Marketing Communication All Programs PDF

SPONSORSHIP Sponsorship can be defined as a commercial activity, whereby one party permits another an opportunity to exploit an association with a target audience in return for funds, services or resources - Gives exposure to particular audiences that each event attracts, in order to convey...

SPONSORSHIP Sponsorship can be defined as a commercial activity, whereby one party permits another an opportunity to exploit an association with a target audience in return for funds, services or resources - Gives exposure to particular audiences that each event attracts, in order to convey simple awareness-based brand messages - Suggests to target audiences that there is an association between the sponsored brand and the sponsor and that by implication this association may be of interest and/or value - Allows members of target audiences to perceive the sponsor indirectly through a third party and so di?use any negative e?ects associated with traditional mass media and direct persuasion - Provides sponsors with the opportunity to blend a variety of tools in the communication mix and use resources more e?iciently and arguably more e?ectively Degree of fit - The degree of fit or congruence between two parties (sponsored and sponsor) partly determines the relative e;ectiveness of the relationship - The degree of fit can be considered in terms of two main dimensions: 1- function-based similarity occurs when the product is used in the event being sponsored. For example, the piano manufacturer Bösendorfer sponsoring a Viennese piano recital 2- image-based similarity reflects the image of the sponsor in the event. For example, Airbus’s sponsorship of a major technical or even artistic exhibition serves to bestow prestige on all parties KFC In the latest incarnation of pink ribbon promotions, the prominent breast cancer advocacy group Susan G. Komen for the Cure has teamed up with KFC in a national “buckets for the cure” campaign which will run until May 23. But while the endeavor guarantees to bring big money to the cause, this unlikely partnership is rustling more than a few feathers in the breast cancer community – eating fatty foods, argue some detractors, increase the risk of breast cancer. It sends a mixed message, Barbara Brenner, executive director of Breast Cancer Action. “They are raising money for women’s health by selling a product that’s bad for your health… it’s hypocrisy” Most used types of sponsorship: SPORTS - sport – leading type of sponsorship - sports activities have been very attractive to sponsors, partly because of the high media coverage they attract - sport has the propensity to attract large audiences, not only at each event but more importantly through the media - sport provides a simplistic measure of segmentation  - visibly opportunities for the sponsor are high in a number of sporting events because of the duration of each event (e.g. Olympics or FIFA World Cup) COCA-COLA AT THE OLYMPICS Most used types of sponsorships: Program sponsorship - programme sponsorship should not be seen as a replacement for advertising - sponsors are not allowed to influence the content or scheduling of a programme - there is a requirement on the broadcaster to ensure that the sponsored credit is depicted in such a way that it cannot be mistaken as a spot advertisement - the line between product placement, brand entertainment and programme sponsorship become increasingly blurred most used types of sponsorships: Arts - a cheaper, more civilized alternative to sports sponsorship, and one that appealed more to women - many organizations sponsor the arts as means of enhancing their corporate status and as means of clarifying their name - organizations use sponsorship to establish and maintain favorable contact with key business people, other significant public figures - the sponsorship of the arts has moved from being a means of supporting the community to a sophisticated means of targeting and positioning brands arts sponsorship case - orange sponsors a range of music-related events, one of them being the Glastonbury Festival - one of the key facilities is the “chill’ n charge” tent - this is a bright orange-colored tent in which people can use the phone-charging equipment or the internet - over 50k people used the tent at 2007 festival - orange see their sponsorship of the festival as a way to develop their brand and purchase consideration POP Point – of – purchase communications or POP communications, also called in-store, point-of sales or POS communications, are powerful tool to activate a brand as they reach consumers at the point when they are making the decision about which product or brand to buy - 82% of purchase decision are made in-store - 40% of shoppers recalled seeing advertising in the store - Primary objective - direct the attention of shoppers and stimulate them to buy - 2 main forms: packaging and POP display - Messages. Timing, and placement are controlled by the retailer or manufacturer - POP communications are most e?ective when they form part of an integrated communications plan (for ex. They reflect what consumers have seen on TV or billboard ads.) Objectives of POP - Attract attention - Remind - Inform - Persuade - Create image Forms of POP POP communications can be defined as any promotional material placed