1. 1 Source Channel of Message Communication Encode Receiver Decode Noise Feedback loop Noise Fields of experience The communication process companyIdea-> symbols Why encode? Sales person, media, public relations Frame of reference: Attitudes, values, beliefs

2. 2 Consumer Decision Process (Five-Seven Steps) Disposal Loyalty Satisfaction Purchase Decision Evaluation of Alternatives Information Search Problem - Recognition PRE-PURCHASE PURCHASE POST-PURCHASE

3. 3 Four Steps in the Book  Awareness  Exploration  Commitment  Dissolution

4. 4 Evolution of Customer Buying Process Early Web Market Communication Comparative ads Personal Selling Comparative ads Personal Selling point-of purchase promotions direct marketing Reminder Ads product experience buyers’ clubs Informative Ads tv, radio, mags, outdoor. PR Sales promos: Free trial, deals, rebates Word-of-mouth Traditional Market Communication Source: Forrester Research, Monitor Analysis Consideration Preference Purchase Loyalty Awareness Buying Process buttons banners sponsorships Banners Links microsites brochureware web site daily specials sweepstakes first-time order incentives e-mail alerts newsletters

5. 5 Microsites  Microsites are communications tools that enable targeted information exchanges. Microsite work is a typical need for a corporation that already has a large-scale, fully-functional presence on the internet, but wishes to fulfill specific marketing campaign or business goals involving customer and prospect cultivation.  Strategically focused, high impact and brand intense, microsites provide a vehicle for micro-targeted communication to a key audience. Microsites are agenda-based web solutions that serve a strategic purpose. Product and service announcements  software demos  event marketing (trade shows, seminars)  prospect qualification & sales  public relations  customer cultivation  branding enhancement

6. 6 Four categories of Marketing Communications Strategies Customized Personalized Broad Individualized Off-lineOn-line Communication Media Audience Focus Traditional Mass Marketing General Approaches

7. 7 The Four Categories of Communications Customized Traditional Mass Marketing Public relations Sales promotion Television Radio Magazines Newspapers Billboards Public relations Sales promotion Television Radio Magazines Newspapers Billboards Personalized Permission Marketing—freebies Personalized Recommendations (rule-based, collaborative filtering) Personalized Advertisements Personalized Web Pages Personalized E-commerce (e-stores) Permission Marketing—freebies Personalized Recommendations (rule-based, collaborative filtering) Personalized Advertisements Personalized Web Pages Personalized E-commerce (e-stores) General Approaches Web sites Banner Ads Search engines and shopbots Interstitials E-Mail (junk) Viral Marketing (Hotmail, NYTimes) Portal Sponsorship/Exclusive Agreements Associate/Affiliate Programs (directing to) On-line and Off-line Partnership: Full range Provide Information to Entice Customers Leverage Customer Base – reputation and trust Web sites Banner Ads Search engines and shopbots Interstitials E-Mail (junk) Viral Marketing (Hotmail, NYTimes) Portal Sponsorship/Exclusive Agreements Associate/Affiliate Programs (directing to) On-line and Off-line Partnership: Full range Provide Information to Entice Customers Leverage Customer Base – reputation and trust Personal selling Direct Marketing

8. 8 Mass communication  Banner ads CPM – Cost per thousand impressions – Rates vary by popularity and reach If millions view site – weekly flat fee Click-through rate -- # times viewers go to advertiser’s website. Slotting fees – for premium position, exclusivity in category, etc. Ad clicks, impressions, click-through, CPC (cost per click), CPM, Unique users (cookies), visits (30 minute time out). Interstitials– runs between pages on a website On main page In new smaller pages (pop-ups, pop-unders) Rich media Interruptive and hated but better brand recall and click-though rates

9. 9 Communication Objective  1. Build brand awareness, recall, knowledge, preference, liking  2. Lead to purchase – promotions, coupons, sweepstakes  For each marketing message, have a corresponding objective  http://www.pepsi.com/pepsipromoscur/index.php http://www.pepsi.com/pepsipromoscur/index.php  http://www.sunnydelight.com/ http://www.sunnydelight.com/  http://www.snapple.com/home.asp http://www.snapple.com/home.asp  www.cnn.com advertiser links www.cnn.com

10. 1010 The Media Plan  1. Communication Criteria: Objectives, Budget, Segments  2. Media Criteria: Appropriate for objectives, segments, and budget  Possible objectives: Brand awareness, consideration, preference, purchase, loyalty Increasing knowledge about a particular offering (Could fit in the first three stages) Making the brand more hip Reaching a new target  3. Media mix. Combine media to achieve consistency and efficiency  4. Allocate spending across media and over time  5. Evaluation and control (are objectives being met) 

11. 1 Ebay Case, p. 381  Awareness – Offline levers (ambassadors; alliances); Online Levers (Furby)  Exploration– Offline Levers (ads on West Wing); Online Levers (keywrds on Google)  Commitment– eBay stores  Dissolution– kicking out bad users

12. 1212 www.monster.com

13. 1313 Monster.com

14. 1414 Monster.com discussion  1. What was the rationale for spending 15% of 1999 advertising budget on a single super-bowl 30 second spot?  2. The Monster.com-AOL allicance.  America Online (AOL) and TMP Worldwide reached a content and marketing agreement on Dec. 1, 1999 that called for Monster.com to be the exclusive provider of career search services over seven AOL brands, including Digital City (which has a contract with HotJobs.com).(AOL)  Monster.com will create co-branded sites allowing AOL members and visitors to search for jobs, apply online, research companies and choose personalized geographic areas to help with their job searches.  As part of that deal, TMP agreed to pay $100 million over the length of the four- year contract.

15. 1515 Monster.com discussion  3. How else is Monster.com building its brand? 4. How and why is Monster.com building communities? 5. How might Monster.com strengthen its franchise given Jeff Taylor’s options: building its brand launching vertical extensions increasing geographical expansion