MKT 337 Miller Exam 3

Integrated Marketing Communications (IMC)

the careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer

IMC Popularity Growth Factors

1. Proliferation (increase) of thousands of media choices

2. Fragmentation (breaking up) of the mass market

3. Slash of advertising spending in favor of promotional techniques that generate immediate response

Factors Affecting the Choice of Promotional Mix

1. Nature of product

2. Stage in PLC

3. Target market characteristics

4. Type of buying decision

5. Promotion funds

6. Push or pull strategy

Product Life Cycle and the Promotional Mix

Introduction, Growth, Maturity, Decline

Pre-Introduction (PLC)

light advertising, pre-introduction publicity

Introduction (PLC)

Heavy advertising, PR for awareness, sales promotion for trial

Growth (PLC)

Advertising, PR, brand loyalty, personal selling for distribution

Maturity (PLC)

Ads decrease, sales promotion, personal selling, reminder and persuasive

Decline (PLC)

Ad/PR decrease, limited sales promotion, personal selling for distribution

Advertising, Sales Promotion and Less Personal Selling

Target Market Characteristics for:

-widely scattered market

-informed buyers

-brand loyal repeat purchasers

Routine Buying Decision

advertising, sales promotion

Neither Routine nor Complex Buying Decision

advertising, public relations

Complex Buying Decision

personal selling, print advertising

Different Methods of Promotion

Personal selling

Mass selling (advertising and publicity)

Sales promotion

Who Must Plan, Integrate, and Manage the Promotion Blend

Sales Managers

Advertising Managers

Marketing Managers

Sales Promotion Managers

Promotion Objectives

Informing

Persuading

Reminding

The Traditional Communication Process

source, encoding, message channel, decoding, receiver, feedback & noise happens in the middle of it all

Push Strategy

manufacturer promotes to wholesaler, wholesaler promotes to retailer, retailer promotes to consumer, consumer buys from retailer

Pull Strategy

manufacturer promotes to consumer, consumer demands product from retailer, retailer demands product from wholesaler, wholesaler demands product from manufacturer

Promotional Strategy

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion

Promotional Mix

the combination of promotional tools used to reach the target market and fulfill the organization's overall goals

Includes:

advertising, public relations, personal selling, sales promotion, social media

Advertising

most commonly distributed by traditional media, though increasingly through non-traditional media, such as websites, email, blogs, and interactive video kiosks in malls and supermarkets

Traditional Advertising Media

Television

Radio

Newspapers

Magazines

Books

Direct mail

Billboards

Transit cards

New Advertising Media

Internet

Banner ads

Viral marketing

E- mail

Interactive video

Advertising Advantages

1. Reach large number of people

2. Low cost per contact

3. Can be micro-targeted

Advertising Disadvantages

1. Total cost is high

2. National reach is

expensive for

small companies

Public Relations

Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding

The Function of Public Relations

1. Maintain a positive image

2. Educate the public about the company's objectives

3. Introduce new products

4. Support the sales effort

5. Generate favorable publicity

Communication

the process by which meanings are exchanged or shared through a common set of symbols

Marketing Communication As Senders

1. Inform

2. Persuade

3. Remind

Marketing Communication As Receivers

1. Develop messages

2. Adapt messages

3. Spot new communication opportunities

Traditional Advertising Model

1. impersonal

2. numbers driven

3. unquantifiable consumer behavior

Internet and Social Media Advertising

1. Personal

2. Direct communication

3. Feedback driven

4. Highly visible communication

The AIDA Concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action

PLC Stages: Informing

Introduction

Early Growth

PLC Stages: Reminding

Maturity

PLC Stages: Persuading

Growth

Maturity

Informative Promotion

Increase awareness

Explain how product works

Suggest new uses

Build company image

Persuasive Promotion

Encourage brand switching

Change customers' perceptions of product attributes

Influence immediate buying decision

Persuade customers to call (to see what its like)

Reminder Promotion

Remind customers that product may be needed 

Remind customers where to buy product

Maintain customer awareness

Sales Promotion

marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness

Personal Selling

planned presentation to one or more prospective buyers for the purpose of making a sale

Traditional Selling

Attempts to persuade the buyer into a specific point of view; creates a win-lose outcome.

Relationship Selling

Long-term relationships; creates a win-win outcome.

Social Media

promotion tools used to facilitate conversations among people online

Social Media allows marketers to:

1. manage brand images

2. engage with consumers

3. generate interest

Predictive Analytics

the process of using historical data to make assumptions about future results

software is typically based on a big data analytics engine

How is predictive analytics used in sales?

