The final objective of MC is to convince. Although this goal is most often ascribed to MC, it is the most questionable. "Convince" and "persuade" are not synonymous terms. Realistically, MC does extremely well if it presents ideas in a manner that is so convincing that the consumer will be led to take the desired action. These ideas, along with a host of other factors, will help persuade the consumer to make a particular decision. Therefore, the ability of MC to present information in a convincing manner is critical. It is also necessary to reconvince many consumers and customers, lust because a person buys a particular brand once or a dozen times, or even for a dozen years, there is no guarantee that they won't stop using the product if not constantly reminded of the product's unique benefits. Ultimately, MC objectives can be broken down into very specific tasks. The point is all MC must be guided by objectives.
In conclusion, effective marketing communication should present useful ideas (information) in a manner that makes them clearly understood (communicate), cause the consumer to believe the message is true (convince), and is as appealing or more appealing than the message delivered by competitors (compete).
HOWWE COMMUNICATE
Because communication is such an integral part of effective marketing, it is important that we provide a basic understanding of its process. Our starting point is a basic definition of human communication: a process in which two or more persons attempt to consciously or unconsciously influence each other through the use of symbols or words in order to satisfy their respective needs.
Basic Elements of Communication
The basic elements within any communication system are depicted in Figure 8.1. It includes two or more people or organizations called communicators. The underlying assumption of this model is that all communications (dialogue) are continuous. This factor suggests that we are constantly and simultaneously in the role of communicator and receiver. Each communicator is composed of a series of subsystems (i.e., inputs, outputs, processing). The input subsystem permits the communicator to receive messages and stimulus from outside as well as from the other communicator. It involves the reception of light, temperature, touch, sound and, odors via our eyes, skin, ears, nose, and tastebuds. These stimuli are intimately evaluated through a process called perception. Thus, we input and perceive advertising messages, a 50 cents-off coupon, the appearance and words of a salesperson, and so forth. 3
The processing subsystem of a communicator includes all thought processes. As we process, we generate, organize, and reflect on ideas in response to the stimuli received. This entire process is determined not only by the stimuli just received, but also by all stimuli ever received, such as past experiences, education, health, genetics, and all other factors in our environment. Some people clearly process the humor in the Pepsi-Cola ads better than others.
The output subsystem includes the messages and other behaviors produced by the communicator. These include nonverbal messages, verbal messages, and other physical behaviors. All of these become input (feedback) for other people and can have both intentional and unintentional effects on them.
CHAPTER 8 COMMUNICATING TO MASS MARKETS
INTERFERENCE
FIGURE 8.1 A model of human communication
Friend, parent, boss, client, or customer are just some of the roles we may portray in any communication process. The nature of the role directly affects the nature of communication. We communicate quite differently with our boss than we do with close friends. People who have known each other for a long time often devise their own communication system, which may include lots of nonverbal signals.
Finally, the communicatioa system exists within an environment. The environment is everything internal and external to the communication system that can affect the system (family, school, competing advertisements, etc.). Each of the factors within the environment interacts with the communication system to a different degree. Because communication systems are open to the influence of the total environment, we can never analyze a communication event from only the point of view of the people who seem obviously involved. Everything may affect communication, positively or negatively. The iatter factors may alter or distort inputs, outputs, or processing and are called interference. Interference can be generated internally (e.g., fear, love, prejudice) or externally (e.g., noise, weather, physical appearance).
HOW WE COMMUNICATE
193
1. The primary role of IMC is to systematically evaluate the communication needs and wants of the buyer and, based on that information, design a communication strategy that will: provide answers to primary questions of the target audience; facilitate the customer's ability to make correct decisions; and increase the probability that the choice they make will most often be the brand of the information provider.
2. Marketing communications is defined as a message delivery system that 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.
3. The four components that make up marketing communication are: advertising, sales promotion, public relations, and personal selling.
4. The basic objectives of marketing communication are to: communicate, convince, and compete.
5. The elements of human communication include:
a. The processing subsystem
b. The output subsystem
c. The nature of the role
d. The environment
6. There are four types of communication systems:
a. Interpersonal
b. Organizational
c. Public
d. Mass
Types of Communication Systems
There are several types of communication systems, classified depending on the level of contact between communicators and the ability to respond to feedback.
Interpersonal Communication Systems
At the basic level of interpersonal communication systems is the dyadic context. A dyad consists of two people, or two major subsystems. Personal selling falls under this heading.
