Table Of Content

Marketing Communications 2006–2007 Marketing Communications 2006–2007 Graham Hughes and Chris Fill AMSTERDAM(cid:2)BOSTON(cid:2)HEIDELBERG(cid:2)LONDON(cid:2)NEWYORK(cid:2)OXFORD PARIS(cid:2)SANDIEGO(cid:2)SANFRANCISCO(cid:2)SINGAPORE(cid:2)SYDNEY(cid:2)TOKYO Butterworth-HeinemannisanimprintofElsevier Butterworth-HeinemannisanimprintofElsevier LinacreHouse,JordanHill,OxfordOX28DP,UK 30CorporateDrive,Suite400,Burlington,MA01803,USA Firstedition2006 Copyrightª2006,ElsevierLtd.Allrightsreserved Nopartofthispublicationmaybereproduced,storedinaretrievalsystem ortransmittedinanyformorbyanymeanselectronic,mechanical, photocopying,recordingorotherwisewithoutthepriorwrittenpermission ofthepublisher. PermissionsmaybesoughtdirectlyfromElsevier’sScienceandTechnologyRights DepartmentinOxford,UK:phone(+44)(0)1865843830;fax:(+44)(0)1865853333; e-mail:permissions@elsevier.com.Alternativelyyoucansubmityourrequestonlineby visitingtheElsevierwebsiteathttp://elsevier.com/locate/permissions,andselecting ObtainingpermissionstouseElseviermaterial Notice Noresponsibilityisassumedbythepublisherforanyinjuryand/ordamagetopersons orpropertyasamatterofproductsliability,negligenceorotherwise,orfromanyuse oroperationofanymethods,products,instructionsorideascontainedinthematerial herein.Becauseofrapidadvancesinthemedicalsciences,inparticular,independent verificationofdiagnosesanddrugdosagesshouldbemade BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloging-in-PublicationData AcatalogrecordforthisbookisavailablefromtheLibraryofCongress ISBN–13:978-0-7506-8010-3 ISBN–10:0-7506-8010-5 ForinformationonallButterworth-Heinemannpublications visitourwebsiteathttp://books.elsevier.com TypesetbyIntegraSoftwareServicesPvt.Ltd,Pondicherry,India www.integra-india.com PrintedandboundinItaly 06 07 08 09 10 10 9 8 7 6 5 4 3 2 1 Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Preface Welcome to the CIM coursebooks vii Unit 1 Introduction to marketing communications 1 Introduction to the coursebook 2 The communications process 3 Personal influences (Syllabus 1.1) 6 Word-of-mouth communications (Syllabus 1.1) 9 How does marketing communications work? 10 Information processing (Syllabus 1.2) 12 The purchase decision-making process (Syllabus 1.3) 17 Organizational purchasing 21 Communication appeals (Syllabus 2.8) 23 Ethics, corporate and social responsibility (Syllabus 1.5) 25 Unit 2 Marketing communications mixes 33 Communications mix elements (Syllabus 2.1) 34 Co-ordinated marketing communications (Syllabus 2.2) 37 The 4Cs Framework 39 Advertising 40 Advertising and the marketing mix 43 Advertising campaign planning 44 Sales promotions 45 Public relations 49 Direct and interactive marketing communications 57 Database marketing 58 Direct marketing techniques 59 Telemarketing 62 Sponsorship 64 Personal selling 67 Unit 3 The marketing communications industry 74 Communications agencies (Syllabus 4.5) 75 Agency pitching 80 The development of multinational communications agencies (Syllabus 4.6) 81 Criteria to be considered when selecting an international agency 83 Determining the marketing communications budget (Syllabus 2.14) 85 Budgets for new products 90 Controls and regulations (Syllabus 4.7) 91 Unit 4 Relationships and marketing communications 98 Introduction 99 From transactional to relationship marketing (Syllabus 4.1) 100 The scope of marketing relationships (Syllabus 4.2) 103 Planning for relationship marketing (Syllabus 4.3) 105 Customer retention management (Syllabus 2.12) 110 Internal marketing communications (Syllabus 2.12) 113 The relationship marketing plan 115 Unit 5 Marketing channels 119 Channel structures (Syllabus 3.2) 120 Membership: Independence and interdependence 122 Vertical channel structures 125 v Contents Internet and digital technologies to support marketing channels (Syllabus 3.5) 126 Channel conflict (Syllabus 3.4) 127 Resolving channel conflict 130 The promotional mix in the marketing channel (Syllabus 3.1) 133 Key account management techniques to aid customer retention management (Syllabus 2.11) 135 Trade promotions 138 Unit 6 Communication strategies and planning and the international context 142 Marketing communication strategy – the 3Ps (Syllabus 