Lecture 7 Lecture Notes in Marketing

1. Lecture 7 Lecture Notes in Marketing RCBC Campus August, 2006 Prof. Mundy Gonzalez

2. Managing Integrated Marketing Communications RCBC Campus August 21, 2004 Prof. Mundy Gonzalez De La Salle University Professional Schools, Inc

3. Kotler on Marketing Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.

4. MEANS OF COMMUNICATION IN MARKETING • Advertising • Sales Promotions • Public Relations • Publicity • Personal Selling • Direct and Interactive Marketing

5. MODES OF COMMUNICATIONS • Advertising – non-personal presentation; identified sponsor. • 2. Sales Promotion – giving incentives to encourage purchase or sales. • Publicity – non-personal stimulation of • demand; not (explicitly) paid by an identified • sponsor

6. MODES OF COMMUNICATIONS (cont.) Face-to-face interaction with prospects; to make presentations, answer questions, and procure orders. 4. Personal Selling Communicate directly with specific Prospects to solicit response through mail, fax, e-mail, or Internet 5. Direct Marketing

7. Common Communication Platforms See text for complete table

8. Elements in the Communication Process

9. The Communication Process • Target audience may not receive the intended message for any of three reasons: • Selective attention • Selective distortion • Selective retention

10. The Communication Process • Fiske and Hartley have outlined factors that influence communication: • The greater the influence of the communication source, the greater the effect on the recipient • Communication effects are greatest when they are in line with existing opinions, beliefs, and dispositions

11. The Communication Process • Communication can produce the most effective shifts on unfamiliar, lightly felt, peripheral issues that do not lie at the core of the recipient’s value system. • Communication is more likely to be effective if the source is believed to have expertise, high status, objectivity, or likeability, but particularly if the source has power and can be identified with. • The social context, group, or reflective group will mediate the communication and influence whether or not the communication is accepted.

12. Consumer Behavior Defined • The study of the acts of individuals directly involved in obtaining and using economic goods and services, including the decision processes that precede and determine the acts. • Combines psychology, sociology, • anthropology and economics.

13. Basic Assumptions of Consumer Behavior • Consumer behavior is logical and determined by the individual. • The individual is in control. • Consumer behavior can be influenced. • Consumer behavior can and should be • understood through research.

14. Cognitive Psychology R S

15. One View of Consumer Behavior:Stimulus-Response Theory • Mechanistic and linear • Not very predictive at micro or individual level. • Still useful at macro level

16. A Second View of Consumer Behavior:Cognitive Psychology Theory • Expands on S—R Theory by adding mediating variables between stimulus and response • Sees the individual in control • Focus is on how individuals process informationsees individual as having innate need to know

17. What’s Inside the Black Box? Selective Perception Filter S R • Selective Exposure • Selective Attention • Selective Comprehension • Selective Retention

18. What’s Inside the Black Box? • Beliefs • Values • Attitudes • Personality Traits • Defense Mechanisms • Memories

19. Cultural Influences Family Language Work and Leisure Cultural Influences Reference Groups Religion Intermediary actions Education Culture Adaptation Culture Change

20. What’s Inside the Black Box? Experience

21. More Things in the Black BoxBeliefs • Beliefs –strongest held cognitions • Things about the world we believe in • Beliefs shape our reality • Beliefs are our concept of the way things are.

22. More Things in the Black BoxValues • Values are less intense than beliefs • Values shape our concept of the way things should be. • Two types: • - Instrumental – values that we hold that serve as a means to an end or method of conduct. • - Terminal – “end states of existence” • Values are a standard for guiding behavior.

23. More Black ThingsAttitudes • An attitude is a predisposition to behave toward or away from some object based on knowledge and feeling about that object. • Attitudes are less intensely held than values. • A person can have numerous attitudes

24. Attitudes • Three Components: - Cognitive –Knowing – Learn -Affective – Emotion – Feel - Conative – Behavior – Do • Learn –Feel – Do is the traditional model • Based on two factors: risk and habit.