at the POP, such as: - Interior displays - Printed material at shop counters - Window displays - In store broadcast - Video screen demonstrations - Shopping – trolley advertising - Shelf talkers - Coupon dispensers - Wastepaper baskets - Interactive kiosks Non physical forms of POP - The way the products are placed on the shelves (planograms) - Store image atmospherics - The scent and the music in the store Characteristics of POP as a marketing tool Strengths: - Good at providing info and attracting attention - Prior awareness of a shopper might be reinforced - Low costs - Possible to fine tune POP ads to reflect changing conditions Weakness - Messages are usually directed at customers who already committed (at least partly) - Di?iculties maintaining message continuity across large number of outlets - Sign, displays can be damaged by the customers MARKETING COMMUNICATION TOOLS: PUBLIC RELATIONS Concept of PR - Activity which in most companies has been structurally separated from marketing communications - Originated in the function of “press agent” the main activity of whom was to bridge the gap between the company’s point of view and media coverage of the company’s activities - “press relations” evolved into the “public relations” function - Staying in touch and creating goodwill with all types of audiences - In most companies and creating goodwill with all types of audiences +in most companies the PR function directly reports to the CEO PR The business of inducing the public to have understanding for and goodwill toward a person, firm, or institution Strength of public relations Weakness of public relations Publics Various organizations and groups with which a focus organization interacts (in strategic marketing can be called stakeholders) PR instruments and channels Communication with media (journalists). What not to do? - “I just sent you an email. Did you receive it?” - WhatsApp messages “when will the article be published?” - Relevance to journalist’s work field - Exclusive content. For a few channels? - Grammar/Names/Tone PR crisis A public relations crisis is any form of negative publicity that can impact a company’s public reputation and perception, as well as the bottom line Organizational crisis matrix identifies possible causes of crisis 4 main pashes of the crisis: - Scanning - Pre-impact - Impact - Readjustment Scanning: detecting first signs of significant change. Signals shouldn’t be ignored or blocked Pre-impact: increasing activity and preparation in anticipation of the crisis. Not preventing, but defusing crisis. Informing significant stakeholders Impact: crisis breaks out. Understanding if planned actions are working. Containment and neutralization Readjustment: recovery. Ensuring that the needs of stakeholders can still be met Evaluation: 30% mid-term 30% presentation 30% exam 10% evaluation of seminar’s task Lesson1: Marketing: managing competitive advantages, reaching customers, providing messages, production to customer, promotion, communicating, creating images of a brand. In the real life the specialist of marketing does a bunch of stuC. Marketing: creating and need à future customer doesn’t aware of their need, if they don’t have one you have to create one. We have to create a need: but we have to create some steps during the way. Marketing is touching all parts of the business marketing: the process of planning and executing… …. Conception, pricing, promotion and distribution of ideas, goods, and services …. to create and exchange value … and satisfy individual and organizational objectives (so marketing is btw the customers and organization) Marketing mix: product (features and product production), place (location and distribution), promotion(marketing channels and strategy), price(price strategy and profit margin) Communication: exchange of meaning between individuals using the common symbolic system Communication process: everything starts with a sender like the teacher that send a message and a receiver like students that give feedback (can be not verbal, like if a student is sleeping, or raising a hand). There are sender filter and receiver filters that complicate the process of communication like if the teacher start speaking in a class using a language that no students can speak. Communication Theory. Linear model of communication the filter sometimes is called noise Laswell’s communication model (1948) We have to ask questions to ourselves. Media is something that can deliver a message also cinema, book, a calendar ECect like sales (and you can evaluate at a period of time so you can track very quickly), improving reputation, brand image (harder one, but it takes longer time), eCect so doesn’t have to be quickly. Lesson 13/09 One-step flow of communication - The message reaches the recipient directly - Each recipient decides individually whether to respond to the message received - The role of personal influence Two-step flow of communication - The message reaches a specific group of recipients through media channels - The target audience receives the message from a recipient other than the original sender (e.g. An opinion-maker, influencer, etc.) - Personal influence influences the decisions of the target audience Ex: reel on Instagram, and then you say to someone about the reel. When you speak about it you forget some