Customer Initiated Marketing Communication Model

Mohit PatiyalCSU-Melbourne 29/01/2011

Executive Summary

This report talks about different aspects of IMC-Integrated marketing

communication. Report is presented in two major sections, first section talks

about customer initiated marketing communication model developed by Duncan

(2005) and co-relating the model in context to rise of social media and citizen

journalism. Rise of social media via social networking sites as Facebook, twitter

and blogs etc. strengthen the organizations bond with the consumers. This also

provides the scope for two-way communication between the consumers and

organizations. Report also talks about who initiates the communication. It can

either be the conventional approach where consumers are the receivers, or the

other way where consumers are initiating the conversation by contacting their

relevant brands.

Second section of the report talks about basic consumer decision-

making process. Customer decision-making process involves different stages and

this section explains how organizations use different IMC tools at different stages

of the decision process to get customers from awareness stage to be the loyal

customers to the brand. Finally its shown that how different elements of IMC are

integrated to help customer to pass the decision making process.


Introduction

Griffith states “IMC means that all your company’s key product and corporate

messages, positioning, images and identity are coordinated across all marketing

communication venues”. (Griffith, 1997, p. 1). It’s evident that with the rise of

social media as Facebook and twitter, consumers are getting aware and closer to

their brands. Rise of social media has encouraged the consumers to communicate

with their brands with more flexibility than ever before. Organizations as well,

responding to the consumers with a lot of enthusiasm to make sure that their

doubts, issues will be addressed properly. This not only helps consumers to

understand their brand but also helps organization to develop long lasting

relations with their consumers. Duncan (2005) has developed customer

initiated communication model, which explains how consumers to communicate

to their brands using different social media tools. How this model works is

discussed in the first section of the report.

Consumers are aware of the products and services, but still not sure about

actual buying (Betman, 1979). This consumer decision process is described in

second section of the report and we will try to understand how companies use

different IMC tools at different stages of decision-making process to make sure

that they bring customers from awareness to their loyal customer’s pool.

Customer initiated marketing communication model

In this modern era, its not just advertising campaigns, public relations and

newspaper ads by which brands or organizations communicate with the target

prospects/customers. In reality its every element, person, activities associated

with the organization delivers the message to the customers. These visible or

invisible actions, activities make positive or negative influence on customers. The


appearance, behavior, service of the employee, product design and approach,

packaging, tone of the operator on the phone, attitude and approach of customer

care officer, all of these communicate with the customers. Customer reacts to

these actions and in his unconscious mind stores these messages to develop the

image of the brand (Belch & Powell, 2009). Customer uses his store perception to

decide about the personality and friendliness of the organization. So whenever a

customer comes in contact with the organization, he initiates a customer based

marketing communication model.

Brands observe these situations and eagerly seek to initiate two-way

communication with the customer and try to benefit with the content and

opportunity customer is giving to the organization. Duncan (2005) studied and

proposed a customer initiated communication model. As shown in fig. 1.1 below,

customer is the transmitter or initiator of communication and the organization is

considered as the receiver. It’s different to the conventional one-way marketing

approach where, customer is receiver of brand message.

Fig. 1.1- Customer initiated marketing communication model (Duncan, 2005)

ReceiverCompany

ChannelCompany

Blogs, Emails

FeedbackResponsive, Recognition, Respect

NoiseBusy Signals, Incomplete Information

MessageQuestion,

complaints

SourceCustomers


As proposed in above stated model by Duncan (2005), customers choose the

channels like emails, organization’s blogs on webpage, or even phone calls they

give opportunity to the organization’s to make new customers or retain the old

customers in long lasting relationship. The channel communications from the

customers could be complaints, enquiries about new products or services or any

other brand related content (Babin, Laurie A & Carder, Sheri Thompson (1996).

Measure of this two-way communication can provide companies with insight

into the customers and the trends in the market. When the channels identify

potential customers, companies then have great opportunity to entertain these

requests and turn them in long lasting loyal customers. Brand touch points are

the channel points where customers comes in direct or indirect contact with the

brand and tells the brand what they expect and are willing to pay for Duncan

(2005). Every open-ended communication from customers gives managers to

influence the customers about the brand, its products and service and close the

case by retaining the customers. Proper monitoring of these points directs the

managers to focus on the plan to approach the customers in their comfortable

environment. There is always noise in the market, which is the result of busy

signals, company delay, or incomplete information, and pushes customers to

indulge in two-way communication with the brand (Smith & Christine, 1995). If

customers are not satisfied with the product they tend to respond back to the

companies, and then companies provide suitable solutions to customers. It’s a

cycle but companies have to be quick and accurate in terms of their plan to retain

the customers in this competitive era.

