1. Communicating with customers Prepared by: Waddah Tibawi Block 2 Section 6

2. Waddah Tibawi2 4C Model  Customer needs and wants  Cost  Convenience  Communication communication is at the heart of relationship marketing.

3. Waddah Tibawi3 Marketing communication theory List the activities that you associate with the term 'communication' when applied in a marketing context. What communication activities are you exposed to as a consumer?

4. Waddah Tibawi4 List of the activities that are associated with the term 'communication' print television advertising. direct mail advertising on the internet telephone calls spam e-mail

5. Waddah Tibawi5 marketing communications marketing communications is: a process of persuasion ( of seeking to persuade) potential customers to purchase specific goods or services. This is reflected in the models that we use to explain consumer behavior.

6. Waddah Tibawi6 consumer behavior model AIDA model Attention, Interest, Desire, Action.

7. Waddah Tibawi7 consumer behavior model AIUAPR model identifies 6 steps in the customer decision-making process: 1.Awareness - the prospective customer must be aware that the product or service exists. 2.Interest - the prospective customer must receive a message that interests him or her. 3.Understanding - the prospective customer needs to understand how well the offering meets his needs. 4.Attitude — the prospective customer must be persuaded to adopt a positive attitude to the offering. 5.Purchase - the customer carries out the transaction. 6.Repeat purchase - if satisfied, the customer will repurchase.

8. Waddah Tibawi8 decision-making process The customer is 'assisted' in this decision- making process by two sets of influences: peer group influence - family, friends and workplace colleagues will all influence the purchasing decision. Supplier influence - the provider of the goods or service will also seek to influence the purchasing process.

9. Waddah Tibawi9 Communication Ready, aim, fire organizations are looking at their relationships with customers in a longer timescale. They are moving away from the transaction-based approach. communication is a process that extends over the life of the relationship.

10. Waddah Tibawi10 Communication is a continues activity understanding customer needs identifying appropriate groups of potential customers providing information on product/service benefits to the target audience collecting information on customer satisfaction modifying the product/service on the basis of this feedback

11. Waddah Tibawi11 communication mix

12. Waddah Tibawi12 Example 6.2 Ministry of Health has responsibility for keeping members of the public informed about the services it offers for promoting good health practices amongst its population. Establish the communication framework for the three programs 1.A notice that charges for prescribed medicines are to rise, but that people over 65 and pregnant mothers are exempted from payments 2. Promotion of vegetable and fruit consumption as part of a ‘health eating’ campaign. 3. Establishment of ‘well man’ clinic to encourage middle- aged men to undergo examination for cardio-vascular problems and prostate cancer.

13. Waddah Tibawi13 Example 6.2 Choice of mediumMessageTargetaudience 1. Prescription charges 2. Health eating 3. Well-man clinic

14. Waddah Tibawi14 Example 6.2 Choice of mediumMessageTargetaudience Posters and leaflets in surgeries, hospitals and pharmacies New levels of charges Pensioners & pregnant women exempted. All adults Pensioners and pregnant women Pre- scription charges Advertising (local radio, TV, or press; billboards; posters in food stores. PR using role models Diet affects health Fruit and vegetables improve health All the local population Healthy eating Direct mail to all men over 40. Posters in daywanias, sports centers. PR using role models. Major causes of death of middle aged men are heart attack and canser Early screening can reduce risk/improve treatment All men over 40 Well-man clinic

15. Waddah Tibawi15 Communication mix

16. Waddah Tibawi16 communication mix The approach adopted by commercial organizations will depend on the nature of the product or service they offer on the strength of the organization in the market Companies that are selling branded products with a high level of consumer recognition are likely to focus their communication on advertising to increase consumer awareness. Companies that are not market leaders or that are not selling branded products are more likely to adopt a push strategy Communication are expensive

17. Waddah Tibawi17 Pull & Push strategies Pull Strategy Companies that are selling branded products with a high level of consumer recognition are likely to focus their communication on advertising to increase consumer awareness and to create a pull for the product that distributors will have to respond to

18. Waddah Tibawi18 Pull & Push strategies Push Strategy Companies that are not market leaders or that are not selling branded products are more likely to adopt a push strategy by depending on the distributor to push to customer

19. Waddah Tibawi19 Why to use integrated approach in marketing communication? There are 4 factors forcing organizations to adopt an integrated approach : Media fragmentation Innovatory media Rising costs Increasing customer sophistication

20. Waddah Tibawi20 Advertising Advertising is what most people think of when they consider marketing communications. The number of advertising messages to which the average consumer is exposed is now huge through – the press, – billboards, – radio, – television and, – the internet.

21. Waddah Tibawi21 The purpose of advertising Advertising is typically the main component of a marketing 'pull' strategy. It is used to create a demand for a product or service among potential customers, which in turn pulls the product through the distribution chain.

22. Waddah Tibawi22 advertising advertising is the most important element of the communication mix when some of the following conditions are met:  the product or service is standardized  there are many end-users (mass market)  the purchase quantity is small  sales are made through intermediaries (retailers) rather than directly.

23. Waddah Tibawi23 Advertising other purposes: Business-to-business marketing Conviction or commitment marketing - It is intended to transmit a vision of the organization - Coca-Cola and Phillip Morris. Social cause advertising Corporate advertising - this is advertising undertaken to create general awareness of an organization and to promote its credentials as a good corporate citizen. It can involve considerable sums of money (General Electric spends 40%of its advertising budget on corporate advertising).

24. Waddah Tibawi24 ACTIVITY 6.3 (i) Do you agree that advertising is used primarily for mass-marketed products or services, or can you identify other uses? (ii) Describe how an organization that you know uses advertising.

25. Waddah Tibawi25 Model of the communication process Advertising is intended to transmit a message to a target audience Message encoding; Feedback decoding Noise Message decoding; Feedback encoding Message Feedback Interference Area in which communication can take place Sender’s field of experience Receiver’s field of experience Source: Hanady Othman

26. Waddah Tibawi26 Message three main purposes: Building awareness - to inform the audience that the product or service exists, and to explain what it is or does. Creating favorable attitudes - to persuade the consumer to make a purchase. Maintaining loyalty - to reinforce the decisions made by customers and to encourage repurchase.

27. Waddah Tibawi27 The message the message must be carefully defined, it needs to meet the three criteria Relevance, Clarity, and Consistency

28. Waddah Tibawi28 The message The message needs to be relevant, emphasizing the specific benefit that is being offered to your target audience Clarity of the message Consistency is important and lies at the heart of integrated communication

29. Waddah Tibawi29 medium medium choice will depend on a number of factors: each medium has strength and weaknesses The correct choice will depend on – the objectives of the advertiser –The resources available –Other elements of the communication mix There is a range of media available for use in advertising, such as: 1.The form of print (Newspaper, Magazine leaflets) 2.Advertising on television offers a high profile to organization and the moving image creates a strong impact 3.Advertising on the internet