INTEGRATED MARKETING COMMUNICATION STRATEGY
ARIZONA STATE UNIVERSITY
MKT 402 - CONSUMER BEHAVIOR
WEEK 3
A.
Communication Objectives Marketing
Marketing communication is defined as the process of disseminating information
about the company and what it wants to offer (offering) to the target market. (Sulaksana,
2003, p. 23). Meanwhile, according to De Lozier (1994), in the book Marketing
Communication Synergy: Integration of Advertising, Public Relations and Promotion,
marketing communication is the process of delivering and combining stimuli to target
markets that aim to generate response and interest in products and build channels to receive,
interpret and take action on messages from the market with the intention of adjusting the
company's current ideas and identifying new opportunities in communication. Marketing
communication is an important aspect of the overall marketing mission as well as a
determinant of successful marketing. In the last decade or so, the marketing communications
component of the marketing mix has become essential. It has even been claimed that
"marketing in the 1990s is communication and communication is marketing. The two are
inseparable".
Marketing communication plays a very important role for marketers. Without
communication, consumers and society as a whole will not know the existence of products
in the market. Marketing communication also requires a very large budget, therefore
marketers must be careful and calculating in developing a marketing communication plan.
Determining who is the target of communication determines the success of communication.
With the right targeting, the communication process will run effectively and efficiently.
(Sutisna, 2001, p. 268).
The goal of marketing communications can be no different from the goal of
marketing, namely, to maximize the value delivered to customers. This can be improved by
increasing the total value of the customer or lowering the customer's costs. Offers to
customers that involve delivering more value or lowering costs. This cannot be successful
only with the efforts of the marketing department but must involve all departments of the
company.
B.
Communication Mix Marketing
Marketing communication is an effort to convey messages to the public, especially
target consumers, about the existence of a product in the market. The concept that is
generally often used to convey messages is what is referred to as a promotional mix.
According to Kotler (2005: 249) the communication mix The marketing communications
mix is an amalgamation of five marketing communications models, namely: advertising,
sales promotion, public relations and publicity, personal selling, direct and interactive
marketing. The following are the elements of the marketing communication mix:
1. Advertisement
Advertising is a sponsor-funded presentation of non-personal information about a
product, brand, company or outlet. Advertising aims to influence consumers' image, beliefs
and attitudes towards products and brands, as well as consumer behavior. Advertisements
are usually delivered through television, radio, print media, billboards, signboards or other
media such as hot air balloons, T-shirts, internet and others.
2. Sales Promotion
Sales promotion is a direct inducement to consumers to buy a product. Promotions can
be done through discount programs or offering added value (premiums) if consumers want
to buy products. The key aspect of promotion is to move the product at this time with the
aim of changing short-term buying behavior.
3. Personal Selling
Personal selling involves direct interactions between the salesperson and the
prospective buyer. Through two-way communication, the consumer's situational
involvement tends to increase considerably and the salesperson can customize the sales
presentation to effectively influence the consumer.
4. PR or Publicity
Public relations is becoming an increasingly important element of the marketing
communications mix as a business or organization grows larger. Publicity encompasses
many forms of communication including press and media releases, lobbying, charity and
public events, advertorials, financial reports, promotional collateral, facility tours,
sponsorships, interviews and other methods to enhance the image of a company, product or
brand.
5. Direct Marketing
Direct marketing is a direct relationship with precisely targeted customers with the
aim of getting a response as soon as possible to create a good relationship with a lasting
customer. Direct Marketing is a marketing communication method that allows companies to
interact with a large number of customers and encourage a "call to action" or "most sought
after response" which is usually a purchase.
C.
Steps to Develop Effective Marketing Communications
Marketing communication is a way for a seller, in this case a company, to provide
information and influence the public to buy products sold by a company. The following are
the development steps in effective marketing communication:
1. Identifying the intended audience, the audience can be defined as potential buyers of the
company's products, current users, decision-makers or influencers. The audience can consist
of individuals, groups, specific communities or the general public.
2. Determining communication objectives, once the target market and its characteristics are
identified, the marketing communicator must decide on the response expected from the
audience. The final response expected from the audience is a purchase, high satisfaction and
good word of mouth.
3. Designing a message, after determining the desired response from the audience the
communicator's next task is to develop an effective message. Ideally, the message should
attract attention (attention), can maintain interest (interest), can arouse consumer desire
(desire) and drive action (action). Formulating a message requires solving 4 (four) problems,
namely:
a.
