Core Concepts of Marketing by John Burnett - HTML preview

CHAPTER 8

COMMUNICATING TO MASS MARKETS

SUMMARY

Marketing communication remains one of the most visible and controversial aspects of marketing.

Everyday we see hundreds of ads, redeem coupons, are approached by a variety of salespeople, and are told by countless companies how good they are. This chapter introduces the persuasive arm of marketing communication. In it we suggest that since everything about a company is going to communicate something, it would be beneficial to have as much control over this process as possible.

Other reasons for planning the communication effort are also discussed, as are the primary objectives: (1) to communicate, (2) to convince, and (3) to compete. The systems model of communica-

tion is discussed to clarify the general communications process. Components of this process are defined and described. Types of communications systems are described. IMC is defined from a broad perspective, and then categorized into four components: (1) advertising, (2) personal selling, (3) public relations, and (4) sales promotion. The eight-step process involved in designing an IMC strategy is discussed.

Advertising is discussed in the context of marketing communication that is targeted at mass

markets. It contains a sequential process, but is higWighted through its creative strategy and media strategy.

Sales promotion and public relations are two components that are both misunderstood and mis-

used. The second part of this chapter develops some basic concepts related to both strategies. Reasons for sales promotion and types of sales promotion are discussed. Public relations is viewed in terms of its two publics, internal and external. Several techniques used to reach these publics are proposed.

Professional selling has been defined as personal contact aimed at successfully persuading

prospects to buy products or services from which they can derive suitable benefits. Selling is a major force in our economy, both in terms of employment and its impact on the success of various organizations. The product, customer, competition, and environment must all be considered in determining the relative emphasis to place on personal selling in the promotional mix. The activities of a salesperson can be broken into a series of steps called the sales process. Not all of the steps are required for every sale, but the complete process includes prospecting, preapproach, planning the presentation, the approach, delivering the presentation, handling objectives, closing, and follow-up.

MARKETER'S VOCABULARY

Advertising (consumer's perspective)

One of several incoming messages directed at the con-

sumer, the salience of which is influenced by the emotional, physical, and need state of the individual, and the benefit of which can be information, motivation, and entertainment.

Advertising (societal perspective)

An institution of society that has the capability of informing

the citizen, stimulating economic growth, and providing knowledge useful in decision making, as

well as the tendency both to misallocate scarce economic resources and lead consumers to engage

in behavior that may not be in their best interest.

Advertising (business perspective)

Advertising's function is primarily to inform potential buy-

ers of the problem-solving utility of a firm's market offering, with the objective of developing consumer preferences for a particular brand.

Advertising campaign

The culmination of all the strategic, creative, and operational efforts of

the people working towards a particular set of advertising objectives.

Creative strategy

Concerns what an advertiser is going to say to an audience, based on the

advertising objectives. Strategy should outline what impressions the campaign should convey to

the target audience.

DISCUSSION QUESTIONS

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Creative tactics

Specific means of implementing strategy.

Sales promotion

Temporary special offers intended to provide a direct stimulus to produce a

desired response by customers.

Price deals Short-term reductions in the price of a product to stimulate demand that has fallen off.

Coupon offers, certificates for a specified amount off a product.

Combination offers

Link two products together for a price lower than the products purchased

separately.

Contest

A promotion that involves the award of a prize on the basis of chance or merit.

Rebates

A refund of a fixed amount of money for a certain amount of time.

Premium offers

A tangible reward received for performing a particular act, usually purchasing a

product.

Consumer sampling

Getting the physical product into the hands of the consumer.

Push money

A monetary bonus paid by a manufacturer to a retail salesperson for every unit of a

product sold.

Dealer loader

A premium that is given to a retailer by a manufacturer for buying a certain

amount of a product.

Trade deals

Strategies intended to encourage middlemen to give a manufacturer's product spe-

cial promotional efforts that it would

not receive.

Public relations

Public relations practice is the art and social science of analyzing trends , pre-

dicting their consequences, counseling organization leaders, and implementing planned programs

of action that serve both the organization's and the public interest.

Internal publics

People connected with an organization with whom the organization normally

communicates in the ordinary routine of work.

External publics

People not necessarily closely connected with an organization.

Campaign

Planned series of promotional efforts designed to reach a predetermined goal through

a single theme or idea.

Communication

A process in which two or more persons attempt to consciously or uncon-

sciously influence each other through the use of symbols or words in order to satisfy their respective needs.

Federal Trade Commission (FTC)

Government agency established to protect businesses against

unfair competition.

Marketing communication

Includes all the identifiable efforts on the part of the seller that are

intended to help persuade buyers to accept the seller's message and store it in retrievable form .

IMC mix

Various combinations of elements in a promotional plan: advertising, sales promotion,

personal selling, public relations.

DISCUSSION QUESTIONS

1. List the basic objectives of marketing communication. Why is it often difficult for promoters to reach their objectives? Provide some valid reasons why marketers should pursue these objectives.

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