Digital Marketing PDF

1 DEFINING MARKETING O THE MARKETING PROCESS « Because the purpose of business is to create and keep customers, it has only two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at profit. » PET...

1 DEFINING MARKETING O THE MARKETING PROCESS « Because the purpose of business is to create and keep customers, it has only two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at profit. » PETER DRUCKER 1. Marketing and Innovation have a central role for business success since they are concerned with the creation and retention of customers; 2. It is much more expensive to attract new customers than to retain existing ones; 3. Companies need to monitor and understand competitors, since it is to rivals that customers will turn if their needs are not being met. The essence of marketing is to create mutually profitable and long term relationships  A WHAT IS MARKETING Marketing has its origins in the fact that humans have needs and wants; - The organization function charged with defining customer targets and the best way to satisfy their needs and wants competitively and profitably; -Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of products and services to create exchanges that satisfy individual and organizational goals. THE MARKET PROCESS : CREATING AND CAPTURING CUSTOMER VALUE B UNDERSTANDING THE MARKETPLACE - CUSTOMER NEEDS Needs Wants Demands The basic Specific object that Wants for specific human might satisfy the products baked by an requirements need ability to pay MARKET OFFERINGS PRODUCT, SERVICE AND EXPERIENCES Market offerings Some combination of products, services, information or experiences offered to a market to satisfy need or want. Marketing myopia The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Customer value and satisfaction  C DESIGNING A CUSTOMER VALUE-DRIVEN STRATEGY Selecting customers to serve The company must first decide whom it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Choosing a Value Proposition The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. Marketing Management Orientations Marketing management wants to design strategies that will engage target customers and build profitable relationships with them. But what philosophy should guide these marketing strategies? MARKETING MANAGEMENT ORIENTATIONS THE MARKETING CONCEPT The achievement of corporate goals through meeting and exceeding customers needs better than the competition Customer orientation Integrated effort Goal achievement Corporate activities All staff accept the The belief that corporate are focus on upon responsibility for goals can be achieved providing customer creating customer through customer satisfaction satisfaction satisfaction THE DEVELOPMENT OF MARKETING PREPARING AN INTEGRATED MARKETING PLAN : THE 4 Ps In service businesses people Process Physical evidence  C MANAGING CUSTOMER RELATIONSHIPS U CAPTURING CUSTOMER VALUE Customer Relationship Management The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Customer-perceived value The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. Customer satisfaction The extent to which a product’s perceived performance matches a buyer’s expectations. CREATING CUSTOMER VALUE AND SATISFACTION CUSTOMER ENGAGEMENT AND TODAY’S DIGITAL AND SOCIAL MEDIA Customer-engagement marketing Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community. - Consumer-generated marketing Brand exchanges created by consumers themselves – both invited and uninvited – by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. CAPTURING VALUE FROM CUSTOMERS Creating customer loyalty and retention Good customer relationship management creates customer satisfaction. In turn, satisfied customers remain loyal and talk favorably to others about the company and its products. Growing share of customer The portion of the customer’s purchasing that a company gets in its product categories. Building customer equity The total combined customer lifetime values of all of the company’s current and potential customers. Building the right relationships with the right customers E THE DIGITAL AGE Digital and social media marketing Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices. Mobile marketing The fastest-growing digital marketing platform. Smartphones are ever present, always on, finely targeted, and highly personal. This makes them ideal for engaging customers anytime, anywhere as they move through the buying process. DESIGNING DIGITAL MARKETINF STRATEGY THE POEM FRAMEWORK  2 TARGETINIO MARKET SEGMENTATION, DESIGNING A CUSTOMER-VALUE-DRIVEN STRATEGY SELECT CUSTOMERS TO SERVE DECIDE ON A VALUE PROP Segmentation Differentiation Divide the tot M into smaller Differentiate the m offering to create segment superior customer value Create value for targeted customers Targeting Positioning Select the segment or segment to Position the m offering in the minds enters of target customers WHY BOTHER TO SEGMENT I -  Benefits sought segmentation Provides an understanding of why people buy in market ↳ Lifestyle segmentation Aims to categorize people in terms of their way of life, as reflected in their activities, interests and opinions. Âge segmentation ↳ Occasion segmentation: special Thanksgiving and Christmas ads CRITERIA FOR SUCCESSFUL SEGMENTATION S Effective : Are the segments significantly different in term of needs 2 Measurable: can I identify customers in the proposed segment and understand their characteristics and behavior patterns? 