Dr. S. BornaMBA 671

ObjectivesObjectives

The Communications ProcessThe Communications Process Developing Effective CommunicationsDeveloping Effective Communications Deciding on the Marketing Deciding on the Marketing

Communications MixCommunications Mix Managing and Coordinating Integrated Managing and Coordinating Integrated

Marketing CommunicationsMarketing Communications

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 MarketingDirect Communications With Individuals to Obtain an Immediate Response.

Protect and/or Promote Company’s Image/products.

Personal Presentations.

The Marketing Communications The Marketing Communications MixMix

The Marketing Communications The Marketing Communications MixMix

Promotion Mix DecisionsPromotion Mix Decisions

*Type of product market*Type of product marketConsumer GoodsConsumer GoodsIndustrial GoodsIndustrial Goods

*Push vs. Pull strategy*Push vs. Pull strategy*Buyer Readiness Stage (next page)*Buyer Readiness Stage (next page)*P.L.C. stage*P.L.C. stage

PurchasePurchase

Conviction

Preference

Liking

Knowledge

Awareness

Buyers Readiness StageBuyers Readiness Stage

Info FlowInfo FlowPlanning flowPlanning flow

ComCommun.mun.

MessMess-age-age

ChanChannelnel

Audi-Audi-enceence

Who Says What Who Says What In whatIn whatchannel To whomchannel To whom

With what effect ?With what effect ?

NoiseNoise

Assessment of Target MarketAssessment of Target Market

Types of information useful forTypes of information useful forassessing target audience:assessing target audience:

1. Descriptive Information1. Descriptive Information -demographics-demographics -life styles-life styles -product-usage levels-product-usage levels

AudienceAudience

Level of aggregationLevel of aggregation-individual-individual-group-group-general public-general public

Level of InvolvementLevel of Involvement1. Cognitive stage1. Cognitive stage2. Affective stage2. Affective stage

3. Action state3. Action state

““AIDA”AIDA”MODELMODEL

AttentionAttentionInterestInterestDesireDesireActionAction

sexsexself-confi-self-confi-dencedenceintelligenceintelligence

Audience PersuasabilityAudience Persuasability

PersuasibilityPersuasibilitycontinuumcontinuum

Audience: Audience: Cont.Cont.

2. Perceptual Information2. Perceptual Information Image AnalysisImage Analysis Consumers’ perception of yourConsumers’ perception of your Product, Company etc.Product, Company etc.

3. Buying Process Information3. Buying Process Information

Assessment of Target Assessment of Target Market cont.Market cont.

Communication ObjectivesCommunication Objectives

Communication objectives Communication objectives should include four key points:should include four key points:

1. Definition of target audience1. Definition of target audience2. A statement of how target 2. A statement of how target audience should changeaudience should change

3. A statement of how fast such3. A statement of how fast such change should occurchange should occur

4. A statement as to the degree 4. A statement as to the degree of change desiredof change desired

Communication ObjectivesCommunication Objectives cont.cont.

Communication Objectives Communication Objectives

ExampleExampleTo create awareness of the newTo create awareness of the newproduct among product among 50%50% of the of the working womenworking women between the agesbetween the agesof 25 and 50 with incomes of of 25 and 50 with incomes of $25,000 $25,000 or more within the nextor more within the nextthreethree months.months.

ChannelsChannels

Channel decisions are concernedChannel decisions are concernedwith how best to deliver the with how best to deliver the message. message.

1. Which promotional-tool to use1. Which promotional-tool to use2. Selection of specific activities2. Selection of specific activities within a promotional-toolwithin a promotional-tool

ex. what kind of sale promotionex. what kind of sale promotionto useto use

The Channel Signifies the Medium The Channel Signifies the Medium Through Which the Message is SentThrough Which the Message is Sent

Non-personal channels:Non-personal channels:t.v., radio, newspapers…t.v., radio, newspapers…

Verbal and written formsVerbal and written forms

ChannelsChannels

1. 1. Personal ChannelsPersonal ChannelsAdvocate channel (Advocate channel (SalesmenSalesmen))

Expert channel(Expert channel(Consultants,Consultants, authorities, arbitratorsauthorities, arbitrators))

Social channelSocial channel ((word of mouthword of mouth communicationcommunication))

2. 2. Nonpersonal InfluenceNonpersonal Influence ChannelChannelMass MediaMass Media

Atmospheres ( designedAtmospheres ( designedenvironments to stimulateenvironments to stimulatea given feeling)a given feeling)

Events (Designed occurrences)Events (Designed occurrences)

