chapter 14-communication strat

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CHAPTER XIV CHAPTER XIV The Communication of Customer The Communication of Customer Value Value and Integrated Marketing and Integrated Marketing Communications Strategy Communications Strategy

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Page 1: CHAPTER 14-Communication Strat

CHAPTER XIVCHAPTER XIV

The Communication of Customer The Communication of Customer Value Value

and Integrated Marketing and Integrated Marketing Communications StrategyCommunications Strategy

Page 2: CHAPTER 14-Communication Strat

INTEGRATED MARKETING COMMUNICATION STRATEGYINTEGRATED MARKETING COMMUNICATION STRATEGY

I. Marketing Communication MixI. Marketing Communication MixA.) AdvertisingA.) AdvertisingB.) Sales PromotionB.) Sales PromotionC.) Public RelationC.) Public RelationD.) Personal SellingD.) Personal SellingE.) Direct MarketingE.) Direct Marketing

II. Steps in Developing Effective CommunicationII. Steps in Developing Effective CommunicationA.) Identifying the Target AudienceA.) Identifying the Target AudienceB.) Determining the Communication ObjectiveB.) Determining the Communication ObjectiveC.) Designing a MessageC.) Designing a Message a.) Message Content a.) Message Content b.) Message Structure b.) Message Structure c.) Message Format c.) Message FormatD.) Choosing MediaD.) Choosing Media a.) Personal Communication Channels a.) Personal Communication Channels b.) Non-Personal Communication Channels b.) Non-Personal Communication ChannelsE.) Selecting the Message SourceE.) Selecting the Message Source

F.) Collecting FeedbackF.) Collecting Feedback

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III. Setting the Total Promotion Budget and MixIII. Setting the Total Promotion Budget and MixA.) Setting the Total Promotion BudgetA.) Setting the Total Promotion Budget a.) Affordable Method a.) Affordable Method b.) Percentage-of –Sales Method b.) Percentage-of –Sales Method c.) Competitive – Parity Method c.) Competitive – Parity Method d.) Objective – and – Task Method d.) Objective – and – Task Method

B.) Setting the Overall Promotion MixB.) Setting the Overall Promotion Mix a.) Nature of Each Promotion Tool a.) Nature of Each Promotion Tool b.) Promotion Mix Strategies b.) Promotion Mix Strategies

C.) Integrating the Promotion MixC.) Integrating the Promotion Mix

IV.) Socially Responsible Marketing CommunicationIV.) Socially Responsible Marketing CommunicationA.) Advertising and Sales PromotionA.) Advertising and Sales PromotionB.) Personal SellingB.) Personal Selling

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I. The Marketing Communication I. The Marketing Communication Mix (Promotion Mix)Mix (Promotion Mix)

The specific mix of advertising, The specific mix of advertising, personal selling, sales promotion, personal selling, sales promotion, and public relations a company and public relations a company uses to pursue its advertising and uses to pursue its advertising and marketing objectives.marketing objectives.

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A.) AdvertisingA.) Advertising

Any paid form of non-personal presentation Any paid form of non-personal presentation and promotion of ideas, goods or services and promotion of ideas, goods or services by an identified sponsorby an identified sponsor

B.) Sales Promotion Short-term incentives to encourage the Short-term incentives to encourage the purchase or sale of a purchase or sale of a product or servicesproduct or services

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C.) Public Relations

Building good relations with the company’s Building good relations with the company’s various publics by obtaining favorable various publics by obtaining favorable publicity, building up a good publicity, building up a good ““Corporate Corporate ImageImage”,”, and handling unfavorable rumors, and handling unfavorable rumors, stories and events.stories and events.

D.) Personal SellingPersonal presentation by the firm’s Personal presentation by the firm’s sales force for the purpose of making sales force for the purpose of making sales and building customer sales and building customer relationships.relationships.

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E.) Direct MarketingE.) Direct Marketing

Direct connection with carefully Direct connection with carefully targeted individual consumers to targeted individual consumers to both obtain an immediate both obtain an immediate response and cultivate lasting response and cultivate lasting customer relationships. customer relationships.

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Integrated Marketing Integrated Marketing Communications (IMC)Communications (IMC)

The concept under which a company The concept under which a company carefully integrates and coordinates carefully integrates and coordinates its many communications channels to its many communications channels to deliver a clear, consistent, and deliver a clear, consistent, and compelling message about the compelling message about the organization and its products.organization and its products.

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MediaMediaSenderSender EncodingEncoding

DecodingDecoding ReceiverReceiver

ResponseResponseFeedbackFeedback

NOISENOISE

Message

Elements in the Communication Process

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II. Steps in Developing Effective II. Steps in Developing Effective CommunicationCommunication

A.) Identifying the Target AudienceA.) Identifying the Target Audience

B.) Determining the Communication Objectives

Buyer-readiness Stages – The stages consumers normally passes through on their way to purchase, including awareness, knowledge, liking, preference, conviction and purchase.

