lecture 7 lecture notes in marketing

Lecture 7Lecture Notes in

Marketing

Prof. Mundy GonzalezRCBC CampusAugust, 2006

Managing Integrated Managing Integrated Marketing CommunicationsMarketing Communications

RCBC CampusAugust 21, 2004

Prof. Mundy GonzalezDe La Salle UniversityProfessional Schools, Inc

Integrated marketing Integrated marketing communications is a communications is a way of looking at the way of looking at the whole marketing whole marketing process from the process from the viewpoint of the viewpoint of the customer.customer.

Kotler on Kotler on MarketingMarketing

MEANS OF MEANS OF COMMUNICATION IN COMMUNICATION IN MARKETINGMARKETING

AdvertisingAdvertising Sales PromotionsSales Promotions Public Relations Public Relations PublicityPublicity Personal SellingPersonal Selling Direct and Interactive Direct and Interactive

MarketingMarketing

MODES OF COMMUNICATIONSMODES OF COMMUNICATIONS

1.1. Advertising – non-personal presentation; Advertising – non-personal presentation; identified sponsor.identified sponsor.

2. Sales Promotion – giving incentives to encourage purchase or sales.

3. Publicity – non-personal stimulation of demand; not (explicitly) paid by an identified sponsor

MODES OF MODES OF COMMUNICATIONS (cont.)COMMUNICATIONS (cont.)

Face-to-face interaction with prospects; to make presentations, answer questions, and procure orders.

5. Direct Marketing

Communicate directly with specific Prospects to solicit response throughmail, fax, e-mail, or Internet

4. Personal Selling

Common Communication Common Communication PlatformsPlatforms

AdvertisingAdvertising Sales Sales PromotionPromotion

Public Public RelationsRelations

Personal Personal SellingSelling

Direct Direct MarketingMarketing

Print and Print and broadcast broadcast adsads

Contests, Contests, games, games, sweepstakes, sweepstakes, lotterieslotteries

Press kitsPress kits Sales Sales presentationpresentation

CatalogsCatalogs

Packaging-Packaging-outerouter

Premiums Premiums and giftsand gifts

SpeechesSpeeches Sales Sales meetingsmeetings

MailingsMailings

Packaging Packaging insertsinserts

SamplingSampling SeminarsSeminars Incentive Incentive programsprograms

TelemarketinTelemarketingg

Motion Motion picturespictures

Fairs and Fairs and trade showstrade shows

Annual Annual reportsreports

SamplesSamples Electronic Electronic shoppingshopping

See text for complete table

Elements in the Communication Elements in the Communication ProcessProcess

The Communication The Communication ProcessProcess

Target audience may not receive the Target audience may not receive the intended message for any of three intended message for any of three reasons:reasons: Selective attentionSelective attention Selective distortionSelective distortion Selective retentionSelective retention

The Communication The Communication ProcessProcess

Fiske and Hartley have outlined Fiske and Hartley have outlined factors that influence communication:factors that influence communication: The greater the influence of the The greater the influence of the

communication source, the greater the communication source, the greater the effect on the recipienteffect on the recipient

Communication effects are greatest Communication effects are greatest when they are in line with existing when they are in line with existing opinions, beliefs, and dispositionsopinions, beliefs, and dispositions

The Communication The Communication ProcessProcess Communication can produce the most effective Communication can produce the most effective

shifts on unfamiliar, lightly felt, peripheral issues shifts on unfamiliar, lightly felt, peripheral issues that do not lie at the core of the recipient’s value that do not lie at the core of the recipient’s value system.system.

Communication is more likely to be effective if Communication is more likely to be effective if the source is believed to have expertise, high the source is believed to have expertise, high status, objectivity, or likeability, but particularly if status, objectivity, or likeability, but particularly if the source has power and can be identified with.the source has power and can be identified with.

The social context, group, or reflective group will The social context, group, or reflective group will mediate the communication and influence mediate the communication and influence whether or not the communication is accepted.whether or not the communication is accepted.

Consumer Behavior Consumer Behavior DefinedDefined

The study of the acts of individuals The study of the acts of individuals directly involved in obtaining and using directly involved in obtaining and using economic goods and services, including economic goods and services, including the decision processes that precede and the decision processes that precede and determine the acts.determine the acts.

• Combines psychology, sociology,

anthropology and economics.