Organizational Communication Systems
The organizational communication context represents a much more complex system than interpersonal communication. Examples include a bank, a factory, a retail store, or the government attempting to communicate with one another. These systems include a large collection of subsystems, all organized around a common goal(s). Interactive technology has changed these types of systems in a dramatic way.
Public Communication Systems
This type of system involves communication usually from one person to a large group of people. Although everyone affects everyone else to some degree in every communication system, in a public communication context, such as a speech from a politician to people standing behind a platform of a campaign train, the speaker does most of the talking.
Mass Communication Systems
The mass communication context exists when a person/organization is communicating indirectly with a large group of people and there is even less opportunity for people to interact freely with one another and to mutually affect one another. Advertising and public relations are such mass communications.
194 CHAPTER 8 COMMUNICATING TO MASS MARKETS
Marketing communication
External flow
Internal flow
Target audiences
Target audiences
Customers
Resellers
Companies
Publics
- Past
- Present
- Future
Competing Noncompeting
Government
Agencies
Groups
Employees
Stockholders
Functions
FIGURE 8.2 The flow of marketing communication
Marketing Communications
While all communication includes the same basic components depicted in Figure 8.1, marketing communication differs somewhat in two respects. First, the intent of marketing communications is to present a persuasive message, which reinforces the total offer made by the marketer. Essentially, all marketing communication attempts to create uniqueness in the mind of the target audience.
Second, marketing communication can be divided into two flows (i.e., internal and external), which are directed at different target audiences. This necessitates different communication strategies, which, never the less, must be compatible. A company cannot be telling a customer one story and stockholders another. The flow of marketing communication is depicted in Figure 8.2.
DESIGNING AN IMe STRATEGY
The design of an effective IMC strategy is a very difficult and time-consuming process that requires the efforts of many members of the marketing staff. Although there has been a great deal of variety in designing this process, the steps depicted in Figure 8.3 are most common.
As is the case with most marketing activities, IMC is guided by a set of objectives. There are numerous responses that the manager may desire from his IMC effort. Although the ultimate buyer behavior desired is product purchase, several intermediate responses may prove important as well. Examples of these intermediate responses are shown in Figure 8.4.
If there is a marketing opportunity, there must also be a communication opportunity. Although the role of IMC is de-emphasized in certain marketing programs, there will also be some communicative, motivational, or competitive tasks to be performed. Whether or
DESIGNING AN IMe STRATEGY 1 95
FIGURE 8.3 The IMe Strategy
not the marketing programs should rely heavily on its communication ingredient to per-fonn such tasks depends upon the nature and extent of the opportunity. There are several conditions which, if they exist, indicate a favorable opportunity to communicate: for example, it is always easier to communicate effectively when moving with the current consumer demand rather than against it. Companies such as IBM have been actively promoting their business computers, which are increasing in popularity, rather than home computers, which are not doing as well.
The third consideration is selecting the target audience for the IMC. This is undoubtedly the most important factor in the IMC strategy, yet it is probably the issue that many companies slight or overlook entirely. Marketing messages must be directed at the specific target for which the overall marketing program is being designed. However, very seldom is there a single group of consumers at which to direct promotion. Many individuals affect the buying process, and the IMC program must be designed to reach all of them. In addition to the primary purchasers and users of the product, individuals who influence the purchase decision must also be considered. For example, consumers usually rely heavily upon the assistance and advice of others in purchasing such products as automobiles, interior decorating, major appliances, and physicians, to name but a few. Similarly, industrial buyers consider the advice of engineers, technicians, and even competitors. Thus it is extremely important in resolving the communication issue to identify accurately not only those who consume and buy the product but also those who influence its purchase.
Detennining exactly what to say to the relevant audience is the fourth consideration. The heart of IMC is the transmission of ideas of marketing significance to the seller. Whether these ideas are received and perceived as intended depends in large part on the skill used in developing the communication appeal. It also depends upon the vehicle used to deliver
196 CHAPTER 8 COMMUNICATING TO MASS MARKETS
Awareness
Recall
T
Recognition
~1~
Knowledge
Understanding
T
Attitude change
I
intention to act
Trial
T
Purchase
Repurchase
Commitment
FIGURE 8.4 Goals of integrated marketing communication
the message. Whether it is the message delivered by a salesperson, a newspaper, or a point-of-purchase display, the message must facilitate reaching the communication objectives.
