1. Chapter 5 Lecture Slides Market Communications Exhibits and Tables
Copyright © 2000 by Marketspace LLC

2. Exhibit 5-1: Evolution of Customer Buying Process
Awareness
Consideration
Preference
Purchase
Loyalty
Buying Process
television ads
general interest magazines
television ads
general interest magazines
niche magazines
collateral
point-of-sale promotions
direct marketing
product experience
buyers’ clubs
Traditional Market Communication
Early Web Market Communication
buttons
banners
sponsorships
banners
microsites
brochureware
website
daily specials
sweepstakes
first-time order incentives
alerts
newsletters
Source: Forrester Research, Monitor Analysis

3. Table 5-1: Framework for Marketing Communications
Direct
Personalized
Individualized
Audience Focus
Traditional Mass Marketing
General Approaches
Broad
Offline
Online
Communication
Media

4. Table 5-2: The Four Categories of Communications
Direct
Personalized
Permission marketing
Personalized recommendations
Personalized advertisements
Personalized webpages
Personalized upsell
Personalized e-commerce
Sales force
Retail sales
Customer-service reps
Traditional Mass Marketing
General Approaches
Television
Radio
Print
Billboards
Superior customer service
Banner ads
Viral marketing
Portal sponsorship/exclusive agreements
Associate programs
Online and offline partnerships
Provide information to entice customer purchases
Leverage customer base

5. Exhibit 5-2: What Is a Good Brand?
Mix of offline and online advertising
Emphasizes advantages to AAdvantage membership, including non-expiring miles and online services
Marketing Communications
“Wraparounds”
Superior service
AAdvantage frequent-flier club
Award winning Admirals Club lounges
Comfortable chairs
Portable defibrillators on every flight
Core Product / Service
[Start with only bullet-point]
It is fundamental to remember that a good brand extends the “product” from functionality into meaning. This is done by consistently delivering and communicating a distinct and appealing customer experience.
[Add dash-points as they are mentioned]
A good, branded customer experience needs to: 1) Be based on a good core product, 2) Have its wrap-arounds or add- ons to be delivered in a distinctive way, and 3) Have marketing communications frame the customer experience. A good core product alone is not enough, distinctive wrap-arounds alone are not enough, and marketing communications alone are not enough. All of these things need to be delivered with consistency and integrity to shape the customer experience into a brand.
[Add example at bottom of page, except for arrow and “Hip Prestige”]
Virgin Atlantic Upper Class is a brand. It provides safe, usually on-time transportation from A to B (where either A or B is London). With Virgin, you get the “wrap-arounds” of many entertainment options — particularly modern music. With Upper Class, you get the “wrap-arounds” of more comfortable chairs, shorter check-in lines, lounges, and special luggage tags. Most of these wrap-arounds are delivered in a distinctive way such as bright colors and contemporary furniture in their lounges.
With Virgin Atlantic Upper Class, the product is framed by marketing communications such as provocative, racy advertising (from Virgin tie-ins with Austin Powers movie “The Spy Who Shagged Me”) and direct mail that emphasizes exclusivity (from Upper Class). [Add arrow on bottom and “Hip Prestige”] The same Brand Intent behind these marketing communications also guides how managers put together the core-product and “wrap-arounds” and guides how customers experience the Virgin Atlantic Upper Class brand as Hip Prestige.
Safe, on-time transportation from A to B
Brand
Prestige

6. Exhibit 5-3: A Simple Conceptual Model of Brand Equity
A good brand...
… provides positive consumer responses...
… and benefits both target customers and the firm
Brand Awareness
Depth
Breadth
Customer Benefits
Confidence
Loyalty
Satisfaction
Market Communication
“Wraparounds”
Core Product / Service
Brand Associations
Strength
Relevant
Consistent
Valence
Uniqueness
Memorable
Distinctive
Firm Benefits
Reduce marketing costs
Increased margins
Opportunity for brand extensions
Source: Keller (1996), Aaken (1996), Strategic Market Research Group, Marketspace Analysis

7. Table 5-3: Schwab Marketing Communications
Direct
Targeted direct mail
Calls made to investors who demonstrate difficulty (e.g., large periods of inactivity)
“Red hot” calls for emergency investment decisions
Personalized
Personalized webpages (mySchwab.com)
Individualized
Audience Focus
Traditional Mass Marketing
Television (network, cable, local)
Print media
National and local radio
Athletic event sponsorships
General Approaches
Banner ads
Affiliate sites
Sponsorship of sites (e.g., Schwab sponsorship of Mini Center on Babycenter)
Leveraging customer base (e.g. investor customer base leveraged for online banking)
Free information on site
Innovative approaches (e.g., online commissions donated to Breast Cancer Foundation)
Broad
Offline
Online
Communication Media