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Marketing - 4Ps (Price (Pricing psychology (psychological pricing…

- - - - act of paying activates the same area as pain processing
      - perception of pain outweighs the perception of value
    - - price presentation
        
        reduce pain of payment by pricing with 8s and 9s instead of a whole value pricing to suggest lower price
      - discounts and sales
        
        reduce pain of payment by showing customers a good deal
      - price as an indicator of value
        
        setting a higher price to indicate higher value
      - financing
        
        reduce pain of payment by allowing customer to pay later
      - anchoring and referencing pricing
        
        setting prices near a popular reference value
        
        external reference prices
        
        anchoring effect
        
        anchoring is the tendency of humans to rely heavily on the first piece of information we get
        
        attraction effect
        
        or decoy pricing
        
        by inctroducing a third option with no real value to the customer, their perceptions about the rest of the options can be altered and directed to one specific option
        
        the key is to focus on the product attobutes
        
        compromise effect
        
        retailers present a third option, which compromises the perception of having to bet too hard on either quality or price
    - - human consumers have limited time, motivation and cognitive abilites
      - consumers usually don't know their perceived value and WTP
      - these can change based on whims and can be influenced
  - - - the strategy of selling the same product to different customers at different prices
    - - self selection
        
        make price sensitive customers make more effort in finding coupons or sourcing deals
      - grouping
        
        different pricing for different groups
      - bundling
        
        customers with different value perceptions buy in different bundles
      - volume
        
        make price sensitive customers purchase a larger volume
      - location
        
        different prices for different locations, geographical regions or countries with different price sensitivity levels
      - product line
        
        offer different versions of a product for different deals for different price sensitivity levels
      - time
        
        make price sensitive customer plan in advance
  - - - Margin at the expense of volume
      - higher end of perceived actual price vs consumer perceived value
      - low consumer surplus
      - when companies set a higher price to skim the maximum revenues layer by layer from the segments willing the pay the higher price, the company makes fewer but more profitable sales
      - product quality and image must support higher price, and enough buyers must want it at that higher price, the costs of producing it must also be low enough that the advantage of charging more is not cancelled, finally, competitors should not be able to enter the market easily to under cut the higher price
    - - attract customers and hold volume
      - significantly lower consumer perceived value to actual price
      - high consumer surplus
      - Setting a low price for a product in order to attract a large number of buyers and a large market share, high sales volumes should allow falling costs, which allow them to cut prices even further
      - the market must be highly price sensitive, production and distribution costs must decrease as sales volume increases, and the low price must keep out competition and the penetration pricer must maintain its low price position, or else the price advantage would only be temporary
  - - - charging a constant, everyday low price with few or no temporary discounts
      - pros
        
        simple and consistent
        
        less consumer effort needed
        
        lower marketing costs
        
        better image and trust
    - - charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
      - pros
        
        more incentive levers
        
        most consumers like the thrill of bargain hunting
        
        can react quicker
        
        more opportunities to use differential pricing
        
        generally, both are used but hi-low pricing fares better
      - cons
        
        may lead to price erosion and excessive deal expectiations
  - - - setting the price based on the buyers' perception of value rather than the cost of producing the product
        
        Compare with competitors
        
        reference price
        
        assess extra features and appeal
        
        value drivers
        
        budget and affordability
        
        willingness to pay
        
        price relative to value
        
        consumer surplus
        
        different consumers may have different perceptions of value, but they will buy if they perceive that the actual price is below their perceived value : there is consumer surplus
        
        buying decision will depend on how much consumer surplus they get or the psychological factors involved
        
        choose a specific reference value, identify and quantify positive and negative value drivers, compute value added and perceived consumer value, determine price and consumer surplus
      - company first assesses the consumers' needs, then sets price based on consumer's perceptions and values, the targeted value and price drives targeted decisions such as the costs they can incur
      - difficulties
        
        value is subjective, hard to measure
        
        may ask, may use surveys to find out the perceived value
        
        if seller chargers more than perceived value, the product will bot sell, if they charge less, they will sell well but will get less revenue than they could have
      - two types
        
