marketing communication
luciaaa
wk3MCStrategystu.pdf
UTS 24736 Marketing Communications
SPRING 2019
Subject Coordinator: Dr. Valeria Noguti
Lecture Week 3
Marketing Communications Strategy
© Rustic Look Pencils by Anderson Mancini1
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Subject Structure
Foundations
Managing Marketing
Communications
Marketing Communications
Mix
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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Top 20 Advertisers Australia
2019 Financial Year Total Estimated Spend ($M)
3 https://www.adnews.com.au/news/the-top-20-advertisers- in-australia-for-2019
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Australian Advertising 2019
4https://www.adnews.com.au/news/the-top-20-advertisers-in-australia-for-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
399.26 418.28
434.04 451.14
467.58 485.17
503.67 521.38
543.71 563.02
0
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*
S pe
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g in
b ill
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U .S
. d ol
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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
11.2
10.5
8.6
8.5
7.2
0 2 4 6 8 10 12
Samsung Electronics
Procter & Gamble Co.
L'Oréal
Unilever
Nestle
Spending in billion U.S. dollars
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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
229.68
87.08
43.18 27.5 24.92
13.47 13.26 12.89 12.43 10.78 9.04 9 8.93 7.48 6.51 6.13 5.11 5.11 4.81 4 0
50
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250
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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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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
13.1%
11.9%
8%
6.4%
5.1%
5.1%
4.7%
3.5%
3.4%
3%
2.3%
1.1%
15.2%
31.7%
4.7%
8.6%
3.3%
12.9%
3%
-3.5%
0.7%
-1%
0.1%
-1.3%
6.5%
6.4%
4.5%
5.8%
8.5%
3.4%
3.8%
-7.3%
4.2%
14.2%
2.5%
0.9%
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
India
Russia
China
Australia
United States
Brazil
Wo rld wide
United Kingdom
Italy
Japan
Germa ny
Fra nce
2018 2017 2016
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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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
24.6% 31.8%
35.6% 38.5% 41.4% 43.8%
42% 38.3% 36.6%
35.4% 34.1% 33.2%12.4%
10.4% 9.1% 8% 7.1% 6.3% 6.9% 6.3% 6.3% 6.3% 6.3%
6.2% 6.6% 6.5% 6.3% 6.2% 6% 5.8% 6.9% 6.3% 5.6% 5% 4.5% 4.1% 0.5% 0.6% 0.6% 0.6% 0.6% 0.6%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
2015 2016 2017 2018 2019* 2020*
S ha
re
Digital TV Newspapers Out of home Radio Ma gazines Cinema
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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)
Automobiles
Regular Sedans
European cars
Japanese cars Korean cars American
cars
Large Medium
High-priced Medium- priced
Chevrolet Monte Carlo Ford Focus
Chrysler Sebring
Low-priced Small
SUVs and other truck- like vehicles
18 (Rossiter & Percy 2018)
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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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