Money is always an important factor; a typical IMC effort is extremely expensive and is becoming more expensive every day. Keeping track of these cost elements is a full-time job. The budget for a particular IMC effort can be determined through very sophisticated computer programs or through intuitive techniques such as experience, following competition, or simply spending all you can afford. Particular budgetary approaches are summarized in Table 8.1.
Once you decide how much to spend, the amounts to be spent on personal selling, advertising, publicity, and sales promotion must be decided. After determining the major allocations, each of these figures must be broken down into much finer increments. For example, the advertising budget must be reallocated by media category, then by specific media, and finally, by particular dates, times, issues, etc.
Evaluating the effer:tiveness of an IMC effort is very important. Three tasks must be completed when one attempts to measure the results of IMC. First, standards for IMC effectiveness, such as retention and liking, must be established. This means that the market planner must have a clear understanding of exactly what the communication is intended to accomplish. For measurement purposes, the standards should be identified in specific, quantitative terms. Second, actual IMC performance must be monitored. To do this, it is usu ally necessary to conduct experiments in which the effects of other variables are either excluded or controlled. The third step in measuring IMC efficiency is to compare these per-
DESIGNING AN I Me STRATEGY
197
TABLE 8.1 Summary of Techniques: Setting the IMC Budget
Technique
General Description
Arbitrary Allocation
Affordability Ratio-to-sales Competitive comparisons Experimental approach Objective-task method
Management bases budget on personal experience, business philosophy, and
marketing intuition Upper limit of budget based on available company resources Amount budgeted is based on some portion of past or forecasted sales Budget based on amount being spent by major competitors Budget based on test market results Determine costs of reaching specific promotional objectives and sum amounts
fonnance measures against the standards. I n doing so, it is theoretically possible to determine the most effective methods of marketing communication.
Finally, how a company organizes for IMC depends on the degree to which it desires to perfonn the communication function internally or to assign this task to outside agencies. Typically, the sales function is perfonned internally and the sales organization is a part of the overall, standing organizational plan. Occasionally, as when manufacturer's agents are used, outside organizations are employed to perfonn personal selling. Advertising services might be perfonned internally or externally. Sales promotion activities are usually also handled internally, although it is not uncommon for advertising agencies to be consulted in connection with sales promotion plans. The same is true for public relations.
The Promotion Mix
The manner in which the four components of IMC (i.e., advertising, personal selling, sales promotion, public relations) are combined into an effective whole is called the fMC mix. The promotion mix tends to be highly customized. While, in general, we can conclude that business-to-business marketers tend to emphasize personal selling and sales promotion over advertising and public relations, and that mass marketers are just the opposite, there are many exceptions. However, the following factors tend to have an impact on the particular IMC mix a company might select:
1. Marketing/fMC objectives: Companies that desire broad market coverage or quick growth in market share, for example, must emphasize mass advertising in order to create a dramatic and simultaneous impact.
2. Nature of the product: The basic characteristics of product (highly technical) suggest the need for demonstration and explanation through personal selling, or mass advertising in the case of a product with emotional appeal (perfume).
3. Place in the product lifecycle: Products in the introductory stage in the life cycle often need mass advertising and sales promotion, those in maturity need personal selling, and those in decline employ sales promotion.
4. Available resources: Companies with limited financial and human resources are often restricted to sales promotion and public relations while those with plenty of both opt for mass advertising and personal selling. 2
The most striking fact about IMC techniques is their cross-substitutability. They represent alternate ways to influence buyers to increase their purchases. It is possible to achieve a given sales level by increasing advertising expenditures or personal selling, or by offering
1 98 CHAPTER 8 COMMUNICATING TO MASS MARKETS
a deal to the trade or a deal to customers. This substitutability calls for treating the various IMC tools in ajoint-decision framework.
The Campaign
Determining what particular devices to use and how to combine them in order to achieve IMC objectives is one of the greatest challenges facing the communication planner. Ordinarily, managementjust make use of the campaign concept. A campaign is a planned, coordinated series of marketing communication efforts built around a single theme or idea and designed to reach a predetermined goal. Although the term "campaign" is probably thought of most often in connection with advertising, it seems appropriate to apply the concept of a campaign to the entire IMC program.
Many types of IMC campaigns may be conducted by a company, and several may be run concurrently. Geographically, a firm may have a local, regional, or national campaign, depending uponthe available funds, objectives, and market scope. One campaign may be aimed at consumers and another at wholesalers and retailers.
