Lab Session Week 1-7 PDF

Lab session week 1 External Analysis Purpose is to find favourable and unfavourable developments in a changing environment that offer business opportunities and threats. Fields of interest - Consumers– changing needs with existing consumers, new segments not yet served - Industry...

Lab session week 1 External Analysis Purpose is to find favourable and unfavourable developments in a changing environment that offer business opportunities and threats. Fields of interest - Consumers– changing needs with existing consumers, new segments not yet served - Industry– trends and developments in the industry, suppliers technology etc - Competition– Levels of competition, substitution - Distribution chain – suppliers, distribution channels MACRO level trends and developments: DESTEP Levels of competition Verhage DESTEP Demographic developments Economic developments Social-Cultural developments Technological developments Ecological developments Political-legal developments Internal Analysis Mission and Vision Current marketing mix: Product, Pricing, Place, Promotion and People 7S model McKinsey (Organizational effectiveness) 7S framework Strategy (clear plan?) Structure (organization) Systems (routines and organization of work) Skills (of the employees) Staff (who is working there, retention, policies)  Style (leadership style and culture) Shared Values SWOT Internal : - Strengths - relatively strong compared to competition Company is very innovative - Weakness Company lacks technical skills External: - Opportunity – development from outside that offers a business opportunity Rise in demand for small scale business events - Threat New strong competitors entering the market Confrontation Matrix Strategic Options - Find combinations of either opportunities or threats and the relevant strengths and weaknesses. The option might be to capitalize on your strengths while improving on your weaknesses. Prioritizing Strategic Options Lab session week 2 Imagineering A methodology for experience design The ABCDEF process - Analysis - Brooding - Creation - Design - Exchange - Follow-up - All connected to the playground A phase= Analysis (more) information leads to better ideas Output of phase = information Supply and demand Supply= know your company, sector and industry Micro level = organization (key entity) = internal analysis Meso level= competition, status, trends of similar industry, industry laws etc. Macro= big societal trends - Destep Demand= needs, wants, values (of people?) A need is something thought to be a necessity or essential items required for life. There is an urgency to it. (food, water, shelter)\ A want is something unnecessary but desired items which increase the quality of living. (fatbike, luxurious holiday, designer clothes) Values are sustainable convictions which enable us to judge situations and behaviour (before and after) and help us to determine our position towards each other, Values are broad life goals. There is no direct urgency to full fill them but they are key for our happiness in long term. (health, happiness, success, a social life, a loving life) Value fit= when the values of your organisation, brand or even event, festival etc. match those of your target group, guest, visitor, customer, client etc. B phase= brooding Brooding is taking time for creative processes to start working Output phase= golden nuggets and creative sessions Golden nuggets= unique pieces of information that speaks to the imagination and that could be the starting point for a vision or a concept How does this differ from a marketing analysis? - Golden nuggets inspire - Golden nuggets you ‘feel’ - Golden nuggets are more emotional findings than logical, rational findings A forgotten product, a hero employee, a unique story, a hidden quality C phase = creation Output phase= vision, concept & intended experience Vision= view the organisation on its purpose and why it exists Concept= the key idea behind the organisation, product, event etc. Intended experience= short description of the experience you intend to create. D phase = design Output phase= a (concrete) product Note: something concrete but always an experience (in leisure and events) E phase= exchange - Involvement is key It is all about: - Interaction - Dialogue - Feedback - … and co-creating with the target group… Output phase= an engagement platform F phase = Follow-up An imagineer continuously questions which phase needs work in order to fine tone the experience… Use the playground! Output phase= ? Useful from year one: - Experience types (phase A,D) - ExperienceScape (phase A,D) - Staged/ intended vs. lived experience (phase A) - Functional vs. emotional experience (phase A,D) - Erlebnis vs. Erfahrung (phase A,D) Lab session week 3 Concepting (C-phase) Output: c-phase: 1. Vision 2. Concept 3. Intended experience Concept = an abstract idea A plan or intention. Concept = the key idea How does our sector look at/use concepts? Leisure and event concepts (often) have 4 characteristics: a. (often) not materialized yet b. Generalization of the overall idea c. It is therefore a plan; it drives the realisation d. Often used to convince, pitch or sell Concept vs Product Concept: - Abstract idea - Short descriptions - Not experienced by visitor - (C-phase) Product: - Something (very) concrete - Extensive description, visuals, objects etc - Actually experienced by visitor - (D-phase) Festival is concept Sziget is product 3 different types of concepts The concept scale - Operational concepts Concepts to run the operation Very detailed Use: control mechanism - Concept concepts to communicate the key idea. Not much detail; the essence. Use: communicate/pitch/ sell ideas - High concepts Concepts that drive complete organisations Very abstract/formula for everything Use: formula for the entire organisation (externally and internally) From concepts to creative concepts Use an existing format/principle people like/enjoy/inspires them + combine them with new elements/ formats/principles = new creative concepts with a twist What do you need? - Topic knowledge - Start-up - Inspiration - Creative sessions Concept definition instrument The molecule principle = a visual presentation by showing the essential components of a concept  1. The atoms = essential components 2. The rationale = a short explanation on how each atom should be interpreted 3. The title = the name given to the new combination of the atoms Redbull: Atoms: energy, extreme (sports) and show/ entertainment (the twist!) Intended experience: a short description in which the desired emotions, atmospheres and key principles of the core experience are explained as intended by the experience designer Intended experience: emotions - Explain and determine which emotions and feelings you want to trigger in the experience, such as - Happiness - Fun - Feeling connected - Loved - Trilled etc. Intended experience: atmospheres - Explain and determine which main atmosphere(s) the experience has, such as: - Safe - Exciting - Sensory - Stimulating - Relaxing - Playful etc. Intended experience: key principles - Explain and determine whether there are, and if yes, which key principles play a major part in the experience. Examples are: - Interaction - Rotation - Choice - Free roaming - Gamification - Co-creation etc. Lab session week 4 D-phase (design) Output: a (detailed and concrete) product Experience types year 1: Staged experience vs lived experience Erlebnis vs erfahrung Functional experience vs emotional experience Macro and micro experience (check theory year 1) Macro experience Anticipation – participation – reflection Micro experience ExperienceScape and Experience instruments Actual physical, emotional and psychological detailed visitor experience What can you use to get from concept and intended experience (c-phase) to a more concrete design (d-phase): 1. ExperienceScape 2. 9 experience instruments ExperienceScape: Design the product by looking at: People= participants and stagers Place = physical, location, decoration, in/outdoor, atmosphere etc. Objects= physical objects/ that play a role in the experience Rules= laws, social expectations/ norms, specific game rules Relationships = existing and new Bocking = flow, order of, moving through the experience Experience instrument 1 Interactive experience model Every experience has a: Personal context: previous experience, expectations, knowledge etc. Social context: friends, acquaintances, how buys it is, interactions etc. Physical context All are interactive Experience instrument 2 Entertainment: how to get people active/ activated 1. Personal entertainment: people who entertain you 2. Material entertainment: materials which activate you 3. Socio-ecological entertainment: your surrounding which activates you 4. Medial entertainment: media which activates you Experience instrument 3 Theming: using recognizable themes which directly gives inspiration and ideas for filling in the experience Examples: hotels, attractions, festivals It directly gives ideas how to do things Easy to use Adds directly something to the experience It is almost never unique or distinguishing It can be fun, but not unique Experience instrument 4 senses The 5 senses Taste, feel, see, hear, smell Experience instrument 5 Co-creation : value creation with multiple parties/stakeholders (including customers/guests) Experience instrument 6 Play Biology Essential for: 1. Physical development 2. Cognitive development 3. Social development 4. Emotional development Characteristics of play 1. Non serious character 2. Unpredictable outcome 3. Safe environment 4. Fantasy 5. Creative nature 6. With specific rules (play adds an element of fun) Experience instrument 7 Experience realms of Pine and Gilmore Absorption Immersion Passive Active Absorption and passive = entertainment (tv, theatre) Absorption and active = education (lecture, museum) Immersion and passive = esthetics (city trip bus, balloon trip) Immersion and active = (laser game, paintball game) Experience instrument 8 Experience model Goossens and Mazursky Before = pre-exposure = anticipation During = direct exposure = participation After = post-exposure = reflection Experience instrument 9 Storytelling Powerful tool Personal relatable, identifiable Always includes: 1. A storyworld 2. A plot (series of events) 3. Characters 4. A resolution (message/ insight) Marketing / branding/ experience stories for whole event Storytelling as a part of the event Storytelling as a part of sharing costumer experiences Lab session week 5 Purchase decision process Step 1. Problem recognition Step 2. Information gathering Step 3. Purchase decision Step 4. Post-purchase evaluation All these different stages are important The process can be either linear or circular Which steps are obsolete when he decision process is circular? Customer Journey - The customer journey is also relevant to tailor your communication effort to the phase the target group is in. See (awareness) = passive/ unconscious Think (consideration) = consider options Do (purchase/conversation) = buy product/ service or fill out contact form Care (loyalty) = repeat purchase, spread opinion Marketing objectives - SMART (model)  - About the position on the market, you want to achieve - Objectives on different levels: 1. Company objective: return on investment, becoming more profitable 2. Marketing objective: become market leader or build/ enhance a position in a certain market 3. Marketing communication objective: build brand awareness What is strategy? Originally: The art of Warfare Also used in business and politics It is about the best method to reach the objective Strategy: how to win the war Tactics: how to win the battle Marketing strategy - The ways you can reach your market objectives Example, becoming the number one brand - Strategic level, (tactical level, operational level) Long term planning, midterm planning, actions - Generic strategies (porter) Be cheaper, be better or be special Michael Porter: ‘A company without a strategy is inclined to try everything’ Low cost: economy of scale Large companies seek to grow The Boston Matrix tells you where Ansoff tells you how Portfolio Analysis – Boston Matrix Boston matrix Relative market share Relative market share high low Market growth high Star: needs investment Question mark: worth investing? Market grow low Cow: this is where the Dog: positive or negative money comes in result? Cash Cow – Low market growth, high relative market share -> generates high cashflow – strategy: milk Star – High market growth, high relative market share -> costs money, could become a cash cow – strategy: invest for growth Question Mark -Fast growing market, low relative market share -> will either become a cash cow or a dog – strategy: analyze to decide about investment Dog – Low market growth, low relative market share -> unprofitable(?) – strategy: divest Parc Asterix is not the largest theme park of France. Suppose the industry grows annually between 3 and 5 percent. Parc Asterix can be considered a dog. Harry Igor Ansoff Existing products New products model Existing markets 1. Penetration 2. Product strategy development New markets 3. Market 4. Diversification development If BUas expands its business by offering a Digital Marketing Course to companies, this would be an example of.. Market development: existing product, new market Porter’s 5 forces Competitive rivalry: many competitors? - Unique product? Loyal customers? Supplier power: do you need your supplier more than he needs you? Bargaining power of customers: can easily easily switch or do they need your product? - Switching costs - Access to information? - Price sensitivity? Threat of substitutes: alternative products or services Threat of new entrants: can new companies easily enter the market? Value disciplines – Treacy and Wiersema Product Leadership – always search for innovation, set the standard for others Customer intimacy - strong customer focus, know your customer’s needs and go the extra mile Operational excellence – moderate change in products and technology, focus on cost, efficiency and volume Excel in one of these value disciplines, while maintaining a threshold level in the others. Support with appropriate organizational mode Positioning - Central concept in marketing - Why should people prefer your product, when they have a choice? - Also depends on the stage I the process Buying influences - Demographic - Lifestyle - Situation - Psychological - Social (friends family etc) - Business to business – criteria to evaluate suppliers Consistent quality, acceptable price, customer fucus, excellent service, keeping promises. Segmentation- Targeting-Positioning Segmentation criteria - Divide to total market in homogeneous market segments - Criteria can be demographic but often other criteria are more helpful Geographic, psychological, behavioural - When designing a persona, take more into account than age, gender and social class Example, a sport watch Target strategies Undifferentiated marketing – targeting everybody (all segments) in the same way - Product which ‘everybody’ needs, but also here product variations can be offered  Concentrated marketing – targeting one specific segment - Niche marketing – specializing on a small segment Differentiated marketing – targeting more than one segment, each in different way Positioning strategies Focus on product features which make the product attractive for the target segment - A telephone with a better camera, a candy bar with less sugar - A festival with the best line-up - Possible when there are real differences Focus on features of the target segment - Show that the product fits a certain lifestyle. Some people buy 4-wheel drive SUVs because they see themselves as adventurous - Go-to strategy when differences between products are unclear Focus on certain situations where the product fits - Ice cream on a sunny summer day Combinations are often made 4C’s 4P’s ( or 5P’s (people)\) Consumer perspective The 4C’s of marketing - Consumer wants and needs - Cost to satisfy - Convenience to buy - Communication Company perspective The 4P’s of marketing mix - Product - Price - Place - Promotion Marketing mix and positioning Imagine a museum of modern art wants to position itself as an interesting place for young creative people. What would this mean for:  - Product / which wants and needs of the target group are interesting? - Price / cost? - Place / convenience to buy? - Promotion / communication? - People? Which