Marketing 420 Final

History of Brand Promotion
-Rise of Capitalism
-Industrial Revolution
-Branding
-Mass Media
Promotion through the Ages
-Economy and Income
-Political Events and Regulations
-Technological Innovations
Promotional Industry Trends
1) Narrower Media Control
2) Media Clutter
3) Consumer Control
4) Web 2.0
STP Marketing
Who (they need to advertise to)
What (Value proposition)
How (plan to reach them)
**Develop a strategy through Segmenting, Targeting and Positioning
Target Segment
Subgroup (of the target market) chosen as the focal point for the marketing program and ad campaign
Positioning
Process of designing and representing one’s product or service so that it will occupy a distinct and valued place in the target consumers mind
Strategy
The key themes of concepts that an organization features when communicating product or services distinctiveness to a target segment
Identifying Target Segments
Segment by usage and commitment
4 Fundamental Segment Types
1) Non-Users
2) Brand Loyal
3) Switchers/Variety Seek.
4)Emergent Consumers
Segment By:
Demographics, Psychographics, Geography, Benefits, Business Buyers (Consumer vs. Business)
*Feasible and Attractive
Positioning Themes
-Benefit (functional, emotional, value)
-User
-Competitive
Behavioral Segmentation
Dividing customers based on how they act toward, feel about or use a good/service
Targeting Criteria
Feasibility-customer needs=company resources
Attractiveness-size and growth
ABC’s of Positioning
Assess the market position
Be different
Communicate the differences
Consumer Behavior
Activities and decision processes directly involved in obtaining, consuming and disposing of products and services
Need State
Arises when one’s desired state of affairs differs from one’s actual state of affairs
Need Recognition
Info search and alternative evaluation–> Purchase–> Post Purchase Use
***Functional and Emotional Benefits
Internal Search
Search for product info that draws upon personal experience and prior knowledge
Consideration Set
Subset of brands from a product category that becomes the focal point of a consumers’ evaluation
Evoked Set
The set of brands (2-5) that come to mind when a category is mentioned
External Search
Gathering product info by visiting retail stores to examine alternatives, seeking input from friends/family or pursuing professional product evaluations
Customer Satisfaction
Good feelings that come from a favorable post purchase
Cognitive Dissonance
Anxiety or regret that lingers after a difficult decision
Modes of Decision Making
1) Extended
2) Limited
3) Brand Loyal
4) Habit or Variety Seeking
Attitude
Overall evaluation of any object, person or issues that varies along a continuum
Beliefs
A person’s knowledge and feelings about competitive brands
Multi-Attribute Attitude Models (MAAMS)
Provide a framework and set a research procedures for collecting information from consumers to assess their salient beliefs and attitudes about competitive brands
1) Evaluative Criteria 2) Importance Weights 3) Consideration Set 4) Beliefs
Elaboration Likelihood Model (ELM)
Motivated to process? Ability to process?
Central vs. Peripheral Cues
Involvement
Degree of perceived relevance and personal importance accompanying the choice of a product/service in a particular context
Product Choice
Understand choice heuristics used and provide communications that encourage brand decision
Attitude Basics
Affect-emotional reactions
Behaviors-what do you do
Cognitions-What you think
Consumer Culture
The lens through which we view the world (values, rituals etc)
Dynamic, Shared or Learned
Global Market Variables
Economic Conditions
Demographics
Values
Customs/Rituals
Product Use and Preferences
Global Market “Ojitos”
-Challenge ethnocentrism and self-reference criterion: you judge things based on your own cultural upbringing/perspective
-Humor and Language
-Media: Understand regulations
-Globalized vs. Localized
Good vs. Bad Creativity
-Unexpected and innovative elements
-Alignment with company’s culture and brand
-Distinct from company’s past communications
-Memorable and enhances knowledge of company/brand/product
-Doesn’t overpower the message/brand
Principles of Persuasion
-Reciprocity
-Scarcity
-Authority
-Consistency
-Liking
-Consensus
Traditional Advertising
A paid, mass mediated attempt to persuade
Goals: Persuade, build awareness (especially brand), delayed reaction
Advantages: Reach a mass audience, cost per exposure is cheaper, effective, control
Disadvantages: messages can offend people, consumers can opt out, metrics are difficult to track
Source Decisions
1) “Newness” of product
2) Meanings you want to convey
3) Non-Human
4) Type of Product: Utilitarian products (high performance risk-experts) Value (expressive, high social risk-celebs) Everyday products (low risk-“typical” customer)
Measuring Effectiveness of Advertisements
1) Imparting Knowledge
2) Shaping Attitudes