        good-value pricing
        
        offering the right combination of quality and good service at a fair price
        
        value-added pricing
        
        attaching value added features and services to differentiate a company's offers and charging higher prices
  - - - price at which total revenue equals total costs and there's no profit
    - - target costing
        
        starts with an ideal selling price based on consumer value and marketing mix considerations, then sets cost targets to ensure the target price is met
      - other factors such as internal and external considerations, such as the nature of the market and demand, competitors' prices and strategies, their own marketing mix, strategies and objectives etc
      - factors to consider
        
        competitors
        
        competition pricing strategies
        
        projected competitor response
        
        strength of competitors
        
        customer price sensitivity
      - price floor (production costs) vs price ceiling (customer perception of value)
    - - the price at which the firm will make the profit it is seeking
- - - - intermediaries
        
        offers producers greater efficiency in making goods available to target markets through their contacts, experience and specialisation, they can help companies achieve more than they can on their own
        
        transform the assortment of products made by producers into an assortment of products wanted by consumers
        
        where producers produce a small assortment in large quantities, consumers want a large assortment in small quantities
        
        marketing channel distributors buy large quantities from producers and break them down into smaller quantities and larger assortments as wanted by consumers
        
        important role in matching supply with demand
      - they add value by bridging time, place and possession gaps that separate goods and services from those who use them
      - key functions
        
        help complete transactions
        
        Contact
        
        finding and engaging prospective customers
        
        Matching
        
        shaping offers to meet a buyer's needs (manufacturing, grading, assembling, packaging)
        
        Promotion
        
        developing and spreading persuasive communications about an offer
        
        Negotiation
        
        reaching an agreement on price and other terms so ownership or possession can be transferred
        
        Information
        
        gathering and distributing information on the acting forces in marketing environment needed to pan and aid exchange
        
        help fulfil the completed transactions
        
        Financing
        
        acquiring funds to cover costs of the channel work
        
        Risk taking
        
        assuming the risks of carrying out the channel work
        
        Physical distribution
    - - direct channels
        
        no intermediary levels, company sells directly to consumers
      - indirect channels
        
        one or more intermediaries
        
        not necessarily desirable, as the level of control over the business decreases as channel complexity increases
      - a channel level is layer of intermediaries that perform some work in bringing the product and its ownership closer to the final buyer
      - all institutions within the channel are connected by some type of flow
        
        payment flow
        
        information flow
        
        flow of ownership
        
        promotion flow
        
        physical flow of products
      - internet channels also include both types
        
        own website
        
        aggregator website like taobao
  - - - contractual
        
        a VMS where independent firms at different levels of production and distribution join together through contracts
        
        franchise organisation
        
        a contractual VMS in when a channel member, called a franchisor links several stages in the production distribution process
        
        3 types
        
        manufacturer sponsored retailer franchise system
        
        manufacturer sponsored wholesaler franchise
        
        service firm sponsored retailer franchise system
      - administered
        
        a VMS that coordinates successive stages of production and distribution through the size and power of one of the parties
      - corporate
        
        a VMS that combines successive stages of production and distribution under single ownership: channel leadership is established by single ownership
      - consist of wholesalers, retailers and producers acting as a unified system, one channel member owns the others and wields so much power that they must all cooperate
    - - a channel arrangement in which two or more companies at the same channel level combine to follow a new market opportunity
    - - consist of one or more independent producers, wholesalers, retailers, each separate businesses looking to maximise their own profits, perhaps even at the expense of the whole system
      - no channel has much control over the other members and no formal means exist for assigning roles and resolving channel conflict
    - - advantages
        
        increased sales and market coverage
        
        opportunity to customise offerings for each segment
      - challenges
        
        hard to control
        
        may create channel conflict
      - a distribution system in which a single firm sets up multiple channels to reach more customer segments
    - - types
        
        horizontal
        
        occurs amongst firms along the same level of channels
        
        vertical
        
        different levels of channels
      - healthy vs prolonged
        
        healthy conflict can stop channels from turning passive or non-innovative
        
        prolonged conflict can disrupt channel effectiveness and harm channel relationships
      - disagreements among marketing channel members on roles goals and rewards
    - - disintermediation
        
        when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional pnes
        
        represents both opportunities and threats to producers and resellers
        
        must continue to innovate in order to avoid being swept aside
  - - - Upstream partners
        
        firms that supply raw materials, components, parts, expertise, information or services that are needed to create the product or service
      - Supply chain
        
