Dr. S. Borna MBA 671

Objectives ä The Communications Process ä Developing Effective Communications ä Deciding on the Marketing Communications Mix ä Managing and Coordinating Integrated Marketing Communications

Advertising Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentations. The Marketing Communications Mix

Promotion Mix Decisions *Type of product market Consumer Goods Industrial Goods *Push vs. Pull strategy *Buyer Readiness Stage (next page) *P.L.C. stage

Purchase Conviction Preference Liking Knowledge Awareness Buyers Readiness Stage

Info Flow Planning flow Commun.Mess-ageChannelAudi-ence Who Says What In what channel To whom With what effect ? Noise

Assessment of Target Market Types of information useful for assessing target audience: 1. Descriptive Information -demographics -demographics -life styles -life styles -product-usage levels -product-usage levels

Audience Audience Level of aggregation -individual-group -general public Level of Involvement 1. Cognitive stage 2. Affective stage 3. Action state 3. Action state “AIDA”MODEL AttentionInterestDesireAction

sexself-confi-denceintelligence Audience Persuasability Persuasibilitycontinuum Audience: Cont.

2. Perceptual Information Image Analysis Image Analysis Consumers’ perception of your Consumers’ perception of your Product, Company etc. Product, Company etc. 3. Buying Process Information Assessment of Target Market cont.

Communication Objectives Communication objectives should include four key points: 1. Definition of target audience 2. A statement of how target audience should change audience should change

3. A statement of how fast such change should occur change should occur 4. A statement as to the degree of change desired of change desired Communication Objectives cont. cont.

Communication Objectives Example To create awareness of the new product among 50% of the working women between the ages of 25 and 50 with incomes of $25,000 or more within the next three months.

Channels Channel decisions are concerned with how best to deliver the message. 1. Which promotional-tool to use 2. Selection of specific activities within a promotional-tool within a promotional-tool ex. what kind of sale promotion to use

The Channel Signifies the Medium Through Which the Message is Sent Non-personal channels: t.v., radio, newspapers… Verbal and written forms

Channels 1. Personal Channels Advocate channel ( Salesmen) Expert channel( Consultants, authorities, arbitrators) authorities, arbitrators) Social channel ( word of mouth communication) communication) 2. Nonpersonal Influence Channel Mass Media

Atmospheres ( designed environments to stimulate a given feeling) Events (Designed occurrences) Non personal Influence Channel continued

Interpersonal vs. Mass Communication Disadvantages of Mass Communication: Delayed feedback Inflexible Likelihood of selective screening

Cost per capita is lower Accuracy to mass audience is higher Advantages

Mass Media OpinionLeaders OpinionFollowers Mass media OpinionFollowers

The Message A message is a summation of signs or signals attempting to convey one or more ideas.

Designing The Message: Message Content Any statement about “product” to be communicated to the audience Product benefits Reasons to buy To remind the audience, etc.

Denotative Meaning of Symbols Connotative Meaning of Symbols You will be greeted warmly at the door by one of our youthful staff members. You will be greeted warmly at the door by one of our juvenile staff members. Diet Coke vs. light coke

Communication is facilitated when the communicator and the receiver have an overlap in their psychological fields of experience. Source’s Field of Experience Message Receiver’s Experience

source Encoder signal Destination Decoder

The Receiver Actual Message Content Perceived Message Selective Perception

Source Credibility According to Kelman and Hovland ExpertnessTrustworthiness

Source Incongruity Source Congruity and Attitude Change Source Message +Congruent+ +Incongruent- -Incongruent+ -Congruent-

Internal both: for sender and receiver receiver External Examples: Internal noise--illness, stress External noise--other commercials commercials Noise

Feedback Feedback from the receiver Feedback from the message Feedback from the channel

Summary of factors affecting communication effectiveness Communicator Source Credibility 1. Expertness, 2. Trustworthiness 3. Power 4. Likeability Source Incongruity

Messages Message Function Message Structure

Channels Personal Influence Channels Non personal influence ch.

Audience Level of Aggregation Image Analysis Level of Involvement

The Promotion Mix Decisions

Sales (Q) (Q) P. Selling D3 The Sales Response Advertising Q3 Q2 Cons-mix-line Cons-bud-line A3 $, A PROMOTION MIX: BUDGET DECISION Q1

A=Advertising A A* D* Q=150 Q=100 Q=75 Constant-Budget line P =Personal Selling P PROMOTION MIX: BUDGET DECISION