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CHAPTER II

THEORITICAL FRAMEWORK

In this chapter we will describe the theories that related with our thesis and

uses as a guidance in our analysis along this thesis. The theories are related with the

taget marketing process of a product until the communications process.

1.1. The Target Marketing Process

Companies often develop different marketing strategies to satisfy different

consumer needs. The process by which marketer do is referred to as target marketing

and involves four basic steps: identifying markets with unfulfilled needs, segmenting

the market, targeting specific segments, and positioning one’s product or service

through marketing strategies.

Figure 2.1: The target marketing process (Belch & Belch, 2008)

When we applied the target marketing strategy, we have to identify the

specific needs of group of people, select one or more of these segments as a target,

and then develop various marketing programs directed to each (Belch & Belch,

Advertising and Promotion, 2008). Target market identification isolates consumers

Identifying markets

Determining market

segmentation

Selecting a market to target

Positioning through marketing

strategies

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with similar lifestyles, needs, the likeness, and increase our knowledge of their

specific requirements. The more we can establish this common ground with

consumers, the more effective they will be in addressing these requirements in their

communications (Belch & Belch, Advertising and Promotion, 2008).

After identifying the market, it is not possible for us to develop any specific

marketing strategy for each consumer. But we attempts to identify board classes of

buyers who have the same needs and will respond similarly to marketing actions. As

cited at Berkowitz in Belch & Belch at Advertising and Promotion, market

segmentation is dividing up a market into distinct groups that have common needs

and will respond similarly to marketing actions. The more market segmented, the

more precise is their understanding of it, but in contrary, the fewer consumers there

are in each segment.

The output of the segmentation will reveal the market opportunities available,

and then we should decide our targeted market. Targeting market process involves

two steps; determining how many segments to enter and which segments offer the

most potential (Belch & Belch, Advertising and Promotion, 2008).

Positioning has been defined as the image that comes to mind and the

attributes consumers perceive as related to the product or service. Brand positioning

is the act of designing the company’s offer and image so that it occupies a distinct

and value place in the target customer’s mind (Keller, 2008). Good brand positioning

helps to guide marketing strategy by clarifying what a brand is all about, how it is

unique and how it is similar to competitive brands, and why consumer should

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purchase and use it. When the brands are established, competitive force often dictate

shifts in positioning strategy overtime (Keller, 2008).

1.2. The Communication Process

Communications efforts should be viewed from the perspective of managing

customer relationships over time (Kotler, 2007). The communication process begins

with an audit of all potential contacts a customer might have with the brand. Effective

communication requires knowledge of how communication works.

Figure 2.2: The basic communication.(McGraw-Hill, 2006).

Note:

1. Source is an organization or individual sending the message.

2. Encoding is the process of translating an idea into a form of communication.

3. Message is the communication in physical form.

4. Media is communication vehicle used to reach members of a target audience.

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5. Decoding is process whereby a receiver assigns meaning to a message.

6. Receiver is an individual or organization that intercepts and interprets the message.

7. Response in behavioral learning is the action taken by a consumer to satisfy a drive. In the

feedback loop, is the impact the message had on the receiver’s knowledge, attitudes, or behaviors.

8. Feedback is receiver’s reactions to the message

9. Noise anything that interferes with effective communication.

Based on Kotler & Amstrong, 2005, to developing an effective

communication, there are some aspects that should be considered:

a. Identifying the Target Audience, Affects decisions related to what, how, when,

and where message will be said, as well as who will say it

b. Determining Communication Objectives

c. Designing a Message, Kotler (2003) suggest that formulating the message will

require to consider four aspects:

Figure 2.3. Designing The Message Stages. (Philip Kottler, 2003)

Message Content: Rational Appeals, Emotional Appeals and Moral Appeals

Message Structure: Draw Conclusions, Argument Type and Argument Order

Message Format: Layout, Words, Sounds and Body Language

Message Sources: Expertise, trustworthiness, and likeability

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• Message Content

The contents of a message are divided into three types, such as rational

Appeals, emotional Appeals and moral Appeals. Rational Appeals means that

the content of messages delivered in relation to interest the target audience's.

Emotional appeal means that the content of messages delivered in relation to

the emotional mix of target audiences. Moral Appeals means is the message

delivered in relation to the value of the target audience.