3) Attaching Emotions
4) Legitimizing the brand
Testing
Pretest Evaluations
Pilot Testing
Post Testing
To have the best chance at going viral, THOU SHALT
1) Create a message w/ social value
2) Develop an advertisement where the creative execution is: memorable, intriguing and original/different/unique
3) Place your Offline Component in highly trafficked areas
4) Incorporate your buzz/viral component into your broader IMC Campaign and across social media platforms
5) Consider possible audiences who might “help” your video go viral and invite them directly to view
Issues with viral marketing
-How (much) to incorporate your brand
-How to NOT make it seem like you “want” to go viral
-How to convert views into visits/sales
Characteristics of the Internet in IMC
-Can be the storefront for smaller business
-Supplement to traditional media and storefronts
-High interactivity and co-creative capabilities
-Constantly “connected”
-Spreadable
-Casual Conventions
-Young(er) Audiences
-Low(er) promotional costs
-Tracking capabilities
-Target Market Selectivity
Online Communication Goals
-Increased Awareness
-Increased Engagement
-Enables in-depth info sharing
-Increased Sales
Designing Websites
-Highlight promos
-Highlight Content
-TABs and Organization
-Brand (personality and values)
Product Placement
Pay to place product/brand into someone else’s media vehicle. Pros
Elements for Product Placement success
1) Authenticity
2) Visibility
3) Connection w/ desirable celeb
4) Target market alignment
5) IMC integration (social media, cross-promotion, press release)
Types of Product Placement
1) Peripheral
2) Storyline
3) Infomercial
Branded Entertainment
Marketer creates the vehicle/has entire control (help develop a new brand, introduce brand into new market)
Sponsorship
Goals: awareness, attitudes, sales
Rights: lawyers are involved, more sponsors/detailed contract
Metrics: Enough media impressions, stronger brand loyalty, targeted consumers in audience
Types: Event, Sports, Blogs
Social Media vs. Traditional Advertising
Internet users will attend to messages more naturally. Brand messages come across more a part of everyday life and not as corporate manipulation
Public Relations
Foster goodwill between a firm and its consitutent groups (customers, stockholders, suppliers)
TODAY: PR involves the many ways to get a brand into the day-to-day conversations of key consumers. DAMAGE CONTROL
PR Objectives
1) Promote Goodwill
2) Promote Product
3) Preparing internal communications
4) Countering Negative Publicity
5) Lobbying
6) Giving Advice and Counsel
PR Tools
-Press Releases
-Feature Stories
-Company Newsletters
-Interviews and Press Conferences
-Sponsored Events
-Publicity “free” media exposure
PR Strategies
1) Proactive: Guided by marketing objectives, seeks to publicize a company and its brands and takes an (offensive) rather than a defensive approach
2) Reactive: Dictated by influences outside the control of a company, focuses on problems to be solved rather than on opportunities (defensive)
Influencer Marketing
Systematic seeding of conversations between an influencer and other consumers about our brand
Power of Influencers
-Referent: individuals with cultural capital “cool”
-Information: someone has info that you want, so you listen
-Expert
-Legitimate: power when acting in their roles (teachers, parents, police)
-Reward: ability to give a reward for actions
-Coercive: punishment for bad behavior
Brand Ambassador/Campus Rep
Goals: One-on-one communication, raise awareness
Ideally for: Start-ups, companies whose target market is students
Risks: Rep isn’t doing what they should
Cause-Related Marketing
1) Match between cause and company
2) Programs structure and partners: contribution structure
3) Advertising and Contributions
4) Timeline and Goals: Consider the persuasion concept of scarcity, but make sure you give enough time to raise money
Direct Marketing
Interactive marketing system that uses multiple media to generate a transaction or other measurable response at any location
Databases
-Quantify the amount of business done with best customers
-Relationship development
-Reward Customers
-Cross-Selling
-Finding like customers
Frequency Programs
Increased return visits, loyalty, sales, build relationships
Components
-Database
-Communications Strategy: communicating about the program to potential members subsequent communications to current members
-Reward Incentives
Characteristics of successful frequency programs
Attainable rewards, frequency of rewards, desirable rewards, easy to sign-up, good communications, personalization of communications
When to use frequency programs
-High # of competitors
-Hard to build a competitive advantage
-Frequent Purchases
-Want to turn habit/variety seeking or limited purchasing consumers into brand loyalists
Direct Mail and Catalogs
Pros: tailor message to customer, test an experiment, send variety of formats, impact is measured
