Monday, 16 September 2013

TriMark Presents: Integrated Marketing Communications



The Customer Initiated Marketing Communication Model


 Understanding Duncan’s Customer Initiated Communication Model


          Marketers recognize that in the modern world of marketing there are many different opportunities and methods to contact current and prospective customers to deliver information about a company and / or brands (Belch et al, 2009, p. 14). Marketing communication is about building relationships, providing a brand identity, and forming ways of delivering the brand message of a company. How a customer interacts with this communication will impact on how the messages are received, interpreted, remembered and shared. 



Figure 1: Customer Initiated Communication Model


Communication in the marketing world is shifting from ‘talking at’ to ‘talking to’ customers. Duncan’s model focuses on customer initiated contact with a company or brand, and explores how this contact can be utilised by marketers to create more integrated and meaningful two-way communication. This communication is based upon a brand’s identity and message as perceived by the customer, who facilitates communication, pre and post purchase of a good or service. Examples given by Duncan include complaints, enquiries, suggestions, feedback, requests and compliments (Duncan, 2005, p.16). 
       The poster-child for this interactive, two-way dialogue is the internet (Duncan, 2005, p.16), creating more opportunities for faster, easier two-way communication and ultimately allowing customers to actively initiate communication with a company.  Unlike traditional forms of marketing such as advertising, the new media allows users to perform  a variety of functions, such as, receive and alter information and images, make enquiries, respond to questions, and of course make purchases, all in real time (Belch et al, 2009, p. 20). 
       The internet and the arrival of social media platforms has provided consumers with the ability to interact with, evaluate, share experiences, and give feedback about products, services and companies. It is easy to use, available 24 hours a day, and globally accessible. It is more powerful and faster than literal word of mouth and the sentiment that a ‘lie can travel halfway around the world while the truth is putting on its shoes’ is even more valid in the new media ecosystems. 
       Marketers are challenging the accepted methods of communicating with customers, and building relationships through two-way dialogue in the new media ecosystem; cutting out the ‘noise’ as suggested by figure 1 above, and ensuring that communication is swift, acknowledged, and respected.



 Social Media and Citizen Journalism: The Social Media Ecosystem


The Australian Bureau of Statistics gathered social media presence data for the first time in 2013 and concluded that one in five businesses use social media for information gathering and research (ABS, 2013). Social media includes blogs and micro-blogs (i.e. Twitter), content communities (i.e. YouTube), and social networking sites (i.e Facebook). Social networking sites and the internet in general have created a booming platform for user-generated content that allows anyone to create and interact with knowledge. In particular, looking at the social media platform Facebook, there is an average of 665 million daily active users (See figure 2 below). These active users are engaging, not only locally with friends and family, but with business pages and are accessing ‘global knowledge’.

Figure 2:Facebook's Growth in the Past Year

An advantage of connectivity and the freedom of user-generated content is citizen journalism; a new wave of journalism sprouting from the ease of the internet and social media, which empowers the everyday citizen as the creator of everyday information. Gillmor believes the rise of the citizen-journalist will help us listen (2004, p.63). What citizen journalism creates is a voice for the voiceless, allowing information to be retrieved from target markets in a natural way i.e. rather than formal market research. Social media is a large platform for citizen journalism particularly in the format of blogs and twitter.
            How does this social media ecosystem impact the way they approach building relationships with customers? The social media ecosystem centers on the consumer experience (Hanna et al, 2011, p.267). As Dury states ‘marketing is no longer one-dimensional; it is now a two-way process engaging a brand and an audience. It is about receiving and exchanging perceptions and ideas’ (Dury, 2008, p.275).  It is integrated communication that is no longer ‘talking at’ customers but rather ‘talking with’ customers. 




Example 1: Vanish Napisan Australia          

            Vanish Napisan Australia and their ‘Trust Pink. Forget Stains’ campaign is a great example of the use of IMC. Their current website hosts a range of interactive components for their consumers, particularly the ‘Stain-solver’, an interactive questionnaire that allows customers to seek information regarding how to deal with particular stains. They have also utilized social media incorporating a Facebook page link onto their website, ‘Like us on Facebook. Hate Stains! Like Vanish!’. Most impressive is their latest series of T.V advertising featuring YouTube videos featured on their website called the Tip-exchange. Customers are invited to share their stain removing advice with a community of fellow Australians. The perfect mix of shared knowledge and integrated interaction with consumer and company. 

