The communication process

1
The communication process
Why encode?
company
Idea-gt symbols
Frame of reference Attitudes, values, beliefs
Sales person, media, public relations
2
Consumer Decision Process (Five-Seven Steps)
3
Four Steps in the Book

• Awareness
• Exploration
• Commitment
• Dissolution

4
Evolution of Customer Buying Process

• Consideration

• Preference

• Purchase

• Loyalty

• Awareness

• Buying Process

• Comparative ads
• Personal Selling

• Comparative ads
• Personal Selling

• point-of purchase promotions
• direct marketing

• Reminder Ads
• product experience
• buyers clubs

• Informative Ads
• tv, radio, mags, outdoor. PR
• Sales promos
• Free trial, deals, rebates
• Word-of-mouth

• Traditional MarketCommunication

• Early Web MarketCommunication

• microsites
• brochureware
• web site

• buttons
• banners
• sponsorships

• daily specials
• sweepstakes
• first-time order incentives

• e-mail alerts
• newsletters

• Banners
• Links

• Source Forrester Research, Monitor Analysis

5
Microsites

• Microsites are communications tools that enable
  targeted information exchanges. Microsite work is
  a typical need for a corporation that already has
  a large-scale, fully-functional presence on the
  internet, but wishes to fulfill specific
  marketing campaign or business goals involving
  customer and prospect cultivation.
• Strategically focused, high impact and brand
  intense, microsites provide a vehicle for
  micro-targeted communication to a key audience.
  Microsites are agenda-based web solutions that
  serve a strategic purpose. Product and service
  announcements
• software demos
• event marketing (trade shows, seminars)
• prospect qualification sales
• public relations
• customer cultivation
• branding enhancement

6
Four categories of Marketing Communications
Strategies
Customized
Personalized
Individualized
Audience Focus
Traditional Mass Marketing
General Approaches
Broad
Off-line
On-line
Communication Media
7
The Four Categories of Communications

• Personal selling
• Direct Marketing

General Approaches
Traditional Mass Marketing

• Web sites
• Banner Ads
• Search engines and shopbots
• Interstitials
• E-Mail (junk)
• Viral Marketing (Hotmail, NYTimes)
• Portal Sponsorship/Exclusive Agreements
• Associate/Affiliate Programs (directing to)
• On-line and Off-line Partnership Full range
• Provide Information to Entice Customers
• Leverage Customer Base reputation and trust

• Public relations
• Sales promotion
• Television
• Radio
• Magazines
• Newspapers
• Billboards

8
Mass communication

• Banner ads
• CPM Cost per thousand impressions Rates vary
  by popularity and reach
• If millions view site weekly flat fee
• Click-through rate -- times viewers go to
  advertisers website.
• Slotting fees for premium position, exclusivity
  in category, etc.
• Ad clicks, impressions, click-through, CPC (cost
  per click), CPM, Unique users (cookies), visits
  (30 minute time out).
• Interstitials runs between pages on a website
• On main page
• In new smaller pages (pop-ups, pop-unders)
• Rich media
• Interruptive and hated but better brand recall
  and click-though rates

9
Communication Objective

• 1. Build brand awareness, recall, knowledge,
  preference, liking
• 2. Lead to purchase promotions, coupons,
  sweepstakes
• For each marketing message, have a corresponding
  objective
• http//www.pepsi.com/pepsipromoscur/index.php
• http//www.sunnydelight.com/
• http//www.snapple.com/home.asp
• www.cnn.com advertiser links

10
The Media Plan

• 1. Communication Criteria Objectives, Budget,
  Segments
• 2. Media Criteria Appropriate for objectives,
  segments, and budget
• Possible objectives
• Brand awareness, consideration, preference,
  purchase, loyalty
• Increasing knowledge about a particular offering
  (Could fit in the first three stages)
• Making the brand more hip
• Reaching a new target
• 3. Media mix. Combine media to achieve
  consistency and efficiency
• 4. Allocate spending across media and over time
• 5. Evaluation and control (are objectives being
  met)

11
Ebay Case, p. 381

• Awareness Offline levers (ambassadors
  alliances) Online Levers (Furby)
• Exploration Offline Levers (ads on West Wing)
  Online Levers (keywrds on Google)
• Commitment eBay stores
• Dissolution kicking out bad users

12
www.monster.com
13
Monster.com
14
Monster.com discussion

• 1. What was the rationale for spending 15 of
  1999 advertising budget on a single super-bowl 30
  second spot?
• 2. The Monster.com-AOL allicance.
• America Online (AOL) and TMP Worldwide reached a
  content and marketing agreement on Dec. 1, 1999
  that called for Monster.com to be the exclusive
  provider of career search services over seven AOL
  brands, including Digital City (which has a
  contract with HotJobs.com).
• Monster.com will create co-branded sites allowing
  AOL members and visitors to search for jobs,
  apply online, research companies and choose
  personalized geographic areas to help with their
  job searches.
• As part of that deal, TMP agreed to pay 100
  million over the length of the four-year
  contract.

15
Monster.com discussion

• 3. How else is Monster.com building its brand?
• 4. How and why is Monster.com building
  communities?
• 5. How might Monster.com strengthen its franchise
  given Jeff Taylors options
• building its brand
• launching vertical extensions
• increasing geographical expansion