Cons: Cost, bad info, cluttered, unpredictable delivery dates
Role of Sales Promotion
Use of incentive techniques that create a perception of greater brand value among consumers, the trade and business buyers
3 Categories of Sales Promotion
1) Consumer-Market: includes methods of inducing household consumers to purchase a firms brand rather than a competitors
2) Trade-Market: Aimed at motivating distributors, wholesalers and retailers to stock and feature a firms brand in their store
3) Business-Market: Designed to cultivate buyers in large corporations who are making purchase decisions about a wide-range of products
SP vs. Marketing
Primarily aimed at eliciting an immediate purchase from a customer group
Role of Sales Promo
-Stimulates short term demand
-Encourages brand switching
-Endues trial use
-Promotes price orientation
Growing use of sales promotion
-Demand for greater accountability
-Short-Term orientation
-Consumer response to promotions
-Proliferation of brands
-Increased power of retailers
-Media clutter
Objectives (SP)
-Stimulate trial purchase
-Stimulate repeat purchase
-Introduce a new brand
-Contribute to integrated marketing communication
-Combat or disrupt competitors strategies
-Stimulate larger purchase
Risks (SP)
Offers attractive enough to create excitement cut into profits, low paying customers crowd out more profitable ones, consumers control the timing of redemption
Coupon
entitles a buyer to a designated reduction in price for a product or service
Price-off deals
offers consumers money off merchandise @ point of purchase
Premiums
Items offered free or at a reduced price with purchase of another item 1)free-items at no cost
2)self-liquidating-require to pay most of item
Advertising Specialty
A message placed on useful items given to consumer with no obligation
Contest
Consumers compete for prizes based on change
Sampling
provides consumers with an opportunity to use a brand on a trial basis with little to no risk
Rebate
money back offer require the money back from a manufacturer
Point of Purchase (POP) Advertising
Ads that appear in a retail setting
Objectives: draw consumers attention to a brand in a retail setting, maintain purchase loyalty among brand-loyal users, stimulate increased or varied usage of brand, stimulate trial use by users of competitive brands
**Combines consumer, communication and product
Personal Selling Knowledge Checklist
1) Knowledge of customers
2) Knowledge of company and topic
3) Knowledge of persuasive selling techniques and influences
Techniques of Selling
1) Foot-in-Door
2) Door-in-the-Face
3) Low Balling
4) Bait and Switch (illegal)
Commission Salary
-Team Selling: want people to work together
-Highly skilled job: commission motivates them to learn
-Long time period to make sale: motivates them to stick with it
Ethics Issues
-Truth vs. Puffery vs Deception
-Children
-Controversial Products
Effects of Ethical Missteps
Negative attitude towards company and marketing overall
Traditional “Interruption” Communication Model
(one-way communication)
Marketer: Create prepackaged messages, maximize reach, frequency
Consumer: Allow interruption, passively view advertising, get free/low cost media programming
Web 2.0 Communication Model
(two-way communication)
Marketer: Deliver opportunities for digital self-expression, brand co-creation, maximize receptivity and engagement
Consumer: Brand co-creation and P2P sharing, live a socially connected digital life
Objectives of Social Media
-Increased awareness (of marketing campaigns)
-Increased engagement
-Building relationships
-Increase/reward loyalty
Role of Social Media Platforms
-Inform
-Engage
-Customer Service
Measuring effectiveness of social media
volume, sentiment, awareness, attention, reach, sales, individualized measures of engagement (likes, re-tweets, pins, followers, comments, shares)
Audiences to consider for Social Media
Loyal customers, resentful customers, various detractors, activist groups, employees, the media, general public, competitors
Effective Social Media Campaign
Principles of Persuasion, Interactivity, Incentive, IMC integration, education, easy, brand-related, creative, one message, planning
Designing a better twitter campaign
-Planning stage
-Execution stage (educate, provide more active real time monitoring, don’t switch hashtag and don’t utilize twitter promoted trends)
-Dealing with unruly consumers stage (accept that it is impossible to eliminate all the negative comments, focus on engaging in positive conversations)
Strategies for encouraging better media relations and accurate reporting
-Think like a reporter
-Make a priority list that identifies who the most important media sources are
-Offer exclusive interviews with sources that have typically not been used in the past
-Build positive relationships with contacts in the media
-Maintain the same policy for dealing with the media in good times and bad times