details, because it’s going through 2 senders and 2 receivers filters. So, the information can have some diCerences Multi-step flow of communication - Interactions between all actors in the process - Recipients can become message senders - E.g. social networks Marketing vs communication Communication: sends brand/organization messages Marketing: presenting and packaging outgoing messages (via products, services, oCers) Marketing communication? - Provides the means by which - Brands and organizations - Are presented to their audiences - With the goal of stimulating a dialogue leading to a succession of purchases Marketing communication in the context of marketing mix (4P) - Product (objectives and strategies: - Distribution (objectives and strategies: where to sell? Like online shop, physical shop etc.…) - Price (objectives and strategies - Marketing communication (objectives and strategies covers everything left like who are our customers, our slogan, our partners) if we are in this zone we have to know everything about all the others parts: product, distribution, price System of marketing communication In the graph we start our process from the external part of the circle so from: research and evaluation, positioning etc. The we found a target audience, and then we use direct marketing, advertising, sales promotion System of marketing communication: planned messages - Advertising - Sales promotion - Public relations - Direct marketing - Personal selling - Point-of-purchase - Packaging - Sponsorship - Customer service Plan messages: we have some control with these tools, everyone has a diCerent level of control, in fact we use a mixed of that, advertising has the higher level of control. Example: MC Donald, paper straw plan: so, the message not necessarily has to be “we change the straws”, but has to communicated that they are environment friendly. System of marketing communication: unplanned messages - Employee gossip and behavior (some control) - Facilities  - Transportation - Crisis management - News and media - Government investigation The diCerences between the planned and the unplanned is a minor control in the second one but doesn’t mean that the unplanned messages are bad. Lesson 20/9 The concept of Marketing as Exchange Components of exchanges - At least 2 actors - Each of whom can oCer something of values to the other - And who are prepared to enter freely into exchange process What about marketing? - Actors: business and customers - OCers: products or services ßà money, personal data - Buying and paying money freely. Also, the personal data. Marketing communication in exchange - Inform (e.g. make potential customer aware of an organization’s oCering) - Persuade (e.g. customers of desirability of entering into exchange) - Remind (e.g. audience about benefits and their need for exchange) - Reassure (e.g. make the case for why this is a good solution) - DiUerentiate (e.g. distinguishes product A from product B) why product is better than my competitor DRIP model: diCerentiate, remind/reassure, inform, persuade Each of these stages have diCerent duration, so diCerent target audience can have diCerent paths. Top of mind: where you stand in your category, like when I say fast food the first one that I think is McDonald Types of exchange Market Relational Redistributive Reciprocal exchange exchange exchange Exchange Independent od Create a long-term Between Exchange of gifts previous exchange supportive participants between relationship belonging to a participants with a collective unit connection Short-term Long-term Long-term Long-term orientation orientation orientation orientation Motivated by self- Motivated by Motivated by the Motivated by interest building a sharing resources strengthening the relationship with others relationship For example, a For example, a For example, a For example, consumer buys consumer regularly country’s tax system chocolate gifted for chocolate that he a close friend also  does not buy buys the same has a symbolic regularly brand of chocolate meaning Cocreation: crate a brand together between customers and the business, e.g. Lego contest every year, the customer can create the model of a Lego and then upload on the website, there will be a survey between the customers and the idea with most votes is going to be create and sell. So has a symbolic meaning. What is being exchanged? Some internal influences could be “how I see the brand”, external example could be “people around have diCerent opinion, and their opinion are important to me” INTEGRATED MARKETING COMUNICATION Process of understanding the needs of the customer (and other stakeholders), orientating the firm’s manufacturing and sales processes to meet those needs, and applying integrated thinking to all marketing and management decisions. Integration within organization Integrated marketing (IM) Tries to coordinate ALL company-based marketing message (sent by marketing mix (4P). unplanned messages, planned messages Integrated marketing communication (IMC) Refers to the strategic coordination of planned marketing communication areas (such as advertising, sales promotion, direct marketing, etc…) The need for integration? - Organizations based on specialization - Internal competition for resources - Isolation between departments - Need to respond quickly to marketplace