My Advertising ideas meet with the internship

My Thesis

This thesis has been successfully published on April 2009.

The following is the abstract of my thesis.

Title: The Effectiveness of AirAsia's Advertisements Among The Undergraduates of Universiti Utara Malaysia.

Abstract

Airlines services are becoming more common among the people after the implementation of low fare promotions by AirAsia. This kind of service has led to the people nowadays willing to replace the express bus service with flights in which they perceive that taking a flight is faster and even easier than before. Generally, this phenomenon has brought to the overwhelming advertisements by the competitors and subsequently transforms advertisement into more interactive (internet advertising) as we can see now. The cluster of advertisements in this era has attracted the competitors to develop its services by introducing its brand to the potential buyers via various advertising activities. Therefore, the issue of effectiveness has emerged when all of the competitors are trying to promote its services by solely using advertising. Effective advertisement is always able to give positive effects on buying decisions and product loyalty directly. In this context, the function of an advertisement plays a crucial role in retaining, attracting or recruiting potential customers to continue using a product or service.

Data were obtained from 120 respondents who are taking the course of Media Technology (Hons) and they have given the related information for the requirements of this study and data was analyzed by using Statistical Package for the Social Science (SPSS) version Win 12. Descriptive statistics were used to describe percentages, means and standard deviation. Further analysis such as Pearson Correlation and T-Test were used to test the formulated hypotheses.

This study focuses on the effectiveness of AirAsia’s advertisement that leads to the audience’s involvement in the ad by following the research of “Audience Involvement in Advertising” from Anthony and Leavitt (1984). The characteristics of advertising are one of the variables that used to measure or determine the effectiveness of AirAsia’s advertisement. This study also intends to see whether gender is likely to show the difference in low or high involvement among them. Other than that, customer’s experience in the airline services may lead to the high involvement in advertisement has been measured by using the selected scale.

The result of this study found that the characteristics of the advertisement have a significant correlation with the effectiveness of AirAsia’s advertisement. This implies an advertisement which includes appropriate appeals may obtain the higher effectiveness performance. Meanwhile, the audience’s feelings towards the AirAsia’s advertisement have showed a significant correlation with the effectiveness of advertisement, in which positive feelings are likely to give impact on the audience’s involvement in an advertisement. This study found that majority of the respondents is obviously at the second level of audience involvement, which is “focal attention”. In other words, the audience in this level of involvement is most likely to read or pay less attention on an AirAsia’s advertisement.In addition, majority of the audience has shown that they are at the moderate level of audience involvement in Elaboration Likelihood Model (ELM). Their level of involvement shows that they have already involved themselves in AirAsia’s advertisement or searched for the information moderately. Gender factor is apparently not affecting audience’s involvement in determining effectiveness of AirAsia’s advertisement. Besides this factor, this study found that the experienced respondents are showing high involvement in AirAsia’s advertisement.

In order to compete or be dominant in this market, AirAsia needs to pay attention on its advertisement and use the most suitable approach in its advertisement so that the prospective passengers will be attracted more effectively. AirAsia’s advertiser should look at the aspect of customer’s experience that brings to the user’s involvement in its advertisement. That is because, only the experienced consumer may appear to be high involvement in an advertisement or product information. Promotions with even lower fare may be able to attract new passengers in order to allow the prospects to experience their services.

Rate Card in Various Media

There are FOUR kinds of rate cards were found (outdoor, TV, online, and print media).

Outdoor: KL Sentral Advertising Panels

TV: 8TV

Online: Cinema online Malaysia

Print: The Star Newspaper, Malaysia Canada Business Council Magazine

	Duration	Column	Colour Options	Interactivity	Screen Solution
Outdoor	Days	Yes	Yes	Less	Yes
TV	Second	Yes	Yes	Less	No
Online	Days	Yes	Yes	High	Yes
Print	Insertions	Yes	Yes	Less	No

When it comes to duration of the advertising rate, every media possesses different duration based on the feasibility. For instance, the advertising in print media depends on how many times it appears in the newspaper a week. As for the outdoor and online media, they are given certain period to display their advertisements and the ad will be removed after the given period.

Basically, every media has its respective column. The outdoor media allowed two different company to collaborate their advertisement and place it in a advertisement board. Apart from that, TVC can be advertised in a running shows/drama. Whereas, the online advertising is counted depends on the size of the column in a web page such as banner, skyscraper, text banner and etc… Lastly, the column for newspaper ad is either in full page or some part of the page.

