Term Paper Report on Consumer Behavior: Communication And Consumer Behavior | III.

A

Term Paper Report on

Consumer Behavior

Communication And Consumer Behavior Term Paper Report on:

Communication And Consumer Behavior

Consumer Behavior

[MKT 363]

Prepared for

Ms. Nazia Nabi

Senior Lecturer

Head of BBA Faculty

Faculty, School of Business

University of Information Technology and Sciences

Prepared by

Shakerul Islam Tazu

ID: 09510127

Md. Eamin Zabed

ID: 09510081

Subrata Kumar Singha

ID: 09510080

Farhana Yeasmin Lopa

ID: 09510189

Program BBA

School of Business

University of Information Technology and Sciences

Baridhara, Dhaka

December 19, 2010

Ms. Nazia Nabi

Senior Lecturer

Head of BBA

Faculty, School of Business

University of Information Technology and Sciences

Subject: Submission of the report on “Term Paper Report on Communication And Consumer Behavior”

Dear Madam,

With humble submission we want to thank you for assigning us the pragmatic report on “Term Paper Report on Research Methodology for Business: Consumer Perception on Branding Tools and re-branding UITS”. We have really enjoyed the various stapes preparing the report. We have made an analysis works and have also collected different information and primary data by surveying on the perspective. We think this report enriches our practical knowledge on Consumer Behavior.

There may be some mistakes. We think the mistakes in the report will be kindly excused.

With thanks and best regards.

Sincerely yours,

Shakerul Islam Tazu Md. Eamin Zabed

ID: 09510127ID: 09510082

Subrata Kumar SinghaFarhana Yeasmin Lopa

ID: 09510080ID: 09510189

BBA

School of Business

University of Information Technology and Sciences

Acknowledgement

One of the most pleasant parts of writing this report is the opportunity to thanks those who have contributed to it. Unfortunately, in any establishment, the list of expression of thanks- no matter how all-embracing- is always imperfect and insufficient, this acknowledgement is alike other is not an immunity.

At first we want to thanks our Almighty Allah who gave me energy and patient and also knowledge for making that kind of report. Secondly we want to thanks our course instructor Ms Nazia Nabi without whom we must be unable to make it. We are very happy to participate in this project work.

Finally we want to thanks our friends and respondents who helped us for gaining information and complete the report successfully.

Executive Summary

University of Information Technology and Sciences (UITS), the first IT-based private University in Bangladesh was founded on 7 August 2003 as a non-profit organization. From 2003 to still now in 2010, it brand image has not been developed that extent to which it should be. Our management problem was Weak corporate and market brand image of UITS. from that we found the Management Question - What is the primary reason for weak brand image of UITS? Based on these dilemma we tried to find out the reason and solutions. The objective of this research will be very obviously to find out the actual status of present branding (tools). In other words, whether the branding tools of UITS are poorly executing its works on the target audiences. And To evaluate and find out the branding tools and its impacts on the brand image of UITS. The brand image of UITS in corporate and market level is not yet recognized and unfamiliar. For that reason, most of the cases students are being deprived of the facilities comparison to the other reputed and highly recognized branded universities. From this point of view, we feel the need to improve the brand image of UITS so that students and audiences can be more brand aware about UITS. The necessity of developing a strong brand image, we have to find out the reason for poor branding and find out the better branding tools as primary initiatives. We do not want UITS be positioned When its prospective customers/students think it category is generic and the only difference is price but a branded and popular education based service organization. The necessity of developing a strong brand image, we have to find out the reason for poor branding and find out the better branding tools as primary initiatives. Branding tools Used to bring a consistent message to consumers and create a positive memorable impression, branding elements may include a name, term, sign, design or unifying combination of them, intended to identify and distinguish the product or service from competing products or services. The research had followed quantitative research. As far as the quantitative research is concerned, for the sample the main concentrations were on private university students, teachers of the university for the sake of our convenience. The survey was conducted by a structured questionnaire. The interpretations shows that 60.0% strongly agree and 23.3% agree, that is total 83.3% respondents think that - Poor branding & promotion is the strongest reason for low brand image of UITS. So That the basic concern of this study has been proved and we should use better branding tools and branding strategy to improve the brand image and strong brand equity to the prospective consumers and audiences. We tried to develop a solution model from the responses. In our recommendations we tried to define and focus on the more effective branding tools and design with extra-ordinary approaches. Our results must be helpful to the management of UITS to prevent this management dilemma and upgrade its brand image in corporate level and in the market. This report can be used for preparing any brand profile for UITS or any other private university in Dhaka city.

Table of contents

Chapter 1Introduction 01-18

1.1Problem Statement

1.2Research Objectives

1.3Background

Constructs and Concepts

Chapter 2Methodology 19-20

2.1Sampling Design

2.2Data Collection

2.3Limitations

Chapter 3Findings 20-39

Chapter 4Conclusion and Recommendation 40-41

Reference 42

1 Introduction

1.1Problem Statement

Communication and Its relation with consumer behavior.

Management Question

How is consumer behavior effected by the communication?

1.2Research Objectives

The objective of this research will be very obviously to find out communication system, process and quality and its impact on the consumer behavior. We want to determine whether communication effect the consumer behavior and learning and changes to better understand of consumer behavior in marketing field and business.

1.3Background

Constructs and Concepts:

Constructs : Consumer behaviour

is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer

Concepts

Information search

Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search.

Sources of information include:

Personal sources .

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information search is perception. Perception is defined as "the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world".

The selective perception process

Stage Description

· Selective exposure consumers select which promotional messages they will expose themselves to.

· Selective attention consumers select which promotional messages they will pay attention to.

· Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences.

· Selective retention consumers remember messages that are more meaningful or important to them.

The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand.

Information evaluation

At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organisation can use variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.Once the integration is achieved, the organisation can influence the purchase decisions much more easily.

Postpurchase evaluation

The EKB model was further developed by Rice (1993) which suggested there should be a feedback loop, Foxall (2005) further suggests the importance of the post purchase evaluation and that the post purchase evaluation is key due to its influences on future purchase patterns.

Internal influences

Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour concern with consumer need consumer actions in the direction of satisfying needs leads to his behaviour of every individuals depend on thinking

External influences

Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, market mix factors.

