Chp 2 effective communications for marketing


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  • Summary Overview The action-oriented AIDA model is a practical approach for looking at what promotion tries to accomplish with each individual customer. The relationship of the AIDA model to the three promotion objectives and the product adoption process covered in Chapter 6 is illustrated on the slide. The Four Promotion Jobs in the AIDA Model Attention . Promotion first seeks to break through the clutter of information in the market place and get the attention of a person in the target market. Interest . Next, Promotion seeks to arouse curiosity and stimulate greater interest in the product. Desire . Promotion then seeks to get an emotional response, a “buy-in” whereby the customer has a strong desire for the product. Action . Finally, Promotion helps the customer take action, “buy now.”
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  • Chp 2 effective communications for marketing

    2. 2. Some Strategic Goals of Marketing Communications Slide 17-1 Table 17.1 Strategic Goal Create awareness Build positive images Build channel relationships Description Inform markets about products, brands, stores or organizations. Develop positive evaluations in people’s minds about products, brands, stores or organizations. Identify prospects Find out the names, addresses and possible needs of potential buyers. Increase cooperation among channel members. Create value for customers, satisfy their wants and needs, and earn their loyalty. Retain customers
    3. 3. The Communication Process
    4. 4. <ul><li>Source/Sender: the party sending the message to another party. </li></ul><ul><li>Encoding : the process of putting toughts into symbolic form </li></ul><ul><li>Message : the set of symbols that sender transmits </li></ul><ul><li>Communication channel : medium that carries coded message </li></ul><ul><li>Decoding process: converting signs and symbols into concepts and ideas </li></ul>
    5. 5. <ul><li>Receiver : the party receiving the message sent by another party </li></ul><ul><li>Response: the reactions of the receiver after being exposed to the message </li></ul><ul><li>Noise: the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one that sender sent. It can reduces communication’s clarity and accuracy </li></ul><ul><li>Feedback: part of the receiver’s response communicated back to the sender </li></ul>
    6. 6. Possible Objectives Of Promotion
    7. 7. THE AIDA MODEL Slide 17-3 Figure 17.2 Action Desire Interest Attention Marketing Communications
    8. 8. Promotion and the AIDA Model Promotion Objectives Adoption Process AIDA Model Informing Persuading Reminding Attention Interest Desire Action Awareness Interest Evaluation Trial Decision Confirmation } } {
    9. 9. Create Awareness <ul><li>Awareness is crucial to initiating product adoption process </li></ul><ul><li>Increase awareness of brands, product features, image-related issues, or operational characteristics </li></ul>
    10. 10. Stimulate Demand <ul><li>Primary - demand for a product category rather than a specific brand </li></ul><ul><ul><li>Pioneer promotion – informs consumers about a new product </li></ul></ul><ul><li>Selective - demand for a specific brand </li></ul>
    11. 11. Encourage Product Trial <ul><li>Free samples </li></ul><ul><li>Coupons </li></ul><ul><li>Test drives </li></ul><ul><li>Limited free-use offers </li></ul><ul><li>Contests </li></ul><ul><li>Games </li></ul>© Microsoft Power Point Clip Art
    12. 12. Encouraging product trial through a free offer © Jeff Greenberg / PhotoEdit
    13. 13. Communications Objectives of Consumer Promotions Slide 18-7a Coupons Deals Contests and sweepstakes Stimulate sales by short-term price reductions; obtain trial for new products. Premiums Free samples Stimulate sales of products, visits to stores; increase quantities purchased. Attract new customers to existing products; build goodwill; offer greater value. Attract attention; create goodwill; increase sales; generate publicity. Encourage usage by consumers so they can experience product benefits. Table 18.3 Type Communications Objectives Free trials Stimulate sales by lowering risk of product being unacceptable after purchase; provides experience of product’s performance.
