Unit 9 Communications Strategies to Engage Customers PDF

Unit 9 Communications Strategies to Engage Customers Unit 9 - Contents 1. Building Engagement: Planning Paid, Earned, and Owned Media Communication Campaigns 2. Planning of a communication Campaign 3. The...

Unit 9 Communications Strategies to Engage Customers Unit 9 - Contents 1. Building Engagement: Planning Paid, Earned, and Owned Media Communication Campaigns 2. Planning of a communication Campaign 3. The Creative Strategy 4. Campaign Effectiveness 5. Conclusion Market-Based Management Copyright 2022  Unit 9 - Introduction “A brand is no longer what we tell the customer it is - It is what consumers tell each other it is.” - Scott Cook, Intuit Founder  Unit 9 – Part I Building Engagement: Planning Paid, Earned, and Owned Media Communication Campaigns" Market-Based Management Copyright 2022 1. Building Engagement: POEM Model Owned media Channels that the company directly The POEM Model controls. A framework that organizes Goal: Build long-term engagement the various channels and strengthen the brand's narrative companies can use for and identity communication campaigns, integrating online and offline Paid media Earned media strategies. The model Channels where Exposure gained through emphasizes the importance companies pay to organic efforts, typically of integrating these three distribute their content via customer advocacy or media types for a holistic and or advertisements. public relations. effective marketing strategy, Goal: Increase brand Goal: Build credibility ensuring consistency across awareness, drive traffic, and trust by leveraging both online and offline and generate immediate third-party communication channels. results. endorsements. 1. Building Engagement: communication campaigns categories Market-Based Management Copyright 2022 Nike’s Paid Media Campaign with Colin Kapernick Why would Nike use Colin Kaepernick in their advertisement? 'Dream Crazy' - Colin Kaepernick Nike Ad 2019 Market-Based Management Copyright 2022 1. Building Engagement: communication campaigns categories Market-Based Management Copyright 2022 Netflix Promotes Original Content with a Meme Market-Based Management Copyright 2022 1. Building Engagement: communication campaigns categories Market-Based Management Copyright 2022 Vaseline “Slugging” Trends on TikTok Market-Based Management Copyright 2022  Unit 9 – Part II Planning of a communication campaign Market-Based Management Copyright 2022 2. The Marketing Communications Landscape: 1980-2020 Regardless of the media channel, what are the core objectives of these marketing communications? Market-Based Management Copyright 2022 2. Planning of a communication campaign: process Identify target group/target audience Determine communication objectives Choose the communication strategy Decide on media mix Establish /communication budget Implementation and process control-Managing the IMC process 2. Effectiveness of marketing communications Regardless of the communication channel (digital, social, print, electronic, outdoor (fixed and mobile billboards) or promotional actions), all marketing communications have the same basic objectives: Build the image of a brand Marketing Communication Effectiveness Awards 2024, Generate interest in a product or service Motivate customers to act 2. Effectiveness of marketing communications The effectiveness of communication depends on: Intensity Scheduling Allocation The balance of Push and Pull strategies Example: Consider the results of a customer response study conducted to Intensity increase awareness of fresh produce offered by a local grocery retailer. For marketing communications to The target market was well defined (local neighborhood residents), the achieve their objective of generating a media selected (local TV and targeted social media ads) covered 75% of customer response, they must be the target market, and the campaign included products known to delivered with a certain level of appeal to the target market. The local TV and social media campaigns intensity, i.e., the number of times ran for five consecutive days in each of four time slots: early morning, they are reinforced to the audience. midday, early afternoon and late evening. 2. Effectiveness of marketing communications: calendar What is critical to achieving a significant customer response to traditional media advertising? Market-Based Management Copyright 2022 2. Effectiveness of marketing communications: calendar Chromogram. Companies must consistently produce new content and invest significantly to sustain high levels of advertising awareness within their target markets. In the context of advertising campaigns, “pulses” refer to a strategy of distributing advertising efforts over time, where actions or messages are launched intermittently or with variations in intensity. This technique makes it possible to capture the attention of the target audience at specific times and to maintain the relevance of the campaign over time. 2. Effectiveness of marketing communications: schedule For example, a television commercial could run in alternating four-week blocks and achieve 150 gross rating points during each exposure period. As shown in the Figure below, the ad generates a level of awareness during each four-week exposure period; it then declines during the four-week non-exposure periods. If a company can maintain its desired level of salience with pulses, it can reduce advertising costs and text attrition due to overexposure. Because consumers do not see the communication continuously, its novelty and appeal diminish slowly, and it is unlikely to cause customer irritation. 