1. Selected marketing terms 2. Marketing communication 3. Objectives of MC 4. Marketing communication process 5. The elements of MCM 6. MC offline and online I. GENERAL MARKETING COMMUNICATION CONCEPT  B2C – business to customer (consumer market) X  B2B – business to business (industrial market) • C2C – customer to customer • C2G – customer to government • B2G – business to government • B2E – business to employee • G2C – government to customer 1. SELECTED MARKETING TERMS SELECTED MARKETING TERMS  Marketing  Customer versus consumer  Marketing mix x marketing communication mix  … MARKETING MIX („4PS“) X COMMUNICATION MIX Product Price Place Promotion (Marketing Communication)Marketing mix Marketing Communication mix „4Ps“  Product – products are solutions to customer´s needs. The provider needs to make various product decisions, including functionality, range offered, brand names, packaging, service and support. It is the critical element in the mix.  Price – various price-setting models exist, with decisions relating to factors like market penetration, credit terms, discount policy and cost of provision.  Place – it is about making the product available. Some form of structured network is normally required – a distribution channel.  Promotion – promotion aims to make a target market aware of a product offering, develop a long-term relationship with the customer and create and stimulate demand. „7Ps“ – extended marketing mix (in the case if the product = service)  „4Ps“  Physical evidence – customers look for reassurance relating to required benefits and quality (ambience, fixtures and fittings, appearance/attitude of staff, etc.) as an indicator of likely satisfaction.  Process – the method by which the services are provided.  People – people are an essential element of the marketing mix. Staff recruitment, training, development and empowerment to deal with problems become a critical element in ensuring a positive customer experience. This table indicates approximate relative weights of „4Ps“ in customer decision-making. Product Price Place Marketing communication B2B B2C WHAT IS MARKETING COMMUNICATION ABOUT??? 2. MARKETING COMMUNICATION MARKETING COMMUNICATION  MC involves answering the following questions:  who is the target audience?  what should be communicated and?  how should it be communicated? MARKETING COMMUNICATION „Marketing smog“ – a negative aspect of contemporary MC! MARKETING COMMUNICATION  Larger sense: all planned and unplanned communication in all contacts between company and its present and potential customers (the product package, brand perception, price, advertising, staff behaviour, tradition of company, car fleet, outlets, offices etc.)  Integrated Marketing Communication  Narrow sense: marketing communication mix 3. THE GENERAL OBJECTIVES OF MC  To provide information.  To create demand.  To support the product differentiation (positioning).  To point out the product value and benefit for customers. CHARACTERICS OF MC OBJECTIVES  SMART  In accordance with overall corporate and marketing goals.  Associated with current and desired position of the product and the brand.  Quantifiable to be measured.  Formulated with regard to the views of implementers.  Understandable and acceptable.  Accepted as compulsory.  Motivating.  Divided into several sectional objectives if necessary. THREE STREAMS OF MC OBJECTIVES SALES STREAM • Sales volume • Sales value • ROI • Market share • Profitability COMMUNICATION STREAM • Awareness • Comprehension • Perception • Attitudes CORPORATE STREAM • Performance • Image • Reputation • Preferences 4. MARKETING COMMUNICATION PROCESS  The communication process - an interactive dialogue between the company and its customers in the stage before the sale, during the sale, during consumption and after the consumption of goods and services.  The general scheme of the communication process (H. D. Lasswell - Power and Personality, 1948):  Who says What to Whom through Which channel with What effect? CYBERNETIC MODEL OF THE COMMUNICATION PROCESS MESSAGE MEDIA MESSAGE RECEIVERSENDER Encoding Decoding Decoding Encoding Feedback NOICE THE MEANING OF SYMBOLS IN VARIOUS CULTURES Blue colour Girls´ colour in the Netherlands. The yellow flower The symbol of death in Mexico, symbol of infidelity in France. White lily The symbol of death in England, the symbol of purity in the central Europe. Number seven Bad luck in Singapur, Ghana and Kenya, happy number in many countries. Owl The symbol of bad fate in India, the symbol of cleverness in many European countries. Triangle Bad symbol in Hongkong, good in Columbia.  Opinion leaders (viral marketing, buzz marketing, Word-of-Mouth) – individuals who were predisposed to receiving information and then reprocessing it to influence others. Personal influence is important and can enrich the communication process. WoM communication is interactive and bidirectional.  Negative WOM spreads faster than positive!!! PERSONAL INFLUENCERS IN MARKETING COMMUNICATION PROCESS  Opinion formers – individuals who are able to exert personal influence because of their authority, education or status associated with the object of the communication process. The are acknowledged and sought out by others to provide information and advice, but this is because of the formal expertise that opinion formers are adjudged to have (film critics, doctors, bankers, …).  Opinion followers – the vast majority of consumers. The message they receive via the mass media are tempered by the opinions of the two groups of personal influencers in text above. PERSONAL INFLUENCERS IN MARKETING COMMUNICATION PROCESS  Advertising  Sales promotion  Personal selling  Public relations (P.R.)  Direct marketing  Sponsorship  On-line marketing communication 5. ELEMENTS OF MCM THE FACTORS INFLUENCING THE ELEMENTS OF MCM  Product type (ordinary, special, luxury, long-term or short-term consumption).  Market character (B2C x B2B).  Product life cycle (introduction, growth, saturation, decline).  Company market position and its financial resources (large x small company).  Marketing communication stratégy. MARKETING COMMUNICATION MIX Element Explanation Advertising A paid insertion of a message in a medium. It is aimed at the mass market. Sales promotion Activity designed to give a temporary boost to sales, such as money-off coupons, free samples, two-for-the priceof one promotions, free gifts, piggybacking with another product, lottery, multi-packing, events, roadshow etc. Personal selling Face-to-face communications between buyers and sellers designed to ascertain and meet customer´s needs on a one-toone basis. (non-verbal communication!) Public relations The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics (press conference, annual reports, open door day, social projects, ecological business, press release, human relations etc.) Direct marketing An interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. It is aimed at the individuals (direct mail, telephone marketing, commercial e-mails etc.) Sponsorship Funding of cultural events, sporting events etc. In exchange for publicity and prestige. On-line marketing communication Web company presentation, social networks etc. ATL x BTL x TTL  ATL – above the line (classical media)  BTL – below the line (unconventional media)  TTL – ATL + BTL (the most frequent use in practice) BTL ATL IMC PUBLIC RELATIONS DIRECT MARKETING SALES PROMOTION ADVERTISEMENT •TV •Press •Radio •Outdoor •Indoor •Internet •Cinema SPONSORSHIP, ON-LINE MC INTEGRATED MARKETING COMMUNICATIONS (IMC)  The strategic analysis, choice implementation and control of all elements of marketing communication which efficiently, economically and effectively influence transactions between an organization and its existing and potential customers.  IMC really comprises all aspects and any interaction points of planned or unplanned communication between the brand, service, or corporation and the target audience and is affected by both inside and outside influences  synergetic effect! 6. OFF-LINE VERSUS ON-LINE MARKETING COMMUNICATION TOOLS ON-LINE Advertising Sales promotion Personal selling Public relations Direct marketing Sponzoring