Constructs: Marketing Communications

Marketing Communications (or MarCom or Integrated Marketing Communications) are messages and related media used to communicate with a market. Marketing communications is the "promotion" part of the "Marketing Mix" or the "four Ps": price, place, promotion, and product.

Those who practice advertising, branding, brand language, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales promotion and online marketing are termed marketing communicators, marketing communication managers, or more briefly, marcom managers.

The communication process is sender-encoding-transmission device-decoding-receiver, which is part of any advertising or marketing program. Encoding the message is the second step in communication process, which takes a creative idea and transforms it into attention-getting advertisements designed for various media (television, radio, magazines, and others). Messages travel to audiences through various transmission devices. The third stage of the marketing communication process occurs when a channel or medium delivers the message. Decoding occurs when the message reaches one or more of the receiver's senses. Consumers both hear and see television ads. Others consumers handle (touch) and read (see) a coupon offer. One obstacle that prevents marketing messages from being efficient and effective is called barrier. Barrier is anything that distorts or disrupts a message. It can occurs at any stage in the communication process. The most common form of noise affecting marketing communication is clutter.[1]

Traditionally, marketing communications practitioners focused on the creation and execution of printed marketing collateral; however, academic and professional research developed the practice to use strategic elements of branding and marketing in order to ensure consistency of message delivery throughout an organization - a consistent "look & feel". Many trends in business can be attributed to marketing communications; for example: the transition from customer service to customer relations, and the transition from human resources to human solutions and the trends to blogs, email, and other online communication derived from an elevator pitch.

In branding, every opportunity to impress the organization's (or the individual's) brand upon the customer is called a brand touch point (or brand contact point.) Examples include everything from TV and other media advertisements, event sponsorships, webinars, and personal selling to even product packaging. Thus, every experiential opportunity that an organization creates for its stakeholders or customers is a brand touch point. Hence, it is vitally important for brand strategists and managers to survey all of their organization's brand touch points and control for the stakeholder's or customer's experience. Marketing communications, as a vehicle of an organization's brand management, is concerned with the promotion of an organization's brand, product(s) and/or service(s) to stakeholders and prospective customers through these touch points.

Marketing communications is focused on the product/service as opposed to corporate communications where the focus of communications work is the company/enterprise itself. Marketing communications is primarily concerned with demand generation, product/service positioning while corporate communications deal with issue management, mergers and acquisitions, litigation, etc.

INTEGRATED MARKETING

COMMUNICATION

The evolution of this new perspective has two origins. Marketers began to realize that advertising, public relations, and sales were often at odds regarding responsibilities, budgets, management input and myriad other decisions affecting the successful marketing of a brand. Executives in each area competed with the others for resources and a voice in decision making. The outcome was inconsistent promotional efforts, wasted money, counterproductive management decisions, and, perhaps worst of all, confusion among consumers.

Secondly, the marketing perspective itself began to shift from being market oriented to market driven. Marketing communication was traditionally viewed as an inside-out way of presenting the company's messages. Advertising was the dominant element in the promotional mix because the mass media could effectively deliver a sales message to a mass audience. But then the mass market began to fragment. Consumers became better educated and more skeptical about advertising. A variety of sources, both controlled by the marketer and uncontrolled, became important to consumers. News reports, word-of-mouth, experts' opinions, and financial reports were just some of the "brand contacts" consumers began to use to learn about and form attitudes and opinions about a brand or company, or make purchase decisions. Advertising began to lose some of its luster in terms of its ability to deliver huge homogeneous audiences. Companies began to seek new ways to coordinate the multiplicity of product and company messages being issued and used by consumers and others.

Thus, two ideas permeate integrated marketing communication: relationship building and synergy. Rather than the traditional inside-out view, IMC is seen as an outside-in perspective. Customers are viewed not as targets but as partners in an ongoing relationship. Customers, prospects, and others encounter the brand and company through a host of sources and create from these various contacts ideas about the brand and company. By knowing the media habits and lifestyles of important consumer segments, marketers can tailor messages through media that are most likely to reach these segments at times when these segments are most likely to be receptive to these messages, thus optimizing the marketing communication effort.

Ideally, IMC is implemented by developing comprehensive databases on customers and prospects, segmenting these current and potential customers into groups with certain common awareness levels, predispositions, and behaviors, and developing messages and media strategies that guide the communication tactics to meet marketing objectives. In doing this, IMC builds and reinforces mutually profitable relationships with customers and other important stakeholders and generates synergy by coordinating all elements in the promotional mix into a program that possesses clarity, consistency, and maximum impact.

Practitioners and academics alike, however, have noted the difficulty of effectively implementing IMC. Defining exactly what IMC is has been difficult. For example, merely coordinating messages so that speaking "with one clear voice" in all promotional efforts does not fully capture the meaning of IMC. Also, changing the organization to accommodate the integrated approach has challenged the command and control structure of many organizations. However, studies suggest that IMC is viewed by a vast majority of marketing executives as having the greatest potential impact on their company's marketing strategies, more so than the economy, pricing, and globalization.

ADVERTISING

Advertising has four characteristics: it is persuasive in nature; it is non-personal; it is paid for by an identified sponsor; and it is disseminated through mass channels of communication. Advertising messages may promote the adoption of goods, services, persons, or ideas. Because the sales message is disseminated through the mass media—as opposed to personal selling—it is viewed as a much cheaper way of reaching consumers. However, its non-personal nature means it lacks the ability to tailor the sales message to the message recipient and, more importantly, actually get the sale. Therefore, advertising effects are best measured in terms of increasing awareness and changing attitudes and opinions, not creating sales. Advertising's contribution to sales is difficult to isolate because many factors influence sales. The contribution advertising makes to sales are best viewed over the long run. The exception to this thinking is within the internet arena. While banner ads, pop-ups and interstitials should still be viewed as brand promoting and not necessarily sales drivers, technology provides the ability to track how many of a website's visitors click the banner, investigate a product, request more information, and ultimately make a purchase.

Through the use of symbols and images advertising can help differentiate products and services that are otherwise similar. Advertising also helps create and maintain brand equity. Brand equity is an intangible asset that results from a favorable image, impressions of differentiation, or consumer attachment to the company, brand, or trademark. This equity translates into greater sales volume, and/or higher margins, thus greater competitive advantage. Brand equity is established and maintained through advertising that focuses on image, product attributes, service, or other features of the company and its products or services.