Message content: What will be said.
b.
Message structure: How to say it logically.
c.
The format of the message: How to say it symbolically.
d.
Source of the message: Who should say it.
4. Choosing communication channels, communication channels consist of 2 (two) types,
namely: (1) Personal communication channels, which include two or more people
communicating directly with each other; (2)Nonpersonal communication channels convey
messages without personal contact or interaction, but through media, atmosphere and
events.
5. Determining the total promotional budget, there are 4 (four) main methods used in preparing
a promotional budget, namely:
a.
Methods according to ability.
b.
Sales presentation method.
c.
Competitive balance method.
d.
Goal an d task method.
6. Making decisions on the promotional mix (Marketing Mix), companies must distribute the
total promotional budget for 5 (five) promotional tools, namely:
a.
Advertisement
It is a communication model that can reach a wide public. Advertising can be used to
build a long-term image and also accelerate sales. In addition, advertisements are also
standardized and can be aired repeatedly and can get a dramatization effect from the
advertisements that have been aired. However, advertisements can only carry messages in a
monologue (one-way communication).
b.
Sales Promotion
This promotional tool has the benefit of being a means to attract attention and provide
information that ultimately directs consumers to the product. This contributes added value to
consumers and also can actively encourage consumers to buy products.
c.
Public Relations and Publicity
This promotional tool can attract the attention of the general public if it has high
credibility and does not include sales elements, so it is only an information provider. Public
Relations and Publicity can also achieve the same dramatization effect as advertising.
d.
Personal Selling
Is the most effective promotional tool in the last cycle of the buying process. This
happens because personal selling can create a close interactive relationship so that it can get
to know consumers deeper and better so that it can provide the right response.
e.
Direct Marketing
This promotional tool can only reach specific consumers. However, the message
delivered through direct marketing can be adjusted to the character and response of the
intended consumers and can be updated quickly as well.
7. Measuring promotional results, after implementing a promotional plan, communicators
should measure its impact on the target audience. This involves asking the target audience if
they recognize or remember the message, the number of times they have seen it, what things
they remember, how they feel about the message and whether the message has been
delivered their previous and current attitudes about the product and company.
8. Managing and coordinating integrated marketing communication processes, many
companies still rely heavily on one or two communication tools to achieve their
communication objectives. This practice continues, despite the current disintegration of the
mass market into many smaller markets, each requiring its own communications approach,
the development of various types of new media and increasingly sophisticated consumers.
Communication tools, messages and audiences are very much more modern.
D.
Factors in Determining the Marketing Communication Mix Companies must
Companies must consider several factors in developing their promotional mix such as
the type of product market, consumer readiness to make purchases, the stage in the product's
life cycle and the company's market tools. Factors that determine in the marketing
communication mix (Kotler and Keller, 2018):
1. Product Market Type
The allocation of the communication mix differs between consumer and business
markets. Consumer marketers spend successively on sales promotion, advertising, personal
selling and public relations. Business marketers spend successively on personal selling, sales
promotion, advertising and public relations.
2. Buyer Readiness Stage
Communication tools differ in cost-effectiveness according to different stages of buyer
readiness. Advertising and publicity play the most important role in the awareness-building
stage.
3. Product Life Cycle Stage
Communication tools also have different cost-effectiveness according to different
stages of the product life cycle. At the introduction stage, advertising and publicity have the
highest level of cost effectiveness, followed by personal selling to gain distribution reach
and sales promotion to encourage consumers to try it. Furthermore, at the growth stage,
demand has its own momentum through word of mouth. At the maturity stage, successively
sales promotion, advertising and personal selling all play an increasingly important role.
Finally, in the decline stage, sales promotion continues to play a strong role, communication
tools are reduced and salespeople pay little attention to the product.
RELATIONSHIP INTEGRATED MARKETING COMMUNICATIONS WITH
CONSUMER BEHAVIOR:
A.
Strategy and Evaluation Advertising
The history of advertising can be traced back to medieval times. Archaeologists
conducting research in various countries around the Mediterranean Sea have unearthed
many findings that show ancient advertising-related relics related to that era. For example,
the Romans made paintings on walls to announce gladiatorial fights. Also, the Phoenicians
painted on boulders to promote their wares along parade routes. During the golden age of
ancient Greece, many cities would announce the sale of livestock, handcrafted goods, and
even cosmetics backed with commercial jingles.
