11. Marketing Communication Strategies

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1 11. Marketing Strategies A Shifting of Traditional and New Media Burger King s subservient chicken Have it your way. Viral Marketing 1 Whopper Freakout Commercial CHICK-FIL-A S CONSISTENTAND ENDURING IMC

2 Haagen-Dazs Loves Honey Bees OUTLINE process Establish the Examples of marketing strategy al Trends and Change in Promotion Strategies Markets are more fragmented; Consumer viewing habits become more diverse and media are more fragmented; The growth of targeted media vehicles. Marketers use less mass media and more targeted media. The improvements in the quality and quantity of consumer information due to information technology; 7 The growth and development of data mining. Target consumer through various directmarketing methods. More intensive price competition and the increase in retailers power (consolidation and scanner data). Shift the promotion focus from advertising to sales promotion. 8

3 THE NEW MARKETING COMMUNICATION MODEL THE NEW MARKETING COMMUNICATIONMODEL (CONT.) Many new information and communication tools appear. Consumers are better informed and communication-empowered. Consumers can more easily connect with each other to exchange brandrelated information or create their own marketing messages. Marketers reach smaller groups of consumers in more interactive and engaging way. 9 Ad spending on the Internet and other digital media has surged while that on the major TV networks has stagnated. Television captured more than 40 percent of global advertising spending compared to 21 percent by all online advertising media. Still, online ad remains the fastest growing media, the second largest medium, well ahead of newspapers and magazines. 10 THE NEW MARKETING COMMUNICATIONMODEL (CONT.) The new marketing communication model will consist of a shifting mix of both traditional mass media and new (more targeted, less controllable) digital media. Many marketers think themselves as brand-content managers who manage brand conversations with and among customers. Examples: Heinz s introduction of its new balsamic-vinegar-flavored ketchup. 11 More ments 1 1 Neff, Jack (2005), Advertising age, July 11, P&G shuttered its Reflect.com customized beauty site. The Internet seems to reemerge as a credible ad medium. Unilever tripled its online spending to $17.6 (3% of media budget) million. The Internet evolves into a mass medium (in addition to a tool for relationship marketing), at least for male-orientedproduct launches. 12

4 The New Marketing Landscape Consumers are better informed More communication Less mass marketing Changing communications technology The Shifting Marketing s Model Less broadcasting and more narrowcasting Advertisers are shifting budgets away from network television to more targeted cost-, interactive, and engaging media Marketing s Integrated Marketing s Advertising Sales Promotion Public Relations and Publicity Personal Selling Direct and Interactive Marketing The integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands 15

5 Slide 17-2 The Process EFFECTIVE COMMUNICATION (FISKE & HARTLEY) Source Encodes Source Transmits via Medium Receiver Provides Feedback to Source Receives Decodes Source: powerful or influential; with expertise or high likability : consistent with audience s beliefs Peripheral issues Social context process Irwin/McGraw-Hill?The McGraw-Hill Companies, Inc., 1998 Figure 19.2: Steps in ing Effective ing Effective s Identifying the Target Audience -Image Analysis Determining the Objectives Three kinds of responses from the target audience: - 認知 Cognitive (learn) - 情感 Affective (feel) - 行為 Behavioral (do) 19 20

6 Identify the Target Audience Figure 19.3: Familiarity- Favorability Analysis Image analysis -Familiarity scale -Favorability scale Never Heard of Heard of Only Know a Little Bit Know a Fair Amount Know Very Well Very Unfavorable Somewhat Unfavorable Indifferent Somewhat Favorable Very favorable Slide 17-1 Table 17.1 Some Strategic Goals of Marketing s "HIERARCHY-OF-EFFECTS" MODEL Strategic Goal Create awareness Build positive images Identify prospects Build channel relationships Retain customers Description Inform markets about products, brands, stores or organizations. positive evaluations in people minds about products, brands, stores or organizations. Find out the names, addresses and possible needs of potential buyers. Increase cooperation among channel members. Create value for customers, satisfy their wants and needs, and earn their loyalty. 23 Awareness Knowledge Liking Preference Conviction Purchase 24 Irwin/McGraw-Hill?The McGraw-Hill Companies, Inc., 1998

7 訊息決策 DESIGN THE MESSAGE Content Structure Source Slide 17-3 Figure 17.2 The AIDA Model Content Marketing s Rational Appeals Emotional Appeals - Positive or negative? Attention Interest Desire Action Moral Appeals Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998

8 Structure COMMUNICATION CHANNELS Conclusion-drawing or not? One-sided or two-sided? The order of arguments presented 29 Personal advocate channels Social channels Expert channels npersonal Media Events Atmospheres 30 BUZZ MARKETING Cultivating opinion leaders and get them to spread information about a product in their communities. ESTABLISHING THE PROMOTION MIX 廣告 (Advertising) 促銷 (Sales Promotion) 公共關係與宣傳報導 (Public Relations and Publicity ) 人員推銷 (Personal Selling) 31 Establish the 32

9 Slide 17-5 s Mode Marketer Control Over Long Term, Ongoing Activity Considered an Unbiased Source can be Customized for each Customer Short Term Focus Cost per Contact Overall Cost COMPARING THE ELEMENTS OF THE COMMUNICATIONS MIX Advertising One-Way High Yes Low High Personal Selling Two-Way Medium-High Yes Yes High Low Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 Sales Promotion One-Way High Yes Varies Varies Publicity One-Way Low Yes Establish the Direct Cost Direct Cost 33 COMMUNICATION MIX: FACTORS TO CONSIDER: 產品類型 (Type of Product) 推式或拉式策略 (Push vs. Pull strategy) 購買準備階段 (Buyer readiness stage) 產品生命週期階段 (Product Life Cycle) Establish the 34 Figure Two Marketing 17.3 s Approaches Push Strategy Producer Pull Strategy Marketing s Resellers Marketing s Marketing s End Users Are Consumer Goods Companies Too Pushy? Producer Request Products Resellers Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 Request Products Establish the End Users 35 The promotion expenditures in 2007: Trade promotion (60%), 7% in 6 years; Consumer promotion (14%) Advertising (26%), down from 42% twenty years ago

10 Integrating the Promotion Let s Show the World What Makes Us Different Example of marketing strategy 28 Example: Unilever Digital Marketer of the year (2008, advertising age) Integrating digital with traditional media Suave s in the motherhood Dove s Evolution Cross Media Divide Superdistribution Digital Strategies 2 Broadcast commercial messages and seek customer feedback in order to facilitate marketing and sell goods and services. Examples Advertising on Facebook Company fan pages on Facebook 2 Piskorski, Mikotaj Jan (2011), Social Strategies that work, Harvard Business Review, 89, 11,

11 SUCCESSFUL SOCIAL STRATEGIES 2 FOUR WAYS TO PURSUE SOCIAL STRATEGIES 2 1. Reduce costs or increase customers willingness to pay, 2. by helping people establish or strengthen relationships, 3. if they do free work on the company s behalf. 2 Piskorski, Mikotaj Jan (2011), Social Strategies that work, Harvard Business Review, 89, 11, Establish Relationships Strengthen Relationships Reduce costs Yelp s Elite Yelpers Zynga s Social games Increase Willingness to Pay American Express Open credit card ebay Group Gifts 2 Piskorski, Mikotaj Jan (2011), Social Strategies that work, Harvard Business Review, 89, 11,