Rise of social media has broadened the

channels and has given customers more tools to interact with the brand of their

choice. Social media sites as Facebook, twitter and MySpace are now connected

to the major brands. They have their own interactive web-space, blogs where

customers can interact with the brands one to one. This has helped companies as

customers feel more attached and close to their brands and can express their

thought more clearly and in an efficient manner. Fig. 1.2 below shows that

companies now have increased their social marketing budget in greater folds to

get closer to their customers.


Fig. 1.2 – How companies have increased their social marketing budget

Wayne Homeschek, founder of Pie-face, announced in their recent budget to

invest 500,000 of their marketing budget on social media marketing. Wayne

believes that they use social media to offer promotions and it’s an effective

approach to get closer to the customers in an interesting way. Kim Russell,

marketing manager for Nando’s Australia states, “they are going to invest most of

their budget in social media marketing as it’s the place where our customers live

and breathe”. As consumers begin to make more and more purchasing decisions

on Internet via social media sites, it is worth for companies to invest and harvest

from social media marketing.

Cartoon showing social media growth


Fig. 1.3-Shows the increase and dominance of social media marketing

As shown above in fig. 1.3, Facebook leads the social marketing ladder with more

and more consumers using these communication models to build and maintain

relations with their consumers.

With the emergence of citizen journalism,

consumers are more involved in activities as blogs, articles and sharing their

experience with other readers. Consumers prefer to share their experience with

others and this might make an effect on brand’s image and companies now a

days focus on these blogs to maintain their image in the market. Companies now

have stated new approach of marketing and getting close to consumers by

putting their advertisements on the blogs and tweets. These techniques gives

organizations a chance to make customers come to them, and express what they


think of specific brand, their experience and the changes they expect to see in the

brand.

Fig. 1.4- Most of social media sites encourage customers to follow for latest offers

Section Two: - Consumer decision making process

Belch (2009) describes consumer behavior as process and activities people

involve for searching, selecting, purchasing, evaluating, accessing, and disposing

off the products and services as per their needs and expectations. Some decision-

making processes are long term planning, research, evaluating process as buying

a car or looking for a new house investment, but on the other side some decision-

making processes are based on day-to-day life activities and needs. They might

be influenced by seeing something in store or followed by some flashy

marketing. These buying processes involve different stages, but some of them

bypass the stages and result in straight buying, as our lecturer-Belinda, bought

and wore eyelashes influenced by a friend. This example of sudden purchase

was not a compulsion and need of Belinda, but has resulted in adding grace to

her personality. Marketer’s focus on these undermines wishes and tries to target

their consumers. Fig 1.5 below shows different stages in consumer decision-

making process.


Fig. 1.5- Showing different consumer decision-making stages

Above stated figure states that consumer’s decision-making process comprises of

different stages through which buyer’s pass, evaluate them, analyzes them and

finally reach upon their decision. Decision making process also involves

psychological processes as well, which includes motivation, perception, attitude

formation, integration and learning.

First stage in consumer decision-making process is problem recognition, which

is linked to the motivation he develops to solve that problem. It’s the initiator of

the whole decision making process. Belch (2009) explains that problem

recognition is caused because of difference in the actual state of customer and

ideal state. Consumer tends to travel from actual state to his desired state and

starts thinking to reduce or emit this distance. Next step is to identify the source

of the problem. It might be due to several reasons. If customer is out of stock, it

demands for replacement and generates the problem. Simply replacing with the

usual brand customer makes this purchase decision. Dissatisfaction can also lead

to the problem, triggering the decision-making process. Change in situation and

related product purchase also develops problems and consumers tend to solve

them by initiating decision-making process. For example, moving from one place

to another results in different situations and demands for new products and

services, these actions and situations leads to purchase related decisions.

Next step is information search, which can be internal or external.

Internal search is generally scanning one’s memory and thinking about a product

or service. This can be based on previous experience of referred by friend or

family. But if internal sources are not enough, external information is required.

External search can be gathered by advertisements, or consumer awareness

websites, from where consumer can get complete knowledge of the product/


service. Once enough knowledge is gathered, next step is evaluation. This

depends on the consumer’s perception of the brand and his needs. The actual

buying process, with three possibilities, follows this step. First one is where to

buy from, next when to buy or finally not to buy. This depends upon previous

purchase experience, deals offered across dealers, time, market situation etc.

Once product is purchased, its evaluated against the desired use expectation.

This step is followed up by most of the companies in terms of advertisements,

emails, salesperson calls to make customer feel that he has made the right

decision. This helps organizations to build long lasting relations with the

consumer.

Organizations use IMC Tools to support customer’s decision-making process

As mentioned by Belch (2009), various IMC tools are available to enhance sales process. These tools can be used during different stages of consumer decision-making process and helps organizations to make customers inclined towards their specific brand. Fig 1.6 below shows different IMC tools available and implied by organizations during customer decision-making process.