3 Accessible: what kinds of promotional campaign might work best for segment, how the product might best be distributed to reach the segment and so on ? H Actionable: does the company have the resources to exploit the opportunities identifie through the segmentation scheme? 5 Profitable: are the segments large enough to beprofitable to serve? TARGETING MARKETING Target market selection is the choice of what and how many market segments in which to compete. There are four generic target marketing strategies: 1. Undifferentiated marketing 2. Differentiated marketing 3. Focused marketing 4. Customized marketing UNDIFFERENTIATED MARKETING A single marketing mix Price Whole market Place > Product Pomotion DIFFERENTIATED MARKETING Marketing mix 1 Segment 1 Marketing mix 2 Marketing mix 3 · Segment 2 Segment 3 FOCUS MARKETING A single marketing mix Segment 1 Price Product Place > Segment 2 Segment 3 Promotion CUSTOMIZED MARKETING Marketing mix 1 Consumer 1 Marketing mix 2 s Consumer 2 Marketing mix 3 & Consumer 3 POSITION INC 1 The target market: Needs, demand... + profile 2 The product category; Competitive products Substitutes 3 The point of difference Benefice sought ( competition) Continuance, proof POSITIONING STATEMENT For people who... arget market... Need, cake about, have such an altitude, have a problem to solve The brand x is a brand of... Product category... A brand (product ) that will replace such products, or that could be used in such situations That brings... Point of differenc... Such a product benefit/ advantage, proved by such a product characteristic DEVELOPING A POSITIONING STRATEGY HOL TO CHOOSE THE POINT OF DIFFERENCE THAT IS TO SAY THE VALUE PROPOSITION ? DEFINING THE DIMENSIONS OF POSITIONING WHO ?. Which target market? Who are they?. What are their motivations? AGAINST WHO ? WHAT Who are the direct competitors ? What are the consumer benefits? Who are the indirect competitors? Emotional? Functional? Who are the substitutes? WHEN ? Usage situation, how do they use the product? When? Do they buy for themselves? POSSIBLE VALUE PROPOSITIONS Price / quality 2 Newness 2 Performance Reducing risk Customization Reducing costs Getting the job done Accessibility and convenience Design and usability ↑ Brand or status HOW CAN A COMPANY DIFFERENTIATE it'S MARKET OFFERING Product Employee / staff Image Services Chanel PRODUCT DIFFERENTIATION Form Conformance Reparability Features Durability Style Performance Reliability Design  SERVICES DIFFERENTIATION Ordering ease Delivery → short time Customer consulting Installation Maintenance and repair Customer training Miscellaneous PERSONNEL DIFFERENTIATION Competence Reliability Courtesy Responsiveness Credibility Communication IMAGE DIFFERENTION - your brand image , what people think Image: way the public perceives the company or its products ; - Identity: ways that a company aims to position itself or its products Must establish the product's character and value proposition Must convey this character in distinctive ways Must deliver emotional power beyond mental image Identity can be built by strong symbols, slogans, around a famous person, through a specific color, or a specific piece of sound music or events DEVELOPING A POSITIONING STRATEGY Clarity Consistency Successful positioning Credibility Competitiveness SLOGAN Must be memorable Include the brand name Include a key benefit Differentiate the brand Impart positive feelings COMMUNICATING THE POSITIONING By attribute orbenefit s By user 2 By the price and quality By the useor application By the class of product or service Withrespect to competition  PERCEPTUAL MAP IS A USEFUL TOOL FOR FINDING A POSITION IN THE MARKETPLACE 2 Identify a set of competing brands Identify the important attributes consumers use when choosing between brands 3 Conduct quantitative marketing research where consumers score each brand on all key attributes 4 Plot brands on a two-dimensional map REPOSITIONINC STRATECY  3 PRODUCT S BRAND MANAGEMENT Product → anything that can satisfy Branding → process which companies customer need But when we look distinguish their product offerings from the VS - at what the customer is being, it is competiton essentiay a benefit,whether the means permits customers to make associations eases the purchase decision are tangible or not affects customers' perception BENEFITS OF BRANDS : company value consumer preference and loyalty barrier to competition high profits base for brand extensions simplify the buying decision build customer's trust BUILDING BRANDS : 1 making decisions about the brand name 2 developing and positioning the brand in the marketplace NAMING BRAND The brand name strategies Brand name consideration Brand name category Family brand name - umbrella 1. Evoke positive associations People, Place, branding : PHILIPS 2. Be easy to pronounce descriptive, abstract, Individual brand name : PSG 3. Suggest product benefits evocative, brand Combined brand name : KELLOG'S 4. Be distinctive extensions foreign 5. Use numerals when meanings. emphasizing technology 6. Not infringe an existing registered brand name  DEVELOPPING BRANDS - A brand is created by means of the augmentation of a core product to add brand values. - Successful brands are those that create a set of brand values that are superior to those of other, rival, brands. BUILDING BRAND EQUITY ⑤ Stages of brand dvlp : Branding objective at · each stage :  BRANDIDENTITY- IMAGE Brand Image is the set of representations Several types of images can be measured: and associations acached by an individual – The perceived image, The desired image, to