N6 Marketing Communications

Marketing Communications Downloaded from hlayiso.com N6

Chapter 1: Advertising: Background and social implications INTRODUCTION Efficient marketing management requires an optimal application of all the marketing policy instruments. This specifically refers to the elements of the marketing mix (price, product, place and promotion), which should be employed as an integrated unit in successful marketing. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 1: Advertising: Background and social implications (continued) ADVERTISING AS PART OF EVERYDAY LIFE Advertising is part of our everyday life in the sense that it is continuous and it is everywhere – it has an enormous influence on the choices we make. It attracts people psychologically (consumer behaviour), socially, culturally and of course visually. It even changes people’s behaviour – it is that powerful. Mobile devices (iPads, tablets, cellphones) have made advertising even more a part of our daily lives. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 1: Advertising: Background and social implications (continued) THE PROMOTION MIX (MARKETING COMMUNICATIONS MIX) The marketing mix can be divided into five different categories as follows: Downloaded from hlayiso.com www.futuremanagers.com

Chapter 1: Advertising: Background and social implications (continued) THE IMPORTANCE OF MARKETING COMMUNICATION Advertising only serves as an aid to successful marketing, and is never an end in itself. The following are requirements for successful marketing: • A well-designed and need-satisfying product. • A good brand name and attractive packaging. • A realistic price. • Suitable distribution channels. • Adequate marketing information. from hlayiso.com Downloaded www.futuremanagers.com

Chapter 1: Advertising: Background and social implications (continued) ADVERTISING AND THE ECONOMY To a large extent, the effectiveness of an economic system is determined by advertising. The reason for this is that advertising largely affects the demand for a product. When a new product is introduced, advertising is an important source of information for the consumer. Advertising can be used to highlight product differentiation. In this way, advertising affects the decision-making process of the consumer. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 1: Advertising: Background and social implications (continued) ADVERTISING AND SOCIETY Advertising has had an influence on society and has been criticised for negative impacts it might make on the way society treats businesses and ethics. Factors leading to better control over advertising include: • The consumer; • The ecology; • Social reform; • A shortage of resources; and • Racial relations; • Malpractice and unreliability. • Government pressure; Downloaded from hlayiso.com www.futuremanagers.com

Chapter 1: Advertising: Background and social implications (continued) CONTROL OVER ADVERTISING It has become clear that all four groups involved in advertising are responsible for control: agencies, consumers, media and the target market. The advertising control in South Africa is split into three categories: • Legislation; • Voluntary control; and • Media codes. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 2: Organising marketing communication INTRODUCTION It is important for a company to establish where the advertising function will fit in amongst the other functions of the business. Many factors need to be considered before this decision can be made. It is a very important business decision because without advertising no business can flourish, no matter how good the products/services are. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 2: Organising marketing communication (continued) ORGANISING MARKETING COMMUNICATION INSIDE ORGANISATION • The advertising manager reports directly to top management. • The advertising manager reports to the marketing manager. • The advertising manager reports to the sales manager. • Advertising can be a line function. • Advertising can be decentralised according to geographical areas. • It can be decentralised according to geographical area, retain a central advertising department. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 2: Organising marketing communication (continued) ADVERTISING AGENCIES An advertising agency is an independent organisation consisting of creative and business people. They create, prepare and place advertisements in the various media on behalf of their clients, who are looking for consumers for their products and services. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 3: The role of communication in marketing INTRODUCTION Marketing is all about communicating the value of a product/service with the aim to promote and sell the product/service to a target market. The marketing mix consists of the 4Ps and includes functions such as research, packaging, transport, advertising and many more. Marketing forms an integral part of the success of any company. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 3: The role of communication in marketing (continued) PRODUCT POLICY For successful marketing, there must be a product to advertise. Products should be improved all the time and new products should be developed in order for the company to remain competitive. In this way, risks are minimised and seasonal influences are eliminated. The manufacturer should therefore endeavour to adapt to the changing tastes and needs of the consumer. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 3: The role of communication in marketing (continued) PRICING POLICY Three methods of determining price exist, namely: • Cost plus; • Competitive pricing; and • Determining price according to demand. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 3: The role of communication in marketing (continued) DISTRIBUTION CHANNELS The task of distribution is to ensure that the product will be available when the consumer needs it. Advertising is entirely useless if the product is not available at all points of sale. It is therefore the marketer’s task to see to it that the product is available by the time the advertisement is running. The longer the distribution channel, the more opportunities there are for advertising. With a long distribution channel, more parties can also be involved in the advertising Downloaded process, from sharing hlayiso.com costs. www.futuremanagers.com

Chapter 4: Introduction to advertising INTRODUCTION Advertising is one of the elements of the promotion mix but also affects the other variables of the marketing mix. It is a non-personal form of communication (directed at the masses). There are many forms of advertising as well as various media that can be used to carry the message over. It is extremely important to do market research before developing an advertisement and choosing the appropriate media. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 4: Introduction to advertising (continued) DEFINITION OF ADVERTISING Advertising can be described as the controlled, non-personal, outward communication about a need-satisfying product, service or idea, directed by an identifiable source at a specific target market in order to inform, remind or persuade them to go over to action. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 4: Introduction to advertising (continued) FORMS OF ADVERTISING Advertising can be classified in various categories such as: • National advertising; • Professional advertising; • Retail advertising; • Cooperative advertising; and • Industrial advertising; • Idea advertising. • Commercial advertising; Downloaded from hlayiso.com www.futuremanagers.com

