chapter 14 and 17

1st message structure issue

is whether to draw a conclusion or leave it to the audience. Recent research suggests that in many cases, rather than drawing a conclusion, the advertiser is better off asking questions and letting buyers come to their own conclusions.

3rd message structure issue

is whether to present a one-sided argument (mentioning only the product's strengths) or a two-sided argument (touting the product's strengths while also admitting its shortcomings).

2nd message structure issue

is whether to present the strongest arguments first or last. Presenting them first gets strong attention but may lead to an anticlimactic ending.

Direct-response television (DRTV)

marketing involves 20- to 60-second advertisements that describe products or give customers a toll-free number or Web site to purchase and 30-minute infomercials such as home shopping channels.

The Need for Integrated Marketing Communications

Under this concept, the company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.

Direct Marketing

Use of direct mail, telephone, direct-response television, e-mail, and the Internet to reach carefully targeted customers. are examples of

Direct Marketing

What is The fastest growing form of marketing

Moral appeals

are directed to the audience's sense of what is "right" and "proper." They are often used to urge people to support social causes such as a cleaner environment, better race relations, equal rights for women, and aid to the disadvantaged.

Forms of Online Advertising Pop-unders

are online ads that appear in a new window that evades pop-up blockers by appearing behind the page you're viewing

Advantages of printed catalogs

--One of the best ways to convince consumers to use the online versions --Create emotional connections with customers

To attract visitors to their site, companies must:

--Promote an offline promotion and online links. --Create value and excitement. --Constantly update the site and make it useful.

Content sponsorships.

Companies gain name exposure on the Internet by sponsoring special content on various Web sites.

Sales Promotion

Programs such as contests, coupons, or other incentives used to build interest in or encourage purchase of a product are examples of

Forms of Online Advertising Banners

are banner-shaped ads found at the top, bottom, left, right, or center of a Web page.

Atmospheres

are designed environments that create or reinforce the buyer's leanings toward buying a product.

business-to-business marketing

, it might contain the products and services the customer has bought; past volumes and prices; key contacts (and their ages, birthdays, hobbies, and favorite foods); competing suppliers; status of current contracts; estimated customer spending for the next few years; and assessments of competitive strengths and weaknesses in selling and servicing the account.

Advantages of Web-based catalogs:

--Eliminate production, printing, and mailing costs --Allow real-time merchandising

Steps in developing effective communication

1. Identify the target audience 2. Set communication objectives 3. Design the message 4. Choose the media 5. Select the message source

Direct Marketing

A marketing channel without intermediaries and an element of the promotion mix. Consists of directly connecting with carefully targeted customers, often on a one-on-one, targeted basis.

identify target audience

A marketing communicator starts with a clear target audience in mind. The audience may be potential buyers or current users, those who make the buying decision or those who influence it. The audience may be individuals, groups, special publics, or the general public.

With Internet, more and more catalogs are going digital.

A variety of Web-only catalogers have emerged, and most print catalogers have added Web-based catalogs

There are four different domains for online marketing

B2C,C2C,C2B,B2B

Forms of Online Advertising Pop-ups

are online ads that appear suddenly in a new window in front of the window being viewed.

Public Relations

Building good relations with the company's publics through favorable publicity, a good corporate image, and effective handling of unfavorable news

Effective web sites

Context, content, community, communication, customization, connection, commerce

Benefits to buyers

Convenient, Immediate, interactive, information, Easy/private, and wealth of products

CONDUCT ONLINE MARKETING

Create a website, set up online social networks, place ads and promotions, Use email

Direct Marketing

Gain an immediate response and lasting relationship with targeted consumers

developing an effective message.

Having defined the desired audience response, the communicator turns to

Rich media display ads

are online ads that incorporate animation, video, sound, and interactivity.

Business-to-consumer (B2C) online marketing

In the Internet exchange process, customers initiate and control the contact. Traditional marketing targets a somewhat passive audience. In contrast, online marketing targets people who actively select which Web sites they will visit and what marketing information they will receive about which products and under what conditions. Thus, online marketing requires new marketing approaches.