Cost is the greatest disadvantage of advertising. The average cost for a 30-second spot on network television increased fivefold between 1980 and 2005. Plus, the average cost of producing a 30-second ad for network television is quite expensive. It is not uncommon for a national advertiser to spend in the millions of dollars for one 30-second commercial to be produced. Add more millions on top of that if celebrity talent is utilized.

Credibility and clutter are other disadvantages. Consumers have become increasingly skeptical about advertising messages and tend to resent advertisers' attempt to persuade. Advertising is everywhere, from network television, to daily newspapers, to roadside billboards, to golf course signs, to stickers on fruit in grocery stores. Clutter encourages consumers to ignore many advertising messages. New media are emerging, such as DVRs (digital video recorders) which allow consumers to record programs and then skip commercials, and satellite radio which provides a majority of its channels advertising free.

PUBLIC RELATIONS

Public relations is defined as a management function which identifies, establishes, and maintains mutually beneficial relationships between an organization and the publics upon which its success or failure depends. Whereas advertising is a one-way communication from sender (the marketer) to the receiver (the consumer or the retail trade), public relations considers multiple audiences (consumers, employees, suppliers, vendors, etc.) and uses two-way communication to monitor feedback and adjust both its message and the organization's actions for maximum benefit. A primary tool used by public relations practitioners is publicity. Publicity capitalizes on the news value of a product, service, idea, person or event so that the information can be disseminated through the news media. This third party "endorsement" by the news media provides a vital boost to the marketing communication message: credibility. Articles in the media are perceived as being more objective than advertisements, and their messages are more likely to be absorbed and believed. For example, after the CBS newsmagazine 60 Minutes reported in the early 1990s that drinking moderate amounts of red wine could prevent heart attacks by lowering cholesterol, red wine sales in the United States increased 50 percent. Another benefit publicity offers is that it is free, not considering the great amount of effort it can require to get out-bound publicity noticed and picked up by media sources.

Public relations' role in the promotional mix is becoming more important because of what Philip Kotler describes as an "over communicated society." Consumers develop "communication-avoidance routines" where they are likely to tune out commercial messages. As advertising loses some of its cost-effectiveness, marketers are turning to news coverage, events, and community programs to help disseminate their product and company messages. Some consumers may also base their purchase decisions on the image of the company, for example, how environmentally responsible the company is. In this regard, public relations plays an important role in presenting, through news reports, sponsorships, "advertorials" (a form of advertising that instead of selling a product or service promotes the company's views regarding current issues), and other forms of communication, what the company stands for.

DIRECT MARKETING AND DATABASE MARKETING

DIRECT MARKETING.

Direct marketing, the oldest form of marketing, is the process of communicating directly with target customers to encourage response by telephone, mail, electronic means, or personal visit. Users of direct marketing include retailers, wholesalers, manufacturers, and service providers, and they use a variety of methods including direct mail, telemarketing, direct-response advertising, online computer shopping services, cable shopping networks, and infomercials. Traditionally not viewed as an element in the promotional mix, direct marketing represents one of the most profound changes in marketing and promotion in the last 25 years. Aspects of direct marketing, which includes direct response advertising and direct mail advertising as well as the various research and support activities necessary for their implementation, have been adopted by virtually all companies engaged in marketing products, services, ideas, or persons.

Direct marketing has become an important part of many marketing communication programs for three reasons. First, the number of two-income households has increased dramatically. About six in every ten women in the United States work outside the home. This has reduced the amount of time families have for shopping trips. Secondly, more shoppers than ever before rely on credit cards for payment of goods and services. These cashless transactions make products easier and faster to purchase. Finally, technological advances in telecommunications and computers allow consumers to make purchases from their homes via telephone, television, or computer with ease and safety. These three factors have dramatically altered the purchasing habits of American consumers and made direct marketing a growing field worldwide.

Direct marketing allows a company to target more precisely a segment of customers and prospects with a sales message tailored to their specific needs and characteristics. Unlike advertising and public relations, whose connections to actual sales are tenuous or nebulous at best, direct marketing offers accountability by providing tangible results. The economics of direct marketing have also improved over the years as more information is gathered about customers and prospects. By identifying those consumers they can serve more effectively and profitably, companies may be more efficient in their marketing efforts. Whereas network television in the past offered opportunities to reach huge groups of consumers at a low cost per thousand, direct marketing can reach individual consumers and develop a relationship with each of them.

Research indicates that brands with strong brand equity are more successful in direct marketing efforts than little-known brands. Direct marketing, then, works best when other marketing communication such as traditional media advertising supports the direct marketing effort.

Direct marketing has its drawbacks also. Just as consumers built resistance to the persuasive nature of advertising, so have they with direct marketing efforts. Direct marketers have responded by being less sales oriented and more relationship oriented. Also, just as consumers grew weary of advertising clutter, so have they with the direct marketing efforts. Consumers are bombarded with mail, infomercials, and telemarketing pitches daily. Some direct marketers have responded by regarding privacy as a customer service benefit. Direct marketers must also overcome consumer mistrust of direct marketing efforts due to incidents of illegal behavior by companies and individuals using direct marketing. The U.S. Postal Service, the Federal Trade Commission, and other federal and state agencies may prosecute criminal acts. The industry then risks legislation regulating the behavior of direct marketers if it is not successful in self-regulation. The Direct Marketing Association, the leading trade organization for direct marketing, works with companies and government agencies to initiate self-regulation. In March of 2003 the National Do Not Call Registry went into affect whereby consumers added their names to a list that telemarketers had to eliminate from their out-bound call database.

DATABASE MARKETING.

Database marketing is a form of direct marketing that attempts to gain and reinforce sales transactions while at the same time being customer driven. Successful database marketing continually updates lists of prospects and customers by identifying who they are, what they are like, and what they are purchasing now or may be purchasing in the future. By using database marketing, marketers can develop products and/or product packages to meet their customers' needs or develop creative and media strategies that match their tastes, values, and lifestyles. Like IMC, database marketing is viewed by many marketers as supplanting traditional marketing strategies and is a major component of most IMC programs.