However, modern advertisers are much more festive than in previous times. Spending
advertisers in the United States is estimated to be close to 190 billion US Dollars or about
27.55 trillion Rupiah or about 34% of the total worldwide spending of 545 billion US
Dollars. One of the largest advertisers is Procter & Gamble with spending of US$4.6 billion
in the United States and US$11.5 billion worldwide (Kotler & Armstrong, 2018).
1. Key Advertising Decisions
a.
Advertising Goal Setting
This is the first step in advertising. These objectives should be based on the decisions
made earlier about the target market, positioning and marketing mix, which define the
actions to be taken in advertising as part of the overall marketing program, namely forming
customer engagement and building customer relationships by communicating the value of
the service to customers.
An advertising objective is a specific communication task that must be achieved
towards a target audience within a certain period of time. Advertising objectives can be
classified based on their main objectives, which are to inform, persuade and/or
remind.
2. Various Advertising Targets
a.
Informative Advertising
Consists of communicating the value of services to consumers, building brand and
company images, informing the market about new products, informing how a product
works, proposing the benefits of a product, information on price changes, explaining the
availability of services and support and correcting wrong impressions.
b.
Persuasive Advertising
Build choices or perceptions of a brand, encourage potential consumers to switch to
their brand, change consumer perceptions about the value of a product, persuade consumers
to immediately buy their products, create consumer attachment and build a community that
is loyal to their brand.
c.
Reminder Advertising
Maintain and maintain relationships with consumers, remind consumers that there is a
product that may be needed at some point in the future, remind consumers to buy their
products, and keep their brands in the minds of consumers even outside the marketing
season.
Destination from advertising is to help consumers to go through the buying process
with Fluent. Some advertisements are designed to enable immediate action. For example,
television shows that allow viewers to take direct action online and transact in a timely
manner. Similarly, it can be done through newspapers that slip in a coupon for an end-of-
week sale so that consumers can visit the outlet directly. However, many advertisements
focus on building or strengthening relationships with consumers over the long term. For
example, Nike's television commercials where famous athletes are given extreme challenges
while wearing Nike shoes, never directly ask for sales. Rather, it aims to convey an
attachment with consumers while changing the way consumers think and feel about the
brand.
3. Developing an Advertising Budget
After determining the purpose of advertising, the company's next action is to develop
an advertising budget for each product. There are 4 (four) commonly used methods, namely:
a.
Affordable Method
The preparation of the promotion/advertising budget at the management level
calculates according to affordability. Even if it is necessary to shift (shifting) the account or
use of the pos others are still possible as long as there is approval from the management.
b.
Percentage of Sales Method
Preparation of a promotional/advertising budget based on a percentage of current or
forecasted year sales or as a percentage of sales value in rupiah.
c.
Competition Parity Method
Preparation of a promotion/advertising budget based on the amount spent by
competitors.
d.
Objective and Task Method
Develop a promotion/advertising budget by:
1) Define specific promotional objectives.
2) Determine the tasks required to achieve all expected goals.
3) Perform cost estimation to carry out all tasks to be performed.
The total cost of the three items above is the proposed promotional budget. (Kotler &
Armstrong, 2018).
A brand's advertising budget is usually tailored to the stage of its life cycle (PLC -
Product Life Cycle). For example, new products usually require relatively large advertising
budgets to build up the attention of potential customers and to build the brand's reputation.
encouraging them to try. Conversely, brands that are already accepted and recognized by
certain consumer groups usually require less budget as a percentage of sales. Similarly, a
product brand that has many competitors in the market so that advertising is so "vibrant"
then an extra budget is needed so that the attention of consumers in the market can be more
focused on the brand owned. The use of extra budget must also be used effectively and
efficiently with the calculation of the cost of using the right media and time.
4. Advertising Strategy Development
Advertising strategy consists of 2 (two) main elements, namely creating advertising
messages and choosing advertising media. In the past, many companies viewed media
planning as a secondary priority after the advertising message creation process. After the
Creative Department creates the best advertising material, the Media Department selects and
"Buys" the best media for its advertising vehicle in order to reach the targeted (potential)
consumers. This often causes friction between the Creative Department and the Media
Planner.
Some examples of advertising media include: television, digital media, social media,
mobile media, newspapers, direct mail, magazines, radio, outdoor media and others. A
brand can choose any or all of the media, depending on budget capabilities. Cigarette
products or brands have a very large budget so that almost all media can be used, including
various sports, music and other events.
