customer initiated marketing communication model
TRANSCRIPT
Mohit PatiyalCSU-Melbourne 29/01/2011
Executive Summary
This report talks about different aspects of IMC-Integrated marketing
communication. Report is presented in two major sections, first section talks
about customer initiated marketing communication model developed by Duncan
(2005) and co-relating the model in context to rise of social media and citizen
journalism. Rise of social media via social networking sites as Facebook, twitter
and blogs etc. strengthen the organizations bond with the consumers. This also
provides the scope for two-way communication between the consumers and
organizations. Report also talks about who initiates the communication. It can
either be the conventional approach where consumers are the receivers, or the
other way where consumers are initiating the conversation by contacting their
relevant brands.
Second section of the report talks about basic consumer decision-
making process. Customer decision-making process involves different stages and
this section explains how organizations use different IMC tools at different stages
of the decision process to get customers from awareness stage to be the loyal
customers to the brand. Finally its shown that how different elements of IMC are
integrated to help customer to pass the decision making process.
Mohit PatiyalCSU-Melbourne 29/01/2011
Introduction
Griffith states “IMC means that all your company’s key product and corporate
messages, positioning, images and identity are coordinated across all marketing
communication venues”. (Griffith, 1997, p. 1). It’s evident that with the rise of
social media as Facebook and twitter, consumers are getting aware and closer to
their brands. Rise of social media has encouraged the consumers to communicate
with their brands with more flexibility than ever before. Organizations as well,
responding to the consumers with a lot of enthusiasm to make sure that their
doubts, issues will be addressed properly. This not only helps consumers to
understand their brand but also helps organization to develop long lasting
relations with their consumers. Duncan (2005) has developed customer
initiated communication model, which explains how consumers to communicate
to their brands using different social media tools. How this model works is
discussed in the first section of the report.
Consumers are aware of the products and services, but still not sure about
actual buying (Betman, 1979). This consumer decision process is described in
second section of the report and we will try to understand how companies use
different IMC tools at different stages of decision-making process to make sure
that they bring customers from awareness to their loyal customer’s pool.
Customer initiated marketing communication model
In this modern era, its not just advertising campaigns, public relations and
newspaper ads by which brands or organizations communicate with the target
prospects/customers. In reality its every element, person, activities associated
with the organization delivers the message to the customers. These visible or
invisible actions, activities make positive or negative influence on customers. The
Mohit PatiyalCSU-Melbourne 29/01/2011
appearance, behavior, service of the employee, product design and approach,
packaging, tone of the operator on the phone, attitude and approach of customer
care officer, all of these communicate with the customers. Customer reacts to
these actions and in his unconscious mind stores these messages to develop the
image of the brand (Belch & Powell, 2009). Customer uses his store perception to
decide about the personality and friendliness of the organization. So whenever a
customer comes in contact with the organization, he initiates a customer based
marketing communication model.
Brands observe these situations and eagerly seek to initiate two-way
communication with the customer and try to benefit with the content and
opportunity customer is giving to the organization. Duncan (2005) studied and
proposed a customer initiated communication model. As shown in fig. 1.1 below,
customer is the transmitter or initiator of communication and the organization is
considered as the receiver. It’s different to the conventional one-way marketing
approach where, customer is receiver of brand message.
Fig. 1.1- Customer initiated marketing communication model (Duncan, 2005)
ReceiverCompany
ChannelCompany
Blogs, Emails
FeedbackResponsive, Recognition, Respect
NoiseBusy Signals, Incomplete Information
MessageQuestion,
complaints
SourceCustomers
Mohit PatiyalCSU-Melbourne 29/01/2011
As proposed in above stated model by Duncan (2005), customers choose the
channels like emails, organization’s blogs on webpage, or even phone calls they
give opportunity to the organization’s to make new customers or retain the old
customers in long lasting relationship. The channel communications from the
customers could be complaints, enquiries about new products or services or any
other brand related content (Babin, Laurie A & Carder, Sheri Thompson (1996).
Measure of this two-way communication can provide companies with insight
into the customers and the trends in the market. When the channels identify
potential customers, companies then have great opportunity to entertain these
requests and turn them in long lasting loyal customers. Brand touch points are
the channel points where customers comes in direct or indirect contact with the
brand and tells the brand what they expect and are willing to pay for Duncan
(2005). Every open-ended communication from customers gives managers to
influence the customers about the brand, its products and service and close the
case by retaining the customers. Proper monitoring of these points directs the
managers to focus on the plan to approach the customers in their comfortable
environment. There is always noise in the market, which is the result of busy
signals, company delay, or incomplete information, and pushes customers to
indulge in two-way communication with the brand (Smith & Christine, 1995). If
customers are not satisfied with the product they tend to respond back to the
companies, and then companies provide suitable solutions to customers. It’s a
cycle but companies have to be quick and accurate in terms of their plan to retain
the customers in this competitive era.