25. Attitudes • The process of forming or changing an attitude is the process of persuasion. • Conventional thinking: a positive attitude • toward the advertising will lead to, or at least • enhance, a positive attitude toward the product.

26. How Do Attitudes Work? • Attitudes are a result or effect of persuasive communication. • Attitudes are also the result of direct experience with the object. • Strongest attitudes occur when both • communication and experience occur.

27. Advertising and Attitudes • Advertising can create an attitude where none existed before. • Advertising can reinforce an existing attitude. • Advertising can weaken an existing attitude.

28. Advertising and Attitude Formation • Russle H. Colley: Defining Advertising Goals for Measured Advertising Results (DAGMAR) • Advertising results should be measured by communication standards – sales is not a communication effect.

29. Communication A process of gaining common understanding between sender and receiver of a message.

30. COMMUNICATIONObjectives Ensure correct transmittal of information from issuer to receiver. Build up common understanding to prevent confusion or clash of personalities

31. BARRIERS TO COMMUNICATION Being aware of these barriers will make us cautious in writing or saying anything.

32. 1. EMOTIONAL • A person under emotional stress shuts himself off to reception • An emotional barrier is created between the issuer of the message and the receiver. • Sender could be saying something different from what he wants to convey. • Receiver may not receive message clearly.

33. 2. USE OF WORDS • There are about 600,000 English English words (according to Dr. Hayakawa, prominent linguist of San Francisco State College) • 2,000 are recognized, but not necessarily understood fully. • 200 words are used in daily business transactions • 14,000 shades of meanings. • Use simple, common words to be understood.

34. 3. FEELING OF INSECURITY • It is natural to be insecure about things you are not sure off. • When one is insecure, invariably facts are distorted. • We become apprehensive when we are unaware: • Our conclusions could be based on guesses or assumptions which could be totally wrong. • Most people get rattled when they receive a memorandum.

35. Marketing Communications • The Means of getting your message across to your targeted markets.

36. PROCESS OF COMMUNICATION • How to make yourself understood by the receiver of your message.

37. HOW TO LISTEN • Meanings are affected by voice tones, facial expressions. • Misunderstanding results from poor listening. • Preconceived ideas make people opinionated, or dogmatic. • Messages are screened • Messages are interpreted on the basis of preconceived ideas, opinions, biases. • Listen attentively and objectively – • use eyes, ears, and heart.

38. Ask yourself: • What am I going to say? • Do I know what I am going to talk about? • Who is going to receive my communication message? • Is he under emotional stress? right frame of mind? • What are his likes, dislikes, interests, fears? • What’s the best way to talk to him? • Is he familiar with my subject? - Don’t assume that he knows.

39. HOW TO BE UNDERSTOOD CLEARLY • Use simple words • Use right tone of voice. • Write legibly. • Do not assume your receiver knows what you are talking about. Provide details of what you are saying. • Get feedback.

40. Steps in Developing Effective Communication

41. Developing Effective Communications • Identify the Target Audience • Image analysis • Familiarity scale • Favorability scale

42. Familiarity-Favorability Analysis

43. Developing Effective Communications • Semantic differential • Developing a set of relevant dimensions • Reducing the set of relevant dimensions • Administering the instrument to a sample of respondents • Averaging the results • Checking on the image variance

44. Images of Three Hospitals (Semantic Differential)

45. Developing Effective Communications • Determine the Communication Objective • Cognitive • Affective • Behavioral • Response-hierarchy models

46. Developing Effective Communications • Hierarchy-of effects model • Awareness • Knowledge • Liking • Preference • Conviction • Purchase

47. Developing Effective Communications • Design the Message • AIDA model • Gain attention • Hold interest • Arouse desire • Elicit action • Message Content • Rational appeals • Emotional appeals • Moral appeals

48. Developing Effective Communications • Message Structure • Message Format • Message Source • Factors underlying source credibility • Expertise • Trustworthiness • Principle of congruity