factors need research? Product Leisure products are often services - Intangible (some services are more tangible than others – restaurant food vs live music) - Inseparable (you cannot take it home, example the gym) - Perishable (limited capacity – unsold tickets can not be kept in stock) - Variable (when people are involved there is more variety, personal touch) ( Intangible verwijst naar het ontastbare karakter van een dienst, waarbij het resultaat niet fysiek vast te houden is. Inseparable benadrukt dat de dienst onlosmakelijk verbonden is met het moment en de plaats van uitvoering, en niet mee te nemen is) Extension of the maturity phase In the maturity phase small product innovations result in extension of this profitable phase The maturity phase is profitable because it combines large sales volumes with a reasonable profit Decline Phase is triggered by emergence of better alternatives. Or changing needs Product portfolio Specialize in one product or offer multiple products? Serve one or more markets with different products? Serve multiple market Price Not just about money Based on cost (fixed and variable) + profit margin Based on the market (consumer, competition) Price differentiation based on different versions, buyers (student discount), time (low season vs high season), loyalty, order size etc. )When specific buyers pay less than others for the same product - price discrimination) Price can be a tool to stimulate customer behaviour (early bird price) Distribution Where and how can the consumer buy this? Physical places like shops or at the venue Online: web shop / website Intermediaries like Ticket master Multiple channels or just one. Convenience vs cost ➔ Booking.com takes around 12% of the room price as a fee. Why do hotels choose not to ignore this site? Lab session week 6 Marketing communications P is for promotion = marketing communication Communication part of overall strategy Mostly online but sometimes also offline Not only communication is online Products and place can also be online Corporate communications, more than just marketing -> all kinds of audiences Marketing communications aims at (potential) customers Messages should not contradict Marketing communications plan - Communications objectives - Target group(s) - Positioning / proposition Message - Instruments and channels - Budget - Planning Content samples Examples - Email newsletters - Online add - Social media post - Flyer Communication objectives Marcom objective contributes to marketing objective E.g. We want to attract more people to our concerts (mkt) Awareness Brand knowledge (Benefits/characteristics) Influence emotions around the brand Conversion (buy now, try membership....) Communication objectives Cognitive aims at knowledge: brand awareness, product characteristics, benefits Affective aims at emotions: positive feelings about the product, the brand Conative aims at behavior: visit website, come to venue/shop, buy, become a member Hierarchy of effects (classic model) Based on the rational consumer - First cognitive - Then affective - Finally, conative e.g.AIDA -> attention - interest – desire - action Hopefully valid for importantbuying decisions, but definitely notfor impulse or routine purchases From brain research we know that decisions are often based on emotions (reasons are found afterwards to justify) Target group Often same as marketing target group Differentiation by Channel Message Sometimes communications is aimed at other who can influence the final target group(e.g. study councelors who inform students) message Unique Selling Point (USP) – what makes your proposition stand out Benefits – why is the proposition interesting for the consumer (e.g. a computer thatweighs only 1300g is easy to carry) Positioning – how do you want your product to be perceived by the consumer? - Which benefits are more important for the target group? - Communicate what count most  Proposition – your promise to the consumer - Think of the intended conversion – what do you want them to do next? Question An event organizer want to attract younger people to an event that has been organized for more that 25 years. The visitors are mainly over 40. To make the festival attractive for a younger audience as well the line-up includes some younger artists as well. This is communicated via Instagram and TikTok showing a younger audience while playing the music of these artists This is an example of positioning A using expressive product characteristics B using instrumental product characteristics C using both expressive and instrumental product characteristics D using neither expressive nor instrumental product characterist Instruments/ channels Advertising Sales promotion Direct communication Media PR Sponsoring Social media posts Theme/campaign communication instruments Theme communication: advertising public relations sponsoring Campaign communication: Sales promotion Personal selling  Direct marketing communication Online Channels Website (company, product, landing page) Search (SEO SEA) Social media (organic and advertising) Email (newsletter) Affiliate marketing Landing pages Landing page – coming from ads, social, newsletters Not home page Trigger for conversion Repeat usp and or visual No distraction Call to action Search engine marketing Organic vs sponsored links SEO – search engine optimisation – adapt website for good organic results Sponsored links – paying for appearance when a search word is entered Keywords – which words used for search? What