Theoretical Notes on Communication PDF

THEORETICAL NOTES ON COMMUNICATION Fundamentals of Marketing LOYOLA ANDALUCÍA UNIVERSITY Text adapted from: Martín, J. D. (2019). Management of Communication: An Integral Approach. ESIC Business & Marketing School. 1. Concept of Communication In general, communication in marketing refers to...

THEORETICAL NOTES ON COMMUNICATION Fundamentals of Marketing LOYOLA ANDALUCÍA UNIVERSITY Text adapted from: Martín, J. D. (2019). Management of Communication: An Integral Approach. ESIC Business & Marketing School. 1. Concept of Communication In general, communication in marketing refers to the sending of messages aimed at influencing attitudes and behavior. It can be understood that the sender (the company, organization, brand) sends messages to reach receivers (usually consumers, other organizations, etc.) with different purposes: To inform about new products, new sales points, activities of the organization, events they sponsor or organize, etc. To remind receivers of the value of their brand and encourage continued use of their products. To persuade them to choose the company's products over competitors or to value them more. To build stable and long-lasting relationships with target audiences. There are many places to insert content and many ways to do it. With so many available communication options, both offline and online, and so many ways to combine these options, marketing specialists must be able to make decisions to optimize the communication mix. Next, we present the different instruments that make up the communication mix based on a conceptualization that establishes their distinguishing characteristics: Advertising: A unilateral, impersonal, and controlled communication tool, through which an advertiser, via paid messages, addresses a target audience with a persuasive goal. Sales Promotion: A commercial communication tool composed of multiple techniques aimed at both the distribution network and the final consumer. It allows achieving marketing and communication objectives by adding a promotional bonus to the product or service, for a determined period, with a previously established communicative intent and a quantifiable final benefit in terms of increased sales (demand). Direct Advertising: A communication tool that enables direct interaction with the target audience, managed as individuals, with the aim of obtaining a measurable response. Public Relations: A managerial philosophy that permeates the way an organization understands and acts, translating into a communication strategy presented in a predominantly informative manner. Its goal is to achieve credibility, trust, and acceptance of an idea, product, service, organization, or individual (legal or natural person) among the various internal and external audiences of an organization. Sales Force: A personal, direct, interactive communication tool with a measurable and immediate response, whose main objective is to attempt to sell products or services by tailoring the message to the customer. Due to all the changes brought about by the digital era in integrated marketing communication, the traditional division between above the line (related to mass or conventional media) and below the line (related to unconventional media) has given way to the through the line approach ("across the line"), where each communication tool must be combined with others to maximize its strengths and minimize its weaknesses, regardless of whether it is online or offline. In this course, we will work with a through the line approach, which defines the fundamental pillars for any integrated communication strategy in the digital era as POEM, an acronym for Paid, Owned, Earned Media: paid media, owned media, and earned media. It is a diffusion model that groups the different channels a company can use to carry out a communication campaign. These three pillars encompass the various online and offline communication tools that any organization can utilize jointly to extract the full potential of the brand or product and focus efforts on building a close relationship with the consumer in the medium and long term. The organization should focus on the media it has the most direct control over: paid media and owned media, but without neglecting earned media, as the consideration of the latter can greatly influence the success of brand building and sales. 1. Paid Media Paid media are defined as third-party channels to which the company pays to communicate a specific message. Within paid media, there are all those tools that incur a cost for the organization, both in the online and offline environments, whether it is by using an advertising medium (television, Internet) or by hiring agents for the use of communication tools (direct advertising, sales promotion). Examples of paid media include AdWords campaigns, display ads, social ads, banners, pop-ups, remarketing, email marketing, and advertising spaces on television, radio, or print media. Paid media are advisable during the product introduction stage and when the target audiences are broad, because due to their paid nature, there is often a need for control in the execution of the tool, which is necessary for the communication strategy. Additionally, they manage to attract consumers due to the immediacy of communication and the substantial initial impact, guaranteeing, over a specific period, high coverage, visibility, audience numbers, visits, impressions, etc. However, when the commercial intent of the messages is identified, it can lead to distrust and a lack of credibility, resulting in lower consumer engagement. Also, due to saturation, messages are often avoided through practices like zapping on television or using ad blockers on the Internet, which reduces message recall. Paid media correspond to the most common commercial communication tools: offline/online advertising, point-of-sale advertising (POS), direct advertising, and sales promotion. Depending on how they are executed, public relations can be considered as paid media, owned media, or earned media. 