MKTG 480: Chapter 13 - Promotional essentials: digital and social media marketing

Action

The action stage is the purchase itself. To stimulate ultimate purchase, marketers often rely on salespeople, accompanied by some form of sales promotion, to close the sale. - The reason sales organizations put so much emphasis on training salespeople in closing techniques is that they are seen as the final stimulant to purchase.

Promotional strategies

involve decisions about which combination of elements of the promotion mix best communicate with customers and potential customers.

Earned Media

is a bit different as it refers to the case where either a customer or a commercial entity (such as a news media organization) chooses to act as a marketing communication channel for the dissemination of information associated with the marketer's organization at no cost. - An example is when a customer shares a link to a blog post about a new product's launch on a social network because he or she is excited about the new product. 1. Examples: •Social media shares •User reviews of products •Mentions of an organization on third party's website or social media 2. Advantages: •Credibility •Potential cost efficiencies •Transparency 3. Potential issues: •Lack of control •Communications and conversations may be negative •Value can be difficult to measure

Data collection

is easier and less expensive than ever and with more depth and breadth than ever and gives marketers a more holistic view of people - The data collection capabilities facilitated by digital technologies enable marketing managers to gain access to information on customers at a breadth and depth never before possible, and at reasonable cost. - These data can be collected either through interactions a firm creates or engages in with a customer or via interactions that customers have with each other without direct firm involvement. - As customers increasingly search for information, make transactions, and communicate through digital channels an increasing amount of data will become available, enabling marketers to gain a more holistic view of individuals .

Internal marketing

is the application of marketing concepts within the organization. - Knowledgeable employees can effectively communicate the branding message. They are be firm's best brand ambassadors. - HR departments help in training employees in the brand messages (e.g., Starbucks, Nordstrom's, Ritz Carlton).

Digital marketing

is using digital technologies like desktops, laptops, tablets, and smartphones to market value offerings. - It may be the most critical component of promotional strategy. - It is essential because customers control when, where, and how they interact with marketers.

Paid Media

refers to marketing communication channels requiring that the marketer pays someone else for customer access. - In digital marketing, access to paid media can generally be purchased on a per unit basis. - Common pricing models include cost-per-impression, in which the marketing manager pays a set amount each time a customer is exposed to the promotion and cost-per-click, in which the marketing manager pays a set amount each time a customer clicks on a link. 1. Examples: •Display ads •Search ads •Native ads •Social network ads 2. Advantages: •Speed •Flexibility •Targeting capabilities •Scalability •Control •Measurability 3. Potential issues: •Difficulty standing out •Declining response rates •Potential credibility issues

promotion campaign

tracks the effectiveness and efficiency of the promotional strategies for a particular product or product line over a given time period.

ADIA model

1. Attention (cognitive step) 2. Interest (affective step) 3. Desire (affective step) 4. Action (behavioral step)

Promotion mix element - Advertising

1. Pros: - Many media choices. - Efficiently reach large numbers of customers. - Great creative flexibility. 2. Cons: - Shotgun approach reaches many outside the target. - Oversaturation of ads lessens impact. - high production cost

Examples of digital options for marketing information sharing

1. infographics 2. webinars 3. videos 4. block posts 5. Lists 6. FAQs 7. testimonials 8. case studies 9. whitepapers

Promotion mix elements:

1. pros: - Strong two-way communication of ideas. - Directly ease customer confusion and persuade purchase 2. Cons: - Very expensive cost per customer contact. - Salesperson may go "off message" from brand in order to secure the sale.

Promotion mix elements - Digital and social media

1. pros: - Message customization without high costs of personal selling. - Strong relationship building especially when customer can control the interaction. 2. Cons: - SPAM and other unwanted correspondence when targeting is poorly executed. - Reliance on CRM and database marketing requires constant updating.

promotion mix element - sales promotion

1. pros: - Stimulates purchase directly through incentive to buy. - Serves as an effective accompaniment to other promotion forms. 2. Cons: - Can lead customers to continually wait for the next coupon, rebate, etc. - Brand may be impacted by price-cutting image.

Promotion mix element - public relations

1. pros: - Unpaid communication seen as more credible than paid forms. - Association of offering with quality media outlet enhances brand. 2. Cons - Low control of how the message turns out. - Highly labor intensive cost of mounting PR campaigns.

