marcom 4
advantages of using social media for consumer insights
- access to real-time insights - speed - cost effective - unprompted responses - continuous insights
what are some of the challenges with IMC campaign evaluation
- assessing ROI - evaluating synergy/integration effect (reported vs actual behavior, getting actionable outcomes, getting predictive outcomes)
how brands can use social media well
- be personable - added value for consumers - engage instead of interrupt - let consumers co-create with you - design for mobile viewing
partnership program
two companies partner on a promotion-sometimes with special edition products (usually both companies share costa of advertising and promotion)
consumer promotions (promotion)
used to draw people into store or online to purchase s specific brand/item=pull marketing STRENGTHS - variety - flexibility - accountability WEAKNESSES - focus on price/bonus causes brand equity erosion -trains consumers to wait - erodes profitability
trade promotions
used to encourage retail to feature a specific brand/item=push marketing STRENGTHS - high visibility with consumer - predictable lift in sales WEAKNESSES - expensive - trade expects it so now its pay to play
alternative marketing
using non-traditional venues and methods for getting brand exposure and attention - can be subtle and blatant - can use static ads, interactive activities, and/or real people as agents important elements: (surprise, memorable, intriguing, unique, bonus benefit)
DRM commercial companies
want you to: - buy a product - request a sample - get a quote - refer a friend - subscribe
social proof
when larger numbers of people endorse something other people are more likely to believe it, influencing their attitudes and actions
DRM 2
direct response is all about action - drm is targeted to a specific audience who are likely to be customers, and the specific call to action is intended to drive measurable results
message evaluation
examine the message and physical design of the ad, coupon, or dm piece - ad tracking - copytesting - emotional reaction - neuroscience
online evaluation
examines online ads and social media campaigns - web ads - e commerce - social media
sponsored peer-to peer-
examples include brand ambassadors and house parties selection based on: devotion to brand size of social circles - open and honest about relationships - offered incentives In exchange for advocacy
data mining
involves using computer data analysis software to study data and find meaningful patterns in the data 1
why brands use social media
key connection to customer-listen to input - build brand engagement - gather customer information - read customer reactions - crowdsource ideas in addition (increase traffic, generate leads, improve search rankings)
How good is social media's organic reach alone?
low, so paid media is essential to social media's survival (cost effective and highly targeted)
branded entertainment
brand is integral part of story line and, as such, gains high exposure and memorability with views/readers/players - more impactful than product placement but more expensive and not easy to pull off - usage increased sharply with tv reality shows - found in film. tv shows, video games, novels, plays, and songs
social capital theory
broad concept recognizing the power of an individual to exert influence on a group or individual
database marketing
collecting and utilizing customer data for the purposes of enhancing interactions with customers and developing customer loyalty - also referred to as big data
multi-platform promotions
combination of consumer promotion, advertising and pr STRENGTHS - high visibility with consumer - builds brand equity - can build strong loyalty - shared expense if partnership WEAKNESSES - can be expensive - can be difficult to asses ROI
telemarketing
- benefit of personal selling but much less expensive - callers work to call centers, rooms with large banks of phones and computers - occasionally cold calling, but mostly random computer generated calling (predictive dialing) INBOUND CALLS (consumer calls the company) - generated from DRM initiatives - usually convert well - prospects are self selecting - therefore interested OUTBOUND CALLS (the call is made by the company) - usually convert poorly - predictive dialing and computer screened response increase efficiency - considered intrusive, distrusted- scams abound
social media
- can reach both large market segments and small niche segments - inexpensive to produce and can be uploaded from anywhere anytime - can be done instantaneously in real time or with very short lead times - can be continuously updated but hard to remove-found thru search - anyone can claim authority and gain credibility (fake news)
traditional media
- can reach both large segments and small niche segments - expensive to produce and need to purchase channel access to run it requires specialized training and teams of people to produce - can involve anywhere from days to months with long lead times - once produced and run, can't alter, but, if not on internet, does disappear - credibility and authority earned over long time, matching actions to words
creating social media engagement
- consistent brand voice - personable and create two way dialogue - be relevant by participating in cultural movements - engage consumers with real time marketing - leverage influencer marketing
response and redemption (respondent behavior eval)
- consumer response measured through redemption code tracking or url tracing - direct mail pieces all carry codes to track, as do coupons PROS - DRM is easier to track directly using codes (QR code or link) - redemption rates on rebates or coupons is easy to track CONS - very tractional-no measure of long term impact
