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Ch12 - Outbound Marketing Communications - Coggle Diagram

- - - - 1) Balance of Elements must be determined - Several factors affecting decision
        
        Target audience for promotion
        
        Stage of product's life cycle
        
        Characteristics of the product
        
        Decision stage of buyer
        
        Channel of distribution
      - 2) Cause of various promotional elements are often responsibility of different dept, coordinating consistent promotional effort necessary
        Promotional planning process designed to ensure integrated marketing communications (IMC) can facilitate this goal
    - - Promotional programs are directed to ultimate
        consumer, to intermediary or both
      - Programs for consumer products
        Usually use mass media cause of large number of potential buyers
      - Personal selling
        Used at place of purchase (i.e. retail stores)
      - Direct marketing
        Used to encourage first-time or repeated purchases
      - Integrated Marketing Communications (IMC)
        Marketing communications program that coordinate all promotional activities to provide consistent message to target audience
        
        To dev a successful IMC
        Use process that makes it easy to design & evaluate
        
        Each element has a distinct role and purpose in overall campaign
        
        Each tool used for different reason & needs to be eval against purpose & its contribution to overall success of marketing communications program
  - - - 1) Awareness
        Company trying to raise brand awareness may use website, search engine, traditional, online ads to max consumer exposure to product/drive to an online destination
      - 2) Interest
        
        Interesting product attributes highlighted to entice potential customers to learn more
        
        Company may use online video to increase interest in product, this time using experts to demo product and add credibility
      - 3) Engagement
        
        Potential customers invited to participate in product experience & interact with its marketing
        
        SM can be added to mix to encourage engagement by consumers
      - 4) Trial
        
        Customers obtain free samples or purchase product as limited trial or download
        
        Contests, samples, and limited trials can be communicated through direct mail, product microsites, SM
      - 5) Purchase
        
        Positive product experiences lead to product purchase
        
        Follow-up on product trial can be done through e-mail to reinforce a positive product experience, which can lead to product purchase
      - 6) Loyalty
        
        Ongoing positive product experiences lead to repeat purchases
        
        Customer loyalty can be encouraged through programs that reward continued purchases (e.g. loyalty programs). SM can help encourage interaction with brand
      - 7) Advocacy
        
        Loyal customers are rewarded with additional experiences and become advocates who recommend product to others
        
        Ongoing communications, often one-to-one, through e-mail newsletters, social networks, branded communities, & blogs can solidify connections with loyal customers, providing them with info & experiences to share with others
  - - - Includes ad methods that consumers increasingly avoid (TV, radio, newspaper, magazine)
    - - Involves SEO, PPC, use of SM to connect with consumers though social, blogs, social bookmarks, SM releases, microsites
  - - - They help guide strategy dev, creative dev, & media planning & buying, & program eval
    - - Focuses On
        Distributors, wholesalers, retailers
        
        Uses
        Direct response, personal selling, & trade promotions (trade allowances, trade shows, merchandising allowances, co-op advertising funds) to get results
        
        Results In
        Listings, sales, merchandising displays, feature pricing, inclusion in flyers
    - - Focuses On
        Consumers, Media, Public
        
        Uses
        Advertising, public relations, consumer promotion, direct response, event marketing & sponsorship, & personal selling to get results
        
        Results In
        Awareness, interest, engagement, trial, purchase, loyalty, advocacy
  - - - Reach
        Number of people who exposed to communication vehicle or message. Presented as % of total number of ppl in target audience
      - Frequency
        Number of times target audience exposed to communication vehicle or communication message
    - - Touch Points
        Any situation where customer comes into contact with brand or company
    - - Percentage of sales
        Amount of money spent on promo is % of past or anticipated sales
      - Competitive Parity
        Matches competitor's absolute lvls of spending or proportion of their spend based on market shares
      - All you can afford
        Allows money to be spent on promo only after all other budget items (e.g. manufacturing costs) covered
      - Objective & task
        Company determines promo objectives, outlines tasks to accomplish those objectives, & determines promo cost of performing those tasks
    - - Includes
        
        Online & offline approaches
        
        Advertising, public relations, sales promo, direct response marketing, event marketing & sponsorship, product placement & branded entertainment, personal selling, online marketing, SM marketing, mobile marketing
    - - 1) Messaging often evaluated before program fully developed to gauge responses so adjustments can be made before launch
      - 2) Once program is live, R may be fielded to measure campaign awareness & messaging elements (e.g. likability, message comprehension, attitude changes) toward brand
      - 3) Upon completion, each individual element evaluated against expectations. Online programs may look at page views & time on site. PR efforts may be measured on publicity mentions & ROI
      - 4) Promotional program evaluated against objectives. Looks at business results (e.g. sales, profitability, market share, expected ROI)
- - - - Message Content
        
        Most made up of both informational & persuasive elements (both intertwined & sometimes hard to tell apart)
        