2.9) 143 Pull strategy 144 Push strategy 151 Communications in marketing channel networks (Syllabus 3.1) 152 Profile strategy 153 Communications planning frameworks 157 Planning and frameworks 158 Marketingcommunicationsininternationalandglobalcontexts(Syllabus4.4,4.6) 159 Multinational versus global marketing 161 The forces of internationalization 162 The development of global brands 164 Global marketing communications 165 Standardized marketing communications 166 Understanding the international consumer 167 Unit 7 Media, creativity and product support 172 Media characteristics (Syllabus 2.6) 173 Communicating the message – media selection and planning (Syllabus 2.7) 175 Efficiency and evaluation (Syllabus 2.5) 179 Media buying and briefing 181 Interactivity, technology and new media (Syllabus 2.6) 182 Interactive strategies 184 e-Mail and mobile technologies 186 Creativity in communications (Syllabus 2.8) 187 Marketing communications and brand development (Syllabus 2.12) 189 Launching new products (Syllabus 2.12) 190 Maintaining market share (Syllabus 2.12) 190 Unit 8 Evaluating communications effectiveness 194 Evaluating co-ordinated marketing communications (Syllabus 2.5) 195 Evaluation of advertising (Syllabus 2.16) 198 Evaluation of sales promotions (Syllabus 2.16) 200 Evaluation of PR (Syllabus 2.16) 201 Evaluation of direct and interactive marketing communications (Syllabus 2.16) 202 Evaluation of sponsorship (Syllabus 2.16) 203 Evaluation of personal sales (Syllabus 2.16) 204 Brand evaluation (Syllabus 2.4, 2.5, 2.12) 204 Appendices 1 Guidance on examination preparation 207 2 Assignment-based assessment 219 3 Answers and debriefings 228 4 Marketing communications assignments and examinations 246 5 Past examination papers and examiners’ reports 264 6 Curriculum information and reading list 295 Index 305 vi Preface welcome to the CIM coursebooks Welcome to the coursebook for the CIM Professional Diploma module in Marketing Communications. The syllabus is designed to build on the knowledge of the theories under- pinning marketing communications and the effective application of communications tools such as advertising, PR, sales promotion, personal selling, direct and interactive methods and sponsorship. These are the major tools at the disposal of the communications practitioner althoughitisrecognizedthattherearemanyfacetstothewaysinwhichmessagesreachtheir intendedtargets.Thereisafocusontheimportanceofco-ordinationinachievingeffectiveness, which involves examining the ways in which communications tools interrelate. Structure The coursebookhas been structured in such a way that asyou work through the units you are buildingtheknowledgeintherightordersothatyouhaveastrongcommandofthesubjectand, ofcourse,arebetterplacedtopasstheassessmentsset.Youshouldworkthroughtheunitsin numerical order and complete as many of the activities as possible. The syllabus for the Marketing Communications module is provided at the end of the book for your reference, and in each unit you are referred to the syllabus references being covered. All thesyllabustopicsarecovered,butnotspecificallyintheorderlaidoutinthemodulesyllabus. This approach is intended to make your learning process easier and build incrementally. Support This coursebook has been written so that you can develop an understanding of the subject quickly, have easy reference to all the topics that you need to know about and be able to work throughaseriesofactivitiestoassistyourunderstandingofthesubject.Ithasbeendeliberately kept slim and manageable, designed to provide you a programme of learning about Marketing Communications. However, this is not a textbook, it is a coursebook designed to help you learn and understand. We strongly recommend that you do not rely on the coursebook alone for your studies. References should be made to one of the essential textbooks recommended by the CIM and for this particular module the textbook is: Chris Fill (2005) Marketing Communications: Engagement, Strategies and Tactics, 4th edition, Harlow: Pearson Education. vii Preface This book provides the depth of analysis that is required in a postgraduate course and will enableyoutoappreciatewhycertainactionsarerecommendedaswellasthe‘how-to’aspect. Therefore, please