Marketing Communications An Introduction 1 Marketing Communications Defined

Marketing Communications Defined n The coordination and integration of all promotion tools and sources

FIGURE 1. 3 Components of Promotion Product Advertising Database Marketing Price Promotion Sales Promotions

Example of Direct Marketing/Database Marketing Thank you for choosing MINI Laval as your service

FIGURE 1. 6 Factors Affecting the Value of IMC Programs • • Development of

EXHIBIT 1. 1 Shoe Advertisements • • • Which advertisement attracts your attention the

What’s Happening! http: //www. youtube. com/watch? v=1 e 4 X 10 h. Oh 9

Communications Theory n In order to understand marketing communications, one must not only understand

Information n Information is what is exchanged in the communication process n Information is

The Power of Information n Certain communication initiatives are “better” at eliciting information –

Communication Process: a linear model Noise Sender Noise Encoding Channel Decoding Noise Feedback Receiver

FIGURE 1. 2 Communication Noise in Television Advertising 12

Advertising Clutter Discussion Slide • How many ads were you exposed to during the

FIGURE 1. 9 Viewer Activities During TV Commercials • Positive Responses • Ads have

Kelman’s model of Message Source characteristics Source Credibility Source Attractiveness Source Power 15

Source credibility n Refers to the extent that receivers perceive the source as able

Source attractiveness n Occurs when the receiver identifies some type of relationship with the

Source power n This is said to be present when the source of a

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Marketing Communications An Introduction 1

Marketing Communications Defined n The coordination and integration of all promotion tools and sources within an organization to maximize the impact on consumers and other end-users at minimal costs. 2

FIGURE 1. 3 Components of Promotion Product Advertising Database Marketing Price Promotion Sales Promotions Direct Marketing Sponsorship Marketing Distribution Personal Selling Internet Marketing Public Relations 3

Example of Direct Marketing/Database Marketing Thank you for choosing MINI Laval as your service professionals in the past. We truly appreciate having you as part of the family. Our records indicate that your vehicle has not been into our service department in the past 9 months. If we can be of any assistance, please contact our appointment center at (450) 686 -7272 or by email at service@minilaval. com. We will continue to do our best to meet your expectations. The MINI Laval Service Team Ref: 624/38166/WMWML 33538 TJ 46384 4

FIGURE 1. 6 Factors Affecting the Value of IMC Programs • • Development of information technology Changes in channel power Increase in competition (global competitors) Maturing markets Brand parity Integration of information by consumers Decline in effectiveness of mass media advertising 5

EXHIBIT 1. 1 Shoe Advertisements • • • Which advertisement attracts your attention the most? Which advertisement is the least appealing? How important is the brand name in each ad? What is the message of each individual advertisement? What makes each advertisement effective? What are the pros and cons of each advertisement? Skechers (http: //www. skechers. com) New Balance (http: //www. newbalance. com) Reebok (http: //www. reebok. com) Asics (http: //www. asicstiger. com)6

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Communications Theory n In order to understand marketing communications, one must not only understand marketing, but also understand some elements of communication theory. n Communication defined - the process by which individuals share meaning. 8

Information n Information is what is exchanged in the communication process n Information is described as a one-way process, whereas the communication process is regarded as two-way, a dialogue n Why do we try and obtain information before making a purchase? n A receiver-orientated view defines information as the “reduction of uncertainty” (Wersig 1974: 73) 9

The Power of Information n Certain communication initiatives are “better” at eliciting information – i. e, personal selling, and forms of direct marketing and direct response marketing n Information is obtained through mutuality, sharing with other consumers – i. e. , impact of word of mouth communications, and consumers knowledge and interactions. n Information is key to influencing and determining consumer choice decisions. 10

Communication Process: a linear model Noise Sender Noise Encoding Channel Decoding Noise Feedback Receiver Noise 11

FIGURE 1. 2 Communication Noise in Television Advertising 12

Advertising Clutter Discussion Slide • How many ads were you exposed to during the last 24 hours from the following media? n n n Television Radio Magazines Newspapers Billboards Internet Web sites • How many ads can you recall from each of the above media? 13

FIGURE 1. 9 Viewer Activities During TV Commercials • Positive Responses • Ads have potential to be entertaining (45%) • Sit and watch ads (16%) • Negative Responses • Get up and do something else (54%) • Get annoyed (52%) • Switch channels (40%) • Talk to others in the room (34%) • Turn down the sound on the TV (19%) • Read (11%) • Use the computer (5%) Source: Jennifer Lach, “Commercial Overload, ” American Demographics, (September 1999), Vol. . 21, No. 9, p. 20. 14

Kelman’s model of Message Source characteristics Source Credibility Source Attractiveness Source Power 15

Source credibility n Refers to the extent that receivers perceive the source as able and willing to give an objective opinion. 16

Source attractiveness n Occurs when the receiver identifies some type of relationship with the source and therefore adopts a similar position. 17

Source power n This is said to be present when the source of a message is able to reward or punish. 18