        Informational & persuasive content can be combined in form of appeal to provide basic reason for consumer to act. Common ad appeals inc. fear, sex, humour
        
        Fear Appeal
        
        Suggest to consumer that they can avoid some negative experience through purchase & use of product/service, a change in behaviour, or reduction in use of product
        
        If used, advertisers must be sure appeal is strong enough to get audience's attention & concern but not so strong they tune out message
        
        R suggests overly threatening messages have negative effect on intention to adapt behaviour
        
        Sex Appeal
        
        Suggest to audience that product will increase attractiveness of user
        
        Found in almost any product category. But consumers are redefining what is acceptable use of sex appeals - Growing interest in positive messages about female & male roles & views on gender identity are changing
        
        R - Sex appeals generate greater response than other appeals & they increase attention by helping ads stand out
        
        R - BUT sexual content doesn't always lead to changes in recall, recognition, or purchase intent. Sexual content most effective when there's strong fit between use of sex appeal in ad & image & positioning of brand
        
        Humorous Appeal
        
        Imply either directly or subtly that product is more fun or exciting than competitors' offerings
        
        Advertisers believe humour improves effectiveness of ads, but some R suggest humour wears out quickly, losing interest of consumers
        
        Another con is effectiveness may vary across cultures if used in global campaign
    - - Ad Expenditures ($ in millions)
        
        Internet - 31%
        
        Television - 27%
        
        Direct Mail - 19%
        
        Radio - 7%
        
        Newspapers - 6%
        
        Outdoor - 4%
      - Television
        
        Rapid adoption of Internet-based services changing how consumers view TV-type programming & how marketers view TV as ad platform
        
        When TV ads well-designed & appropriately placed in media - It's very impactful & effective in messaging
        
        Many TV advertisers complement ads with other ad options online (e.g. online display ads, pre-roll video ads before online broadcast on of TV program)
        
        Changes in TV viewer behaviour that impact TV ads
        
        Viewers frequently change channels when ads appear during commercial breaks
        
        Some use digital recording devices to watch programs later
        
        Sometimes, ppl prefer to watch TV online where fewer ads exist
        
        Estimated that 420K CAs annually are cord cutters (ppl who decide to cancel cable or satellite & focus on online viewing)
      - Newspaper
        
        Decline in circulation rates & concerted move to digital formats
        
        Challenged with lower advertising revenues in digital age where news is accessible through multiple avenues
        
        3 Types of Newspapers
        
        Daily paid-circulation newspaper
        
        Free daily newspaper
        
        Free community newspaper
      - Magazines
        
        High quality media environment & provide excellent opportunity for advertisers to match magazines to their target market profile
        
        63% of CAs read exclusively print magazines, 17% read print in combo with more than one digital device
        
        Adapted well to online environ by providing added online content (e.g. searchable databases, blogs, contests, polls) & mobile versions that can be accessed on tablets & other mobile devices
        
        As a result of adaption - Almost half of all magazine readers read on digital platform
      - Radio
        
        Over age of 18 list to radio for 14.6 hrs/week on average, supplemented by additional 8.1hrs of audio streaming content
        
        Almost 1/4 (23%) stream radio online
        
        About 16% of adult CAs subscribe to satellite radio
        
        It's local, has low production costs = Affordable for both small & large advertisers
        
        720 private commercial radio stations in CA
        
        Responded to Internet with online broadcasts, downloadable podcasts, apps, blogs
      - Out-Of-Home (OOH)
        
        Casually referred to as outdoor; reaches consumers outside home in outdoor locations, in transit, or in commercial or business locations
        
        Effective for generating reach quickly to build awareness & interest in product
        
        Good reminder for current products
        
        Over last few years, experienced slight increases cause of its participation in IMC programs & realization by marketers that this media can't be turned off
        
        78% of shoppers aged 18-64 said they pay attention to OOH advertising
        
        57% of adults said they would take action after seeing OOH advertising (e.g. visiting website, searching for more info, visiting store, buying product)
      - Internet
        
        Relatively new medium
        
        Largest medium for ad expenditures
        
        Most popular options - Paid search, display (banner) ads, classified ads, video
        
        Unique feature of being interactive - Rich media
        
        Have opp to reach younger consumers who have developed preference for online communication
        
        Classified ads & video ads contributed to growth of online advertising by providing many advantages & characteristics of other media
        
        Video ads have benefit of going viral when ppl share with ads with friends
        
        Hard to measure impact - Online ads don't always result in clicks, but increase likelihood of purchase by 17% & increase visits to website by 40%
        
        Mobile Marketing
        
        Includes broad set of interactive messaging options that enable organizations to communicate & engage with consumers through any mobile device
        
        R indicates location data available from devices can increase effectiveness of mobile marketing effrots
      - Mobile
        
        Rapidly growing & rep more than 1/3 of overall Internet ad spend in CA
        
        Over 50% of mobile ad spend is for mobile search, then mobile display ads & mobile streaming video
        
