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Chapter 5 Lecture Slides
Market Communications
Exhibits and Tables
Copyright © 2000 by Marketspace LLC
Exhibit 5-1: Evolution of Customer Buying Process
Buying Process
Awareness

Traditional
Market
Communication
Early Web
Market
Communication




Consideration
television ads
general
interest
magazines

buttons
banners
sponsorships

Source: Forrester Research, Monitor Analysis

television ads
general
interest
magazines
banners
Preference





niche
magazines
collateral
microsites
brochureware
website
Purchase





Loyalty
point-of-sale
promotions
direct
marketing
daily specials
sweepstakes
first-time order
incentives


product
experience
buyers’ clubs


e-mail alerts
newsletters
Last Updated: 01/10/01
Copyright  2000 by Marketspace LLC
Table 5-1: Framework for Marketing Communications
Individualized
Direct
Personalized
Traditional Mass
Marketing
General
Approaches
Offline
Online
Audience
Focus
Broad
Communication
Media
Last Updated: 01/10/01
Copyright  2000 by Marketspace LLC
Table 5-2: The Four Categories of Communications
Direct



Sales force
Retail sales
Customer-service reps
Personalized






General Approaches
Traditional Mass Marketing





Television
Radio
Print
Billboards
Superior customer service
Permission marketing
Personalized recommendations
Personalized advertisements
Personalized webpages
Personalized upsell
Personalized e-commerce








Banner ads
E-mail
Viral marketing
Portal sponsorship/exclusive agreements
Associate programs
Online and offline partnerships
Provide information to entice customer purchases
Leverage customer base
Last Updated: 01/10/01
Copyright  2000 by Marketspace LLC
Exhibit 5-2: What Is a Good Brand?
Marketing Communications
Core
Product /
Service

Mix of offline and online advertising

Emphasizes advantages to AAdvantage
membership, including non-expiring miles
and online services


Superior service
AAdvantage frequent-flier club
Award winning Admirals Club lounges
Comfortable chairs
Portable defibrillators on every flight

Safe, on-time transportation from A to B



Brand
Prestige
Last Updated: 01/10/01
Copyright  2000 by Marketspace LLC
Exhibit 5-3: A Simple Conceptual Model of Brand Equity
A good brand...
… provides positive
consumer responses...
Brand Awareness
 Depth
 Breadth
Market
Communication
… and benefits both target
customers and the firm
Customer Benefits
 Confidence
 Loyalty
 Satisfaction
Core
Product /
Service
Brand Associations
 Strength
 Relevant
 Consistent
 Valence
 Uniqueness
 Memorable
 Distinctive
Source: Keller (1996), Aaken (1996), Strategic Market Research Group, Marketspace Analysis
Firm Benefits
 Reduce marketing costs
 Increased margins
 Opportunity for brand
extensions
Last Updated: 01/10/01
Copyright  2000 by Marketspace LLC
Table 5-3: Schwab Marketing Communications
Direct


Individualized
Audience
Focus

Personalized
Targeted direct mail
Calls made to investors who
demonstrate difficulty (e.g., large
periods of inactivity)
“Red hot” calls for emergency
investment decisions
Traditional Mass Marketing




Television (network, cable, local)
Print media
National and local radio
Athletic event sponsorships

Personalized webpages
(mySchwab.com)
General Approaches




Broad


Banner ads
Affiliate sites
Sponsorship of sites (e.g., Schwab
sponsorship of Mini Center on Babycenter)
Leveraging customer base (e.g. investor
customer base leveraged for online banking)
Free information on site
Innovative approaches (e.g., online
commissions donated to Breast Cancer
Foundation)
Offline
Online
Communication Media
Last Updated: 01/10/01
Copyright  2000 by Marketspace LLC