- A 60% increase in the number of tweets received by airlines between February 2011 and March 2011.
- 40% percent of airlines are expanding their social-media teams.
- KLM has 125,000 Twitter followers and 200,000 Facebook fans with 23 dedicated staff focusing on social media.
- Southwest Airlines has 1,100,000 Twitter followers and 1,390,000 Facebook fans with 4 dedicated staffs trained in social media (Pamaroma, 2010).
Clorox started a new facebook campaign in 2010 to increase awareness of green works. Targeted audience was females aged 25-34 and offered various incentives (Such as $3 off coupon) for visiting Facebook page. An 11% engagement rate set records for the company, and this engagement was later correlated to a 12% increase in brand awareness in a Nielsen study. Engagement was so high that more than 20,000 fans submitted comments (citizen journalism) and 33% of its total 89,000 connected people can be directly linked to advertising. Intent to purchase the Green works detergent among facebook users increased after 2010 coupon offer by 7% (Dyer, 2011).
A report by McCann WorldGroup revealed that the ‘Millennials’ (16-30 years old) group broadcast and express themselves via citizen journalism, such as, blogging, photos, editing software and share brands they like with their friends. This report advised marketer that brands should align their marketing efforts with what’s important to this generation. Advertising should be genuine, truthful, sociable, mature and humble in its efforts to create connections. Marketers should not overestimate their own importance (Dyer, 2011).
Both Social Media and Citizen Journalism are all about feeding news in any form and the vetting process of information that comes through social networking goes through various personnel in the chain of custody like friends and family friends of friends that make it trustworthy to many. This is the reason many scholars believe that citizen journalism has great positive impact for any business and social media is constantly helping citizen journalist to empower not only businesses but individuals also (Transparency International Srilanka, n.d.).
Citizen journalism is spreading through blogs and many forums in different parts of the world where audiences discuss and analyze stories appearing in the media. Detractors however criticize citizen journalism and say there are many risks, particularly the potential of false news being published online (Citizen journalism phenomenon, 2011). A story headlined ‘Steve Jobs rushed to ER following severe heart attack” posted on CNN’s iReport on 3 October 2008 illustrates the dangers of citizen journalism. This story was completely false, but it affected Apple’s share price tremendously. There are many more examples in different parts of the world where unverified report or images have been submitted and used in mainstream media only to turn out to be false or manipulated (Citizen journalism Phenomenon, 2011).
A report by webtrends tried to find out the effect of social networks and the mobile web on website traffic (Webtrends, 2011). The report found that Facebook stores are very efficient acquiring visitors at no cost through wall posts. The report concluded that Facebook is increasingly chosen over the websites of certain companies. Although some websites are sustaining traffic in spite of Facebook, but the report predicts that Facebook will soon catch up with e-commerce in a big way. Since mobile web is also growing in size and popularity, the report advised brand marketers to understand that surviving online is no longer about all-in-one websites, but measuring and improving performance in all the social, mobile and web entities (Webtrends, 2011).
Professionals can promote themselves and their companies through LinkedIn. This site has over 60 million members and a new member joins every second. LindkedIn can increase visibility of company and its products. Professionals can research their competition, customers and partners. This social site offers an amazing opportunity to generate new leads and can be connected with qualified professionals to accomplish goals and expand the business. This is the reason more and more professionals are using LinkedIn to build relationships, meet new contacts and market themselves and their businesses. Marketers should not under utilize its functionality and can turn it into a powerful networking tool (Pamaroma, 2011).
Conclusion
Understanding of social media and citizen journalism can play a crucial role in IMC plan. This report briefly analyzed how social media can promote business at low cost and citizen journalism can have both positive and negative impact on businesses.
Reference:
Belch, G. E., Belch, M. A., Kerr, G. & Powell, I. (2009). Advertising and Promotion: An Integrated Marketing Communication Perspective. Sydney: McGraw Hill.
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Assignment 3
Part B
“The basic model of consumer decision making on page 127. Investigate this model and how an organization might use communication tools to walk the consumer (or business consumer) from awareness to becoming a loyal customer. This will include how different tools might be used at different stages of the model, consumers current attitude towards brands/products and services etc. As with the above provide academic support, statistics and examples.”