B.
Promotion Sales
Personal selling and advertising are often close in communication efficacy to other
promotional tools, namely sales promotion. Sales promotion consists of short-term
incentives that can encourage consumer purchases of a product or service. Advertising only
offers reasons why to buy a product or service, while sales promotions offer reasons to make
purchases immediately because there are certain benefits that can be obtained. For example,
discounts or purchases of a certain amount will get souvenirs.
Furthermore, sales promotions can take place in a variety of places. For example, a
laundry discount coupon inserted in the Sunday newspaper. It could also be a notice that if
you buy one bottle of orange juice, you will get an additional free bottle. Another form can
be a 20% discount promotion for the purchase of the next cup of coffee if done on the same
day. Sales promotions can take a variety of forms designed to stimulate an earlier and
stronger response in consumers.
1. Rapid Growth in Sales Promotion
Sales promotions are used by most organizations or companies, including
manufacturers, distributors, retailers and non-profit institutions. They target end consumers
(consumer promotions), retailers and wholesalers (trade promotions), business customers
(business promotions) and members of the sales force (sales force promotions). In recent
years, the average consumer packaged goods sales turnover has accounted for 60% of the
overall marketing budget.
Many factors contribute to the rapid development of sales promotion, especially in the
consumer market, including:
a.
Company Internal Factors, Product Managers will face greater pressure to increase
sales in the current year and they assume that promotion is an effective tool for short-
term sales boosting purposes.
b.
Company External Factors, companies face much stiffer competition and competition
in terms of brands is less differentiated. Further, competitors use sales promotions to
help differentiate their offerings.
c.
Advertising efficiency has declined due to rising costs, media obscurity and limitations
in terms of legality.
d.
Consumers Have Become More Time- and Quantity-Oriented, in an ongoing economic
condition, consumers will want lower prices and get better quality. The use of sales
promotion can support this goal, namely consumers who make savings in their expenses.
With a more efficient sales promotion budget, it can reduce the cost of goods sold which can
automatically reduce the selling price.
The growing use of sales promotion tools has resulted in a wide variety of promotional
activities, similar to what happens in advertising. As a result of so many products offered in
recent years, there is a risk of drowning a promotion in the "Sea" of thousands of other
product promotions, thus weakening its ability to trigger the urge to buy immediately to its
consumers. Manufacturers are trying to find ways to overcome this situation, such as
offering higher discount coupon values, creating more attractive offers at certain outlets in
collaboration with credit card providers, or delivering promotions through the latest digital
media such as the internet or cell phones. According to an institutional study, 90% of the top
100 retailers use digital promotions that distribute coupons. Digital promotions can help
drive in-store sales and online sales.
2. Sales Promotion Goals
In developing a sales promotion program, a company must first set various sales
promotion objectives and then choose suitable means in order to achieve all these
objectives, which are very diverse. Salespeople may use consumer promotions to encourage
short-term consumer purchases or to excite consumers about an existing brand. The goals of
trade promotions include getting retailers to take on new types of goods/products and buy
more merchandise (inventory), do more upfront buying than usual, or promote products or
give more shelf/gondola space at retailers' outlets. Business promotions are used to
encourage market share, stimulate purchases, provide consumers with various gifts or
incentives, as well as increase the motivation of salespeople. For salespeople, the goal is
mainly to get more people to support the increase in sales, including introducing new
brands.
Sales promotions are usually used in conjunction with advertising, personal selling,
direct marketing and digital marketing or a combination of all available promotional tools to
be more effective. Consumer promotions usually have to be advertised and can be
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Added element surprise and interesting attention to the advertisements launched and other
marketing content. Promotional selling for trade and business supports the company's
personal selling process. When there is a downturn in economic conditions so that sales
have decreased, there is an attempt to offer much larger discounts to spur consumer
spending. However, in general, if only creating sales term short-term sales or a
temporary brand shift, sales promotions should help to reinforce product positioning and
build long-term consumer relationships. If designed well, all sales promotion tools have the
potential to build short-term surprise and engagement and relationships.
long-term consumers.
Marketers should avoid instant results in the form of price reduction promotions that
are merely short-term promotions designed to build brand equity. Examples include
frequency measure marketing programs and loyalty cards. Most hotels, supermarkets and
airlines offer repeat customers a program that rewards regular customers for coming back to
shop or use their services. These types of promotions can build loyalty through added value
rather than price reductions in the form of discounts.
