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13.12.2016 Learning Objectives 1. What is the role of marketing communications? 2. What is the marketing communications mix? 3. How do marketing communications work? 4. 5. Designing and Managing Integrated Marketing Communications Copyright © 2016 Pearson Education, Inc. 18-1 The Role of Marketing Communications What is an integrated marketing communications program? Copyright © 2016 Pearson Education, Inc. • Advertising • Sales promotion • Events and experiences • Public relations and publicity – The means by which firms attempt to inform, persuade, and remind consumers about the products and brands they sell 18-3 Common Communication Platforms Copyright © 2016 Pearson Education, Inc. How should the communications mix be set and evaluated? 18-2 Marketing Communications Mix • Marketing communications Copyright © 2016 Pearson Education, Inc. 6. What are the major steps in developing effective communications? • Online and social media marketing • Mobile marketing • Direct and database marketing • Personal selling Copyright © 2016 Pearson Education, Inc. 18-4 Figure 19.1 Elements in Communications Process 18-5 Copyright © 2016 Pearson Education, Inc. 18-6 1 13.12.2016 Figure 19.2 Response Hierarchy Models Micromodel of Consumer Responses • With an ideal ad campaign: 1. The right consumer is exposed to the message at the right place and time The ad causes the consumer to pay attention The ad reflects consumer’s level of understanding of brand The ad positions points-of-difference and points-of-parity The ad motivates consumers to consider purchase The ad creates strong brand associations 2. 3. 4. 5. 6. Copyright © 2016 Pearson Education, Inc. Copyright © 2016 Pearson Education, Inc. 18-7 Developing Effective Communications 18-8 Developing Effective Communications • Identify the target audience • Set the communications objectives – – – – Copyright © 2016 Pearson Education, Inc. 18-9 Developing Effective Communications Establish need for category Build brand awareness Build brand attitude Influence brand purchase intention Copyright © 2016 Pearson Education, Inc. 18-10 Creative Strategy • Informational appeals • Design the Communications – One-sided vs. two-sided arguments • Transformational appeals Message strategy – Negative/fear vs. positive appeals Creative strategy Message source Copyright © 2016 Pearson Education, Inc. 18-11 Copyright © 2016 Pearson Education, Inc. 18-12 2 13.12.2016 CARLS JR. BURGERS Copyright © 2016 Pearson Education, Inc. 18-13 Copyright © 2016 Pearson Education, Inc. 18-14 Copyright © 2016 Pearson Education, Inc. 18-15 Copyright © 2016 Pearson Education, Inc. 18-16 Message source DOVE REAL BEAUTY CAMPAIGN • Messages delivered by attractive or popular sources can achieve higher attention and recall Copyright © 2016 Pearson Education, Inc. 18-17 Copyright © 2016 Pearson Education, Inc. 18-18 3 13.12.2016 Developing Effective Communications Establish the Marketing Communications Budget • Select the communications channels – Personal communications – Nonpersonal channels Copyright © 2016 Pearson Education, Inc. Selecting the Marketing Communications Mix • • • • • • • • 18-20 Marketing Communications Mix Characteristics • Advertising Advertising Sales promotion Events and experiences Public relations and publicity Online and social media marketing Mobile marketing Direct and database marketing Sales force Copyright © 2016 Pearson Education, Inc. Copyright © 2016 Pearson Education, Inc. 18-19 – Pervasiveness (Yagın olma) – Amplified expressiveness – Control • Sales Promotion – Ability to be attention-getting – Incentive – Invitation Copyright © 2016 Pearson Education, Inc. 18-21 Marketing Communications Mix Characteristics 18-22 Marketing Communications Mix Characteristics • Events and experiences • Online and social media marketing – Relevant – Engaging – Implicit – Rich – Interactive – Up to date • Public relations and publicity • Mobile marketing – High credibility – Ability to reach hard-to-find buyers – Dramatization Copyright © 2016 Pearson Education, Inc. – Timely – Influential – Pervasive 18-23 Copyright © 2016 Pearson Education, Inc. 18-24 4 13.12.2016 Marketing Communications Mix Characteristics Setting the Marketing Communications Mix • Direct and database marketing • Type of product market – Personal – Proactive – Complementary – Consumer vs. business marketers – Advertising/sales promotion vs. personal selling • Personal selling – Customized – Relationship-oriented – Response-oriented Copyright © 2016 Pearson Education, Inc. • Product life-cycle stage 18-25 Setting the Marketing Communications Mix Copyright © 2016 Pearson Education, Inc. 18-26 Measuring Communication Results • Buyer-readiness stage Copyright © 2016 Pearson Education, Inc. 18-27 Managing Integrated Marketing Communications Copyright © 2016 Pearson Education, Inc. 18-28 WHAT IS SALES PROMOTION ? • Integrated marketing communications (IMC) Sales promotion is a mass communication technique – “A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time” that offers short-term incentives to encourage purchase or sales of a product or service. Offers Reasons to Buy Now. Copyright © 2016 Pearson Education, Inc. 18-29 Copyright © 2016 Pearson Education, Inc. 30 18-30 5 13.12.2016 RAPID GROWTH OF SALES PROMOTION SALES PROMOTİON OBJECTİVES • Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions. • Rapid growth in the industry has been achieved because: – Product managers are facing more pressure to increase their current sales, – Advertising efficiency has declined, 18-31 Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts Copyright © 2016 Pearson Education, Inc. 33 18-33 COUPON Copyright © 2016 Pearson Education, Inc. carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead. Copyright © 2016 Pearson Education, Inc. 32 18-32 34 18-34 36 18-36 SAMPLE MAJOR CONSUMER SALES PROMOTION TOOLS Sample • Get retailers to: • In general, sales promotion should focus on consumer relationship building. – Consumers have become more deal oriented. 31 – obtaining trial and purchase – increasing consumption of established brand – defending current customers – – – – – Companies face more competition, Copyright © 2016 Pearson Education, Inc. • Increase short-term sales or help build long-term market share. Copyright © 2016 Pearson Education, Inc. PRICE PACKS 35 18-35 Copyright © 2016 Pearson Education, Inc. 6 13.12.2016 ADVERTISING SPECIALTIES PREMIUMS Copyright © 2016 Pearson Education, Inc. 37 18-37 MAJOR CONSUMER SALES PROMOTION TOOLS Copyright © 2016 Pearson Education, Inc. 38 18-38 PATRONAGE REWARDS Patronage Rewards Cash or other rewards for the use of a certain product Point-of-Purchase Displays and demonstrations that take place at the point of sale Contests Consumers submit an entry to be judged Sweepstakes Consumers submit their names for a drawing Game Presents consumers with something every time they buy Copyright © 2016 Pearson Education, Inc. 39 18-39 Copyright © 2016 Pearson Education, Inc. 40 18-40 Copyright © 2016 Pearson Education, Inc. 41 18-41 Copyright © 2016 Pearson Education, Inc. 42 18-42 7 13.12.2016 MAJOR TRADE SALES PROMOTİON TOOLS Trade-Promotion Objectives TRADE SHOWS Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand • Trade shows can be considered – A highly cost-effective mechanism – for meeting a large number of potential suppliers and customers – in a short span of time in one location Discounts Give a Brand Shelf Space Promote a Brand in Advertising Allowances Push a Brand to Consumers Copyright © 2016 Pearson Education, Inc. 43 Copyright © 2016 Pearson Education, Inc. 18-43 TRADE SHOWS TRADE SHOWS • Selling motives – – – – – • Non-selling motives Enhancing and maintaining company profile Establishing relationships with potential new customers Developing existing relationships with customers Actual sales at trade shows Testing new product ideas Copyright © 2016 Pearson Education, Inc. 18-44 18-45 TRADE SHOW EFFECTIVENESS – – – – Providing information about new products Providing market information Providing information about competitors Enhancing and maintaining morale of company employees – Enhancing and maintaining morale of customers – Finding new sources of supply Copyright © 2016 Pearson Education, Inc. 18-46 WHAT IS PUBLIC RELATIONS? • (1) preshow activities (i.e. identifying and formulating objectives, planning); • (2) trade show activities (i.e. behaviour and quality of booth personnel, identifying buyer needs, recording buyer name and position); • (3) post-show activities (i.e. visiting or calling customers/potential customers identified at the show, assessing trade show performance). 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. Copyright © 2016 Pearson Education, Inc. 18-47 Copyright © 2016 Pearson Education, Inc. 48 18-48 8 13.12.2016 MAJOR PUBLİC RELATİONS FUNCTİONS MAJOR PUBLIC RELATIONS TOOLS News Press Relations or Agentry Product Publicity Public Affairs Web Site Public Relations Departments May Perform Any of All of the Following Functions: Speeches Public Service Activities Special Events Corporate Identity Materials Lobbying Investor Relations Audiovisual Materials Written Materials Development Copyright © 2016 Pearson Education, Inc. 49 INTERNATIONAL CRISIS MANAGEMENT Copyright © 2016 Pearson Education, Inc. Copyright © 2016 Pearson Education, Inc. 18-49 18-50 BP CRISIS • • 18-51 on April 20, 2010 an undersea BP oil well exploded in the Gulf of Mexico 40 miles off the Louisiana coastline, killing 11 workers on the Deepwater Horizon rig and causing one of the worst environmental disasters in US history. Copyright © 2016 Pearson Education, Inc. 18-52 Discussion Question If you were responsible for marketing an anti-aging cream, WHAT EVENTS OR CAUSES WOULD YOU CHOOSE TO SPONSOR (LOCAL OR NATIONAL)? WHY? Copyright © 2016 Pearson Education, Inc. 53 18-53 9