MARKETING COMMUNICATION

Application: Communication with Buyers, Sales, Strategy, Revenue Generation, Brand Building

The Concept

This is another vast subject in which people, both academics and practitioners, spend their whole careers. It is difficult to capture the subtlety, experience, complexity, and depth of those who do it really well. It is easy to see, though, the crassness of those who do it badly.

It is not an efficient use of resources to rely on sales teams, major account managers, or fee earning partners in professional service firms to generate revenue alone. Nor is short-term, tactical, sales support enough. Numerous businesses in many different markets have demonstrated that the use of carefully designed marketing communication techniques paves the way for sales; that investment in communications saves money. Communication campaigns can be used to attract initial attention, to stimulate interest, and to induce customers to buy, sometimes without the intervention of a sales person at all. Even in markets that are heavily reliant on a sales person, a retailer, or a consultant to close and deliver a sale, the use of marketing communications can, cost-effectively, attract customers to the point of sale and reassure them afterwards that they did the right thing.

Marketers seeking to optimize the contribution of communications to the sales process should take advantage of the complete range of modern communications. But they must think before they do. To communicate effectively with a group of buyers and to influence their purchasing behaviour, marketers must resolve a number of important and sometimes complex strategic issues. These include:

(i) Understanding the Intended Segment of Buyers

One of the most important components of effective communication is a deep understanding of the human beings for whom it is intended. Marketers must decide which buyer groups to focus on and concentrate on them to the exclusion of others. They must then invest in understanding both the rational and emotional needs of these people. If there is one difference between marketing-literate companies and others, it is their concentration on customer knowledge and their willingness to invest in research to get it. The leadership of their companies knows, through bitter experience, that their sales success hangs upon the intimacy and warmth of their customers’ responses to their communication. They invest in regular, deep research to understand this dynamic and to adjust to it. Moreover, they invest in recruiting and training experts whose job it is to understand this relationship.

It is in this field, probably more than any other, that a behavioural view of markets is important. Marketers must understand their intended group of customers in as much depth as possible. Who are they? How many are in the group? What do they think, feel, and believe? What are their aspirations, dreams, and ambitions? What do they read? What do they listen to? Which conferences do they attend? Which voices of authority (individuals or organizations) do they respect? What professional associations do they belong to?

Good marketing communication is grounded on data about the human beings at whom it is directed. Most experienced advertisers know exactly how many shoppers they are aiming at and their intended audiences’ attitudes to the product through systematic investment in research data or response mechanisms. In modern businesses, there is no reason why marketers should not have data on: their customers’ attitudes, the competitive reputation of their offer, the propensity of customers to refer them to others, and the play of their brand in the purchase process. All can be obtained through careful, systematic research and all will increase the effectiveness of communications. Marketers should steadily invest in customer knowledge, setting up processes to retain “corporate memory” of customer behaviour. There is no excuse for the arrogance of “gut feel” based on the experience of just a few customers and internal dialogue.

(ii) Creating and Managing the Message

Effective communication often depends on the use of one simple, relevant message. It has to be relevant to the target group to ensure impact and simple enough to be taken in by people in a brief moment of time. It also needs to be capable of sufficient repetition to become familiar to the intended audience without becoming irritating or boring. The message needs to contain a definite proposition which should be unique and strong enough to persuade people to act. It is likely to contain both rational elements (giving the reasons why the offer should be bought) and emotional appeal. It might be testimonial-based (using examples of others who have bought) and “dramatic” (using a narrative to convey meaning). Some are humorous (using laughter to appeal to humanity and create empathy) whereas others focus on fear (raising concern about consequences). Yet, it takes enormous effort to achieve the elegant simplicity of an effective message. The marketer needs to work with communications specialists in order to frame this message to the market place appropriately.

The timing of the message also needs to be carefully considered. At the lowest level this involves timing in relation to customer needs or in terms of other messages. In Europe, for instance, the culture of many countries is to take long holidays in August and many business people return in September ready to start new initiatives; this is a good time to start communication campaigns. However, suppliers should also think about the timing in terms of the customers’ phase of thinking and progress along the buying process. Messages which introduce a new concept, for instance, can be tailored to customers who are at the early phase in their thinking. Whereas, messages aimed at those near purchase will emphasize benefit and include a call to action. Messages aimed at those who have purchased, however, may be about service, process, and post purchase reassurance.

(iii) Allowing for the Maturity of the Market

Marketing communications strategy needs to be different at different stages in the market maturity process. For instance, when an idea is completely new, a true innovation (as Blue-ray was in the 2000s, mobile phones were in the 1990s, and video recorders in the 1980s), suppliers need to make people comfortable with the idea before they can sell individual products or services. They must use PR to educate and viral marketing to help the concept diffuse across the country in which their intended market resides. Articles must appear in magazines and newspapers that discuss the innovation and how it has occurred. Exhibition stands and news items should be dedicated to it. The IT industry has been particularly good at stimulating this form of PR because of its genuine excitement about new technology and the links between places like Silicon Valley and venture capitalists (which prompt news stories about new technology deals). In parallel with this, sophisticated marketers will focus on individuals who buy new concepts, those “early adopters” (see diffusion of innovation) or mavens. They are the geeks who enthuse about new ideas and love to buy new technology, called by some “Freds in sheds”.