Chapter 4: Introduction to advertising (continued) ADVERTISING AND CONSUMER BEHAVIOUR The socio-cultural determinants of consumer behaviour are: • Culture and subculture; • Social classes; and • Reference groups. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 4: Introduction to advertising (continued) THE CONSUMER’S DECISION-MAKING PROCESS The consumer’s decision making process is broken up into six steps: Downloaded from hlayiso.com www.futuremanagers.com

Chapter 5: Advertising media INTRODUCTION There are various advertising means that can be used to communicate a promotional message to a specific target audience. These are called advertising media and it includes amongst others internet, television, radio, print and billboards. Advertising media makes it possible to reach a target audience and to make use of words, images and sound in carrying the message across. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 5: Advertising media (continued) THE ROLE OF THE MEDIA IN MARKETING COMMUNICATION For the communication message to reach the consumer, a communication carrier is required. These carriers are the advertising media. The advertiser can either provide his own medium or make use of the mass media, such as the radio, TV, newspapers, magazines, outdoor media, etc. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 5: Advertising media (continued) FACTORS INFLUENCING THE CHOICE OF MEDIA Internal factors include: • Organisational factors; and • Controllable marketing factors. External factors include: • Uncontrollable marketing factors; and • Media factors. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 5: Advertising media (continued) VARIOUS TYPES OF ADVERTISING MEDIA The media can be divided into two groups. Firstly, there are the print media, including direct advertising, for example, pamphlets, brochures and consumers’ newsletters, as well as direct mail, newspapers, magazines, outdoor advertising, for example, panels and posters, and point of sales advertising. Secondly, there are audio-visual media of which radio, TV and cinema are the most important. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 5: Advertising media (continued) ADVERTISING OPPORTUNITIES The advertising opportunities can be divided into two categories according to the type of demand for the product that is to be stimulated. The objective can be to stimulate demand for the generic product (primary demand) or for a particular brand (selective demand). Downloaded from hlayiso.com www.futuremanagers.com

Chapter 5: Advertising media (continued) THE MEDIA PLAN The media plan is a written document compiled by the advertising agency for the client. It is a specific plan for a specific product over a specific period of time. Four aspects form the core of the problem that has to be addressed: • Appeal; • Reach; • Frequency; and • Continuity. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 6: Creating an advertisement INTRODUCTION The advertisement is seen as the creative aspect of the advertising campaign. The message can be carried across to the target audience in various ways – that is up to the imagination of the advertisement designer. The message has to appeal to the target audience and motivate them to respond to the advertisement. A company can decide to make use of an ad agency or have it done internally by the marketing department. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 6: Creating an advertisement (continued) CREATING AN ADVERTISEMENT Activities involved in the creation of an advertisement: Downloaded from hlayiso.com www.futuremanagers.com

Chapter 6: Creating an advertisement (continued) PRINCIPLES FOR DRAWING ATTENTION EFFECTIVELY • A successful commercial indicates the brand name without focusing too much attention on it. • The higher the exposure to the advertisement, the better the chances of retention are. • The illustration has to coincide with the message of the advertisement. • The main heading, either used on its own or in conjunction with the illustration, is Downloaded the main focus of attention from of a print advertisement. hlayiso.com www.futuremanagers.com

Chapter 7: Launching an advertising campaign INTRODUCTION An advertising campaign can be described as a chain or series of advertisements containing a theme. The aim of the campaign (with its theme) is to get a specific message across to a target audience using various media. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 7: Launching an advertising campaign (continued) LAUNCHING AN ADVERTISING CAMPAIGN The activities involved in the management of an advertising campaign are: • Step 1: Situation analysis. • Step 2: Determining the advertising objectives. • Step 3: The advertising budget. • Step 4: Choosing the advertising media. • Step 5: Creating the advertisement. • Step 6: Pretesting. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 8: Advertising research and measuring advertising effectiveness INTRODUCTION Throughout the advertising campaign as well as afterwards, it is important to measure the effectiveness of the campaign in order to see whether objectives/goals were met. Advertising effectiveness also needs to be measured for the following reasons: • To minimise mistakes (mistakes cost money). • To increase the overall efficiency of advertising. • To evaluate different strategies. from hlayiso.com Downloaded www.futuremanagers.com

