The Marketing Mix: Communication Policy

Agenda

  • 06 THE MARKETING MIX

    • Organizational Matters

    • Introduction to Marketing

    • Marketing Mix

    • 6.1 Product Policy

    • 6.2 Promotion Policy

    • 6.3 Price Policy

    • 6.4 Distribution Policy

Introduction to the Marketing Mix

  • Definition of Promotion Policy: "Advertising is the art of aiming for the head and hitting the wallet. Communication is the art of aiming for the heart to hit the head." – Vance Packard, US publicist and consumer critic

Communication Policy

What is Communication Policy?

  • Communication policy involves:

    • Planned Design: Strategic and intentional creation of communication methods.

    • Transmission of Information: Sharing information aimed at influencing recipient behavior.

    • Objective: Aligning recipients’ knowledge, attitudes, and behaviors with the company’s goals.

Key Functions of Communication Policy

  • Defining Communication Goals and Target Groups

  • Guidance for Decision Making: A framework for developing communication strategies.

    • Budgeting and Media Planning: Allocating financial resources for various media channels.

    • Designing Communication Measures: Crafting messages and pre-testing content.

    • Executing and Monitoring Communication Success: Assessing effectiveness and ensuring compliance with regulations.

Steps in Communication Policy

  1. Recognizing the Necessity of Communication Policy

  2. Defining Communication Goals

  3. Understanding Communication Concepts and Their Impact

  4. Using Communication Instruments

  5. Defining and Allocating the Communication Budget

  6. Conducting Communication Controlling

Need for Communication Policy

  • Market Dynamics:

    • Product Interchangeability: Similar products lead to increased competition.

    • High Product Failure Rates: 70% of new products do not survive the first year.

  • Information Overload:

    • In Germany, over 50,000 brands are actively advertised, resulting in daily exposure to 3,000 messages, of which only 5% are consciously perceived.

  • Socio-Demographic Changes:

    • Constant evolution in consumer media usage habits.

Setting Communication Goals

  • Economic Goals:

    • Market Share: Growth and maintenance strategies.

    • Revenue and Profit Maximization: Overall financial objectives.

  • Strategic Goals:

    • Price Leadership: Establishing a competitive edge in pricing.

    • Market Leadership: Achieving the most significant market presence.

  • Psychological Goals:

    • Affective: Creating favorable attitudes and brand image.

    • Cognitive: Improving awareness and knowledge.

    • Conative: Promoting actions such as purchase intentions.

Communication Concepts and Impact

The AIDA Model

  • Attention: Capturing the audience's notice.

  • Interest: Engaging consumer curiosity.

  • Desire: Encouraging a preference for the product.

  • Action: Motivating the consumer to purchase.

Involvement in Advertising Design

High Involvement Advertising

  • Goal: Convince consumers through strong arguments.

  • Message Content: Comprehensive and detailed information.

  • Message Length: Extensive due to complex information.

  • Means of Communication: Emphasizes factual language and data.

  • Repetition Frequency: Utilized less frequently.

  • Timing of Communication: Engaged during critical purchasing situations.

Low Involvement Advertising

  • Goal: Generate contacts frequently.

  • Message Content: Aimed to convey simple messages.

  • Message Length: Kept short and concise.

  • Attitude Change: Driven mainly by emotional appeals.

  • Repetition Frequency: High levels due to simple messages.

  • Timing of Communication: More constant and pervasive.

Basic Positioning Approaches Based on Involvement

  • Cognitive and Emotional Involvement Ratios:

    • High Cognitive Involvement + High Emotional Involvement

    • Low Cognitive Involvement + High Emotional Involvement

    • High Cognitive Involvement + Low Emotional Involvement

    • Low Cognitive Involvement + Low Emotional Involvement

  • Strategies:

    1. Mixed Positioning

    2. Experience-Oriented Positioning

    3. Fact-Oriented Positioning

    4. Relevance & Focus on Brand Awareness

Unique Selling Proposition (USP) and Unique Communication Proposition (UCP)

  • USP:

    • Example: BMW - Sporty Cars combined with Quality, Design & Comfort.

    • UAP (Unique Advertising Proposition): "Freude am Fahren" / "Sheer Driving Pleasure" draws from the USP.

Storytelling in Marketing

  • Definition: Using narratives to engage audiences and enhance brand representation.

  • Benefits:

    • Easier retention of information compared to pure statistics.

    • Engaging storytelling can make a message memorable.

  • Techniques:

    • Sharing specific user experiences and employing metaphors.

Communication Tools Overview

Types of Communication Tools

  • Classic Advertising

  • Public Relations (PR)

  • Online and Guerrilla Marketing

  • Direct Mailing

  • Event Marketing

  • Sales Promotion

  • Product Placement

  • Customer Engagement through Experiential Marketing

Sponsoring

  • Objectives:

    • Maintain brand awareness and a positive brand image.