Marketing communications strategy at another phase of the industry maturity is likely to be completely different however. In a mature market (like perfume, soft drinks, or computer maintenance, at the time of writing) customers are very familiar with the concept. In these market conditions, suppliers are after profit by teasing out defined segments and creating fascinating forms of differentiation.

(iv) Brand Building

A firm’s brand is one of its most precious intangible assets, affecting both the price and quality of everything it offers (see separate entry). Part of the strategy to enhance its value is likely to involve programmes that communicate the brand specifically to the general market place in order to make it famous. The main tool for this is, of course, broadcast marketing communications: advertising consistent messages. The marketer should also ensure that regular funds are set aside to enhance their brand through building fame by consistent communication to the chosen market. The brand needs to be a clear and well understood component of all marketing communication; a dominant theme of communication strategy.

(v) Competition, Share of Voice, and Other Influences

Suppliers need to consider the impact of their communications and the investment needed in the light of other messages that the intended customers will receive. These might come from direct competition or completely different concepts. Both can influence the customers’ attention to the message. Yet the overall demands on people’s attention also need to be taken into account. In a busy, modern lifestyle they are assailed by many different messages through many different media. Too little communication will mean that the message will not reach the threshold necessary to command attention, in the light of other demands (as Figure M.5 above tries to represent); on the other hand, too much will lead to saturation, undermining the impact as buyers become bored.

Figure M.5 A representation of marketing communication issues

(vi) Managing the Creative Execution

One of the aspects of marketing communication which can be the most powerful in convincing customers to respond or buy is the creative components of the campaign. This can range from the text used in emails through to the music and film which are part of a full broadcast advert. It is beyond doubt that the quality and appeal of the creative representation of a message can have a dramatic effect on an audience, affecting buying behaviour and recall. It needs to be taken seriously, even by business-to-business marketers.

While some make up their own, most marketers invest heavily in the creative execution of their communications needs. They use graphic designers for proposals or brochures, web designers for internet-based work, video teams for both staff and customer communications, and advertising agencies to design advertisements. The variety and range of work is as wide as the methods used to manage this resource. For instance, some firms have used elaborate design techniques for individual sales proposals. Many have large in-house design teams, often supplemented by ad hoc design consultancies. In an ideal world, creative work ought to be selected using competitive processes and an agency brief. It should follow the brief, not drive it. While many firms work well over many years with small agencies who learn their culture, a new, complex, or significant project should be subject to competitive tender.

(vii) Which Media to Use and When; How to Integrate Their Cumulative Effect on Customers’ Opinions

As important as the creative elements of a communications campaign is the precise and careful planning of which media to use. There is a variety of media that influence the intended market group. They include, for instance, the tools of broadcast advertising (TV and newspapers), digital marketing (the web), direct marketing, PR, the firm’s sales people, employees, and referrals from people that customers respect (word-of-mouth: see viral marketing). All need to be understood and used precisely. The frequency, cumulative impact, and style of the message being communicated through that medium needs to be planned very carefully. In an ideal world an intended customer will receive the same message, whether it is from TV, magazines, or the web. This is well understood in many consumer markets but it also applies in business-to-business marketing. A customer might receive the message from the professional association to which they belong, an article they read, an informal discussion with a colleague, or a presentation from the supplier. Well crafted messages will get through to the market place, with a subtlety that hides the calculated planning of appearance in relevant media.

The skill of communications planning is designing the right mix of these different media and different techniques to influence customers’ thinking, called recently “Integrated marketing communications” (IMC). By planning an integrated approach and managing various agencies to deliver it, a concerted effort can be made to communicate an idea to a customer. The customer might receive an invitation to an event one day, see a newspaper article the next, read a blog online, notice an advertisement after that and, finally, talk to an employee of the firm. Well planned communications prepare the way for a direct conversation, optimizing both time with the customer and costs. IMC examines all the channels through which people receive messages about the offer and uses models to plan the frequency of communications through different media. This must be done by the firm itself to achieve a good balance of effective communication and spend. Normally marketers will manage a group of different agencies throughout one campaign to achieve this.

At the same time, IMC improves the cost-effectiveness of marketing communications. To date marketing promotion has tended to be a supplier driven industry. External specialist agencies have been hired by companies to carry out one of a wide range of promotional techniques. Developing an integrated approach has been made difficult by the focus these agencies have on their own area of expertise. Most advertising agencies want to do advertising, most direct marketing and public relations consultancies want to do direct marketing or PR, and so on. They all tend to stay in their own silos. (For a time there was a move in the industry toward a “full service agency”, or the one-stop shop, but that concept has not really taken hold.) Even the big networks, which own a range of different marketing agencies, have difficulty in combining them effectively to produce the best balance of communications vehicles for their clients. However, a firm that adopts IMC can itself manage the balance of different agencies, saving costs and improving impact. This is at the heart of good “client side” marketing management.