        "make and sell' view, includes firms raw materials, productive inputs and factory capacity
    - - Downstream partners
        
        marketing or distribution channels that look toward the customer, including retailers and wholesalers
      - Demand chain
        
        "sense and respond" view suggests planning needs to start with customer
  - - - find out what target customers want from the channel and balance the needs against the feasibility and costs of meeting them, also against customer price preferences as well
    - - decide which segments to serve and which channels to use in which case while minimising the total channel costs of meeting customer service requirements
      - channel objectives may be influenced by nature of company, its products, its marketing intermediaries, competitors or environment
    - - number of marketing intermediaries
        
        determine number of channel memebrs to use at each level
        
        3 strategies
        
        intensive distribution
        
        strategy in which they stock their products in as many outlets as possible so the products are available where and when consumers want them
        
        exclusive distribution
        
        when the producer only guves a limited number of dealers the exclusive right to distribute its products in thei rterritories
        
        luxury brands, enhances distinctive positioning and earns greater dealer support and customer service
        
        selective distribution
        
        use of more than one but fewer than all of the intermediaries that are willing to carry the company's products
        
        can develop good working relationships with dealers and expect a better than average selling effort, also enhances brand image and allows for higher markups, resulting in greater value added dealer service
      - responsibilities of each channel member
        
        producer needs to establish a list price and a fair set of discounts for intermediaries
        
        producer must define each channel member's territory and be careful about where it places new resellers
        
        need to agree on price policies, conditions of sale, territory rights and the specific services to be performed by each party
        
        franchisees must meet company standards for physical facilities and food quality, cooperate with new promotional programs, provide requested information and buy specified food products
        
        producers and intermediaries need to agree on the terms and responsibilities of each channel member
      - types of intermediaries
        
        company sales force
        
        industrial distributors
        
        company should identify types of channel members available to carry out its channel work
    - - control
        
        company prefers to keep control
      - adaptability
        
        wants channel to be flexible so it can adapt to environmental changes, hence a channel involving long term commitments is greatly considered
      - economic
        
        likely sales, costs and profitability of different channel alternatives
  - - - a channel provides a means for facilitating value creation for all parties in a process of exchange
  - - - marketing logistics
        
        planning, implementing and controlling the physical flow of materials, final goods and related information form points of origin to points of consumption to meet customer requirements for a profit
        
        goal is to provide a targeted level of customer service at the least cost
        
        outbound logistics
        
        moving products from the factory to the resellers and ultimately to the customers
        
        inbound logistics
        
        moving materials and products to the factory
        
        reverse logistics
        
        reusing, recycling, or disposing of broken, unwanted or excess products returned by resellers and customers
        
        also feedback, information and intelligence
      - supply chain managment
        
        managing upstream and downstream value added flows of materials final goods and related information among suppliers company and resellers and the final consumers
      - importance
        
        improved logistics can yield tremendous cost savings to company and its customers
        
        explosion in product variety has created a need for improved logistics management
        
        gain powerful competitive advantage by using improved logistics to give customers better service or lower prices
        
        improvements in IT has created opportunities for major gains in distribution efficiency
    - - inventory management
        
        RFID systems
        
        know where everything is
        
        Smart shelves
        
        place orders automatically
        
        Just-in-time systems
        
        lean manufacturing, ordering on as needed basis and not keeping safety stock
        
        to reduce production and response times
      - transportation
        
        affects the pricing of products, delivery performance and condition of goods when they arrive
      - warehousing
        
        storage warehouses vs distribution centres
      - logistics information
- - - - features
      - style and design
        
        appearance of product
        
        usefulness as well as looks
      - quality
        
        free from defects
        
        consistently delivers the same level of performance
        
        fulfills product's positioning
    - - packaging
        
        design or producing the container for the product
      - labelling
        
        identifying the product and describing attributes, and providing promotion
    - - product support services augment products
      - continually assess the value of current services to obtain ideas for new ones
      - Assess the costs of providing these services
      - Develop a package of services to the customer to bring satisfaction and profit to the company
    - - Product line length
        
        number of products in the product line
      - Line stretching
        
        Downward stretching
        
        when market dominators or companies at the upper end to plug a market hole or stop lower end competitors
        