• Message Structure

Effectiveness of a message depends on its structure and content. The message

that will be delivered to the target audience has three options for the structure

of the message, as follows:

- Provide the conclusion at the end of the message being delivered, or to

provide the opportunity for the target audience to make their own

conclusions.

- Putting in a strong message at the beginning or the end of the message.

- Shows only the excess product or shows lack of product.

• Message Format

Message format need to be created in such a way that it sends a strong

message to the audience. Format a message related to the creation and use of

headline, copy, illustrations, and color. Marketers must be able to combine

both elements - elements that can be used in a good format for a message that

can attract the target audience and increase the effectiveness of a message.

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• Message sources

Delivering messages through popular and attractive sources often got higher

attention and recall. This is why the advertisers often use celebrities as

spokesperson. Expertise, trustworthiness, and likeability are other three

important sources. Expertise is the specialized knowledge the communicator

possesses to back his claim. Trustworthiness is related to how objective and

honest the source is perceived to be. Likeability describes the source’s

attractiveness. The most highly credible source would be a person who scores

high on all three dimensions.

d. Choosing Media

Marketers can choose from two types of communication channels of

communication that is personal and non-personal communication. In selecting the

media for advertising, attempt to market Identify your audience and then decide

the best way to attract their attention.

• Radio

Radio advertising is more effective when it is used frequently, but be sure you

identify what the prime listening time is for your clients. The individual

stations will provide rate cards with audience profiles and discuss what can be

bought with your budget.

• Television

This is very expensive and most small businesses cannot afford this type of

advertising. If you decide it is for you, choose the channel and timing most

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appropriate for you. Most channels have facilities to make your ad and can

advise of the appropriate time to place your ad. The businesses it serves best

are those with products and services with a wide appeal, not specialised

businesses

• Newspapers

There are three main categories: daily, weekly and local or community papers.

The daily papers generally have a much wider circulation and higher

advertising costs. When placing ads in newspapers, be certain that your ad is

placed in the appropriate section of the paper. Make sure you prepare a budget

and target your audience before deciding in which paper(s) to run your ad.

• Magazines

There is a wide variety of these and before advertising you must assess which

will best suit your target market. Magazines best serve businesses whose

target markets are well defined, such as restaurants, entertainment and

specialty shops.

• Internet

The Internet has opened up a whole new world of options for both business

and consumers and is especially powerful as a medium for advertising and

promoting services and branded products. A well-structured website may

reach a great number of potential clients.

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• Others

Placing an ad in the Yellow Pages telephone directory is a very good method

of advertising for services. Another important method is to display an

outstanding sign at your place of business which will attract local traffic.

Check with your local Council regarding approvals before erecting any

external signage.

e. Find the right message

Source message is that the source is made in the delivery of messages.

Error message in the source selection will impact on the results of the marketing

communication.

f. Collecting feedback response from the target audience

Final stage of marketers should be done is to reverse the response from the

target audience on the activities of communication which have been made. The

response back is very important because if the response to the request of a

consumer marketing communication negative then marketers can quickly change

the program communication strategy products.

1.3. Integrated Marketing Communications

With a wide range of communications channels available to social marketers

it is crucial that these deliver consistent messages. Belch and Belch (2007) describe

the move towards integrated marketing communications (IMC) as one of the most

significant marketing developments. Adopt the American Association of Advertising

Agencies definition of IMC in Belch and Belch, 2007:

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“… a concept of marketing communications planning that recognizes the

added value of a comprehensive plan that evaluates the strategic roles of a variety of

communication disciplines – for example, general advertising, direct response, sales

promotion and public relations – and combines these disciplines to provide clarity,

consistency and maximum communications impact.”