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AWARENESS KNOWLEDGE LIKING

PREFERENCE CONVICTION PURCHASE

Buyer-readiness stages

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C.) Designing a MessageC.) Designing a Message

Developing an effective message Developing an effective message that could get the that could get the AttentionAttention, hold , hold InterestInterest, arouse , arouse DesireDesire and and obtain obtain ActionAction (AIDA model) (AIDA model)

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a.) Message Contenta.) Message Content

To figure out an appeal or theme that will To figure out an appeal or theme that will produce the desired response.produce the desired response.

1.) Rational Appeal – relate to the audience’s self- interest

-- to show that the product will produce the desired benefits.

2.) Emotional Appeal – attempt to stir up positive and negative emotions that can motivate purchase.

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b.) Message Structureb.) Message Structure

Three message-structure Issues:Three message-structure Issues:

1.) To draw conclusion or leave it to the 1.) To draw conclusion or leave it to the AudienceAudience

2.) Whether to use one-sided argument or 2.) Whether to use one-sided argument or two-sided argument. two-sided argument.

3.) To present the strongest argument first 3.) To present the strongest argument first or last part. or last part.

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c.) Message Formatc.) Message Format

Must be planned in order to Must be planned in order to attract the attention of the public.attract the attention of the public.

In any type of media that will be In any type of media that will be used, proper criteria should be used, proper criteria should be considered to deliver the considered to deliver the advertisementadvertisement

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D.) CHOOSING THE MEDIAD.) CHOOSING THE MEDIA

Communicator should select channels of Communicator should select channels of communication.communication.

A.) Personal Communication Channels – Channels through which two or more people communicate directly with each other including face-to-face, person to audience, over the telephone, or through e-mail.

B.) Non-personal Communication Channels – Media that carry messages without personal contact or feedback, including major media, atmosphere and events.

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E.) Selecting the Message SourceE.) Selecting the Message Source

Messages delivered by highly credible Messages delivered by highly credible sources are more persuasive.sources are more persuasive.

Picking the wrong spokesperson can Picking the wrong spokesperson can result in embarrassment and tarnished result in embarrassment and tarnished image.image.

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F.) Collecting FeedbackF.) Collecting Feedback

The communicator must research its The communicator must research its effect on the target audience.effect on the target audience.

Feedback on marketing Feedback on marketing communications may suggest communications may suggest changes in the promotion program or changes in the promotion program or in the product itself.in the product itself.

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III. III. Setting the Total Promotion Setting the Total Promotion Budget and MixBudget and Mix

A.) Setting the Total Promotion BudgetA.) Setting the Total Promotion Budget

a.) a.) Affordable MethodAffordable Method – Setting the – Setting the promotion budget at the level promotion budget at the level management thinks the management thinks the company can afford.company can afford.

b.) b.) Competitive-parity MethodCompetitive-parity Method – – Setting the promotion budget Setting the promotion budget

to to match the competitor’s match the competitor’s budget.budget.

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c.)c.) Percentage-of-Sales Method Percentage-of-Sales Method – – Setting the promotion budget at a certain % Setting the promotion budget at a certain % of current or forecasted sales or as a of current or forecasted sales or as a percentage of the unit of sales pricepercentage of the unit of sales price

d.) d.) Objective-and-task MethodObjective-and-task Method – – developing the promotion budget by:developing the promotion budget by:

1.) Defining specific objectives1.) Defining specific objectives2.) Determining the tasks to be performed2.) Determining the tasks to be performed3.) Estimating the costs of performing 3.) Estimating the costs of performing these tasks these tasks

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B. B. Setting the Overall Promotion MixSetting the Overall Promotion Mix

a.) Nature of Each Promotion Tool a.) Nature of Each Promotion Tool

1.) Advertising1.) Advertising

2.) Personal selling2.) Personal selling

3.) Sales promotion3.) Sales promotion

4.) Public Relation4.) Public Relation

5.) Direct marketing5.) Direct marketing

6.) Direct Marketing6.) Direct Marketing

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b.) Promotion Mix Strategiesb.) Promotion Mix Strategies

1.) 1.) Push StrategyPush Strategy – – Producer promotes the Producer promotes the product to wholesalers, the wholesalers product to wholesalers, the wholesalers promote to retailers, and the retailers promote to retailers, and the retailers promote to consumers.promote to consumers.

2.) Pull Strategy – Strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand

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Producer Retailers and Wholesalers Consumers

Producer marketing activities (personal selling trade promotion,

others)

Reseller Marketing activities (personal selling, advertising, sales promotion,

others)

Push Strategy

Producer ProducerRetailers and Wholesalers

Demand Demand

Producer Marketing activities( Consumer advertising, sales promotion, others)

Pull Strategy

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