C.
Designing a Special Event Program
To design a special event program related to consumer behavior, it is necessary to pay
attention to consumer perceptions of the relationship between products and companies,
which are generally anonymous or invisible. For example, when a manufacturing company
that was previously known as a soap manufacturer, on another occasion produced instant
noodles. There is a doubt or ambiguity whether the type of food produced can provide
satisfaction in terms of culinary elements?
Experience in the culinary field is of course different from experience in the field of
airline services, although during airplane travel there are also culinary presentations. The
experience of using the Google search engine can provide an exciting new experience
because by entering one "keyword" we can get any information that has been difficult to
obtain. Even if you can get it, it takes a long time if you have to look in an encyclopedia.
Nowadays, where digitalization has grown exponentially, it can drive the economy,
including in the world of trade, to be so fast. Almost all of us are familiar with dagel
(electronic commerce). Ordering food or goods is just a touch of the finger on the device
you have. Ordering food is enough through the available options, the price is already listed
plus the shipping cost then we can immediately know the amount spent and when the order
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is executed the deposit balance is reduced (Smith, 2020).
Previously, a company often had to conduct FGDs (Focus Group Discussions). A
number of people were invited to the manufacturing company to try out the products
produced or listen to feedback on impressions or experiences while using the services of the
inviting company. After receiving feedback, the invited party is asked to submit various
suggestions so that improvements can be made in the future.
Event marketing strategy can be known as a form of marketing strategy that is realized
through organizing an event. Companies usually organize events with the aim of introducing
new products to the public (especially potential customers) or creating campaigns for
existing products. Although each industry has different products, this strategy can be
utilized by various types of companies related to the planning system that is adjusted to the
budget capabilities and the products produced.
For example, events are used in the music industry. Companies often hold events to
promote musicians or bands that introduce their products on electronic media, both
television and radio. Nowadays, it can be done through Youtube. The event marketing
strategy itself includes everything about equipment, techniques, and available promotional
channels.
The promotional channel here is intended to promote the event to be known by the
wider community. The goal is for the audience to come to the organized event either by
buying tickets or not for events that are open to the public. Through event marketing a
commodity can be introduced to the public. In addition, it creates emotional and rational
closeness between consumers and products. (Didy, 2020).
With this promotion pattern, consumers can touch, feel, hear and see the products
offered directly. It is different when only seeing through advertisements on television. In the
end, event marketing activities must be able to leave a deep impression in the minds of
visitors.
1. Functions and Objectives of Event Marketing Strategy
An event is the most unique marketing strategy because it can present a special
experience in the minds of consumers. The opportunity for consumers to interact directly
with the products or services offered is very large. This is something that cannot be found in
other marketing strategies. Here are some other functions and objectives of the event
marketing strategy:
a.
Increase Sales of Products and/or Services
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Increasing sales is worthy of the first place because this is the main goal of event
marketing. All marketing strategies generally rest on this end goal. However, event
marketing makes the path to this end goal more intimate and lasting. Therefore, large
companies such as Samsung prioritizes event marketing when launching its new products.
Prospective consumers and consumers who have used previous types of Samsung products
can enjoy the new features offered.
b.
Making Products or Services Accepted by Consumers
For a product to be accepted in the community, it needs an emotional and personal
approach. This is the function of event marketing. Various event marketing strategies
arrange everything that supports the success of the event organized so that the product
message can be accepted by the audience in attendance. Understanding the behavior of
(potential) consumers is an important part in aligning event marketing with the goals to be
achieved, namely increasing sales.
c.
Expanding the Network
In an event there are many parties involved. Not only the event team itself, but also
external parties who are very likely to become partners in the future. Investors and
competitors are also an integral part of a business network. It could be that with the success
of an organized event, investors are interested in investing in the company. Nowadays, a
start-up company needs financial support from investors who are interested in the potential
of the business being developed.
d.
Attracting Profits
The profits for event organizers come from tickets sold and sponsorships. However,
there are other benefits that they can achieve after the event is over, namely an increase in
sales figures from products. Successful event marketing will bring benefits in the long run
(Didy, 2020).
D.
Public Relations (PR)
Another key promotional tool is Public Relations, which consists of a range of
activities designed to "bond" and build good relationships with the company's stakeholders.