simulation tests (respondent behavior)
- controlled environment (often mocked up store setting including competition) - participants shown ads, or given promos, then asked to shop as they would normally PROS - cheaper alt to full test market and controlled environment - online version available - actions not reported actions CONS - lack of irl conditions more cost effective but still costly
web ad metrics (online evaluation)
- cost per thousand (CPM) - cost per click (CPC) - costumer action (CPA) - others include length of engagement, dwell time/rate, browsing sequence on site etc PROS - includes web activity and also conversion metrics - highly trackable -n real time feedback CONS - get results on what is happening but not on why - a lot of interconnected elements make parsing results hard
consumer promotion tools
- coupons - samples - GWP Premiums -self-liquidating premiums - contests and sweepstakes - refunds and rebates - bonus packs (BOGO) - price off loyalty programs - tie ins
primary uses of dating for marcom
- customizing promotional communications - refining product and service communications - lead generation and prospect qualification
trade promotion tools
- dealer/retailer kits - trade incentives and deals - point of purchase display (often with price discount) - trade shows - co-op funding for circular ads - slotting allowances - end caps
emotional reaction tests (message evaluation)
- dial testing tests positive/negative reaction to each moment of ad (can be done pre or post) - important when brand building or brand (re)positioning - alt method warmth monitor PROS - allows testing of different parts of an ad - can test many variations of message and tailor ads/media plan by target and geography ore effectively - can be done reasonable quick and cheap- especially if online CONS - hard to correlate emotions response to subsequent behavior - doesn't accurately measure level of emotion but can indicate direction of change in emotions
DRA: digital media
- direct response advertising on digital media is exploding due to data and immediacy - internet allows direct stimulation of sales from DRA through e commerce engines WEB AND WIFI BASED - google ads easy to buy, monitor, change, adjust spending etc - more effective targeting using native advertising, ads on other websites, plus pop up, or pop under - podcasts and webinars can be extended infomercials with DRM capability SOCIAL AND MOBILE - utilizes reach and persuasiveness of social networks - influencers are social media's form of infomercials - mobile direct response ads now becoming common (seen as less intrusive when relevant or permission based)
copy testing (message evaluation)
- evaluates main message and format of ad - assesses a finished marketing piece - usually don't before running ad, but can be done after - assesses message communication, memorability, brand recall - common examples include theater tests, online test, and portfolio tests PROS - tests the ability of ad to cut through clutter before running the ad - over time comparisons to norms can be very useful predictive gauge CONS - scientific assessment of an art form - storyboarding doesn't do ad justice
nonprofit organization
- give money - volunteer - become a member - sign a petition - sign up for newsletter
alternative marketing (media channel evaluation)
- guerilla, lifestyke, interactive - interest and participation at event/site - second hand reports on mainstream or social media PROS - can measure interest and participation - can measure indirectly through buzz metrics on SM CONS - very hard to asses direct impact on sales at all unless isolated campaign or unless do pre/post testing in that market
direct response marketing can have great ROI
- higher costs per impression than mass communication - more directly tied to sales results than mass communication if done well - requires speedy follow up and follow through
primary objective of database marketing
- identify customers - build relationships (heart of database marketing is behavioral targeting)
DRA: traditional media
- includes infomercials and DRM only channels - providing more ways for consumer to respond will increase the response rate TARGETING - low cost per thousand, but also low conversion: especially tv - radio can target geographically: better cost per thousand but lower reach -print can target the most accurately: by subscriber bae and by topic CALL TO ACTION tv/video and radio - urge call now with catchy easy to remember contact info - add website url verbal or on screen, or QR code on screen print - use coupons, order forms, addresses, toll free numbers, website url, QR codes etc
why do consumers follow brands?
- keep up with what's going on - learn about products or services - promotions and deals - provide feedback - join community of fans - make purchases - complain
4 main types of evaluation for paid comm
- message evaluation - online evaluation - respondent behavior evaluation - media channel evaluation (must be decided up front as some types require pre and post to get answers as well as he success level) (some can be measured and adjusted 'in flight')
catalog
- much of this is now online...many e-com websites are digital catalogs - seeing growth in niche print catalogs - less expensive and more targeted - some commerce businesses (such as ll bean) mail catalogs to drive e com sales MAIL/PRINT - work well for targeting older customers - still popular in apparel and home goods, esp at holidays - hard to personalize and customize- small runs more expensive to produce - expensive to shoot, print, mail, and not eco-friendly, lots of waste ONLINE - can target and personalize without much expense - seamless transition to e-commerce - accountable: can calculate ROI easily
