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Dr. S. Borna MBA 671 Objectives The Communications Process Developing Effective Communications Deciding on the Marketing Communications Mix Managing and Coordinating Integrated Marketing Communications The Marketing Communications Mix Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations Personal Selling Direct Marketing Protect and/or Promote Company’s Image/products. Personal Presentations. Direct Communications With Individuals to Obtain an Immediate Response. Promotion Mix Decisions *Type of product market Consumer Goods Industrial Goods *Push vs. Pull strategy *Buyer Readiness Stage (next page) *P.L.C. stage Buyers Readiness Stage Awareness Knowledge Liking Preference Conviction Purchase Info Flow Planning flow Who Com mun. Says What Mess -age Noise In what channel To whom Chan nel With what effect ? Audience Assessment of Target Market Types of information useful for assessing target audience: 1. Descriptive Information -demographics -life styles -product-usage levels Audience Level of aggregation -individual -group -general public Level of Involvement 1. Cognitive stage 2. Affective stage 3. Action state “AIDA” MODEL Attention Interest Desire Action Audience: Cont. Audience Persuasability Persuasibility continuum sex self-confidence intelligence Assessment of Target Market cont. 2. Perceptual Information Image Analysis Consumers’ perception of your Product, Company etc. 3. Buying Process Information Communication Objectives Communication objectives should include four key points: 1. Definition of target audience 2. A statement of how target audience should change Communication Objectives cont. 3. A statement of how fast such change should occur 4. A statement as to the degree of change desired Communication Objectives Example To create awareness of the new product among 50% of the working women between the ages of 25 and 50 with incomes of $25,000 or more within the next three months. Channels Channel decisions are concerned with how best to deliver the message. 1. Which promotional-tool to use 2. Selection of specific activities within a promotional-tool ex. what kind of sale promotion to use The Channel Signifies the Medium Through Which the Message is Sent Non-personal channels: t.v., radio, newspapers… Verbal and written forms Channels 1. Personal Channels Advocate channel (Salesmen) Expert channel(Consultants, authorities, arbitrators) Social channel (word of mouth communication) 2. Nonpersonal Influence Channel Mass Media Non personal Influence Channel continued Atmospheres ( designed environments to stimulate a given feeling) Events (Designed occurrences) Interpersonal vs. Mass Communication Disadvantages of Mass Communication: Delayed feedback Inflexible Likelihood of selective screening Advantages Cost per capita is lower Accuracy to mass audience is higher Mass Media Mass media Opinion Leaders Opinion Followers Opinion Followers The Message A message is a summation of signs or signals attempting to convey one or more ideas. Designing The Message: Message Content Any statement about “product” to be communicated to the audience Product benefits Reasons to buy To remind the audience, etc. Denotative Meaning of Symbols Connotative Meaning of Symbols You will be greeted warmly at the door by one of our youthful staff members. You will be greeted warmly at the door by one of our juvenile staff members. Diet Coke vs. light coke Communication is facilitated when the communicator and the receiver have an overlap in their psychological fields of experience. Source’s Field of Experience Message Receiver’s Field of Experience source Encoder signal Decoder Destination The Receiver Actual Message Content Perceived Message Selective Perception Source Credibility According to Kelman and Hovland Expertness Trustworthiness Source Incongruity Source Congruity and Attitude Change Source Message + Congruent + + Incongruent - - Incongruent + - Congruent - Noise Internal both: for sender and receiver External Examples: Internal noise--illness, stress External noise--other commercials Feedback Feedback from the receiver Feedback from the message Feedback from the channel Summary of factors affecting communication effectiveness Communicator Source Credibility 1. Expertness, 2. Trustworthiness 3. Power 4. Likeability Source Incongruity Messages Message Function Message Structure Channels Personal Influence Channels Non personal influence ch. Audience Level of Aggregation Image Analysis Level of Involvement The Promotion Mix Decisions PROMOTION MIX: BUDGET DECISION Sales (Q) Q2 Q1 Q3 A3 $, A Advertising D3 The Sales Response PROMOTION MIX: BUDGET DECISION A A=Advertising P=Personal Selling A* Q=150 Q=100 Q=75 D* Constant-Budget line P