challenges Integration VS specialization example Challenges in integration: information sharing - Integratuon exists when there is a continuous exchange of information between the units - “not-invented-here-syndrome” - Types of information/policies - Channels Challenges in integration: leadership and infringement - Preferences of new leader when organizational structure changes - Who gets what: budget and public relations. Possible solution: Tom Ducan’s zero- based communication planning - PR managers competition with advertising focus Challenges in integration: integrity problems - Ethical behaviour - “integration introduces many strangers into people mix” Evolution: from integation to 360 degrees - More diversified tools (more media used) increased the need for integration - Evolution led to concept of 360 degrees communication - IMC tires to create as many touchpoints as possible with the target group - Synergetic use of as many communication tools and instruments as possible - Less relevant measure the eUect of one single element in the communication mix (e.g. Advertising) - Monitoring and tracking (efectiveness of a total campaing at the brand level) IMC are about coordinating multiple and diverse tools targeted at multiple and diverse audiences Eves of integration (in the context of marketing communication) Horizontal vertical internal External Across marketing IMC supports Marketing inside the Requires external mix\business objectives of higher company which help to deliver an functions level keeps all the staC integrated message missions\obkectives informed and motivated Lesson 4: Marketing communication objectives - To increase awareness (the one that starting companies have it, we have to be very precise with the numbers ex. We want 40% of people from italy knonw my brand) - To infleunce purchasing ( ex. How to promote an e-commerce instead of the phycal store. Ex: how to increase the basket for customer. Ex: how can I get my customer in my store more often) - To stimulate brand swtiching (steal client from your competitors, brand switching doesn’t happen normally for very familiar brand. Ex: netflix biggest competitors is  sleep. When we are talking about competition we are taling about competiotion for people time) - To engage (Ex: if you are engage in the brand you can say to your friends to use that kind of brand etc. If we make pepole engage the chance of people stay loyal are higher. You can try to engage people in some participation, so activate the audience. Ex: contest) - To drive sales we focus on sales, active with pricing strategy. Ex: black Friday, the message is just about “come and buy”) - To change attitudes (this is the hardest to reach. We want to change beahavior, is really diCicult, “why a brand should tell me to change my life?”. Sometimes you can spedn decades in making changes in some behavior. Like food changes or electric cars. If the people are spectical doesn’t mean that we don’t have to do it) - … To change attitudes? - E. Bernays (“Propaganda”) - 1929 m. easter parade in New York - “torches of freedom” - “you’ve come a long way, baby”, “it’s a woman things”, “find your voice” After the war a lot of people were smoke. But not a lot of women they were smoking. “how can we make women smoke?”. During the period was something man do. So how we can make people that are not equal in society make them smoke. “torches of freedom” the message was, when you light up a cigarette you have the same power as a man and equality. He did a flash mob, during the easter parade, family festivity, a bunch of women started to light up cigarettes, first time in history. That’s would grab the attention. in addition to that, he contacts doctors, public leading and figures in determining what is considered healthy and unhealthy, that agree with him: sweets unhealthy. Bernays frames the doctor’s consent to promote Lucky Strike’s campaign by claiming that medical authorities prioritize cigarettes over sweets. He made a symbol. Another ex: “we have to google it” All his campaign were based on the woman equality. Making objectives SMART 1- S à SPECIFIC ex: want to be a better student “ what do you mean?, study more?, go to lesson?” 2- M à MEASURABLE ex: “how much better do you want to be?” 3- A à ACHIEVABLE 4- Rà RELEVANT 5- Tà TIME-BOUNDED “when?” SMART goal example: webinar Sign-Up Goal - Specific: I want to increase the number of sign-ups for our webinar by promoting is through social, email and our blog - Measurable: our goal is a 15% increase in sign-ups - Achievable/ Attainable: our last webinar a 10% increase in sig - Relevant: when our webinars generate more leads, sales has more opportunities to close - Time-bound: by April 10, day of the webinar Connection between marketing objectives and business goals. AIDA model AIDA x Netflix India When Netflix came to India, the biggest problem they faced was that Indians already has access to free and continued content on various platforms with the majority of houses having cable connections. Netflix had to appeal to a new market and convince them to take up Netflix. This Is how they used AIDA model: 1- To create awareness Netflix went the traditional way of outdoor advertising by placing huge posters of shows like Narcos, Friends, tec. They also had few original shows under their banner like Sacred Games