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WEEK 11: CUSTOMER COMMUNICATION BUSN 102 – Özge Can 2 Mad Men – What is advertising? http://www.youtube.com/watch?v=N7w2bbBRBRA http://www.youtube.com/watch?v=cT0d-ISXH5Q New Approach to Customer Communication: 16-3 Social Communication Model An approach to communication based on interactive social media and conversational communication styles The Social Communication Model: 16-4 Customer Communication Strategy: 16-5 1. Establish clear communication goals 2. Define compelling messages to help achieve them 3. Outline a cost-effective communication mix (“media mix” or “promotional mix”) to engage target audiences 1. Clear Communication Goals 16-6 Generating awareness Providing information and creating positive emotional connections Building preference Stimulating action Reminding past customers 2. Defining Customer Messages 16-7 Core Message: The single most important idea an advertiser hopes to convey to the target audience about its products or the company Expressed in a single sentence Companies having less control of their messages 3. Assembling the Communication Mix 16-8 Communication Mix: A blend of communication vehicles— advertising, direct marketing, personal selling, sales promotion, social media, and public relations—that a company uses to reach current and potential customers The best mix depends on: product, market and distribution channel factors 9 3. Assembling the Communication Mix 16-10 Push Strategy A promotional strategy that focuses on intermediaries, motivating them to promote, or push, products toward end users Pull Strategy A promotional strategy that stimulates consumer demand via advertising and other communication efforts, thereby creating a pull effect through the channel 3. Assembling the Communication Mix 16-11 Integrated Marketing Communications (IMC) A strategy of coordinating and integrating communication and promotion efforts with customers to ensure greater efficiency and effectiveness Maximizing message clarity and consistency of the Message Integration in Customer Communication: 16-12 Communication Laws and Ethics 16-13 Marketing and sales messages must be truthful and non-deceptive You must back up your claims with evidence “Bait and switch” advertising is illegal – marketing and sales messages are considered binding contrasts Marketing messages and websites aimed at children are subject to special rules You can’t use a person’s name, photo or other identity without permission Consumer privacy – behavioral targeting Advertising 16-14 Advertising The delivery of announcements and promotional messages via time or space purchased in various media Product adversiting Comparative advertising Institutional advertising Advocacy advertising Advertising 16-15 Institutional Advertising Advertising that seeks to create goodwill and to build a desired image for a company, rather than to promote specific products Advocacy Advertising Advertising that presents a company’s opinions on public issues such as education or health care Advertising Appeals 16-16 Advertising Appeal A creative tactic designed to capture the audience’s attention and promote preference for the product or company being advertised Seven basic appeals: Logic, emotion, humor, celebrity, sex, music, scarcity 17 Psychology and Advertising: http://www.youtube.com/watch?v=EC7VLjIw8hY Advertising Media 16-18 Advertising Media Communication channels, such as newspapers, magazines, radio, television, fixed web, mobile web, and product replacement Media Mix A combination of print, broadcast, online, and other media used for an advertising campaign 19 Advertising Media 16-20 Two particular trends for the near future: The blurring boundaries between advertising, entertainment and value-added content Technical innovations creating new advertising tools and techniques (E.g. behavioral targeting methods, sophisticated tracking and pricing methods, hybrid media) Direct Marketing 16-21 Direct Marketing Direct communication other than personal sales contacts designed to stimulate a measurable response Mail, email, search engine marketing, direct response online, telephone, direct response television Personal Selling 16-22 Personal Selling One-on-one interaction between a salesperson and a prospective buyer The Personal-Selling Process 16-23 Sales Promotion 16-24 Sales Promotion A wide range of events and activities designed to promote a brand or stimulate interest in a product 1) Customer promotions 2) Trade promotions 1) Consumer Promotions 16-25 Coupons Printed or electronic certificates that offer discounts on particular items and are redeemed at the time of purchase Rebates Partial reimbursement of price, offered as a purchase incentive Premiums Free or bargain-priced items offered to encourage consumers to buy a product 1) Consumer Promotions 16-26 Point-of-Purchase (POP) Display Advertising or other display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions Specialty Advertising Advertising that appears on various items such as coffee mugs, pens, and calendars, designed to help keep a company’s name in front of customers 2) Trade Promotions 16-27 Trade Promotions Sales-promotion efforts aimed at inducing distributors or retailers to push a producer’s products Trade Allowances Discounts or other financial considerations offered by producers to wholesalers and retailers Social Media and Public Relations 16-28 Social Media: Any electronic media that transforms passive audiences into active participants in the communication process by allowing them to share content, revise content, respond to content, or contribute new content http://www.youtube.com/watch?v=0eUeL3n7fDs http://www.youtube.com/watch?v=Vqb8nKbOo- c&feature=endscreen&NR=1 Social Media and Public Relations 16-30 Word of Mouth Communication among customers and other parties, transmitting information about companies and products through online or offline personal conversations Social Media and Public Relations 16-31 Conversation Marketing An approach to customer communication in which companies initiate and facilitate conversations in a networked community of potential buyers and other interested parties Social Media and Public Relations 16-33 Brand Communities Formal or informal groups of people united by their interest in and ownership of particular products Public Relations 16-34 Public Relations: Non-sales communication that businesses have with their various audiences (including both communication with the general public and press relations) Public Relations 16-35 Press Release (News Release) A brief statement or video program released to the press announcing new products, management changes, sales performance, and other potential news items Press Conference (News Conference) An in-person or online gathering of media representatives at which companies announce new information