The Need for Integrated Marketing Communications

In the consumer's mind, advertising messages from different media and different promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images and brand positions.

Business-to-consumer (B2C) online marketing

Is selling goods and services online to final consumers.

Direct-response television (DRTV)

Less expensive than other forms of promotion and easier to track results.

Benefits to sellers

Low cost, efficient, Improved efficiency, flexibility, speedy, access to buyers

Nonpersonal channels

Major media Atmospheres Events

New Digital Technologies

Many marketers view mobile phones and tablets as a critical new big direct marketing medium. With GPS enabled smartphones, marketers are able to target advertisements to customers based on their proximity to a business.

Communications landscape Marketing Strategies

Marketers are shifting away from mass marketing and are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micro markets.

Search-related ads (or Contextual advertising)

are online advertising in which text-based ads and links appear alongside search engine results.

Advertising

Paid non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Business-to-consumer (B2C) online marketing

Perhaps even more important, the Internet now influences nearly half of total retail sales—sales transacted online plus those carried out offline but encouraged by online research.

Personal Selling

Personal presentation by the sales force used to enhance sales and customer relationships

Communications process

Sender,encoding,message,receiver,media,decoding,feedback,noise

Forms of Online Advertising Interstitial

are online display ads that appear between screen changes on a Web site, especially while a new screen is loading.

Sales Promotion

Short-term incentives used to encourage the purchase of a product or service

affordable method budgeting

Some firms set the promotion budget at the level they think the company can afford. Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has. Unfortunately, this method of setting budgets completely ignores the effects of promotion on sales. It tends to place advertising last among spending priorities, even in situations in which advertising is critical to the firm's success.

Communications landscape Digital technology

Sweeping changes in communications technology are also causing remarkable changes in the ways in which companies and customers communicate with each other. Although television, magazines, and other mass media remain very important, their dominance is declining. Advertisers are now adding a broad selection of more-specialized and highly targeted media to reach smaller customer segments.

Consumer-to-business (C2B) online marketing

Thanks to the Internet, today's consumers are finding it easier to communicate with companies. Most companies now invite prospects and customers to send in suggestions and questions via company Web sites. Beyond this, rather than waiting for an invitation, consumers can search out sellers on the Web, learn about their offers, initiate purchases, and give feedback. Using the Web, consumers can even drive transactions with businesses, rather than the other way around. Ex. Priceline

Word-of-mouth influence

The impact of personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior. has a considerable effect in many areas.

AIDA model

The message should get Attention, hold Interest, arouse Desire, and obtain Action

Select Source

The message's impact on the target audience is also affected by how the audience views the communicator. Messages delivered by highly credible sources are more persuasive.

Objective-and-Task Method

The most logical budget-setting method whereby the company sets its promotion budget based on what it wants to accomplish with promotion. The advantage of the objective-and-task method is that it forces management to spell out its assumptions about the relationship between dollars spent and promotion results. But it also is the most difficult method to use. Often, it is hard to figure out which specific tasks will achieve the stated objectives.

identify target audience

The target audience will heavily affect the communicator's decisions on what will be said, how it will be said, when it will be said, where it will be said, and who will say it.

Developing Effective Communication

There are several steps in developing effective communication

online presence

There are several ways in which a company can create an effective online presence.

Events

are staged occurrences that communicate messages to target audiences

Business-to-business marketers also use telephone marketing extensively

accounting for more than 55 percent of all telephone marketing sales.

Promotion mix strategies Introduction:

advertising and public relations are good for producing high awareness, and sales promotion is useful in promoting early trial. Personal selling must be used to get the trade to carry the product.

Promotion mix strategies Growth

advertising and public relations continue to be powerful influences, whereas sales promotion can be reduced because fewer incentives are needed.

Promotion mix strategies Decline

advertising is kept at a reminder level, public relations is dropped, and salespeople give the product only a little attention. Sales promotion, however, might continue strong.

Budgeting

affordable, percentage of sales, competitive parity, objective-task

customer database

an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

Emotional appeals

attempt to stir up either negative or positive emotions that can motivate purchase. Communicators may use positive emotional appeals such as love, pride, joy, and humor. Communicators can also use negative emotional appeals, such as fear, guilt, and shame that get people to do things they should or to stop doing things they shouldn't.