which they promoted 2- Interest was created by focusing on the youth population of India. Customers would see the 1 monthly free trial on their website which would create about other shows that were being featured on Netflix 3- After experiencing Netflix for one month, the desire to continue with Netflix would become stronger with the original documentaries, shows, multiple original web series, a large Hollywood and Bollywood movie collection, features like support for  any device, personalized recommendations based on watching habits of viewers, high-resolution videos and much more 4- The action step would be achieved when Netflix oCered multiple plans subscriptions depending upon the pocket of the customer. The customer at this point is hooked to all that is being oCered and converting the customer here become easier Lesson 5 and 6: getting to know your audience Where audience is? Daily share in media according to generation Daily share in Internet according to generation Perception of audience - De Chernatony (1993) suggested that each consumer is exposed to over 550 advertisement per day, while Lasn (1999) estimated that this should be 3,000 advertisement per day - Attention grabbers: animation, unexpected camera angles, sexual attraction - Stimuli seed to be presented in ways that we can understand or create meaning - Stimuli need to be interpreted so that meaning can be attributed - Consumers try to evaluate product’s attributes by the physical cues of taste, smell, size and shape - Sometimes no diCerence can be distinguished, so the consumer has to make a judgment on factors other than the physical characteristic of the product - This is the basis of branding activity How audience decide? Customer decision-making process Example of reducing perceived risk Marketing steps in: - Three years campaign “discover racing” - Aim-reduce perceived risk - Installed call center, website (providing info/ticketing facilities) - Easy access of information Reaction of horserace Betting Levy High involvement decision-making vs low-involvement decision making High involvement decision-making - Individuals perceive high level of risk - A great deal of information is sought initially - Many media sources are explored - Individuals require a lot of information Low involvement decision making - Individuals is processed cognitively but in a passive involuntary way - Message repetition is necessary to define brands and create meaningful brand associations - Messages need to be shorter than in the high-involvement process and should contain less information S.T.P ( segmentation, targeting, position) Sequence in STP Example of segmentation (United Airlines; based on psychographic data) - Schedule optimizers: must reach their destination by a certain time and select their flights accordingly (they just have to go from point A to point B in time) - Mile accumulators: go out of their way to take flights that will build up their air miles entitlement - Quality vacationers: treat the travel as part of the holiday experience and so fly with carriers that provide superior services (customer service is the most important thing) - Frugal flyers: seek out the lowest-cost carriers, but still expect their flight experience to be a good one Market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to marketing actions Through this process specific target segments can be selected and marketing plans developed to satisfy the individual needs of the potential buyers in these chosen segments Types of segmentation Connect situation with segmentation type (geographic, demographic, psychographic, behavioral) 1- A company that sells luxury cars might look for customers with a certain income, age or job. For example, they might make ads for older, wealthy people who are likely to be interested in luxury cars 2- An online store target customers based on what they buy. For example, they might give discounts to people who buy from them often or send personalized suggestions based on what people have bought in the past  3- A fast-food chain might change its menu items and specials based on what people in a certain area like. For example, they might have spicy food on the menu in places where spicy food is common 4- A fitness brand might to reach customers based on how they live and who they are. For example, they might go after people who like to be active care bout heir health Targeting: which, if any, of the segments discovered should be the focus of the marketing program - All segments should be measurable – is the segments easy to identify and measure? - All segments should be substantial – is the segment suCiciently large to provide a stream of profits? - All segments should be accessible – can the buyers be reached with promotional programmes? - All segments should be diUerentiable - is each segment clearly diCerent from other segments so that diCerent marketing mixes are necessary? - All segments should be actionable – has the organization the capability to reach the segment? Positioning: how the brand is to be presented to customers in each market? the short early history of advertisement - First written ad was found in the ruins of Thebes in Egypt - It was a Papyrus created in 3000 BC by a slaveholder trying to find a runaway slave while also promoting their weaving shop - The first step toward