        Rather than cannibalizing other traditional media formats, the spend on mobile is incremental spend
        
        R - Mobile ads most effective in increasing brand awareness & purchase consideration, next most common outcome is when consumers click on mobile ads they are likely to make purchase, followed by saving page to their device & adding product to shopping list
        
        Second most likely ad ppl pay attention too (after TV ads) with desktop, print, and radio far behind
    - - 3 Approaches
        
        Continuous (steady) schedule
        When seasonal factors are unimportant
        
        Flighting (intermittent) schedule
        Periods of advertising scheduled between
        periods of no advertising to reflect seasonal demand
        
        Pulse (burst) schedule
        
        Mix of flighting & continuous cause of increases in demand, heavy periods of promotion, intro of new product
        
        Some evidence says this is superior strategy
        
        R shows effectiveness of ads wears out quickly so many alternative forms of a commercial may be more effective
  - - - Consumer Promotion
        Short-term marketing tools used to encourage immediate consumer purchase (e.g. coupons, premiums, contests, loyalty programs)
        See figure 12.9 - Consumer Promotions (p.302)
      - Trade Promotions
        Short-term promotional tools used to generate support with wholesalers, distributors, retailers (e.g. trade shows, trade allowances & discounts, and cooperative advertising)
        See Figure 12.10 - Trade Promotions (p.305)
    - - Mobile Messaging
        4 Forms
        
        Common Short Codes (CSC)
        
        Dedicated short messaging codes of typically 5-6 digits that trigger subscriptions, donations, alerts, downloads, ability to access promotional content
        
        Used in conjunction with keywords to involve consumers in program
        
        Number provided by Canadian Wireless Telecommunications Association (CWTA) & must abide by their guidelines
        
        Short Messaging Services (SMS) AND Multimedia Messaging Services (MMS)
        Mobile communication approaches that allow marketers to send text messages or multimedia messages that contain graphics, video, audio to an opted-in customer's mobile device
        
        Email Messaging
        
        Overall use of mobile email has stagnated, app use for reading emails is still growing
        
        Must adhere to Canada's Anti-Spam Legislation & other marketing regulations
      - Matrix 2D Barcodes
        
        2D square or rectangular response code that, when scanned by mobile barcode reader or app, provides additional information, launches website, prompts downloads, or send SMS or email messages (e.g. QR codes)
        
        Used less frequently but can be very effective tool
      - Proximity Marketing
        
        Local distribution of marketing content to mobile devices that have opted in at specific geolocation (e.g. mall wifi)
        
        Most common in retail, shopping malls, hotels/tourism, airports, stadiums/sports, restaurant
        
        Provides consumers with offers from local merchants
        
        Bluetooth
        
        Low-power radio waves transmitted through beacons & wireless transfer text, images, audio, video data through local hotspot to Bluetooth enabled & activated devices
        
        R estimates 8.3 mil beacons activated worldwide in 2016, 8x the growth 1 year before
        
        Near Field Communications (NFC)
        
        2-way radio communication between smartphones & smartphone-type devices that can transfer images, documents, monetary transactions when 2 devices touch or are within few inches of each other
        
        Unlike beacons, can't send push notification & is short range
        
        Geofencing
        Use GPS to trigger event to happen when device enters certain geo area
        
        WiFi Hotspots
        Can be set up with free Internet access, and once customers log in to use free WiFi, can be sent location-specific content
        
        Mobile Check-In Services
        When consumers check into locations using apps to post their whereabouts & then receive offers from local merchants on their mobile devices
        
        Mobile Discovery
        Use of mobile apps to find local services that are rated in the area
  - - - 1) Prospecting
        
        Objective - Search for & qualify prospects
        
        Comments - Start of selling process; prospects generated through ads, referrals, cold canvassing
      - 2) Pre-Approach
        
        Objective - Gather info & decide how to approach prospect
        
        Comments - Info sources inc personal observation, other customers, company salespeople
      - 3) Approach
        
        Objective - Gain prospect's attention, stimulate interest, make transition to presentation
        
        Comments - 1st impression critical; gain attention & interest through references to common acquaintances, referral, or product demo
      - 4) Presentation
        
        Objective - Begin converting prospect into customer by creating desire for product or service
        
        Comments - Different presentation forms are possible; involving customer is critical; responding to objections is key; professional ethical approach is needed
      - 5) Close
        
        Objective - Obtain purchase commitment from prospect & secure customer
        
        Comments - Salesperson asks for order; different approaches include trial close & assumptive close; trial close can be used at any stage
      - 6) Follow-Up
        
        Objective - Ensure customer satisfied with product or service
        
        Comments - Resolve any problems faced by customer to ensure customer satisfaction & future sales possibilities
- - - - Social Network
        
        Online websites that allow members to create a network of friends & contacts to share messages, comments, videos, images as form of self-expression
        
        Most popular in CA - FB, LI, IG, Tw, Snapchat