Marketing Communications, Social Media, MBM6

and Customer Response Chapter 10

Chapter 10
 Marketing
Communication
Objectives
 Digital and Social Media
Marketing
Communications
 Marketing
Communications and
Customer Response

Marketing communications need a measurable customer-response

objective in order to be justifiably effective.
Copyright Roger J. Best, 2012
 MARKETING
COMMUNICATION
• It refers to the means
adopted by the companies
to convey messages about
the products and the
brands they sell, either
directly or indirectly to the
customers with the
intention to persuade them
to purchase.
 Marketing Communications, Social Media, MBM6
and Customer Response Chapter 10

Objective # 1:
Marketing Communication
Objectives

In this section we will look at how most marketing

communications can be placed in one of three broad
categories according to their objectives—brand-
image, brand-information, or brand-action
communications.

Copyright Roger J. Best, 2012

Marketing Communications, Social Media, MBM6
and Customer Response Chapter 10

 The Force commercial was

posted 4 days prior to Super
Bowl XLV to generate Ads buzz.
Prior to the game, there were
over 10 million views, 10,000
comments, and 62,000 “likes.”

 The Force aired during the

Super Bowl, gaining an
estimated 100 million
impressions.

 During the week following the

game, another 18.5 million
people viewed The Force on
YouTube.

https://www.youtube.com/watch?v=aNV1ufYgzr0
Copyright Roger J. Best, 2012
 MBM6
Brand Communication Objectives Chapter 10

■ Brand-Image Communications—designed 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. (Affective)

■ Brand-Information Communications—designed to
create interest and offer information in order to achieve
high recall among target customers of key product
attributes that differentiate the brand i.e. performance,
design, etc. (cognitive)

■ Brand-Action Communications—designed to
stimulate potential customers to take action, such as
contacting the company, visiting the company’s web site,
obtaining a free sample, and trying or buying the
company’s product. (behavioral)
Copyright Roger J. Best, 2012
Remember the
AIDA principle?

Attention,
Interest, Desire And
Action.
Meet the
iphone 11

https://www.youtube.com/watch?v=H4p6njjPV_o
 MBM6
Brand-Image Communication Chapter 10

What impact does this Nike brand-image marketing communication have

on you? Does it solicit an emotional response and form a positive
association between the brand and performance?
Copyright Roger J. Best, 2012
 MBM6
Brand-Image Communication Chapter 10

Copyright Roger J. Best, 2012

 MBM6
Brand-Image Communication Chapter 10

Copyright Roger J. Best, 2012

 MBM6
Brand-Information Communication Chapter 10

What information does Kyocera want you to take away from this print ad?

Copyright Roger J. Best, 2012

DHL is faster

https://www.youtube.com/watch?v=Dlx9Z0QcBds
See how Maestro Burger was https://www.faceboo
k.com/georgekardava
promoted at McDonald’s photo/videos/142192
8337869391/
What action does
Aeon BIG like you
to take after
seeing this flyer?
https://www.youtu
be.com/watch?v=b1
iJJZfB7i0
 Marketing communication helps to
enhance our attitude towards a
brand or product/service.

3 mktg comm obj – build brand

To recap image, provide brand information,
and motivate customer action.

Affective, Cognitive & Behavioral –

3 ABCcomponent of attitude that
leads us to favor or not a favor
something i.e. brand.
 Marketing Communications, Social Media, MBM6
and Customer Response Chapter 10

Objective # 2:
Digital and Social Media
Marketing Communications

In this section we will look at how the explosion in digital

and social media marketing has been the most significant
change in marketing communications since the pre-
television era—and what that means for marketers.

Copyright Roger J. Best, 2012

 Social Media – in
numbers
https://www.facebook.com/watch/?ref=
saved&v=666581163784721
Some research findings about
internet and social media

• Social media has become a major source

in influencing consumer behavior in all
stages of consumer purchase decision.
• The internet has become the top source of
media at work, and the second at home
• The consumers are turning away from the
traditional media
– Require and demand more control
• Looking towards social media for
information search and purchase decisions
• Consumers trust social media more than
corporate-sponsored communication
 Now, the managers
must realise and accept
the fact that…

• Vast amount of information

about their product is already
available in the market, and is
communicated by individuals
via social media forums
• Consumers react to this
information in ways that
directly impacts all aspects of
consumer behavior.
• They don’t trust advertising
any more
• The managers have to talk
with their customer as
opposed to talking to them
• In the era of social media, consumers are in control; they have greater access to
information and greater command over media consumption than ever before
• The traditional communications paradigm
– Content, frequency, timings, and medium of communication decisions
– Outside this paradigm, the other methods were face-to-face and WoM, but
both had minimal impact on marketing dynamics
• But this is seriously changing in the social media era
• Social media (or consumer-generated media) has changed the tools and strategies for
IMC
• Its role is twofold:
1. It allows companies to communicate with the customers
2. It enables customers to talk among one another
• It also enables the customers to talk back to the companies (Consumer-to-
consumer marketing or horizontal marketing)
• Although the second role is just an extension of the traditional “word-of-mouth”
communication, but the magnitude is at a whole different scale
 The new
communications
paradigm
Communication paradigm (example)
The race to 50
million has a https://www.weforu
m.org/agenda/2018/
06/how-long-does-i
clear winner! t-take-to-hit-50-m
illion-users/?fbcl
id=IwAR2TRX2JWQ9iF
94G_WifMOtPGNfhLlC
1y9T-YIwXUBrlBbIJc
I9lDO8Qu6g
 Social media’s hybrid role in the promotion mix