a product or a brand. The believed image BRAND POSITIONING Brand domain (reflection) Brand values Brand heritage ↑ (culture (Culture Brand positioning Brand reflection Brand assets (self-image) Brand personality BRAND MANAGEMENT ISSUES : 1. How to react to the development of own-label brands? Facing the threat posed by oun-label brands ( distributes brands) 2. Brand extension and stretching Stretching -> a launch of a new product into a completely different and unrelated category Ex : brioche pasquiet Extension -> the launch of a new or modified product into the broader market category in which the brand operates ex : coca 3. Co-branding Alliance de 2 marques dans S. Parallel co- branding. Ingredient co-branding la creation d'un nouveau service on produit  MANAGING BRANDS X PRODUCT LINES Product line: group of brand that are closely related in terms of the functions and benefits they provide Depts: refers to how many variants are offered of each product in the line Product mix: total set of brands marketed by a company that is to say the sum of the product lines offered Width: number product low lines an organization offers Ex : Philips offers a side product mix comprising the brands found within its product lines of television, audio equipment, video recorders, camcorders, and so on MANACING BRANDS Y PRODUCT LINE MARKETING OBJECTIVES Y STRATEGIES OVER TIME : PRODUCT LIFE CYCLE OVER THE PRODUCT LIFE CYCLE  NELV PRODUCT DEVELOPMENT 1 IDEA GENERATION Internal sources External sources I Scientist, engineers, marketers, salespeople and Examining competitors'products - designers through brainstorming Marketing research techniques - looking for unsatisfied - Collaborating with others (scientists,engineers, suppliers) open innovation customers, customers'problem solving approach / Lead users 2 SCREENING Having developed new product ideas, they need to be screened to evaluate their commercial worth. Formal Checklists Attractiveness of the market for the proposed product : Fit between the product and company objectives Capability of the company to produce and market the product 3 CONCEPT TESTING Once the product idea has been accepted as worthy of further investigation, it can be framed into a specific concept for testing with potential customers Group discussion Online marketing research Scenario method i BUSINESS ANALysis based on the results of the concept test and considerable managerial judgement, estimates of sales, costs and profits will be made. Marketing Analysis Target market (size and projected acceptance over a number of years) Various prices and its implications for sales revenue Costs Analysis Break-even Analysis Sensitivity Analysis Released Optimistic vs Pessimistic scenarios 5 PRODUCT DULP the new product concept is developed into a physical product Multi-disciplinary project teams are established - Computer-aided design and manufacturing equipment and software CAD-CAM 3D solid modelling I Product tested  6 MARKETING TESTING to launch the new product in a limited way so that consumer response in the marketplace can be assessed. - Simulated Market Test Set up a realistic market situation in which a sample of consumers chooses to buy goods from a range provided by the organizing company, usually a marketing research company. - Test Marketing Launch of the new product in one or a few geographical areas chosen to be representative of its intented market. ~ International Launch Rolling out products from one country to another one. 7 COMMERCIALIZATION seting a clear marketing strategy for the new product 1. The Target market (where it wishes to compete) 2. The differential advantage (How it wishes to compete) The new product positioning  4 INTEGRATED MARKETING COMMUNICATIONS : MASS COMMUNICATIONS TECHNIQUES THE PROMOTIONAL MIX 1. Advertising: any paid form of non-personal communication of ideas or products in the prime media (television, press, posters, cinema and radio); 2. Sales promotion: incentives to consumers or the trade that are designed to simulate purchase; 3. Publicity: the communication of a product or business by placing information about it in the media without paying for the time or space directly; 4. Sponsorship: the association of the company or its products with an individual, event or organization; 5. Direct marketing: the distribution of products, information and promotional benefits to target consumers through interactive communication in a way that allows response to be measured; 6. Internet marketing: the distribution of products, information and promotional benefits to consumers and businesses through Internet technologies; 7. Personal selling: oral communications with prospective purchasers with the intention of making a sale. INTECRATED MARKETING COMMUNICATIONS 1. Resource availability and the cost of promotional tools 2. Market size and concentration 3. Customer information needs 4. Product characteristics 5. Push VS pull strategies ADVERTISING good for awareness building because it can reach a wide audience quickly Repetition means that a brand positioning concept can be effectively communicated; tv is particularly strong Can be used to aid the sales effort : legitimize a company and its products Impersonal : lacks flexibility and questions cannot be answered Limited capability to close the sale  PERSONAL SELLING interactive : questions can be answered and objectives overcome Adaptable : presentations can be changed depending on customers needs Complex arguments can be developed Relationships can be built because of its