modern advertising came with the development of printing in the 15th and 16th centuries - The first agencies date back as far as 1786 when William Taylor opened is oCice in London, today acknowledged as the first advertising agency in history - The primary service was to sell ad spaces for printers/newspaper companies Key characteristics of advertising - Advertising can engage audiences by creating awareness, changing perceptions/attitudes and building brand values, or by influencing behavior - Advertising has the capacity to reach huge audiences with simple messages - Advertising can be used to achieve a number of DRIP – based outcomes - Advertising is excellent at diUerentiating and positioning brands - Of all the tools in the communications mix, advertising has the greatest level of control - in some consumer markets adverting is a dominant from of promotion. For ex., >80% of Kellogg’s communications budget advertising is any paid, non-personal communication through various media by an identified company, non-profit organization or individuals types of advertising Media types in advertising Media types. ATL and BTL advertising Creative appeals in advertising: emotional - emotional advertising appeals are advertisements whose main purpose is to elicit aCective responses and to convey an image - emotional advertising refers to advertising that tries to evoke emotions in consumers rather than to make consumers think - emotional ads mainly consist of non-verbal elements such as images and emotional stimuli emotional appeal. Humor - humor attracts attention - to what extent humor also attracts attention to the brands? - Cognitive humor  - Sentimental humor - Satire humor Emotional appeal. Eroticism - Partial or complete nudity, physical contract between two adults, sexy or provocatively dressed person(s), provocative or seductive facial expression, and suggestive words or sexually laden music - Erotic advertising attracts attention (more car accidents occur near erotic billboards) - Most researches agree that eroticism has a negative impact on the image of the advertiser - The more the erotic appeal is related to the product, the more positive the responses to it become Emotional appeal. Warmth - Refers to the “positive, gentile, fleeting emotional, and psychological arousal that people feel from an advertisement usually from the love, family, or friendship - Target groups (most responsive) are females, emotional individuals and individuals with a lot of cognitively empathy (meaning that they can understand the situation of others) - Leads to more positive aCective responses, less negative feelings - More positive attitude towards the ad and towards the brand - Sometimes an enhances purchase intention Emotional appeal. Fear - Shows a certain type of risk (threat) that a person might be exposed to and which they can usually reduce by buying (e.g. insurance) or not buying (e.g. drinking when driving) a product - 5 main perceived risks - Several studies confirm that threat appeals are capable of sensitizing people to threats and of changing their behavior Emotional appeal. Shock - Tactics are unexpected and surprise, and oUend audiences because they violate norms, transgress laws or customs, or breach a social or moral code - These ads secure the audience’s attention - Recipients of these messages usually engage in more cognitive elaboration because they want to figure out what the message is all about - Shock ads often generate word-of-mouth and media publicity, thereby increasing their reach and impact Creative appeals in advertising: rational - Rational ads may contain one or several information cues (price, quality, taste, safety, etc.) - Talking head (character tells story) - Demonstration (how a product works?) - Problem solution (how can problem be solved? What happens if brand is not used?) - A testimonial (features ordinary people saying how good a product is ) Creative appeals in advertising: rational - Slice-of-life ads feature the product being used in a real-life setting, which usually involves solving a problem - Dramatization advertising is rather similar to a slice of life. Dramatization eCect - Comparative advertising can be used as a means to diCerentiate a brand from a competitor DIGITAL COMMUNICATION Areas of work: Social media is much more than “just Instagram” - Social networks ( Facebook, LinkedIn) - Blogs (blogs and video-blogs) - Microblogs ( X, Instagram) - Video-sharing networks (YouTube) - Forums (reddit) - Correspondence/chatting/calling platforms (WhatsApp, telegram) Tendencies: similarity of social networks - Even LinkedIn had stories - Instagram copies functionality from snapchat and TikTok - Advertising platforms are virtually identical across all social networks Tendencies: changes in platforms consumption Platform consumption - From a global perspective the average individual basis 8.4 social media accounts - If the average person maintained this usage over an average life span of 73 years, the end result is 5.7 years spent on social platform (145 min x day) - 90% of users follow at least one brand on social media - As of April 2023the fastest-growing social media platform is BeReal  - 81% of individuals believe social media has raised the bar for business accountability Tendencies: change in video consumption Video consumption - People