Basic Assumptions of Basic Assumptions of Consumer BehaviorConsumer Behavior

Consumer behavior is logical and Consumer behavior is logical and determined by the individual.determined by the individual.

• The individual is in control.

• Consumer behavior can be influenced.

•Consumer behavior can and should be

understood through research.

Cognitive PsychologyCognitive Psychology

RS

One View of Consumer One View of Consumer Behavior:Behavior:Stimulus-Response Stimulus-Response TheoryTheory

Mechanistic and linearMechanistic and linear

• Not very predictive at micro or individual level.

• Still useful at macro level

A Second View of A Second View of Consumer Behavior: Consumer Behavior:Cognitive Psychology Cognitive Psychology TheoryTheory

Expands on S—R Theory by adding Expands on S—R Theory by adding mediating variables between stimulus mediating variables between stimulus and responseand response

• Sees the individual in control

• Focus is on how individuals process informationsees individual as having innate need to know

What’s Inside the Black What’s Inside the Black Box?Box?

S R

Selective Perception Filter

•Selective Exposure

•Selective Attention

•Selective Comprehension•Selective Retention


BeliefsBeliefs• Values

• Attitudes

• Personality Traits

• Defense Mechanisms

• Memories

Intermediary actions

Work and LeisureLanguage

Religion

Education

Cultural Influences

CultureAdaptation

CultureChange

Reference Groups

Family

Cultural InfluencesCultural Influences


ExperienceExperience

More Things in the Black More Things in the Black BoxBoxBeliefsBeliefs

Beliefs –strongest held cognitionsBeliefs –strongest held cognitions

• Things about the world we believe in

• Beliefs shape our reality

• Beliefs are our concept of the way things are.

More Things in the Black More Things in the Black BoxBoxValuesValues

Values are less intense than beliefsValues are less intense than beliefs• Values shape our concept of the way things should be. • Two types:

- Instrumental – values that we hold that serve as a means to an end or method of conduct.

- Terminal – “end states of existence”

•Values are a standard for guiding behavior.

More Black ThingsMore Black ThingsAttitudesAttitudes

An attitude is a predisposition to behave An attitude is a predisposition to behave toward or away from some object based on toward or away from some object based on knowledge and feeling about that object.knowledge and feeling about that object.

• Attitudes are less intensely held than values.

• A person can have numerous attitudes

AttitudesAttitudes

Three Components:Three Components:

- Cognitive –Knowing – Learn-Affective – Emotion – Feel- Conative – Behavior – Do

• Learn –Feel – Do is the traditional model

•Based on two factors: risk and habit.

AttitudesAttitudes

The process of forming or changing an The process of forming or changing an attitude is the process of persuasion.attitude is the process of persuasion.

• Conventional thinking: a positive attitude

toward the advertising will lead to, or at least

enhance, a positive attitude toward the product.

How Do Attitudes Work?How Do Attitudes Work?

Attitudes are a result or effect of Attitudes are a result or effect of persuasive communication.persuasive communication.

• Attitudes are also the result of direct experience with the object.

• Strongest attitudes occur when both

communication and experience occur.

Advertising and AttitudesAdvertising and Attitudes

Advertising can create an attitude where Advertising can create an attitude where none existed before.none existed before.

• Advertising can reinforce an existing attitude.

• Advertising can weaken an existing attitude.

Advertising and Attitude Advertising and Attitude FormationFormation

Russle H. Colley: Defining Advertising Russle H. Colley: Defining Advertising Goals for Measured Advertising Results Goals for Measured Advertising Results (DAGMAR)(DAGMAR)

Advertising results should be measured Advertising results should be measured by communication standards – by communication standards – sales is sales is not a communication effect.not a communication effect.

Communication

A process of gaining common understanding between sender and receiver of a message.

COMMUNICATIONCOMMUNICATIONObjectivesObjectives

Ensure correct transmittal of Ensure correct transmittal of information from issuer to receiver.information from issuer to receiver.

Build up common understanding

to prevent confusion or clash of personalities

BARRIERS TO BARRIERS TO COMMUNICATIONCOMMUNICATION

Being aware of these barriers will make us cautious in writing or saying anything.

1. EMOTIONAL1. EMOTIONAL

A person under emotional stress shuts A person under emotional stress shuts himself off to receptionhimself off to reception

• An emotional barrier is created between the issuer of the message and the receiver.

• Sender could be saying something different from what he wants to convey.

