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Customer Communication Chapter 16 Business in Action 6e Bovée/Thill Learning Objectives 1. Describe the three major tasks in crafting a 2. 3. communication strategy and identify four important legal aspects of marketing communication Identify the major types of advertising, the most common advertising appeals, and the most important advertising media 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 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 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 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 costeffective media mix to engage target audiences. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-5 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 The Social Model of Customer Communication Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-7 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 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 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 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 Message Integration in Customer Communication Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-12 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 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 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 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 Advertising Media  Advertising Media  Media Mix  Communication channels, such as newspapers, radio, television, and the World Wide Web Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall  A combination of print, broadcast, online, and other media used for an advertising campaign 16-17 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 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 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 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 The Personal-Selling Process Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-22 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 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 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 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 Trade Promotions  Trade Promotions  Sales-promotion efforts aimed at inducing distributors or retailers to push a producer’s products Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall  Trade Allowances  Discounts or other financial considerations offered by producers to wholesalers and retailers 16-27 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 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 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 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 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 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 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 Applying What You’ve Learned 1. Describe the three major tasks in crafting a 2. 3. communication strategy and identify four important legal aspects of marketing communication Identify the major types of advertising, the most common advertising appeals, and the most important advertising media 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 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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 16-37 37