Marketing Strategy: Key Concepts 10

got milk?

Definition:
To communicate with individuals, groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products.

-Companies must communicate with their customers, this communication should not be left to chance.
Design communication to your specific target audience:

Promotion: Fourth element of the marketing mix. Need to make sure the goals of promotion are integrated with other Ps.

Need to design a communications strategy, that integrates the promotion mix:

Increasing importance of Integrated Marketing Communications ... Why?

The fourth P the critical P ?

Communications process consists of:

  1. sender

  2. encoding

  3. message

  4. media

  5. decoding

  6. receiver

  7. response

  8. feedback

  9. noise

Need to identify and understand the target audience, from the perspective of information processing:
  1. selective attention

  2. distortion

  3. recall

  4. contextual issues
Steps of the promotional program:
  1. identify target audience and characteristics, and perception of product, context etc.

  2. define communications objectives (not aware, awareness, interest, evaluation, trial, adoption). Seeking cognitive, affective or behavioral response

  3. message:
    1. content (rational / emotional / moral)

    2. structure (one or two sided)

    3. format (headline, copy, sound)

    4. source (trusted / likable / expert)

  4. select media (comunications channels)

  5. establish budget (affordable / % sales / competitive / objective and task)

Consider:

Advertising

Need to consider the following issues when considering whether to advertise: Issues to consider for advertisers: Decision making for advertising:
  1. objectives setting

  2. budget decision (stage in product life cycle, market share, competition and clutter, needed frequency, product substitutability)

  3. message decision
    • message generation

    • message evaluation and selection ... USP ?

    • message execution: structure depending on media (print: headline, illustrations, sub headline, body copy, signature)
      defined objective, defined product positioning, build product differentiation, consistent through campaign, strong integration, appropriate target market, simple product centered message, positioning of brand name within message

    • social responsibility issues ... a wider context of evaluation

  4. media decision
    • reach (# of ppl exposed at least once), frequency (total number of times reached) and impact (quality of impact)

    • media types (TV (22%), Newspaper (23%), Direct Mail (20%), Outdoor, Magazines (6%), Radio (7%), WWW)

    • media Vehicles (programs, WSJ, Yahoo, Vogue): cpm relevant market etc.

    • media timing

    • geographic allocation: national versus spot buying

  5. ad effectiveness evaluation

Useful advertising links: adforum, Advertising Age, tbwa/chiat/day, Fallon, Organic, Mad Dogs and Englishmen

After reviewing NetRatings, discuss the state of advertising on the web.

Sales Promotion

Shorter term tools to stimulate demand (consumer, trade and orgs. sales force.)

Potential impact on brand and shift demand ?

Sales Promotion spend exceeds advertising spend and is growing faster ... why ?

Consumer promotional tools include:

Discussion Topic: Take a look at Sweepstakesbuilder: What roles does a service like this provide for web-sites? Why would web-sites participate?

Trade promotional tools include:

Public Relations

Can build awareness and preference in hte marketplace, repositioning products, and defending them.

Tools include:

Proactive versus reactive approach?

Media relations

Dealing with bad publicity?

Sales

Need to determine salesforce: Personal selling includes:
  1. prospecting and qualifying

  2. preapproach: learn about prospect

  3. approach: greeting

  4. presentation: tell the story

  5. overcoming objections

  6. closing

  7. follow-up and maintenance

Importance of negotiations

Standards versus flexibility

Relationship management versus single transaction

Technologies impact on selling? (knowledge of customer / CRM / flexibility)

Relevant Knowledge @ Wharton Articles

Corporate Sponsorships of Stadiums and Other Institutions Donít Always Pay Off
Do Mixed Emotions and Advertising Mix?
The Cell Phone as Marketing Tool: Will Consumers Answer the Call?
How and When Advertising Works
Technology is Changing the Advertising Business
Pay-for-Performance Trade Promotions Can Ease Friction Between Manufacturers and Retailers

Link to discussion board
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