disadvantages of social media for consumer insights
- not useful for in-depth feedback - users may not represent the market - the data might not answer the questions we have - quality and amount of data are inconsistent
output (success of pr)
- number of feature stories - number of management quotes or interviews - blog mentions/number of bloggers writing about your stuff - impressions (eyeball stats) - engagements (referrals or links to your site) - or staying out of the news (positive share of voice=output)
media channel evaluation
- offline - digital - alternative
two ways to assess public relations campaigns
- output - outcome
cognitive neuroscience (message eval)
- physiological reaction in brainwaves - gets at what true reaction is vs claims (socialized) reaction PROS - brain imaging is more accurate than reported reactions - biometric research collects hard data on reaction not reported data CONS - expensive and very hard to recruit or - very new so limited history of experience in translating this to sales
social customer care (through social media)
- preferred method by consumers - public setting, so very visible - consumers expect quick responses - requires company integration
offline exposure measures (media channel evaluation)
- reach and frequency - circulation and readership - traffic on out of home (billboards, taxis etc)
Advertising Tracking Research (message evaluation)
- respondents shown portion of ad that has already run with name removed - questions assess brand/ad recognition, brand/campaign awareness, memorability, ikeability, message recall etc PROS - captures effect of spending weight as well as ad creative effectiveness - can get to relative impact vs competition CONS - performed after ad has gone live so evaluation rather than predictive
e commerce metrics (online evaluation)
- sales funnel efficiency - conversion ratios - shopping cart abandonment - recapture ratios PROS - really important for ecommerce - easy to do comparison tests CONS - only works fro those not doing private browsing or ad blocking - if consumers don't create account and don't allow cookies, no tracking
breakeven analysis (measuring ROI)
- sales price - COGS = gross margin
IMC Objectives
- short term outcomes (sales, redemption rates) - long term results (brand awareness, brand loyalty, or brand equity) - product and brand specific awareness - affective responses (liking the company and a positive brand image)
report cards and benchmarks
- shows how the new ad performs In comparison to the brands competitor - indicated how well the advertisement performed in relation to those from previous campaigns
behavioral targeting is based on data mining
- social media network - shopping behavior - drm responsiveness - census data - gps location tracking - market research data - browsing behavior
multi-platform promotion tools
- sponsorships - events - charity drives - some kind of loyalty program - partnership programs
sales (respondent behavior eval)
- the ultimate measure of all marketing effort (but often immediate objective is different) - some forms of marcom affect sales more directly than others PROS - easy to measure using UPC scanner data can provide data almost in real time - some kinds of promotions also relatively easy to association with list in sales CONS - lots of noise in the data-changes can be caused by other factors - measuring impact of advertising on sales is harder (delayed, indirect, other factors)
keys to effective DRM comm
- tightly targeted - personalized - clear specific great offer - benefits clearly outlined - compelling header and copy - easy path to action - limited time to decide - trackable - measurable - multi step follow up
social media metrics (online eval)
- traffic generation (visitors/unique visitors) - engagement metrics (followers, shares) - buzz score (mentions within limited period) - conversion ratios for some sites social listening PROS - three types (volume, engagement, and conversion- so can get a lot of info) - real time and continuous - social listening often automates CONS - direct correlation to sales stil unclear though more obvious in case of social commerce - automation not able to interpret snakiness, humor, irony, tone of voice etc except literally through use of words
Overlays
- two consumer promotions, or consumer + trade promotion, can be run at same time - common combination might be purchase of display unit (trade promo) while running sweepstakes offer (consumer promo)
ways to improve ROI of DRM
- use a good database: only target those likely to be interested - adjust messages and images to make them more enticing to target (including testimonials, making offers compelling to the target, communicating clear call to action with clear benefits) - offer multiple ways to respond - constantly monitor response rates and adjust - optimize before expanding
test markets (respondent behavior)
- used to asses all of any part of marketing campaign (important to be true to actual plan) - live in market results (competitive reaction can impact results so get assessment vs comp too) PROS - can test whole marketing plan - can run a/b testing and vs control - actual in market results CONS - expensive to run (but cost effective vs flawed new product launch) - can take while to get sufficient read on results
digital (media channel evaluation)
- web, social, mobile - good metrics and analytics tools - traffic, source, buzz etc PROS - good metrics available - highly trackable in real time CONS - metrics mostly transactional measures - starting to see text analysis now
how do you know when a campaign is successful?
