Chapter 1 – Integrated Communications
Marketing = the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create and exchange value, and satisfy individual
and organisational objectives.
The instruments of the marketing mix When deciding upon which instruments to use in a situation depending on the marketing
objectives, goals, the target segments and the market position which has to be defended,
the marketer can choose between the following 4 Ps:
List price (official)
The product tool consists of three layers:
1. The core product: the unique benefit that is being marketed.
2. The tangible product: the product’s features, quality, design and packaging are ways
in which a core product can be made tangible
3. Augmented product: gives the tangible product more value and customer appeal.
The complexity of the price tool
discounts are attractive to customers, however price cuts means losing profit. The customer
gets used to discounts and will buy one price, possibly swapping to another brand. Good
marketing avoids the price tool as much as possible. By means of place or distribution, the company manages the process of bringing the product
from the production site to the customer.
Promotion or marketing communications (MC) is the most visible instrument.
Marketing Communication: All instruments by means of which the company communicates
to promote its products or services.
The communications mix Advertising
Non-personal mass communications using mass media, the content of which is determined
and paid for by a clearly identified sender Brand activation
The integration of all available communications means in a creative platform in order to
activate consumers by stimulating interest, initiating trial and eventually securing consumer
sales-stimulating campaigns (price cuts, coupons, free samples)
Communication in the stores; displays, advertising, store layout Online communications
Interacting with stakeholders via the internet/mobile devices Direct marketing communications
A proposal and direct way to communicate with customers. Personalised brochures, direct
mailings, feedback requests… Sponsorship
Sponsor provides funds, goods, service, know-how and the sponsored organisation helps
with communications objectives such as building brand awareness or corporate image. Public relations
Communications a company instigates with its stakeholders Personal communications
Message transfer directed to individually addressed people Mass communications
Message transfer directed to a number of receivers who cannot be identified
Image or theme communications (above-the-line)
Advertiser tries to tell the target group something about the brand or products
aka. ‘above-the-line communications’. Refers to the fee an advertising agency used to earn.
All above-the-line promotional tools used to lead to a 15% commission fee on media space
purchased. Action communications (below-the-line)
Where the 15% doesn’t apply
Above or below the line terminology has lost importance, as most agencies now have
a fixed or hourly fee.
Personal -vs- Mass communication
Reach of big audience
Influence on individual
Speed of feedback