PR can include some or all of the following functions:
1. Relationships with the press or news agencies, namely by presenting weighty
information so that it can be displayed as news that can attract attention to a person,
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product or service.
2. Product and brand publicity.
3. Relationships with public issues, in the form of building and maintaining relationships
with local and/or national communities.
4. Lobbying aims to build and maintain good relationships with legislators (parliament)
and government officials to influence legislation and regulations.
5. Relationships with investors, especially shareholders and the rest of the financial
community.
6. Development, which involves working with donors and non-profit organizations for
financial or volunteer support.
PR is used to promote a wide range of products, individuals, places, ideas, activities,
organizations and even countries. Many companies use PR services to build good
relationships with their customers and potential customers, investors, media and other
stakeholders. PR services are also used to support the feasibility of news about events or
activities of a company. For example, when a cigarette company announces an important
decision regarding the action to stop selling its products in various outlets owned even
though it will sacrifice revenue of around USD 2 million, but the results will make headlines
in various media because it is in line with the programs of various governments in the world.
Role and Impact of PR
Like any other form or means of promotion, PR has the powerful power to "bind"
consumers so that they can make a brand a part of their daily lives and conversations.
However, PR can have a strong impact at a much lower cost than advertising. Compelling
storytelling about a brand is usually in the form of advertorials - event organizers (music
and sports), short videos on social media (cigarettes and supplement drinks) or other content
that can use various media or be shared virally among consumers can have as much or more
impact than advertising that costs a huge amount of money.
EVALUATION OF ALTERNATIVES BEFORE PURCHASE:
A.
Criteria Evaluation
Before making a purchase decision process, consumers often compare alternative
product or brand choices based on their attributes. Evaluation criteria are dimensions,
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features and benefits that consumers are looking for to respond to their problems or needs.
Evaluation criteria can be functional attributes such as color, size, usability, besides that
consumers evaluate alternatives based on positive emotions that are expected to occur when
consuming certain products or services (for example, feelings of comfort and relaxation
after inhaling aroma therapy) and also positive responses from reference groups that are
considered important. Purchase evaluation criteria can differ from one person to another. For
example, before buying a smartphone, a college student strongly considers aspects of price,
design, camera pixels and battery life. However, a manager may They do not pay much
attention to the price aspect but focus more on the type of processor, memory and RAM
capacity, warranty availability and the image generated when using the smartphone.
Evaluation criteria that consumers consider important are formed from the process of
learning, buying and using. In determining evaluation criteria for new products, first-time
use or products that are not yet well known by consumers, they need to seek information,
ask opinions from trusted reference groups or try the product first. As an illustration when
someone wants to buy his first exercise equipment to exercise comfortably from home and
can also lose weight. Previously, the person was still confused whether he wanted to buy a
treadmill, stationary bike or elliptical cross trainer, but one criterion that could be
ascertained was the price range of the product he wanted to buy. After seeing reviews from
fitness youtubers, he learned that he needs to buy fitness equipment that is comfortable to
use, minimizes injury, does not consume a lot of electricity and has a warranty so that it can
be used for a long time. After the process of learning, purchasing and using, consumers will
be more confident and understand the desired product alternative criteria for purchasing
similar products in the future.
Evaluation criteria are usually identified with the benefits that consumers expect. For
example, consumers want salicylic acid (evaluation criteria) in their face cream to reduce
acne (expected benefit). Because of this, In their marketing strategies, marketers need to
focus more on conveying the benefits expected by consumers, not merely mentioning
evaluation criteria that some consumers may not understand well.
The evaluation criteria used by consumers in making purchasing decisions can vary in
terms of type, number of criteria, and importance. Types of evaluation criteria include
tangible and intangible features such as taste, pride and feelings gained from the
consumption process, prestige and product image. Figure 10.1 shows advertisements of the
same brand, Nutrilon, but with different types of evaluation criteria emphasized. The left ad
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emphasizes the tangible attributes and technical performance of Nutrilon milk, while the
right ad focuses on the expectations, feelings and intangible benefits when a child consumes
Nutrilon.
In general, the number of criteria considered by consumers when buying products with
low prices and daily use is less when compared to products with relatively expensive prices
and will be used for a long time. Other factors that influence the number of evaluation
criteria are consumer familiarity with the product, consumer age and time availability in
making decisions. The more hurry and short time consumers have, the fewer and simpler the
number of evaluation criteria will be.