    14. 14. Slide 18-7b Point of Purchase Displays Rebates Trade shows Make products more prominent in stores; increase chances of impulse purchases; introduce new products. Continuity plan Specialty promotions Encourage purchases, particularly for big ticket items; get customer information for databases. Reward customer loyalty; support relationship marketing efforts; increase sales volumes. Generate attention and awareness of an industry’s products; identify prospects; make sales. Generate awareness of company, products and locations; get repeated exposures to messages; create goodwill. Table 18.3 Type Communications Objectives Communications Objectives of Consumer Promotions
    15. 15. Retain Loyal Customers <ul><li>Cheaper than acquiring new ones </li></ul><ul><li>Frequent-user programs </li></ul><ul><li>Special offers </li></ul>© Microsoft Power Point Clip Art
    16. 16. <ul><li>The Promotion/ Communications Mix </li></ul><ul><li>A combination of promotional methods used to promote a specific product. </li></ul>Slide 17-4 Advertising Personal Service Publicity Sales Promotion
    17. 17. Comparing the Elements of the Communications Mix Slide 17-5 Message can be Customized for each Customer Considered an Unbiased Source Long Term, Ongoing Activity Marketer Control Over Message Communications Mode Short Term Focus Cost per Contact Overall Cost Personal Selling Sales Promotion Advertising Publicity Two-Way One-Way One-Way One-Way Low Varies High No Direct Cost Yes No Yes No No No No Yes Yes No No No No Yes No No High Varies Low No Direct Cost Medium-High High High Low
    18. 18. Selecting Promotion Mix Elements <ul><li>Promotional Resources, Objectives, and Policies- affect promotional methods and types selected </li></ul><ul><li>Characteristics of the Target Market </li></ul><ul><li>Characteristics of the Product </li></ul><ul><li>Costs and Availability of Promotional Methods </li></ul><ul><li>Pull and Pull Channel Policies </li></ul>
    19. 19. Target Market Characteristics <ul><li>Help dictate methods included in promotion mix </li></ul><ul><li>Market size determines composition of mix </li></ul>
    20. 20. Push vs. Pull Promotional Strategies
    21. 21. Push and Pull Channel Policies <ul><li>Push policy – promoting a product only to the next institution down the marketing channel </li></ul><ul><li>Pull policy – promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel </li></ul>
    22. 22. Personal And Electronic Word-Of- Mouth Communication <ul><li>Word-of-Mouth – personal informal exchanges customers share with one another about products, brands, and companies </li></ul><ul><li>Buzz marketing – an attempt to gain acceptance of product by word-of-mouth </li></ul><ul><li>Viral marketing – strategy to get Internet users to share ads and promotions with their friends </li></ul>
    23. 23. Advertising and Public Relations
    24. 24. The Nature of Advertising <ul><li>Advertising – paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media </li></ul><ul><li>A form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas or services </li></ul>
    25. 25. Types of Advertising Slide 18-1 Table 18.1 Digital Advertising Advertising that focuses on using TV, radio, online advertising, product placement (covert advertising) Term Definition Physical advertising Physical appearance on the advertising such as press advertising (newspapers, magazines), mobile billboard advertising, in-store advertising, coffee cup advertising, street advertising, celebrity advertising
    26. 26. Objective of Advertising <ul><li>Increasing the usage of a certain product and hence acquiring more orders. </li></ul><ul><li>Creating new customers and increasing brand recognition. </li></ul><ul><li>To obtain feedback from customers regarding a certain product. </li></ul><ul><li>To indicate introduction of new products or replacement of old ones. </li></ul>
    27. 27. The Process of Managing Advertising Slide 18-2 Figure 18.2 Review Advertising Goals and Budget Pretest Ads Schedule and Run Ads Evaluate Advertising Effectiveness Adjust Advertising As Needed Select Media Create Messages
    28. 28. Advertising Appeals Slide 18-3 Humor Emotional Moral Rational Sex Fear
    29. 29. Developing an Advertising Campaign <ul><li>Advertising campaign – the creation and execution of a series of advertisements to communicate to a particular target audience </li></ul>
    30. 30. Steps In Developing And Implementing An Advertising Campaign
    31. 31. Determining the Advertising Appropriation <ul><li>Advertising appropriation – budget for a specific time period </li></ul><ul><ul><li>Geographic size of market </li></ul></ul><ul><ul><li>Distribution of buyers </li></ul></ul><ul><ul><li>Type of product </li></ul></ul><ul><ul><li>Firm’s sales volume vs. competitor’s sales volume </li></ul></ul><ul><li>Appropriation for business products vs. convenience items </li></ul>