are 52% more likely to share video content than other type of content like social posts, product pages and blog posts - 80% of consumers start deciding on purchase from watching YouTube videos about the product - 43% of consumers buy something they saw in YouTube ads despite the fact that 81% of users mute video ads Tendencies: influencers on social media Influencer - Social media influencers are a subset of digital content creators defined by their significant online following, distinctive brand persona, and patterned relationship with commercial sponsors - Influencers represent a new category of opinion leaders, with position somewhere between celebrities and friends, that has emerged with the growth of social media opportunities. Influencers might be described as self-made “microcelebrities” Influencer’s business model Reaction to influencers - 50% of Millennials place their faith in social media influencers’ product recommendations, surpassing their trust in their favorite celebrities, which stands at 38% - 88% of Millennials say the value authenticity in the influencers they follow - 3.8% million posts on Instagram had be #ad in 2021 - The minimum average cost of sponsored YouTube video with 1 million views is $2,500 Key characteristics of social media Why choose social media? Digital marketing Any marketing that uses electronic devices and can be used by marketing specialists to convey promotional messaging and measure its impact through your customer journey In practice, digital marketing typically refers to marketing campaigns that appear on a computer, phone, tablet or other device. It can take many forms, including online videos, display ads, search engine marketing, paid social ads and social media posts Digital marketing: from 4p to 5C Co-creation, Currency, Communal activation, Conversation Co-creation Allows customer to customize and personalize products and services, thereby creating superior value propositions - Product development strategy - Involving customers early in the ideation stage Currency Dynamic pricing – setting flexible prices based on market demand and capacity utilization - From standardized to dynamic pricing - In the digital economy, pricing is similar to currency, which fluctuates depending on market demand Communal activation Customers demand access to products and services almost instantly - In the sharing economy, the most potent distribution concept is peer-to-peer distribution - E.g. Airbnb, Uber, Zipcar Conversation Allows customers to converse about the messages with other customers - The rise of customer-rating systems such as TripAdvisor and Yelp - The proliferation of social media enables customers to respond to marketing messages digital marketing is not meant to change traditional marketing Digital marketing tool: email marketing - A form of digital marketing, that uses email to promote tour business’s products or services - Helps you build relationship with your audience - Drives traUic to your blog, social media, etc. - Segmentation of emails - Targeting users by demographic so you’re only sending people the messages they want to see most - Size of email - Spam - Cost - Legal issues Digital marketing tool: Google Display ADS (GDN) - GDN appear on over 3 million websites, over 650,000 apps, and across Google properties such as Gmail and YouTube - Asset-based ads. An asset is simply a part of an ad, such as: a headline, description, image or logo - Google uses machine learning algorithms to combine these assets in countless permutations across the web, continuously optimizing for performance Extend successful campaigns to new audiences across Google feeds Digital marketing tool: Google Search - Search ads allow you to display your website listing at the top of search results, and drive more traUic to your website - To start running Search ads, sign up for a Google Ads account - Charged when someone clicks on your ad and gets redirected to your site - Google keyword Planner - Look at the estimated search volume for your keywords, then decide how much you’re willing to spend on each keyword. The lower the Google keyword search volume, the cheaper it should be to win an auction - The exact prices are determined by how many other businesses are bidding on the same keywords Digital marketing tool: social network advertising - FBI, IG, YT, LinkedIn, etc. - Allows to choose objective for an ad campaign: consciousness, flow, interest, etc. - Control over budget, schedule, TA - Provides “estimated results” - Media, description, headlines, links are needed - Usually PPC approach is used - Use of call-to-action - Importance of CTR Use of AI tools: for copywriting, automation, creatives generation DIRECT MARKETING Concept of direct marketing - Direct marketing has been around since the invention of the printing press in the 15th century - The major impetus behind the growth of direct marketing was the development of the U.S. postal service, which made catalogues available to urban and rural dwellers  - Catalogues revolutionized America’s buying habits; consumers could now shop without ever leaving their home - While some organizations rely on the direct marketing solely to generate a behavioral response, for many others direct marketing is an integral part of the IMC program Objectives of direct marketing - Direct marketer