Marketing Communication PDF

So now, we'll delve into this week's topic, first covering the nature of marketing communication. Marketing communication, or better known as MACOM, has actually become one of the most exciting and stimulating areas in modern marketing. Its popularity as an area of study has basically It has grown c...

So now, we'll delve into this week's topic, first covering the nature of marketing communication. Marketing communication, or better known as MACOM, has actually become one of the most exciting and stimulating areas in modern marketing. Its popularity as an area of study has basically It has grown consistently over the years and has seen a dramatic change in the 21st century. And this is primarily due to the emergence of technology with innovations, rise of mobile, and the internet playing a key role in this change. In fact, interactive and digital is leading the way in Marcom campaigns, and this is a far cry when the message could reach 75 to 80% of audiences just by going into traditional advertising. Since then, media has fragmented, mutated, and diversified, and now Marcom is being used by all brands as it remains a critical component of effective marketing. Before we delve into the concept of marketing communication, let's take a step back to discuss the terms marketing and communication. First of And marketing. Many people think of marketing only as selling and advertising. This is actually only the tip of the marketing iceberg, as many other facets have been integrated in this concept over the years. Jt, a preeminent scholar and author, refers to marketing consisting of marketing mix strategies that organizations develop to transfer value to their customers. Then Smith is the summer's definition, the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Kottler, who is considered in many circles as the father of marketing, defines it as a social and managerial process by which individuals and groups obtain what they want through creating and exchanging products and value with others. So all these authors demarking both as a process and a philosophy, and within this, the concept of exchange and customer value remains at its core. Smith here refers to more simple way to explain marketing and says it's about the business of moving goods from the producer to the consumer. So in essence, marketing is about activities companies undertake to bring their products or services to the market. This can be further illustrated in this chart here, as we're basically talking about the marketing concept, beginning with needs, wants, and demand, going right through the circle here, and we'll cover each of these areas. So needs of basic human requirements. So for example, food, water, and shelter, things which are essential to For wants, everything else are wants, which are not necessarily for human survival. But more so, things we desire or wish to have. So items like soft drinks, watches, laptops, these ones are shaped by culture, society, and individual personality. So for demand, put it simply, if a customer is willing and able to buy a need or a want, it means they have a demand for it. We then have products, which is anything that can be offered to market to satisfy a need or want. And this is not limited to physical objects. Services also fall in this category. Value, satisfaction and quality, which is what the customer gains owning and using your product. For exchange, exchange is the act of obtaining a desired object by offering something in return. And as mentioned earlier, the concept of exchange is a core concept of marketing itself. Transactions. Transactions is a trade between two parties, while relationships are long-term commitments, as marketeers build with value customers. And then finally, there's markets, which consists of the environment or the set of actual and potential buyers of a product. In further illustrating marketing concept, let's review this video. How would you explain marketing? The first few The networks that usually pop into a person's head are marketing equals sales. Marketing is not just personal selling or even just advertising. Most people define marketing in a very limited way. Marketing includes activities such as public relations, sales promotion, advertising, social media, pricing, distribution, and many other functions. Companies have increased their marketing budgets dramatically. For example, it is estimated that companies spend over $14 billion annually on marketing to just kids. This is an increase of over 2. 5 times more than they were spending in 1992. The cumulative function of marketing is to communicate, deliver, and create value to the consumer. In addition, companies must take into consideration their employees, stakeholders, and society. The most successful companies engage in very consumer-oriented marketing. They spend enormous It's a diverse amount of time, money, and resources examining the everyday lives of their customers, and then create products to fill a need. Examples of companies that are known for creative leading edge marketing are Disney, Pepsi, Apple, and Procter & Gamble. Marketing is made up of four elements: product, place, promotion, and price. The elements must be used in a cohesive plan to effectively target the consumer. A product can be either a physical product or a service. Place is where the product is purchased. Price is the amount the consumer pays for the product. The promotion consists of the communication tools used to effectively get the company's message out. The official definition of marketing is it is a philosophy that's main focus is providing customer satisfaction. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Also included in the definition are all the activities that help businesses reach their target market effectively. The ultimate outcome for marketing is when a successful-That was a basic video that illustrates the concept of marketing. Let's now talk about communication. The term communication has evolved from the the noun communis, which means common or sharing. And similarly, communicare is a Latin verb which means make something common. So if anything, it's a process that can be shared meaning as highlighted here by Chiti, or as Kala puts it, it's a process by which information is exchanged between individuals through a common system of symbols, signs, or behavior. So simply put it, communication is And this is a process where exchange of information occurs. So what then is marketing communication, or very known as MACOM? Some of us here refer to MACOM as a collective term for all the various types of plan messages used to build a brand, while Burnet and Moriarty allude to it as a process of effectively communicating product information or ideas to the target audience. So all this basically eventually morphs into conversational marketing, where consumers are not passive empty vessels, but connectors. Plus, it also allows them to enter interdependent relationships, which is functional and has symbolic meaning. Within this, within marketing communication lies, the marketing communication mix, or better known as the MACOM mix. So the various elements of communication delivery are often referred to as the MACOM mix. The major MACOM tools are shown here, and these are characteristics such as advertising, digital marketing, point of purchase, direct marketing, sales promotion, personal selling, sponsorships, and marketing public relations. These MACOM tools will be discussed in future lectures, and will This is also a point of discussion in our tutorials. Plus the fact that your consumers means that you should be able to relate to many of the marketing communication tools as you've been at the receiving end of their messages for many, many years. So how has marketing communication practices changed or evolved over the years? Firstly, there's been a shift in marketing expenditure from mass media advertising. So what this means has been a move away from mass and traditional media in terms of expenditure, and this has resulted in the convergence of media and technology, leading to other means of communication channels being used. This has naturally led to the need to redefine the role of traditional media. And the reason The big thing is that traditional media is seen as a passive one-way communication tool, while non-traditional media allows customers to be in control of receiving and interpreting brand messages. What this has done has resulted in the rise of digital marketing, with the increasing use of mobile digital communication and social media seeing an exponential growth in the past years. There's a growth in reliance on databases and focused communication methods. Here, the use of big data allows targeting of messages to selected consumer segments, as this not only is a more focused approach, but allows for greater accountability. The use of big data includes direct mail, opt-in, or permission, emails, special interests, magazines, pay TV, events, et cetera, which are all less expensive and more effective. Here, we're also talking about real-time, intuitive digital platforms and best-spot communications. There's also an increased demand on communications suppliers. In the past, ad agencies, sales promotion organizations, PR companies all traditionally offered specialized services, but the demand now is to offer a more diversified range of services And it still is happening and will continue to happen over the years to come. So for example, in the US alone, there are about 25,000 national, regional, and local agencies available for access at advertising age website. In Australia, there are over 1,000 agency enterprises, and these agencies all offer specialized services. In today's climate and context, clients and brands are demanding that more services are provided. So agencies have been reengineering their business models to meet and deliver on these demands. And within this, the new media landscape is taken into consideration as it impacts how brand equity is built with consumers. Other changes in mark on practices is in the on accountability and ROI or return of investment. As briefly mentioned earlier, there's now a greater demand for accountability and returns, and this is key in determining the success of a campaign. Next, there is the changing consumer work lifestyle, which refers to remote employment implications, or what is sometimes referred to as nomadic work practices. What this basically means is that there are greater challenges today in reaching consumers as they're now located in multiple locations. There's also the imminent rise of on demand everything. What this means is that product and service consumption will never be the same again, as we're referring to end-to-end customer experience, valuable consumer insights, and social media touchpoints, all being part of this on demand consumer We're now going to quickly review the marketing communication process. So where this process is concerned, there are marketing communication decisions which are basically used as a guiding structure, and this chart is a very basic overview of where the key components of the objectives, positioning, target, and the budget is used as part of the process. So in simple terms, it's about what the marketing communication campaign is to accomplish, what is it that you're going to say and who to reach, and how much needs to be spent. So where certain objectives are concerned, it must be noted that communication decisions reflect brand's goals, and So these goals should be mapped out from the onset. So the key questions which need to be addressed are things like what information has to be disseminated through this campaign, and/or what action does the campaign want to induce, what we want our marketing communication to say about our brand in order to motivate the target audience to take whatever action is required. The question answered here then allows the brand to be focused and streamlined to ensure that the next steps of the marketing process can be implemented. Whether the objectives that are being constructed are short or long term, one of the key indicators and instructions is it should be in many ways expressed from a quantitative standpoint. So communication objectives are basically derived from communication effects, and this would need to revolve around areas such as perception, cognition, emotional, association, frustration, and behavior. So key is in terms of making sure that these sorts of communication effects and not marketing effects play a role in determining objectives. We quickly move on to positioning and targeting. Where positioning is concerned, A brand's position is directly related to the target segment as this represents the brand's meaning and shows off its uniqueness.