Marketing Communication, Social

Media, and Customer Response

Rachma Pratiwi (14414011)
Hamnah (14414030)
Yenith Rosari (14414057)

Outline
Marketing Communication,
Social Media, and Customer
Response
Marketing communication and
customer response
Digital marketing
communications
Social media marketing
communications
Marketing communications
Building customer awareness
and comprehension
Message reinforcement
Stimulating customer action
Push VS Pull communication
strategies
MARKETING COMMUNICATIONS AND CUSTOMER RESPONSE
Creating effective marketing communications begins with setting objectives for
the communications.

Three broad categories of marketing communications according to their

objectives:

brand-image
brand-information
brand-action communications.
MARKETING COMMUNICATIONS AND CUSTOMER RESPONSE
BRAND-IMAGE COMMUNICATION

Objective: to trigger an emotional response that builds a strong connection

between the brand and the image the company wants to create among its target
customers.
The Nike advertisement seeks to form a positive
association between the brand and performance.
The goal is to produce high recall of the ad and
its association with the brand in customers
minds.
MARKETING COMMUNICATIONS AND CUSTOMER RESPONSE
BRAND-INFORMATION COMMUNICATION

Objective: to create interest and offer information in order to achieve high

recall among target customers of key product attributes that differentiate the
brand.

The objective of the print ad is to inform

target customers of the cost savings that
a Kyocera printer offers over its product
life relative to competing printers.
MARKETING COMMUNICATIONS AND CUSTOMER RESPONSE
BRAND-ACTION COMMUNICATION

Objective: to stimulate potential customers to take action, such as contacting

the company, visiting the companys web site, obtaining a free sample, and
trying or buying the companys product.
A Deal of the Month ad, one of a series that focuses
on a different Dell computer each month. Each month,
the software developer e-mails a similar ad to the
many individuals and businesses on its client list. The
monthly promotions have helped the company become
the leading seller of Dell computers in its regional
market.
MARKETING COMMUNICATIONS AND CUSTOMER RESPONSE
BRAND-ACTION COMMUNICATION

Using social media, mobile media platforms, and traditional media, businesses
can communicate to their target customers a variety of promotions, each with
its own objective.

Promotional Giveaways These promotions offer consumers something

for nothing. The classic example: Buy one, get one free.
Promotional Gifts The customer has the opportunity to obtain
something without having to pay for it.
Minimum Purchase Customers who spend a certain amount qualify for
promotional gifts. Example: By making a purchase at a specified level, they
can obtain free samples of lipstick, eyeliner, and moisturizing lotion.
DIGITAL MARKETING COMMUNICATIONS
Digital marketing communications (e-mail, display advertising, microsites,
paid search, mobile messages, blogs and podcasts) are designed to provide
information and begin a conversation.

Social media marketing uses a variety of communication channels, among them

Facebook, Twitter, LinkedIn, and YouTube. Social media engagement is much
more personal than traditional media advertising and is viral in nature,
meaning that information carried through social media channels may rapidly
spread from one person to another.
DIGITAL MARKETING COMMUNICATIONS
DIGITAL MEDIA MARKETING ANALYTICS

One of the great benefits of digital marketing is its ability to track customer
engagement.

E-mail marketing services offer tracking tools that can monitor delivery,
opening, and clickthrough. By utilizing integrated e-mail tracking and web
analytics (like those offered by Google), marketers can track recipients of an
e-mail campaign all the way to product purchase.
SOCIAL MEDIA MARKETING COMMUNICATIONS
NEW COMMUNICATION PARADIGM

The paradigm has fundamentally shifted from a one-to-many to a

many-to-many marketing environment.

People can freely share their experiences and opinions (both positive and
negative) in a public forum, this is a whole new channel for customer
word-of-mouth communications.
SOCIAL MEDIA MARKETING COMMUNICATIONS
NEW COMMUNICATION PARADIGM

Customer use of social media can also pose a problem, as marketers no longer
have complete control over their brands. Even potential customers who choose
not to participate in online conversations can still see the comments posted by
others.

One way for companies to reduce possible brand damage is to identify issues
early and address them proactively.

This potential problem also presents an opportunity: marketers can gain

insights into improving operations, customer service, and product offerings.
SOCIAL MEDIA MARKETING COMMUNICATIONS
CUSTOMER CONNECTIVITY AND ENGAGEMENT

Unlike traditional marketing

techniques, social media
must be engaged to support
business objectives and must
be tied to measurable results.
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

Facebook

Facebook claimed a user base of more than 500 million people in early 2011
Offers powerful tools for advertisers and can deliver targeted ads that are
based on customers locations, demographics, and interests
Retailers have leveraged the Facebook platform to create e-tail
destinations that allow customers to order their products without leaving
the site
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

YouTube

YouTube provides a platform for customers to voice their satisfaction or

discontent
Consumers can post product reviews and critiques to share with their
subscriber bases
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

