Communication Process Medium Feedback Outcome Sender Encoding Sender Encoding Receiver Decoding Receiver Decoding Noise Original Message as intended The message can suffer distortion as it moves through the medium, either inadvertently as a result of the technology of the medium or from beliefs about messages that use the medium. Message enters the receiver’s decoding process Noise Feedback Noise Feedback with distortion Noise Outcome can be an action, modification of or formation of a belief, increased awareness, etc. Message Feedback: Information about the outcome returns to the sender, with the potential of additional noise. Noise: Noise can be a belief or predisposition which acts as a filter that interprets messages. Noise can also distort messages. Distortion can be caused by misunderstanding, misinterpretation, rumor, pre-determined beliefs, and other competing influences, such as fatigue, distractions, crises, and competitive messages. Noise can occur anywhere in the communications process. Message Feedback Exhibit 15-1

 Members of the buying center respond to messages; media are only a means of delivering messages  Messages must assist members of the buying center to progress through the buying decision process  Messages must be crafted to implement the positioning chosen in the design of marketing strategy

Implications for getting the best messages to audiences in business marketing communications:  Be aware of differences in jargon between industries  Be aware of limitations/distortions introduced by various media  Seek feedback quickly, in all forms, to make adjustments as necessary  Recognize that the customer, message, and the media combined should be selected as the most appropriate for the customers’ industry

 Includes the following elements: o Personal Selling o Advertising o Sales Promotion o Public Relations

 Person to person conversation  Immediate feedback allows adaptation of message  Costly per contact, but  Effective to persuade

 Paid access to media – monologue conversation often with no direct feedback  Needs to carry short message  Low cost per contact  Usually not good for direct influence on final decision

 Inducements to action – enhance value  Three general kinds of promotions o Sales promotion focused on sales team support o Sales promotion focused on middlemen support  “push” promotions o Sales promotion focused on customers  “pull” promotions

 Efforts to get favorable coverage of the business by third-party media and publics – convey simple messages through third-party media  Build a relationship with media  Creativity in getting coverage  Useful to retain a PR agency

In the Process Flow Stages… Definition Stage Problem definition Solution definition Product specification Selection Stage Solution provider search Acquire solution provider(s) Deliver Solution Stage Customize as needed Install/test/train End Game Stage Operate solution Reach end result Evaluate outcomes Determine next set of needs Non-personal communication can… Help identify problems; Provide info for defining solutions; Help customers remember vendors Provide info on vendor; Provide info on products and partners Deliver service and training info Provide reinforcement; deliver service info; share performance data for evaluation Using… Advertising; Website; Trade show participation; Publicity Website; Direct mail Website Website; advertising; Public relations Exhibit 15-3

 Starts with knowledge of customers  Maintains a clear and consistent message o Web communications allows many messages to be perceived by people in other segments o Any incongruence will quickly be noted and communicated across the web to other segments

 Update and review entire marketing effort for communication consistency  Integrated effort drives marketer to view interdependence of marketing mix, enabling o Design for the customer decision process o Recognition of promotional opportunities

 Print promotion o Print advertising o Direct mail advertising o Corporate advertising o Sales and support literature  Sales Promotion o Channel promotions o Promotional merchandise

 Personal selling;  Product presentations and demonstrations;  Relationship building with customers, channels, and company sellers;  Building customer memory with premium merchandise and print promotion;  Building credibility and customer memory with presentations, seminars, and panel discussion participation.  An opportunity for learning about customers and competitors

 Cover the technical sessions and industry-trends panel discussions  Comb the exhibit floors for interesting new products and company marketing programs  Conduct personal interviews with company insiders

 Which shows to attend  Who should go  What statement/positioning should design of exhibits reinforce

 Internet communications facilitate rapid detailed interaction between customer, marketer, seller, and service person  Advantages: o Low-cost interactivity o Immediacy, real time or near-real time feedback and adaptation  Internet communications can be effective in any stage of the buying decision process

 Know the customers as well as possible;  Coordinate Internet communications with other forms of communications;  Track effectiveness – server logs offer good data on user/customer response behavior

 Web site  Opt-in  Newsletters  Webinars  Blogs and social media

 recognize and understand their problems;  collect and compare information about alternative solutions and costs;  collect and compare information about alternative suppliers, their partners, and their successful delivery of value to prior customers  obtain additional materials  use a product configurator to test alternative solution ideas

 Designed to address different segments as viewed by the customer  Identify site visitors as they access the site  Designed for ease of use in the customer’s decision process – from the customer’s point of view

 Search engine optimization – designing the website so search engines will find it and rank it highly when customers use the search engine  Banner advertising on complementary web sites  Buying pay-per-click search words on search engines that customers will use

 Used when an interested person gives permission to send messages  Works best when the prospective customer has visited the web site and has responded positively  Must have something of value to communicate when you send the  Requires attention to updates, current information  Becoming less effective because marketers have abused the trust of the audience and sent too many worthless messages

 On an opt-in basis  Fare a little better than opt-in because they often have more of value to communicate

 If well constructed, these are relatively low-cost  Have the advantage of self-selection by prospective customers who are interested in the information

 Marketers are still learning how to use these methods  It does seem that having real mutual interests and letting the conversation progress are the keys to useful interaction