Summary
Chapter
9
Marketing
Fundamental
By
Bronis
Verhage
2nd
edition
Chapter
9
–
Marketing
Communication
strategies
Contents
9.1
What
is
marketing
communication?
9.2
Communication
strategy:
target
audience
9.3
Setting
communication
objectives
9.4
Establishing
the
communication
budget
9.5
Determining
the
communication
mix
9.6
Public
relations
Learning
goals
1. Explain
what
marketing
communication
is
and
how
the
communication
process
works.
2. Apply
the
two-‐step
flow
of
communication
model
when
identifying
the
target
audience.
3. Formulate
sound
communication
objectives
using
the
AIDA
or
hierarchy-‐of-‐
effects
model.
4. Discuss
the
advantages
and
disadvantages
of
various
ways
to
set
the
promotional
budget.
5. Select
a
company’s
optimum
communication
mix
6. Identify
the
role
of
public
relations
in
a
marketing-‐driven
organisation
© Stan
Meuwissen
Zuyd
University
of
applied
science
,9.1
What
is
marketing
communication?
Promotion
or
marketing
communication
-‐
terms
often
used
interchangeably
–
refers
to
the
combined
tools
a
company
uses
to
build
and
maintain
favourable
relationships
by
informing
or
persuading
a
target
audience
to
view
the
organisation
positively,
to
accept
its
ideas
or
to
stimulate
demand
for
its
products
and
services.
Although
marketing
communication
and
promotion
are
related,
when
examined
more
closely,
the
differences
between
these
two
terms
become
apparent.
This
is
illustrated
in
the
following
figure:
Marketing
communication:
Involves
activities
or
materials
that
influence
consumers’
long-‐term
buying
behaviour.
(Sales)
promotion:
Involves
activities
or
materials
that
act
as
a
direct
stimulus,
providing
incentives
(such
as
rebates,
sweepstakes,
games,
free
samples,
premiums
and
coupons)
to
influence
consumers’
short-‐term
buying
behaviour.
The
fact
that
sales
promotion
activities
could
also
have
long-‐term
effects
and
are
sometimes
used
for
months
or
even
years,
does
not
alter
the
primary
intention
behind
the
use
of
this
instrument.
An
example
of
sales
promotion
© Stan
Meuwissen
Zuyd
University
of
applied
science
,The
communication
mix
Advertising:
Any
paid
form
on
nonpersonal
communication
about
products,
services,
ideas
or
organisations
by
an
identified
sponsor
using
the
mass
media
to
influence
the
knowledge,
attitudes
or
behaviour
of
those
who
are
part
of
a
target
market.
Publicity:
The
unpaid
communications
about
the
company,
its
products
or
services
that
are
broadcast
or
published
in
news
media,
but
for
which
media
time
or
space
has
not
been
purchased.
Public
relations:
A
primary
function
of
public
relations
is
to
promote
mutual
understanding
between
the
organisation
and
its
target
audiences.
PR
staffs
work
to
build
up
good
relationships
with
various
stakeholders,
mainly
by
creating
a
positive
image
of
the
organisation.
This
is
done
through
traditional
means
of
publicity,
but
also
through
the
increasingly
widespread
use
of
sponsorship
programmes,
investments
in
causes
and
events
to
support
the
company’s
corporate
and
marketing
objectives.
Sponsorship:
Providing
financial
or
other
types
of
support
to
an
organisation
or
individual
involved
in
a
particular
sports,
artistic
or
similar
endeavour,
in
hopes
of
acquiring
commercial
publicity,
thereby
gaining
goodwill
or
increasing
public
awareness
of
the
company’s
name
and
its
brands.
Personal
selling:
A
company
sales
representative
usually
makes
an
oral
presentation
to
a
potential
buyer
with
the
ultimate
objective
of
selling
a
product
or
service.
This
is
part
of
a
process
by
which
the
salesperson
identifies
prospective
customers,
assesses
their
needs,
presents
products
information,
gets
a
commitment
and
then
provides
follow-‐
up
to
maintain
the
relationship.
Sales
promotion:
The
purpose
of
sales
promotion,
too,
is
to
encourage
customers
to
buy
the
product,
now
rather
than
later.
This
marketing
instrument
creates
a
temporary
shift
in
the
price/value
ratio
or
relationship
of
a
product
or
service,
either
through
a
limited-‐time
price
discount
or
by
enhancing
the
value
(limited
offer:
now
20%
more
free),
intended
to
increase
sales
in
the
short
run.
Direct
marketing:
A
two-‐way
process
of
marketing
communication
through
which
companies
interact
directly
with
customers
to
exchange
information
and
sell
products.