IMC lays in our overall marketing effort which we call it “4 Ps” as product,

price, place, and promotion. Integrated marketing communications is a way of

looking at the whole marketing process from the viewpoint of the customer and

involves the coordination of all promotional activities1

. Bellow is the tools for IMC:

Figure 2.4. Belch and Belch, An Integrated Marketing Communication, 2007

1 Vargas http://www.fairfaxcountyeda.org

IMC Communication Tools

Personal Selling

Interactive/ Internet Marketing

Publicity/ Public Relation

Direct Marketing Advertising

Sales Promotion

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• Advertising

Based on Belch and Belch in Integrated Marketing Communications,

advertising is any paid form of non-personal communication about an

organization, product, service, idea or cause by an identified sponsor. Advertising

is almost always a cooperative relationship between words and images to create a

synergistic campaign. Based on Landa, 2009, there are three main elements in

advertising;

1. line (the main verbal message),

2. visual (the main visual message or image),

3. and body copy (the text of the ad or supports main message)

Those three elements should communicate and express the advertising

message. Advertising is dividing into some categories as bellow:

• Conventional Advertising

Conventional advertising is the basic way of advertising through the print

media such as magazines, newspaper, billboard, standing banner, and

electronic media like television and radio.

• Unconventional Advertising

Guerilla advertising (also called unconventional advertising) is an advertising

that “ambushes” the viewer (Landa, 2009). It appears in unpaid media in the

public environment – places and surface, where the conventional advertising

doesn’t belong. It is used to grab the public attentions in unexpected places

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and ways. The benefits of using this advertising are to enhance the efficacy of

traditional advertising campaign, earn press coverage, cost effective,

efficiently to the targeted audiences, and be interactive (Landa, 2009).

• Online or Viral

Online guerilla or viral marketing is online advertising that people pass on to

share with friends and colleagues, either because they think it is entertaining

or because they are offered an incentive (Landa, 2009).

• Ambient

Ambient media advertising is placed near or at the point of purchase (POP),

thereby targeting consumers at the time when they are most likely to buy or

contribute (Landa, 2009).

• Sales Promotion

Marketing activities that provide extra value or incentives to the sales force,

distributors, or ultimate consumers and can stimulate immediate sales (Belch

& Belch, 2007). Using the variety of formats like premiums, coupons,

contests, to attract attention, and stimulates quick response (Kotler, 2007).

Even though offering strong purchase incentives, dramatizes offers, boosts

sagging sales, but the cycles of sales promotions are in short lived and seems

un-effective at building long-term brand preferences (Kotler, 2007).

• Direct Marketing

A system of marketing by which organizations communicates directly with

target customers to generate a response and/or a transaction (Belch & Belch,

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2007). Direct marketing can be done in any forms like telephone marketing,

direct mail, online marketing, etc. This kind of promotion is well-suited to

highly targeted marketing efforts (Kotler, 2007).

• Public Relations

Non-personal communication regarding an organization, product, service, or

idea not directly paid for or run under identified sponsorship (Belch & Belch,

2007). Public relations were build in many forms like news stories, news

features, events and sponsorships, by dramatizes company or benefits. It is

highly credible because it can reaches many prospects missed via other forms

of promotion, but it often the most underused element in the promotional mix

(Kotler, 2007).

• Personal Selling

Direct person-to-person communication whereby a seller attempts to assists

and or persuades perspective buyers to purchase a product or service

(Belch&Belch, 2007). As the most expensive of the promotional tools, the

advantages of using sales promotion are stated below (Kotler, 2007);

- the most effective tool for building buyers’ preferences, convictions, and

actions

- Personal interaction allows for feedback and adjustments

- Relationship oriented

- Buyers are more attentive

- Sales force represents a long-term commitment

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• Interactive / Internet Marketing

A form of marketing communication through interactive media which allow

for a two-way flow of information whereby users can participate in and

modify the content of the information they receive in real time (Belch &

Belch, 2007). Even the uses of internet is not yet a mass medium as many

consumers lack access and the attention to an internet ads is very low due to

the great deal of clutter, internet marketing also bring some benefits to the

company (Kotler, 2007);

- Messages can be tailored to specific interests and needs of customers.

- Interactive nature of the Internet leads to higher level of involvement.

- Can provide large amounts of information to customers.

1.4. Integrated Marketing Communication Process

The integration marketing communication process activities summarized

simply by Chriss Fill (1995), in his book, namely Marketing Communication. Model

can be seen in the picture below.

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Figure 2.5. Model Integration Process Activities Marketing Communication

On the model of Figure 2.5, the process to integrate the marketing

communication activities carried out by integrating elements of - elements of the

marketing communication advertising, direct response, sales promotion, public

relations, and personal selling to communicate a message to the target audience. So,

that each element in marketing communications cannot be used separately, but must

be combined to be able to sustain one another.