The importance weight applied by one person and another to each evaluation criterion
may vary due to differences in purchasing power, taste, lifestyle and familiarity with the
product. Table 10.1 illustrates three consumers who have the same seven evaluation criteria
but with different criteria priorities. Consumer A and consumer C prioritize affordable
purchase price when buying a smartphone. Meanwhile, consumer B prioritizes the latest
processor in the first place and does not really care about the purchase price or resale price.
Consumer A who prioritizes resale price in the evaluation criteria is likely to use the
smartphone he owns only for a relatively short period of time when compared to consumers
B and C. By knowing the weight and priority order of the evaluation criteria, marketers can
group their consumers into segments marketers can design marketing communication
strategies that match the priorities of their target consumers' evaluation criteria. Sometimes
marketers also try to convince consumers to shift the priority of their evaluation criteria
according to the advantages of the products offered.
B.
Determining Alternatives Options
In determining alternative choices, there are three types of selection processes, namely
affective choice, attitude-based choice and attribute-based choice. The following is an
illustration of three situation scenarios in determining alternatives when buying a
smartphone:
1. Situation 1 (Affective Choice)
When someone plans to buy smarphone, then he will look at the alternatives available on
the marketplace and is interested in Samsung brand smartphones that appear on his
homepage. According to him, the Samsung Galaxy A32 has a contemporary design and
looks like the design of the type of Samsung flagship that is also used by his idol Korean
artist. Apart from Samsung, he also received a recommendation for a smartphone with the
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Oppo brand at a similar price, but in terms of design it looks not premium. After
consideration, he finally chose a Samsung smartphone, because it would definitely make his
appearance more cool and trendy when hanging out with friends. This choice is based on the
feelings caused when using the product.
2. Situation 2 (Attitude-Based Choice)
Someone who knows his friend has an iPhone that is undoubtedly good in design, but
the price is not in line with the budget. He has also seen reviews from youtubers about
Samsung in the midrange category whose features are quite capable for students, are known
to be durable and the price is also affordable. Currently he has a Xiaomi smartphone which
is more affordable than Samsung but has only been used for 1 year, it turns out that there has
been a lot of damage. With his insight and experience, he finally decided to buy Samsung.
This choice is based on attitudes formed from experiences, impressions, insights that
consumers learn and intuition before making decisions.
3. Situation 3 (Attribute-Based Choice)
With their budget, consumers will compare smartphone features from youtuber
reviews, gadget magazines and physical stores. Attributes compared include processor,
camera resolution, battery life and memory capacity. Consumers finally choose a
smartphone with the most superior features and of course still within their budget. This
decision is based on comparing the technical and functional aspects of the product.
C.
Estimating Alternative Options
In estimating alternative choices, there are three points of view used by consumers,
namely economic, cognitive and emotional. Consumers who use an economic point of view,
will determine alternative choices based on the possible advantages and disadvantages of
buying and using a product. With a cognitive point of view, consumers will process
information obtained through the learning process, watching advertisements, studying the
behavior of the people around them. This decision is influenced by logic compared to the
affective point of view.
Often consumer purchasing decisions are not based on logic but because they are
carried away by the feelings or emotions they experience, as happens with the hedonic
purchasing motive. Consumers who buy goods because of desire, attractive advertisements
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or momentary desires when they see price promos are purchasing situations which is
influenced by emotions. This situation can be utilized by marketers to promote affective
aspects by building consumer familiarity with products and creating a pleasant shopping
atmosphere.
D.
Selecting Decision Making Rules
To make a purchase decision when consumers have evaluation criteria and several
alternative brands to choose from, as shown in Table 10.2, they need to establish decision
rules. The five commonly used decision rules are disjunctive, conjunctive, lexicographic,
aspect-based elimination and compensation. The disjunctive and conjunctive decision rules
result in several potential product alternatives, while the lexicographic, aspect-based
elimination and compensation rules result in one best product for consumers to choose from.
These decision-making rules work effectively on functional product types, high-
involvement decision-making types and using cognitive abilities.