Rise of social media has broadened the
channels and has given customers more tools to interact with the brand of their
choice. Social media sites as Facebook, twitter and MySpace are now connected
to the major brands. They have their own interactive web-space, blogs where
customers can interact with the brands one to one. This has helped companies as
customers feel more attached and close to their brands and can express their
thought more clearly and in an efficient manner. Fig. 1.2 below shows that
companies now have increased their social marketing budget in greater folds to
get closer to their customers.
Mohit PatiyalCSU-Melbourne 29/01/2011
Fig. 1.2 – How companies have increased their social marketing budget
Wayne Homeschek, founder of Pie-face, announced in their recent budget to
invest 500,000 of their marketing budget on social media marketing. Wayne
believes that they use social media to offer promotions and it’s an effective
approach to get closer to the customers in an interesting way. Kim Russell,
marketing manager for Nando’s Australia states, “they are going to invest most of
their budget in social media marketing as it’s the place where our customers live
and breathe”. As consumers begin to make more and more purchasing decisions
on Internet via social media sites, it is worth for companies to invest and harvest
from social media marketing.
Cartoon showing social media growth
Mohit PatiyalCSU-Melbourne 29/01/2011
Fig. 1.3-Shows the increase and dominance of social media marketing
As shown above in fig. 1.3, Facebook leads the social marketing ladder with more
and more consumers using these communication models to build and maintain
relations with their consumers.
With the emergence of citizen journalism,
consumers are more involved in activities as blogs, articles and sharing their
experience with other readers. Consumers prefer to share their experience with
others and this might make an effect on brand’s image and companies now a
days focus on these blogs to maintain their image in the market. Companies now
have stated new approach of marketing and getting close to consumers by
putting their advertisements on the blogs and tweets. These techniques gives
organizations a chance to make customers come to them, and express what they
Mohit PatiyalCSU-Melbourne 29/01/2011
think of specific brand, their experience and the changes they expect to see in the
brand.
Fig. 1.4- Most of social media sites encourage customers to follow for latest offers
Section Two: - Consumer decision making process
Belch (2009) describes consumer behavior as process and activities people
involve for searching, selecting, purchasing, evaluating, accessing, and disposing
off the products and services as per their needs and expectations. Some decision-
making processes are long term planning, research, evaluating process as buying
a car or looking for a new house investment, but on the other side some decision-
making processes are based on day-to-day life activities and needs. They might
be influenced by seeing something in store or followed by some flashy
marketing. These buying processes involve different stages, but some of them
bypass the stages and result in straight buying, as our lecturer-Belinda, bought
and wore eyelashes influenced by a friend. This example of sudden purchase
was not a compulsion and need of Belinda, but has resulted in adding grace to
her personality. Marketer’s focus on these undermines wishes and tries to target
their consumers. Fig 1.5 below shows different stages in consumer decision-
making process.
Mohit PatiyalCSU-Melbourne 29/01/2011
Fig. 1.5- Showing different consumer decision-making stages
Above stated figure states that consumer’s decision-making process comprises of
different stages through which buyer’s pass, evaluate them, analyzes them and
finally reach upon their decision. Decision making process also involves
psychological processes as well, which includes motivation, perception, attitude
formation, integration and learning.
First stage in consumer decision-making process is problem recognition, which
is linked to the motivation he develops to solve that problem. It’s the initiator of
the whole decision making process. Belch (2009) explains that problem
recognition is caused because of difference in the actual state of customer and
ideal state. Consumer tends to travel from actual state to his desired state and
starts thinking to reduce or emit this distance. Next step is to identify the source
of the problem. It might be due to several reasons. If customer is out of stock, it
demands for replacement and generates the problem. Simply replacing with the
usual brand customer makes this purchase decision. Dissatisfaction can also lead
to the problem, triggering the decision-making process. Change in situation and
related product purchase also develops problems and consumers tend to solve
them by initiating decision-making process. For example, moving from one place
to another results in different situations and demands for new products and
services, these actions and situations leads to purchase related decisions.
Next step is information search, which can be internal or external.
Internal search is generally scanning one’s memory and thinking about a product
or service. This can be based on previous experience of referred by friend or
family. But if internal sources are not enough, external information is required.
External search can be gathered by advertisements, or consumer awareness
websites, from where consumer can get complete knowledge of the product/
Mohit PatiyalCSU-Melbourne 29/01/2011
service. Once enough knowledge is gathered, next step is evaluation. This
depends on the consumer’s perception of the brand and his needs. The actual
buying process, with three possibilities, follows this step. First one is where to
buy from, next when to buy or finally not to buy. This depends upon previous
purchase experience, deals offered across dealers, time, market situation etc.
Once product is purchased, its evaluated against the desired use expectation.
This step is followed up by most of the companies in terms of advertisements,
emails, salesperson calls to make customer feel that he has made the right
decision. This helps organizations to build long lasting relations with the
consumer.
Organizations use IMC Tools to support customer’s decision-making process
As mentioned by Belch (2009), various IMC tools are available to enhance sales process. These tools can be used during different stages of consumer decision-making process and helps organizations to make customers inclined towards their specific brand. Fig 1.6 below shows different IMC tools available and implied by organizations during customer decision-making process.
