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Anything and Everything is an Ad. Example: BMW’s “Let’s motor” campaign. Example: Burger King’s “Have it your way.” 12. Marketing Communication Shan-Yu Chou 1 Burger King’s Subservient Chicken Microsite Shan-Yu Chou 2 Whopper Freakout Commercial Have it your way. Viral Marketing Shan-Yu Chou 3 Shan-Yu Chou 4 1 Environmental Trends and Change in Promotion Strategies Outline Changes in Communication Environment Communication process Develop effective Communication Design the Message Creative Strategy Establish the Communication Mix Shan-Yu Chou 5 Shan-Yu Chou 6 More Developments1 The growth and development of data mining. Target consumer through various directmarketing 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 Shan-Yu Chou 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; 1Neff, 7 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 maleoriented-product launches. Shan-Yu Chou 8 2 The Shifting Marketing Communications Model Marketing Communications Mix Less broadcasting and more narrowcasting Advertisers are shifting budgets away from network television to more targeted costeffective, interactive, and engaging media Shan-Yu Chou 9 Advertising Sales Promotion Public Relations and Publicity Personal Selling Direct and Interactive Marketing Shan-Yu Chou 10 Integrated Marketing Communications The Difference among Various Tools • • • • • Customization One-way or Two-way Controllable or not Shan-Yu Chou 11 Shan-Yu Chou 12 3 Haagen-Dazs Loves Honey Bees Brand Positioning Shan-Yu Chou Attributes Benefits Values Shan-Yu Chou 13 Shan-Yu Chou Slide 17-2 Figure 17.1 14 13 Shan-Yu Chou The Communication Process Effective Communication (Fiske & Hartley) Source Encodes Message Receives Decodes Message Source Transmits Message via Medium Receiver Provides Feedback to Source Irwin/McGraw-Hill Shan-Yu Chou 14 15 ?The McGraw-Hill Companies, Inc., 1998 Source: powerful or influential; with expertise or high likability Message: consistent with audience’s beliefs Peripheral issues Social context Shan-Yu Chou 16 4 Developing Effective Communications • 確定目標聽眾 Identifying the Target Audience Figure 19.2: Steps in Developing Effective Communication Image Analysis • 決定溝通目標 Determining the Communication Objectives Three kinds of responses from the target audience: -認知Cognitive (learn) -情感Affective (feel) -行為Behavioral (do) Shan-Yu Chou 17 Shan-Yu Chou 18 Figure 19.3: Familiarity-Favorability Analysis Identify the Target Audience – Image analysis • Familiarity scale • Favorability scale Never Heard of Very Unfavorable Heard of Only Somewhat Unfavorable Know a Little Bit Know a Fair Amount Indifferent Shan-Yu Chou Somewhat Favorable Know Very Well Very favorable 19 Shan-Yu Chou 20 5 Slide 17-1 Table 17.1 Some Strategic Goals of Marketing Communications Strategic Goal "Hierarchy-of-Effects" Model Description Create awareness Inform markets about products, brands, stores or organizations. Build positive images 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. Build channel relationships Retain customers Increase cooperation among channel members. Irwin/McGraw-Hill Awareness Knowledge Liking Preference Conviction Purchase Create value for customers, satisfy their wants and needs, and earn their loyalty. Shan-Yu Chou 21 ?The McGraw-Hill Companies, Inc., 1998 Shan-Yu Chou The Objective of this Advertisement? 訊息決策 Design the Message Shan-Yu Chou 22 23 Content Structure Source Shan-Yu Chou 24 6 Slide 17-3 Figure 17.2 The AIDA Model Message Content Marketing Communications Positive or negative? Attention Irwin/McGraw-Hill Rational Appeals Emotional Appeals Interest Shan-Yu Chou Desire Action 25 ?The McGraw-Hill Companies, Inc., 1998 Shan-Yu Chou 26 Creative Strategy Message Structure • Conclusion-drawing or not? • One-sided or two-sided? • The order of arguments presented Shan-Yu Chou Moral Appeals 27 Informational appeals Transformational appeals Shan-Yu Chou 28 7 Positive and Negative Appeals Communication Channels Fear Guilt Shame Humor Love Pride Joy Personal Advocate channels Social channels Expert channels Media Events Atmospheres Shan-Yu Chou 29 Shan-Yu Chou Stimulating Personal Influence Channels Nonpersonal Communication Budgets 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 Shan-Yu Chou 30 31 Affordable Method Percentage-of-Sales Method Competitive-Parity Method Shan-Yu Chou 32 8 Comparing the Elements of the Communications Mix Slide 17-5 Establishing the Promotion Mix Advertising 廣告 (Advertising ) 促銷 (Sales Promotion) 公共關係與宣傳報導(Public Relations and Publicity ) 人員推銷 (Personal Selling) Shan-Yu Chou 33 Sales Promotion Publicity Communications Mode One-Way Two-Way One-Way One-Way Marketer Control Over Message High Medium-High High Low Long Term, Ongoing Activity Yes Yes No No Considered an Unbiased Source No No No Yes Message can be Customized for each Customer No Yes No No Short Term Focus No No Yes No Cost per Contact Low High Varies Overall Cost High Low Varies No Direct Cost No Direct Cost Irwin/McGraw-Hill Slide 17-7 Communication Mix: Factors to consider: Personal Selling Figure 17.3 Shan-Yu Chou 34 ?The McGraw-Hill Companies, Inc., 1998 Two Marketing Communications Approaches Push Strategy -產品類型(Type of Product) Producer Marketing Communications Resellers Marketing Communications End Users -推式或拉式策略(Push vs. Pull strategy) Pull Strategy -購買準備階段(Buyer readiness stage) Marketing Communications -產品生命週期階段(Product Life Cycle) Producer Shan-Yu Chou 35 Irwin/McGraw-Hill Request Products Resellers Shan-Yu Chou Request Products End Users 36 ?The McGraw-Hill Companies, Inc., 1998 9 Coordinating Media to Build Brand Equity Weak Brand Links Problem: Weak Brand Links Solution: Strengthening Communication Effects Shan-Yu Chou 37 Strengthening Communication Effects Competitive Clutter Message content and structure Consumer involvement Shan-Yu Chou 38 Got Milk Campaign Brand Signatures Ad Retrieval Cues Media Interactions Shan-Yu Chou The milk moustache campaign changed attitudes toward milk. 39 Shan-Yu Chou 40 10 Got Milk Campaign Shan-Yu Chou 41 Shan-Yu Chou 41 11