Lead scoring and prioritization

Sales process optimization

Accurate forecasting

Eliminating uncertainty

Hiring and HR

Employee Training

Predictive Analytics: Key Players

infer

IBM

SAP

dataxu

Oracle

insidesales.com

Marketo

Tableau

Predictive Analytics: Customer Use Cases & Application

Analytical CRM

Child Protection

Cross Selling

Customer Retention

Direct Marketing

Fraud Detection

PA: Analytical CRM

Uses predictive analysis in applications for marketing campaigns, sales, and customer services

PA: Child Protection

Child welfare agencies have started using predictive analytics to flag high risk cases

PA: Cross Selling

Organizations collect and maintain abundant data (e.g. customer records, sale transactions) as exploiting hidden relationships in the data can provide a competitive advantage

PA: Direct Marketing

Identify the most effective combination of product

versions, marketing material, communication channels and timing that should be used to target a given consumer

PA: Fraud Detection

Identify high-risk fraud candidates in business or the public sector through big data

PA: Customer Retention

Maintaining continuous customer satisfaction, rewarding consumer loyalty and minimizing customer attrition

PA in Sales: Lead Scoring and Prioritization

When you know which deals are the most likely to close, you can ensure that sales reps are spending their time on the right opportunities

PA in Sales: Sales Process Optimization

When you know which activities and content lead to more closed deals, you can structure your sales process for repeatable success

PA in Sales: Accurate Forecasting

When sales opportunities are scored and weighted based on historical success rather than gut feelings, managers can be confident in their forecasts

PA in Sales: Eliminating Uncertainty

Being able to make choices with a higher measure of assurance changes the entire workplace

PA in Sales: Hiring and HR

Predicting your headcount needs. Ebbs and flows in employee retention.

PA in Sales: Employee Training

Tracking employee performance as they complete training modules. Assess value of training.

PEPSICO Tips

1. Merchandise more clearly

2. Advanced Planning

3. Pay attention to core competencies

4. Iconic Brands: make, move, sell!

5. Industry requires flexibility

6. DSD System ( continue to look for ways to improve )

The Life Stage

of a company will in many ways dictate the most effective supply chain strategy to employ

What should a companies Supply Chain strategy support/accentuate?

its core competencies

Cost Savings

NOT a strategy, nor should it be the sole purpose of choosing a supply chain process ( customer value and organizational agility need to be considered as well )

Marketing Channels

A combination of organizations and individuals who perform the required activities to link producers of products to users of those products to accomplish marketing objectives

Channel Objectives

specifically stated, measurable, and consistent with firm's marketing objectives

Channel Strategy

an expression of a general action plan and guidelines for allocating resources to achieve the channel objective

Factors in Channel Strategy

1. buyer preference

2. relationship orientation

3. market coverage

Buyer Preference

letting the customers buy the way they want to

Relationship Orientation

building strong relationships with customers

Market Coverage

number of outlets marketing the product

Specialization and Division of Labor

1. Creates greater efficiency

2. Provides lower production costs

3. Achieves economies of scale

4. Aids producers who lack resources to market directly

5. Builds good relationships with customers

Retailer

a channel intermediary that sells mainly to customers

Merchant Wholesaler

an institution that buys goods from manufacturers ,takes title to goods, stores them and resells and ships them

Agents and Brokers

wholesaling intermediaries who facilitate the sale of a product by representing channel members

Factors suggesting type of wholesaling intermediary to use

1. Product characteristics

2. Buyer Considerations

3. Market Characteristics

Some reasons for choosing direct channels

1. greater control

2. lower cost

3. internet makes direct distribution easier

4. direct contact with customers

5. no suitable intermediaries (gotta sell it yourself)

Direct Channel

a distribution channel in which producers sell directly to customers

When Indirect Channels are Best

1. convenience

2. store loyalty

3. lower initial investments

channel

1

Key Issues in Channel Management

1. Choosing the type of relationship

2. Whole-channel product-market commitment

3. Conflict handling

4. Role of channel captain

Discrepancy of Quantity

the difference between the amount of product produced and the amount an end user wants to buy

Discrepancy of Assortment

the lack of all the items a customer needs to receive full satisfaction from a product or products

Conflicts may occur if channel members:

Have conflicting goals

Fail to fulfill expectations of other channel members

Have ideological differences

Have different perceptions of reality

Channel Partnering/Cooperation

the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage

By COOPERATING, channel members can:

speed up inventory replenishment, improve customer service, and reduce the total costs of the marketing channel

Intensive Distribution

selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product

Selective Distribution

selling through only those intermediaries who will give the product special attention

Exclusive Distribution

selling through only one intermediary in a particular geographic area

Logistics or Physical Distribution

how to get RM to factory and finished product to customer

increase profit, cut prices, improve customer service

Factors Affecting Physical Distribution Service Levels

1. info on product availability

2. order processing time

3. backorder procedures

4. inventory storage

5. order accuracy

6. damage in transit

7. online status info

8. advance info on delays

9. delivery time and reliability

10. compliance with customers

11. defect-free deliveries

12. handling adjustments/returns

Just In Time (JIT) Inventory

seamless process of getting a product or service from manufacturer to consumer

Areas Where Computers Help Physical Distribution Service

1. Continuously updated information systems

2. Electronic data interchange

Ethical issues may arise: Product Availability

1. false expectations about delivery speed

2. selling products that are not available

3. running out of popular products

Ethical issues may arise: Coordination of Physical Distribution

1. intentional delays in order confirmation

2. shifting of burden of holding inventory (take responsibility)

Supply Chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Supply Chain Management

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

The philosophy behind supply chain management

by visualizing the entire supply chain, supply chain managers can maximize strengths and efficiencies at each level of the process to create a highly competitive, customer driven supply system that is able to respond immediately to changes in supply and demand