personal nature Provides the opportunity to close the sale Sales calls are costly DIRECT MARKETING individual targeting of consumers most likely to respond to an appeal Communication can be personalized short-term effectiveness can easily be measured A continuous relationship through periodic contract can be built Activities are less visible to competitors Response rates are often low poorly targeted direct marketing activities cause consumer annoyance INTERNET PROMOTION global reach at relatively low cost The number off sites visits an be measured A dialogue between companies, and their customers and suppliers can be established Catalogues and prices can be changes quickly and cheaply Convenient form of searching for and buying products Avoids the necessity of negotiating and arguing with salespeople SALES PROMOTION Incentives provides a quick boost to sales Effect may be only short term excessive use of some incentives may worsen brand image PUBLICITY highly credible as message comes from a third party Higher readership then advertisements in trade and technical publications Lose control: a press released may or may not used and its content distorted SPONSORSHIP Very useful for brand building and generations publicity Provides an opportunity to entertain business partners Can be used to demonstrate the company’s goodwill to its local community or society in general Becoming increasingly popular due to the fragmentation of traditional media THE PROCESS OF COMMUNICATION STAGES IN DEVELOPING AN INTEGRATED COMMUNICATIONS CAMPAIGN ADVERTISING OBJECTIVES create awareness Stimulate trial Position products in the minds of consumers Correct misconceptions Remind customers of sales or special offers Provided support for the company’s sales force POSITIONING PRODUCTS AND / OR BRAND IN TERMS OF... 1. Product characteristics and customer benefits 2. Price quality 3. Product use 4. Product user 5. Symbols 6. Competition BASIC RECOMMENDATIONS FOR AN EFFECTIVE MESSAGE A clear understanding of the advertising platform is needed. The basic selling proposition should : -be important to the target audience -communicate competitive advantages Advertising message translates the platform into words, symbols and illustrations that are attractive and meaningful to the target audience INV ADVERTISING IS OFTEN USED TO BUILD BRAND PERSONALITY Self-expression-acts as a Reassurance badge Brand personality Communicates the brand’s Trustworthiness functional characteristics THE COPY STRATEGY - Context and communication objective - Customer promise/benefit - Message towards the target market ↳ Benefit : customer advantage linked to the product promise - Evidence (reason why) - Product characteristics that back up the promise - Tone and brand personality (humour, fear, informative, authoritarian, the big spectacle, aestheticism…) - Message atmosphere HOL TO SET THE ADVERTISING BUDGET ? 1. Percentage of sales 2. Matching competition 3. Objective and task EVALUATING ADVERTISING EFFECTIVENESS Measuring/testing Gauging the success of the adverts Pre-testing Takes place before the campaign is run May involve mock adverts with focus groups Limiting access to the advert-cinemas Post-testing Statistical analysis of sales data Brand recognition/recall SALES PROMOTION TO BOOST SALES 1. Increased impulse purchasing: the retail response to greater consumer impulse purchasing is to demand more sales promotion from manufacturers 2. Sales promotions are becoming respectable : through the use of promotions by market leaders and the increasing professionalism of the sales promotion agencies 3. The rising cost of advertising and advertising clutter : the factors erode advertising’s cost-effectiveness 4. Competitor activities : in some markets, sales promotions are used so often that all competitors are forced to follow suit 5. Measurability : measuring they sales impact of sales promotion is easier than for advertising since its effect is more direct and, usually, short-term SPONSORSHIP A business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage SPONSORSHIP OBJECTIVES 1. Gaining publicity 2. Creating entertainment opportunities 3. Fostering favorable brand and company associations 4. Improving community relations 5. Creating promotional opportunities  6 DISTRIBUTION MANAGEMENT WHAT IS A CHANNEL OF DISTRIBUTION ? It is the mean by which products are moved from producer to the ultimate customer t The development of supermarkets effectively shortened the distribution channel between producer and consumer by eliminating the wholesaler = Internet has changed the distribution of music and video, title reservation and groceries TYPES OF DISTRIBUTION CHANNEL FOR CONSUMER GOODS CHANNEL STRATEGY AND MANAGEMENT Channel strategy Channel Distribution Channel selection intensity integration Selecting the most effective distribution channel 1. Influences: - market factors - producer factors - product factors - competitive factors 2. Choosing the most appropriate level of distribution Intensity - intensive distribution The selective distribution improves brand - selective distribution image and allows higher margins - exclusive distribution 3. Deciding on the degree of channel Integration - conventional marketing channels - franchising - channel ownership CHANNEL STRATEGY AND MANAGEMENT Channel management I Selection Motivation Training Evaluation Managing conflict PHYSICAL DISTRIBUTION Physical distribution system Customer Inventory Transportation service control Material Order handling processing Warehousing