From
the
marketers’
point
of
view,
it
involves
developing
a
direct
and
lasting
relationship
with
customers
in
order
to
create
transactions
that
help
both
parties
achieve
their
goals.
The
communication
methods
used
for
direct
marketing
often
focus
on
getting
immediate
response.
However,
newsletters,
sponsored
magazines
and
other
media
are
also
direct
marketing
communication
devices.
© Stan
Meuwissen
Zuyd
University
of
applied
science
, Integrated
communication:
The
strategic
integration
of
several
–
simultaneously
used
-‐
media
and
elements
of
the
communication
mix
that
reinforce
each
other
forming
a
comprehensive,
consistent
message
to
a
targeted
audience.
Stealth
marketing:
The
term
"stealth
marketing"
is
generally
used
to
describe
any
method
of
advertising
that
is
done
secretly.
Many
experts
believe
that
advertising
is
more
effective
if
people
aren’t
aware
that
it’s
occurring.
There
are
methods
of
stealth
marketing
that
rely
on
everything
from
movies
to
the
Internet.
Guerrilla
marketing:
Marketing
activities
in
which
an
organisation
traps
consumers
with
product-‐related
messages
or
other
promotional
content
in
unexpected
places.
Guerrilla
marketing
efforts
range
from
putting
stickers
on
tangerines
or
on
the
back
of
concert
tickets,
to
paying
people
masquerading
as
fans
to
chat
on
the
web
about
one
of
their
favourite
CDs.
Effective
guerrilla
marketing
often
leads
to
a
buzz.
Buzz:
The
authentic
word-‐of-‐mouth
generated
by
real
customers
who
talk
to
their
friends
about
a
product
or
service.
Viral
marketing:
An
alternative
to
guerrilla
marketing.
This
is
an
inexpensive
method
for
a
company
to
spread
the
word
(like
the
flu)
about
a
product
or
service
by
recruiting
customers
to
be
its
sales
agents
and
offering
them
an
incentive
to
pass
on
a
message
about
the
company
to
other
consumers.
For
example,
by
including
the
message
‘Get
your
free
email
at
Hotmail.com’
at
the
bottom
of
each
email
sent
by
Hotmail
users,
the
company
expanded
its
global
customers
base
by
millions
in
just
a
few
months,
significantly
increasing
its
advertising
revenues
in
the
process.
© Stan
Meuwissen
Zuyd
University
of
applied
science
Chapter
9
Marketing
Fundamental
By
Bronis
Verhage
2nd
edition
Chapter
9
–
Marketing
Communication
strategies
Contents
9.1
What
is
marketing
communication?
9.2
Communication
strategy:
target
audience
9.3
Setting
communication
objectives
9.4
Establishing
the
communication
budget
9.5
Determining
the
communication
mix
9.6
Public
relations
Learning
goals
1. Explain
what
marketing
communication
is
and
how
the
communication
process
works.
2. Apply
the
two-‐step
flow
of
communication
model
when
identifying
the
target
audience.
3. Formulate
sound
communication
objectives
using
the
AIDA
or
hierarchy-‐of-‐
effects
model.
4. Discuss
the
advantages
and
disadvantages
of
various
ways
to
set
the
promotional
budget.
5. Select
a
company’s
optimum
communication
mix
6. Identify
the
role
of
public
relations
in
a
marketing-‐driven
organisation
© Stan
Meuwissen
Zuyd
University
of
applied
science
,9.1
What
is
marketing
communication?
Promotion
or
marketing
communication
-‐
terms
often
used
interchangeably
–
refers
to
the
combined
tools
a
company
uses
to
build
and
maintain
favourable
relationships
by
informing
or
persuading
a
target
audience
to
view
the
organisation
positively,
to
accept
its
ideas
or
to
stimulate
demand
for
its
products
and
services.
Although
marketing
communication
and
promotion
are
related,
when
examined
more
closely,
the
differences
between
these
two
terms
become
apparent.
This
is
illustrated
in
the
following
figure:
Marketing
communication:
Involves
activities
or
materials
that
influence
consumers’
long-‐term
buying
behaviour.
(Sales)
promotion:
Involves
activities
or
materials
that
act
as
a
direct
stimulus,
providing
incentives
(such
as
rebates,
sweepstakes,
games,
free
samples,
premiums
and
coupons)
to
influence
consumers’
short-‐term
buying
behaviour.
The
fact
that
sales
promotion
activities
could
also
have
long-‐term
effects
and
are
sometimes
used
for
months
or
even
years,
does
not
alter
the
primary
intention
behind
the
use
of
this
instrument.