Integrated Marketing Communication
(MBA 570)
Zaved Mannan
D-6 Tower Bhaban, Fuller Road
Dhaka University Campus
Dhaka 1000
Bangladesh
Student ID: 11320053
Date: 12.08.2011
Charles Sturt University
Australia
Table of Contents
Executive Summery 13
Introduction 13
Brief History of 5M Planet 13
Consumer’s Decision Making Process 14
Stage 1: Problem Recognition 14
Stage 2: Information Search 15
Stage 3: Alternative Evolution 17
Stage 4: Purchase Decision 18
Stage 5: Post Purchase Decision 18
Conclusion 19
References 20
Executive Summery
This report will analyze different stages of consumer decision making model and how marketers use various communications tools in each stage of this model to make the consumer loyal to the brand.
Introduction
In marketing practice, managers such as those involved in the development and marketing of Mobile phone face a wide variety of problems and opportunities that require careful consumer research, analysis, and marketing thought (Quester et al, 2011). The first purpose of this report is analyze consumer decision making model. The second purpose is to analyze how an organization might use marketing communication tools to create awareness and make the consumer loyal to the organization. This report will use ‘5M planet’ as an example to investigate how different tools might be used at different stages of the model.
Brief History of 5M Planet
5M Planet was launched by 5M Group. The first 5M Planet store was inaugurated in Dhaka in the year 2007 (Welcome to Planet M, 2011). The brand was positioned purely as a Music Store with a brand statement “Music Store of The Universe”. The Mobile segment was introduced into 5M Planet in October 2010 with creation of ‘Shop in Shop’ in selected 5M Planet stores (Gapper, 2009).
The Consumer’s Decision-Making Process
Figure1. “Stages in the Consumer’s Purchasing Process” outlines the buying stages consumers go through.
Figure1. “Stages in the Consumer’s Purchasing Process” (Source: Tanner et all, n.d.).
Stage 1.Problem Recognition
Belch et all (2009) defines problem recognition as “difference between the consumer’s ideal state and actual state.” Previews of 5M planet at movie theaters help consumer to recognize their needs.
Stage 2.Information Search
After recognizing the needs, consumer begins to search for information needed to make a purchase decision. Information search can be internal or external (Belch et all, 2009).
5M Planet is informing the targeted consumers about their mobile phones through by using following communication tools (A Report on Retail Strategies of Planet-M, 2011):
- Hip and trendy, with eye catching visuals;
- Brand building advertisements for consolidating image;
- Constant touch with customer through event and promotion advertising;
- Inform customers about the products available in the store;
-
Brand awareness though out the country (A Report on Retail Strategies of Planet-M, 2011).
- Website with e-commerce, blogging and forum facilities.
- Online presence in Facebook, twitter, linkedin and other social networking sites.
- Email marketing through out the country.
- To create awareness for all the music, movies and mobile phone lovers;
-
Brand establishment (A Report on Retail Strategies of Planet-M, 2011).
- Events & Promotions at 5M Planet:
- Sustaining excitement and driving traffic;
- Regular famous artists and celebrities visit at 5M Planet;
- Breaking Acts through artists and celebrities visits, music launches - make the brand proposition come alive;
- Thematic promotions;
-
Continuous advertising and media presence (A Report on Retail Strategies of Planet-M, 2011).
- Building Communities Through Music Work Shops:
- Workshops in Jazz, Indian Classical, Instrumental, World Music;
- Also Rock Music and Dance Workshops;
-
Encourage sale of niche genres (A Report on Retail Strategies of Planet-M, 2011).
- Thematic promotions for increasing seasonal sales;
- Product promotions around new International albums to create excitement in-store;
- Music concert promotions to ride on artist popularity - Bryan Adams, Mark Knopfler, A R Rahman, etc.
- All promotions backed by visual merchandising elements;
-
Most promotions are advertised through press or TV (A Report on Retail Strategies of Planet-M, 2011).