        Upward stretching
        
        For companies at the lower end of the market to add prestige for their current products
        
        Product proliferation
        
        when organisations market different variations of the same product
      - a group of closely related products have very similar function, are sold to the same consumer groups, are marketed to through the same outlets or price are in a similar range
    - - Consistency
        
        how close the products are in terms of channels, distribution, use
      - Depth
        
        number of versions offered in each product line
      - Width
        
        number of different product lines a company carries
      - Length
        
        total number of items the company carries in each line
      - consists of all the product lines that the company has for sale
  - - - between product and service continuum
      - features of services
        
        inseparability
        
        perishable
        
        variability
        
        intangibility
      - Service profit chain
        
        a chain that links service firm profits with employee and customer satsfaction
        
        satisfied and productive service employees
        
        internal service quality
        
        greater service value
        
        satisfied and loyal customers
        
        healthy service profits and growth
    - - suporting and motivaing customer service employees and orienting customer contact employees to work together to genreate customer satisfaction
    - - training service employees in the art of interacting with customers to satisfy their needs
    - - managing service quality
      - managing service productivity
      - managing service differentiation
  - - - Core customer value
        
        Why do they need it? What are they looking for in a product?
      - Actual product
        
        Features, design, quality, brand name, packaging
        
        What is the product?
      - Augmented product
        
        What do consumers get along with it?
        
        Product support, delivery and credit, warranty, after sale service
    - - Consumer
        
        Convenience
        
        buy frequently, immediately with minimal comparison and buying effort
        
        marketers would place them in easily accessible locations to make them readily available
        
        Shopping
        
        buy less frequently, often bought after spending time and effort on gathering information and making comparisons
        
        fewer outlets but provide deeper sales support to help customers in comparison effort
        
        Specialty
        
        unique characteristics or brand identity for a significant group of buyers willing to make a special purchase effort
        
        luxury, buyers normally do not compare products, they invest only the time needed to reach dealers carrying the wanted brands, exclusive distribution in one or two areas
        
        Unsought
        
        products that either consumers dont know about or would normally not consider buying
        
        require a lot of planning, promoting, personal selling and other marketing efforts
        
        bought by final customers for personal consumption
      - Industrial
        
        products purchased for further processing or for use in conducting a business
        
        the distinction is based on the purpose for which the product is purchased
        
        Materials and parts
        
        raw materials as well as manufactured materials and parts, component materials
        
        price and service are the major marketing factors, branding and advertising tend to be less important
        
        capital items
        
        industrial products that aid in the buyers' operations, such as installations or accessory equipment
        
        supplies and services
        
        operating supplies and repair and maintenance items, as well a business services such as maintenance and repair services or business advisory services, such services are often supplied under contract
        
        supplies are the convenience items of the industrial field as they are purchased with minimum effort or comparison
    - - Places
        
        Place marketing, use on cities , countries to boost tourism
      - Organisations
        
        organisation marketing is activities undertaken to maintain the image of an organisation
      - Ideas
        
        Social marketing is the marketing of an idea, a social idea, to encourage behaviour that will create individual and societal well being
      - Persons
        
        person marketing is marketing used to maintain image of a certai person
  - - - brand name selection
        
        distinctive
        
        translatable for the global economy
        
        easy to pronounce or remember
        
        extendable
        
        suggest product qualities or attributes
        
        capable of registration and legal protection
      - brand sponsorship
        
        Manufacturer's brand/national brand
        
        broader recognition
        
        improve by
        
        short run
        
        rolling out more discounts and coupons to defend market share
        
        long run
        
        invest in new brands, new features and new quality improvements to set them apart
        
        design strong advertising programs to maintain high awareness and preference
        
        find ways to partner with distributers to find distribution economies and improve joint performance
        
        sharpen value propositions
        
        Private label brand
        
        less pricey, gaining popularity
        
        control what they stock, where they go on the shelf, what prices they charge andwhat promo they get
        
