THE THEORY OF COMMUNICATION PROCESS (TCP) Pertemuan 5 & 6 Mata kuliah: O INTEGRATED MARKETING COMMUNICATION Tahun: 2009/2010

Bina Nusantara University 3 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

Bina Nusantara University 4 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.

Bina Nusantara University 5 What is Communications ? (1) A Basic Communication Model SenderMessageReceiver A Basic Communication Model with Feedback SenderMessageReceiver Feedback

Bina Nusantara University 6 What is Communications ? (2) Marketing Communication Feedback MarketerMessageCustomer Market Research Analyst Market Research Sales force Report Customer Purchase Activity Customer Relations Report Agency Research Customer Interest Activity ex Coupon redemption

Bina Nusantara University 7 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

Bina Nusantara University 8 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

Bina Nusantara University 9 How Message are Understood Overlapping Field of Perception Enable Communication to Take Place Area Of Perceptual Overlap Sender EncodeMessage DecodeReceiver Feedback The Theory of The Communication Process

Bina Nusantara University 10 How Message are Understood The Communications Channel Sender Transmitter Message Receiver Transmitter From Sender To Receiver The Theory of The Communication Process

Bina Nusantara University 11 How Message are Understood Sender Transmitter Message Receiver Transmitter From Sender To Receiver Noise In The Communications Channel Noise in the channel The Theory of The Communication Process

Bina Nusantara University 12 Integrating The Model Within Overall Business Strategy Communication Decision Marketer’s Analysis And Strategy Market Data Capture and Storage Corporate Analysis and Strategy Market Research Sales force Reports Customer Relations Reports Agency Research Market Research Analysis Customer Purchase Activity Customer Interest Activity eg coupon redemption The Market Integration of Market Feedback information and Strategy development Feedback box The Theory of The Communication Process

Bina Nusantara University 13 Integrating The Model Within Overall Business Strategy Communication Decision Marketer’s Analysis And Strategy Market Data Capture and Storage Corporate Analysis and Strategy Market Research Sales force Reports Customer Relations Reports Agency Research Market Research Analysis Customer Purchase Activity Customer Interest Activity eg coupon redemption Feedback box Encode Trans- mitter Trans- mitter Decode Customer Message The Theory of The Communication Process

Bina Nusantara University 14 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.

Bina Nusantara University 15 Direct and Indirect Benefits The Relationship of Marketing Communications Tools to Distance from Buying Point Direct Tools Distant from the buying point Advertising Indirect Tools Public Relations Sponsorship Corporate Identity Close to or at the buying point Close to and/ or distant from the buying point Personal Selling Direct Marketing Promotions Direct Mail Point of Sales Promotions Other Sales Promotions Design Word of Mouth

Bina Nusantara University 16 Closeness to The Buying Decision (1) 7 th PS of Selling Prospecting- Looking for potential customers Preparation- Objective setting, customer research Presentation- 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 The Communication Process and The Marketing Mix

Bina Nusantara University 17 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 The Communication Process and The Marketing Mix

Bina Nusantara University 18 Buying Problem Knowing Feelings Action 1. Learning Customer : Stages in the buying – readiness process 2. Self-justifying Customers : stages in the buying-readiness process Buying Problem Knowing Action Feelings 3. Routine Customers: Stages in the buying-readiness process State of Mind of The Customer 4. Professional Customers : stages in the buying – readiness process When negotiating A supply contract Routine buying From an established Supply contract Knowing Feelings Action Action Knowing Feelings Buying Problem Knowing Feelings Action

Bina Nusantara University 19 The Six Stages of The SOSTAC Marketing Communications Plan STAGE S Situation: Where are we Now ? O Objectives : Where do we want to go ? S Strategy : How do we get there ? T Tactics : What specific tactics will fulfill the strategy ? A Action : What detailed actions are needed for each tactics ? C Control : How do we know we have arrived ?

Bina Nusantara University 20 BE A WINNER ALWAYS!!  THE WINNER WILL NOT GIVE UP!  EVOKE YOURSELF!  MINDMAP YOUR THINKING!  BE A LEARNER AND YOU WILL SEE….! GOODLUCK!!