Market Communication - One step Model
Model of a one-step communication / information transmission
Information transmission
Advertising message
Advertiser Customer
Intended Coded Received Decoded Behavioral
signal signal signal signal effects
Sender Advertising Recipient
medium
Feedback
The sender has to ensure that the recipient can decode the message correctly.
Market Communication - Two Step Model
Model of a two-step Communication / Information transmission by mass media
Opinion leaders are Members of the "followers“-group
influenced by experts are influenced by the
opinion leader
Mass media Mass Opinion leader Personal "Passive" audience
communication communication
Opinion leader is the central element. He obtains a mediating role where he passes on information to advertising
subjects in his social environment.
Customer Satisfaction - Graphic
Graphic of customer satisfaction as a result between expectation and perceived performance quality (customer
satisfaction = B / A)
A Individual B
(subjective)
expectation of
Customer
Perceived product- /
service quality
Process of comparison
Customer Satisfaction - Graphic
Graphic of customer satisfaction as a result between expectation and perceived performance quality (Customer
satisfaction = B / A)
A Individual B
(subjective)
expectation of
Customer
Perceived product- /
service quality
Process of comparison
Customer Satisfaction
A product leads to customer satisfaction if it is capable to satisfy customer‘s requirements
(Expectations-Experience)
On Purchase Usage
Expectation of Product Experience
the product with the
Comparison product
Accord with the expectations
that a customer has on the Customer Satisfaction Expecrations that are made
purchase of the product during the use of the product.
Purchase Decision and Influencing Variables
Factors that can influence a buying decision
„Bundle“ of
(Product-) functions
Price Type of function
Quality Purchase Design
Decision
Time relevant Physical features
availability on market (size, weight, etc.)0
Other factors (i.e.
maintenance costs, service, etc.)
Experience of Customer Kunde Invoice
Packaging
Placeholder for own Subheadline Delivery
Instructions Other communication
Usage of goods
Fax, E-Mail
Service visit
Phone conversation
Ad Offer
Price list
Brochure
Data sheet
Vendor contact
Product presentation
Purchase Decision Process - Circle Pre- acquisition
Interaction cycle and phases of the purchase decision processes
Order handling
Order Inquiry
Purchase
Decision Process
Negotiations with
customers phase
Bidding phase
Submit tender to Offer preparation with
customer cooperation partner
Development Stages of Customers
Different “stages” of customers with increasing customer satisfaction and customer loyalty
Suspected / Promising Qualified new customer with potentially strong interest in the product or service.
new customers (prospects) Existing financial resources.
First-time customers
Repeated customers If necessary procurement from suppliers or competitors.
Customer loyalty strategies to induce repeated purchases.
Exclusive customers
Purchase only from a certain provider / your company and don’t accept
Actively advocating partners competitive products.
Integrated partners Use of CRM tools e.g. membership in a customer loyalty club. Transfer positive
aspects about the company / product to other potential customers.
Active cooperation between customer and company. (especially B-to-B)
Development Stages of Customers
Different customer “stages” with increased customer satisfaction and customer loyalty
Suspected / First-time Repeated Exclusive Actively Integrated
Promising customer customer customer advocationg partners
new customer customer
(prospect)
Increasing customer satisfaction
Support ActivitiesThe Value Chain
Value that the customer is prepared to pay for the services of a company
Infrastructure management
Personal management
Technology development
Procurement
Input Operation Output logistics Marketing Service
logistics and Sales
Primäre Aktivitäten
DAGMAR-Formula
Step model of advertising effectiveness and advertising success
Theory based on the assumption that advertisement doesn’t only have economic objectives but that it also has to meet
particular communication tasks.
The advertisement goes through several levels of consciousness with each customer:
Contact Acceptance Understanding Storage Attitude Action
Is the Is the promotional Is the advertising message Is the core Is the advertising message Purchase due
advertising recognized? information recognized instantly understood by the message easily absorbed? credible, to the positive perception of
quickly? target group? likeable, prestigious? the consumer.
Core Competences
Visualize core competences as a matrix with evaluations according to increase in value for the company
and customer satisfaction
Increase in value Logistics R&D Core competences
Production Potential key skills (ressources)
low medium high
Sales
Service
Procurement
Customer not satisfied satisfied amazed
Customer Lifetime Circle
Time curve and phases of the customer life cycle (customer relationship)
Degree/ stability
intensity
extension
Quality
of the customer
relationship
development termination
Duration of
customer
relationship
initiation Customer acquisition Customer loyalty Customer recovery
- Exposure Period
- Initiation Phase - Growth Phase - Resolution Phase
- Socialization Phase - Maturity Stage - Abstinence Phase
Customer Profile
Customer profile analysis according to sales and number of customers
Sales in %
100%
90%
80% 10 Customers make
70% 50% of the sales
60% The majority of customers accounts
50% for less than 10%
of sales.
