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• Module overview
• 1. What is marketing?
  • 1.1 What is marketing?
    • 1.1.1 Different uses of the term 'marketing'
    • 1.1.2 Different levels of marketing
    • 1.1.3 A definition of marketing
  • 1.2 Clarification of the marketing definition
    • 1.2.1 Outputs
    • 1.2.2 Inputs
    • 1.2.3 Exchange
  • 1.3 Development of marketing
  • 1.4 Types of marketing
  • 1.5 What is a service?
    • 1.5.1 Characteristics of services
    • 1.5.2 A service definition
    • 1.5.3 Classifications of services
    • 1.5.4 Services: a growth sector
  • 1.6 Marketing in the maritime industry
  • 1.7 Towards social and ethical responsibility
    • 1.7.1 Common criticisms of marketing
    • 1.7.2 Social impact of marketing
  • 1.8 Summary

• 2. Strategic marketing management

  • 2.1 Introduction
  • 2.2 The environments
    • 2.2.1 External environment
    • 2.2.2 Internal environment
    • 2.2.3 Mission statements and objectives
    • 2.2.4 Resources
  • 2.3 Controllable factors
  • 2.4 The strategic marketing management process
    • 2.4.1 Planning
    • 2.4.2 Implementation and control
    • 2.4.3 Marketing plan
  • 2.5 Types of marketing strategies
    • 2.5.1 Strategic considerations for services
  • 2.6 Summary

• 3. Marketing research and information systems

  • 3.1 Introduction
  • 3.2 The marketing information system (MIS)
  • 3.3 Marketing research
    • 3.3.1 Scope of research
  • 3.4 The marketing research process
    • 3.4.1 Step 1: defining the problem
    • 3.4.2 Step 2: analysing the situation
    • 3.4.3 Step 3: obtaining problem-specific data
    • 3.4.4 Step 4: interpreting the data
    • 3.4.5 Step 5: solving the problem
  • 3.5 Summary

• 4. Consumer and B2B buying behaviour

  • 4.1 Introduction
  • 4.2 Consumer buying behaviour
    • 4.2.1 Psychological influences
    • 4.2.2 Cultural and social influences
    • 4.2.3 The decision-making process
  • 4.3 B2B buying behaviour
    • 4.3.1 Business buying processes
    • 4.3.2 Main types of business markets
  • 4.4 The buying of services
  • 4.5 Summary

• 5. Segmenting markets, targeting and positioning

  • 5.1 Introduction
  • 5.2 Market segmentation
    • 5.2.1 Dimensions used to segment markets
  • 5.3 Target markets
  • 5.4 Market positioning
  • 5.5 Summary

• 6. Product planning and decisions

  • 6.1 Introduction
  • 6.2 Product concepts
    • 6.2.1 The total product concept
    • 6.2.2 Product classifications
    • 6.2.3 The service offering
  • 6.3 The product mix
  • 6.4 Branding
  • 6.5 Packaging
  • 6.6 Product life-cycle
  • 6.7 Product development
  • 6.8 Summary

• 7. Pricing considerations

  • 7.1 What is the 'price' of a product?
  • 7.2 Pricing environments
  • 7.3 Pricing objectives
  • 7.4 Pricing policies
    • 7.4.1 Discount and allowance policies
  • 7.5 Price setting
    • 7.5.1 Cost-oriented price setting
    • 7.5.2 Demand-oriented price setting
    • 7.5.3 The price setting process
  • 7.6 Summary

• 8. Marketing logistics networks

  • 8.1 Introduction
  • 8.2 Definition of distribution
  • 8.3 Channels of distribution
    • 8.3.1 Selecting channels
    • 8.3.2 Main Australian channels
    • 8.3.3 Distributing services
    • 8.3.4 Managing channels
  • 8.4 Managing distribution
  • 8.5 Distribution and ports
  • 8.6 Summary

• 9. Integrated marketing communications

  • 9.1 Communication with a purpose
  • 9.2 Marketing communication process
  • 9.3 The promotional mix
  • 9.4 Managing advertising
  • 9.5 Managing publicity and public relations
  • 9.6 Managing personal selling
  • 9.7 Managing sales promotion
  • 9.8 Summary

• 10. E-commerce and direct marketing

  • 10.1 Introduction
  • 10.2 Direct marketing
  • 10.3 Electronic commerce
    • 10.3.1 Successful e-commerce
  • 10.4 Online marketing
  • 10.5 Using customer databases
  • 10.6 Privacy issues
  • 10.7 Summary