usually seeks a direct response - The objectives of the program are typical defined in terms of behavioral - A typical objective is defined through a sought response - Not all direct marketing seeks a behavioral response! - Building an image, maintaining customer satisfaction, and informing and/or educating customers in an attempt to lead to future actions Presidential reelection campaign - Direct-response TV ads - Call an 888 phone number or visit joinobama.com and enter e-mail address and zip code to get more involved in Obama’s reelection eCorts Direct marketing strategies. One-step approach - Media is used directly to obtain an order - Goal is to generate an immediate sale when the ad is shown - For example, a TV ad in which the viewer is urged to phone a too-free number to place an order immediately Direct marketing strategies. Two-step approach - May involve the use of more than one media - The first eCort is designed to screen, or qualify, potential buyers - The second eCort generated the response (the order) - For example, the company has television commercials that tell potential consumers to watch for the mailers, or to go online to register to win ( and buy magazine subscriptions) Direct mail - Often call “junk mail” – the unsolicited mail you receive - Many advertisers shied away from direct mail in the past, fearful of the image it might create (the belief that direct mail was useful only for low-cost products) - Porsche, jaguar, Maserati use this tool - Keys to the success of direct mail are the mailing lists (database) - It is now possible to buy mailing lists, e-mail lists, and sales leads. The data for these lists are derived from a variety of sources such as customer purchase history and third-party lists - Many companies, have shifted from print to online, saving money and remaining more current - Retailers believe that consumers who do not read banner ads online or e-mail still read the mail delivered to their homes Direct mail case: Porsche  - Porsche developed a direct-mail piece that was sent a precisely defined target market: physicians in specialties with the highest income levels - This list was screened to match the demographics of Porsche buyers and narrowed further to specific geographic areas - The direct-mail piece was an X-ray of a Porsche 911 Carrera 4 written in the language of the medical audience - The cover letter invited the doctor to further investigate the symptoms, e.g. eyes lighting up, pulse rate rising - Furthermore, a reply card oCered the direct option to arrange for an examination date - This creative campaign generated one of the highest response rates of any mailing Porsche has done in recent years Catalogues - Although some predicted that catalogues would cease to exist with more use of the Internet, traditional catalogues are still an eCective way to reach consumers - The emotional appeal of the catalogue exceeds that of online catalogues and intimately is one of the best ways to drive consumers online - Many companies use catalogues in conjunction with their more traditional sales and promotional strategies - Pottery Barn, Bloomingdale’s Nordstrom, and Illuminations sell directly through catalogues but also use them to inform consumers of product oCerings available in the stores Catalogues: case of Ikea - Ikea prints 211 M. Copied of its product catalogues every year. That’s more than 20 time the population of Sweden - In 2013, printed catalogue came with an augmented reality feature - When you wave your smartphone over pages with digital content, variety of features appear - “X-ray” feature looks inside the compartments of furniture. The printed catalogue pages also interact with 3-D models of products, videos about products and digital how-to content - Ikea fans will see specially printed symbols, each an invite to launch new iPhone and Android smartphone apps for an augmented reality experience Broadcast media - TV and radio - Involves both direct-response advertising and support advertising - Direct-response advertising: product or service is oCered and a sales response is solicited, through either the one- or two-step approach - Support advertising is design to support other forms of advertising (for example, look in your mailbox for a sweepstakes entry) - Direct-response TV encompasses a number of media including direct-response TV sports, infomercials, and home shopping shows (teleshopping) Telemarketing - Sales by telephone  - Continued to decrease since 2004 - B2B companies continue to employ this strategy with some success - Problems associated with telemarketing include its potential for fraud and deception and its potential for annoyance Direct selling - Personal presentation, demonstration and sales of products and services to consumers in their homes/oCices - 3 forms of direct selling are: 1- repetitive person-to-person selling. The salesperson visits the buyer’s home job site, or other location to sell frequently purchased products or services (e.g. Amway) 2- nonrepetitive person-to-person selling. The salesperson visits the buyer’s home, job site, or other location to sell infrequently purchased products or services (e.g., Cutco) 3- party plans. The salesperson oCers products or services to groups of people through home or oCice parties and demonstrations (e.g., Tupper waver and PartyLite Gifts)