• Receiver may not receive message clearly.

2. USE OF WORDS2. USE OF WORDS

There are about 600,000 English English words There are about 600,000 English English words (according to Dr. Hayakawa, prominent linguist of (according to Dr. Hayakawa, prominent linguist of San Francisco State College)San Francisco State College)

– 2,000 are recognized, but not necessarily understood fully.– 200 words are used in daily business transactions

– 14,000 shades of meanings.

Use simple, common words to be understood.

3. FEELING OF 3. FEELING OF INSECURITYINSECURITY

It is natural to be insecure about things It is natural to be insecure about things you are not sure off.you are not sure off. When one is insecure, invariably facts are When one is insecure, invariably facts are

distorted.distorted.

• We become apprehensive when we are unaware:

–Our conclusions could be based on guesses or assumptions which could be totally wrong.

Most people get rattled when they receive a memorandum.

Marketing Marketing CommunicationsCommunications

The Means of getting your message The Means of getting your message across to your targeted markets.across to your targeted markets.

PROCESS OF PROCESS OF COMMUNICATIONCOMMUNICATION

How to make yourself understood by How to make yourself understood by the receiver of your message.the receiver of your message.

HOW TO LISTEN HOW TO LISTEN Misunderstanding results from poor listening.Misunderstanding results from poor listening.• Meanings are affected by voice tones, facial expressions.• Preconceived ideas make people opinionated, or dogmatic.

–Messages are screened

–Messages are interpreted on the basis of preconceived ideas, opinions, biases.

Listen attentively and objectively –

use eyes, ears, and heart.

Ask yourself:Ask yourself: What am I going to say?What am I going to say?

• Do I know what I am going to talk about?• Who is going to receive my communicationmessage?

• Is he under emotional stress? right frame of mind?

• What’s the best way to talk to him?

• Is he familiar with my subject? - Don’t assume that he knows.

• What are his likes, dislikes, interests, fears?

HOW TO BE HOW TO BE UNDERSTOOD CLEARLYUNDERSTOOD CLEARLY

Use simple wordsUse simple words

• Use right tone of voice.

• Write legibly.

• Do not assume your receiver knows what you are talking about. Provide details of what you are saying.

• Get feedback.

Steps in Steps in Developing Developing Effective Effective CommunicationCommunication

Developing Effective Developing Effective CommunicationsCommunications

Identify the Target AudienceIdentify the Target Audience Image analysisImage analysis

Familiarity scaleFamiliarity scale

Favorability scaleFavorability scale

Never Never Heard ofHeard of

Heard of Heard of OnlyOnly

Know a Know a Little BitLittle Bit

Know a Fair Know a Fair AmountAmount

Know Know Very WellVery Well

Very Very UnfavorableUnfavorable

Somewhat Somewhat UnfavorableUnfavorable

IndifferentIndifferent SomewhaSomewhat t FavorableFavorable

Very Very favorablefavorable

Familiarity-Favorability AnalysisFamiliarity-Favorability Analysis

Developing Effective Communications

Semantic differentialSemantic differential Developing a set of relevant dimensionsDeveloping a set of relevant dimensions Reducing the set of relevant dimensionsReducing the set of relevant dimensions Administering the instrument to a Administering the instrument to a

sample of respondentssample of respondents Averaging the resultsAveraging the results Checking on the image varianceChecking on the image variance

Images of Three Hospitals (Semantic Images of Three Hospitals (Semantic Differential)Differential)


Determine the Communication Determine the Communication ObjectiveObjective CognitiveCognitive AffectiveAffective BehavioralBehavioral Response-hierarchy modelsResponse-hierarchy models


Hierarchy-of effects modelHierarchy-of effects model AwarenessAwareness KnowledgeKnowledge LikingLiking PreferencePreference ConvictionConviction PurchasePurchase


Design the MessageDesign the Message AIDA modelAIDA model

Gain Gain attentionattention Hold Hold interestinterest Arouse Arouse desiredesire Elicit Elicit actionaction

Message ContentMessage Content Rational appealsRational appeals Emotional appealsEmotional appeals Moral appealsMoral appeals


Message StructureMessage Structure Message FormatMessage Format Message SourceMessage Source

Factors underlying source credibilityFactors underlying source credibility ExpertiseExpertise TrustworthinessTrustworthiness Principle of congruityPrinciple of congruity

lecture 7 lecture notes in marketing

Documents