Marketing Communications_Lecture 1: Introduction to marketing communications

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Introduction to Marketing Communications Communication Theory Review of STP Marketing Communications MSc Marketing Management (Lecture 1) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk Marketing Communications 2016, Faculty of Management, BU


What is Communication to You……?


What is Marketing Communications……? • Marketing Mix – Product, Place, Price PROMOTION, Physical Evidence, People, Processes • Marketing Communications Mix – Advertising, Direct Marketing, Personal Selling, Direct Marketing, Viral Marketing, co-creation and more! Please access this link and read more on cases listed: https://econsultancy.com/blog/11098-how-coca-cola-uses-co-creation-to-crowdsource-new-marketing-ideas/ http://www.forbes.com/sites/ashoka/2014/02/04/why-co-creation-is-the-future-for-all-of-us/


What is Marketing Communications……? “the means by which a supplier of goods, services, values and/or ideas represents itself to its target audience with the goal of stimulating dialogues, leading to better commercial or other relationships.” (Egan, 2015, p. 4)

“is concerned with engagement: the planned, integrated and controlled interactive dialogues with key target audiences to help achieve mutually beneficial objectives” (Dahlen, Lange and Smith, 2010, p. 3)


How has Marketing Communications developed and evolved overtime?


How is technology impacting marketing communications?

Source: Egan, 2015. Marketing Communications.


MC theory – models of communication • Hypodermic effect (Klapper 1960) – the effect of mass-communication!

Read more Wicks, R., 1996. Standpoint: Joseph Klapper and the effects of mass communication: A retrospective. Journal of Broadcasting & Electronic Media, 40 (4), 563-569.

• Basic communication model (Schramm 1955)

Read more Schramm, W., 1955. Information theory and mass communication. Journalism & Mass Communication Quarterly, 32 (2), 131-146.


MC theory – models of communication • Hypodermic effect (Klapper 1960) – the effect of mass-communication! • Basic communication model (Schramm 1955)

Step 2

• Two-step model (Lazarsfeld and Katz 1955) Read more about celebrity endorsement and its power to transform brands: http://www.brandingmagazine.com/2014/11/1 1/celebrity-endorsements-have-the-potentialto-transform-a-brand/

Read this recent article on application of two-step model in the Social Media context: Choi, S., 2014. The Two-Step Flow of Communication in TwitterBased Public Forums. Social Science Computer Review, 1-16.


MC theory – models of communication – into buying process • Hierarchy of effects models • AIDA (Strong 1925)

Read more Smith, R., and Swinyard, W., 1982. Information response models: An integrated approach. The Journal of Marketing, 46 (1), 81-93. Madden, T. J., & Dillon, W. R., 1982. Causal analysis and latent class models: An application to a communication hierarchy of effects model. Journal of Marketing Research, 19 (4), 472-490.


Customer Context

Engel, Kollat and Blackwell (2001)

How linear is our buying behaviour? ↓ Need recognition (Difference between Actual and Desired State)

↓ Search for information ↓ Pre-purchase evaluation of alternatives (Routine/Non Routine Purchase)

↓ ↓ ↓ ↓

Purchase Consumption Post-consumption evaluation Divestment


Making the Choice....... • Heuristic consideration (Cut offs) Examples: Not buying a particular COO; Cut off price; Flying time • Lexicographic consideration –Hierarchy of attributes • Conjunctive Rule –Comparing brands against all the cut offs

• Hedonic Consumption –Fantasy/Imagination/Luxury Goods Read more on hedonic consumption: Elliot, R., 1998. A model of emotion-driven choice. Journal of Marketing Management, 14, 95-108.


What does STP stands for….?



Why the need for STP? • To ensure the marketing mix is able to meet the needs of the different customers “a company with limited resources needs to pick only the best opportunities to pursue” (Beane and Ennis 1987) • Product differentiation approach • Market segmentation approach


Process of Market Segmentation • Breakdown method – Assuming similarity – Identifying particular differences – Most common

• Build-up method – Customers are all different – Seeking similarities – More customer oriented as seeking out the customers needs

• Not necessary either/or but can be a combination of processes


Segmentation and Consumer Markets Segmentation basis - basics – Profile (who are my market and where are they?) – Behavioural (where, when and how does my market behave?) – Psychological (why does my market behave that way?)


Basis of Segmentation

How to segment?

• GEOGRAPHIC • ACORN (A classification of residential neighbourhoods) • MOSIAC (UK’s first neighbourhood classification based on data sources for multiple geographic levels) • ORIGINS (OriginsInfo: “OriginsInfo is a tool which enables an organisation to better understand the cultural, ethnic and linguistic origins of its users, customers, clients and employees. It allows an organisation to customise communications according to people’s backgrounds.” (Webber 2006)) • DEMOGRAPHIC – Age/Gender/Occupation/Marital Status

• GEODEMOGRAPHIC • LIFESTAGE


Persona Development Approach to Segmentation



Target Markets • DAMP • • • •

Levels of stability Previous experiences Product Portfolio offerings What you know best - PLC


Targeting Undifferentiated approach • Royal Mail • Business/Personal Market Differentiated approach • Dell • Fashion providers • Uniqueness of a brand (Volvo) Concentrated/Niche marketing approach • Tyrells Crisps • Ahmed Tea Customised Targeting • B2B


Positioning  Positioning your product so that the customer wants to buy from you rather than your competitors  Perceptual Mapping (Sinclair and Stalling 1990)  Helps with understanding the perception of a brand and attitudes towards it  Repositioning Strategies • • • •

Change the tangible features and then communicate the new product Change product communication to the current market Change the segment marketed to and deliver the same product Change both elements (product attributes and the actual target market)


Classification of Consumers Brand Loyalists • Personally relevant consequences • Brand is a important part of their lives

Routine Brand Buyers • Easier to consume the same brand • Doesn’t have to be the ‘best’ brand rather ‘satisfactory’

Information Seekers • No particular brand affiliation

Brand Switchers • Easily affected by environmental factors – Sales Promotion


References/Further Reading •

• • • • • •

Bartikowski, B., Taieb, B., & Chandon, J. L., 2016. Targeting without alienating on the Internet: Ethnic minority and majority consumers. Journal of Business Research, 69 (3), 1082-1089. Blackwell, Roger D., Miniard, Paul W. and Engel, James F., 2001. Consumer Behaviour. 9th Ed. Mason, OH: South-Western. Hooley, G.J., and Saunders, J.A., 1993. Competitive Positioning: The Key to Market Success. Englewood Cliffs, NJ: Prentice Hall. Kitchen, P. J., & Proctor, T., 2015. Marketing communications in a postmodern world. Journal of Business Strategy, 36 (5), 34-42. O’Guinn, Thomas C. and Faber, Ronald J., 1989. Compulsive buying: a phenomenological explanation. Journal of Consumer Research, 16 (September), 151-155. Payne, A. And Frow, P., 1999. Developing a segmented service strategy: improving measurement in relationship marketing. Journal of Marketing Management, 15, 797-818. Schultz, D. E., & Schultz, H. F., 1998. Transitioning marketing communication into the twenty-first century. Journal of Marketing Communications, 4 (1), 9-26.


PLEASE NOTE! MONDAY Next Week – 8 February: 2 lecture sessions:

1. 11am-12pm (EB306) - Briefing for the assignment/assessment 2. 12pm-1pm (EB306) - Marketing Communications Environment


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