        hard to establisj and costly to promote, but higher profit margin
        
        exclusive items give greater store traffic
        
        licensed brand
        
        license names or symbols of characters or celebrities, can provide an instant and proven brand name
        
        apparel and accessories sellers pay large royalties to adorn their products
        
        Co-brand
        
        the practice of using two different brand names of two different companies on the same product
        
        pros
        
        broader consumer appeal and greater brand equity
        
        take advantage of the complimentary strengths of the brand
        
        allow company to expand its existing brand into a category it might otherwise have difficulty entering alone
        
        cons
        
        must carefully coordinate their advertising, sales promotion and othe rmarketing efforts
        
        must trust that the partner would take care of their brand, anything that may damage the reputation of one brand would tarnish the other
        
        involve complex legal contract and licenses
      - brand positioning
        
        benefits
        
        beliefs and values
        
        engage on a deeper emotional level
        
        attributes
        
        least desirable level for positioning, as it's easily copied by other competitors
      - brand name development
        
        brand extension
        
        extends a current brand name to a new or modified products in a new category
        
        create immediate new product familiarity and acceptance at lower development costs
        
        may confuse image of main brand if products dont connect well with the core brand's values and build on its strengths
        
        may harm consumer attitudes toward other products carrying the same brand name, a good brand extension needs to fit the parent brand and the parent brand in return should give the extension competitive advantage in its new category
        
        multibrands
        
        companies often market many brands in a given product category
        
        offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space and capture a larger market share
        
        combined brands may reap more market share than any single band can capture by itself
        
        each brand ma only get a very small market share and none may be profitable, company may end up spreading itself too thin over different brands instead of building a single brand to a truly profitable level
        
        new brands
        
        company may believe the power of an existing brand name is waning, so a new brand name is needed, or it may create a new brand name when it enters a new product category and non of its current brands are appropriate
        
        can result n company spreading their resources too thin
        
        megabrand strategies
        
        weeding out smaller brands and focusing on one or two that can get market share
        
        Line extensions
        
        to meet consumer desire for variety, use excess capacity, or command more shelf space from retailers
        
        low cost, low risk way of introducing new products
        
        when a company extends its existing brands for new forms, colours, sizes, ingredients, or flavours of an existing product category
        
        an overextended brand name may cause consumer confusion or lose some of its specific meaning
        
        may find crowded choices overwhelming, and may complicate the assembly process and slow service times
        
        works best when it takes sales away from a competing brand, not when it cannabalises the company's other items
        
        brand management
        
        brand's positioning must be continuously communicated to consumers
        
        brands are not maintained by advertisements, but by customers' engagement with the brand and their brand experiences
        
        brand's people need to live the brand, so brand needs to train its people to be customer centred, and carry on the internal brand building to help employees be enthusiastic about the brand promise
        
        periodically audit the brand's weaknesses and strengths, turn up brands that need more support and brands that need to be dropped or need to be rebranded or repositioned because of changing customer preferences or new competitors
    - - relevance
      - knowledge
      - differentiation
      - esteem
      - competitive advantage
        
        ease of launching new product lines or brand extensions
        
        some defense against fierce price competitions and other marketing tactics from competitors
        
        higher power pf leverage when dealing with resellers
        
        basis for building strong and profitable customer engagement and relationships
        
        high level of awareness and customer loyalty
- - - - considerations when setting advertising budget
        
        product life cycle stage
        
        newer products require higher budgets and vice versa
        
        market characteristics
        
        building or taking market share, markets with heavy clutter or competition and undifferentiated brand all require higher budgets
    - - Media planning
        
        choosing amonst major media types
        
        selecting specific media vehicles
        
        coverage of target audience
        
        CPT (cost per thousand)
        
        determining rech, fequency, impact and engagement
        
        engagement
        
        ratings, readership, click through rate, happens inside consumers' head
        
        impact
        
        the qualitative value of the message
        
        frequency
        
        measure of how many times an average person is exposed to the ad
        
        reach
        
        percentage of people in target market exposed to ad in a given period of time
        
        choosing media timing
        
        seasonality of demand
        
        pattern of advertising
        
        continuity
        
        scehduling continuously
        
        pulsing
        
        scheduling in bursts within a given period
        
        flightation
      - Creative strategy: Message creation
        
        advertisements need to break through the clutter
        
        gain attention
        
        communicate well
        
        Madison and Vine
        
        represent the merging of advertisement and entertainment in an effor tto break through the clutter and create new avenues for reaching customers with more engaging messages
        
        advertainment
        
        make ads so entertianing that people what to watch them
        
        brand integrations
        
        makinf the brand an inseparable part of another form of entertainment: product placement
        
        native advertising
        
        1 more item...
        