Check out vanishstains














The Icelandic tourist board wanted to advertise and promote Iceland in a unique and interesting way, just like the country itself. The media agency Takk Takk personified Iceland and created social media accounts as the country, with followers able to interact directly and promote the country from posting their own experiences online. Iceland wants to be your friend.com has proved a very popular hit, and the attention to detail, the rapid replies to posts, plus the wit, humour and craftmasnship behind the campaign has made this a very successful two way communication campaign.

Check out http://www.takktakk.com/presents/icelandwantstobeyourfriend/

Check out Iceland Vimeo Channel


















Created by Bianca Bowers. Edited by Karen Jousiffe and Bradley Supple.

References:
ABS (Australian Bureau of Statistics. (2013) 8129.0 Business Use of Information Technology 2011-12. Released 22/08/2013. 
Belch, G., Belch, M., Kerr, G., and Powell, I. (2009). Advertising and Promotion: An integrated marketing communication perspective. Sydney: McGraw Hill.
Drury, G. (2008). Opinion piece: Social media: Should Marketers engage and how can it be done effectively? Journal of Direct, Data and Digital Marketing Practice, Vol 9, p. 274-277.
Duncan, T. (2005). Using advertising and promotion to build brands. In Principles of
advertising & IMC 2nd ed., p.4-24. New York: McGraw-Hill.



The Consumer Decision Making Model


The consumer decision making process is at the heart of strategic marketing plans. Marketers use this process as a reference point, helping define the space they compete in, to identify potential touch points for customers and how best to implement IMC campaigns. It is important to consider which communication tools to utilise, when, to deliver organisations the “biggest bang for their buck” by effectively influencing consumer’s attitudes to their brands. Below shows how the consumer decision making process progresses in its simplest form (Clow and Baack, 2014, p. 68).
Figure: Consumer Decision Making Model based on Clow & Baack, 2014
            















As Funeral Insurance is not something that consumers generally search for, marketers induce problem recognition that encourages consumers not to be content with their current situation, running emotionally charged TV commercials during popular morning television programs targeting the 60+ age bracket. 
Problem Recognition
The first phase of the consumer decision making model (Clow and Baack, 2014, p. 68) is when the consumer becomes aware of a need or want. This is sometimes driven from basic needs (thirst, hunger) or from  friends, colleagues or peers recommendations. Other times marketers have to make the consumer aware that they may need the product or service. Print and television media can be good for generating this desire and is a good tool for the problem recognition stage. Finding ways to influence the consumer purchasing process continues to be a vital communications activity. To ensure that customers buy their products, the brand must resonate in the problem recognition stage.
Since basic physiological needs are met in most developed countries, marketers often sell products that fill basic physiological needs by appealing to consumers ‘higher-level needs (Belch et al, 2009, p.110). Suncorp Insurance helps to “reduce your family’s financial burden during what is an emotional time”. By applying online customers also receive a free $50 Gift Card (SUNCORP Insurance, 2013). SUNCORP focuses on the love between older generation partners and their siblings (social needs) so that when someone passes, paying for a funeral is not an issue.

  Information Search
The information search phase is essential to the consumer following through with a purchase. There are now new formats for seeking information, particularly the internet.
“The internets greatest strength… is also its greatest weakness” (Qualman, 2013). Search engines provide a way to filter the wealth of information that is available on the internet. The average searches per day on Google is over 500,000,000 making it the top search engine with YouTube (also owned by google), second (Statistic Brain, 2003). Businesses can take advantage of this by Google Ad words, which is sponsored links and advertisements when certain words are searched, making the relevant information more accessible to the customer.Websites are advertising & informational - content is very important, especially when consumers choose more complex purchases, at this point the information-providing aspects of advertising are extremely important (Belch et al, 2009, p.113).
Ease of navigation is key to successful information searches on the internet.The Webby Awards is the leading international award honouring excellence on the internet (The Webby Awards, 2013). The Webby Awards give prizes for the best websites - nominee for the commercial communications category was snowbird ski resorthttp://www.snowbird.com/ ,an informative and easy to navigate website. 

