What is Communications

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Mata kuliah : O0274 - INTEGRATED MARKETING COMMUNICATION

Tahun : 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

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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.

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What is Communications ? (1)

A Basic Communication Model

Sender Message Receiver

A Basic Communication Model with Feedback

Sender Message Receiver

Feedback

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What is Communications ? (2)

Marketing Communication Feedback

Marketer Message Customer

Market

Research

Analyst

Market

Research

Sales force

Report

Customer

Purchase

Activity

Customer

Relations

Report

Agency

Research

Customer Interest Activity ex Coupon redemption

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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

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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

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How Message are Understood

Overlapping Field of Perception Enable Communication to Take Place

Area Of Perceptual Overlap

Sender Encode Message Decode Receiver

Feedback

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The Theory of The Communication Process

9

How Message are Understood

The Communications Channel

From

Sender

Sender

Transmitter

Message

Receiver

Transmitter

To

Receiver

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How Message are Understood

Noise In The Communications Channel

From

Sender

Sender

Transmitter

Noise in the channel

Message

Receiver

Transmitter

To

Receiver

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Integrating The Model Within Overall Business Strategy

Communication

Decision

The Market

Marketer’s

Analysis And

Strategy

Market Data

Capture and

Storage

Corporate

Analysis and

Strategy

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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 Encode

Transmitter

Message

Transmitter

Decode Customer

Marketer’s

Analysis And

Strategy

Market Data

Capture and

Storage

Corporate

Analysis and

Strategy

Bina Nusantara University

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

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.

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Direct and Indirect Benefits

The Relationship of Marketing Communications Tools to Distance from Buying Point

Distant from the buying point

Close to or at the buying point

Direct Tools

Advertising

Personal Selling

Indirect Tools

Public Relations

Sponsorship

Corporate Identity

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

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Closeness to The Buying Decision (1)

7 th PS of Selling

• Prospecting

• Preparation

• Presentation

- Looking for potential customers

- Objective setting, customer research

- Demonstration, discussion

• Possible Problems - Handling objections

• Please Give Me an - Closing the sale or getting the order

Order

• Pen to Paper - Record detail accurately

• Post Sales Service - Building a continuing relationship

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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

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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

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Knowing Feelings Action

Action Knowing 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

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BE A WINNER ALWAYS!!

THE WINNER WILL NOT GIVE UP!

EVOKE YOURSELF!

MINDMAP YOUR THINKING!

BE A LEARNER AND YOU WILL SEE….!

GOODLUCK!!

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