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12. Marketing Communication
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Anything and Everything is an Ad.
Example: BMWs Lets motor campaign. Example: Burger Kings Have it your way.
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Burger Kings Subservient Chicken Microsite
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Have it your way.Viral Marketing
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Whopper Freakout Commercial
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Outline
Changes in Communication Environment Communication process Develop effective Communication Design the Message Creative Strategy Establish the Communication Mix
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Environmental Trends and Change in Promotion Strategies
Markets are more fragmented; Consumer viewing habits become more diverse and
media are more fragmented; The growth of targeted media vehicles.Marketers use less mass media and more targeted media.
The improvements in the quality and quantity of consumer information due to information technology;
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The growth and development of data mining. Target consumer through various direct-marketing methods.
More intensive price competition and the increase in retailers power (consolidation and scanner data). Shift the promotion focus from advertising to sales promotion. The promotion expenditures in 2007:Trade promotion (60%), 7% in 6 years; Consumer promotion (14%) Advertising (26%), down from 42% twenty years ago
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More Developments11Neff, Jack (2005), Advertising age, July 11, 2005.
P&G shuttered its Reflect.com customized beauty site. The Internet seems to reemerge as a credible ad
medium. Unilever tripled its online spending to $17.6 (3% of
media budget) million. The Internet evolves into a mass medium (in addition
to a tool for relationship marketing), at least for male-oriented-product launches.
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The Shifting Marketing Communications Model
Less broadcasting and more narrowcasting
Advertisers are shifting budgets away from network television to more targeted cost-effective, interactive, and engaging media
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Marketing Communications Mix
Advertising Sales Promotion Public Relations and Publicity Personal Selling Direct and Interactive Marketing
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The Difference among Various Tools
Customization One-way or Two-way Controllable or not
Integrated Marketing Communications
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Brand Positioning Attributes Benefits Values
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Haagen-Dazs Loves Honey Bees
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15Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998
The Communication Process
Slide17-2
Figure17.1
Source Transmits Message via Medium
Receiver Provides Feedback to Source
ReceivesDecodesMessage
SourceEncodesMessage
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Effective Communication(Fiske & Hartley)
Source: powerful or influential; with expertise or high likability
Message: consistent with audiences beliefs Peripheral issues Social context
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Figure 19.2: Steps in Developing Effective Communication
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Developing Effective Communications
Identifying the Target Audience Image Analysis
Determining the Communication Objectives
Three kinds of responses from the target audience:
-Cognitive (learn)
-Affective (feel)
-Behavioral (do)
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Identify the Target Audience
Image analysis Familiarity scale Favorability scale
Never Heard of
Heard of Only
Know a Little Bit
Know a Fair Amount
Know Very Well
Very Unfavorable
Somewhat Unfavorable
Indifferent Somewhat Favorable
Very favorable
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Figure 19.3: Familiarity-Favorability Analysis
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21Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998
Some Strategic Goals of Marketing Communications
Slide17-1
Table17.1
Strategic Goal
Create awareness
Build positive images
Build channel relationships
Description
Inform markets about products, brands, stores or organizations.
Develop positive evaluations in people 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
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Awareness
Knowledge
Liking
Preference
Conviction
Purchase
"Hierarchy-of-Effects" Model
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The Objective of this Advertisement?
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Design the Message
Content
Structure
Source
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25Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998
The AIDA ModelSlide17-3
Figure17.2
Action DesireInterestAttention
MarketingCommunications
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Message Content
Rational Appeals Emotional Appeals
Positive or negative? Moral Appeals
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Message Structure
Conclusion-drawing or not? One-sided or two-sided? The order of arguments presented
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Creative Strategy Informational appeals Transformational appeals
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Positive and Negative Appeals
Fear Guilt Shame Humor Love Pride Joy
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Communication Channels
PersonalAdvocate channels Social channelsExpert channels
NonpersonalMediaEventsAtmospheres
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Stimulating Personal Influence Channels
Identify influential individuals and devote extra attention to them
Create opinion leaders Use community influentials in testimonial
advertising Develop advertising with high conversation value Develop WOM referral channels Establish an electronic forum Use viral marketing
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Communication Budgets
Affordable Method Percentage-of-Sales Method Competitive-Parity Method
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Establishing the Promotion Mix
(Advertising )
(Sales Promotion)
(Public Relations and Publicity )
(Personal Selling)
34Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998
Comparing the Elements of the Communications Mix
Slide17-5
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
SalesPromotion
Advertising Publicity
Two-Way One-WayOne-Way One-Way
Low VariesHigh No Direct Cost
Yes NoYes No
No NoNo Yes
Yes NoNo No
No YesNo No
High VariesLow No Direct Cost
Medium-High HighHigh Low
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Communication Mix:Factors to consider:
-(Type of Product)
-(Push vs. Pull strategy)
-(Buyer readiness stage)
-(Product Life Cycle)
36Shan-Yu ChouIrwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998
Two Marketing Communications Approaches
Slide17-7
Figure17.3
End Users ResellersProducer
Resellers End Users
MarketingCommunications
MarketingCommunications
Request Products
Request Products
Producer
Marketing Communications
Push Strategy
Pull Strategy
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Coordinating Media to Build Brand Equity
Problem: Weak Brand Links Solution: Strengthening Communication
Effects
Weak Brand Links
Competitive Clutter Message content and structure Consumer involvement
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Strengthening Communication Effects
Brand Signatures Ad Retrieval Cues Media Interactions
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Got Milk Campaign
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The milk moustache campaign changed attitudes toward milk.
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Got Milk Campaign
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