Download Advertising

WEEK 11:
CUSTOMER COMMUNICATION
BUSN 102 – Özge Can
2

Mad Men – What is advertising?
http://www.youtube.com/watch?v=N7w2bbBRBRA

http://www.youtube.com/watch?v=cT0d-ISXH5Q

New Approach to Customer
Communication:
16-3

Social Communication Model
 An
approach to communication based on
interactive social media and conversational
communication styles
The Social Communication Model:
16-4
Customer Communication Strategy:
16-5
1. Establish clear communication goals
2. Define compelling messages to help
achieve them
3. Outline a cost-effective communication
mix (“media mix” or “promotional mix”) to
engage target audiences
1. Clear Communication Goals
16-6
Generating awareness
 Providing information and creating positive
emotional connections
 Building preference
 Stimulating action
 Reminding past customers

2. Defining Customer Messages
16-7

Core Message:
 The
single most important idea an advertiser
hopes to convey to the target audience about its
products or the company
 Expressed
in a single sentence
 Companies having less control of their messages
3. Assembling the Communication Mix
16-8

Communication Mix:
A
blend of communication vehicles—
advertising, direct marketing, personal selling,
sales promotion, social media, and public
relations—that a company uses to reach current
and potential customers
 The
best mix depends on: product, market and
distribution channel factors
9
3. Assembling the Communication Mix
16-10

Push Strategy
A
promotional strategy that focuses on
intermediaries, motivating them to promote, or
push, products toward end users

Pull Strategy
A
promotional strategy that stimulates consumer
demand via advertising and other communication
efforts, thereby creating a pull effect through the
channel
3. Assembling the Communication Mix
16-11

Integrated Marketing Communications (IMC)
A
strategy of coordinating and integrating
communication and promotion efforts with
customers to ensure greater efficiency and
effectiveness
 Maximizing
message
clarity and consistency of the
Message Integration in Customer
Communication:
16-12
Communication Laws and Ethics
16-13






Marketing and sales messages must be truthful and
non-deceptive
You must back up your claims with evidence
“Bait and switch” advertising is illegal – marketing and
sales messages are considered binding contrasts
Marketing messages and websites aimed at children
are subject to special rules
You can’t use a person’s name, photo or other identity
without permission
Consumer privacy – behavioral targeting
Advertising
16-14

Advertising
 The
delivery of announcements and promotional
messages via time or space purchased in various
media
 Product
adversiting
 Comparative advertising
 Institutional advertising
 Advocacy advertising
Advertising
16-15

Institutional Advertising
 Advertising
that seeks to create goodwill and to
build a desired image for a company, rather than
to promote specific products

Advocacy Advertising
 Advertising
that presents a company’s opinions
on public issues such as education or health care
Advertising Appeals
16-16

Advertising Appeal
A
creative tactic designed to capture the
audience’s attention and promote preference for
the product or company being advertised
Seven basic appeals:
 Logic, emotion, humor, celebrity, sex, music,
scarcity
17


Psychology and Advertising:
http://www.youtube.com/watch?v=EC7VLjIw8hY
Advertising Media
16-18

Advertising Media
 Communication
channels, such as
newspapers,
magazines, radio,
television, fixed web,
mobile web, and
product replacement

Media Mix
A
combination of
print, broadcast,
online, and other
media used for an
advertising
campaign
19
Advertising Media
16-20

Two particular trends for the near future:
 The
blurring boundaries between advertising,
entertainment and value-added content
 Technical
innovations creating new advertising
tools and techniques (E.g. behavioral targeting
methods, sophisticated tracking and pricing
methods, hybrid media)
Direct Marketing
16-21

Direct Marketing
 Direct
communication other than personal sales
contacts designed to stimulate a measurable
response
 Mail,
email, search engine marketing, direct
response online, telephone, direct response
television
Personal Selling
16-22

Personal Selling
 One-on-one
interaction between a salesperson
and a prospective buyer
The Personal-Selling Process
16-23
Sales Promotion
16-24

Sales Promotion
A
wide range of events and activities designed to
promote a brand or stimulate interest in a product
1) Customer promotions
2) Trade promotions
1) Consumer Promotions
16-25

Coupons
 Printed
or electronic certificates that offer
discounts on particular items and are redeemed
at the time of purchase

Rebates
 Partial
reimbursement of price, offered as a
purchase incentive

Premiums
 Free
or bargain-priced items offered to encourage
consumers to buy a product
1) Consumer Promotions
16-26

Point-of-Purchase (POP) Display
 Advertising
or other display materials set up at
retail locations to promote products to potential
customers as they are making their purchase
decisions

Specialty Advertising
 Advertising
that appears on various items such as
coffee mugs, pens, and calendars, designed to
help keep a company’s name in front of
customers
2) Trade Promotions
16-27

Trade Promotions
 Sales-promotion
efforts aimed at
inducing distributors
or retailers to push a
producer’s products

Trade Allowances
 Discounts
or other
financial
considerations
offered by producers
to wholesalers and
retailers
Social Media and Public Relations
16-28

Social Media:
 Any
electronic media that transforms passive
audiences into active participants in the
communication process by allowing them to share
content, revise content, respond to content, or
contribute new content
 http://www.youtube.com/watch?v=0eUeL3n7fDs
 http://www.youtube.com/watch?v=Vqb8nKbOo-
c&feature=endscreen&NR=1
Social Media and Public Relations
16-30

Word of Mouth
 Communication
among customers and other
parties, transmitting information about companies
and products through online or offline personal
conversations
Social Media and Public Relations
16-31

Conversation Marketing
 An
approach to customer communication in which
companies initiate and facilitate conversations in
a networked community of potential buyers and
other interested parties
Social Media and Public Relations
16-33

Brand Communities
 Formal
or informal groups of people united by
their interest in and ownership of particular
products
Public Relations
16-34

Public Relations:
 Non-sales
communication that businesses have
with their various audiences (including both
communication with the general public and press
relations)
Public Relations
16-35

Press Release (News Release)
A
brief statement or video program released to
the press announcing new products,
management changes, sales performance, and
other potential news items

Press Conference (News Conference)
 An
in-person or online gathering of media
representatives at which companies announce
new information