It combines characteristics of traditional IMC tools, with a highly magnified form of

word-of-mouth, whereby marketing managers cannot control the content and
frequency of such information
• “Conventional marketing wisdom has long held that a dissatisfied customer tells 10
people. But that is out of date. In the new age of social media, he or she has the
tools to tell 10 million consumers virtually overnight”
• While the companies cannot control it, they do have the ability to influence the
conversations
• “With [the] rise in social
media… [the] corporate
communication has been
democratized. The power
has been taken from those
in marketing and public
relations by the individuals
and communities that
create, share, and consume
blogs, tweets, Facebook
entries, movies, pictures,
and so forth.” (Kietzmann et
al., 2011, p. 242)
• Watch this interesting video,
made after an unpleasant
incident with United Airlines:

https://www.youtube.com/wat
ch?v=P45E0uGVyeg
 Social Media Marketing MBM6
Objectives and Outcomes Chapter 10

■ Brand Building—Deepen customer

relationships and engage in
conversations with the brand
community.

■ Information Exchange—Share
experiences and exchange information
to encourage word-of-mouth and to
better understand product usage and
benefits.

■ Problem Solving—Gather customer

feedback, provide customer service, and
resolve customer complaints.

Copyright Roger J. Best, 2012

https://www.youtube.com/watch?v=lqT_dPApj9U
BY DULUX
 MBM6
Chapter 10

Objective # 3:
Marketing Communications,
Social Media, and Customer
Response

In this section we will look at the broader issue of the

effectiveness of marketing communications, regardless
of the marketing venue used.

Copyright Roger J. Best, 2012

 MBM6
Global Media Spending 2006-2010 Chapter 10

Global ad spend growth is forecast at 3.9% in 2020, amounting to

US$615.4 billion. Global digital ad spend growth is forecast at 10.5%
in 2020, amounting to US$276 billion

Copyright Roger J. Best, 2012

 See how these
percentages
changed:

http://www.mckinsey.com/industries/media-and-entertainment/o
ur-insights/the-state-of-global-media-spending
 MBM6
Ad Frequency and Awareness Chapter 10

In order for a marketing communication to have any chance of

achieving its customer-response objective, it must have some
level of message frequency.
Copyright Roger J. Best, 2012
 Marketing
MBM6
Advertising and Customer Response Performance
Chapter
Tool 10.110

The customer response index (CRI) is based on the performance scores

along the top of the customer response tree. Where should this
business focus its efforts, given the results above?
Copyright Roger J. Best, 2012
 MBM6
Causes of Low Customer Response Chapter 10

To reach target customers effectively, a business has to have a good

understanding of the media habits of its target customers.
Copyright Roger J. Best, 2012
 MBM6
Advertising and Customer Response Chapter 10

For any level of

awareness among
potential customers,
the levels of
comprehension,
intention, and purchase
are successively lower.

Sustained profitability
depends on customer
retention, and each
step in the hierarchy of
customer response is a
step toward profitability.

Copyright Roger J. Best, 2012

 MBM6
Message Frequency and Awareness Chapter 10

A target customer is
exposed to only a fraction
of the total number of
messages in an
advertising campaign.

Nearly all marketing

communications send
more messages than the
target audience receives,
as illustrated in the table.

Copyright Roger J. Best, 2012

Gross rating points (GRPs)

the combined impact of message frequency

and reach produced by using TV ads

Means the extend to which an ad reached the

target market, and how often the was seen.

A better measure of ad effectiveness than

dollar spent on ads
 MBM6
Message Reinforcement Strategies Chapter 10

What are examples of situations when you would want to

use each of the different approaches to frequency?
Copyright Roger J. Best, 2012
 MBM6
Push-Pull Communications Chapter 10

Customer-directed marketing communications are pull communications.

Push communications are directed at channel intermediaries.
Copyright Roger J. Best, 2012
 CUSTOMER RESPONSE

• Consumer response to ads is measured

as advertising elasticity.
• It can be easily measured as percentage
change in sales or volume per 1% change
in ads expenses. E.g. average elasticity of
0.22 means -for every 1% change in ads
expenses, the volume sold will change by
22%
Advertising elasticity = % change is sales

%change in ad expense
When
Spiderman drops
at Starbucks
https://www.facebook.com/SpiderManMovi
e/videos/1366777870064786
/
 Ads carryover effects
• It relates to a long run effect of an ad. Ads
effort made in a given period will produce
additional sales response in subsequent sales
period. E.g. ads for religious celebrations and
new year will still create positive effects next
year at the same period of sales (range from 0
to less than 1)
 Marketing
MBM6
Advertising and Sales Carryover Performance
Chapter
Tool 10.310

Copyright Roger J. Best, 2012

 Without effective mktg
comm program, a mktg
strategy will fail

The importance of social

Summary media in marketing
communications

To build mkt share, a

business needs both pull
and push mktg
communication strategy