2. Effectiveness of marketing communications: Push-Pull strategy allocation Before designing communications, you must choose your strategy: Push-Pull. How do Pull and Push Strategies interact with each other? Market-Based Management Copyright 2022 2. Effectiveness of marketing communications: tools Source: Kerin, Hartley and Rudelius (2013) 2. Effectiveness of marketing communications: BTL-ATL assignment Source: https://labarbadelseo.com/que-es-la-publicidad-atl-y-btl/ 2. Effectiveness of marketing communications: BTL Examples Brand activations: Events or activities at points of sale or strategic locations that allow customers to interact with the product. Promotions: Offers, discounts, free samples, contests, or coupons for specific niches. Street marketing: Creative advertising in public spaces, such as murals, urban installations, or performances. Experiential marketing: Creating unique experiences that directly involve the consumer. Merchandising: Promotional material or branding at the point of sale. Events: Participation in fairs, exhibitions, or thematic activities. 2. Digital Communication Effectiveness: SEO versus SEM SEO (Search Engine Optimization) and SEM (Search Engine Marketing) are both search engine related strategies, but have key differences in their approach, methodology and scope. 2. Digital Communication Effectiveness: SEO Search engine optimization strategies broadly involve managing companies’ online content on their own website, social media, and outside websites. SEO efforts fall in one of two categories: 1. Off-page SEO: involves attracting links to a company from other sites and social media. Search engines deem sites with many linkbacks trusted, reputable and influential. 2. On-page SEO: includes ensuring a website is fast and technically functional and creating content and design elements relevant to search engines. Companies use regularly updated blogs, sometimes produced by outside entities, to increase their on- page SEO. Market-Based Management Copyright 2022 2. Digital Communication Effectiveness: SEM Paid Search Results for “Jewelry” What are keywords? How does the pay-per-click paid search advertising format work? Market-Based Management Copyright 2022  The World’s Most Popular Social Networks in 2021 Do you think this list has changed since 2021? How do you predict it will look in 2024? Market-Based Management Copyright 2022  The World’s Most Popular Social Networks in 2021 Do you think this list has changed since 2021? How do you predict it will look in a year? Market-Based Management Copyright 2022  Unit 9 – Part III The Creative Strategy Market-Based Management Copyright 2022 2. Planning of a communication campaign: advertising Decide the creative strategy (what to say and how?) ▪ Big idea, consumer insight, claim ▪ Justification (Reason why) ▪ Style and tone Keys for success: ▪ Grab the consumer's attention ▪ Be clear and comprehensive ▪ Have something relevant for the consumer and the brand ▪ Be memorable ▪ Take over the consumer's imagination 2. Planning of a communication campaign: advertising Big idea: What idea/s will be used as a platform for our strategy? The story behind it, the heart of the story. A big idea includes strong consumer insight. Consumer insight: How are we going to engage with our consumers? After the big idea. An advertising claim is a statement made in advertising about the benefits, characteristics, and/or performance of a product or service designed to persuade the customer to make a purchase (AMA) 2. Planning of a communication campaign: advertising The concept should: Reason why: ▪ Be important ▪ Rational concepts ▪ Connected to a unique characteristic of the product ▪ Emotional, positive ▪ Be credible ▪ Fear concepts ▪ Tell the truth about the product ▪ Stimulate the desire to try/test Style and tone: context Show daily life Show how the product highlights a lifestyle or our own image Represent a dream for the client Show humor Use music Include product symbol Highlight technical capability/scientific evidence Testimonies, etc.  Unit 9 – Part IV Campaign Effectiveness Market-Based Management Copyright 2022 4. Campaign Effectiveness: customer journey and response rate Customer response rate. Effective marketing communication initiatives begin with creating awareness and understanding among target customers. The effort then creates purchase intent among many customers, some of whom make the purchase.  