Week 6 Flashcards
(21 cards)
4Ps - Promotion - Steps of Marketing Communication
Promotions are important because if the consumer does not know about the product, they obviously won’t buy it. So, promotion and marketing communication involves making consumers aware, creating an identity brand and persuading consumers to buy your products.
(1) Isolate the communication problem to be solved
(2) Identify the relevant target population and their characteristics
(3) Define the marketing communication objective
(4) Select the advertising themes and the creative strategy
(5) Design a media plan
(6) Implement and monitor the advertising campaign
Marketing
Communication Objective
(a) Creating brand awareness (b) Build brand image (c) Inform (d) remind/educate people of the product (e) break into the new market (f) change/reinforce attitudes (g) stimulate trial (h) get into purchase consideration sets (i) regain lost customers (j) regain lost customers (k) obtain information (1) re-position (m) increase usage
Push vs Pull strategies
Push → you push the product towards the customer. Make a seller/retailer stock your products, indiscriminate ads, sales promotions, incentives for the reseller. The aim is to create demand by promoting it to as many people as possible. This technique is used more for new products and new consumers.
Pull → Anything that makes customers demand the product from the seller/retailer. The main aim is to create brand awareness and loyalty and to encourage customers to seek out the product or service on their own. Coca-Cola does this for example as they have an established customer base.
AIDA model
Getting attention step 1: Types of Media for attention
(1) Paid media = any marketing effort that involves paying to display promotional content across social media, search engines or websites
(2) Owned media = a digital content that your company creates, including a website, blogs, emails, and social media posts (e.g the monthly emails that you’re subscribed to from a store you like) (3) Earned media = a public exposure through word of mouth, customer reviews, social media mentions, or media coverage resulting from your content or services’ quality and relevancy.
→ In the diagram on the right, you can see that you don’t need to just use one but you can do multiple versions too, they all interlink.
How to get attention step 2: Choosing the right format
Step 3: be
remembered (pics)
Are you going to place your advertisement/market strategy on TV? Cinemas? News papers? Spotify? Sports events? Websites? Social media? Billboards? Make a viral challenge?
You can really think outside of the box by doing things indoor/outdoor, have sponsored magazines, in-game ads, advergames or challenges.
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You can also have celebrities endorse the products as a lot of us look up to them or remember ads more if we see a familiar face!
→
Furthermore, try being unique so that people can remember your ad as well (see pictures on the right)
How to get attention step 4: test before launch with A/B testing
= compares 2 versions of a
product/website/app/marketing/message to see which one
performs better.
→ On the right you have an example of this where a website tests whether a blue button or a green button gets more clicks.
→ Companies such as Facebook, Amazon, Google and Netflix run 10k experiments like these every year
How to get attention step 5: Be consistent with Integrated Marketing Communication (IMC)
→ A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service or organisation are relevant to that person and consistent over time → A well-coordinated use of different promotional methods that are intended to reinforce each other
→ All communication channels should be consistent in message and designs! You can’t have too many messages/slogans/vibes at the same time otherwise it becomes confusing. You should be consistent as you want your message to be similar so that the audience doesn’t forget it and recognizes it.
Overview steps on
how to get attention:
(1) Think about different sources of media attention (2) Choose the right format/place
(3) Aim to be remembered (4) Test before Launch
(5) Be consistent
(6) Think about cultural differences
Place
=A way to bring together sellers and buyers, products and needs to be fulfilled. Place also includes all the activities of getting the goods from the point-of-origin to point-of-sale. You need to get the right product to the right place at the right time. The 2 big aspects of place include distribution and design
Channel-Distribution
A supply chain is a network of businesses and organisations through which goods pass to their final destination. A distribution channel is a product’s route through that supply chain
Direct vs Indirect distribution
Direct = allows consumers to buy and receive goods directly from the manufacturer eg Nike shoes buying directly from the Nike store, + Capture most of the price but - high cost and responsibility (selling, distributing, payment)
Indirect = moves products from the manufacturer through various intermediaries for delivery to the customer eg buying Nike shoes through Amazon or Bol.com + low marketing and sales expenses, - lower net price
→ But how do you decide on which distribution method to use?
The design of the supply chain has a strategic management function which it tries to achieve Effectiveness → minimise risk at each step
Economy → minimise costs at each step
Efficiency → Be at the right place at the right time
Sustainability → Protect the environment
Channel Conflicts!!
The lighting bolts symbolize the conflicts that can occur. The more channels there are the higher the chance that there might be times where not everyone gets along and where there are disagreements on how things are done
Warning! Channel Viability
What works in your home country doesn’t necessarily work in a new market so we should always consider (a) consumer preferences (b) culture © competition (d) coverage (e) capital/cost (f) control
SOR model
(Mehrabian & Russel)
Stimulus → organism → response model
→ affects behavior
The model tries to explain that behaviour is a reaction on a stimulus, influenced by the person Stimuli comes in→ External factors will influence the person to behave in a certain way There are 3 emotional states: pleasure, arousal and dominance which are combined and mixed together to create certain behavior.
There are 2 behaviours that can come out: approach & avoidance behaviour
Approach = staying longer in a shop, talking to people, buying things Avoidance = being defensive to the staff, leaving w/o buying.
Stimulus: external factors that trigger a response form an individual
Organism: The individual who perceives and responses to the stimuli
Response: Behavioural, emotional
or cognitive reaction that organism exhibits in response to the stimulus
Bitner’s servicescape model
= A framework to understand how the
physical environment influences customers’
perceptions and
experiences in service
settings Environmental dimensions:
→ Ambient conditions
(everything that links to
your 5 senses eg tactile, vision, taste etc)
Space function (the
layout, colour and design of a space such as an office)
Signs and Symbols (give a direct symbolism of what something looks like, like a scissor symbol in front of a hairdresser shop)
Behaviour
are you going to enter the store and look around? Are you going to talk to the worker there? Are you going to look around and leave to buy at another store? If you buy, will you leave a positive review?
Ex. Apple or Starbucks have very universal layout, workers with the same uniform, building looking the same with the same procedure
Pricing
= The money charged for a product or service
→ Willingness to pay = the maximum amount a person would be willing to offer for a good
→ Willingness to accept = the minimum amount a person is willing to accept to forgo some good
→ Price is the money charged for a product or service. Price is everything that a consumer has to give to acquire a product or service
International pricing strategies BIG 5
› Competition (can vary significantly per country)
→ Customer and culture (monetary vs non-monetary price, price and quality perception & price and the internet)
→
Product (production costs)
Distribution channel factors (price escalation due to length or channel)
→ Country factors (GDP per capita, currency/inflation, government regulations)
Pricing is not objective??? :O
Not everyone has a price tag (like a flea market or babysitting, theres no definitive price and is negotiable) Price is therefore subjective because of reference price
Other things are involved in pricing such as:
Competitors prices
Consumer’s buying power
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Perceived cost or sacrifice
Perceived value (including symbolic)
Price adaptation
› Price reductions = fast payments, cash payments and large quantities Price discriminations = customer segments, location, time
Price promotions
Geographical/international pricing
Price elasticity of demand (PE)
IF: price goes up, small fall in sales → then demand for the
product is **price inelastic **(price does not affect the sales
volume much)
IF: price goes up, sales fall dramatically → then demand for the product is price elastic (price affect sales volume disproportionately)
Formula for PE= % change in quantity demanded / % change in price
If PE > 1→ elastic
If PE < 1 → inelastic
