Classes 23 &24 Marketing Concepts Cohen UNCC

Communication
process of conveying a message to others
Source
company/person with information to convey
Message
information sent by a source
Channel of communication
who/what conveys the message, e.g. salesperson, advertising media, public relations tool
Receiver = consumer who reads, sees, hears the message
Encoding
process of having the sender transform an idea into a set of symbols
Decoding
process of having the receiver interpret the message
Field of experience
mutually shared understanding that will facilitate appropriate understanding of messages
Response
reactions of receiver after receiving message
Feedback
part of the receiver’s response communicated back to the sender
Noise
interference with effective communication/interpretation
Product life cycle
course of a product’s sales & profits over its lifetime
Channel strategies
selection of the most effective channel(s) to communicate the message to the target market
Promotional objectives
what the communication/message aims to accomplish, e.g. use of models ranking progressive stages of consumer awareness-action, like AIDA or AIETA models
Promotional budget setting
how much to spend on each element of the promotion mix
Product placement
consumer sales promotional tool that uses a brand-name product in a movie, TV show, video game, or commercial for another product
Owned Social Media
conversations on social media you control
Earned Social Media
conversations on social media outside your control
5 tactical elements of the Marketing Communications Mix
1)advertising
2)public relations
3)direct marketing
4)personal selling
5)sales promotion
advertising
includes print, broadcast, Internet, outdoor, etc.;
public relations
includes press releases, sponsorship, special events
direct marketing
includes catalogs, telemarketing, kiosks, Internet (again), etc.;
personal selling
includes sales presentations, trade shows, incentive programs
sales promotion
includes p.o.p., premiums, discounts, coupons, etc.
Two major factors are changing today’s marketing communications:
1)Huge improvements in information technology are propelling movement toward segmented marketing.
2)Shift away from mass marketing to focus on micro-markets.
ADVERTISING
any paid form of non-personal
communication about an organization,
a product, service, or an idea, by an
identified sponsor
2 types of advertising:
1. product advertisements
2. institutional advertisements
Product advertisements
focus on selling product/service
Institutional advertisements
aims to build goodwill or an image for an organization; often used to support public relations plan or counter adverse publicity
reach
number of different people/households exposed to an ad
frequency
number of times person in target audience is exposed to ad
rating
% of households in market tuned to particular TV show or radio station; this is ‘reach’ for radio & TV
gross rating points
reach (as % of total market) x frequency = commonly used reference number to judge success of campaign
cost per thousand (CPT)
cost of reaching 1000 individuals/households with ad message in a given medium
Advocacy advertisements
– state position of a company on an issue
Pioneering
(informational)
– inform the target market
Pioneering advertisements
– announce what an organization is, what it can do, where it is located, etc.
Competitive (persuasive)
– persuade target market to choose our brand over others
Competitive advertisements
promote the advantages of one product over another
e.g. America’s milk processors & dairy farmers promote milk over other beverages
Reminder
reinforce previous knowledge of product
Developing the Advertising Program
1)Identify the target audience
2)Specify advertising objectives
3)Set the advertising budget
4)Design the advertisement
– message content
– create the message
5)Select the media
– reach & frequency
6)Schedule advertising
7)Pre-test
8)Execute
– full-service agency / limited service agency / in house
10)Post-test
11)Make changes
Media options
1)TV
2)Radio
3)Magazines
4)Newspapers
5)Yellow pages
6)Internet
7)Outdoor
8)Direct mail
TV
communicates with sight & sound; reaches 98.9% US households
very expensive; perishable; complexity hard
Radio
low cost; target specific local audiences; use sound, humor, & intimacy effectively
no visual
Magazines
target specific audiences; high quality color; long life ads; can convey complex info
long lead times; relatively high cost; compete with magazine feature articles
Infomercials
program-length (30-minute) advertisements that provide educational communication to potential customers
e.g. Nutrisystem, Bowflex; highly successful infomercial run by Barack Obama in last presidential campaign – attracted 33.5 million viewers
Radio
is a segmented medium; > 14,000 radio stations in the US
PERSONAL SELLING
