Ch. 15: Communicating With The Market

Communication Process

Medium

Feedback

OutcomeSender

Encoding

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

Message

Message

Feedback

Exhibit 15-1

Providing Value Through Communication

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

Providing Value Through Communication:

Elements of ModelImplications 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

General Promotional Mix

Includes the following elements:oPersonal SellingoAdvertisingoSales PromotionoPublic Relations

General Promotional Mix:Personal Selling

Person to person conversation Immediate feedback allows

adaptation of message Costly per contact, but Effective to persuade

General Promotional Mix:Advertising

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

General Promotional Mix:Sales Promotion

Inducements to action – enhance value

Three general kinds of promotionso Sales promotion focused on sales team

supporto Sales promotion focused on middlemen

support “push” promotions o Sales promotion focused on customers

“pull” promotions

General Promotional Mix:Public Relations

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

The Buying Decision Process and Potentially Effective Methods of Non-personal

CommunicationsIn the Process Flow Stages…

Definition StageProblem definitionSolution definitionProduct specification

Selection StageSolution provider searchAcquire solution provider(s)

Deliver Solution StageCustomize as neededInstall/test/train

End Game StageOperate solutionReach end resultEvaluate outcomesDetermine next set of needs

Non-personal communication can…

Help identify problems;Provide info for definingsolutions; Help customers remember vendors

Provide info on vendor; Provideinfo 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; Directmail

Website

Website; advertising; Public relations

Exhibit 15-3

Good Communication

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

Marketing Communications Plan

Update and review entire marketing effort for communication consistency

Integrated effort drives marketer to view interdependence of marketing mix, enablingo Design for the customer decision process o Recognition of promotional opportunities

Nonpersonal Promotion

Print promotion o Print advertisingo Direct mail advertisingo Corporate advertisingo Sales and support literature  

Sales Promotion o Channel promotionso Promotional merchandise

Trade Showsand Conferences

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

Public Relations

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

Trade Show Key Decisions

Which shows to attend Who should go What statement/positioning

should design of exhibits reinforce

Web and Internet in B2B Marketing

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

Effective Internet Communication

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

Internet Communication Tools

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

Website can be used by customers to

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

Internet Communication Tools:Website Design

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

Internet Communication Tools:Website Customer Draw

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

Internet Communication Tools:Opt-In Email

Used when an interested person gives permission to send e-mail 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 email

Requires attention to updates, current information

Becoming less effective because marketers have abused the trust of the audience and sent too many worthless messages

Internet Communication Tools:Newsletters

On an opt-in basis Fare a little better than opt-in

email because they often have more of value to communicate

Internet Communication Tools:Webinars—Online Seminars

If well constructed, these are relatively low-cost

Have the advantage of self-selection by prospective customers who are interested in the information

Internet Communication Tools:Blogs & Social Media

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