MRKT3008 Digital Communications Chapter 1 PDF

MRKT3008 Digital Communications Unit 1 Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Chapter 1: Strategic Brand Communication The Marketing Foundation Copyright © 2019 Pears...

MRKT3008 Digital Communications Unit 1 Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Chapter 1: Strategic Brand Communication The Marketing Foundation Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Resume Builders Exhibit an in-depth understanding of the integrated marketing communications functions and their role in marketing strategies Perform a situation analysis and propose appropriate IMC tactics and strategies for a product or service Create a company IMC campaign that includes both traditional and digital marketing tactics Evaluate the effectiveness of an IMC campaign Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Learning Objectives 1.1 Understand the importance of promotional function in the marketing strategy. 1.2 Recognize the role of segmentation analysis and target marketing process in an integrated marketing communication plan. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Introduction IMC is a holistic approach where all aspects of marketing (advertising, promotion, public relations, direct marketing, digital marketing, sponsorships, events, etc.) work together toward a common goal. IMC unifies all aspects of marketing communications to deliver a consistent customer-focused message using all the various communications channels available in today’s market. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Traditional vs. Integrated Marketing Traditional Integrated Company-driven Consumer-driven Goal: make a sale / increase Goal: understand and meet the profits needs of the consumer Media: print and broadcast Media: best media option to meet One-way conversation: the target audience speaks at the consumer Two-way conversation: speaks with Mass audience / general the consumer messages Personalized / Tailored messages Uncoordinated messages Coordinated messages Build awareness Call to action Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Learning Objective Understand the importance of 1.1 promotional function in the marketing strategy. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. What Does Marketing Do? Builds brand and customer relationships that generate: Sales and profits For nonprofits, memberships and donations Traditional goals have been to sell: Goods Services Ideas Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Marketing and Messages Marketing communication (marcom) involves: Advertising Public relations Sales promotion Direct response Events and sponsorships Point of sale Digital media Packaging Personal sales Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Brand Communication Includes: All marketing communication messages and brand experiences that create and maintain a coherent brand. Personal experiences that create and maintain a coherent brand image. Word of mouth. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Brand Communication - Airbnb Category Components Airbnb Examples Marketing "Belong Anywhere" campaign Host stories Local Communication & Official Messages promotions Community guidelines Safety protocols Brand Experiences Website/app consistency Booking process Host Brand Experiences communication Review platform Payment system Unique stays Host interactions Local guides Check-in Personal Experiences Guest Experiences process Property standards Host training Property photography Guest Host Experiences communication Support services Rating system Guest reviews Social media posts Travel blogs Host Word of Mouth User-Generated Content recommendations Community stories Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Brand Communication’s Role in Marketing Marketing is designed to build brand and customer relationships that generate: sales and profits. for nonprofits, volunteers and donations. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Principle (1 of 4) “The challenge is to manage all of the messages delivered by all aspects of marketing communication so that they work together to present the brand in a coherent and consistent way.” Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Exercise Go to D2L Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. What are the Most Common Types of Markets? 1. Consumer 2. Business-to-business (B2B) 3. Institutional 4. Channel Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Figure 1.1: Four Types of Markets The consumer market, which is the target of consumer advertising, public relations, and promotion, is important, but it is only one of the four types of markets. The other three are reached through professional and trade marketing communication. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Figure 1.1: Four Types of Markets Consumer Markets: Involves individuals and households buying things for personal use. People buy products they want to use themselves, not to resell or make. Example: Buying a new phone, going to a restaurant. Industrial Markets: Consists of businesses and organizations buying products for their own operations. These products might be used to create other products or run the business. Example: A car company buying steel and rubber to make cars. Institutional Markets: Includes places like hospitals, schools, churches, and government agencies. These places have specific needs, not always focused on making profits. Example: A hospital buying medical equipment, a school purchasing books. Channel Markets: Involves businesses that buy products from manufacturers and sell them to consumers. Middlemen like wholesalers (big buyers) and retailers (stores) are part of this market. Example: Buying shoes from a store that got them from a wholesaler. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does the Marketing Mix Send Messages? (1 of 4) Product Design, performance, and quality Communication works to: – build awareness of a brand. – explain how the new product works. – explain how it differs form competitors. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Figure 1.2: The Marketing Mix The four marketing mix elements and their related tools and marketing communication techniques are basic components of marketing. Brand communication is shown in the middle and overlaps the other three Ps— product, place/distribution, and price—because all have communication effects. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does the Marketing Mix Send Messages? (2 of 4) Pricing Based on: What the market will bear Competition Relative value of the product Consumer’s ability to gauge that value The price sends a “quality” or “status” message! Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does the Marketing Mix Send Messages? (3 of 4) Place/Distribution Includes channels used to make the product accessible to customers. Distribution channel also sends a message. Marketers may use a “push” or “pull” strategy. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Aspect Push Strategy Pull Strategy Business actively promotes Business attracts customers to Definition products directly to customers, seek out products themselves, "pushing" the message out "pulling" them toward the brand Traditional advertising (TV, radio, Search engine optimization (SEO) print) Direct mail campaigns Content marketing (blogs, articles) Trade show presentations Cold Social media engagement Word- Marketing Examples calling Point-of-purchase displays of-mouth marketing Influencer Email marketing Sales partnerships Customer reviews promotions Brand building Products pushed through Consumers demand products from distribution channels from Distribution Approach retailers, who then request from manufacturer to consumer via manufacturers intermediaries Exclusive boutiques By-request- Multiple retail locations Checkout only availability Store-within-store counter placement Trade show concepts Pop-up shops Place/Location Examples booths Active in-store promotion Selective showrooms Online Wide distribution networks High marketplaces Demand-driven visibility placement stocking Selective availability and customer Key Focus Wide availability and active selling demand-driven Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. The Price as an Element of the Marketing Mix This sign for McDonald’s highlights its $1 items. The $1 menu has become a competitive battleground for the fast-food category. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. What is the Added Value of Marcom? Added value is a strategy/activity making the product more useful or appealing to the consumer/distribution partners. The three Ps of product, price, and place add more tangible value. Marcom also adds psychological value. Consider Harley-Davidson Motorcycles. What is the “added value” of these products? Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. The Product as an Element of the Marketing Mix Nike's Jordan Brand (2024) Product: Limited edition Air Jordan releases with innovative design features (e.g., ankle support strap, etc) Price: Premium pricing ($150-300) creating exclusivity Place: Selective distribution through SNKRS app and premium retailers Promotion: Mix of digital drops, influencer collabs, and social media hype Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. What is Integrated Marketing Communication? Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Integrated Marketing Communication (IMC) Defined IMC is the practice of coordinating all brand communication messages and messages from the marketing mix decisions. Integration means every message is focused and works together. This creates synergy: the whole has more impact than the sum of its parts. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Why Focus on Brands? Let’s define “brand:” a perception, often imbued with emotion, that results from experiences with and information about a company, an organization, or a line of products.” Products carry brands, but so do organizations. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Figure 1.3: The Hierarchy of Brand Communication Brand communication begins with a brand strategy that is outlined in a marketing plan. Then specific plans are developed for the relevant marcom areas that are needed to implement the marketing and brand strategy. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does a Brand Acquire Meaning? Marketing communication delivers meaning-making cues and images to brands. This perception, called brand meaning, is the one aspect of a brand that can’t be copied. A brand is: – a perception loaded with emotions and feelings. – tangible elements such as a trademark or package design. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Principle A brand is an integrated perception derived from personal experiences with and messages about the brand. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does Brand Transformation Work? Brand identity cues are generally the brand name, but they can also be visual symbols. A logo is similar to a cattle brand in that it stands for the product’s source. A trademark is a legal sign that indicates legal ownership. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does Brand Transformation Work? Brand position and promise Brand position identifies the location a product or brand occupies in consumers’ minds relative to competitors. Brand promise identifies key selling points for the product. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How Does Brand Transformation Work? Brand image Brand image is a mental picture or idea about a brand that contains both associations and emotions. Brand personality humanizes an organization or a brand. It symbolizes the personal qualities of people you know. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Example – Levi’s Jeans Aspect Description The signals and symbols a Marketing Communication brand uses to communicate & Meaning-Making Cues its values Brand Meaning (Cannot be The unique perception and Copied) associations built over time Brand as Perception Feelings and emotions (Emotional) associated with the brand Brand as Tangible Physical and visible brand Elements elements Why competitors cannot truly What Makes It Unique replicate the brand Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Example – Levi’s Jeans Aspect Example (Levi's) Two horses logo (strength) Marketing Communication & Meaning- Quality never goes out of style message Making Cues Red tab signature American heritage storytelling Symbol of American culture Brand Meaning (Cannot be Copied) Represents youth rebellion Freedom and rebellion American dream Brand as Perception (Emotional) Self-expression Trust and authenticity Double-stitched seams Brand as Tangible Elements Distinctive pocket design Leather patch Historical authenticity Generational emotional bonds What Makes It Unique Cultural significance Accumulated brand stories over time Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Learning Objective Recognize the role of 1.2 segmentation analysis and target marketing process in an IMC plan. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. The Role of Strategic Offering – This is what the company Planning in IMC has to offer to the target audience. The whole marketing campaign is crafted to communicate this offering to the A marketing campaign is a series target audience. of actions/operations which work synergy to achieve a particular Message – Message includes the objective. It is designed with all verbal and non-verbal messages these components in place. which the company uses to communicate the offering to the target Goal – This is the ultimate objective audience. behind the marketing campaign. It could range from branding or Medium – It includes all the rebranding to a short-term revenue production, packaging, push. communication, distribution, and promotional (digital and traditional) Target Market – Target market is mediums used by the company to the specific and well-defined communicate the message. consumer segment within the Control – It is how the company company’s serviceable market which controls the message from being the business wants to sell its distorted after the campaign is products and services and direct its launched. Control is usually the marketing efforts to. function of the PR Team. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. STEPS in the Media Planning Process Communicatio Media Metrics n & Media and Analytics Objectives Step 1 Step 3 Step 5 Step 2 Step 4 Evaluation Target Market Media and Strategies recommend- ation Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 1 Target Market Selection “The tighter the focus on the target market, the easier it is to find the appropriate media to deliver a relevant message” Persona Development https://www.hubspot.com/make-my-persona Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. How do we Segment Markets and Target Audiences? Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Segmentation Segmenting means dividing the market into groups of people with similar characteristics in key product-related areas. Ways to segment markets: 1. Divide them by the type of market they represent, either business or consumer 2. Refer to markets either as: a. those who shop for and purchase the product. b. those who actually use the product. c. those who help the buyer make a brand choice. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Principle (2 of 3) Segmenting is efficient and cost-effective when it identifies those people who are in the market and also eliminates those who aren’t. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Segmentation Strategies (1 of 2) A market segmentation strategy enables a company to match customer needs and wants with its products. It is used because there are few homogeneous markets in contemporary marketing. Niche markets: tighter subsegments of a more general market segment. Individuals in a niche market are defined by a distinctive interest or attitude. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Types of Segmentation Demographic segmentation: divided by age, gender, ethnicity, income. Life-stage segmentation: based on a stage in the consumers’ life cycle. Geographic segmentation: uses location as a defining variable. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Segmentation Strategies (2 of 2) Psychographic segmentation: based on how people spend their money, interests and opinions, views of self. Behavioral segmentation: based on product category and brand usage. Values and benefits-based segmentation: based on underlying values or consumers’ needs and problems. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Figure 7.4: Market Segmentation Approaches Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Target Market Strategies Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Targeting the Best Audiences (1 of 2) Through targeting, the organization can design specific communication strategies to: – match the audience’s needs and wants. – position the product in the most relevant way to match their interests. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Targeting the Best Audiences (2 of 2) First, use the segmentation characteristics that separate a group of prospective consumers from others. Then, add additional descriptive variables until an ideal consumer group is identified. Each time you add a variable, you narrow the market as you come closer to the ideal target audience. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Figure 7.5: Narrowing the Target As descriptors are added to the identification of the target, the number in the middle of the target gets smaller. As this target is defined, the size of the group can be predicted. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Select Target Markets Target markets are those consumers most likely to purchase a company’s products / services Consumers have different backgrounds and lifestyles Not everyone buys the same product/service for the same reason Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Create Buyer Personas Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 1 Activity McDonald’s Group 1 – Happy Meal Group 2 – Muffin & Coffee Deal Group 3 – Quarter Pounder Meal Group 4 – Crispy Chicken Family Meal https://www.hubspot.com/make-my-persona Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 2 Communication & Media Objectives Set specific examples such as: 1. Reach 60% of target audience with a frequency of 4 within a 4 week period. 2. Reach a maximum percentage of target market a minimum of 5 times within the first 5 months of advertising. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 2 Activity Communicatio n and Media Objectives Padlet Development 1) Reach Objective 2) Frequency Objective https://padlet.com/gailmhq/McDonaldsMediaPl anning Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 3 Media Strategies Specific Media Strategies are based on analyzing and comparing various ways to accomplish the media objectives and then selecting the approach that is estimated to be the most effective alternative. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 3 Activity Media Strategies Padlet Development 1) Paid Media 2) Owned Media 3) Earned Media 4) Owned Interactive Media Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 3 Activity Media Strategies Padlet Development 1) Geographical Strategies 2) Scheduling Strategies Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 4 Media, Metrics and Analytics Specific Media Strategies are based on analyzing and comparing various ways to accomplish the media objectives and then selecting the approach that is estimated to be the most effective alternative. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 4 Activity Media, Metrics & Analytics Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Step 5 Evaluation Be accountable and responsible for your advertising and communications actions on behalf of the client. Evaluate Key Performance Indicators! (KPIs) Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Recap Learning Objectives 1.1 Understand the importance of promotional function in the marketing strategy. 1.2 Recognize the role of segmentation analysis and target marketing process in an integrated marketing communication plan. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Questions? Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.