At the core of database marketing is the idea that market segments are constantly shifting and changing. People who may be considered current customers, potential customers, and former customers and people who are likely never to be customers are constantly changing. By identifying these various segments and developing a working knowledge of their wants, needs, and characteristics, marketers can reduce the cost of reaching non-prospects and build customer loyalty. Perhaps the most important role of database marketing is its ability to retain customers. The cumulative profit for a five-year loyal customer is between seven and eight times the first-year profit.

Since database marketing is expensive to develop and complex to implement effectively, companies considering database marketing should consider three important questions. First, do relatively frequent purchasers or high dollar volume purchasers for the brand exist? Secondly, is the market diverse enough so that segmenting into subgroups would be beneficial? Finally, are there customers that represent opportunities for higher volume purchases?

SALES PROMOTION/SPONSORSHIPS/EXHIBITIONS

SALES PROMOTION.

Sales promotions are direct inducements that offer extra incentives to enhance or accelerate the product's movement from producer to consumer. Sales promotions may be directed at the consumer or the trade. Consumer promotions such as coupons, sampling, premiums, sweepstakes, price packs (packs that offer greater quantity or lower cost than normal), low-cost financing deals, and rebates are purchase incentives in that they induce product trial and encourage repurchase. Consumer promotions may also include incentives to visit a retail establishment or request additional information. Trade promotions include slotting allowances ("buying" shelf space in retail stores), allowances for featuring the brand in retail advertising, display and merchandising allowances, buying allowances (volume discounts and other volume-oriented incentives), bill back allowances (pay-for-performance incentives), incentives to salespeople, and other tactics to encourage retailers to carry the item and to push the brand.

Two perspectives may be found among marketers regarding sales promotion. First, sales promotion is supplemental to advertising in that it binds the role of advertising with personal selling. This view regards sales promotion as a minor player in the marketing communication program. A second view regards sales promotion and advertising as distinct functions with objectives and strategies very different from each other. Sales promotion in this sense is equal to or even more important than advertising. Some companies allocate as much as 75 percent of their advertising/promotion dollars to sales promotion and just 25 percent to advertising. Finding the right balance is often a difficult task. The main purpose of sales promotion is to spur action. Advertising sets up the deal by developing a brand reputation and building market value. Sales promotion helps close the deal by providing incentives that build market volume.

Sales promotions can motivate customers to select a particular brand, especially when brands appear to be equal, and they can produce more immediate and measurable results than advertising. However, too heavy a reliance on sales promotions results in "deal-prone" consumers with little brand loyalty and too much price sensitivity. Sales promotions can also force competitors to offer similar inducements, with sales and profits suffering for everyone.

SPONSORSHIPS

Sponsorships, or event marketing, combine advertising and sales promotions with public relations. Sponsorships increase awareness of a company or product, build loyalty with a specific target audience, help differentiate a product from its competitors, provide merchandising opportunities, demonstrate commitment to a community or ethnic group, or impact the bottom line. Like advertising, sponsorships are initiated to build long-term associations. Organizations sometimes compare sponsorships with advertising by using gross impressions or cost-per-thousand measurements. However, the value of sponsorships can be very difficult to measure. Companies considering sponsorships should consider the short-term public relations value of sponsorships and the long-term goals of the organization. Sports sponsorships make up about two-thirds of all sponsorships.

EXHIBITIONS

Exhibits, or trade shows, are hybrid forms of promotion between business-to-business advertising and personal selling. Trade shows provide opportunities for face-to-face contact with prospects, enable new companies to create a viable customer base in a short period of time, and allow small and midsize companies that may not be visited on a regular basis by salespeople to become familiar with suppliers and vendors. Because many trade shows generate media attention, they have also become popular venues for introducing new products and providing a stage for executives to gain visibility.

PERSONAL SELLING

Personal selling includes all person-to-person contact with customers with the purpose of introducing the product to the customer, convincing him or her of the product's value, and closing the sale. The role of personal selling varies from organization to organization, depending on the nature and size of the company, the industry, and the products or services it is marketing. Many marketing executives realize that both sales and non-sales employees act as salespeople for their organization in one way or another. One study that perhaps supports this contention found that marketing executives predicted greater emphasis being placed on sales management and personal selling in their organization than on any other promotional mix element. These organizations have launched training sessions that show employees how they act as salespeople for the organization and how they can improve their interpersonal skills with clients, customers, and prospects. Employee reward programs now reward employees for their efforts in this regard.

Personal selling is the most effective way to make a sale because of the interpersonal communication between the salesperson and the prospect. Messages can be tailored to particular situations, immediate feedback can be processed, and message strategies can be changed to accommodate the feedback. However, personal selling is the most expensive way to make a sale, with the average cost per sales call ranging from $235 to $332 and the average number of sales calls needed to close a deal being between three and six personal calls.

Sales and marketing management classifies salespersons into one of three groups: creative selling, order taking, and missionary sales reps. Creative selling jobs require the most skills and preparation. They are the "point person" for the sales function. They prospect for customers, analyze situations, determine how their company can satisfy wants and needs of prospects, and, most importantly, get an order. Order takers take over after the initial order is received. They handle repeat purchases (straight rebuys) and modified rebuys. Missionary sales reps service accounts by introducing new products, promotions, and other programs. Orders are taken by order takers or by distributors.

INTERNET MARKETING

Just as direct marketing has become a prominent player in the promotional mix, so too has the Internet. Virtually unheard of in the 1980s, the 1990s saw this new medium explode onto the scene, being adopted by families, businesses and other organizations more quickly than any other medium in history. Web sites provide a new way of transmitting information, entertainment, and advertising, and have generated a new dimension in marketing: electronic commerce. E-commerce is the term used to describe the act of selling goods and services over the Internet. In other words, the Internet has become more that a communication channel; it is a marketing channel itself with companies such as Amazon.com, CDNow, eBay, and others selling goods via the Internet to individuals around the globe. In less than 10 years advertising expenditures on the Internet will rival those for radio and outdoor. Public relations practitioners realize the value that web sites offer in establishing and maintaining relationships with important publics. For example, company and product information can be posted on the company's site for news reporters researching stories and for current and potential customers seeking information. Political candidates have web sites that provide information about their background and their political experience.