1.1 Advertising 2.1.1. Printed Newspapers and Magazines According to the Audit Bureau of Circulations (OJD), this group includes newspapers, magazines, supplements, and free press. The most common formats are: Advertisements: This is the most widely used type in both printed media. These are messages made up of text and/or images (photographs or illustrations) that are inserted on a full page or part of a page, either horizontally or vertically. Common formats include banner ads, half-page ads, and in-page ads. Short or Classified Ads: These are advertising spaces grouped alphabetically or by activity in specific sections with pages reserved for this purpose. These sections can be quite varied, covering topics such as employment and training, automotive, services and business, opportunities, charity and volunteering, personal relationships, and real estate. Inserts: These are special format advertising communications (e.g., brochures) placed inside the publication and can be detached and kept. Their major advantage is their high print quality and significant geographic selectivity. They can be attached to newspapers or magazines using staples, sewn, glued, or left loose, with the latter being the most common form in newspapers. Advertorials: These ads have a format very similar to an article in the publication itself. To ensure readers' rights, publishing companies are required to explicitly indicate that it is an advertisement. 2.1.2. Radio The most common forms of radio advertising used by advertisers are as follows: Spot Ad: This is the most conventional advertising format, consisting of a short, pre-recorded commercial message lasting between 10 and 30 seconds. It is broadcast either during a program or between two consecutive programs. Since these are pre-recorded spots, advertisers can make full use of radio language, technological resources, and editing possibilities. Flash or Burst: This is a short phrase, typically lasting between 5 and 10 seconds, that usually directs the listener to a longer spot or a broader campaign. The purpose of these bursts is often to create intrigue for the listener, which is then resolved in a full spot. They also serve an important role in reinforcing brand recall. Mentions or Announcements: These occur when the host delivers a commercial message live, in an apparently spontaneous manner, with a variable duration ranging from 1 to 60 seconds during a program produced by the radio station. Program Sponsorship: In this format, a specific brand finances a segment produced by the station in exchange for its name or product being mentioned. The goal of sponsorship is to associate the brand with the characteristics of the sponsored program. Various sponsorship formats exist, such as program or section sponsorship and program bumper mentions. Commercial Guide: This involves the announcers reading a commercial message alternately. Essentially, it is an advertising message provided by the advertiser for the station to read verbatim. It does not have a traditional radio format, as its purpose is purely commercial. The price is usually based on the number of words included. Micro-Space or Micro-Program: This is a long-format advertisement, lasting between 60 and 180 seconds, integrated into the station's programming as part of its content. It provides commercial and informative content exclusively related to a brand or product. It can include interviews, promote special offers, run contests, etc. It follows a structure, form, and frequency similar to any non- commercial radio format. Bartering: This is a non-commercial radio segment produced by an advertiser and tailored to their preferences. During the broadcast of this program, only the advertiser's brand is promoted. The listener perceives it as a regular show within the radio schedule, with the unique feature that the only ads presented are for a single brand. Mobile Units: These are micro-programs, either recorded or live, that broadcast an event from the advertiser's own location. 