1

Source

Channel of

Message

CommunicationEncode ReceiverDecode

Noise

Noise

Feedback loop

Noise

Fields of experience

The communication processThe communication process

company Idea-> symbols

Why encode?

Sales person, media, public relations

Frame of reference:

Attitudes, values, beliefs

2

Consumer Decision Process (Five-Seven Steps)

DisposalDisposal

LoyaltyLoyalty

SatisfactionSatisfaction

Purchase DecisionPurchase Decision

Evaluation of AlternativesEvaluation of Alternatives

Information SearchInformation Search

Problem - RecognitionProblem - Recognition

PRE-PURCHASE

PURCHASE

POST-PURCHASE

3

Four Steps in the Book

AwarenessExplorationCommitmentDissolution

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 Consideration Preference Preference Purchase Purchase Loyalty Loyalty Awareness Awareness Buying Process

buttons banners sponsorships

Banners Links

microsites brochureware web site

daily specials sweepstakes first-time order

incentives

e-mail alerts newsletters

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

Four categories of Marketing Communications Strategies

CustomizedCustomized PersonalizedPersonalized

Broad

Individualized

Off-line On-line

CommunicationMedia

Audience Focus

Traditional Mass Marketing

Traditional Mass Marketing

General Approaches

General Approaches

7

The Four Categories of Communications

CustomizedCustomized

Traditional Mass Marketing Traditional Mass Marketing Public relations Sales promotion Television Radio Magazines Newspapers Billboards

Public relations Sales promotion Television Radio Magazines Newspapers Billboards

PersonalizedPersonalized

Permission Marketing—freebiesPersonalized Recommendations

(rule-based, collaborative filtering)Personalized AdvertisementsPersonalized Web PagesPersonalized E-commerce (e-stores)

Permission Marketing—freebiesPersonalized Recommendations

(rule-based, collaborative filtering)Personalized AdvertisementsPersonalized Web PagesPersonalized E-commerce (e-stores)

General ApproachesGeneral 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 sellingDirect Marketing

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

Communication Objective

1. Build brand awareness, recall, knowledge, preference, liking2. Lead to purchase – promotions, coupons, sweepstakes

For each marketing message, have a corresponding objective

http://www.pepsi.com/pepsipromoscur/index.php

http://www.sunnydelight.com/

http://www.snapple.com/home.asp

www.cnn.com advertiser links

10

The Media Plan

1. Communication Criteria: Objectives, Budget, Segments2. 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 efficiency4. Allocate spending across media and over time5. Evaluation and control (are objectives being met)

11

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 storesDissolution– kicking out bad users

12

www.monster.com

13

Monster.com

                              

                              

14

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).

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

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