Fig. 1.6- Different IMC tools available and employed


As evident from fig. 1.6, organizations use different IMC tools to encourage the

buying processes. These promotional programs are developed to focus on

ultimate customers, those planning to buy or both. It varies from product to

product thus; different tool is implemented at different stage. Promotional

programs are meant for the buyers of consumer products. Thus during the first

stage of consumer decision-making process, organizations employ mas

advertising, attracting potential customers towards their product. As its mass

approach, organizations consider this as efficient approach but at the same time

its difficult to measure the outcome.

Another tool used by organizations is

personal selling. It’s focused on certain customers and is generally applied at the

place of purchase. This approach is persuasive and organizations can give

complex information to the customers. Result of this approach is very

quantitative and helps the organizations to persuade the customer to walk from

awareness to being a loyal customer. This tool might be expensive and different

salespersons may provide different information. For example: - salespersons at

car showrooms focus on individual customers and can persuade customers to

join the brand, on the contrary another salesperson from the same

showroom/brand may provide some different information to the customer. This

might lead to conflict or may turn the customer down, but with coordinated

training, organizations can overcome this possibility. Personal selling is major

ingredient for intermediate customers. During information search process,

effective personal selling leads to a loyal customer. Buyers with special needs

need personal selling to find the best product to satisfy their needs.

Interactive and Internet marketing is two way marketing and used by

organizations to walk the customer from awareness to the final purchase. In this

stage, consumer is the initiator of communication and wants to know more about

the product/service. After sale process is complete, organizations follow up with

after sales support to retain the customer for long.

Public relations is an approach where organizations, evaluate public attributes,

identifies and evaluate individual or organization’s public interest and executes a


program to earn public acceptance and recognition. This enhances brand image

and brings consumers close to the brand. This needs to be followed by

advertisement or personal selling to make customer walk from awareness to the

loyal customer pool. Sponsorship is also another tool implied by the

organizations as part of spreading awareness and brand image. This followed by

advertisements and directed marketing brings consumers from awareness to the

group of loyal customers. For example: - Paris Hilton being offered lifetime

Starbucks membership, just for sponsoring and carrying Starbucks coffee with

her. This creates an image of the brand and consumers influenced by her, tends

to get closer to the brand-Starbucks. Also surfing brand-Rip-curl sponsor music

festivals teen music parties just to get closer to their potential consumers. These

actions create space for the brand in consumer’s mind and organizations using

other marketing tools make sure that these consumers start walking with the

brand and become loyal customers.

Fig. 1.7- How different companies use IMC tools to get closer to customers

As shown in Fig. 1.7, many companies now are taking personal perspective

approach to get closer to the customers. It involves broadcast media, print


media, Internet, direct marketing, word of mouth, event and sponsorships and

point of purchase marketing techniques to take customers from awareness to

being loyal customers.

Reference: -

George E. Belch, Micheal A. Belch, Gayle Kerr, Irene Powell (2009), “Advertising and Promotion: an integrated marketing perspective”, McGraw Hill Pvt. Ltd -Australia.

Tom Duncan & Sandra E. Moriarty (1998), “A communication based model for managing relationships, Journal of Marketing”, Vol. 62,no. 2, p. 1-13.

Lindell, P. Griffith (1997), ”You need integrated attitude to develop IMC” (Marketing News, vol. 31, iss. 11, p. 6)

Babin, Laurie A & Carder, Sheri Thompson (1996): ”Viewers’ recognition of brands

placed within a film” (International Journal of Advertising, vol. 15, iss. 2, pp. 140-151)

T. Duncan (2005), “Principles of Advertising and IMC”, McGraw Hill, Illinois, pp. 117-

225.

James R. Betman, 1979, “Factors in consumers choice: a review”, Journal of

Marketing, vol. 43, no.2, pp.37-53.

Robert E. Smith & Christine A. Vogt, 1995, “The effect of integrating advertising

and negative word of mouth communications on message processing and

response”, Journal of consumer psychology, Vol.4, no. 2, pp. 133-151.

Fig. 1.1 – Developed in reference to < Tom Duncan, 2005, “The new principles of

advertising and promotion”, 2nd ed., McGraw-Hill/Irwin, New York>.

Fig.1.2-Studied and developed from <http://mashable.com/2009/03/23/social-

media-marketing-budgets> on 15th Sep’11 at 12:30 am.

http://mashable.com/2009/03/23/social-media-marketing-budgets

http://mashable.com/2009/03/23/social-media-marketing-budgets


Fig. 1.3- Viewed and developed on < http://social-networking-websites-

review.toptenreviews.com> on 12th Sep’11 at 4:30 pm.

Fig. 1.4- Viewed and developed on < http://social-networking-websites-

review.toptenreviews.com> on 10th Sep’11 at 8:00 pm.

Fig. 1.5- Developed in reference to < Belch, Powell & Kerr, 2009, “Advertising and

Promotion: an integrated marketing communication perspective”> on 12th Sep’11.

http://social-networking-websites-review.toptenreviews.com/




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Customer Initiated Marketing Communication Model