Chapter 8: Advertising research and measuring advertising effectiveness (continued) ADVERTISING RESEARCH Advertising research is the objective evaluation of advertising as a method of communication and persuasion. Both quantitative and qualitative methods of research and evaluation are used. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 8: Advertising research and measuring advertising effectiveness (continued) RESEARCH ABOUT THE ADVERTISEMENT COPY This research is aimed at the impact ability of the ad and whether it can convey the desired message. Copy, design and layout have to be analysed in detail. The purpose of this research is to provide copywriters and designers with guidelines to produce better advertisements. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 8: Advertising research and measuring advertising effectiveness (continued) MEDIA RESEARCH This research attempts to eliminate waste in advertising by objectively analysing the media available for promoting products and services. It seeks to make valid comparisons so that advertising expenditure is distributed over media that are most likely to result in achieving the objectives of the advertising campaign. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 8: Advertising research and measuring advertising effectiveness (continued) MEASURING THE EFFECTIVENESS OF ADVERTISING There are five criteria that can be used to measure advertising effectiveness: 1. An increase in the awareness of the message. 2. How much the target market can remember something about the message or the medium. 3. The change of the target market’s attitude regarding the commercial. 4. The credibility of the characters in the advertisement. 5. The number Downloaded of enquiries received after the from release of the advertisement. hlayiso.com www.futuremanagers.com

Chapter 8: Advertising research and measuring advertising effectiveness (continued) MEASURING THE EFFECT OF ADVERTISING ON SALES There are a number of techniques that can measure the effect of advertising on sales: • A study of consumer’s purchases. • Store inventory. • Experimental designs. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 9: Sales promotion INTRODUCTION Sales promotions include all the activities and initiatives undertaken by a company that is not covered by any of the other elements of the promotion mix (marketing communications). The aim of sales promotion is to get consumers to buy the product (increase sales) or to increase the usage of a product. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 9: Sales promotion (continued) FEATURES OF SALES PROMOTION The following features of sales promotion should be borne in mind when deciding to include it in the marketing communications mix: • Free samples; • Sales promotion as a flexible tool and with a temporary nature; • Limiting factors such as a lack of skills and ingenuity from the communicator; and • The cost of sales promotion. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 9: Sales promotion (continued) OBJECTIVES The objective of sales promotion is to obtain higher sales as quickly as possible, or to change attitudes. More specific objectives are creating brand name awareness, drawing new clients, increasing sales to present clients, and to increase the effectiveness of advertising. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 9: Sales promotion (continued) TECHNIQUES Different sales promotion techniques include: • Promotion to dealers: push strategies. • Point of sales (POS) exhibitions. • Advertising for dealers. • Promotion to consumers: Pull strategies. • Competitions and raffles. • Premiums.Downloaded from hlayiso.com www.futuremanagers.com

Chapter 9: Sales promotion (continued) TRENDS This is a form of advertising gaining popularity and with endless possibilities. Organisation and planning are constantly improving because of the cost involved and competition. Agencies are stepping in, leading to better services. Methods used more frequently today are discount coupons and combination offers. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 10: Publicity and public relations INTRODUCTION Publicity is creating awareness for a product or company by using mass media. Usually it is in the form of newsworthy articles. Public relations are the actions of a company or store. It is all about the image of a company; how the public/customers /employees/community view the company. Public relations are about creating goodwill between the company and the abovementioned entities. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 10: Publicity and public relations (continued) DEFINITION OF PUBLICITY Publicity can be defined as the personal and impersonal stimulation of demand for a product, service, personality, place, institution or idea by making available their commercial news value to the mass media such as the press, radio and television, and where the sponsor normally does not pay the placement/broadcasting of the message. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 10: Publicity and public relations (continued) PUBLIC RELATIONS The aim of public relations is to create better understanding between people and organisations, for example, between a business concern and its clients. All institutions exist to serve the public. They are all dependent on the acceptance and support of the public at large and should therefore take the needs and wishes of the public into account. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 10: Publicity and public relations (continued) OPPORTUNITIES, OBJECTIVES AND MEDIA FOR PUBLIC RELATIONS • A number of general objectives can be identified, such as: • Gain and retain the goodwill of the public. • Assist management to act in the interest of the community. • Promote understanding and acceptance of the company. • Keep employees informed about the activities of the company. • Communicate the role of the company in the economy of the country. • Promote the system of free enterprise. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 11: Personal selling INTRODUCTION Personal selling is different from other types of selling (such as advertising) since the salesperson communicates with the potential buyer in person. Personal selling can take place face-to-face or over the phone (telesales). Downloaded from hlayiso.com www.futuremanagers.com

Chapter 11: Personal selling (continued) OBJECTIVES Qualitative, such as: • Prospecting – finding potential buyers. • Assisting intermediaries. Quantitative, such as: • Reach a specific sales target. • Obtain new accounts. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 11: Personal selling (continued) BASIC TASKS OF THE SALES REPRESENTATIVE Some of the basic tasks of a salesperson are as follows: • Prospecting; • Customer visits/calls; • Obtain orders; • Product presentations and demonstrations; and • Provide information. Downloaded from hlayiso.com www.futuremanagers.com

Chapter 11: Personal selling (continued) THE SELLING PROCESS Step 1: Prospecting. Step 2: Pre-approach (Preparation for contact). Step 3: The approach. Step 4: The presentation. Step 5: Handling objections. Step 6: Closing the sale. Step 7: After-sales service. Downloaded from hlayiso.com www.futuremanagers.com