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Transcript of chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights...

Page 1: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Page 2: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

chapter

99

CommunicationCommunication

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Page 3: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Communication — Today’s Objectives

Objectives will be to:

Explore how the Internet affects marketing communications

Examine the marketing levers — offline and online

Discuss the six steps of the communication process

Explore integrated implementation of levers across the four relationship stages

Page 4: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Chapter 9: Communication

Page 5: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Page 6: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.1: The Effects of the 2Is on Communication

Individual controls information flow

Allows more targeted communications

Individualized marketing communications are more relevant to the consumer

Allows consumers to specify preferences

Facilitates relationship building through two-way communication

Allows tracking of consumer response to marketing communications

IndividualizationIndividualization InteractivityInteractivity

CommunicationCommunication

Page 7: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Personalization and Predicting Behavior

Prediction Based on Past Behavior Is Effective

Past Behavior Is Not a Good Predictor

Past behavior is predictive of preferences and current behavior

People who buy products of type x will be interested in products similar to type x

Not only is this an effective way to determine consumer preferences, it is also simple to track

Purchase behavior is driven by goals, not past behavior

Personal goals constantly change and past behavior does not provide much insight into these goals

Purchases such as gifts and infrequently purchased products like a TV set are examples of instances where past behavior is ineffective

Point-Counterpoint

Page 8: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Banner Ad(to promote awareness)

Banner Ad(to promote awareness)

Personalized Website

Permission e-mails

Individualized offerings

Personalized Website

Permission e-mails

Individualized offerings

Website Website

AwarenessAwareness CommitmentCommitmentExploration Exploration

2Is 2Is

User clicks on bannerto find out more

User can set up the webpageaccording to personal preferences,register for e-mails, give feedback,or make a purchase

One Seamless Experience

Exhibit 9.2: The 2Is Streamline Advancement Through the Stages

Page 9: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Page 10: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

On

line

Off

line

OutdoorAdvertising (Billboards)

Yellow Pages

Radio

Television

Brochures

Newspapers

Sponsorships

Magazines

Newsletters

Point-of-Purchase Displays

Customer Service

Direct Mailings

Telemarketing

Sales force/Face-

to-Face

Banner Ads

Rich Media

Search Engines

Interstitials

Classifieds & Listings

Wireless Devices

Websites

E-MailMarketing

Personal Websites

Exhibit 9.3: Online and Offline Levers

Mass Personal

Public Relations

Dynamic Ads

Interactive

Television

Page 11: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.4: Profiles of Online Media Types

Medium Advantages Disadvantages

Websites/Personalized websites

Communicate rich, detailed information that users can navigate at will; can track users and customize site accordingly.

Narrow reach

Banner ads Link directly to buying opportunity; easy to measure effectiveness; wide reach; potential for effective targeting

Low attention and click-through rates; short life; limited “pass-along” audience; very high clutter; fleeting exposure

Interstitials Catch users’ attention; link to buying opportunity Can annoy users; limited “pass-along” audience

Rich media Attention-getting; link to buying opportunity Can annoy users without broadband access

Dynamic ad placement Serves up customized ads to users in real time Difficult to execute well; can annoy users, other advertisers

Search engines Good credibility; high believability; guarantee of position available; significant audience at major sites

High competition; information overload; limited “pass-along”

Classifieds and listings

Relatively inexpensive, potential for wide exposure; qualified audience Clutter

Opt-in e-mail High demographic selectivity; high credibility; significant flexibility; proven high click-through rates; absolutely inexpensive; some pass-along

Requires substantial user base before effective; high clutter

Mass e-mail High reach; inexpensive; flexible Low attention and significant resentment (spam image)

Customer service Interested parties asking for help, thus high targeting value; generates loyal customers

Very expensive to provide comprehensive telephone, e-mail, and online support

Page 12: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Aggregate number of user clicks on a banner adAd ClicksAd Clicks

Number of times a banner ad is downloaded to a user’s browser and presumably looked at

Ad Views (Impressions)

Ad Views (Impressions)

Percentage of ad views that are clicked upon; also “Ad Click Rate”Click-ThroughClick-Through

Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates

CPC(Cost-per-Click)

CPC(Cost-per-Click)

Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500)CPMCPM

Measurement recorded in server log files that represent each file downloaded to a browser; since page design can include multiple files, hits are not a good guide for measuring traffic at a website

HitHit

Number of individuals who visit a website in a specified period of time; requires the use of registration or cookies to verify and identify unique usersUnique UsersUnique Users

A series of requests made by an individual at one site; if no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit — a 30 minute time-out is now standard

VisitsVisits

Exhibit 9.5: Internet Ad Terms

Page 13: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Page 14: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Step 1

Step 3

Step 2

Step 4

Step 5

Six Steps of the Communication Process

Step 6

Identify the Target Audience

Determine theCommunication Objective

Develop the Media Plan

Create the Message

Execute the Campaign

Evaluate the Effectiveness of the Campaign

Page 15: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

CommunicationCriteria

MediaCriteria

Chose Media Mix

Tie Back toOverall

Plan

AllocateSpending

Behavioral objectives

Available spending

Customer segments

Ability to further behavioral objectives

CPM

Ability to reach target segments

Direct mail, Internet, broadcast, print, point-of-sale, etc.

Tie media plan back to communications plan (e.g., make sure the media plan will drive the trial or awareness required)

Allocation of spending across media mix elements and time periods based on relative priority

Exhibit 9.9: A Process for Defining Media Choice and Mix

Page 16: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.11: Genuity Ads

Page 17: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.12: Genuity Website

Page 18: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Page 19: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.13: Exploring the Levers Across the Relationship Stages

Television, iTV Magazines and newspapers Radio Yellow pages Billboards / outdoor

advertising Banner ads

AwarenessAwareness

Television, iTV Magazines and

newspapers Radio

Rich media ads and dynamic ad placement

Website

E-mail

Direct mail

Telemarketing

Customer service

Sales force

Exploratory /Expansion

Exploratory /Expansion CommitmentCommitment

Terminate marketing

DissolutionDissolution

Search engines Listings Classifieds

E-mail

Direct mail Telemarketing

Public relations

Permission e-mail

Permission direct mail

Sales force

Website Personalized pages

Customer service

Sales force

Page 20: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Page 21: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.14: EBay Sponsored Link

Page 22: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Exhibit 9.16: EBay/Disney Cobranded Site

Page 23: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Example

Conclusion

Page 24: chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Communication — Conclusion

Effective marketing communications must be integrated and work together with synergy, and they must be consumer-centric

The communication marketing levers include various communication types that can be organized into the following categories: mass offline, personal offline, mass online, personal online

The communication process involves six steps: 1) Identify the target audience, 2) determine the communication objective, 3) develop the media plan, 4) create the message, 5) execute the campaign and 6) evaluate the effectiveness of the campaign

Specific levers can be applied that are appropriate for each relationship stage


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