Every media is free to choose what colour they desire to advertise. Logically, colour ad is more effective in grabbing attentions.

Online advertising has much interactivity and promotes two way communications. The audience could click the interested advertisement in order to know or understand about the particular product. Nevertheless, we cannot deny that the other media is not considered as 'interactive', there are contact number and voucher that urge the audience to respond after exposed to the ad.

Outdoor media can choose which sizes of the screen they intend to advertise, most of the outdoor advertising has a variety of screen sizes. Most of the TV advertising doesn’t have the choice of screen solution, they are all in full screen pattern. The Online advertising depends on the format, which are: GIFF, JPEG, Flash and so on.

However, the price of advertising in TV during weekends is lower than the usual price. That is because there will be only a few audiences and most of them went out for family gathering or outing. Most of the media do not display their rate card in the internet and urge the buyer to contact them. From this aspect, we know that the rate is set by the company itself depending on the package they provide.

My Third Journal Article Review: Relationship Marketing

Title: Does Relationship Marketing Improve Customer Relationship Satisfaction and Loyalty?

By: Leverin, A.& Liljander, V.

Source: Journal of Bank Marketing Vol. 24, No. 4, 2006 pp. 232-251

1.0 Introduction

During the previous years, the banks were mainly providing the saving service and investments for the customers, they did not realize that the importance of establishing relationship between bank and customer is essential. Due to the increase number of banks nowadays, banks tend to organize various competitive programmes in order to receive profits and to obtain more customers.

The aim of this study is to investigate the RM strategy of a retail bank, in order to discover whether the implementation of the strategy has had the intended strengthening effect on customer relationships. A survey was conducted on two different profitability segments, collecting data on customer relationship satisfaction, perceived relationship improvement, and loyalty towards the bank. The study examines the RM strategy and investigates whether its implementation has led to customer-perceived improvements in the banking relationship, and to increased loyalty in the targeted segment.

According to O’Malley, and Tyanan (2000), relationship marketing works better if only the customers get themselves involved in the product or service, personal interaction and willing to engage in relation ship building activities. However, it does not mean that all of the customers are characterized as the profitable customers in the context of long-term and short-term customers in the banking service.

1.1 Definition of Relationship Marketing, (RM)

Relationship marketing is the method of gradually turning potential customers into subscribers and leads them from position to position along a planned program to convert them into life time customers (Yahya, 2003). In the context of retail banking setting, Walsh et al. (2004, p. 469) define RM as “the activities carried out by banks in order to attract, interact with, and retain more profitable or high net-worth customers.”

According to O’Malley, and Tyanan (2000), customers who perceived benefits of involving themselves in banking relationships are highly encourage the strategy of relationship marketing by the banks.

1.2 Principles of Relationship Marketing (RM)

Paynne, 2006 suggests three main principles of RM. The first is an emphasis on customer retention and extending the ‘lifetime value’ of customers through strategies that focus on retaining targeted customers. The second is a recognition that companies need to develop relationship with a number of stakeholders, or ‘market domains’, if they are to achieve long term success in the final marketplace. The third is that marketing is seen as a pan-company or cross-functional responsibility and not solely the concern of the marketing department.

On the other hand, Hennig-Thuau & Hansen (2000) suggest that there are “6 i’s of RM.”

1. Intention

- of a unique relationship

2. Interaction

- with customer

3. Integration

- of customers

4. Information

- about customers

5. Investment

- in customers

6. Individuality

- of customers

2.0 Literature Review

2.1 Customer Relationship Satisfaction

According to Ennew and Binks, 1999; Jamal and Naser, 2002; Hooi Ting, 2004, A positive relationship between service quality and satisfaction has been well established in the banking sector.

2.2 Customer Loyalty

Customer loyalty is defined as:

… a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behaviour (Oliver, 1999, p. 34).

That implies, customer loyalty is a customer who shows positive attitude or preference toward one of the particular service or product rather than the other.

According to Nordman (2004) even satisfied customers switch banks and move to another while they were showing satisfaction to the bank service. The main factor that contributes to this problem is pricing. Therefore the banks carry out customer loyalty programmes that provide economic incentives.