use the two learning resources in tandem. In addition to these books, you are encouraged to read the weekly trade papers, in particular, Marketing, Marketing Week, Campaign, PR Week and Precision Marketing. We have included references to numerous websites that will support points being made. You should also use MarketingOnline, the online learning resource provided by Butterworth-Heinemann. If you are able to use all of these resources, then we are confident that you will not only be successful in the assessment, but enjoy learning about this fast-changing subject. Good luck with your studies. Graham Hughes and Chris Fill Authors’ acknowledgements We would like to thank all those who have given their time, skills, knowledge, support and patience to the development of this coursebook. An introduction from the academic development advisor The authoring team, Elsevier Butterworth-Heinemann and I have all aimed to rigorously revise and update the coursebook series to make sure that every title is the best possible study aid and accurately reflects the latest CIM syllabus. This has been further enhanced through independent reviews carried out by CIM. We have aimed to develop the assessment support to include some additional support for the assignment route as well as the examination, so we hope you will find this helpful. TheauthorsandindeedSeniorExaminersintheseriesarecommissionedfortheirCIMcourse teaching and examining experience, as well as their research into specific curriculum-related areas and their wide general knowledge of the latest thinking in marketing. Wearecertainthatyouwillfindthesecoursebookshighlybeneficialintermsofthecontentand assessmentopportunitiesandastudytoolthatwillprepareyouforbothCIMexaminationsand continuous/integrativeassessmentopportunities.Theywillguideyouinalogicalandstructured waythroughthedetailofthesyllabus,providingyouwiththerequiredunderpinningknowledge, understanding and application of theory. The editorial team and authors wish you every success as you embark upon your studies. Karen Beamish Academic Development Advisor viii Preface Professional Postgraduate Diploma in Marketing ↓ Professional Diploma in Marketing ↓ Professional Certificate in Marketing ↓↓ Introductory Certificate in Marketing Studynote#CIM2006 How to use these coursebooks Everyone who has contributed to this series has been careful to structure the books with the examsinmind.Eachunit,therefore,coversanessentialpartofthesyllabus.Youneedtowork through the complete coursebook systematically to ensure that you have covered everything you need to know. This coursebook is divided into units each containing a selection of the following standard elements: o Learning objectives – Tell you what you will be expected to know, having read the unit. o Syllabus references – Outline what part of the syllabus is covered in the module. o Study guides – Tell you how long the unit is and how long its activities take to do. o Questions – Are designed to give you practice – they will be similar to those you get in the exam. o Answers (at the end of the book) – Give you a suggested format for answering exam questions.Rememberthereisnosuchthingasamodelanswer–youshouldusethese examples only as guidelines. o Activities – Give you a chance to put what you have learned into practice. o Debriefings (at the end of the book) – Shed light on the methodologies involved in the activities. o Hintsandtips–Aretipsfromtheseniorexaminer,examinerorauthorandaredesigned to help you avoid common mistakes made by previous candidates and give you guidance on improving your knowledge base. o Insights – Encourage you to contextualize your academic knowledge by reference to real-life experience. o Key definitions – Highlight and explain the key points relevant to that module. o Definitions – May be used for words you must know to pass the exam. o Summaries – Cover what you should have picked up from reading the unit. o Furtherstudy–Providesdetailsofrecommendedreadinginadditiontothecoursebook. Whileyouwillfindthateachsectionofthesyllabushasbeencoveredwithinthistext,youmight find that the order of some of the topics has been changed. This is because it sometimes ix