Fig. 1.6- Different IMC tools available and employed
Mohit PatiyalCSU-Melbourne 29/01/2011
As evident from fig. 1.6, organizations use different IMC tools to encourage the
buying processes. These promotional programs are developed to focus on
ultimate customers, those planning to buy or both. It varies from product to
product thus; different tool is implemented at different stage. Promotional
programs are meant for the buyers of consumer products. Thus during the first
stage of consumer decision-making process, organizations employ mas
advertising, attracting potential customers towards their product. As its mass
approach, organizations consider this as efficient approach but at the same time
its difficult to measure the outcome.
Another tool used by organizations is
personal selling. It’s focused on certain customers and is generally applied at the
place of purchase. This approach is persuasive and organizations can give
complex information to the customers. Result of this approach is very
quantitative and helps the organizations to persuade the customer to walk from
awareness to being a loyal customer. This tool might be expensive and different
salespersons may provide different information. For example: - salespersons at
car showrooms focus on individual customers and can persuade customers to
join the brand, on the contrary another salesperson from the same
showroom/brand may provide some different information to the customer. This
might lead to conflict or may turn the customer down, but with coordinated
training, organizations can overcome this possibility. Personal selling is major
ingredient for intermediate customers. During information search process,
effective personal selling leads to a loyal customer. Buyers with special needs
need personal selling to find the best product to satisfy their needs.
Interactive and Internet marketing is two way marketing and used by
organizations to walk the customer from awareness to the final purchase. In this
stage, consumer is the initiator of communication and wants to know more about
the product/service. After sale process is complete, organizations follow up with
after sales support to retain the customer for long.
Public relations is an approach where organizations, evaluate public attributes,
identifies and evaluate individual or organization’s public interest and executes a
Mohit PatiyalCSU-Melbourne 29/01/2011
program to earn public acceptance and recognition. This enhances brand image
and brings consumers close to the brand. This needs to be followed by
advertisement or personal selling to make customer walk from awareness to the
loyal customer pool. Sponsorship is also another tool implied by the
organizations as part of spreading awareness and brand image. This followed by
advertisements and directed marketing brings consumers from awareness to the
group of loyal customers. For example: - Paris Hilton being offered lifetime
Starbucks membership, just for sponsoring and carrying Starbucks coffee with
her. This creates an image of the brand and consumers influenced by her, tends
to get closer to the brand-Starbucks. Also surfing brand-Rip-curl sponsor music
festivals teen music parties just to get closer to their potential consumers. These
actions create space for the brand in consumer’s mind and organizations using
other marketing tools make sure that these consumers start walking with the
brand and become loyal customers.
Fig. 1.7- How different companies use IMC tools to get closer to customers
As shown in Fig. 1.7, many companies now are taking personal perspective
approach to get closer to the customers. It involves broadcast media, print
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media, Internet, direct marketing, word of mouth, event and sponsorships and
point of purchase marketing techniques to take customers from awareness to
being loyal customers.
Reference: -
George E. Belch, Micheal A. Belch, Gayle Kerr, Irene Powell (2009), “Advertising and Promotion: an integrated marketing perspective”, McGraw Hill Pvt. Ltd -Australia.
Tom Duncan & Sandra E. Moriarty (1998), “A communication based model for managing relationships, Journal of Marketing”, Vol. 62,no. 2, p. 1-13.
Lindell, P. Griffith (1997), ”You need integrated attitude to develop IMC” (Marketing News, vol. 31, iss. 11, p. 6)
Babin, Laurie A & Carder, Sheri Thompson (1996): ”Viewers’ recognition of brands
placed within a film” (International Journal of Advertising, vol. 15, iss. 2, pp. 140-151)
T. Duncan (2005), “Principles of Advertising and IMC”, McGraw Hill, Illinois, pp. 117-
225.
James R. Betman, 1979, “Factors in consumers choice: a review”, Journal of
Marketing, vol. 43, no.2, pp.37-53.
Robert E. Smith & Christine A. Vogt, 1995, “The effect of integrating advertising
and negative word of mouth communications on message processing and
response”, Journal of consumer psychology, Vol.4, no. 2, pp. 133-151.
Fig. 1.1 – Developed in reference to < Tom Duncan, 2005, “The new principles of
advertising and promotion”, 2nd ed., McGraw-Hill/Irwin, New York>.
Fig.1.2-Studied and developed from <http://mashable.com/2009/03/23/social-
media-marketing-budgets> on 15th Sep’11 at 12:30 am.
Mohit PatiyalCSU-Melbourne 29/01/2011
Fig. 1.3- Viewed and developed on < http://social-networking-websites-
review.toptenreviews.com> on 12th Sep’11 at 4:30 pm.
Fig. 1.4- Viewed and developed on < http://social-networking-websites-
review.toptenreviews.com> on 10th Sep’11 at 8:00 pm.
Fig. 1.5- Developed in reference to < Belch, Powell & Kerr, 2009, “Advertising and
Promotion: an integrated marketing communication perspective”> on 12th Sep’11.