marketing communication
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MCLecturewk3MCStrategystu.pptxLecture Week 3 Marketing Communications Strategy
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UTS 24736 Marketing Communications
SPRING 2019
Subject Coordinator: Dr. Valeria Noguti
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Subject Structure
MC Strategy
Integrated MC and Budgeting
Creative Strategy
Media Strategy
Evaluation and Metrics
Introduction to MC
MC Industry
Buyers
#1: Advertising, sponsorship
#2: Direct marketing, personal selling, sale promotion, field and experiential marketing, placement, exhibitions, packaging, licensing
#3: Digital, PR
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Foundations
Managing Marketing Communications
Marketing Communications Mix
Top 20 Advertisers Australia 2019 Financial Year Total Estimated Spend ($M)
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https://www.adnews.com.au/news/the-top-20-advertisers-in-australia-for-2019
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Australian Advertising 2019
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Global advertising spending from 2010 to 2019 (in billion U.S. dollars)
Global advertising spending 2010-2019
Note: Worldwide; 2010 to 2018
Further information regarding this statistic can be found on page 8.
Source(s): GroupM; ID 236943
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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 399.26 418.28 434.04 451.14 467.58 485.17 503.67 521.38 543.71 563.02
Spending in billion U.S. dollars
Largest global advertisers in 2017, by ad spending (in billion U.S. dollars)
Largest global advertisers 2017
Note: 2017
Further information regarding this statistic can be found on page 8.
Source(s): Advertising Age; OnlineMarketing.de; ID 286448
Spending in billion U.S. dollars
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Samsung Electronics Procter & Gamble Co. L'Oréal Unilever Nestle 11.2 10.5 8.6 8.5 7.2
Advertising spending in the world's largest ad markets in 2018 (in billion U.S. dollars)
Advertising spending in the world's largest ad markets 2018
Note: Worldwide; June 2019; estimates; current prices
Further information regarding this statistic can be found on page 8.
Source(s): Zenith; ID 273736
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Population:
Canada => ~ 37 million
Australia => ~ 24.5 million
US => ~ 327 million
Sweden => ~ 10 million
China => ~ 1400 million
Ad $ per capita:
$292
$506
$703
$400
$62
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United States China Japan United Kingdom Germany Brazil France South Korea Australia Canada Italy Indonesia India Russia Spain Switzerland Mexico Belgium Netherlands Sweden 229.68 87.08 43.18 27.5 24.92 13.47 13.26 12.89 12.43 10.78 9.0399999999999991 9 8.93 7.48 6.51 6.13 5.1100000000000003 5.1100000000000003 4.8099999999999996 4
Spending in billion U.S. dollars
Year-over-year change of advertising expenditure in selected countries from 2016 to 2018
Ad spend growth 2016-2018, by country
Note: Worldwide; January 2018; forecast; current prices; worldwide data based on 12 major markets
Further information regarding this statistic can be found on page 8.
Source(s): WARC; Website (adobomagazine.com); ID 276805
Year-over-year change
Russia:
16: $6.6 bi
17: $8.7 bi
18: $9.7 bi
World Cup…
UK:
15: $28.6 bi
16: $26.5 bi
17: $25.6 bi
18: $26.5 bi
Brexit ref 2016
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India Russia China Australia United States Brazil Worldwide United Kingdom Italy Japan Germany France 0.13100000000000001 0.11899999999999999 0.08 6.4000000000000001E-2 5.0999999999999997E-2 5.0999999999999997E-2 4.7E-2 3.5000000000000003E-2 3.4000000000000002E-2 0.03 2.3E-2 1.0999999999999999E-2 2017
India Russia China Australia United States Brazil Worldwide United Kingdom Italy Japan Germany France 0.152 0.317 4.7E-2 8.5999999999999993E-2 3.3000000000000002E-2 0.129 0.03 -3.5000000000000003E-2 7.0000000000000001E-3 -0.01 1E-3 -1.2999999999999999E-2 2016
India Russia China Australia United States Brazil Worldwide United Kingdom Italy Japan Germany France 6.5000000000000002E-2 6.4000000000000001E-2 4.4999999999999998E-2 5.8000000000000003E-2 8.5000000000000006E-2 3.4000000000000002E-2 3.7999999999999999E-2 -7.2999999999999995E-2 4.2000000000000003E-2 0.14199999999999999 2.5000000000000001E-2 8.9999999999999993E-3
Distribution of global advertising expenditure from 2015 to 2020, by media
Global advertising expenditure 2015-2020, by media
Note: Worldwide; 2015 to 2018
Further information regarding this statistic can be found on page 8.
