topic 10 communicating customer value. objectives introducing various promotion mix tools examining...
TRANSCRIPT
![Page 1: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/1.jpg)
Topic 10 Communicating customer value
![Page 2: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/2.jpg)
Objectives
• Introducing various promotion mix tools• Examining the rapidly changing communication
environment and the need for integrated marketing communication
• Discussing the steps in developing marketing communications
![Page 3: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/3.jpg)
AdvertisingAdvertising
Personal SellingPersonal Selling
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Sales Promotion Short-term Incentives to Encourage Trial or Purchase.
Public Relations
Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.
Protect and/or Promote Company’s Image/products.
Personal Presentations.
The Marketing Communications Mix
![Page 4: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/4.jpg)
New marketing communications landscape(1)
• Consumers are changing– Better informed and more communications empowered– Seek out information on their own; exchange brand-
related information; or even create their own marketing messages
![Page 5: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/5.jpg)
New marketing communications landscape(2)
• Marketing strategies are changing– As mass markets have fragmented, marketers are shifting
away from mass marketing.– Developing focused marketing programs designed to build
closer relationships with customers in more narrowly defined micro-markets.
![Page 6: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/6.jpg)
Integrated marketing communication (IMC)
• Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.– Touch point (where the customer may encounter the
company and its brands)
Think about all the ways you interact with companies such as Nike
![Page 7: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/7.jpg)
Elements in the Communication Process
SENDERSENDER
NoiseNoise
![Page 8: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/8.jpg)
Communication process• Sender: the party sending the message to another party• Encoding: the process of putting though into symbolic form • Message: the set of symbols that the sender transmits• Media: the communication channels through which the message moves
from sender to receiver• Decoding: the process by which the receiver assigns meaning to the
symbols encoded by the sender• Receiver: the party receiving the message sent by another party• Response: the reactions of the receiver after being exposed to the message• Feedback: the part of the receiver’s response communicated back to the
sender• Noise: the unplanned static or distortion during the communication
process, which results in the receiver’s getting a different message than the one the sender sent.
![Page 9: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/9.jpg)
Elements in the Communication Process
SENDERSENDER
NoiseNoise
![Page 10: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/10.jpg)
Case study: McDonald’s “I’m lovin’ it” campaign
• Sender: McDonald’s• Encoding: McDonald’s advertising agency assembles words,
sounds, and illustrations into an ad. That will convey the intended message.
• Message: the actual McDonald’s ad• Media: television and the specific television programs that
McDonald’s selects
![Page 11: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/11.jpg)
Case study McDonald’s “I’m lovin’ it” campaign
![Page 12: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/12.jpg)
Case study: McDonald’s “I’m lovin’ it” campaign
• Receiver: the customer who watches the McDonald’s ad.• Decoding: a consumer watches the McDonald’s ad And interprets the
words and images it contains.• Response: any of hundreds of possible responses, such as the consumer
likes McDonald’s better, is more likely to eat at McDonald’s next time, hums the “I’m lovin’ it” jingle, or does nothing
• Feedback: McDonald’s research shows that consumers are struck by and remember the ad, or consumers write
• Noise: the consumer it distracted while watching the commercial misses its key points
![Page 13: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/13.jpg)
Steps in developing effective marketing communications
Step 1. Identifying the Target AudienceStep 1. Identifying the Target Audience
PurchasePurchase
Conviction
Preference
Liking
Knowledge
Awareness
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
![Page 14: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/14.jpg)
Step 3. Designing the MessageStep 3. Designing the Message
What to say?
How to say?
![Page 15: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/15.jpg)
Rational appeals: relate to the audience’s self-interest. They show that the product will produce the desired benefits.
![Page 16: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/16.jpg)
Emotional appeals: stir up either negative or positive emotions that can motivate purchase.
e.g. love , joy, humor, fear and guilty
![Page 17: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/17.jpg)
![Page 18: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/18.jpg)
Moral appeals: direct the audience’s sense of what is “right” and “proper”.
![Page 19: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/19.jpg)
Step 4. Select Communications ChannelStep 4. Select Communications Channel
Non-personal CommunicationChannels
Major media, atmospheres, events
Personal CommunicationChannels
Face to face, on the phone, through mail or e-mail, internet ”chat”Controlled by company Vs. WOM influence
![Page 20: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/20.jpg)
Step 5. selecting the message sourceStep 5. selecting the message source
Step 6. collecting feedbackStep 6. collecting feedback
![Page 21: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/21.jpg)
CompetitiveParity
Setting the promotion budget to match
competitors’ outlays
Objective & TaskDeveloping the budget by (1)defining specific objectives; (2) determining the tasks that must be performed to achieve these objectives and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
AffordableSetting the promotion
budget at the level management thinks the
company can afford.