The interactivity of the Internet is perhaps its greatest asset. By communicating with customers, prospects, and others one-on-one, firms can build databases that help them meet specific needs of individuals, thus building a loyal customer base. Because the cost of entry is negligible, the Internet is cluttered with web sites. However, this clutter does not present the same kind of problem that advertising clutter does. Advertising and most other forms of promotion assume a passive audience that will be exposed to marketing communication messages via the mass media or mail regardless of their receptivity. Web sites require audiences who are active in the information-seeking process to purposely visit the site. Therefore, the quality and freshness of content is vital for the success of the web site.

Communication Process:

2Methodology

2.1Methodology

The research had followed exploratory research. Searching on the net and books related to the consumer behavior and communications.

2.1Data Collection

This work is based on both secondary sources. The secondary sources of data include internet articles, some foreign and local websites on . Most of the data required for the study were collected from primary source through exploratory study and brain storming. The data are in the questionnaire is based upon service perception of the students.

Data collection source-

The information and data used in this report have been collected from both primary and secondary sources-

Primary sources-

Personal observation.

Secondary sources-

Books, some research report.

Internet websites

2.5Limitations

During the study of the report we have faced following problems-

1. Time and resources are not enough for such an extensive study.

2. Source of data is very Complex so that we could not work over the theories but explained in our own words.

3. Structure of the study is not clearly defined that is why it seems to be unorganized.

4. Specific problem and exploration needed for the extensive and organized presentation and study.

3 Findings

Most effective Communication for changing consumer behavior and attitudes.

Integrated Marketing Communication (IMC) involves the idea that a firm’s promotional efforts should be coordinated to achieve the best combined effects of the firm’s efforts. Resources are allocated to achieve those outcomes that the firm values the most.

Promotion involves a number of tools we can use to increase demand for our The most well known component of promotion is advertising, but we can also use tools such as the following:

Public relations (the firm’s staff provides information to the media in the hopes of getting coverage). This strategy has benefits (it is often less expensive and media coverage is usually more credible than advertising) but it also entails a risk in that we can’t control what the media will say. Note that this is particularly a useful tool for small and growing businesses—especially those that make a product which is inherently interesting to the audience.

Trade promotion. Here, the firm offers retailers and wholesalers temporary discounts, which may or may not be passed on to the consumer, to stimulate sales.

Sales promotion. Consumers are given either price discounts, coupons, or rebates.

Personal selling. Sales people either make “cold” calls on potential customers and/or respond to inquiries.

In-store displays. Firms often pay a great deal of money to have their goods displayed prominently in the store. More desirable display spaces include: end of an aisle, free-standing displays, and near the check-out counter. Occasionally, a representative may display the product.

Samples

Premiums

PROMOTIONAL OBJECTIVES AND EFFECTIVENESS

Generally, a sequence of events is needed before a consumer will buy a product. This is known as a “hierarchy of effects.” The consumer must first be aware that the product exists. He or she must then be motivated to give some attention to the product and what it may provide. In the next stage, the need is for the consumer to evaluate the merits of the product, hopefully giving the product a try. A good experience may lead to continued use. Note that the consumer must go through the earlier phases before the later ones can be accomplished.

Promotional objectives that are appropriate differ across the Product Life Cycle (PLC). Early in the PLC—during the introduction stage—the most important objective is creating awareness among consumers. For example, many consumers currently do not know the Garmin is making auto navigation devices based on the global position satellite (GPS) system and what this system can do for them. A second step is to induce trial—to get consumers to buy the product for the first time. During the growth stage, important needs are persuading the consumer to buy the product and prefer the brand over competing ones. Here, it is also important to persuade retailers to carry the brand, and thus, a large proportion of promotional resources may need to be devoted to retailer incentives. During the maturity stage, the firm may need to focus on maintaining shelf space, distribution channels, and sales.

Different promotional approaches will be appropriate depending on the stage of the consumer’s decision process that the marketer wishes to influence. Prior to the purchase, the marketer will want to establish a decision to purchase the product and the specific brand. Here, samples might be used to induce trial. During the purchase stage, when the consumer is in the retail store, efforts may be made to ensure that the consumer will choose one’s specific brands. Paying retailers for preferred shelf space as well as point of purchase (POP) displays and coupons may be appropriate. After the purchase, an appropriate objective may be to induce a repurchase or to influence the consumer to choose the same brand again. Thus, the package may contain a coupon for future purchase.

There are two main approaches to promoting products. The “push” strategy is closely related to the “selling concept” and involves “hard” sell and aggressive price promotions to sell at this specific purchase occasion. In contrast, the “pull” strategy emphasizes creating demand for the brand so that consumers will come to the store with the intention of buying the product. Hallmark, for example, has invested a great deal in creating a preference for its greeting cards among consumers.

There are several types of advertising. In terms of product advertising, the “pioneering” ad seeks to create awareness of a product and brand and to instill an appreciation among consumers for its possibilities. The competitive or persuasive ad attempts to convince the consumer either of the performance of the product and/or how it is superior in some way to that of others. Comparative advertisements are a prime example of this. For instance, note the ads that show that some trash bags are more durable than others. Reminder advertising seeks to keep the consumer believing what other ads have already established. For example, Coca Cola ads tend not to provide new information but keep reinforcing what a great drink it is.

DEVELOPING AN ADVERTISING PROGRAM

Developing an advertising program entails several steps:

Identifying the target audience. Market reports can be bought that investigate the media habits of consumers of different products and/or the segments that the firm has chosen to target.

Determining appropriate advertising objectives. As discussed, these objectives might include awareness, trial, repurchase, inducing consumers to switch from another brand, or developing a preference for the brand.

Settling on an advertising budget.

Designing the advertisements. Numerous media are available for the advertiser to choose from. A list of some of the more common ones may be found on PowerPoint slide #11. Each medium tends to have advantages and disadvantages.

It is essential to pretest advertisements to see how effective they actually are in influencing consumers. An ad may have to be redesigned if it is found not be to be as effective as targeted. Note that selecting advertisements is often a “numbers game” where a lot of advertisements are created and the ones that “test” best are selected.

ADVERTISING STRATEGIES

Depending of the promotional objectives sought by a particular firm, different advertising strategies and approaches may be taken. The following are some content strategies commonly used.

Information dissemination/persuasion. Comparative ads attempt to get consumers to believe that the sponsoring product is better. Although these are frequently disliked by Americans, they tend to be among the most effective ads in the U.S. Comparative advertising is illegal in some countries and is considered very inappropriate culturally in some societies, especially in Asia.