2.3 The Link Between Loyalty and Profitability

Not all loyal customers are profitable (Storbacka, 1994, 1997). According to Reinartz and Kumar (2002), the overall link between loyalty and profitability in many industries is questionable for two reasons:

(a) a relatively large percentage of long-term customers are only marginally profitable;

(b) a relatively large percentage of short-term customers are highly profitable.

2.4 Profitability Segmentation in Banks

Customer profitability segmentation has been implemented in order to fulfill the RM strategy. Storbacka (1997) suggests applying the principles of segmentation in an RM context. The segmentation criteria are:

- relationship revenue and relationship cost;

- relationship volume;

- relationship profitability; or

- relationship volume and profitability.

3.0 Method

This study was conducted in 2003 and the bank which had fully carried out RM strategy that was launched in 1998 was chosen that is, OP bank in Finland. Segment 1 & 2 has been chosen as the respondents for this study.

4.0 Relationship Marketing and Profitability Segmentation at the Bank

4.1 Implementing the RM strategy

a) Bonus point given to the customer through loyalty programme.

b) 2003, allowed customers to receive cash of collected bonus points

c) Divided customers into three segments. The main criteria for segmenting customers are rate of profitability, loans, deposits, and investment.

i) Segment 1: Most profitable customers and highest business volume or wealth.

- Use customer oriented strategy towards these customers.

- Map the needs of 80 percent and a bonus system to motivate the staff to reach the objective.

- Customers that visit the bank at least twice a year are asked by contact employees how satisfied they are with the bank and its services.

- Customers that seldom visit the bank office are contacted by telephone.

ii) Segment 2: Possess certain volume or profitability (less than Segment1), younger than 26 years old.

- Exposed to a sales oriented strategy to increase the long-term savings.

- Contacted by telephone and offered different types of long-term savings, such as mutual funds.

- Not offered personal appointments and no continuous contact is kept with these customers in order to map their needs.

iii) Segment 3: At least 26 years old, smaller volume and less profitable.

- To increase their profitability

- Directs a transaction oriented strategy towards these customers, minimizing the amount of time spent on them and encouraging them to use self-service options, such as online banking, thus aiming to reduce the relationship costs.

5.0 Results

- Customers had perceived improvements in their relationship with the bank over the past 4-5 years.

- The findings indicate that loyalty in both segments depend on the current level of relationship satisfaction than on perceived relationship improvements.

- The intention of a customer oriented focus on Segment 1 customers, did not lead to higher loyalty in Segment 1 customers compared with Segment 2 customers.

- No differences between the two groups on any of the relationship strength items: relationship satisfaction, relationship improvement or loyalty.

- Profitable customers are likely to be aware of their worth to the bank, and less tolerance for the service. They are more demanding has high expectations on the bank service.

- Customers in segment 2 show that they concern on price issues related to fees and interest rates.

- Customer in segment 1 complaint about the things in bonus programmes such as complexity and inadequacy.

6.0 Conslusion

The effects of Relationship marketing strategy on customer-perceived relationship satisfaction and loyalty have not confirmed in this study. Customers would perceive the improvements in banking relationship once the RM strategy was launched. The researcher suggested the bank to review its current strategy to improve its customer relationship in segment 1 and implement more efficient and sufficient RM strategy to cope with the relationship issues.

My Second Journal Article Review: Positioning

Title: Positioning your service to target key buying influences: the case of referring physicians and hospitals

By: Rajshekhar (Raj) G. Javalgi, W. Benoy Joseph and

William R. Gombeski Jr

Source: Journal of Services Marketing Vol. 9, No, 5 1995 pp.42-52, MCB University Press. 0887-6045

1.0 Introduction

In the modern era today, not only the commercial products can implement the positioning strategy, but the hospital nowadays in USA are trying to carry out the positioning strategy in order to obtain more patients among the competition. The objective of this research is to:

a) Explore the positioning implications of referring physicians’ perceptions and evaluations of tertiary care hospitals.

- Perceptual map is used to examine positioning options and strategies for several tertiary care hospitals in the USA.

b) Highlight the importance of correspondence analysis in assessing a business’ image.

- The physician’s expectations are playing a crucial role in making decision for the patients to undergo certain treatments. Therefore, the particular hospitals are able to position their services by referring to the strength/weakness and improve their service by knowing competitor’s position.