1. Disjunctive Decision Making Rule
In disjunctive decision making, consumers will set a minimum expected performance
level on each evaluation attribute and any alternative that meets or even exceeds the
minimum level of the key evaluation attribute will be considered acceptable. In this
disjunctive decision-making rule, the minimum standard set is usually high enough to
narrow down the choice of alternatives. Table 10.3 shows an illustration of a disjunctive
decision rule. With the minimum value on the evaluation criteria attribute, it can be
concluded that (see Table 10.2) on the criteria of processor and after-sales service, Samsung
and iPhone are eligible brands; on the memory capacity criteria, Samsung, Xiaomi and
iPhone are eligible; on the camera resolution criteria, Oppo and iPhone are eligible. With
this disjunctive decision-making rule then 4 potential smartphone brands are obtained,
namely Samsung, iPhone, Xiaomi, and Oppo. Consumers can choose anything from one of
these brands or use other additional decision-making rules if they want to narrow down the
alternative choices.
It is important for marketers to know the minimum values on the evaluation criteria
attributes of their target customers, as shown by Samsung in (Figure 10.2). In the
advertisement, important attributes for consumers are displayed, namely price, battery
capacity, processor and camera resolution.
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2. Conjunctive Decision Making Rule
In the conjunctive decision rule, consumers need to set a minimum performance
standard required for each evaluative criterion and choose the first brand or all choices that
will meet or exceed this minimum standard, this decision making is done in an effort to
simplify choices when a consumer is faced with many alternative choices. Consumers can
use this conjunctive rule in high-involvement buying situations such as when considering the
purchase of a house, car or family vacation. In low- involvement situations, consumers may
also evaluate the minimum standard on each criterion, but do so in a short period of time
and usually tend to buy the first product encountered and considered to meet the standard.
Therefore, marketers need to know about the minimum criteria expected by consumers,
ensure product distribution is done well so that it will be easy to find and ensure products
are placed in strategic places on store displays.
Table 9.4 illustrates the minimum values for the evaluation criteria attributes in the
conjunctive decision rule. Any brand that does not reach the specified minimum value will
be eliminated from the selection list. With reference to Table 10.2, it can be concluded that
Xiaomi, Oppo and Huawei are eliminated from the list of alternatives because it did not
meet the minimum standards in terms of processor, memory, camera resolution and after-
sales service. The two strongest candidates were Samsung and iPhone.
3. Aspect-based Elimination Decision Rules
The stages of making elimination decisions based on aspects include the first
consumer needs to determine the priority order of attributes starting from the most important
and determine the cutoff value for each attribute. As an illustration we can see in Table 10.5,
all brands (in Table 10.2) will be selected based on the most important criteria and cutoff
values first. Brands that meet the cutoff value on the processor quality criteria include
Samsung, Xiaomi and iPhone. Furthermore, based on the second-order attribute of memory
capacity, no brands are eliminated. While based on the battery life attribute, iPhone is
eliminated and with the camera resolution criteria, the remaining brand is Samsung.
By using the aspect-based elimination decision rule, consumers will get one candidate
with the best brand that meets the cutoff standard. Marketers need to know the order of
attributes that consumers prioritize and highlight the advantages of these attributes both on
product packaging and advertisements so that consumers can easily know the competitive
advantages of the brand. The example of the advertisement in Figure 10.3 showing flour
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products from Ladang Lima that are healthier when compared to other flour, is an attempt
by marketers to highlight attributes that are considered important by customer segments who
are looking for healthy food alternatives.
4. Lexicographic Decision Rules
The lexicographic decision rule is a similar rule to the aspect-based elimination
decision rule, but the difference is that consumers need to retain the brand with the best
value in each attribute order. As an illustration, still using the data in Table 10.2 and Table
10.5, on the criteria of processor quality and memory capacity, the two brands with the
highest attribute values are iPhone and Samsung. Then when using the battery life
assessment criteria, the strongest candidate left is Samsung.
5. Compensation Decision Rules
In the four decision rules discussed earlier, consumers make a purchase decision
because of excellent performance on one attribute criterion but have to accept poor
performance on another attribute criterion. The compensatory decision rule states that the
brand chosen by the consumer is the brand that gets the highest score on the sum of the
consumer's ratings based on the evaluative criteria. Table 10.6 shows an illustration of the
importance weights that consumers assign to brand attributes, with a total value of 100.
Referring to Table 9.1, the following is an example of calculating the rules for taking
compensation for the Samsung brand and the total calculation for each brand is shown in
Table 9.7.
By using the compensation decision-making rule, the brand chosen by consumers is
Samsung, because it has the greatest overall value when compared to other brands. The
implication for marketing strategy is that if the company can realize the weaknesses in its
products, it is necessary to highlight its advantages so that consumers are still interested in
buying these products.