2.1.3. Television/Cinema A) Television Spot Ad: A short video clip lasting about 20 seconds, usually inserted into commercial breaks between programs or segments of the same program. Passive TV Sponsorship: Brief pre-rolls that introduce a program or series that will follow. These are very short, typically around 10 seconds. Active TV Sponsorship: To avoid prolonging the end of a program before transitioning to another, the names or logos of sponsoring companies appear superimposed at the bottom of the screen. Telepromotion: A form of advertising where the presenter or any key figure in a program, using familiar settings or situations from the show, presents the features of a product or service for a duration longer than a typical ad. The message cannot be broadcast independently of the corresponding program. During its broadcast, a clear and legible overlay stating "advertisement" must be shown to prevent viewer confusion about its promotional nature. Internal Moments: Segments within the program where a member briefly discusses the advertiser's attributes and benefits. It is usually accompanied by a graphic banner on the screen, or even by a spot in a split-screen or lower window. Bartering: A program produced by the advertiser that includes advertising for its products and brands, broadcast by the TV channel as part of its regular programming. Product Placement: The inclusion, display, or reference to a product or brand as part of the production of a TV series or program. This does not alter the characters' roles or the storyline. Product placement is integrated into the script and can be: o Passive: The product appears visibly within the shot but does not take center stage. It is part of the set and completes the scene. o Active: The product is closely associated with the characters, who may refer to it or even handle it. o Note: Spanish regulations prohibit product placement in children's programs. Overlays: These are on-screen insertions of the brand, slogan, or any other advertising element that the viewer sees while watching a program. Sometimes, they include movement to increase visibility. Interactive Advertising: This format allows viewers to access additional information via their Smart TV remote, such as details from the spot, overlays, or the sponsored program. Split Screen: The screen is divided to display both the program and the advertisement simultaneously. During commercial spots (usually conventional ads), part of the screen continues to show the ongoing program, although without sound.  Static Advertising: Includes ads displayed at locations where sporting, musical, or cultural events are broadcast on TV. Particularly important are the billboards in football stadiums or the advertisements at car and motorcycle racing circuits. Technological advancements have led to the proliferation of digital billboards with motion and sound. Telemarketing or Infomercial: Long-form advertisements with a duration similar to a TV program, usually broadcast outside prime hours (from 2:00 AM to 6:00 AM). This format aims for a direct response from the user, displaying the product's price and a contact phone number for purchase, as these items are generally not available in stores. There are also dedicated channels exclusively for telemarketing, where direct sales content is organized into uninterrupted programs lasting at least 15 minutes. Advertorial: Short films, typically 3 to 6 minutes long, that provide descriptive and informative content about a product or company. B) Cinema Spot Ad: This is the most common format and generally originates from the advertisement created for television. Its duration typically ranges from 10 to 60 seconds, where the advertiser uses various creative elements and arguments to hold the viewer's attention. They can also be in 3D. Filmlet: These are short films or brief advertising movies designed to create a significant impact by utilizing the medium's potential through entertainment, while still promoting the product. Trailers: These are promotional spots that preview upcoming movies from the production company or films that will soon be shown in the theater. Slides: These are static photos with text and/or accompanied by a voice-over, projected in cinemas before the main movie starts. 2.1.4. Outdoor Advertising Static Billboards: Standard sizes are 3x4 meters and 3x8 meters. Types of billboards include: o Fixed billboards with paper support. o Fixed billboards painted on wood or metal. o Animated fixed billboards or illuminated signs. Digital Out of Home (DOOH): A set of supports that offer digital advertising content aimed at impacting users outside their homes. Advertising on Public Transport: Ads displayed on the exterior and interior of buses, subways, and trains.  Mobile and Semi-Mobile Vehicle Advertising: Mobile billboards transported by vehicles moving around a city. Semi-mobile when a vehicle parks and remains at specific locations in a city. Aerial Advertising: Includes banners towed by airplanes, zeppelins, and balloons. Static Advertising in Venues: Billboards or posters placed within venues with large audiences, such as airports, stations, platforms, or sports venues. Street Furniture (MUPI and OPI): o MUPI stands for "Mobiliario Urbano como Punto de Información" (Urban Furniture as an Information Point). It includes municipal urban furniture used as advertising space like bus shelters, public toilets, benches, etc. o OPI stands for "Objetivos Publicitarios Iluminados" (Illuminated Advertising Objectives), which are outdoor advertising elements used exclusively for advertising purposes. Many guerrilla marketing actions are encompassed within outdoor advertising. These are creative and surprising marketing activities, often limited by time and location, taking place in areas like shopping centers, busy streets, metro stations, building façades, or urban furniture (e.g., bus stops). The success of these actions relies on their potential for virality. The most common practices are: Ambient Advertising: Utilizes any element of the environment (e.g., sidewalks, crosswalks, streetlights) as an advertising medium. Creativity is key to its success, and sometimes it is linked to art. Street Marketing: Usually employs very visual communication and encourages public interaction. It involves not only using street elements but also creating unique props for this type of tactic. Techniques include 3D mapping projections, flash mobs, street art, spontaneous concerts, among others. 