Marketing 2205 Chapter 12: Engaging Consumer & Communication Value

Promotion Mix

• A promotion/marketing communications mix is a specific blend of promotion/marketing communication tools:

  • Advertising

  • Sales promotion

  • Personal selling

  • Public relations (PR)

  • Direct & digital marketing

Promotion/Marketing Communication

Table

Push versus Pull Promotion Strategy

Figure 12.2

Integrated Marketing Communications

Figure 12.1

Advertising Objectives

12.1

Profiles of Major Media Types

Table 12.2

Major Advertising Decisions

Figure 12.3

New Marketing Communications Model

• Factors changing the face of today’s marketing communications:

  • Changing consumers

  • Changing marketing strategies

  • Advancements in digital technology

Consumer Experience Marketing

• Consumers control their own media,

  • marketers need to develop strategy that aims to improve how customers experience & interact with a brand’s products & services.

  • all points of contact that consumers have with the business, from the first interaction until they become lifelong customers.

 

• Consumer experience (C X) marketing puts the customer’s needs, wants, and value-delivering actions above just making sales.

Customer Journeys & Customer Journey Mapping

• At the heart of C X marketing is understanding the consumer’s journey and mapping their journey.

• Customer journey map: A tool for visualizing a customer’s interaction with the brand

New Marketing Communications Model

• Marketers reach smaller consumer segments in interactive & engaging ways.

• Mix of traditional mass media & a wide array of online, mobile,& social media

• Content marketing managers create, inspire & share brand messages and conversations.

  • All types of communication channels are used.

• Communication is two-way

Content Marketing

• Content marketing is the cornerstone of an owned marketing communications strategy.

• Content marketing: A strategic marketing and business process focused on creating & distributing valuable, relevant, & consistent content to attract and retain a clearly defined audience &, ultimately, to drive profitable customer action.

Inbound Marketing

• Content marketing is often called inbound marketing.

  • The goal of inbound marketing is to attract traffic, which is then converted into leads, & those leads are then converted into sales.

Content Vision & Strategy

• Developing a cohesive content vision for the company or brand is essential.

 

• An effective content vision is born from the company’s purpose or why.

 

• Content visions connect with consumers on an emotional level rather than simply a product or service level.

Content Vision & Strategy Example

• Herschel’s content vision (and branded hashtag) is Well Travelled.

• Their content is built around travel, adventure, & the emotions created by the freedom and opportunity of living a well-travelled life.

Earned Marketing Communications

• Content developed & published about a company by a third party.

• Earned media cannot be bought or owned.

User-Generated Content

• Any type of content—text, posts, images, videos, reviews, etc., created by an individual person (not a brand) & posted on a website or a social media platform.

• User-generated content (U G C) is one of the most valuable marketing assets for a brand.

  • Example: The “Crash the Super Bowl Challenge” held annually by PepsiCo’s Doritos brand.

    • For more than a decade, Doritos invited consumers to create their own 30-second video ads, with winners receiving cash awards & having their ads run during the Super Bowl.

Paid Marketing Communications

External marketing efforts that involve a paid placement, such as pay-per-click advertising, branded content, & display ads.

Advertising Strategy

• Major advertising strategy elements:

  • Creating advertising messages

    • Breaking through the clutter

    • Merging advertising & entertainment

    • Message & content strategy

    • Message execution

    • Consumer-generated content

 

• Selecting advertising media

  • Determining reach, frequency, impact and engagement

  • Choosing among major media types

  • Selecting specific media vehicles

  • Choosing media timing (seasonal, pulsing)

Methods of Setting the Advertising Budget

• Affordable Method

• Percentage-of-Sales Method

• Competitive-Parity Method

• Objective-and-Task Method

Setting the Advertising Budget

Setting the advertising budget is one of the hardest decisions facing a company. GEICO spends more than US$1 billion a year on its award-winning ad campaigns, but is that too little, just right, or too much?

Evaluating Advertising Effectiveness & Return on Advertising Investment

• Return on advertising investment: Net return on advertising investment divided by the costs of the advertising investment

  • Should be regularly evaluated

  • Track sales, profit or other engagement effects

 

• Communication effects: measures of consumer recall or product awareness, knowledge, attitudes, preference, purchase intentions.

Organizing for Advertising

• Small firms may use their sales department staff.

• Large companies may have their own advertising departments.

• Advertising agencies

  • Assists companies in planning, preparing, implementing, & evaluating all or portions of their advertising programs

Public Relations

• Promotes products, people, ideas, organizations, & nations

 

• Builds good relations with consumers, investors, the media, & communities.

 

• Rebuilds interest in commodities for trade associations

Role & Impact of PR

• Strong impact on public awareness at a lower cost than advertising

• Power to engage consumers & make them part of the brand’s story, inject them in daily conversations

• Limited & scattered use

• Powerful brand-building tool

Functions of PR Departments

• Press relations or press agency—Creating & placing newsworthy information in the news media to attract attention to a person, product, or service.

• Product publicity—Publicizing specific products.

• Public affairs—Building & maintaining national or local community relationships.

• Lobbying—Building & maintaining relationships with legislators & government officials to influence legislation and regulation.

• Investor relations—Maintaining relationships with shareholders & others in the financial community.

• Development—Working with donors or members of nonprofit organizations to gain financial or volunteer support.

Major PR Tools

• News

• Special events

• Written materials

• Audiovisual materials

• Corporate identity materials

• Public service activities