An
example
of
sales
promotion
© Stan
Meuwissen
Zuyd
University
of
applied
science
,The
communication
mix
Advertising:
Any
paid
form
on
nonpersonal
communication
about
products,
services,
ideas
or
organisations
by
an
identified
sponsor
using
the
mass
media
to
influence
the
knowledge,
attitudes
or
behaviour
of
those
who
are
part
of
a
target
market.
Publicity:
The
unpaid
communications
about
the
company,
its
products
or
services
that
are
broadcast
or
published
in
news
media,
but
for
which
media
time
or
space
has
not
been
purchased.
Public
relations:
A
primary
function
of
public
relations
is
to
promote
mutual
understanding
between
the
organisation
and
its
target
audiences.
PR
staffs
work
to
build
up
good
relationships
with
various
stakeholders,
mainly
by
creating
a
positive
image
of
the
organisation.
This
is
done
through
traditional
means
of
publicity,
but
also
through
the
increasingly
widespread
use
of
sponsorship
programmes,
investments
in
causes
and
events
to
support
the
company’s
corporate
and
marketing
objectives.
Sponsorship:
Providing
financial
or
other
types
of
support
to
an
organisation
or
individual
involved
in
a
particular
sports,
artistic
or
similar
endeavour,
in
hopes
of
acquiring
commercial
publicity,
thereby
gaining
goodwill
or
increasing
public
awareness
of
the
company’s
name
and
its
brands.
Personal
selling:
A
company
sales
representative
usually
makes
an
oral
presentation
to
a
potential
buyer
with
the
ultimate
objective
of
selling
a
product
or
service.
This
is
part
of
a
process
by
which
the
salesperson
identifies
prospective
customers,
assesses
their
needs,
presents
products
information,
gets
a
commitment
and
then
provides
follow-‐
up
to
maintain
the
relationship.
Sales
promotion:
The
purpose
of
sales
promotion,
too,
is
to
encourage
customers
to
buy
the
product,
now
rather
than
later.
This
marketing
instrument
creates
a
temporary
shift
in
the
price/value
ratio
or
relationship
of
a
product
or
service,
either
through
a
limited-‐time
price
discount
or
by
enhancing
the
value
(limited
offer:
now
20%
more
free),
intended
to
increase
sales
in
the
short
run.
Direct
marketing:
A
two-‐way
process
of
marketing
communication
through
which
companies
interact
directly
with
customers
to
exchange
information
and
sell
products.
From
the
marketers’
point
of
view,
it
involves
developing
a
direct
and
lasting
relationship
with
customers
in
order
to
create
transactions
that
help
both
parties
achieve
their
goals.
The
communication
methods
used
for
direct
marketing
often
focus
on
getting
immediate
response.
However,
newsletters,
sponsored
magazines
and
other
media
are
also
direct
marketing
communication
devices.
© Stan
Meuwissen
Zuyd
University
of
applied
science
, Integrated
communication:
The
strategic
integration
of
several
–
simultaneously
used
-‐
media
and
elements
of
the
communication
mix
that
reinforce
each
other
forming
a
comprehensive,
consistent
message
to
a
targeted
audience.
Stealth
marketing:
The
term
"stealth
marketing"
is
generally
used
to
describe
any
method
of
advertising
that
is
done
secretly.
Many
experts
believe
that
advertising
is
more
effective
if
people
aren’t
aware
that
it’s
occurring.
There
are
methods
of
stealth
marketing
that
rely
on
everything
from
movies
to
the
Internet.
Guerrilla
marketing:
Marketing
activities
in
which
an
organisation
traps
consumers
with
product-‐related
messages
or
other
promotional
content
in
unexpected
places.
Guerrilla
marketing
efforts
range
from
putting
stickers
on
tangerines
or
on
the
back
of
concert
tickets,
to
paying
people
masquerading
as
fans
to
chat
on
the
web
about
one
of
their
favourite
CDs.
Effective
guerrilla
marketing
often
leads
to
a
buzz.
Buzz:
The
authentic
word-‐of-‐mouth
generated
by
real
customers
who
talk
to
their
friends
about
a
product
or
service.
Viral
marketing:
An
alternative
to
guerrilla
marketing.
This
is
an
inexpensive
method
for
a
company
to
spread
the
word
(like
the
flu)
about
a
product
or
service
by
recruiting
customers
to
be
its
sales
agents
and
offering
them
an
incentive
to
pass
on
a
message
about
the
company
to
other
consumers.
For
example,
by
including
the
message
‘Get
your
free
at
Hotmail.com’
at
the
bottom
of
each
sent
by
Hotmail
users,
the
company
expanded
its
global
customers
base
by
millions
in
just
a
few
months,
significantly
increasing
its
advertising
revenues
in
the
process.
© Stan
Meuwissen
Zuyd
University
of
applied
science
