Transcript May, 2002
Communication - Major Objectives Articulation of the brand Promotion of the Brand/product Articulation of the Brand Brand development Create associations Create awareness Create favorable impressions Brand management Remind of associations or create new ones Reinforce and remind for enhanced awareness Reinforce and remind of favorable impressions May want to simply refresh/refurbish May want to evolve the brand Communication message/approaches/content often emotional and affective here as you want to impact or create attitudes – positive ones! Communication message/approach/content can also be informational with a cognitive impact – want to generate customer learning about your product Promotion of Brand/offering Arouse interest in product features and advantages Provide information i.e. location, prices, etc. Encourage purchase intention Persuade Motivate action - Move to purchase – Make the sale! Communication message/approach/content is motivational to impact behavior – buy the product! Communication message/approach/content can sometimes be cognitive (informative) – to generate interest and draw attention Communication Vehicles Addressable/ customized Web Salesperson Telemarketing Direct E-mail Direct mail Catalogs Media Radio Newspapers Infomercials Magazine Television Mass Broadcast--One-way message Two-way With time lag In response Two-way Instantaneous In response Advertising Mass communication – One way Non-personal; customer passive TV, radio, print (magazine & news), internet, billboards, etc. Reach large numbers – blast at a broad based audience; but can also be reasonably focused by using the right media Institutional or corporate advertizing – Focused on corporate image. Product advertising – Focused on product Spillover depending on brand architecture (whether brand includes corporate name or is somehow identified with firm) Loss of power?? Cooperative Advertising Where the marketer (manufacturer or originator of the product/offering) shares advertising costs with downstream merchants Dollars go from the manufacturer to the retailer for (often local) advertising of the retailer but that features the manufacturer and brand prominently in the ad content Most often involves mass media, one-way, nonpersonal Programmed approach – certain $ per year; certain % of sales, ect. Formalized agreements with downstream intermediaries Some industries more the norm, others not so much (seen in auto and food industries, not so much in clothing) Cooperative Advertising Tactical fly in the ointment Constant source of conflict with downstream intermediaries Paid dollars but do not do the ads Do the ads but feature the brand/product/manufacturer in only smallest way Sets up competition at intermediary level Manufacturers at a disadvantage because it is impossible to monitor and ensure intermediary compliance and execution Often regardless of the disadvantage, manufacturers stuck because its status quo Legal issues – because it is vertical it can be seen as restraining trade. Also with large retailers, can be “hidden” price concessions Advertising Direct - direct mail, catalogs, infomercials Mass communication; non-personal Key issue – two way Some response is involved; some offering made directly that if the customer responds, means purchase Inherent - customer engagement; customer is activated Time lag is involved, customer has to mail in, call in, place order, etc. Promotion like though because of this response – major focus is to induce purchase act Cost is an issue – extremely high cost with relatively low response Effectiveness is in question Personal selling Inter personal; one-on-one High cost, adaptive message Traditional personal selling pretty much confined to business markets because of cost and transaction magnitude Number of sales management issues we touch on in CRM discussions – optimize sales performance relative to contact time & investment Professional selling practices vary hugely by industry Important with technologies; engineers and designers sometimes involved in team selling efforts Sales training a big issue for most companies – invest in specific dedicated programs Personal selling in consumer markets most often done with email and telemarketers (ugh!!) Promotions Marketing stimuli especially focused on an immediate response – motivating – buy the product! Sometimes called “forcing techniques” because of this though we know they don’t really force anything Attempt to get customer activated and engaged in immediate way Couponing, POPs, In-store price promotions, contests, sampling Loyalty programs probably fastest growing promotional technique Focus on immediate response sometimes results in “promotional spike” in sales Issues – costs, effectiveness, implementation Consumers vs trade Trade promotions – promotions to intermediaries – sales contests, trade allowances, selling incentive Trade Shows Critical in some industries – the major (only?) market facing mechanism Traditionally we see them as upstream market development (Jewelry, clothing, electronics) Major venue for getting to the enduser Some trade shows focused on consumers popping up – home shows, etc. Public Relations News releases, press conferences, feature articles Sponsorships of community support activities – associated with schools, charity, etc. Seen as highly effective because ostensibly neutral and not initiated by the firm/product Typically seen as no cost or low cost, but deceptively costly because precisely because it can be so effective Because not initiated or paid, content and message out of the firm’s control Negative PR – big problem…. Strategic Issues – Push versus Pull Push – Communication focused on next adjacent intermediary, who will then communicate to the next downstream adjacent intermediary and etc. until it gets to the enduser Pull – Communication focused on enduser; enduser then requests product from upstream intermediaries thereby “Pulling” the brand down through the distribution channel until it eventually gets to enduser – Starts with enduser and ends with enduser You see a mass media ad about a product that interests you Push Dealer Retailer Retailer • Communication to retailer • Personal selling effort • Promotions, push money, etc • Special offers to you • Deal pricing • Other promotion You! • You ask the retailer about the product Dealer • The retailer goes to the dealer and indicates there are customers with an interest in the product Mfgr • The dealer asks the manufacturer about the product, if it is available, can they provide it, etc., as there are customers who want it. Product is pulled through back to the retailer by your interest Often strategic gains from simultaneous push and pull You! Pull Mfgr • Communication to dealer • Promotions - contests, push money The new face of marketing communication EWOM Social Networks FB presence vs activity (Dave’s Killer Bread) – want to get in news feed Twitter – strong use in business markets, established group motivated to follow Digital media – more proactive Blogs Creates community Consistency with blogger/purpose Disclosure Videos – hope to go viral http://www.youtube.com/watch?v=mPwhMoQBg_8 http://www.youtube.com/user/AXE#p/c/C2A5D95162272B87 http://www.youtube.com/watch?v=-qQvXawnmjk Youtube (others?) Seeding issues – how do you get it started Product placement Products shown in movies or tv shows Peripheral routes to processing Customer is not involved/expecting marketing stimuli The new face of marketing communication Gorilla marketing Creates BUZZ through something unconventional, unexpected, often stunts Consumers attend; processing barriers broken down because it is so surprising Consumers know and understand they are being marketed to Low budget but high bang, creative http://www.youtube.com/watch?v=7EYAUazLI9k Also Expedia yellow suitcase dance Viral marketing Creates BUZZ through Word of Mouth (WOM) Self replicating, spreads as in epidemic Most often uses internet – youtube video or FB posts Sometimes coupled with promotion – you get a free T-shirt, ticket, etc., if you text 10 of your friends and tell them about X Consumers attend because of high entertainment, high shock value, emotional “hot button” Consumers see the message and know they are being marketed to http://www.youtube.com/watch?v=NlW8Z4SKc4E Stealth marketing or undercover marketing No sell involved, try to interest the consumer and get them intrigued No buzz, no WOM, focused only on the individual consumer involved Most often expose consumers to the product in person and get them to try the product Consumers attend and process but do not realize they are being marketed to Called the secret sell – criticized for being deceptive http://www.youtube.com/watch?v=p7LTEFCH54g Leveraging Secondary Brand Associations Positive associations/knowledge of other entities (their brand) imprints on the focal brand When brand is linked to entity, consumer infers associations, feelings, judgments that characterize the entity also characterize the brand Because we need cognitive consistency Creates new associations for the most part but can affect existing associations Sponsorships – Events, Athletes Origin – country Music – Events, sound Leveraging Secondary Brand Associations Integrated Marketing Communications (IMC) Effectiveness vs cost issues plague communication Effectiveness increases substantially when media, vehicles, approaches teamed together, even a simple pairing of print and tv commercial Presenting stimuli (information) in varied contexts and ways causes information to be encoded and processed in different ways. So multiple retrieval routes are established in memory. All routes converge on information and associations with the brand Recall and associations enhanced IMC involves the most effective mix and match of communication options to get this “multiple processing” to happen Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) IMC is strategic and programmatic use of communication across multiple media to maximize customer impact and response 360 degree view of the customer Considers all “touch points” with the customer IMC coordinates multiple communication modes to articulate brand and/or move to purchase Modes are consistent and complementary Messages are unified and focused on brand concept/positioning concept Strong segmentation and targeting are prerequisite Because IMC explicitly considers complementarity and synergies in communication messages and tools, it increases effectiveness, reduces costs, increases efficiency, and eliminates waste and redundancies