A campaign revolves around a theme, a central idea or focal point. This theme permeates all IMC efforts and tends to unify the campaign. A theme is simply the appeals developed in a manner considered unique and effective. As such, it is related to the campaign's objectives and the customer's behavior. It expresses the product's benefits. Frequently the theme takes the form of a slogan, such as Coca-Cola's "Coke is it!" Or DeBeers' "A diamond is forever." Some companies use the same theme for several campaigns; others develop a different theme for each new campaign.
In a successfully operated campaign, the efforts of all groups concerned will be meshed effectively. The advertising program will consist of a series of related, well-timed, carefully placed ads. The personal selling effort can be tied in by having the salesperson explain and demonstrate the product benefits stressed in ads. Also, the sales force will be fully informed about the advertising part of the campaign-the theme, media used, schedule of appearance of ads, appeals used, etc. The sales force will also inform the middlemen, i.e., wholesalers and retailers, about this campaign, and convince them to incorporate it into their total marketing effort. Sales promotional devices will be coordinated with the other aspects of the campaign. For each campaign, new display materials must be prepared, reflecting the ads and appeals used in the current campaign, in order to maximize the campaign's impact
l*3M
Marketing communication: g. Measure results
a. Is intended to be persuasive h. Organize
b. Has internal and external flows
3. Factors that most impact the IMC mix include:
The following steps are involved in designing an IMC a. Marketing/IMC objectives
strategy: b. Nature of the product
a. Determine objectives c. Place in the product lifecycle
b. Determine IMC opportunities d. Available resources
c. Select audience(s)
, c i t / \ 4. A campaign is a planned, coordinated series of marketing u. oeiect message^sj _ _
e. Determine budget
f. Allocate funds
communication effOlls built around a single theme or idea and designed to reach a predetermined goal.
UNDERSTANDING ADVERTISING 1 99
at the point of sale. Personnel responsible for the physical distribution activities must ensure that adequate stocks of the product are available in all outlets prior to the start of the campaign. Finally, people working in public relations must be constantly kept aware of new products, product demonstrations, new product applications, and so forth. Of course, it is extremely important to provide enough lead time so that the public relations effort can take advantage of optimum timing.
UNDERSTANDING ADVERTISING
Undoubtedly, advertising is the promotional element that most consumers feel they know the best and hold strong opinions about. This is a result of the visibility and intrusiveness of advertising. In fact, most people have little understanding of advertising.
The Organization of Advertising
There are within the advertising industry a wide variety of means by which advertising is created and placed in media. At one extreme, an individual might write and place his own classified advertisements in a newspaper in the hope of selling his daughter's canopy bed. At the other extreme, the advertiser employs a full-service advertising agency to create and place the advertisement, retaining only the function of final approval of plans developed by that agency. Significant specialization is developed within the full-service advertising agency to discourage clients from hiring any outside vendors or other parties to perform any of the various fupctions involved in planning and executing advertising programs for the various advertisers that the agency serves. Another organizational possibility is a full-scale, in-house advertising department. This department may have total responsibility for all aspects of the advertisement, or some of the tasks might be optioned out to ad agencies or other types of specialty organizations, e.g., production, talent, media placement. It is not unusual for a large corporation to employ all of these possibilities or to use different agencies for different products or for different parts of the country.
•.Vhether or not the advertiser uses an advertising agency, does his adveltising in-house, or uses some combination of the two depends upon a host of factors unique to each organization: available funds, level of expertise, expediency, and so forth. Regardless of the influencing factors, a number of basic functions must be performed by someone if creative and effective advertisements are to be placed:
s What products, institutions, or ideas are to be advertised
• Who is to prepare advertising programs
• Who the organiLation engages and gives oolicy and other direction to the advertising agency, if any agency is used
• Who in the organization has the authority to develop advertising work ancl/or approves the advertising programs presented by the advertising agency
• Who pays the advertising bill
• Who determines the extent to which advertisements help reach the stated objectives 3
The Advertising Department
A company advertising department can range from a one-person department to one employing 500 or more people. Regardless of the size, advertising departments share similar responsibilities:
200 CHAPTER 8 COMMUNICATING TO MASS MARKETS
1. Formulating the advertising program
2. Implementing the program
3. Controlling the program
4. Presenting the budget
5. Maintaining relationships with suppliers
6. Establishing internal communications
7. Setting professional standards
8. Selecting an advertising agency
The Advertising Agency
The relations between an advertising agency and a client can go on for years, although some clients do move from agency to agency. Firms such as DuPont, Procter & Gamble, Kraft, Kellogg, and General Mills rarely change agencies.