% Of SalesSetting the promotion budget at a percentage of current or
forecasted sales
Setting the total promotion budget
![Page 22: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/22.jpg)
Decide on Communications MixDecide on Communications Mix
AdvertisingPublic, Pervasive, Expressive, Impersonal
AdvertisingPublic, Pervasive, Expressive, Impersonal
Sales PromotionCommunication, Incentive, Invitation
Sales PromotionCommunication, Incentive, Invitation
Public Relations & PublicityCredibility, Surprise, Dramatization
Public Relations & PublicityCredibility, Surprise, Dramatization
Personal SellingPersonal Confrontation, Cultivation, Response
Personal SellingPersonal Confrontation, Cultivation, Response
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
![Page 23: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/23.jpg)
Product Life-Cycle Stage
Type of Product/ Market
Push vs. Pull Strategy
Buyer/ Readiness
Stage
Factors in developing promotion mix strategies
![Page 24: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/24.jpg)
Push Versus Pull Strategy
Producer
Producer
Interme-diaries
Producer Marketingactivities
End users
Reseller Marketingactivities
Demand Interme-diaries
Demand
Push Strategy
Pull Strategy
End users
Producer Marketing activities
Demand
![Page 25: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/25.jpg)
Objectives SettingObjectives Setting
Budget DecisionsBudget Decisions
Message DecisionsMessage Decisions Media DecisionsMedia Decisions
Campaign EvaluationCampaign Evaluation
Major decisions in advertising
![Page 26: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/26.jpg)
Informative AdvertisingBuild Primary Demand
Informative AdvertisingBuild Primary Demand
Persuasive AdvertisingBuild Selective DemandPersuasive AdvertisingBuild Selective Demand
Comparison AdvertisingCompares One Brand to Another
Comparison AdvertisingCompares One Brand to Another
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Advertising Objectives
• Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time
![Page 27: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/27.jpg)
Advertising Budget Factors
Stage in the Product Life Cycle
Market Share &Consumer Base
Competition &Clutter
AdvertisingFrequency
ProductSubstitutability
![Page 28: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/28.jpg)
Profiles of Major Media TypesProfiles of Major Media Types
NewspapersAdvantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; smallpass-along audience
TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity
Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
![Page 29: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/29.jpg)
RadioAdvantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences
MagazinesAdvantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation; no guarantee of position
OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition
Limitations: Little audience selectivity; creative limitations
Profiles of Major Media TypesProfiles of Major Media Types
![Page 30: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/30.jpg)
TypicalMessageExecution
Styles
TypicalMessageExecution
Styles
TestimonialEvidence
TestimonialEvidence Slice of LifeSlice of Life
ScientificEvidence
ScientificEvidence
LifestyleLifestyle
TechnicalExpertise
TechnicalExpertise
FantasyFantasy
MusicalMusical
PersonalitySymbol
PersonalitySymbol
Mood orImage
Mood orImage
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Advertising strategy message execution
![Page 31: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/31.jpg)
Advertising Evaluation
Advertising Program EvaluationAdvertising Program Evaluation
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
![Page 32: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/32.jpg)
Why the increase in Sales Promotion?
• Growing retailer power• Declining brand loyalty• Increased promotional sensitivity• Brand proliferation• Fragmentation of consumer market• Short-term focus• Increased managerial accountability• Competition• Clutter
![Page 33: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/33.jpg)
Channels of Sales Promotions
MANUFACTURER
RETAILER
TradeTradePromotionsPromotions
CONSUMER
ConsumerConsumerPromotionsPromotions
Push
PushPullRetailRetail
PromotionsPromotions
![Page 34: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/34.jpg)
Consumer-Promotion Objectives Consumer-Promotion Tools
Point-of-PurchaseDisplays
Point-of-PurchaseDisplays
PremiumsPremiums
Price PacksPrice Packs
Cash RefundsCash Refunds
CouponsCoupons
SamplesSamples
Patronage Rewards
Patronage Rewards
GamesGames
SweepstakesSweepstakes
ContestsContests
AdvertisingSpecialties
AdvertisingSpecialtiesPatronage Rewards
Entice Consumers to Try a New Product
Entice Consumers to Try a New Product
Lure Customers AwayFrom Competitors’ Products
Lure Customers AwayFrom Competitors’ Products
Get Consumers to “Load Up’on a Mature Product
Get Consumers to “Load Up’on a Mature Product
Hold & Reward Loyal Customers
Hold & Reward Loyal Customers
Consumer Relationship Building
Consumer Relationship Building
Consumer promotion
![Page 35: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/35.jpg)
“Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997
• Examination of “deal proneness” among consumers in a supermarket setting
• Surveys & Grocery Receipts used• Eight types of deals:
– Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon
““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, Liechtenstein, Burton, & Netemeyer& Netemeyer
““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, Liechtenstein, Burton, & Netemeyer& Netemeyer
Cluster analysis yielded two interpretable Cluster analysis yielded two interpretable results:results:
49%49% are “deal prone,” are “deal prone,” 51%51% not not 24%24% High “Deal prone,” High “Deal prone,” 50%50%
intermediate, intermediate, 26%26% deal insensitive deal insensitive ““Deal-proneness” a generalized Deal-proneness” a generalized
construct - (crosses type of promotion)construct - (crosses type of promotion) Younger & Less educated more likely to Younger & Less educated more likely to
be deal pronebe deal prone
![Page 36: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/36.jpg)
Trade-Promotion ObjectivesTrade-Promotion Tools
Specialty Advertising
Items
Specialty Advertising
ItemsContestsContests
Free GoodsFree Goods
Buy-BackGuarantees
Buy-BackGuarantees
AllowancesAllowances
Price-OffsPrice-Offs
Patronage Rewards
Patronage Rewards
Push MoneyPush Money
DiscountsDiscounts
PremiumsPremiums
Displays
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Trade Promotions
![Page 37: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/37.jpg)
Business-Promotion Objectives Business-Promotion Tools
Generate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Business-to-Business Promotion
![Page 38: Topic 10 Communicating customer value. Objectives Introducing various promotion mix tools Examining the rapidly changing communication environment and](https://reader036.vdocuments.site/reader036/viewer/2022081516/56649e415503460f94b3327c/html5/thumbnails/38.jpg)
SpecialEvents
SpecialEvents
Written MaterialsWritten
Materials
Corporate Identity
Materials
Corporate Identity
Materials
SpeechesSpeeches
NewsNews
AudiovisualMaterials
AudiovisualMaterials
Public Service
Activities
Public Service
Activities
Web SiteWeb Site
Major public relation tools