YouTube

Other company uses videos as

elements of an integrated digital and
social media marketing campaign
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

Twitter

Users create tweetsposts limited to 280 characters in lengththat

share information of interest with followers.
Users can provide their followers details about the content of tweets by
including a web URL or elaborating in the details pane.
Other companies also tweet about special promotions to their followers
and direct them to unique landing pages on their web sites
By tracking the number of visits and conversation events through the
landing page, a company can track the results of its Twitter promotion
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

Twitter
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

LinkedIn

The site provides a number of services for soliciting introductions from

existing network contacts
LinkedIn also allows users to form and join industry and interest
groupshelping companies engage communities in relevant conversations
and soft-sell their goods and services
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA: NEW COMMUNICATIONS PLATFORMS AND CHALLENGES

Blogs

The platform can be used to post news, opinions, and original work
Bloggers have become coveted allies of marketers because of their ability
to influence their subscribers. For companies releasing new products,
these influencers hold the key to unlocking early market adoption
SOCIAL MEDIA MARKETING COMMUNICATIONS
SOCIAL MEDIA MARKETING METRICS

Engagement metrics can be applied with regard to fans, friends, followers,

comments, ratings, likes, clicks, leads generated, buzz, virality, and uploads
and downloads.

Companies can also monitor macro views, such as share of voice, brand
comments, and trending topics, using brand monitoring services or simple
mechanisms like search engines and Google Alerts.
Marketing Communications

As shown in Figure 10-13 , worldwide spending on advertising declined by 10.5 percent in

2009 but regained some growth in 2010. As a percentage of sales, spending on nearly all forms
of advertising declined somewhat from 2008 to 2010, with digital advertising a notable
exception. Digital advertising spending is clearly undergoing considerable growth.
Marketing Communications (cont.)
Regardless of the communications media
channel: 1. Building a brands
Digital social media image


Print (magazine and newspaper)
Electronic (TV and radio)
2. Creating interest in a
Outdoor (stationary and moving product or service
billboards),
Promotional engagements (direct mail, 3. Motivating customers to
telemarketing, and e-mail)
act.
The fundamentals of marketing
communications have the same core objectives
of any marketing communications program
hierarchy:
Marketing Communications (cont.)
In order for a marketing communication to
have any chance of achieving its customer
response objective, it must have some level of
message frequency. To better understand how
message frequency affects the effectiveness of a
marketing communications campaign,
lets examine the results of a
customer-response study that was conducted
by a large nationwide department store.
The target market was well defined
The selected media covered 75 percent of
the target market
The campaign featured merchandise that
was known to have appeal in this target
market.
Full-page advertisements ran for 5
consecutive days in two daily newspapers,
and radio spots aired during the same 5
days on two stations that ran the ads
twice in each of four time slotsearly
morning, midday, early evening, and late
night.
Marketing Communications (cont.)

Although the ad awareness grew to 68 percent by day 5, most of the ad awareness, over 60 percent,
was attained by the third day. But of the 68 percent who were aware of the marketing
communication, only 43 percent could accurately describe the ad content and recall the store name
Marketing Communications (cont.)

The net result was that 4.4 percent of the target market took the intended action by purchasing the
advertised merchandise. The marketing communications drew 4.4 percent of the target market to
the store to buy the advertised merchandise, but these customers bought an almost equal amount
of nonadvertised merchandise. The net result was a meaningful gain in sales and net marketing
contribution
Customer Response Index
CRI (Current) CRI (Improved)

An effective marketing communications effort Scores at the different stages also offer an
begins with building awareness and insight as to where we might focus our efforts
understanding of the message among target to improve the customer response for future
customers. A successful effort then creates an programs.
intent to purchase among a significant number
of target customers, a good portion of whom Improving comprehension of the ad content
actually make a purchase. among those who were aware of the ad, from 43
percent to 50 percent, would raise the customer
CRI (Current) response index to 5.1 percent.
= 0.75 * 0.68 * 0.43 * 0.33 * 0.61 = 4.4%
CRI (Improved)
= 0.75 * 0.68 * 0.50 * 0.33 * 0.61 = 5.1%
Improving Customer Response
Possible causes of poor performance in the customer-response hierarchy are listed in Figure 10-16
Improving Customer Response We can see that 30 percent awareness
results in a low level of customer loyalty,
less than 10 percent.

When awareness is raised to 80 percent,

the subsequent customer responses and
customer loyalty are higher.

Awareness is the first step in

new-customer acquisition. The higher
the awareness of a product, the higher
the customer response and the higher
the potential for customer retention.

Raising awareness, then, is a first step in

building profits based on brand and
customer loyalty.
Building Customer Awareness and Comprehension
The objective is to create awareness among and communicate effectively to target customers.

