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Week 11: CUSTOMER COMMUNICATION

Week 11: CUSTOMER COMMUNICATION. BUSN 102 – Özge Can. 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 :. Social Communication Model

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Week 11: CUSTOMER COMMUNICATION

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  1. 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

  3. New Approach to Customer Communication: • Social Communication Model • An approach to communication based on interactive social media and conversational communication styles

  4. The Social Communication Model:

  5. Customer Communication Strategy: 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

  6. 1. ClearCommunication Goals • Generating awareness • Providing information and creating positive emotional connections • Building preference • Stimulating action • Reminding past customers

  7. 2. Defining Customer Messages • 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

  8. 3. Assembling the Communication Mix • Communication Mix: • A blend of communication vehicles— advertising, direct marketing, personal selling, sales promotion, social media, and public relations—thata 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 • 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

  10. 3. Assembling the Communication Mix • Integrated Marketing Communications (IMC) • A strategy of coordinating and integrating communication and promotion efforts with customers to ensure greater efficiency and effectiveness • Maximizing clarity and consistency of the message

  11. Message Integration in Customer Communication:

  12. Communication Laws and Ethics • 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

  13. Advertising • Advertising • The delivery of announcements and promotional messages via time or space purchased in various media • Product adversiting • Comparative advertising • Institutional advertising • Advocacy advertising

  14. Advertising • 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

  15. Advertising Appeals • 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

  16. Psychology and Advertising: • http://www.youtube.com/watch?v=EC7VLjIw8hY

  17. Advertising Media • 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

  18. Advertising Media • 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)

  19. Direct Marketing • 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

  20. Personal Selling • Personal Selling • One-on-one interaction between a salesperson and a prospective buyer

  21. The Personal-Selling Process

  22. Sales Promotion • 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

  23. 1) Consumer Promotions • 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

  24. 1) Consumer Promotions • 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

  25. 2) Trade Promotions • 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

  26. Social Media and Public Relations • 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

  27. Social Media and Public Relations • Word of Mouth • Communication among customers and other parties, transmitting information about companies and products through online or offline personal conversations

  28. Social Media and Public Relations • 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

  29. Social Media and Public Relations • Brand Communities • Formal or informal groups of people united by their interest in and ownership of particular products

  30. Public Relations • Public Relations: • Non-sales communication that businesses have with their various audiences (including both communication with the general public and press relations)

  31. Public Relations • 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

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