        message strategy
        
        the general message conveyed to viewers, usually product benefits or features
        
        creative concept
        
        idea that will bring the campaign to life
        
        guided specific appeals that can be used in the campaign
        
        distinctive appeals
        
        meaningful
        
        believable
        
        distinctive
        
        message execution
        
        how the advertisier turns the creative concept into an ad
        
        find the best approach, style, choice or words, format, etc
        
        tactics/execution styles
        
        lifestyle
        
        fantasy
        
        slice of life
        
        mood or image
        
        musical
        
        personality symbol
        
        technical expertise
        
        scientific evidence
        
        testimonial evidence or endorsement
        
        also tone and format decisions
    - - Objectives
        
        an advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time
        
        possible advertising objectives
        
        informative advertising
        
        used when building a new product category, when need to build primary demand
        
        persuasive advertising
        
        important with increased competition to build selective demand
        
        reminder advertising
        
        important with mature products to build consumer relations and eep them thinking about the product
    - - communication effects
        
        indicate whether the ad or the mdeia communicated the message well, can be tested before and after ad runs
      - sales and profits effects
        
        compare past sales and profits with past expenditures or through experiments
      - returns on advertising investment
        
        net return on advertising investment divided by the costs of advertising investment
    - - increased social media and online sharing has boosted the need for ads to be globally uniform and standardized
      - this to some extent is beneficial as it cut costs and allows greater global advertising coordination, as well as a more consistent brand image
      - however need to consider local culture and adapt the ad to suit local tastes to some extent
        
        countries also differ in advertising and media costs and regulations so need to adapt to that as well
  - - - involve engaging directly with carefully targeted consumers or customer communities to obtain an immediate response and build customer relationsip
      - benefits
        
        buyers
        
        private
        
        interactive and immediate
        
        access to comparative information of many companies
        
        ready access to many products
        
        convenience
        
        sellers
        
        flexible
        
        access to buys not reachable via other channels
        
        low cost, efficient, fast alternative to reach markets
        
        measurable
        
        tool to build consumer relations
      - online marketing
        
        online marketing mediums
        
        online adveritising
        
        viral marketing
        
        Blogs
        
        online videos
        
        email marketing
        
        marketing via the internet using wesites search engines, online ads, promotions, emails, online videos
      - marketing websites
        
        engage customers to move them closer to a direct purchase or another outcome
      - branded community websites
        
        presents brand content that engages consumers and builds customer community around a brand
    - - using digital marketing tools such as websites, social media, mobile apps, online videos, emails, that engage customers anywhere via their digital devices
      - social media
        
        advantages
        
        engagement and social sharing capabilities
        
        cost effective
        
        real time marketing
        
        interactive
        
        targeted and personal
        
        immediate and timely
        
        User Generated Content
        
        Challenges
        
        still experimenting how to use them effectively and results are hard to measure
        
        very user based, consumers have extensive control over social media leading to campaigns backfiring if the marketing cannot prove to be a good part of the online experience
      - search engine advertising
        
        excellent targeting to motivated customers
      - online videos
        
        much better flexibility, pricing and results measurability than TV
  - - - the concept of carefully integrating and coordinating the company's many communications channels to deliver a clear consistent and compelling message about the organisation and its products
        
        due to marketing content coming from different parts of the company, and consumers dont distinguish between content sources the way marketers do, all the content merge into a signle message about the brand
        
        conflicting content may result in confused company images, brand positions or customers relationships
      - Content marketing
        
        creating, inspiring and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned earned and shared channels
        
        paid
        
        ads, banner ads, google Words
        
        shared
        
        social media, word of mouth, referrals
        
        earned
        
        media, blogger, influencer relations
        
        owned
        
        website, blog, content
    - - design message
        
        message content
        
        emotional appeal
        
        stir up negative or positive emotions that can motivate purchase, attracts more attention and create more belief in the brand
        