Click-and-mortar companies

companies operate both as existing brick-and-mortar retailers and online (Barnes & Noble, BestBuy).

Click-only companies

companies operate only on the Internet. They include a wide array of firms, from e-tailers such as Amazon to search engines and portals (Google), transaction sites (eBay), and content sites (ESPN.com).

communication objectives

consists of awareness, knowledge, liking, preference, conviction and purchase.

For a growing number of companies

direct marketing constitutes a complete model for doing business. Geico sells insurance primarily through their website.

Telephone marketing now accounts for

for 20 percent of all direct marketing-driven sales

Do-not-call legislation (National Do-Not-Call Registry)

has shifted call-center activity from making cold calls to managing existing customer relationships.

Major Media

include print media (newspapers, magazines, direct mail)

Push strategy

involves "pushing" the product through distribution channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotions) toward channel members to induce them to carry the product and to promote it to final consumers.

Direct-mail marketing

involves an offer, announcement, reminder, or other item to a person at a particular address.

Buzz marketing

involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities

Kiosk Marketing

involves information and ordering machines. The Redbox DVD kiosks have played a role in driving conventional video rental stores out of business.

Telephone marketing

involves using the telephone to sell directly to consumers and business customers.

Direct-mail marketing

is personalized and generally provides better results than mass media, but at a higher cost.

Media

is the communications channels through which the message moves from sender to receiver.

Feedback

is the part of the receiver's response communicated back to the sender.

Receiver

is the party receiving the message sent by another party.

Sender

is the party sending the message to another party.

Decoding

is the process by which the receiver assigns meaning to the symbols.

Encoding

is the process of putting thought into symbolic form.

Message

is the set of symbols the sender transmits.

Noise

is the unplanned static or distortion during the communication process, which results in the receiver's getting a different message than the one the sender sent.

Outbound telephone marketing

is used to sell directly to consumers and businesses.

Consumer-to-consumer (C2C) online marketing

online marketing and communication occurs on the Web between interested parties over a wide range of products and subjects. In some cases, the Internet provides an excellent means by which consumers can buy or exchange goods or information directly with one another. For example, eBay and Amazon marketplace offer popular market spaces for displaying and selling almost anything, from art and antiques, coins and stamps, and jewelry to computers and consumer electronics.

Business-to-business (B2B)

online marketing is using online resources to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices.

Opinion leaders

people whose opinions are sought by others—by supplying influencers with the product on attractive terms or by educating them so that they can inform others.

The communicator now must select channels of communication. There are two broad types of communication channels

personal and nonpersonal.

RFM

recency, frequency, and monetary value

Rational appeals

relate to the audience's self-interest. They show that the product will produce the desired benefits.

Promotion mix strategies Maturity

sales promotion again becomes important relative to advertising. Buyers know the brands, and advertising is needed only to remind them of the product.

Competitive-Parity Method

setting their promotion budgets to match competitors' outlays. They monitor competitors' advertising or get industry promotion spending estimates from publications or trade associations, and then set their budgets based on the industry average.

consumer marketing

the database might contain a customer's demographics (age, income, family members, birthdays), psychographics (activities, interests, and opinions), and buying behavior (buying preferences and the recency, frequency, and monetary value—RFM—of past purchases).

Pull strategy

the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product. If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers. Thus, under a pull strategy, consumer demand "pulls" the product through the channels.

inbound telephone marketing

toll-free 800 (888, 877, 866) numbers are used to receive orders from television and print ads, direct mail, or catalogs.

Business-to-business marketers

use Web sites, e-mail, online product catalogs, online trading networks, and other online resources to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices.

Catalog

used to be defined as a printed, bound piece of at least eight pages, selling multiple products, and offering a direct ordering mechanism.

In putting the message together, the marketing communicator must decide

what to say (message content) and how to say it (message structure and format).

Consumer-to-business (C2B) online marketing

when consumers communicate with companies.