2-way communication between buyer & seller, designed to influence the purchase decision
Sales management
planning the selling program, and implementing and evaluating the company’s personal selling effort
Customer sales support
= help sales efforts of order getters
Missionary salespeople
promote products and introduce new products; don’t usually sell directly themselves; especially in pharmaceutical industry
Team selling
cross-functional team work, especially in complex technological situations; specialized knowledge is needed
Closing
getting the order from the customer
Sales quota
specific sales goals assigned to a salesperson, team, branch office, etc, for a stated time period
Sales plan
statement of what sales are to be achieved, and where and how salespeople will be deployed
Key account management
team selling focus on important customers, in order to foster long-term relationship
Emotional intelligence
ability to understand one’s own emotions and the emotions of people with whom one interacts daily
Sales Force Training & Motivation
Sales force Training
Sales force Motivation Compensation
Publicity
non-personal, indirectly paid presentation of an organization, product or service; most frequently-used public relations tool
Publicity tools
methods of obtaining non-personal presentation of an organization, product or service without direct cost; e.g. news releases, news conferences, public service announcements
Advantage
credibility
Disadvantage
lack of control
SALES PROMOTION
short-term incentives to stimulate interest in buying a product or service
Coupon
discounted price encourages consumer trial; 89% US consumers use coupons; they work despite lower revenues
Deal
short-term price reductions to induce trial; e.g. ‘two-fer’ (2 for the price of one)
Premium
merchandise offered free or at significant discount; customers are encouraged to return more often or to use more product
Contest
consumers apply skill to win prizes
Sweepstakes
games of pure chance
Samples
free product or product at greatly reduced price; often used for new products; ‘trial size’ is smaller than regular size
Loyalty programs
tool to encourage repeat purchases by promising rewards as purchases accumulate; credit card reward programs are very successful in the US; rewards customizable
Point of purchase (POP)
free-standing display usually in high-traffic area and usually holding product; designed to maximize exposure and encourage impulse purchases
Rebates
return of money offered on proof of purchase; customer must take time and trouble to apply for rebate by mail; this discourages many customers, so redemption rate is low
Product placements
brand-name products used in movies, TV shows, video games; integration into these shows confers authenticity
Allowances
reimbursement for retail support on proof of performance
Discounts
reduction of price, usually for finite period
Cooperative advertising
manufacturer contributes to retailer’s advertising expenses, often 50%, up to a certain $ limit
Sales force training
manufacturer trains reseller’s sales force, in order to be more effective in selling its products; also participate in incentive and recognition programs
DIRECT MARKETING
using direct communication with carefully targeted individual consumers to generate an immediate response and cultivate long-term customer relationships
Direct orders
result of offers containing all info necessary for prospective buyer to make purchase decision, and complete transaction
Lead generation
result of offer intended to generate interest in product/service, and request additional info
Traffic generation
outcome of offer to motivate people to visit a business
PUSH strategy
directs marketing activities at resellers, to make customer aware at point of purchase, e.g. p.o.p. displays
PULL strategy
encourages the customer to seek out your brand, to stimulate customer demand, e.g. advertising, mass media, word of mouth
AIDA
Awareness,Interest,Desire,Action
Awareness:
Ran a PR campaign four months prior to launch, promoting award, stylists, qualifications etc. and was reinforced through a direct marketing campaign to targeted customer groups.
. Interest
Executed a direct mail campaign to offer a free consultation or hair cut and finish. They used research to support that this would work, as females are loyal if the offer is compelling.
Desire:
Close to the opening of the new salon, they ran exclusive local launch events which was advertised through local press and social media. This created a local buzz for ‘people wanting an invite’ and excited to see the new salon.
. Action
Clear CTAS (calls to action) were positioned on the Facebook site (call to reserve), the website (call to book) and local advertising (call in to receive discount or the offer).
Social Media
online media where users submit comments, photos, videos, often accompanied by a feedback process to identify popular topics