This research focuses on tertiary care hospitals. According to this journal, tertiary care hospitals are those that provide specialized medical services and depend extensively on referrals from physicians or from community hospitals. In this case, physicians play an important role in deciding the hospital for the patients for further treatment. Positioning strategy must be imposed on the physician in order to influence their decision making in choosing hospitals.

In this research, physicians are assigned to fill in the evaluation form when making decision for the patients. They filled in the form with expectations of the hospitals and did not rate the hospitals.

According to this research, evidence suggests that the physician is important to hospitals for at least three major reasons:

- Physicians decide the patient’s length of hospital stay.

- Physicians decide whether to admit their patients to a particular hospital based on past experiences and perceptions of the hospital and its offerings.

- Physicians’ decisions to admit patients to a hospital affect that hospital’s cost per patient-day (Mackay and Lamb Jr, 1988).

1.2 Terms of positioning

The purpose of market positioning is to have potential customer perceive your product or service in a particular way that not only differentiates it from the competition but also makes them more likely to want to buy from you. (Alpha, E.P, 2003) From the book named “The complete idiot’s guide to starting your own business.”

2.0 Suggestions after the Research by Using Positioning Strategy

There are four suggestions by the author after the analysis is done:

a) Strengthening the hospital’s marketing position through effective communications

- For instance, Hospital E’s strengths in organ transplant should be reinforced with communications such as advertising, publicity, personal or telephone contact.

- They should attract physicians who have not made referrals in the past and promote its strength or competitive advantages in credible campaigns and promotions. These efforts are to create awareness of the physicians and induce their loyalty in choosing the hospital.

b) Creating a differentiated position or niche

- Every hospital can be differentiated by its quality and reputation among the competitions, which are the facilities, equipments, and the environment of the hospital.

- In the competitive situation, this is one of the methods to compare or differentiate its special features. Physicians are more likely to evaluate the hospitals by comparing the uniqueness or strength of a hospital.

- Niche means limit their service to concentrate on a narrow service line, distribution channel or target market. For example, since hospital E is dominant in organ transplant, it can become the local or regional benchmark for organ transplant.

c) Establishing ongoing physician relationship

- This suggestion’s objective is to promote physician’s bonding and loyalty on certain service. The stronger the perceived image of the hospital and its offerings, the easier it is to establish networking programs and relationships with the referring physician market.

- They have to organize a program that not only to strengthen the existing relationship between hospital’s staff physicians and referring physicians, but also to foster new relationships.

d) Strengthening hospital reputation through sponsorship of tutorial, educational, and CME programs.

- This effort is to promote the reputation of the hospital and publicity in order to compete among the hospitals.

- Normally, the sponsor’s name will be mentioned during a program and this is the time for the hospital to promote their service more effectively.

2.0 Conclusion

This journal indicates the competition of the hospital and suggests the way to promote their service. It also tells us not only a product or service needs positioning, but hospital service also needs positioning and it is getting more commercialize nowadays.

3.0 Application

In Malaysia, the hospitals are not as competitive as in USA. However, most of the Malaysians rely on public hospital and the private competition is not so apparent and significant. Therefore, I would like to discuss about the positioning strategy by the telecommunication company in Malaysia.

There are three major telecommunication providers in Malaysia. Which are; Maxis, Celcom(TM), and Digi. They mainly differentiate their service by offering special features to the customers.

3.1 Maxis

- Provides 3G service

- Campus zone activation for the students

- Maxis broadband

- Active10

- Hotlink Reward

- Reload bonus

- Promotions from time to time

3.2 Celcom (TM)

- Provides 3G service

- Widest network coverage even in remote places

- Lowest rate in making calls.

- Reload machine which operates 24 hours.

- Celcom broadband

- Collaborate the promotion with Telekom Malaysia

- Promotions from time to time

3.3 Digi

- Friends and Family (11)

- Colour text messaging

- Digi broadband

- Birthday reload bonus 50%

- Promotions from time to time

4.0 Positioning Strategies

There are seven positioning strategies that can be pursued:

Product Attributes: What is the specific product attributes?

Benefits: What are the benefits to the customers?

Usage Occasions: When / how can the product be used?

Users: Identify a class of users.

Against a Competitor: Positioned directly against a competitor.

Away from a Competitor: Positioned away from competitor.

Product Classes: Compared to different classes of products

Source: http://www.determan.net/Michele/mposition.htm

Author: Michele