2.1.5. Paid Internet Advertising Platforms and formats for paid online advertisements: A) Website: Websites or pages that accept advertising, such as digital newspaper sites, offer various options for ad placements. The most common are: Integrated Formats: Advertising formats shown in designated spaces on a publisher's page, such as banners, skyscrapers, and buttons. Floating Formats: Ads that appear over the main browser window above the website content, giving the impression of "floating" over the page.  Expandable/Dropdown Formats: Ads that expand or drop down when the user hovers over or clicks on them. Interstitial Ads: Full-screen banners that occupy the entire browser window. They typically appear between a user's click on a link and the loading of the target content, or before the first page download. Rich Media: A term used in digital advertising to describe ads with advanced features like video, sound, or interactive elements that engage viewers and encourage interaction with the content. B) Social Media: Social networks (Facebook, Instagram, Twitter, TikTok, YouTube, LinkedIn, etc.) allow advertising, with different formats depending on the platform. These ads are commonly referred to as Social Ads. Examples include: META Ads (Facebook and Instagram): o Image-Only Ads: Clicking on the ad takes the user to the advertiser's page. o Video Ads: Similar to image ads, but with added motion, making them more eye-catching in the feed. o Carousel Ads: These showcase up to ten images or videos within a single ad, each with its own link. o Instant Experience: A full-screen ad experience that opens when a user taps the ad on a mobile device, designed to visually highlight your brand, products, or services. o Collection Ads: Display multiple products and open as an instant experience when someone interacts with them. Customers can discover, explore, and buy products from their devices in an immersive, visual format. Twitter Ads When a brand or company wants to advertise through Twitter Ads, they can choose from three main ad types: 1. Promoted Tweets: Regular tweets that an advertiser pays to promote to a wider audience. These appear in users' timelines, search results, and profiles. 2. Promoted Accounts: Ads aimed at increasing followers. The promoted account is shown to users who do not yet follow the brand, suggesting they follow it. 3. Promoted Trends: Ads that promote a hashtag or trend to appear at the top of the trending topics list, increasing visibility and engagement. LinkedIn Ads 1. Text Ads: The most basic option in LinkedIn Ads. These ads consist of a small image, a title, and a description. They can be shown in various placements across the platform.  2. Sponsored Content: These appear directly in the feed and allow companies to share content from their LinkedIn page or company profile, increasing visibility among followers and potential clients. 3. Video Ads: Dynamic video ads tailored based on users' activity and profile information. These videos appear in the LinkedIn feed. 4. Direct Message Ads: Direct messages sent to potential clients that have been pre-segmented based on LinkedIn's targeting options. TikTok Ads 1. In-Feed Ads: Ads that appear in the users' feed as they scroll through TikTok. They blend into the native content but are clearly marked as sponsored. 2. TopView Ads: Full-screen video ads that appear when the user first opens the app, maximizing visibility and engagement. 3. Shopping Ads: Ads designed to drive direct sales, often linked to TikTok Shopping features. 4. Branded Hashtag Challenge: A campaign where brands create a specific hashtag challenge to encourage user participation and content creation, increasing brand engagement and virality. 5. Branded Effect: Allows brands to create customized effects, such as stickers, filters, or augmented reality (AR) effects. These branded effects can be used by TikTok users, enhancing brand visibility and engagement. YouTube Ads 1. Skippable In-Stream Ads: Video ads that play before, during, or after another video. They can be of any length, but viewers can skip them after 5 seconds. 2. Non-Skippable In-Stream Ads: These ads have a maximum duration of 15 seconds and play before, during, or after another video. Users cannot skip these ads. 3. In-Feed Video Ads: Thumbnail video ads that promote video content in places where users discover videos, such as YouTube search results, next to related videos, or on the mobile YouTube homepage. 