Effectiveness of the process integration marketing communication activities

able to be maximized by considering the goals and objectives of marketing

Promotional Objectives

Key Factor Analysis

Direct Response

Sales Promotion Advertising TARGET

AUDIENCE

Personal Selling Research & Evaluation

Public Relation

Positioning

Communications Budgets

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communications, brand positioning and product brand or company, the budget of the

company, research and evaluation, and factors - factors that influence the

effectiveness of marketing communications activities. It - it must be considered in the

mature integrate elements of marketing communications.

Petrison and Wang (1996), says some obstructions in the process of

integration of elements of marketing communications, as follows:

• Availability of database marketing that enables marketers to design a

communication to the specific type of consumer.

• The development concept of niche marketing and micro marketing, where the

concept is to apply a different message, and separately for each segment of

consumers.

• Specific method used by the practitioners advertising on the whim of each means

of communication affect marketing message is delivered.

• There is a diversification effort in the department or company.

• There are cultural differences in national and international so that a message

cannot be digested well to different cultures.

• Effective Internet marketing requires a comprehensive strategy that synergizes a

given company's business model and sales goals with the function and display a

web site, with a focus on the target market through proper choice of advertising

type, media, and design.

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1.5. AIDA Framework

In Belch & Belch, the most important aspect of developing an effective

integrated marketing communication involves understanding the response process the

receiver may go through in moving towards a behavior (purchase the product) and

how the promotional efforts influence consumer responses. Understanding of

different communication stages and objectives is a very important step for

communicating professionals in order to be able designing an effective

communication program. Lack of knowledge of this hierarchy model of

communication can cause communication group to repeat the same programs to

achieve the same objectives at the same stage such as cognitive stage. Therefore,

these response-hierarchy models can be used as a tool to diagnose communication

program effectiveness of an organization.

The AIDA was developed to represent the stages a consumer may pass

through in moving from a state of not being aware of a product to the actual purchase

behavior. AIDA stand for Awareness, Interest, Desire, and Action, one of theories of

advertising’s role to create awareness of a brand or product, which over time

generates interest in trying it, in-which eventually transformed into desire, which

builds and builds until, finally, the consumers’ moved to action (Sanchez, Customer

Relationship Marketing).

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Figure 2.6. AIDA Framework. Keller, 2008

The AIDA model is fairly simple, before customers make a purchase decision,

they need to be aware that the products are exist, what it is, what it does, and perhaps

also where and when it is available. The first thing to do is getting their attention to

be stimulated to take some interest towards the product. What special features does

the product have? What benefits does it offer to consumers? How might it satisfy any

one of a variety of needs and wants that the consumer might have? During this stage

the consumer develops a reaction to the product, usually either favorable or

unfavorable. If the response is favorable and the advertisement is successful in

awakening interest, it then attempts to create in the consumer's mind a desire to

purchase. It does this by successfully connecting the benefits of the product with the

consumer's needs and wants.

The most difficult aspect of advertising design is one thing to portray a

product in an attractive manner that stimulates interest in consumers, it is quite

another to persuade them that they actually need it. Advertising has to both show

consumers that there is a product available which will satisfy their needs, and show

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them that they can satisfy that need by purchasing the product in question. This leads

to the final stage, action, where consumers actually get up, go out, actively seek the

product and buy it2

1.6. SWOT Analysis

.

The SWOT analysis (Strengths, Weakness, Opportunities, and Threats) flows

from a situation analysis that examines the company’s internal strengths and

weakness with respect to the environment and the competition, and look at external

opportunities and threats (Strauss & Frost, 2009).

Figure 2.7. Framework. Carlos A. Benito

• Strengths,

Positive tangible and intangible attributes, internal to an organization. They are

within the organization’s control.

2 www.ftmastering.com

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• Weakness,

Factors that are within an organization’s control that detracts from its ability to

attain the core goal. Which areas might the organization improve.

• Opportunities,

An external attractive factors that represent the reason for organization to exist

and develop. What opportunities exist in the environment, which will propel the

organization?

• Threats

External factors, beyond an organization’s control, which could place the

organization mission or operation at risk. The organization may benefit by having

contingency plans to address them if they should occur.