    • Create goodwill among target audiences.

  • Types of Sponsorship:

    • Sports

    • Cultural

    • Social

    • Eco

    • Scientific events

Risks Associated with Sponsoring

  • Negative Publicity: Associations may lead to public backlash (e.g., sponsorship linked with scandals).

  • Perception: Sponsorship may be viewed as disingenuous if not aligned with brand values.

Guerrilla Marketing

Objectives

  • Attention: Use unconventional methods to attract attention.

  • Cost-Effectiveness: Achieve marketing goals with minimal budget.

Risks

  • Reputation: Negative responses from unconventional methods.

  • Control: Difficulty in managing public reception.

Types of Guerrilla Marketing

  1. Street Ambient Marketing: Temporary installations in public areas.

  2. Indoor Ambient Marketing: Similar principles used within enclosed spaces.

  3. Ambush Marketing: Leveraging events for branding without official sponsorship.

  4. Experiential Marketing: Engage consumers by creating immersive experiences.

Event Marketing

  • Definition: Create memorable experiences through events.

  • Success Factors:

    • Customer engagement through active participation.

    • Emotional and cognitive involvement to boost brand relation.

Product Placement

  • Natural integration of brands within films and television shows as props to promote without overt advertising.

Sales Promotion

  • Definition: Temporary measures to boost sales volume.

  • Types of Promotions:

    • Consumer Promotions: e.g., coupons, events.

    • Trade Promotions: Special offers to retailers.

    • Manufacturer Retailer Promotions: Incentives to push products through retail channels.

Online and Social Media Marketing

Display Advertising

  • All graphic-based advertisements found online.

Mobile Marketing

  • Marketing executes via mobile devices, i.e., SMS and mobile coupons.

Email Marketing

  • Creating dialogue with users through personalized outreach.

Social Media Marketing

  • Utilization of platforms for user-created content and engagement.

Objectives of Social Media Marketing

  1. Image Building: Enhance brand reputation.

  2. Product Development: Collect consumer feedback and insights.

  3. Sales Increase: Boost sales through social engagement.

  4. Awareness Growth: Expand company reach and visibility.

  5. Employer Branding: Attract and retain talent.

Innovation in Social Media Marketing

  • Crowdfunding: Community funding to reduce entrepreneurial risk.

  • Crowdsourcing and Customer Co-Creation: Involving customers in product ideation and design.

Content Marketing

  • Engaging audiences through value-adding content without direct promotion.

  • Examples include informative articles, videos, or podcasts that highlight the brand indirectly.

Viral Marketing

Elements Driving Virality

  • Social Currency: Content that makes individuals look good.

  • Triggers: Ensuring the content is memorable and easily recalled.

  • Emotions: Evoking feelings that prompt sharing.

  • Public Visibility: Content designed to be showcased.

  • Practical Value: Useful and relevant information that encourages sharing.

  • Stories: Wrapped in engaging narratives that captivate audiences.

Influencer Marketing

Strategy Overview

  • Utilize influencers to convey brand messages effectively to their followers through social platforms.

Success Factors

  • Balancing promotional and valuable content.

  • Well-fitted influencers to the brand and audience communities.

  • Assessing potential link to product effectiveness in terms of reach.

Communication Tools Along the Customer Journey

  • Map external communication tools to customer needs at various journey stages:

    • Awareness: Tools to create initial interest.

    • Convincing: Engaging consumers to drive decision-making.

    • Purchase: Tools effective at the point of sale.

Budgeting in Communication Policy

Determining the Communication Budget

  1. Percentage Method: Allocating based on sales or profit metrics.

  2. Competition Orientation: Aligning budget with industry standards.

  3. Available Financial Resources: Flexible budgeting based on available funds.

  4. Goal Orientation: Resource allocation aligned with specific strategic goals.

Decision-Making Considerations

  • Media Allocation: Choosing media types for advertising.

  • Intermedia/Intramedia Selection: Effective allocation of budget across media channels.

Media Planning Criteria

  1. Geographic Reach: Target area covered.

  2. Quantitative Reach: Audience numbers estimated from circulation.

  3. Qualitative Reach: Alignment of content with audience demographics.

  4. Impression Quality: Impact and presentation of the medium.

  5. Contact Frequency: Estimating exposure rate within a time frame.

  6. Costs: Evaluating cost-effectiveness per thousand impressions (CPM).

Conclusion

  • The communication policy is a comprehensive strategic element within the marketing mix, vital for effectively targeting and influencing consumers through articulated and dynamic messaging plans.