    32. 32. Advertising Expenditures By Media
    33. 34. Relative Merits of Major Advertising Media Slide 18-5a Television Radio • Reaches a broad audience • Provides both audio and visual information • Can generate attention • Low cost per exposure Table 18.2 Medium Advantages Disadvantages • High network charges and production costs • Limited ability to target customers • Short exposure time in most cases • Limited availability • Can be zapped by consumers with remotes • Messages are short • Inability to convey visual information • Lower attention than television • No standard rate structures • Audience engages in other activities while listening • Less costly than television advertising • Messages can be fairly well targeted for consumer markets • Widely used in many parts of the world
    34. 35. Slide 18-5b Print • Can provide broad or targeted exposure • Cost can be low • Reader can study an ad and review detailed information • Broad acceptance • High believability • Magazine reproduction quality is high • Some pass-along audience Table 18.2 Medium Advantages Disadvantages • Some print media require submission well in advance of publication • Some print media do not effectively reproduce color • No guarantee of ad’s position • Ads in widely read magazines and newspapers may be costly • Frequency limited by publication schedule Relative Merits of Major Advertising Media
    35. 36. Direct Mail • Relatively high cost • Poor image of medium among many customers • Usually lacks nonadvertising material to attract readers • Delivery time and date cannot be guaranteed • Messages can be narrowly targeted • Messages can be relatively long and detailed • No competing ads in medium • Performance can be measured relatively easily • Difficult for competitors to monitor results Slide 18-5c Table 18.2 Medium Advantages Disadvantages Relative Merits of Major Advertising Media
    36. 37. Slide 18-5d Outdoor Internet • Inexpensive (in the case of posters) • High repeat exposure • Low competition • Can be placed near point of sale Table 18.2 Medium Advantages Disadvantages • Targets an audience only by geographic location • Message viewed very briefly • Expensive (in the case of billboards) • Negative image among environmentalists • Not all users speak the same language used in the ad • Quality of images varies • Audience limited to Internet users interested in the company or product • Messages can be customized • No additional cost for reaching global markets • Messages can include words, pictures, sound and video Relative Merits of Major Advertising Media
    37. 38. Public Relations <ul><li>Communication efforts used to create and maintain favorable relations between an organization and its stakeholders </li></ul>
    38. 39. Function of PR <ul><li>Press relations/press agency: creating and placing newsworthy info in the news media to attract attention to a person, product or service </li></ul><ul><li>Product publicity: publicizing specific products </li></ul><ul><li>Public affairs: building and maintaining national or local community relations </li></ul>
    39. 40. <ul><li>Lobbying: building and maintaining relationships with legislators and government officials to influence legislation and regulation </li></ul><ul><li>Investor relations: maintaining relationships with shareholders and others in the financial community </li></ul><ul><li>Development: public relations with donors or members of nonprofit organisations to gain financial or volunteer support </li></ul>
    40. 41. Types of Publicity Press Releases Company Newsletter Organize News Public Speaking Interviewed on TV/Radio Exhibition Trade Shows Press Launches
    41. 42. Public Relations Tools <ul><li>People </li></ul><ul><li>Places </li></ul><ul><li>Ideas </li></ul><ul><li>Activities </li></ul><ul><li>Countries </li></ul><ul><li>Publicity – communication about the organization and/or its products transmitted through mass media at no charge </li></ul><ul><ul><li>News release </li></ul></ul><ul><ul><li>Feature article </li></ul></ul><ul><ul><li>Captioned photograph </li></ul></ul><ul><ul><li>Press conference </li></ul></ul>
    42. 43. Advertising Vs. Public Relation Advertising Public Relation Company pays for ad space. They know exactly when the ad will air or be publish. Get free publicity for the company. Getting free media exposure for the company and its products/services. Company has creative control on what goes into the ad. No control over how the media presents the company’s information, and company is not obligated to cover the event. Can run ads over and over for as long as budget allows. The company exposure only once on a press release. They won’t publish the same article. Buzz words are used to motivate people to buy your product. Strictly writing in a formal news format, there is no blatant commercial messages in the articles/speech/press release.