MEDIA SELECTION AND CUSTOMER AWARENESS

To reach target customers effectively, a business has to have a good understanding of the
media habits of its target customers.
A key measure of effective media selection is target market reach. Target market reach is the
percentage of target customers who are exposed to the businesss message through a certain
combination of media.
Ex. A golf ball manufacturer
wants to reach golfers.
 Building Customer Awareness and Comprehension (cont.)
After a business has found the right mix of media for effectively reaching target
customers, it needs to determine how often to expose target customers to its
message in order to achieve a high level of awareness.

MESSAGE FREQUENCY AND CUSTOMER AWARENESS

If it elects infrequent exposure, most target customers will not become fully
conscious of the message, and they will have low levels of awareness and
comprehension.
If too many exposures could irritate target customers and negatively affect
retained information and perceptions of the ad, product, or company.
Ex. AFLAC

AFLACs recognition rating skyrocketed to over 90 percent, and revenues grew 30 percent annually over the
duration of this advertising campaign. But after several years of hearing the duck screaming AFLAC! in
various situations, people grew tired of the ads and even found them irritating.
Building Customer Awareness and Comprehension (cont.)
In a concentrated frequency strategy, 13
consecutive messages were directed to target
customers over 13 weeks.

The message awareness steadily

increased each week until it reached its
highest level in week 13.
After week 13, no more messages were
directed to target customers for the
remainder of the year and the message
awareness decayed to almost zero.

This marketing communications strategy would be

appropriate for building awareness and comprehension
for seasonal products, political candidates, and special
events.
Building Customer Awareness and Comprehension (cont.)
In a distributed frequency strategy, 13
consecutive messages were directed to target
customers once every 4 weeks throughout the
year.

Although this pattern of exposure

frequency produced a longer-lasting
effect, it never reached the highest level
of awareness produced by the
concentrated frequency effort.

The distributed frequency strategy would be

appropriate in building and maintaining target
customer awareness and comprehension.
 Building Customer Awareness and Comprehension (cont.)
Because ad copy plays a key role in creating awareness, comprehension, and intentions, a business
must be sure that its message is received and accurately interpreted by target customers.

AD COPY AND CUSTOMER RESPONSE

Ad copy can best attract customers when it is based on customer needs and
situations that are familiar to customers.
It must integrate customer needs and situations with the products benefits
and businesss name.
If an ad is attractive but fails to create product interest, the ad copy is of
limited value to the customer and to the business.
Ex. Loctite

The ad was highly technical, which was appropriate for that audience, but it failed to generate any demand
for RC-601. Loctites follow-up customer research revealed that the true target customers were machine
maintenance and repair workers After revising the profile of its target customer, Loctite renamed the
product Quick Metal and reintroduced it along with new ad copy aimed at the machine maintenance and
repair workers.
MESSAGE REINFORCEMENT
Ads that bring a company a good response rate, however, need to be continuously reinforced to keep
the rate high.
STIMULATING CUSTOMER ACTION
Informing target customers and maintaining awareness often are not enough to stimulate customer
action. More is needed, particularly for new products whose benefits customers do not fully realized
until they try them.

case study: 3M (post it)

PUSH VS PULL COMMUNICATION STRATEGIES
PUSH VS PULL COMMUNICATION STRATEGIES
Pull strategy = customer directed marketing communication
A pull strategy must ensure that channel intermediaries carry the product in sufficient
quantities.
Push strategy = channel intermediaries marketing communication
Push strategy goals: to motivate channel intermediaries to carry a particular product or brand
and, in this way, to make it more available to customers. When they are successful, push
communications result in wider availability, fewer stock-outs, more-visible merchandising
(taking up more shelf space), and a more efficient use of marketing dollars
PULL COMMUNICATION AND CUSTOMER RESPONSE
case study: L&M cigarettes
The product had good brand recognition and good customer pull, but without continued
reinforcement of the brand name and its positioning, the product faded from customers
minds and, eventually, from the marketplace.
ADVERTISING ELASTICITY
Advertising elasticity: Consumer response to advertising costs
Measurement: the percentage change in sales or volume per 1 percent change in advertising
expenses.
A study of 128 advertising elasticities found that the average elasticity was 0.22, and few
elasticities were greater than 0.5.
ADVERTISING CARRYOVER EFFECTS
Advertising carryover: the advertising effort made in a given period will produce additional
sales response in subsequent sales periods
average carryover coefficient equal to approximately 0.5
ADVERTISING CARRYOVER EFFECTS
ADVERTISING CARRYOVER EFFECTS
PROMOTIONAL PRICE ELASTICITY
The average price elasticity for consumer nondurable products is 1.76, according to a study of
367 brands
PUSH COMMUNICATIONS AND CUSTOMER RESPONSE -
Trade Promotions and Customer Response
trade promotions involve price reductions to distributors or retailers. The idea is that the
price incen
In many instances this strategy backfires.