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Mata kuliah Tahun : O0274 - INTEGRATED MARKETING COMMUNICATION : 2009/2010 THE THEORY OF COMMUNICATION PROCESS (TCP) Pertemuan 5 & 6 Communication Process and The Marketing Mix Learning Objectives Understand how communication tools convey direct and indirect benefits Distinguish different types of customer and the different stages in the buying readiness process Contrast different hierarchy of effect models Appreciate the response curves of the main communications tools Understand the communications mix characteristics for industrial and consumer markets Communication in push and pull marketing strategies Understand the principles of integrated marketing communications Bina Nusantara University 3 COMMUNICATION Communications…… Is an interpersonal activity The sender will need to identify in advance the person to whom they wish to send the message and will therefore need to know how the receiver will interpret it The sender will need to persuade the receiver that the message is worth listening to and the message itself will need to be in a form of language which the receiver can understand There will need to be a clear and unobstructed route or channel through which the message has been received and understood. Bina Nusantara University 4 What is Communications ? (1) A Basic Communication Model Sender Message Receiver A Basic Communication Model with Feedback Sender Message Receiver Feedback Bina Nusantara University 5 What is Communications ? (2) Marketing Communication Feedback Marketer Message Market Research Analyst Market Research Sales force Report Customer Purchase Activity Customer Customer Agency Relations Research Report Customer Interest Activity ex Coupon redemption Bina Nusantara University 6 What is Communications ? (3) Common Sources of Error in Marketing Communications Feedback Market Research Poor quastionnaire Unrepresentative sampe of the market Badly trained researchers Failure to analyse the result accuratelly Salesforce Report Sales representative will often not report information which reflect badly on their own performance They will ofter report only information they are asked for As sales report information is processed by sales management information which reflects negatively on the salesforce performance will be edited out Aales representative sometimes don’t spot significant events in the market place Bina Nusantara University 7 What is Communications ? (4) Common Sources of Error in Marketing Communications Feedback Customer Interest Activity Customer will report complaints more often than satisfaction Rate of coupon redemption will be affected by special factors built into the design of each coupon promotion The novelty factor boosts sales to new customers but sales tail off as the number of repeat purchase decline Agency Research Agencies depend on selling their services and their research will tend to reflect a need for the services they provide Bina Nusantara University 8 How Message are Understood Overlapping Field of Perception Enable Communication to Take Place Area Of Perceptual Overlap Sender Encode Message Decode Receiver Feedback Bina Nusantara University The Theory of The Communication Process 9 How Message are Understood The Communications Channel From Sender Bina Nusantara University Sender Transmitter Message The Theory of The Communication Process Receiver Transmitter To Receiver 10 How Message are Understood Noise In The Communications Channel Noise in the channel From Sender Bina Nusantara University Sender Transmitter Message Receiver Transmitter The Theory of The Communication Process To Receiver 11 Integrating The Model Within Overall Business Strategy Communication Decision Marketer’s Analysis And Strategy Market Data Capture and Storage Corporate Analysis and Strategy Bina Nusantara University The Market Market Research Analysis Market Research Sales force Reports Customer Purchase Activity Customer Relations Reports Agency Research Customer Interest Activity eg coupon redemption Feedback box The Theory of The Communication Process Integration of Market Feedback information and Strategy development 12 Integrating The Model Within Overall Business Strategy Communication Decision Marketer’s Analysis And Strategy Market Data Capture and Storage Corporate Analysis and Strategy Bina Nusantara University Encode Transmitter Message Market Research Analysis Market Research Sales force Reports Customer Purchase Activity Customer Relations Reports Agency Research Transmitter Decode Customer Customer Interest Activity eg coupon redemption Feedback box The Theory of The Communication Process 13 The Special Features of Marketing Communications Marketing Communications is a systematic relationship between a business and its market in which the parameter assembles a wide variety of ideas, designs, messages, media, shapes, forms and colours, both to communicate ideas to, and to stimulate a particular perception of products and services by, individual people who have been aggregated into a target market, and it is called Marketing Mix. Bina Nusantara University 14 Direct and Indirect Benefits The Relationship of Marketing Communications Tools to Distance from Buying Point Direct Tools Indirect Tools Distant from the buying point Advertising Public Relations Sponsorship Corporate Identity Close to or at the buying point Personal Selling Point of Sales Promotions Other Sales Promotions Close to and/ or distant from the buying point Direct Marketing Promotions Direct Mail Design Word of Mouth Bina Nusantara University 15 Closeness to The Buying Decision (1) 7th PS of Selling • Prospecting • Preparation • Presentation • Possible Problems • Please Give Me an Order • Pen to Paper • Post Sales Service Bina Nusantara University - Looking for potential customers Objective setting, customer research Demonstration, discussion Handling objections Closing the sale or getting the order - Record detail accurately - Building a continuing relationship The Communication Process and The Marketing Mix 16 Closeness to The Buying Decision (2) Type of Point of Sale Communications • Incentives on the shelf or pack or attached to goods display Encourage customer to try a new product or experiment with a change of brand and included price-off offers • Point of purchase advertising Advertising message created and displayed at the point where the customer pays for goods, usually at or close to a till or check out Bina Nusantara University The Communication Process and The Marketing Mix 17 State of Mind of The Customer 1. Learning Customer : Stages in the buying – readiness process Buying Problem Knowing Feelings Action 2. Self-justifying Customers : stages in the buying-readiness process Buying Problem Knowing Feelings Action 3. Routine Customers: Stages in the buying-readiness process Buying Problem Knowing Action Feelings 4. Professional Customers : stages in the buying – readiness process When negotiating A supply contract Routine buying From an established Supply contract Bina Nusantara University Knowing Action Feelings Knowing Action Feelings 18 The Six Stages of The SOSTAC Marketing Communications Plan STAGE S Situation : Where are we Now ? 1 O Objectives : Where do we want to go ? 2 S Strategy : How do we get there ? 3 T Tactics : What specific tactics will fulfill the strategy ? 4 A Action : What detailed actions are needed for each tactics ? 5 C Control : How do we know we have arrived ? 6 Bina Nusantara University 19 BE A WINNER ALWAYS!! THE WINNER WILL NOT GIVE UP! EVOKE YOURSELF! MINDMAP YOUR THINKING! BE A LEARNER AND YOU WILL SEE….! GOODLUCK!! Bina Nusantara University 20