Fear appeals try to motivate consumers by telling them the consequences of not using a product. Mouthwash ads, for example, talk about the how gingivitis and tooth loss can result from poor oral hygiene. It is important, however, that a specific way to avoid the feared stimulus be suggested directly in the ad. Thus, simply by using the mouthwash advertised, these terrible things can be avoided.

Attitude change through the addition of a belief. This topic was covered under consumer behavior. As a reminder, it is usually easier to get the consumer to accept a new belief which is not inconsistent with what he or she already believes than it is to change currently held beliefs.

Classical conditioning. A more favorable brand image can often be created among the consumer when an association to a liked object or idea is created. For example, an automobile can be paired with a beautiful woman or a product can be shown in a very upscale setting.

Humor appeal. The use of humor in advertisements is quite common. This method tends not to be particularly useful in persuading the consumer. However, more and more advertisers find themselves using humor in order to compete for the consumer’s attention. Often, the humor actually draws attention away from the product—people will remember what was funny in the ad but not the product that was advertised. Thus, for ads to be effective, the product advertised should be an integral part of what is funny.

Repetition. Whatever specific objective is sought, repetition is critical. This is especially the case when the objective is to communicate specific information to the customer. Advertising messages—even simple ones—are often understood by consumers who have little motive to give much attention to advertisements to which they are exposed. Therefore, very little processing of messages is likely to be done at any one time of exposure. Cumulatively, however, a greater effect may result.

Celebrity endorsements. Celebrities are likely to increase the amount of attention given to an advertisement. However, these celebrities may not be consistently persuasive. The Elaboration Likelihood Model discussed below identifies conditions when celebrity endorsements are more likely to be effective.

ADVERTISING AND Consumers’ ATTITUDE Changing:

A significant objective of advertising is attitude change. A consumer’s attitude toward a product refers to his or her beliefs about, feeling toward, and purchase intentions for the product. Beliefs can be both positive (e.g., for McDonald’s food: tastes good, is convenient) and negative (is high in fat). In general, it is usually very difficult to change deeply held beliefs. Thus, in most cases, the advertiser may better off trying to add a belief (e.g., beef is convenient) rather than trying to change one (beef is really not very fatty).

Consumer receptivity to messages aimed at altering their beliefs will tend to vary a great deal depending on the nature of the product. For unimportant products such as soft drinks, research suggests that consumers are often persuaded by having a large number of arguments with little merit presented (e.g., the soda comes in a neat bottle, the bottle contains five percent more soda than competing ones). In contrast, for high involvement, more important products, consumers tend to scrutinize arguments more closely, and will tend to be persuaded more by high quality arguments.

Celebrity endorsements are believed to follow a similar pattern of effectiveness. The Elaboration Likelihood Model (ELM) suggests that or trivial products, a popular endorser is likely to be at least somewhat effective regardless of his or her qualifications to endorse (e.g., Bill Cosby endorses Coca Cola and Jell-O without having particular credentials to do so). On the other hand, for more important products, consumers will often scrutinize the endorser’s credentials.

Figure: How communication changes attitude

For example, a basket ball player may be perceived as knowledgeable about athletic shoes, but not particularly so about life insurance. In practice, many celebrities do not appear to have a strong connection to the products they endorse. Tiger Woods might be quite knowledgeable about golf carts, it is not clear why he has any particular qualifications to endorse Cadillac automobiles.

ADVERTISING EFFECTIVENESS AND EVALUATION

The effectiveness of advertising is a highly controversial topic. Research suggests that in many cases advertising leads to a relatively modest increase in sales. One study suggests, for example, that when a firm increases its advertising spending by 1%, sales go up by 0.05%. (The same research found that, in contrast, if prices are lowered by 1%, sales tend to increase by 2%). In general, it appears that advertising is more effective in selling durable goods (e.g., stereo systems, cars, refrigerators, and furniture) than for non-durable goods (e.g., restaurant meals, candy bars, toilet paper, and bottled water). Also, advertising appears to be more effective for new products. This suggests that advertising is probably most effective for providing information (rather than persuading people). Note that many advertising agencies make a large part of their money on commissions on advertising sold. Thus, they have a vested interest in selling as much advertising as possible, and may strongly advise clients to spend excessive amounts on advertising.

Research suggests that advertising effectiveness follows a sort of “S“ shaped curve:

Very small amounts of advertising are too small to truly register with consumers. At the medium level, advertising may be effective. However, above a certain level (labeled “saturation point” on the chart), additional adverting appears to have a limited effect. (This is comparable to the notion of “diminishing returns to scale” encountered in economics).

There are several potential ways to measure advertising effectiveness. Two main categories include:

“Field” based studies. These studies look at what happens with real consumers in real life. Thus, for example, we can examine what happens to sales of a company’s products when the firm increases advertising. Unfortunately, this is often a misleading way to measure advertising impact because we live in a “messy” world where other factors influence sales as well. For example, a soft drink firm could conclude that there is very little correlation between advertising and sales because another, much more powerful factor is at work: temperature. That is, the firm may find that although a great deal of advertising is done in the winter, sales are greater in summer months because people drink more soft drinks in hot weather. Note that the choice of brand of soft drink purchased in the summer may very well be influenced by advertising heard at other times.

Laboratory studies. To get around the confounds imposed by nature, advertising researchers often use artificial situations to evaluate advertising. This sacrifices the use of real consumers in real settings, but allows the marketer to control sources of influence. An advertising firm may hire people to come in and participate in research. The consumers may come in and be asked to view some television and respond to a questionnaire about the programming later. Half of the subjects can then see a version which includes an ad to be tested (the other half is known as the “control” group, which will serve as a basis for comparison). We can now compare the two groups on factors such as attitude toward the brand, purchase intention, and preference.

PUBLIC RELATIONS

Consumers will often perceive what they perceive to be “independent” media news stories as more credible than paid advertising. Therefore, getting favorable media coverage can be quite valuable. One downside, of course, is that the marketer does not get to control what the media will say. This type of coverage is not necessarily less expensive than traditional advertising, either, since a lot of labor is often needed to generate media interest.