• 11. Managing the service encounter

  • 11.1 Introduction
  • 11.2 Participants
    • 11.2.1 Customers
    • 11.2.2 Service personnel
  • 11.3 Managing the service encounter
    • 11.3.1 Role theory
    • 11.3.2 Script theory
  • 11.4 Process
    • 11.4.1 Operations management and services
    • 11.4.2 Manufacturing efficiency
    • 11.4.3 Improving services efficiency
    • 11.4.4 Matching supply and demand
  • 11.5 Physical evidence
    • 11.5.1 Types of physical evidence
    • 11.5.2 Space demarcation
    • 11.5.3 Atmospherics
    • 11.5.4 Servicescapes
  • 11.6 Summary

• 12. Customer relationship management

  • 12.1 Introduction
  • 12.2 Customer relationship management
  • 12.3 Customer satisfaction
    • 12.3.1 Benefits of customer satisfaction
  • 12.4 Service quality
    • 12.4.1 Conceptual model of service quality
    • 12.4.2 SERVQUAL
  • 12.5 Summary

9.1 Communication with a purpose

We noted in the 'Overview' that promotion is about communication with the customer. However, it is not casual, undirected communication; it is communication with a purpose.

The term marketing communications is often used as a synonym for promotion. Communication is the process of transferring ideas, thoughts, feeling and facts from one person to another. Marketing communication or promotion then is the means by which marketers inform, persuade or remind consumers about their products and services.

Thus, there are three basic purposes of communication in the context of marketing promotion: to inform, to persuade and to remind. Table 9.1 translates these purposes into more specific marketing activity for you.

Table 9.1 The purposes of marketing communications

To inform:
Telling the market about a new product Suggesting new uses for a product Informing the market of a price change Explaining how the product works	Describing available services Correcting false impressions Reducing buyers' fears Building a company image
To persuade:
Building brand preference Encouraging switching to your brand Changing buyers' perceptions of product attributes	Persuading customers to purchase now Persuading customers to receive a sales call
To remind:
Reminding buyers that the product may be needed in the future Reminding buyers where to buy the product	Keeping the product in the buyers' minds during off seasons Maintain top-of-mind product awareness

Source: Kotler et al. (2004, p. 632)

The three different purposes that underlie marketing communications suggest there might be different ways in which to undertake communication.

We mentioned earlier in the unit that marketing tends to be falsely identified with either advertising or selling. These are but two of the methods of promotion or communication channels we shall study in this chapter.

Consider this

Ask yourself, as you learn to differentiate the various methods, which of these would be appropriate in promoting a maritime or logistics organisation you are familiar with.

There are four main communications tools or, phrased another way, four main elements in the promotion mix. These are advertising, publicity and public relations, personal selling and sales promotion. Table 9.2 summarises some of these characteristics for you. We will deal with two other communication tools, direct and online marketing in the next chapter. Note that your text places advertising and publicity under the same heading as both being forms of mass selling and then differentiates them in terms of paid and unpaid mass selling respectively.

Table 9.2 Characteristics of the four elements of promotion

	Personal selling	Advertising	Sales promotion	Publicity
Mode of communication	Direct and face-to-face	Indirect and non personal	Usually indirect and non personal	Usually indirect and non personal
Communicator control over situation	High	Low	Moderate to low	Moderate to low
Amount of feedback	Much	Little	Little to moderate	Little
Speed of feedback	Immediate	Delayed	Varies	Delayed
Direction of message flow	Two-way	One-way	Mostly one-way	One-way
Control over message content	Yes	Yes	Yes	No
Identification of sender	Yes	Yes	Yes	No
Speed in reaching large audience	Slow	Fast	Fast	Usually fast
Message flexibility	Tailored to prospective buyer	Same message to audiences	Same message to varied target users	Usually no direct control over message

Source: Summers et al. (2003, p. 323)

If you think about the characteristics of the four promotion elements in Table 9.2, you will appreciate that some of them are better suited to consumer markets while others are better suited to organisational markets. Figure 16.5 on page 625 of your textbook demonstrates the different relative importance of these promotion tools for the consumer and organisational markets.

Ports tend to distribute basic information about their facilities and make some use of salespeople whereas shipping firms routinely advertise ship schedules and distribute the annual calendar. Occasionally, there is unplanned publicity through the handling of some unusual cargo, such as a cup-winning yacht. The newer courier and airfreight companies have aggressive promotional programs, but the maritime industry generally has few.

Now turn to the following reading for your text's introduction to promotion and the reasons why communication with customers requires an integrated effort. The article by Panayides and Gray (1997) has been included to indicate how the promotions mix and other marketing concepts can be applied to ship management.

In your text

Kotler et al. (2004) Chapter 16, pp. 606-612, 'Advertising and public relations' and 'Integrated marketing communication'.

Reading 9.1

Panayides, P. M. and Gray, R. 1997, 'Marketing the professional ship management service', Maritime Policy and Management , 24 (3), 233-244.

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