4. Campaign Effectiveness: advertising effectiveness and response rate Customer Response Index (CRI) is calculated using values that Response Index measures the cumulative represent the conversion rates at each stage of the advertising percentage of final responses (positive funnel. actions) throughout the marketing funnel, considering intermediate stages. CRI = (Ad Exposure Rate) × (Ad Recognition Rate) × (Ad Comprehension Rate) × (Purchase Intention Rate) × (Purchase Rate) Engagement Index measures the interaction Penetration Index measures the effectiveness of a campaign in and interest generated by a campaign achieving its objective in terms of results achieved compared to the among the audience. total target audience. Engagement (%) = (Total Interactions / Total Penetration Index = (Achieved Results / Total Target Audience) × 100 Audience) × 100 Gross Rating Points measure the gross exposure of an advertising campaign. It combines two key elements: Reach: The percentage of people within the target audience who were reached at least once by the campaign. Frequency: The average number of times those people were exposed to the ad. GRP = Reach (%) × Average Frequency  4. Campaign Effectiveness: advertising effectiveness and response rate Customer Response Index CRI (current) = 0.75 * 0.68 * 0.43 * 0.33 * 0.61 = 4.4% CRI (improved) = 0.75 * 0.68 * 0.50 * 0.33 * 0.61 = 5.1% Campaign Leakage: percentage of potential customers who drop off or fail to proceed to the next stage of the advertising response process Market-Based Management Copyright 2022 4. Campaign Effectiveness: advertising effectiveness and response rate Example: Email Marketing Campaign Effectiveness What do the program metrics for the manager survey tell us? Market-Based Management Copyright 2022 Almetta’s Social Media Customer Response Index Almetta targets 5,000 consumers with the Instagram post shown in the figure. Market-Based Management Copyright 2022  4. Campaign Effectiveness: Social Network Engagement Index A post on Instagram has: 500 likes 50 comments 25 shares Total interactions: 500 + 50 + 25 = 575 Total audience (followers): 10,000 This means that, out of every 100 people reached, approximately 5.75 interacted with the campaign. An engagement of 5.75% reflects a moderate audience connection, capturing attention and generating interactions from a small segment of the total reached audience  4. Campaign Effectiveness: Gross Rating Points (GRP) 1.Reach: Represents the percentage of the total target audience that has been exposed to the advertising campaign. Example: If the target audience is 1,000,000 people and 600,000 people see the ad at least once, the reach is 60%. 2.Average frequency/OTS: Indicates how many times, on average, people within the reach saw the ad during the campaign. Example: If people within the reach see the ad 3 times on average, the frequency is 3. A GRP of 180 could be achieved by impacting: 100% of the target audience with an average frequency of 1.8 times. 90% of the audience with an average frequency of 2 times. 60% of the audience with an average frequency of 3 times. Social Media Marketing Strategy Market-Based Management Copyright 2022 Unit 9 – Part V Conclusion Market-Based Management Copyright 2022  Conclusion Marketing communications have many purposes, but they can be placed into three broad categories—paid media, owned media, and earned media. Companies must make their target customers aware of their products, continually remind them about their benefits and stimulate them to act. Building awareness of, comprehension of, and interest in products are essential to achieving high customer response levels. CRI is a diagnostic tool management teams can use to determine weaknesses in their marketing communications program. To be efficient and cost-effective, firms’ marketing communications must reach target customers and have an adequate message frequency to maintain desired levels of awareness, comprehension, and interest. Market-Based Management Copyright 2022  Conclusion Businesses must use both pull and push marketing communications to build market share. Pull communications are intended to create enough customer awareness and interest to motivate product demand. The customer demand creates a market pull on intermediaries, who want the business’s products on hand to satisfy customers. Push marketing communications are directed at intermediaries, with the intent of creating greater product interest, increasing access, and pushing products through the channel. Digital and social media marketing give consumers a potent means of communicating with one another and have shifted the marketing paradigm from a one-to-many to a many-to-many environment. Unlike traditional marketing techniques, social media strategies must be engaging, aligned with business objectives, and tied to measurable outcomes. Companies must take care to ensure their social media tactics drive real outcomes, such as increasing website traffic, capturing qualified leads, and making sales. Market-Based Management Copyright 2022