News releases should generally be brief. Ordinarily, these should not exceed two double spaced pages in length although additional information can be made available. The media will generally react negatively to “advertising” or sensational language such as “revolutionary” or “breakthrough.” There is generally a preference for precise, factual information although a human interest story may also be of interest. It is important to quote actual people—whether customers, neutral experts, or employees of the firm. This may mean “drafting” a quote and asking the appropriate person for permission to quote him or her saying this.

Consumer Behavior and Communication

Models and Examples

Consumer Behavior

Consumer behavior

The set of actions that make up an individual's consideration, purchase and use of products and services. Includes the purchase as well as consumption of the products and services.

The seller must be able to determine

What is motivating the customer to buy. This enables you to convert features into benefits for that particular individual

In which step of the purchase decision process is the buyer.

THE PURCHASE DECISION PROCESS

Problem Recognition

· May occur when the consumer receives information from advertising or from conversation with friends that causes awareness of a need.

· In consultative selling sometimes hinges on the seller's ability to uncover a need.

· May occur when the consumer reevaluates the current situation and perceives an area of void or dissatisfaction.

· No matter what kind of need exists some prospects do not consciously recognize it until the seller brings it out into the open.

Search for Alternatives - Limited By

· Time and cost.

· Experience and urgency.

· Value of purchase.

· risk involved in the purchase

Evaluation of Alternatives

· Evoked Set is the list of alternatives

· Salient attributes are used to evaluate products.

· Determinate attributes are motives used to make a decision.

Purchase Decision

· Several alternatives may seem equally acceptable;

· Can be made easier by a professional seller

· Involves a set of related decisions.

· Decision criteria

· Tangible features of the product.

· Financial considerations such as price, discounts, credit policies, etc.

· Intangible factors: reputation, past performance of the seller, possible delivery dates, etc.

Postpurchase Evaluation

Cognitive Dissonance

"Buyers Remorse"

post-purchase anxiety Depends upon the importance of the decision and the attractiveness of rejected alternatives.

anxiety Minimize

· by selling products that meet needs,

· by reinforcing the buyer's belief that the right decision was made

· by demonstrating the capabilities and quality of the product,

· By post purchase follow-up to be sure that deliveries are prompt, quantities are correct, and the product is functioning as expected.

THE COMMUNICATION AGENDA

to be sure that the prospect understands the message, accepts it, and makes a commitment to take action.

Source

Encoding

the Message Encoding and decoding of messages are often achieved through the use of symbols.

Evaluating the Prospect's Decoding The Message Itself bBarriers to Effective Communication

· Words

· Distractions

· Timing

· Interruptions

· Technical Erudition

· Poor Listening Habits

Make Use of Feedback - your message has been transmitted successfully when the prospect's understanding of the message is the same as yours.

SELLING WITHOUT WORDS (NONVERBAL COMMUNICATION)

· Visual communication the expresses majority of a person's feelings and emotions

· Kinesics

· Body language includes facial expressions, shifts in posture and stance, as well as the movement of body limbs.

· Understand the Body Language of Gestures

· Body Signals

· Hand Movements

· Your mannerisms should be calm and unhurried.

· Facial expressions convey a larger percentage of the nonverbal message than body movement does.

· If you can read a prospect's body language and control your own body signals then you are more likely to be understood.

· Warning signals that the prospect is either not understanding or not accepting the message.

· Rubbing the nose.

· Leaning back in the chair with hands behind the head.

· Resting the head in the hands with elbows on the desk.

· Finger under collar or rubbing back of neck.

· The Non Verbal Dictionary

· Analyzing the walk

· Biomotion Lab

·

The Effect of Communication on Consumer Behaviour

Marketing firms and departments use communication to target specific groups of consumers and influence them into buying a particular product. Sometimes, these firms and departments are unnecessary as word of mouth from consumers creates a buzz and others will purchase goods or use services based on the recommendation of peers. Beyond word of mouth, companies will use advertisements and sales people to communicate to target markets and attempt to influence them into purchasing products.

Word of mouth

Word of mouth buzz for a particular product or service is typically organic and does not come from a company or business. This happens when a certain demographic latches onto a brand or product and, in turn, tells their friends and/or family about it. In his book "The Tipping Point," Malcolm Gladwell talks about how Airwalk shoes become popular with the skating crowd in the 1990's. The trend started with skateboarders telling other skateboarders about the shoes. The buzz became loud and the company realized they were onto something with their product. As a result, they were able to capitalize on the word of mouth communication with their own advertising.

Advertising

“Advertisers don't want you to change the channel!”

Advertising is a necessary form of communication for companies looking to promote their product or service to the consumer. As stated in the Atlantic, advertising has been around for ages. There are even examples found in tombs and on walls with ancient symbols used to promote a merchant's wares. This timeless sales technique will often rely upon needing to capture the attention of consumers.

Once advertisers capture a targeted consumer's attention, they will often employ psychology in an attempt to coerce the individual to purchase a particular product. One such way of doing this is to make people want to fit in by showing the product or service as being popular with various peer groups. Another technique used frequently in advertisements is branding. Branding is useful to advertisers in the fact that it creates and plays upon consumer loyalty.

E-mail

One effective way to keep consumers updated with regard to new products or services is to create a mailing list and send out periodic e-mails. This technique can be especially useful for promotions, sales or coupons. By including deadlines, companies can attempt to drive up sales by creating a sense of urgency. A disadvantage to e-mail campaigns, though, is that too much communication can annoy consumers and potentially turn them off to the company.

Contracts

Written communication is used by companies in the form of contracts. Contracts can be necessary, as they spell out the terms of a particular purchase and establish penalties for breaking them. In spite of the necessity, contracts can have the effect of making customers skeptical or choose not to purchase a particular product. While this is not the desired effect of a company, consumers can be taken aback by confusing language or small print. As reported by CNET News, the prepaid cell phone market is growing, as consumers are becoming intimidated by contract phone plans.

Infomercials

In the Discovery Channel's article on infomercials, the process of how this form of communication causes consumers to impulsively purchase goods is explained. The basic process is that a company will pay to have an infomercial on television. This paid advertisement will begin by illustrating a common "problem" in modern life. Then the "solution," which is the product being sold, will be presented to the audience. For those at home, there is usually an urging to "call now." The effect of this communication is consumers purchasing items they might not usually buy.