- In store Promotions: Creating Excitement:
- Red Hot Sales is the biggest promotion in Music & Movies category;
- It happens once in year, tat is, it starts by November & it lasts for two months;
- It’s mainly to grab more footfalls in the store, more sales, sometimes stock clearing;
- Thematic Promotions: Creating the Brand Connect;
-
Exclusivity’ Promotions: Creating Competitive Advantage (A Report on Retail Strategies of Planet-M, 2011).
- Store as an advertising medium;
- Sponsoring various game (such as, cricket, football or national events);
- Branding, retailing, sampling, announcements;
- Tie up with like-minded brands;
-
Making shopping more interesting for customer (A Report on Retail Strategies of Planet-M, 2011).
5M Marketers can also consider some internet shopping sites such as Amazon.com, Epinions.com, etc. These are the common source of information about products. They offer product ratings, buying tips, price information, consumer reviews. However, 5M planet is serious about advertisements, brochures, company website and salespeople. Because these tools are considered as neutral source of information (tanner et all, n.d.).
Stage 3.Alternative Evaluation
In this stage, consumer compares various products they have identified through information search. It also referred to as consumer’s evoked set (Belch et all, 2009).
Evaluation criteria such as price, size, color, etc are important to consumers and each criteria varies from consumer to consumer (tanner et all, n.d.).
5m Planet’s marketer try to remind consumer through magazine ads, packaging information and its web site that consumer should pay attention to these features. These features are key selling points for marketers.
Stage 4.Purchase Decision
After evaluating information about alternative brands in the evoked set, consumer make a purchase decision. Consumer may develop a purchase intention in this stage and marketers know that purchase intention is not same as an actual purchase (Belch et all, 2009).
5m planet uses different communication tools to influence purchase decision, such as customer oriented sales person, website with e-commerce facility and a large number of stores. 5M planet knows that maintaining consumer’s brand loyalty is not so easy (Belch et all, 2009).
Some times consumers are confused and they don’t know where and how to purchase and on what terms, consumer might have time to go to the store and they might prefer to buy online (Tanner et all, n.d.).
Stage 5.Post purchase Evaluation
After using the product, consumer compares the level of performance with expectations. The post purchase evolution process is very important for company because satisfaction or dissatisfaction will influence the likelihood of future purchase (Belch et all, 2009).
5M planet implements various marketing tools to prevent buyer’s remorse. For accessories items, they offer a money back guarantee. 5M also encourages their salespeople to tell consumers what a great purchase they made. For mobile phones, marketers offer a warranty, along with instruction booklets, and a toll-free troubleshooting line to call. Or they might have a salesperson call consumer to see if consumer needs help with mobile (A Report on Retail Strategies of Planet-M, 2011). 5M Planet has started taking customer feedback online. Once the feedback comes to the back office, there is immediate action taken on that. The Store Manager takes the customer request directly for immediate action. 5M Planet has Customer Loyalty Program. 5M Members receive card called M-Xtasy world. (A Report on Retail Strategies of Planet-M, 2011).
Conclusion
The purpose of this report has been to give readers a fundamental understanding of and curiosity about how consumer behave with respect to consumption activities and how marketer can use various communication tools to keep the customer loyal to the business.
Reference:
A Report on Retail Strategies of Planet-M, Retrieved April 21, 2011, from, www.scribd.com/doc/17301554/PLANET-M .
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Kotler, P., Keller, K. and Burton, S. (2009), Marketing Management, Pearson Education, Australia.
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Quester, P., Pettigrew, S. and Hawkins, D. I. (2011), Consumer Behaviour: Implicaitons for Marketing Strategy, McGraw Hill, Sydney.
Solomon, M. (2003), Consumer Behavior: Buying, Having and Being, Prentice-Hall of India, New Delhi.
Teen Market Profile, Retrieved April 21, 2011, from .
Tanner, J., Raymond, M. A., & Dewitt, T. (n.d.). Principles of Marketing, Flatworld Knowledge, http://www.flatworldknowledge.com/node/158920?&webSyncID=eb91709e-8c2e-569c-b6ac-5ae06b880a65&sessionGUID=8990a75c-4bee-a698-d975-594051bde734
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