Hierarchy of effects model

Buyers often pass through purchase decision processes in three steps: cognitive (learn), affective (feel), and behavioral (do). - These stages are portrayed in various models to illustrate this hierarchy of effects in the context of customer response to marketing communications - The ADIA hierarchy of effects model is well know

Attention

If target customers are essentially unaware of an offering, most of the investment in communication must be in raising awareness and gaining their attention. - Depending on the situation, this may involve developing the customer's awareness for a whole new set of customer needs and wants as well as revealing that your product exists to address those needs and wants. - Gaining attention and building initial awareness can be a daunting task for marketers. - Tremendous expenditures may be required to establish a foothold with customers, especially when a brand is relatively unknown or a product category is in its infancy.

Desire

Moving from interest to desire means that a customer has to move past a need and begin to really want that specific product. - Promotion feeds desire through strong persuasive communication. - At this stage, salespeople and customized direct and interactive marketing enter the promotion mix. - Messages are altered to influence customers to feel that they simply can't do without the item. - The innovators and early adopters show off their purchases to holdouts, and the ball is rolling.

Personal selling

One-to-one personal communication with a customer by a salesperson, either in person or through other means.

Advertising

Paid form of relatively less personal marketing communications, often through a mass medium to one or more target markets. - Example media include television, radio, magazines, newspapers, and outdoors.

Essentials of promotion and integrated marketing communications

Promotion involves various forms of communication to inform, persuade, or remind. Promotion mix: 1. advertising 2. sales promotion 3. public relations 4. personal selling 5. digital and social media marketing

Sales promotion

Provides an inducement for an end-user consumer to buy your product or for a salesperson or someone else in the channel to sell it. - Designed to augment other forms of promotion; rarely used alone. - Example sales promotion tools for customers are coupons, rebates, and sweepstakes. Inducements for channel members often involve special monies or prizes for pushing a particular offering.

Public relations

Systematic approach to influencing attitudes, opinions, and behaviors of customers and others. - Often executed through publicity, which is an unpaid and relatively less personal form of marketing communications usually through news stories and mentions at public events.

Interest

To translate customer attention into interest requires persuasive communication. - For more technical or complicated products, this means beginning to inform customers more specifically about what a product offering can do for them—how it helps fulfill needs and wants. - To stimulate interest, the promotion must begin to touch a customer's hot buttons.

Illustrative factors influencing strategy

What kinds of decisions are involved in developing and executing IMC strategy? - Consider Exhibit 13.4, which compares the impact of marketing management factors in an IMC approach with those of a personal selling approach. - As you can see, a gamut of critical issues from buyer information needs to purchase size to the configuration of the marketing mix elements all influence the decision about where to invest promotional budget dollars. - In fact, in many marketing-planning situations the promotional budget is the lion's share of the overall marketing budget—typically surpassing packaging, distribution, and other marketing elements by a wide margin. Factors: 1. balanced number and dispersion of buyers - advertising/sales promotion driven - large - personal selling driven - small 2. Buyers information needs - advertising/sales promotion driven - low - personal selling driven - high 3. Size and importance of purchase - advertising/sales promotion driven - small - personal selling driven - large 4. Post-purchase contact required - advertising/sales promotion driven - little - personal selling driven - much 5. Product complexity - advertising/sales promotion driven - low - personal selling driven - high 6. Distribution - advertising/sales promotion driven - Channel - personal selling driven - direct 7. Pricing - advertising/sales promotion driven - preset - personal selling driven - negotiated

Owned media

refers to marketing communication channels that the marketer's organization has complete control over. The content created on an organization's website is an example of owned media. 1. Examples: •Firm's website (mobile and desktop) •Email •Firm's blog •Firm's social media accounts 2. Advantages: •Longevity •Flexibility •Ability to speak to the niche audiences in depth 3. Potential issues: •Potential credibility issues •Potentially substantial development effort required •Desired results may be achieved over longer time horizons

Push strategy

the focus is on the channel of distribution and in getting the offering into the channel. provider - push the offering through personal selling and sales promotion - channel members - channel members fo their own advertising and selling to users - end user

Pull strategy

the focus shifts to stimulating demand for an offering directly from the end user. provider - demand by end users trickles up through the channel, pulling product from the provider - channel members - provider creates demand by end users through promoting directly to them - end user