40%
30%
20%
10%
0%
0 10 20 30 40 50 60 70 80 90 100 Number of
customers
CRM- Functional Chain
A CRM- busines model should relate to a functional chain
Customer Quality Customer
Orientation Orientation Satisfaction
Customer Customer Company
Value Retention Success
CRM - Contact Chain
Company's entire contact chain from initial contact to the re-sales contact
Interested Party Customer Regular Customer
First Contact Pre-Sales-Contact Sales-Contact After-Sales- Contact Re-Sales- Contact
opinion making consulting order usage of the product repurchase
quotation purchase service
purchase negotiations delivery
Customer Lifetime Circle
CR-Marketing - Phases
Customer Relationship Marketing (CRM) is a management approach that focuses on the systematic
development and the maintenance of customer relationships
This process includes the following 5 phases:
First contact Win Inform Service Customer Care
BRAND / CORPORATE IDENTITY
Corporate Identity vs. Image
Distinction between two perspectives
Company
Corporate Image
Identity
Image from Outside
Image from inside
Branding policy
Task steps of branding
Customer loyalty
(Brand loyalty)
Security
when buying
Popularity
Recognition
Recognition of originator
(origin)
Branding policy - Requirements for a Brand
Major tasks of branding policy: development of brand names and trademarks
Criteria and characteristics of a brand
1 Brand name / marking 2 Brand protection 3 Distinctiveness
Product design Packaging Protectability of brand Difference in performance
Trademark differentiation from compared with competitive
other brands
offerings
4 Standards 5 Price stability 6 Availability 7 Publicity
Standardized Quality No specials, action prices Availability and widespread Perception and recognition in the
Consistently high Quality or sales distribution market through advertising
Differentiation of Trademarks
Examples according to trademark types
Word signs Image Trademark Word-Image Trademark
CompLogo LOGO‘S
COMPANY
COMEX ------
COMPANY
LOGO
Public recognition through unique logo. Public recognition only after long-time, Highest brand-awareness through
Easily represented in all media. ongoing advertisement. combination of logo and fonts.
Corporate Identity
The total of all communication political measures, the behavior, appearance and market communication
of a company
Corporate
Identity
Corporate Identity
Detailed overview about the three activities of a company, aligned upon its corporate philosophy
Appearance: Internal and
logo, fonts, external corporate
color, layout
communication:
press releases, ads,
posters, TV spots, staff
newspaper, customer
magazine, website,
banners, Open house,
company celebration,
trade show appearance,
packing design
Behavior from inside to outside:
to employees, customers and suppliers
Process of Benchmarking
Process chart
Develop own best practices Bench- Selection of subject
marking (product, method, process)
Determination of performance
gaps and their causes Determination of comparative
figures. Selection of
comparative business
Data mining (about secondary and primary information)
Benchmarking
Advantages and disadvantages of different forms of benchmarking
Advantages Disadvantages
Benchmarking with Highly effective Data exchange is required, may need to expose
direct competitors own data
Determines positioning of own company against
competition Competitor has more information
Focus on competition prevents new ideas (rather catch
Direct performance comparison as compared tasks are
matching up with your competion than take over your
competitor)
Benchmarking with other organizational units Easy access to data
(internal departments) Only internal view
In case of similar structures (branches, subsidiaries) In some cases similarly inefficient services are
comparisons are advantageous
compared and improvement potentials remain
Immediate response and improvement possible undetected
Benchmarking with Wide range of comparison with other industries provide Transfer of results to own company is sometimes
structurally similar new insights difficult
organizations from another industry sector
New ideas can be gained Detection and exchange of data (data transfer)
is complex
Marketing
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Sales and Profit
Introduction Growth Maturity Saturation Degeneration
Time
GRAPHICS
Competition - Graphic Own
Company
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W3 W4 W5
W2
W1
Customer
Graphic - Marketing vs. Strategy Signs
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Marketing - Buzzword Cubes
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Graphic - Letters
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Marketing - Buzzword
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Graphic - Push Button „Marketing“
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Graphic - Flowchart Sale Options
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Graphic - Marketing 4P‘s
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Puzzle - Marketing 4P‘s
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