- when set objectives have been met (attitudinal or behavioral) - objectives work hand in hand for evaluation (murky objectives= murky evaluation)
digital consumer journey
1. awareness 2. consideration 3. purchase 4. use 5. opinion 6. sharing with engagement being a primary factor
direct mail
3 types of mailing lists - house list: list of current customers (much higher response rate than other 2 lists) - response list: list of non customers who have responded to offer from other brands - compiled list: list of non customers who meet target description (much of this is now via email, printing is expensive and not eco friendly, email is cheap and easy to personalize, plus its very accountable with ROI)
promotion
5 main kinds - consumer promotions: incentivize the consumer to pull sales through the channel - trade promotions: incentivize the retail trade to push sales through the channel - multi-platform promotions: consumer promotions that focus on brand building and include events, sponsorships, tie ins etc - cause related promotions: build brand equity and draw attention to/raise funds for a cause - sales force promotions: incentivize the sales Forde to sell more goods and services
permission based DRM- empowerment and reciprocity
EMPOWERMENT: (customers choose...) - what to receive - when to receive it - how to receive it RECIPROCITY: (reward customers) - for initial action - for continuous action both increase value to customer both increase loyalty
permission-based DRM (opt in or out)
OPT-IN - check the box in order to receive it OPT OUT - uncheck the box in order not to receive it (opt in results in more engaged respondents than opt out, opt in result in higher open rate, response rate, and ROI, opt in is harder for spammers to abuse than opt out)
outcome (success of pr campaign)
activity improvements - traffic to location/website - new first time customers - more followers on social media sales market share surveys - attitude change - net promoter score investor metrics - stock price (positive brand metrics=outcome)
examples of alternative media
advertising outlets that are more unconventional - video games - event venues - cinemas - subways, airports - street and mall kiosks - fully painted vehicles - escalators and elevators - public restrooms - parking lots - shopping bags - clothes
guerrilla marketing
aggressive grass roots promotion using offline actions that create big splash with little investment - irl (offline) activation - involves interacting with the target in unique ways- not necessarily experiencing the brand or brand promise - goal: to get them involved in a way that ensures social media posts - often take form of pop-up events
is social media paid, owned, or earned media?
all 3 - paid= social media advertising - owned= brand social media accounts - earned= social media mentions by consumers (user generated content)
consumer orientation towards promotions
consumers respond in 1 of 4 ways PRICE BASED RESPONSES - promotion prone: regularly respond to promotions; look out for them, like to gain an upside (bonus, sweepstake etc) - price sensitive: price drives decision so only respond to price promotions that drop below market BRAND BASED RESPONSES - brand loyal: not persuaded to switch brands by promotions, but will take advantage of a promotion offered on their brand of choice - brand preference: promotions will cause them to with brands within their considered set, but not outside of it
respondent behavior evaluatation
count visibile customer actions, including store visits, inquiries, or actual purchases - sales - response and redemption - test markets - simulated tests (increase in this type since people want solid evidence)
lifestyle marketing
find ways to meet the target where they are doing what they like to do or normally do in course of their lives - find destination venue where target consumer goes - intercept target consumer at the venue in relevant way for that venue - match activity with brand personality or product use - localized reach - unless generates buzz online (but can be very targeted reach)
payout analysis (measuring ROI)
need to understand how much incremental volume and profit marcom campaign generated in order to justify expenditure 4 numbers to know this: 1. baseline (expected sales without promotion) 2. sales lift effect from promotion 3. forward buying (consumers stocking up) 4. cannibalization on other products 5. real volume uplift of promotion
product placement
objective is to achieve positive exposure for brand in strong situational context- halo of emotional association - product placements (increase awareness, lead to a more positive attitude towards brand, no immediate impact on sales) - low cost per viewer - channels include tv, films, pay per view tv, streaming services, and also sometimes in video games) - work best with 15-34 age cohort
buzz marketing
objective is to generate organic WOM about the brand, usually by seeding something unusual, funny, memorable, intriguing, unique - unusual element can be online or IRL - fast viral spread in short period of time to get broad awareness - call to action to help share with others (sometimes with incentives) - bet ones are meaningful to brand and to target (or else highly entertaining to target)
stealth marketing
objective is to get users to hear about/try product or service without being aware that this is a promotion - paid agents provide ways to demo the product - don't reveal their relationship to the brand - talk "naturally" about product as if they use it - ethically questionable
consumer promotion channels
print media - free standing inserts (FSIs) direct mail (postal or email) in or on package in store - on shelf - scanner web based and mobile salespeople or customer service
experimental marketing
provide a unique and memorable experience to target consumers by giving them immersive experience - creative, exciting, and impactful activation that is true to brand character - usually staged in high traffic area- intercept passers-by - not highly targeted- except through self selection
direct response marketing (DRM)
speeds up consumer decision making journey - the drm purpose is to send customers targeted messages that drive specific actions - it packages the value preposition and call to action all in one to take a prospect from consideration to decision faster 1. need recognition 2. info search 3. evaluation of alternatives 4. selection 5. post purchase evaluation
share of customer/share of wallet
the % of total product category purchases made by that customer with any one firm also called share of wallet - purchases of your product or service / total purchases of that user within that category - based oil principle that easier and more profitable to sell existing customers more products than to seek the same product to more customers - focus is on building new business with established customers (usually with high degree of personalization in customer interaction) - use interactive communication and database mining to determine individual needs - can build very strong loyalty if done well with his degree of relevance and personal service
customer lifetime value
the net profit contribution of the customer to a firm over time (tends to follow standard distribution curve) - based on principle that most of a firms time and money should be invested in customers who are most profitable - focus is on understanding the description and promotion response behaviors of the firms most profitable customers - database mining is used ti segment the firms customer base and identify highly profitable segments to target for increased business