4. Bumper Ads: Short video ads of up to 6 seconds in length. They play before, during, or after another video, and users cannot skip them. Paid Collaborations with Influencers C) Search Engine Marketing (SEM) Search Campaigns: Shows ads when users search for products or services offered by a company. The first and last results typically appear on the first page of search results.  Shopping Campaigns: Ads in a carousel format that appear when users search for a related keyword. Map Ads: Ads displayed on maps when users search for locations or businesses. Play Store Ads: Ads shown in the Play Store for relevant apps based on user searches. D) On-Demand TV Advertising 2.1.6. Point of Sale Advertising Display Units: Shelving units of different shapes that hold products and their advertising. They are placed at the entrance or exit of establishments. Stoppers: Elements that protrude from shelves or at the beginning of aisles. Posters: Located on walls, display cases, or suspended from the ceiling. Vending Machines: Product dispensers or refrigerators that contain advertising panels. Sound Communication: Advertisements about promotions, either recorded or continuously broadcast by a person. Audiovisual Projections: Videos with explanations on how to use a nearby product. Hostesses and Counters: Sometimes, a counter and/or person are hired at the point of sale to show the product and provide information about it. 2.1.7. Paid Direct Advertising This section includes actions that require hiring external channels, such as telemarketing companies, distribution of advertising, or paying for a stand. Telemarketing: Involves initiating contact with a potential customer by phone and closing the sale through the same medium. This type of direct advertising is very effective when the product or service doesn't require the user to see it. Door-to-Door Distribution: Distribution of advertising materials to households. Hand Delivery of Advertising Materials: Items such as brochures, small promotional gifts, etc., handed out in public spaces (mainly on the street). Windshield Advertising: Placing advertising on cars or motorcycles. Attendance at Fairs and Exhibitions 2.2. Paid Public Relations Sponsorship: A marketing strategy in which an organization (sponsor) commits to providing financial support to a third party (sponsee) in exchange for having its brand or product presented. Sponsorship can take many forms, but generally, it refers to financial or other types of support provided to a person or entity for advertising or tax purposes to help organize sports, cultural, or social events, etc. The goal of sponsorship is for the sponsor's brand to be seen and recognized by  the target audience, associating it with an activity or person that embodies values or qualities that attract customers. Event Organization Outside the Company 3. Own Media Own media refers to all official channels that belong to the brand/company, both digital and offline, directly controlled by the organization, and created to interact with customers, users, or other stakeholders. Its primary objective is to increase brand presence and create platforms that strengthen relationships with consumers in the medium and long term. Interaction with the brand turns users into potential customers, and even into clients and brand advocates, generating earned media that helps achieve the organization's communication goals. The initial impact of communications through own media is small; however, if engagement increases in relation to paid media, consumer recall and brand recommendation grow, as consumers themselves seek out, inform themselves, and gain trust in the brand. 3.1. Own Channels on the Internet Corporate website Microsites Blogs Official social media accounts Digital catalogs Mobile Apps Electronic loyalty cards 3.2 Direct Advertising Advertising Email: This technique involves the mass sending of emails to a contact list to encourage a response from the recipients. It usually includes a button or link, called a Call to Action (CTA), which directs you to the advertiser's website. Mobile Advertising Messages: These are mainly text messages (SMS) with advertising content that reach the mobile phone and include an interactive link to the advertiser's page. They can also be multimedia messages (MMS) or messages received via Bluetooth. Postal Advertising Mail: This involves sending sales letters, brochures, catalogs, or product samples to potential customers via personalized postal mail, with the additional feature of including an "order form" so that the interested person can make a purchase, either by sending the form by mail, making a phone call, or visiting a website to place the order. 3.3 Sales Force Customer service centers and individuals involved in sales activities are part of the Own Media. This also includes virtual assistants (such as chatbots) that appear on some company websites. 