Source(s): Dentsu Aegis Network; ID 245440
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2015 2016 2017 2018 2019* 2020* 0.246 0.318 0.35599999999999998 0.38500000000000001 0.41399999999999998 0.438 TV
2015 2016 2017 2018 20 19* 2020* 0.42 0.38300000000000001 0.36599999999999999 0.35399999999999998 0.34100000000000003 0.33200000000000002 Newspapers
2015 2016 2017 2018 2019* 2020* 0.124 0.104 9.0999999999999998E-2 0.08 7.0999999999999994E-2 6.3E-2 Out of home
2015 2016 2017 2018 2019* 2020* 6.9000000000000006E-2 6.3E-2 6.3E-2 6.3E-2 6.3E-2 6.2E-2 Radio
2015 2016 2017 2018 2019* 2020* 6.6000000000000003E-2 6.5000000000000002E-2 6.3E-2 6.2E-2 0.06 5.8000000000000003E-2 Magazines
2015 2016 2017 2018 2019* 2020* 6.9000000000000006E-2 6.3E-2 5.6000000000000001E-2 0.05 4.4999999999999998E-2 4.1000000000000002E-2 Cinema
2015 2016 2017 2018 2019* 2020* 5.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3
Share
Table 5.1 An audience interpretation of marketing communications strategy
Target x Communications Goal
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Figure 5.3 The direction of a marketing communications pull strategy Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 4.2, p. 99.
Pull Strategies
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Figure 5.4 The direction of a marketing communications push strategy
Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 4.3, p. 102.
Push Strategies
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How do Marketing Communications (Marcoms) contribute to profit?
Profit = (Price – Cost) x Unit Sales
Which can you influence through Marcoms?
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Sales & Market Share Objectives
Can sales and market share be used interchangeably?
Market share is relative to competitors:
In growing markets:
↑ Sales => Market Share: no change
↑ Sales => Market Share ↓ (competitors’ sales are gr
In declining markets:
↓ Sales => Market Share: no change
↓ Sales => Market Share ↑ (e.g., competitors are leaving the market)
Sales always important objective!
If market share is used as an objective, the competitive landscape needs to be identified
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Marketing Communications Objectives
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Marcoms need to align with corporate objectives;
Some campaigns designed to promote corporate objectives
Primary objectives
Intermediary objectives, conducive to the ultimate objectives
For long term, sustainable achievement of primary objectives, behavioural objectives are important: e.g., loyalty
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Awareness as an Objective
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Example: promote important/new attribute
Novelty, POS activity
High involvement ads
(faster effect);
Classical conditioning (may be slower to build effect)
Example: radio which is cheaper than tv, support WOM
Provide a lot of information such as a good website, allow experimentation, invest in salespeople, etc
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SMART Objectives
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Category Positioning (mental partitioning)
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(Rossiter & Percy 2018)
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Automobiles
Regular Sedans
European
cars
Large
Medium
SUVs and other truck-like vehicles
Japanese cars
Korean cars
American
cars
Small
High-priced
Medium-priced
Chevrolet Monte Carlo
Ford Focus
Chrysler Sebring
Low-priced
Category Positioning (mental partitioning)
Defining your market
What is the true market that your brand competes in?
If consumer wants to satisfy thirst: what options are available?
Build a category positioning
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Perceptual Mapping
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Positioning Strategies
Product features: Aldi “Good Different”
Price/quality: Private label products (e.g., Woolworths Select = good value)
Use: After Eight chocolate
Product class dissociation: Dove is “not soap”
User: Lynx/Axe (from teen repositioned to uni guy “Find your magic”)
Competitor: Avis ”we are number 2, we try harder”
Benefit: Wash and Go shampoo
Heritage or cultural symbol: Patek Philippe watches
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The Economist
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Problem: getting people to subscribe at full price
Research: problem caused by targeting wrong consumers
Readers: loyal, open-minded and comfortable when challenged
Non-readers: lack of awareness or misconception about content
(what do you think about the publication?)
Task: encourage new audiences to re-evaluate their understanding of the brand, ie.e, get the right target market (open-minded people, comfortable when challenged, “globally curious”) to do this re-evaluation so that they would subscribe; need to screen out the wrong target (someone not likely to read it)
Objective:
Main: sell x number of subscriptions, ROI of x%, increase retention rate to 25%
Intermediary:
increase by x% the number of people in the UK that find the brand interesting
decrease by x% the number of people in the UK that find the brand boring and dry
Budget: only £10,000
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Questions:
What is the positioning strategy used?
What is the buyer group the campaign is targeting?
What are the direct competitors (partitioning)?
How is the campaign contributing to profit? Price, cost, unit sales?
Why did it reach the results it did?
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Wrapping up
Marketing Communications Strategy discussed
Next week: Integrated Marketing Communications & Budgeting
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