(viii) Response Management and Adjustment in the Light of Feedback

Modern marketing communications also looks for a response from the buyer. This goes beyond the relatively unsophisticated practice of broadcast marketing promotion in that it plans, from the start, a process of two-way communications between the firm and the buyers. A response, through a database or a dedicated micro site or a response driven promotional campaign, can give the marketers an idea of the effectiveness of the communication. It can also point to improvements the buyer needs from the company in the form of either quality of service or adjustment to the proposition. The company can then improve its profits and brand value by responding to these messages.

So, marketers must develop clear communications strategies which give precision, clarity, narrative, and impact to any practical marketing communications. The essence of good communication is: good strategy, clear objectives, good targeting, a poignant message, and imaginative creative (particularly writing) and effective organizational capabilities. Moreover, these issues need debate and resolution at senior levels in the firm before planning and implementing the detail of any campaign because they have financial implications. Marketers must learn to craft carefully targeted communications that are digestible and easy to understand, while at the same time cutting through the myriad of other messages to reach their intended audience.

History, Context, Criticism, and Development

There is evidence of businesses using different marketing communication techniques for many years. As described in their individual entries, advertising, direct marketing, and PR have a long history of contribution to brand building and profit. It is arrogant beyond belief to assume that these earlier marketers and business leaders had no understanding of “modern” communication ideas. The success of names like Heinz, Wedgwood, Singer, Pears, Lever, Colt, and Woodruff (Coca-Cola) in creating profit and enduring businesses in dirt poor societies where their markets did not previously exist is, in many ways, much more impressive than the day-to–day functionalized existence of many modern marketers. The behaviour of many of these people (and others) formed the foundation of modern communications theory.

Yet, the way marketing communications was described in the early days of marketing theory (“promotion”) is completely inadequate because it implies that any activities are one-way: directed from the supplier to the customer. It is true that suppliers need to put clear, simple propositions to groups of customers. It is also true that they need to be put in attractive, distinctive, and meaningful ways that stimulate their desires and appetites. If suppliers do not communicate effectively, they cannot overcome the noise of other claims on their intended customer’s attention. Buying simply cannot begin if potential customers do not know who you are or what you stand for. As the adverts for McGraw-Hill once ran: “I don’t know who you are, I don’t know where you come from, I don’t know how long you have been in business, I don’t know who your customers are … now, what are you trying to sell me?” (see McCarthy, E.J., 1975).

Toward the end of the 20th century several concepts emerged which affected both theory and practice in marketing communication. Most academic texts, for example, began to adopt the term “integrated marketing communication” to reflect growing consensus that all the aspects of communication need to be carefully deployed and used to convince an audience of a message. The very best practitioners found this to be a statement of the obvious. Despite the biases in the marketing supply industry they had been integrating messages across multiple media for some years. Another emerging concept was the emphasis, on responsive marketing communications. With growing interactive technology, markets began to put greater emphasis on stimulating a response from their customers and responding to that response. Even with large broadcast brands (like TV shows or magazines) it became increasingly recognized that people wanted to engage and respond. This led, for example, to interactive advertising campaigns and a greater emphasis on dialogue through, say, digital media. This, in turn, led to a re-emphasis on word-of-mouth and viral marketing. The advent of social media and an increasing codification of relationship marketing led marketers to explore, in a more structured way, the communication of messages through networks and inter-related communities. If marketers want to capture the imagination of modern buyers, they must also communicate with them by getting a response and adjusting their message in the light of that response. They must listen and respond as much as they plan and pronounce. Effective marketing communication is a two-way process not a one-way broadcast.

Voices and Further Reading

• “In recent years, the marketing communication environment has experienced the fragmentation of traditional advertising media as well as the emergence of new, non-traditional media, promotion and other communication alternatives … As a result of these and other changes, a modern marketing communication program typically employs a host of different communication options.” Keller, K.L., 2001.
• Dahlen, M., Lange, F., and Smith, T., Marketing Communications; A Brand Narrative Approach. Wiley, 2010. A fascinating and through little text book which emphasizes the power and importance of branding in all aspects of marketing communication.
• “… today’s marketing communications has to be integrated, must move away from a tactics orientation and must be able to grow with the target audience. Marketing is moving away from managing customer transactions to managing internal and external relationships and from passive to interactive multi-channel marketing communications strategies. Marketing communications is concerned with engagement: the planned, integrated and controlled interactive dialogues with key target audiences to help mutually beneficial objectives.” Dahlen et al., ibid.
• “Marketers do not promote simply to inform, educate and entertain; they communicate to facilitate satisfying exchanges-products or services for money or donations.” Dibb, S. et al., 2006.
• “A method for the selection of appropriate business-to-business integrated marketing communications mixes.” Garber and Dotson, 2002.
• “Advertising strategy”, Sternthal, B. in “Kellog on Marketing” (ed) Iacobucci, D., 2001.
• “The shift from mass marketing to segmented marketing has had a dramatic impact on marketing communications. Just as mass marketing gave rise to a new generation of mass-media communications. So the shift towards one-to-one marketing is spawning a new generation of more specialized and highly targeted communications efforts. Given this new communications environment, marketers must rethink the roles of various media and promotion–mix tools.” Kotler, P., 2005.

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