3.4 Unpaid Public Relations Facility tour programs for groups or open house days Contests and prizes not linked to a purchase Greetings and small gifts on special occasions for being customers Organizing events within the company for groups of people with shared interests Corporate reports and other documents Internal news magazines or newspapers 3.5 Advertising at Own Points of Sale LED screens with advertising projections Displays Sound communication Signage Bagging (bags) Brochures 3.6 Promotion Promotions can be internal actions, but they could involve a paid component if they require payment to intermediaries for their execution. A): TYPES INCENTIVES Examples In newspapers and magazines Sent by direct marketing Flyer distribution Price based Discount coupon Hand outs Adjoined to receipt Included in another products packaging Included in the product More product at the same price (2x1l, 3x2l) Extra product Extra Give inamount within the point the packaging of sale Product based Given outside the point of sale Samples Given with other products Superior product Improved product Similar added services Gifts Immediate handout Promotional cofinanced gifts Postponed delivery Complimentary products Gift or prize based Cross promotions Contests, draws and games Loyalty-based promotional activities Based on social causes Part of the money paid goes towards a social cause B) Promotional Actions Directed at Intermediaries The main promotional actions with the channel are as follows: Discounts: The manufacturer negotiates economic terms with the intermediary (discounts on price lists, based on purchase volume or tiered discounts, or cross- selling combinations with discounts on a product in a bundle, etc.) for a specific promotional period, usually not exceeding three months. Limited-time Economic or Financial Concessions: These include incentives such as stock allowances at the start of a promotion or for introducing new product references into the market, providing goods on consignment, extending payment deadlines, and incentives for quotas and/or results. Merchandising Material and Point-of-Sale Support: Promotional incentives can range from oversized novelty items to signage, displays, shelves, or dispensers, which remain the property of the retailer once the promotion ends. For example, to introduce a soft drink into the hospitality channel, a distributor might provide a fridge decorated with the corporate image, which not only promotes the product but also serves a useful purpose for the business. Point-of-Sale Animation: Promotional actions like sending a team of professional window dressers to specially decorate stores, conducting demonstrations or tastings at the point of sale, or installing an attraction island at the establishment, such as the temporary Heineken terrace in a nightclub.  Economic Agreements for Advertising Collaboration in Cooperative or Joint Campaigns: It is common for promotional catalogs and brochures at the point of sale to be produced with the contributions of manufacturers. Training Programs for the Distribution Channel: These programs are highly valued by intermediaries and commercial prescribers, as they provide positive results by reinforcing the qualities of the brand and/or product. 4. Earned Media Earned media refers to media channels that are not owned by the brand but have been incorporated into the communication through the actions of customers or followers on social media. When we talk about earned media, we refer to those that are obtained thanks to the behavior of the brand, meaning those that result from efforts and resources dedicated to owned and paid media in both virtual and physical environments. Therefore, these are media that do not involve direct payment and are not owned by the brand, although they help achieve its objectives. Earned media is closely related to best practices in public relations, communication, and marketing. The generic objective is that with the investment and development of owned and paid media, users or customers are motivated to become a channel for the brand, creating content, communicating, and sharing it without incurring additional costs. This leads to a reduction in investment in paid media and maximizes the impact on social networks, thanks to the boost in credibility and trust, as the messages come from an external source. The increase in brand awareness and reputation, along with the potential for virality in earned media, creates a scalable benefit that positively affects sales, visits, and other conversion objectives, all in a free and organic way. This grants the organization additional benefits beyond what is generated by its own or paid resources. However, since earned media is external to the company, the messages are uncontrollable and may not be part of the communication strategy’s anticipated management. Sometimes, they can even become counterproductive or harmful if they are misinterpreted or used by third parties to damage the brand’s image. 4.1. Internet Reviews: Product reviews made by users. Influencer posts: Influencers posting about the company or its products (when not paid). Viral content through electronic word of mouth (eWOM). Multimedia content from the company shared on user accounts (videos, photos, etc.). Links shared by users to brand content. Actions on social media such as likes, retweets, shares, etc.  Shared hashtags. Testimonials from satisfied customers. 4.2 Public Relations The goal is especially for the media to pick up on news about the company or its brands/products without paying for it. Publicity: A media outlet talks about the company without the company controlling the message that reaches users in a "news" format, which can be more credible than paid actions. The issue is that the company doesn't control the message being sent, which could be either positive or negative.