        customers feel before they think, and persuasion is emotional in nature
        
        rational appeal
        
        relate to audience's self interest
        
        moral appeal
        
        directed to audience's sense of right and proper, used to urge people to support social causes
        
        message format
        
        how it's presented, colour text, images
        
        message structure
        
        draw a conclusion and leave it to the audience
        
        present the strongest arguments first or last
        
        present a one sided argument or two sided argument
      - choose media
        
        non personal communication
        
        occurs over media that carries messages without response or feedback
        
        include atmospheres, designed environments to convey or reinforce a buyer's leanings, or events, staged occurrences that communicate messages to target audiences
        
        personal communication
        
        involves two or more people directlu communicating with each other
        
        effective because of real time interaction and feedback
      - determine communication objectives
        
        marketing funnel/ buyer readiness stages
        
        awareness of the product/need recognition
        
        knowledge/information search
        
        conviction/purchase decision
        
        purchase
        
        post purchase behaviour
        
        liking and preference stages/evaluation of alternatives
      - select message source
        
        message's impact depends on who's delivering it and it's affected by how the audience views the communicator
      - identify target audience
      - feedback and measurement
        
        understanding the effect of the message on target audience by measuring changes in parameters identified in communication objectives
    - - the specific blend of advertising public relations, personal selling, sales promotion and direct marketing tools that a company uses to engage consumers, persuasively communicate customer value and build customer relationships
      - major promotion tools
        
        personal selling
        
        personal interaction by the firm's sales force for the purpose of engaging customers, making sales and building customer relationships
        
        most effective at building buyer's preferences and customers' relations
        
        public relations
        
        involves building good relations with company's various publics
        
        obtain favourable publicity, building good company image, handling unfavourable rumours or events
        
        sales promotion
        
        short term incentives to encourage purchase of a product of service
        
        benefits
        
        attract customer attention
        
        offeres strong incentives to purchase immediately
        
        direct and digital marketing
        
        involves engaging directly with carefully targeted consumers and customer communities to both get an immediate response and build lasting customer relationships
        
        advertising
        
        any paid form of non personal presentation and promotion of goods, services by an identified sponsor
        
        benefits
        
        reaches masses of geographically dispersed customers at relatively low cost per exposure
        
        enables seller to repeat a message many times
    - - Budgeting
        
        comparative parity method
        
        setting the promotion budget to match competitor outlays
        
        companies differ greatly and each has its own promotional needs, no evidence that budgets based on competitors can prevent promotional wars either
        
        objective and task method
        
        developing promotional budget by defining specific promotion objectives, determining the tasks needed to achieve these objectives, and estimating the costs of performing these tasks. The sum equals the budget
        
        forces management to spell out its assumptions about relationship between dollars spent and promotion results. but is the most difficult method to use
        
        percentage of sales method
        
        setting promotional budget at certain percentage of current or forecasted sales or as a percentage of unit price
        
        wrongly views sales as the cause of promotion rather than the result, method is based on the availability of funds rather than opportunities, method does not provide any basis for choice of percentage except what has been done in the past or what competitors are doing
        
        affordable budget method
        
        setting promotion budget at the levelmanagment thinks they can afford
        
        completely ignores effects of promotion of sales, leads to uncertain annual promotional budget which makes long term planning difficult
      - promotion mix strategies
        
        push
        
        channel incentives
        
        reseller sales awards
        
        trade promotions
        
        a promotion strategy that calls for using sales force and trade promotion to push products through channels. The producer promotes the product to channel members who in turn promote it to customers
        
        pull
        
        manufacturer rebates
        
        advertising
        
        direct marketing
        
        a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating the demand vacuum that pulls the product through the channel
      - integrating the promotion mix strategies
        
        be customer centric
        
        all communications consumers receive should be consistent
        
        audit all communication expenditures
        
        plan all communications jointly
        
        create compatible themes for all communications
        
        create common performance measures
        
        centralise leadership for communication strategy
        
        analyse trends
        
        look for areas where communication is needed
        
        determine the strengths and weaknesses of each communication function