Non personal Influence Non personal Influence Channel continuedChannel continued

Interpersonal vs. MassInterpersonal vs. MassCommunicationCommunication

Disadvantages of Mass Disadvantages of Mass Communication:Communication:

Delayed feedbackDelayed feedbackInflexibleInflexibleLikelihood of selective Likelihood of selective screeningscreening

Cost per capita is lowerCost per capita is lowerAccuracy to mass audience isAccuracy to mass audience ishigherhigher

AdvantagesAdvantages

Mass MediaMass Media

Opinion Opinion LeadersLeaders

Opinion Opinion FollowersFollowers

Mass mediaMass media

Opinion Opinion FollowersFollowers

The MessageThe Message

A message is a summation of A message is a summation of signs or signals attempting to signs or signals attempting to convey one or more ideas.convey one or more ideas.

Designing The Message:Designing The Message:Message ContentMessage Content

Any statement about “product”Any statement about “product”to be communicated to the to be communicated to the audienceaudience

Product benefitsProduct benefitsReasons to buyReasons to buyTo remind the audience, To remind the audience, etc.etc.

Denotative Meaning of SymbolsDenotative Meaning of SymbolsConnotative Meaning of SymbolsConnotative Meaning of Symbols

You will be greeted warmly at theYou will be greeted warmly at thedoor by one of our youthful staffdoor by one of our youthful staffmembers.members.

You will be greeted warmly at theYou will be greeted warmly at thedoor by one of our juvenile staffdoor by one of our juvenile staffmembers.members.

Diet Coke vs. light cokeDiet Coke vs. light coke

Communication is facilitated Communication is facilitated when the communicator and thewhen the communicator and thereceiver have an overlap in theirreceiver have an overlap in theirpsychological fields ofpsychological fields ofexperience.experience.

Source’sSource’sField ofField ofExperienceExperience

MessageMessage

Receiver’sReceiver’sField of Field of ExperienceExperience

sourcesource EncoderEncoder signalsignal

DestinationDestinationDecoderDecoder

The ReceiverThe Receiver

Actual Message ContentActual Message Content

Perceived MessagePerceived Message

Selective PerceptionSelective Perception

Source CredibilitySource Credibility

According to Kelman and According to Kelman and HovlandHovland

ExpertnessExpertnessTrustworthinessTrustworthiness

Source IncongruitySource Incongruity

Source Congruity and Attitude ChangeSource Congruity and Attitude Change

SourceSource Message Message

++ CongruentCongruent ++

++ IncongruentIncongruent --

-- IncongruentIncongruent ++

-- CongruentCongruent --

Internal both: for sender andInternal both: for sender and receiver receiver

ExternalExternal

Examples:Examples:Internal noise--illness, stressInternal noise--illness, stressExternal noise--otherExternal noise--other

commercialscommercials

NoiseNoise

FeedbackFeedback

Feedback from the receiverFeedback from the receiver

Feedback from the messageFeedback from the message

Feedback from the channelFeedback from the channel

Summary of factors affectingSummary of factors affectingcommunication effectivenesscommunication effectiveness

CommunicatorCommunicator

Source CredibilitySource Credibility

1. Expertness, 1. Expertness, 2. Trustworthiness2. Trustworthiness3. Power3. Power4. Likeability4. Likeability

Source IncongruitySource Incongruity

MessagesMessages

Message FunctionMessage Function

Message StructureMessage Structure

ChannelsChannels

Personal Influence ChannelsPersonal Influence Channels

Non personal influence ch.Non personal influence ch.

AudienceAudience

Level of AggregationLevel of Aggregation

Image AnalysisImage Analysis

Level of InvolvementLevel of Involvement

The PromotionThe PromotionMix DecisionsMix Decisions

SalesSales (Q)(Q)

P. Sel

ling

P. Sel

ling

D3D3The Sales ResponseThe Sales Response

AdvertisingAdvertising

Q3Q3

Q2Q2

Cons-mix-line

Cons-mix-lineCons-bud-line

Cons-bud-line

A3A3 $, A$, A

PROMOTION MIX:PROMOTION MIX:BUDGET DECISIONBUDGET DECISION

Q1Q1

A=AdvertisingA=Advertising

AA

A*A*

D*D*

Q=150Q=150

Q=100Q=100

Q=75Q=75

Constant-Budget lineConstant-Budget line

PP=Personal Selling=Personal Selling

PP

PROMOTION MIX:PROMOTION MIX:BUDGET DECISIONBUDGET DECISION