is a search engine? How does it work? Optimize for people using keywords What to do to optimize your webpages? Socialmedia in marketing Not invented for marketing Organic reach vs sponsored -> advertising Microtargeting Engagement – clicking, sharing, watching... Relevant content  ‘listening’ equally important Conversations = information Socialmedia -> website Generate traffic Social selling vs website Data ‘Controlled environment’ Advertising - Banners - Videos (e.g. youTube) - Search - Social - Affiliate - Offline - Cookies - Retargeting Reaching the right audience at the right moment Affiliate marketing Third party websites that attract consumers by their content That earn money by referring interested consumers other sites Pay per click or per transaction e.g. websites with content on wedding locations PESO Media can be Paid - ads, influencers etc, sponsored content Earned – attention in media Shared – social media (organic reach) Owned – website, own blog, etc the basis! Everything under control Question Excellent Events gets much attention via the social media accounts of their clients by offering interesting content. In terms of the PESO model this is an example of: A Paid media B Earned media C Shared media D Owned media Media mix Differentiation by - target group - communication preference - phase in customer journey Integration: generate site traffic, follow visitors with ads(retargeting), link to socials and back Use the media that support your message Lab session week 7 Google analytics “Free” (or paid) tool Google also uses the data for its own purposes Cookie based Advantage for Google: they can really track you from site to site Information gathered in dashboard/report Other tools There are paid alternatives who give you 100% data ownership. Example, ownership matomo Procedure monitoring Set goals -> determine Key Performance Indicators (KPIs) ->measure performance -> draw conclusions -> communicate with management KPIs – Key Performance Indicators Measure performance Derive KPIs from your goals KPI is a metric, a number, that gives you an indication of the performance e.g. - Visitors - Unique visitors - Bounce rate - Page views - Conversion rate Example GOAL: You want to attract new customers. What can be an indicator? The number of unique visitors to your website can be an indication. But what if they leave the site immediately?  Bounce rate: number of visitors that leave your site very quickly So both metrics are important Site traffic –the origin GA tells where visitors came from. Why is this useful? ➔ Improve your campaign Exit page What might this tell you? ➔ The visitor leaves after conversion ➔ Before conversion What can be measured - Visits/visitors (unique visitors – sessions) Page view Pages per visit Bounce rate Landing pages Exit Page - Origin Traffic sources direct traffic Indirect traffic - from search (organic/paid) - from other websites - from social - QR code Other features Average time on site Technical information Browser (Chrome, Firefox, Safari) Operating system (Windows, iOS, Android) Screen size Important to optimize your website Geographical features Applications of analytics Know your (potential) customer What are people looking for? Where are users coming from? Do I spend my money right? How does these things develop over time? Campaign effectiveness Improve website A/B testing On a more general level Is my marketing campaign successful? What do I need to improve my campaign? Do I reach my target audience On a more general level Is my marketing campaign successful? What do I need to improve my campaign? Do I reach my target audience Metrics and the customer journey - Awareness Who do we reach? Where do visitors come from Bounce rate - Consideration Page views, time spent on site Return visitors, origin? Exit page? - Purchase How many people put things in their basket How many leave without purchasing Where do they leave? How many fulfil the transaction? - Loyalty  How many reviews, review score, visit customer support, return to product pages KPIs for social media channels - (organic) Reach –how many people have seen your post - Engagement – interactions (click, view video, like, share etc.) Formula: (interactions / reach)*100% - Sentiment – positive or negative interactions Formula: (positive interactions / all interactions)*100% - Conversion – desired actions like going to website / landing page Rules and ethics Gathering data about people brings responsibility Be transparent, ask for explicit permission GDPR (General Data Protection Regulation) Keep the data safe... data breaches Privacy matters: legal, ethical, reputation Ethics: when something is not illegal, this doesn’t mean it is right. Ethics start where rules end (Luyendijk, 2017) Data driven marketing Data has become a key driver of marketing Good data help Knowing your target group Constantly improving your marketing communication Measuring the impact of your posts and your website Accountability – return on marketing investment Artificial intelligence Analytics tools depend increasingly on AI Generate marketing content using AI – tools Large data sets are essential for training AI SUMMARY Many things can be measured - Own website - Social media - KPIs to measure performance - Monitor and improve - Data driven marketing - Artificial Intelligence in marketing SUMMARY You can measure visitors, pages, origin, technology Can be applied to monitor and to improve Relation with the customer journey Responsibility, rules and ethics