Business in Action 7e Bovée/Thill. Customer Communication Chapter 16.

Business in Business in Action 7e Action 7e Bovée/ThillBovée/Thill

Business in Business in Action 7e Action 7e Bovée/ThillBovée/Thill

Customer Customer CommunicationCommunication

Chapter 16Chapter 16

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

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Learning Objectives

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

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Customer Communication: Challenges,Strategies, and Issues

• Social Communication Model An approach to communication based on

interactive social media and conversational communication styles

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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.

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Establishing Clear Communication Goals

• Generating awareness

• Providing information and creating positive emotional connections

• Building preference

• Stimulating action

• Reminding past customers

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The Social Model of Customer CommunicationExhibit 16.1

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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

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Communication

• 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

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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

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The AIDA Model of Persuasive CommunicationExhibit 16.2

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Message Integration in Customer CommunicationExhibit 16.3

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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

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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

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Advertising

• Advertising The delivery of announcements and

promotional messages via time or space purchased in various media

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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

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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

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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

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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

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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

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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

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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

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The Personal-Selling ProcessExhibit 16.6

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Sales Promotion

• Sales Promotion A wide range of events and activities

designed to promote a brand or stimulate interest in a product

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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

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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

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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

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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

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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

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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

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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

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Social Media and Public Relations (cont.)

• Brand Communities Formal or informal groups of people united by

their interest in and ownership of particular products

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Public Relations

• Public Relations Non-sales communication that businesses

have with their various audiences (including both communication with the general public and press relations)

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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

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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

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