    43. 44. Unified Communications
    44. 45. The Communications Divide
    45. 46. The Communications Divide <ul><li>The communications world is split in two—between the things you do on the telephone and the things you do on the computer. </li></ul><ul><li>The split exists because most real-time (synchronous) communications--like telephone calls and voice mail--depend on one network, while message based (asynchronous) communications--like e-mail--depend on a separate, incompatible network. </li></ul><ul><li>Real-time (synchronous) communications run on the Public Switched Telephone Network (PSTN). Asynchronous communications run on packet-based networks like Ethernet (IP). </li></ul>
    46. 47. <ul><li>The split creates problems, lots of them. Phones aren't as intuitive as they should be: just try to start a three-way call without hanging up on someone. Computers can check your e-mail, but not your voice mail. And then there's the enormous cost of purchasing, maintaining, and upgrading two complex infrastructures. </li></ul><ul><li>To get your phones and your computers talking, you'd have to tear out your entire telephone system, dump your PBX, replace every desk phone, swap out every phone jack. In short, you'd have to start from scratch. </li></ul>
    47. 48. Business Challenge <ul><li>In the new technological workplace, the focus is on the work , not where it is done . </li></ul><ul><li>People come together to solve problems, develop plans, and embrace opportunities. </li></ul><ul><li>In the past, this usually required them to be in physical proximity. </li></ul><ul><li>In the new world of work, however, working together no longer means working in the same room, the same office, or even in the same country. </li></ul><ul><li>Nor does it mean that people belong to the same organization or share the same applications infrastructure or network resources. </li></ul>
    48. 49. New Requirements <ul><li>Information workers must quickly find and reuse the information they need. </li></ul><ul><li>Field sales personnel need always-on access to key line-of-business information, including customer contact, sales, order, and production data. </li></ul><ul><li>Information workers need search capabilities that cross data repositories so that they can stay productive by quickly finding the information they need. </li></ul>
    49. 50. <ul><li>Distributed teams need easy-to-use, self-provisioned tools so that team members can share documents, tasks, calendar data, and presence information within and outside the corporate network, with assurance that this information is better-protected with strong security. </li></ul><ul><li>Corporate management needs electronic record and content management, e-mail retention, and compliance controls. </li></ul>
    50. 51. Another name… <ul><li>Also known as Integrated Marketing Communications (IMC). </li></ul><ul><li>According to The American Marketing Association , it is </li></ul><ul><ul><li>“ a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” </li></ul></ul><ul><li>It is defined as a holistic approach to promote buying and selling in the digital economy. </li></ul>
    51. 52. <ul><li>This concept includes many online and offline marketing channels. </li></ul><ul><ul><li>Online marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, RSS, podcast, and Internet TV. </li></ul></ul><ul><ul><li>Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry analyst relations billboard, radio, and television. </li></ul></ul>
    52. 53. Goal of IMC or UC <ul><li>A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. </li></ul><ul><li>In practice, the goal of IMC is to create and sustain a single look or message in all elements of a marketing campaign. </li></ul><ul><li>A successful integrated marketing communication plan will customize what is needed for the client based on time, budget and resources to reach target or goals. </li></ul><ul><li>Small business can start an integrated marketing communication plan on a small budget using a website, email, etc. </li></ul><ul><li>Large corporation can start an integrated marketing communication plan on a large budget using print, mail order, radio, TV plus many other online ad campaigns. </li></ul>
