1. Business in Action 6e Bovée/Thill Customer Communication Chapter 16

2. Learning Objectives 1. Describe the three major tasks in crafting a communication strategy and identify four important legal aspects of marketing communication 2. Identify the major types of advertising, the most common advertising appeals, and the most important advertising media 3. Explain how direct marketing differs from advertising and identify the major forms of direct media Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-2

3. Learning Objectives (cont.) 4. Describe consultative selling and explain the personal selling process 5. Define sales promotion and identify the major categories of consumer and trade promotions 6. Explain the uses of social media in customer communication and the role of public relations Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-3

4. Customer Communication: Challenges, Strategies, and Issues  Social Communication Model  An approach to communication based on interactive social media and conversational communication styles Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-4

5. Customer Communication: Challenges, Strategies, and Issues (cont.) 1. Establish clear communication goals 2. Define compelling messages to help 3. Achieve those goals, and outline a cost- effective media mix to engage target audiences. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-5

6. Establishing Clear Communication Goals  Generating awareness  Providing information and creating positive emotional connections  Building preference  Stimulating action  Reminding past customers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-6

7. The Social Model of Customer Communication Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-7

8. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-8

9. Assembling the Communication Mix  Communication Mix  A blend of communication vehicles— advertising, direct marketing, personal selling, sales promotion, social media, and public relations—that a company uses to reach current and potential customers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-9

10. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-10

11. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-11

12. Message Integration in Customer Communication Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-12

13. 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 messages and websites aimed at children are subject to special rules Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-13

14. Advertising  Advertising  The delivery of announcements and promotional messages via time or space purchased in various media Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-14

15. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-15

16. Advertising Appeals  Advertising Appeal  A creative tactic designed to capture the audience’s attention and promote preference for the product or company being advertised  Logic, emotion, humor, celebrity, sex, music, scarcity Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-16

17. Advertising Media  Advertising Media  Communication channels, such as newspapers, radio, television, and the World Wide Web  Media Mix  A combination of print, broadcast, online, and other media used for an advertising campaign Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-17

18. 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, and direct response television Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-18

19. Direct Marketing Media  Search Engine Marketing  Automated presentation of ads that are related to either the results of an online search or the content being displayed on other web pages Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-19

20. Direct Marketing Media (cont.)  Direct Response Television  The use of television commercials and longer format infomercials that are designed to stimulate an immediate purchase response from viewers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-20

21. Personal Selling  Personal Selling  One-on-one interaction between a salesperson and a prospective buyer  Consultative Selling  An approach in which a salesperson acts as a consultant and advisor to help customers find the best solutions to their personal or business needs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-21

22. The Personal-Selling Process Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-22

23. Sales Promotion  Sales Promotion  A wide range of events and activities designed to promote a brand or stimulate interest in a product Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-23

24. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-24

25. 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  Premiums  Free or bargain-priced items offered to encourage consumers to buy a product Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-25

26. Consumer Promotions (cont.)  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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-26

27. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-27

28. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-28

29. 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-29

30. Social Media and Public Relations (cont.)  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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-30

31. Social Media and Public Relations (cont.)  Brand Communities  Formal or informal groups of people united by their interest in and ownership of particular products Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-31

32. Public Relations  Public Relations  Non-sales communication that businesses have with their various audiences (including both communication with the general public and press relations) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-32

33. Public Relations (cont.)  Press Release  A brief statement or video program released to the press announcing new products, management changes, sales performance, and other potential news items  also called a news release Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-33

34. Public Relations (cont.)  Press Conference  An in-person or online gathering of media representatives at which companies announce new information  also called a news conference Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-34

35. Applying What You’ve Learned 1. Describe the three major tasks in crafting a communication strategy and identify four important legal aspects of marketing communication 2. Identify the major types of advertising, the most common advertising appeals, and the most important advertising media 3. Explain how direct marketing differs from advertising and identify the major forms of direct media Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-35

36. Applying What You’ve Learned (cont.) 4. Describe consultative selling and explain the personal selling process 5. Define sales promotion and identify the major categories of consumer and trade promotions 6. Explain the uses of social media in customer communication and the role of public relations Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-36

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