Introduction to Marketing (BA 100, Fall 2024) PDF

Introduction to Marketing Day 3 - Digital Marketing and Ethics BA 100 Fall 2024  Product Development It is crucial to keep feedback channels open at all times and at every step! Pricing Strategies Cost-Plus Pricing: Setting a price ba...

Introduction to Marketing Day 3 - Digital Marketing and Ethics BA 100 Fall 2024  Product Development It is crucial to keep feedback channels open at all times and at every step! Pricing Strategies Cost-Plus Pricing: Setting a price based on the cost of production plus a markup. Value-Based Pricing: Setting prices based on the perceived value to the customer rather than the cost of the product. Competitive Pricing: Setting prices based on what competitors are charging. Penetration Pricing: Introducing a new product at a low price to attract customers and gain market share, then gradually increasing the price. Skimming Pricing: Setting a high price initially to maximize profits from early adopters, then lowering it over time. 3 SWOT Analysis  SWOT Analysis Team Project With table teams: -Select a product or service -Create a SWOT Analysis Digital Marketing Online marketing strategies are surging Examples include: ○ SEO ○ SEM ○ Content Marketing ○ Email Marketing ○ Social Media Marketing 7 Social Media Marketing Social media marketing is crucial today because it allows businesses to connect directly with their target audience in a dynamic and engaging way. Businesses interact with customers in real time, fostering relationships and building brand loyalty. Allows for precise targeting based on demographics, interests, and behaviors. Can be more cost-effective, offering high returns on investment. Provides valuable data on consumer behavior, helping businesses refine their strategies and offerings. 8  Facebook Pros Vast user base for broad reach. Advanced targeting options for ads. Diverse content types (text, images, videos, events). Cons Declining organic reach for businesses. Increasing competition for ad space. Privacy concerns may affect user trust.  Instagram Pros Visually driven, ideal for brands with strong imagery. High engagement rates, especially among younger audiences. Features like Stories and Reels for creative content. Cons: Algorithm changes can affect visibility. Limited linking options in posts. Requires consistent, high-quality content. X (Twitter) Pros Great for customer service and quick updates. Strong community building through hashtags. Cons: Character limit can restrict messaging. Fast-paced nature makes it easy to get lost in the feed. Limited visual content compared to other  LinkedIn Pros: Professional networking, ideal for B2B marketing. High-quality content opportunities (articles, industry insights). Targeted advertising for professionals. Cons: Less effective for B2C marketing. Requires a more formal tone and content style. Slower engagement compared to more casual platforms. TikTok Pros: Rapidly growing platform with high engagement. Creative, short-form video content appeals to younger audiences. Viral potential for content. Cons: Requires a focus on trends and creativity. Less effective for traditional branding. Evolving platform may require constant adaptation. Pinterest Pros: Visually focused, great for DIY, fashion, and home decor brands. Users often looking for inspiration, leading to higher purchase intent. Longevity of pinned content. Cons: Niche audience, may not suit all industries. Requires high-quality, visually appealing content. Less real-time engagement compared to other platforms. Tools Companies Use to Manage Marketing Efforts CRM (Customer Relationship Management) Software - Produced by companies like Salesforce and Hubspot; they help companies manage relationships with customers and suppliers KPIs (Key Performance Indicators) - Examples include sales growth, market share, and customer acquisition cost; varies by industry Marketing Metrics - ROI, conversion rate, click-through rate, and more! Global Marketing and Ethics Must be mindful of differences in culture, language, legal regulations, and economic factors Have “boots on the ground” to gauge reception Truth in advertising, consumer privacy, and fair trade standards Highlight advantages, but ensure no false statements are made (could have legal consequences, too) Many firms engaging in Corporate Social Responsibility (CSR) initiatives regarding environmental sustainability, community engagement, among other causes What is Marketing Ethics? What is Marketing Ethics? Principles guiding marketing decisions Ensures honesty & fairness Builds consumer trust Long-term business success Unethical Decisions in Marketing False advertising (Volkswagen emissions scandal) Deceptive pricing (Pharma price hikes) Exploitation (Nestlé infant formula controversy) Misleading health claims (Tobacco industry) Misleading impact of Oxycontin (Pharma industry) Why Ethics Matter in Marketing Protects brand reputation Avoids legal penalties Strengthens customer loyalty Promotes fair competition Examples False Advertising (Volkswagen Emissions Scandal) Volkswagen falsely claimed their diesel engines were environmentally friendly while secretly rigging vehicles to cheat emissions tests. This led to massive recalls and fines. Deceptive Pricing (Pharma Price Hikes) Pharmaceutical companies, like Turing, were accused of dramatically increasing the prices of life-saving drugs, exploiting consumers' need for essential medicines. Exploitation (Nestlé Infant Formula Controversy) Nestlé aggressively marketed infant formula in developing countries, undermining breastfeeding, leading to health risks for infants who lacked access to clean water. Misleading Health Claims (Tobacco Industry) The tobacco industry misled consumers for decades by promoting cigarettes as safe, downplaying the health risks of smoking despite overwhelming evidence of harm. Misleading Claims (Pharma Industry) The Sackler family, owners of Purdue Pharma, aggressively marketed OxyContin as a non-addictive painkiller, despite knowing its high potential for addiction. This deceptive marketing fueled the opioid crisis, leading to widespread addiction and many deaths. Leading Influencers Cristiano Ronaldo 600+ million Instagram Kylie Jenner 400+ million Instagram Selena Gomez 400+ million Instagram Dwayne “The Rock” Johnson 400+ million Instagram Ariana Grande 400+ million Instagram Kim Kardashian 350+million Instagram Lionel Messi 500+million Instagram Taylor Swift 283+million Instagram Mr Beast - Jimmy Donaldson 318 million YouTube Charli D’Amelio 155 million TikTok Influencers’ Marquee Projects Tom Brady Commercials for Hertz Serena Williams Commercials Gatorade Kylie Jenner Content creation and promotion for Kylie Cosmetics Jennifer Aniston Commercials for Aveeno Matthew McConaughey Commercials for Lincoln Motor Company Dwayne “The Rock” Johnson Promoted his Teremana tequila brand Ryan Reynolds Appeared in commercials and billboards for Mint Mobile Patrick Mahomes Featured in ads for State Farm and Adidas Stephen Curry Commercials for Under Armour and Chase Bank Kevin Durant Featured in ads for Nike and Google Digital Marketing Funnel Current and Future Marketing Trends Generative AI Social Media Marketing across platforms Influencer Marketing Short form video marketing Augmented Reality (AR) and Virtual Reality (VR) experiences Increased data and privacy concerns