasoned Actions
Context - Analytical Tools
1. Competition (PESTEL, STEP/PEST, SWOT) 2. Product category (Perceptual mapping, positioning) 3. Industry power (PLC)- spending power (Porter’s Five Forces) 4. Customer profiling (cluster analysis, segmentation and brand preferences) 5. Firm internal assessment (SWOT)
The Stakeholder Concept Jančič (1996); Wheeler & Sillanpää (1997); Friedmann & Miles (2002) Company Secondary
Primary Social Shareholders;
Inevitable Relation
Investors;
Suppliers/Partners; Local Community
Non-Social Future Generations; Natural Environment
Government ; Competitors;
Employees; Customers;
Social:
Regulation;
Necessary Relations Desirable Relations
Media; Trade Bodies and Unions; Universities and schools
Non-Social Environmental Pressure Groups
Customer – Understanding Key Stakeholder • Recipient of the Message • B2C vs. B2B • Holistic approach to the customer is critical • Message distribution strategies: pull, push and profile • The concept of IMC [Integrated Marketing Communication]
Integrated Marketing Communication: Holistic Approach
Source: Boris, C., 2011. Coca-Cola VP talks about the keys to social media success. Marketing Pilgrim, 8th April.
Internal MC
Watch at http://www.bbc.co.uk/iplayer/episode/b04xngtp/bil island
Watch at http://www.bbc.co.uk/iplayer/episode/b050glpb/bangkok-airport-1-the-airport-ofsmiles
Internal MC • Employees = Internal customers (Berry 1981) • Market orientation directs the structuring of business operations and processes; • Internal customer-supply chain • Organisational culture and behaviour