Clients employ advertising agencies because they believe that the agency can: (1) produce better-quality, more persuasive messages for their products; and (2) place these messages in the right media so that the message reaches the greater number of prospects. Clients who believe they can do better themselves set up their own in-house agencies. However, relatively few of them exist and these are in specialized fields such as retailing.
Developing the Creative Strategy
Once all the relevant facts are gathered and evaluated, the process of actually creaiing the advertisement is appropriate. This process is very complex, and a complete description of it is well beyond the scope of this book. However, it is possible to highlight the primary parts of this process.
To begin with, the person or persons actually responsible for the complete advertisement depends upon the advertiser's organization of the advertising function and whether an advertising agency is used. More thar likely, the development and approval of advertising creation is the responsibility of the senior advertising manager within the advertiser company and, when an advertising agency is used, of the agency management. In most agencies, the responsibility is that of the senior account person, in conjunction with the senior creative person assigned to the account. The advertising effort can be divided into two elements: the creative strategy and creative tactics. The creative strategy concerns what you are going to say to the audience. It flows from the advertising objectives and should outline what impressions the cajlpaign should convey to the target audience. Creative tactics outline tile means for catTying out the creative strategy. This includes al! the various alternatives avai;able, which will help reach the advertising objective 0 ,.
The place to begin the creative strategy is to ascertain the proper appeal to employ in the ad. (See Table 8.2.) Identifying the appropriate appeal is j ust the first part of the advertising design process. The second part is to transform this idea into an actual advertisement To say that there are a large variety of ways to do this would be a gross understatement. The number of techniques available to the creative strategist are not only vast, but the ability of more than one technique to successfully operatioaalize the same appeal makes this process even:TIore nebulous.
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201
TABLE 8.2 Primary Advertising Appeals
Product/service featu res Product/competitive advantage
Product/service price advantage News about product/service
Product/service popularity Generic approach Consumer service Savings through use Self-enhancement Embarrassment or anxiety Product trial Corporate
Many products have such strong technology or performance capabilities that these
features can serve as a primary advertising appeal. When an advertiser can determine that his product is superior, either in terms of
features, performance, supporting services, or image, emphasizing a competitive
advantage has proved to be a successful appeal. Offering a product at a reduced price or under some special deal arrangement (e.g.,
buy-one-get-one-free) may be the only viable appeal in a particular ad.
There are times when a truly new product is developed, or when an existing product
is changed or improved in a substantial manner, that highlighting this single
element is the core appeal. Although the manner varies, the notion of claiming that a product is "number one"
or the most popular is an appeal that has been around for a long time, In such advertising, a product or service category is promoted for its own sake, but
individual makes or brands of product are not singled out. A popular appeal is to illustrate through the advertisement how the product may be
used to best serve the needs of the consumer, An opportunity to save time, money, or energy is always very appealing to
consumers. Helping us feel better about ourselves (e.g., personal care, clothing, automobiles) is
an appeal that many people can't resist. Situations that represent a threatening situation, either physically or socially, can
provide the basis for an effective appeal. When this appeal is used, the advertiser offers a free sample, a price reduction, or
some other purchase incentive to encourage consumer use or trial. This type of appeal presents a company or corporation in a favorable light in order
to create a favorable impression or image.
Developing the Media Plan
Although the media plan is placed later in this process, it is in fact developed simultaneously with the creative strategy. This area of advertising has gone through tremendous changes; a critical media revolution has taken place.
The standard media plan consists of four stages: (I) stating media objectives; (2) evaluating media; (3) selecting and implementing media choices; and (4) determining the media budget.
Stating Media Objectives
Media objectives are normally started in terms of three dimensions:
1. Reach- number of different persons or households exposed to a particular media vehicle or media schedule at least once during a specified time period.
2. Frequency-the number of times within a given time period that a consumer is exposed to a message.
3. Continuity-the timing of media assertions (e.g., 10% in September, 20% in October, 20% in November, 40% in December and 10% the rest of the year).
202 CHAPTER 8 COMMUNICATING TO MASS MARKETS
Evaluating Media
As noted in Table 8.3, there are definite inherent strengths and weaknesses associated with each medium. In addition, it would require extensive primary research either by the sponsoring firm or their advertising agency in order to assess how a particular message and the target audience would relate to a given medium. As a result, many advertisers rely heavily on