    53. 54. 7 Main Shifts <ul><li>From media advertising to multiple forms of communication (including promotions, product placements, mailers...) </li></ul><ul><li>From mass media to more specialized media, which are centered around specific target audiences. </li></ul><ul><li>From a manufacturer-dominated market to a retailer-dominated market. The market control has transferred into the consumer's hands. </li></ul><ul><li>From general-focus advertising and marketing to data-based marketing. </li></ul><ul><li>From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before. </li></ul><ul><li>From traditional compensation to performance-based compensation. This encourages people to do better because they are rewarded for the increase in sales or benefits they cause to the company. </li></ul><ul><li>From limited Internet access to widespread Internet availability. This means that people can not only have access to what they want 24/7 but that advertisers can also target different people 25 hours a day. </li></ul>
    54. 55. Communications Convergence <ul><li>The arrival of unified communications signals the beginning of the convergence of VoIP telephony (which provides the ability to route telephone calls through the Internet), email, instant messaging, mobile communications, and audio and video Web conferencing into a single platform that shares a common directory and common developer tools. </li></ul><ul><li>Unified communications also takes advantage of standard communication protocols such as SIP (Session Initiation Protocol) to route communications to the right people on the right device. </li></ul>
    55. 56. Characteristics of a Good UC Application <ul><li>Personal and intuitive: One of the most important goals is to make communication and information access seamless and personal, no matter the location or what device. Presence—which provides information about availability—will enable a party to reach the right person on the first try. </li></ul><ul><ul><li>Intelligent information agent software that understands how you prefer to work will give you control over who can contact you, on what device and at what times. SIP standards and software-based call management will make communications richer and more intuitive, and provide seamless transitions from one communications mode to the next. </li></ul></ul>
    56. 57. Characteristics of a Good UC Application <ul><li>Convenient and integrated: Today, when you contact a colleague, you probably need to switch from the application you are working in to an address book and then to a device (like a telephone) or a different application (such as email). Unified communications will enable you to collaborate directly from the application where you are working. </li></ul><ul><ul><li>Integration with Microsoft Office will help make Microsoft Outlook the center for all types of communications experiences and provide seamless access to collaboration tools such as Microsoft SharePoint. By delivering a standards-based platform, Microsoft will enable developers to integrate communications into applications that provide even greater value, convenience and power. </li></ul></ul>
    57. 58. Characteristics of a Good UC Application <ul><li>Flexible and trustworthy: Unified communications will enable organizations to consolidate their communications systems into an integrated platform that utilizes a single identity for each user and provides a common management and compliance infrastructure. This will enable IT departments to significantly improve communications and collaboration capabilities while reducing complexity and lowering total cost of ownership. </li></ul><ul><ul><li>Built on a platform that is secure and reliable, Microsoft unified communications technologies are already helping leading companies achieve groundbreaking TCO. Ebay, for example, has lowered its per-mailbox costs by 70 percent. At Nissan, collaboration technologies have helped save more than US$135 million. And Siemens has unified 130 business units into a single Active Directory. </li></ul></ul>
    58. 59. In the Industry…
    59. 60. Business Benefits of UC <ul><li>A complete, inclusive set of tools and services for information workers to help them get more work done faster and at less expense. </li></ul><ul><li>Tools for document sharing, workflow creation, enterprise search, real-time communications, e-mail, and business productivity. These tools work together out of the box, with no complex or expensive integration required. </li></ul><ul><li>User access to critical data from the desktop, a Web browser, or a mobile device—all using a consistent, powerful, familiar interface. This increases user productivity and cuts wasted time. </li></ul><ul><li>Electronic records management tools that can help reduce compliance overhead and expense. </li></ul><ul><li>Easier and less-expensive deployment and management to reduce IT overhead costs for providing a complete collaboration environment. </li></ul>