* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Engaging Customers and Communicating Customer Value
Social media marketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Food marketing wikipedia , lookup
Advertising management wikipedia , lookup
Marketing research wikipedia , lookup
Neuromarketing wikipedia , lookup
Product planning wikipedia , lookup
Customer engagement wikipedia , lookup
Sales process engineering wikipedia , lookup
Ambush marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Sports marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Target market wikipedia , lookup
Marketing channel wikipedia , lookup
Digital marketing wikipedia , lookup
Target audience wikipedia , lookup
Viral marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Green marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Multicultural marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Global marketing wikipedia , lookup
Street marketing wikipedia , lookup
Internal communications wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Marketing communications wikipedia , lookup
Principles of Marketing Global Edition Kotler and Armstrong Chapter 14: Engaging Customers and Communicating Customer Value Lecturer: Szilvia Bíró-Szigeti, PhD Department of Management and Corporate Economics Copyright © 2016 Pearson Education, Inc. The Promotion Mix The promotion mix is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. Marketing Promotion Mix Advertising Sales promotion Print ads Broadcast ads Brochures Leaflets Billboards Point-of-purchase displays Symbols and logos Contests Games Lotteries Premiums and gifts Samples Demonstrations Fairs and trade shows Coupons Rebates Personal selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Direct marketing Catalogs Mailings (DM) Telemarketing TV-shopping E-mail Electronic shopping Public Relations Press kits Annual reports Charitable donations Sponsorships Publications Company magazine Events The Promotion Mix Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. • Broadcast Street advertising • Print • Online • Mobile • Outdoor The Promotion Mix Sales promotion is a short-term incentive to encourage the purchase or sale of a product or service. • Discounts When you can not see the forest from tree… • Coupons • Displays • Demonstrations The Promotion Mix Personal selling is the personal interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships. The Promotion Mix Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. The Promotion Mix Direct and digital marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. Integrated Marketing Communications The New Marketing Communications Model • Consumers are changing. • Marketing strategies are changing. • Advances in digital technology They are better informed communications empowered. and more As mass markets have fragmented, marketers are shifting away from mass marketing. More and more, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. Sweeping changes in digital technology are causing remarkable changes in the ways in which companies and customers communicate with each other. Integrated Marketing Communications The Need for Integrated Marketing Communications Integrated marketing communications (IMC) involves carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. Integrated Marketing Communications FIGURE | 14.1 Integrated Marketing Communications A View of the Communication Process FIGURE | 14.2 Elements in the Communication Process Elements in the Communication Process Sender’s field of experience Receiver’s field of experience A View of the Communication Process Elements in the Communication Process Sender: Encoding: Message: Media: Decoding: Receiver: Response: Feedback: Noise: The party sending the message to another party. The process of putting thought into symbolic form. The set of symbols that the sender transmits. The communication channels through which the message moves from sender to receiver. The process by which the receiver assigns meaning to the symbols encoded by the sender. The party receiving the message sent by another party. The reactions of the receiver after being exposed to the message. The part of the receiver’s response communicated back to the sender The unplanned static or distortion during the communication process that results in receivers getting a different message than the one the sender sent. Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives Design the message Choose the media to send the message Select message source and collect feedback Steps in Developing Effective Marketing Communication Identifying the Target Audience What will be said How it will be said When it will be said Where it will be said Who will say it Steps in Developing Effective Marketing Communication Determining the Communication Objectives FIGURE | 14.3 Buyer-Readiness Stages Steps in Developing Effective Marketing Communication Designing a Message AIDA Model • Get Attention • Hold Interest • Arouse Desire • Obtain Action Steps in Developing Effective Marketing Communication Designing a Message Message content is “what to say.” Message structure and format is “how to say it.” Rational appeal relates to audience’s self-interest. the Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase. Moral appeal is directed to an audience’s sense of what is right and proper. Steps in Developing Effective Marketing Communication Choosing Communication Channels and Media Personal communication involves two or more people communicating directly with each other. • Face to face • Phone • Mail or e-mail • Texting or Internet chat Steps in Developing Effective Marketing Communication Choosing Communication Channels and Media Opinion leaders are people whose opinions are sought by others. Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities. Steps in Developing Effective Marketing Communication Choosing Communication Channels and Media Nonpersonal communication channels are media that carry messages without personal contact or feedback, including major media, atmospheres, and events. Video case Which element of the marketing communications mix does OXO most heavily utilize? - Direct marketing When Sam Farber started OXO and launched never-before-seen products that were targeted at people with dexterity problems, in which stage of buyer-readiness was his target market? - Awareness In order to achieve depth of awareness of the OXO brand, which of the following media strategies does the company utilize? - Personal: Social media Which type of message appeal does OXO utilize? - Rational Which budget-setting method does OXO utilize? - Affordable Steps in Developing Effective Marketing Communication Selecting the Message Source The message’s impact depends on how the target audience views the communicator. • Celebrities • Athletes • Entertainers • Professionals • Health care providers Steps in Developing Effective Marketing Communication Collecting Feedback Collecting feedback involves the communicator understanding the effect on the target audience by measuring behavior resulting from the content. Collecting feedback – why is it useful for the company and for the consumer? Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget How does the company decide on the total promotion budget and its division among the major promotional tools to create the promotion mix? • The affordable method sets the promotion budget at the level management thinks the company can afford. Small businesses • The percentage-of-sales method sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. It is simple to use. • It helps management think about the relationship between promotion spending, selling price, and profit per unit. Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget • The competitive-parity method sets the promotion budget to match competitors’ outlays. • Competitor’s budgets represent the collective wisdom of the industry. • Spending what competitors spend helps prevent promotion wars. • The objective-and-task method develops the promotion budget by specific promotion objectives and the costs of tasks needed to achieve these objectives. • Defining specific promotion objectives • Determining the tasks needed to achieve these objectives • Estimating the costs of performing these tasks the most difficult method Shaping the Overall Promotion Mix The Nature of Each Promotion Tool The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times. Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships. Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase. Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events. Direct and digital marketing is an immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telephone marketing, online, mobile, and social media. Marketing Promotion Mix Advertising Sales promotion Print ads Broadcast ads Brochures Leaflets Billboards Point-of-purchase displays Symbols and logos Contests Games Lotteries Premiums and gifts Samples Demonstrations Fairs and trade shows Coupons Rebates Personal selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Direct marketing Catalogs Mailings (DM) Telemarketing TV-shopping E-mail Electronic shopping Public Relations Press kits Annual reports Charitable donations Sponsorships Publications Company magazine Events Shaping the Overall Promotion Mix Promotion Mix Strategies Shaping the Overall Promotion Mix Promotion Mix Strategies • A push strategy involves “pushing” the product through distribution channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotions) toward channel members to induce them to carry the product and to promote it to final consumers. • Using a pull strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product. If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers. Thus, under a pull strategy, consumer demand “pulls” the product through the channels. • Most large companies use some combination of both. Shaping the Overall Promotion Mix Integrating the Promotion Mix The company must take steps to see that each promotion mix element is smoothly integrated. The various promotion elements should work together to carry the firm’s unique brand messages and selling points. The new marketing communications model • Consumers are better informed • More communication - Less mass marketing • Changing communications technology The communications model is shifting from broadcasting to narrowcasting. The Incredible Story Of How Target Exposed A Teen Girl's Pregnancy 25 products that when purchased together indicate a women is likely pregnant. The value of this information was that Target could send coupons to the pregnant woman. Plugged into Target's customer tracking technology, Pole's formula was a beast. Once it even exposed a teen girl's pregnancy: Target’s statistician (Andrew Pole) identified [A] man walked into a Target outside Minneapolis and demanded to see the manager. He was clutching coupons that had been sent to his daughter, and he was angry, according to an employee who participated in the conversation. “My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?” The manager didn’t have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man’s daughter and contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again. On the phone, though, the father was somewhat abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. She’s due in August. I owe you an apology.” http://www.businessinsider.com/the-incredible-story-of-how-target-exposed-a-teen-girls-pregnancy-2012-2 A campaign that follows you A campaign for the „Battersea Dogs Home”, who are trying to get people to adopt Dog’s and Cats from their shelter. https://www.youtube.com/watch?v=V6sBUcVSYTg http://www.digitalbuzzblog.com/battersea-dogs-home-looking-for-you-smart-billboards/ Product life-cycle stages and communication mix (Kotler 2012, 273) Introduction: advertising has the highest cost effectiveness, followed by personal selling and sales promotion. Growth: all the tools can be toned down, demand has its own momentum through word of mouth. Maturity: sales promotion, advertising and personal selling all grow more important in this order. Decline: sales promotion continues strong, advertising and publicity are reduced and sales people give the product only minimal effort. Socially Responsible Marketing Communication Advertising and Sales Promotion • Communicate openly and honestly with consumers and resellers • Avoid deceptive or false advertising • Avoid bait-and-switch advertising • Conform to all federal, state, and local regulations Socially Responsible Marketing Communication Personal Selling • Follow rules of “fair competition” • Do not offer bribes • Do not attempt to obtain competitors’ trade secrets • Do not disparage competitors or their products https://www.commonsensemedia.org/zero-toeight-2013-infographic Dove Campaign for Real Beauty The Dove Campaign for Real Beauty is a worldwide marketing campaign launched by Unilever in 2004 that includes advertisements, video, workshops, sleepover events and the publication of a book and the production of a play. The aim of the campaign is to celebrate the natural physical variation embodied by all women and inspire them to have the confidence to be comfortable with themselves. https://en.wikipedia.org/wiki/Dove_Campaign_for_Real_Beauty • Only 4% of women around the world consider themselves beautiful (up from 2% in 2004) • Only 11% of girls globally are comfortable using the word beautiful to describe themselves • 72% of girls feel tremendous pressure to be beautiful • 80% of women agree that every woman has something about her that is beautiful but do not see their own beauty • More than half (54%) of women globally agree that when it comes to how they look, they are their own worst beauty critic SOURCE: Dove Research: The Real Truth About Beauty: Revisited http://www.dove.us/Social-Mission/Self-EsteemStatistics.aspx • • • • different reactions popular financial success increased women’s confidence https://www.youtube.com/watch?v=Q5qZedMTkkE Once uploaded, the advert was viewed over 40,000 times in its first day, 1.7 million times within a month of its upload, and 12 million times within its first year. https://www.youtube.com/watch?v=9zKfF40jeCA Read more: http://www.dove.us/Social-Mission/campaign-for-real-beauty.aspx, http://www.newsgeneration.com/2014/04/11/prcase-study-dove-real-beauty/ Victoria’s Secret: The prefect „body” http://www.buzzfeed.com /rossalynwarren/victoriassecret-appears-to-havechanged-its-controversialp#.tw3GQXvx6, https://www.change.org/ p/victoriassecretapologise-for-yourdamaging-perfect-bodycampaign-iamperfect Engaging Customers and Communicating Customer Value • Define the five promotion mix tools for communicating customer value. • Discuss the changing communications landscape and the need for integrated marketing communications. • Outline the communication process and the steps in developing effective marketing communications. • Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Case study – Marketing-mix • Present: you can read… • Future: please imagine it! • If you are the marketing manager of the company… • If you can change (in realistic board) the product line, the pricing strategy, the promotion tools and place decisions… • How will look like this company in 10 years later? And its consumers? (please use the STP analysis)