Consumer Behavior Influences

Since its inception, Internet marketing has sought to steer consumer behavior influences in much the same way as conventional advertising does. And it was widely thought to be a very simple business model.

Essentially, what online marketing aims to do is influence consumer behavior by reaching out to people and convey how their products or services are beneficial or desirable. And that's all there was to it.

But the online marketing community has since realized that there is indeed more to it than that. A new thinking has emerged for what it means to market to the web-savvy consumer, and it comes down to two things -- influence and trust.

The two qualities are often mutually reinforcing. The best online marketers are the ones who have a highly-respected reputation when it comes guiding consumer behavior influences, and are thus trusted by existing and potential business contacts alike. But for those online marketers who have almost no influence, who's going to take their word for it when the try to sell you something? That's not to say they can't be successful in building an online client base, but they are nowhere near in the same league as those who have influence.

For those who are looking to enter the 'League of Extraordinary Marketers', as it were, the task is to build a reputation as an authority figure in your product or service, so you can eventually be a leader -- and not a follower -- of consumer behavior influences. This can be achieved by growing your online client base. The million-dollar question then, becomes HOW to do this? The major influencers out there have one thing in common: they were able to utilize the social media sphere in a way like few others have, and get their loose network of business associates and friends to do their marketing them.

Most rookie social media marketers learn to first build their network, and then add anyone who could be a potential client. But this will hardly give you a hand in consumer behavior influences. It won't hurt, mind you, but this alone will only serve to seal your status as just another face in the online marketing crowd.

It takes persistence with your networks on and offline, countless late nights, and endless self-educating an re-educating, but the ultimate goal for those who want to be leaders of consumer behavior influences is to become a figure who influences the influencers.

ADVERTISING AND CONSUMER BEHAVIOUR

Introduction

The role of advertising in determining consumer behaviour has been under the microscope for several years. However, some of the arguments, assumptions and policy options proposed – for example in relation recently to food advertising - are not based on an in-depth understanding of the way advertising works with consumers and its influence on markets. The misconceptions seem to be based on an entirely understandable intuitive reaction: how can advertisers claim that advertising does not increase consumption and sales and still spend so much money on it?

Towards a theoretical explanation

In the academic literature on the effects of advertising on consumer behaviour there are broadly two schools:

1) Advertising as a strongly persuasive force (Barry 1987, Shankar 1999)

This is the intuitive view, ingrained in the collective mind, despite being criticised for the last three decades by other eminent academics (Ehrenberg, 1997, Ambler 2000).

Proponents of this view are invariably critical of advertising. They contend that accurate knowledge about consumers – how they buy, why they buy and where they buy – is unnecessary as it is possible to manipulate hapless buyers into parting with their money in return for products that they do not want.

These types of models have survived despite various empirical studies showing that the view of advertising as a strongly persuasive force is largely unfounded.1 These latter scholars propose an alternative view of advertising, suggesting a much weaker and less predictable and uneven impact on consumers.

1 Tellis & Weiss, 1995; Ambler, 2000; Helgesen, 1996 ISBA - The Voice of British Advertisers www.isba.org.uk Advertising and consumer behaviour ISBA Briefing Paper

2) Advertising as a tool of competition

For almost thirty years, a considerable number of academics have asserted that the ‘strong force’ theory does not apply in all market sectors. These scholars suggest that when it comes to marketing of frequently purchased goods (such as food) in mature markets volumes of advertising merely reflect an attempt to maintain a market share in highly competitive but fragmented markets, the total volume of advertising does not affect total market size.

The simple, yet highly complex reality is that advertising works in different ways and to different effects depending on many intrinsic and extrinsic variables.

Why do advertisers advertise?

Primarily to develop consumer value in their brands. The overwhelming majority of ads are for brands, with the obvious exceptions of political, public service and charity advertising. Brands deliver choice, innovation, confidence and consumer value. The value of most businesses does not reflect their tangible assets, but their brand assets and therefore leads to business success being very largely driven by the ability of a company’s brands delivering a higher level of consumer satisfaction than competing brands.

Advertising is principally a tool of brand competition and it is brand competition that puts consumers in charge and renders businesses entirely vulnerable to the consumer - in effect a continuous, real time election.

The role of advertising

Advertising fulfils a number of tasks usually in the context of brands.

Advertising:

· awareness creates

· communicates attributes and benefits (rational and emotional)

· reminds and refreshes to ensure top of mind awareness and that a brand is in consumers consideration set

· repeat purchase therefore generates

· and over time contributes to loyalty and the franchise of a brand

… it does not persuade consumers against their will to do things they do not wish to do, or to purchase things they do not wish to purchase.

4 Conclusions

Summary and Conclusions

Marketers primary objective is to reach prospective consumers and influence their attitude, awareness, and buying behavior. They spend a lot of money to keep markets interested in their prospects and products. To succeed, they need to communicate them more effectively than competitors do.

Consumers rely on the information from marketing communication to make wise purchase decisions. Businesses, ranging from multinational corporations to small retailers, depend on marketing communication to sell their goods and services. Marketing communication has also become an important player in the life of a business. Marketing communication helps move products, services, and ideas from manufacturers to end users and builds and maintains relationships with customers, prospects, and other important stakeholders in the company. Advertising and sales promotion will continue to play important roles in marketing communication mix. However, marketing strategies that stress relationship building in addition to producing sales will force marketers to consider all the elements in the marketing communication mix. In the future new information gathering techniques will help marketers target more precisely customers and prospects using direct marketing strategies. New media technologies will provide businesses and consumers new ways to establish and reinforce relationships that are important for the success of the firm and important for consumers as they make purchase decisions. The Internet will become a major force in how organizations communicate with a variety of constituents, customers, clients, and other interested parties.

References

1Contemporary advertising , by William A AReans. McGraw-Hill.

2Consumer Behavior, Leon G Schifman., 9th edition, Prentice Hall.

3http://www.krepublishers.com/02-Journals/JSS/JSS-10-0-000-000-2005-Web/JSS-10-1-001-076-2005-Abst-PDF/JSS-10-1-009-016-2005-164-Ayanwale-A-B/JSS-10-1-009-016-2005-164-Ayanwale-A-B.pdf

4.http://www.businessdictionary.com/definition.html

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