Evaluation of Alternatives
When people are evaluating the alternatives before purchases they are now asking friends through twitter or facebook “what do you think of the new bugaboo pram?” Also forums, review sites and blogs are ways of receiving evaluations of other products. The findings of the 2012 Local Consumer Review Survey (2012) show a positive shift in consumer trust and appreciation of online reviews. Approximately 72% of consumers surveyed said that they trust online reviews as much as personal recommendations, while 52% said that positive online reviews make them more likely to use a local business (Anderson, 2013) .
PayU2Blog is  a company that pays you to blog/advertise about their products. Some popular blogs are paid to plug particular brands and evaluate them (PAYU2BLOG, 2013). Blister Gear Review is a paid ‘reviewer’ and was given Nike's boots to evaluate for free. People read his blogs as a way of evaluating the alternatives (blister Gear Review, 2013).

Purchase Decision
The purchase decision stage is about pricing, placement, customer service and ease of purchase, ultimately persuading the customer to make a decision with a certain brand. Consumers when making a purchase may choose specific brands that they have built up a preference for (Belch et al, 2009). The Qantas frequent flyer scheme is a good example of this and a good way to build brand loyalty and keep customers flying with the airline. They have a great website where you can easily track your points and see them grow. They have regular Special offers / Discounts / Freebies and extras e.g. (purchase through the internet and save 10%) (Qantas Frequent Flyer, 2013).
Purchase decision is also about ensuring ease of purchase for the customer. An example of tools utilized by companies to aid this is free shipping and delivery particularly in regards to online sales. Nextdirect.com an online fashion store offers free express delivery in 5 days anywhere in Australia, easy local returns and convenient and secure payment methods. By recommending a friend you also receive $10 off your next purchase (Next Direct, 2013). 

Post Purchase Evaluation
The consumer decision making process does not end with the purchase. After using the product or service, the consumer compares the level of performance with their expectations and is either satisfied or dissatisfied. This is a very important time for marketers, unhappy customers may not only not purchase the product or service again they will spread negative-word-of-mouth information about the product.
Sending follow-up letters and communication via email, or phone is important, in order to reassure buyers and help reinforce the wisdom of their decision. Providing toll free number, or e-mail addresses for consumers to contact if they have a question or complaint about a product. Generous return and refund policies combined with extended warranties and guarantees also help to ensure customer satisfaction (Belch et al, 2009, p. 122).
Example: In order to prevent post-purchase dissonance, members of the “Supercheap auto club plus +”  have the difference between items they have purchased and advertised items credited to their account if items are advertised cheaper within two weeks of the original purchase (Supercheap Auto, 2013). 



Created by Brad Supple. Edited by Bianca Bowers and Karen Jousiffe.


References:
Belch, G., Belch, M., Kerr, G., and Powell, I. (2009). Advertising and Promotion: An integrated marketing communication perspective. Sydney: McGraw Hill.
Clow, K., and Baack, D. (2014). Integrated Advertising, Promotion, and Marketing Communications. Sydney: PEARSON.
PAYU2BLOG. (2013). Retrieved September 16, 2013, from PAYU2BLOG.com: http://www.payu2blog.com/
Qantas Frequent Flyer. (2013). Retrieved September 16, 2013, from QANTAS: http://www.qantas.com.au/fflyer/dyn/program/index
Qualman, E. (2013). Socialanomics: how social media transforms the way we live and do business. 2nd Edition. John Wiley & Sons, New Jersey
STATISTIC BRAIN. (2013). Retrieved September 16, 2013, from www.statisticbrain.com: http://www.statisticbrain.com/google-searches/
SUNCORP Insurance. (2013). Funeral Insurance. Retrieved September 9, 2013, from SUNCORP Insurance: http://www.suncorp.com.au/insurance/life-insurance/funeral-plan
Supercheap Auto (2013). Supercheap Auto Club Plus +. Retrieved September 9, 2013, from Supercheap Auto: http://www.supercheapauto.com.au/clubplus/
The Webby Awards. (2013). Retrieved September 14, 2013, from webbyawards.com: www.webbyawards.com/about/