Marketing Klausur PDF

**[MARKETING KLAUSUR ]** **[Assessing the marketplace]** **Marketing Definition:** - the activity and the set of institutions and processes for [creating, communicating, exchanging and delivering offerings] that have [value for customers, marketers, and society] - Marketing is a...

**[MARKETING KLAUSUR ]** **[Assessing the marketplace]** **Marketing Definition:** - the activity and the set of institutions and processes for [creating, communicating, exchanging and delivering offerings] that have [value for customers, marketers, and society] - Marketing is a part of the corporate strategy of a company - It's the job of marketing to ensure customer orientation at every company level - Managing markets to create profitable customer relationships Core marketing activities: Consumer research, Targeting, Product development, communication, distribution, pricing, service +-----------------------+-----------------------+-----------------------+ | **Marketing | **Marketing | **Marketing | | Activities:** | Institutions:** | Processes:** | +=======================+=======================+=======================+ | - marketing | - producer of the | - New product | | intelligence | goods or services | development, | | | | | | | - Wholesalers, | - order management, | | | | | | - product, price, | - Retailers, | - price | | communication & | | negotiations, | | distribution | - Advertising | | | management | agencies, | - campaign | | | | management, | | | - market research | | | | firms, | - market analysis, | | | | | | | - trade show firms, | - competitor | | |... | intelligence,... | +-----------------------+-----------------------+-----------------------+ **Evolution of Marketing**: 1. Production "good products will always be sold" 2. Sales "with good salespeople, we can sell everything" 3. Marketing "we produce what consumers want" 4. Value based Marketing "we produce what consumers want and generate value for them" **Sales vs. Marketing concepts:** **Selling concept**: - Starting point: factory - Focus: existing products - Means: selling and promoting - Ends: **profits through sales volume** **Marketing concept**: - Starting point: market - Focus: costumer needs - Means: integrated marketing - Ends: **profits through customer satisfaction** **[Marketing objectives: ]** - Revenue maximization = Total amount of money - Rapid market penetration with a new product - Profit maximization After subtracting all expenses The Understanding of the Marketplace & Customer Needs = essential for archiving the targets **[Main tasks of the marketing: ]** - Strategic level: market segmentation (homogenous) target groups supply of customized products for the identified target groups - Operational level: implementation (umsetzung)of the provisions (Vorkehrungen) of the strategic level by using the tool Marketing Mix, Customer and supplier Relationship Management = Umsetzung durch die Instrumente des marketing value Marketing = creating value: Value = individual 's or an organization 's subjective perception ([evaluation) of the degree] to which an [offering (good, service) fulfills one or several needs] Value propositions can be composed of several value building blocks: - System value (e.g.: Apple with AirDrop) - Service value (e.g.: Amazon) - Information value (e.g.: Google) - Brand value (e.g.: Apple, Calvin Klein) - Relationship value (e.g.: Nespresso, trust programs) - Ethical & ecological value (Seventh Generation, Patagonia, Pela) **Zu: [ Understanding the marketplace and customer needs]** Marketed: Vermarktet Market offerings -\> some combinations of products, servicesinformation offered to a market to satisfy needs /wants How do customers choose among those many offerings? Marketers must be careful to set the right level of expectations -\> Satisfied customers buy again and tell others NEEDS -\> States of deprivation: f.e physical: food,... WANTS -\> Form that human needs take as they are shaped by culture and individual personality DEMANDS -\> Human wants backed by buying power **[Design a customer driven marketing strategy ]** Marketing goal: design a customer value- driven marketing strategy Marketing management: the art and science of choosing target markets and building profitable relationships with them -\> the marketing managers aim is to find, engage, keep and grow target customers by creating, delivering, and communicating superior customer value A marketing manager must answer 2 questions: - What's our target market? Selecting customers -\> market segmentation -\> Dividing the market into small segments of customers; Target marketing -\> selecting which segments the company will go after - What's our value proposition? -\> is the set of benefits or values a company promises to deliver to customers to satisfy their needs - \>why should I choose your product instead of the competitor's **Construct an integrated marketing program that delivers value:** Transforming strategy into action -\> The set of marketing tools the firm uses to implement its marketing strategy is called Marketing mix The 4 P's: Product (customer's solution), Price (customer cost), Place(convenience)promotion (communication) **Build profitable relationships and create customer delight** **Customer Relationship Management (CRM):\ **Building and maintaining profitable customer relationships. **Customer Perceived Value:\ **Difference between total benefits and total costs compared to competitors. **Customer Satisfaction:\ **How well a product\'s performance meets customer expectations. Exchange: Result of perceived fairness Ein Bild, das Text, Screenshot, Schrift, Algebra enthält. Automatisch generierte Beschreibung **Different forms of Consumer benefits -\>** Trend goes towards customer managed relationships Functional: I GET -\> Concrete attributes of an offering Emotional: I FEEL -\> Emotions associated with an offering SELF-Expressive: I AM -\> Attributes that support consumer identity SOCIAL: I AM WITH -\> membership for a certain group New customer relationship -- building tools: Socail media, videos, blogs etc Creating customer loyalty: Customer lifetime value: stream of purchases that the customer would make over a lifetime -\>Its five times cheaper to keep an old customer than to acquire a new one Share of Customer:\ How much of a customer's spending in a category goes to one company. **Understanding the Marketplace: consumer behavior** SOR (Model of consumer behavior) 1. **Stimulus= Environment** - observable 2. **Organism: Black Box STIMULI ARE ALL PROCESSED IN ORGANISM CALLED BLACK BOX** - Not directly observable 3. **Response:** - Observable LOOKING INSIDE THE BLACK BOX TO UNDERSTAND PROCESSES THAT ARE GOING ON [ ***consumer decision process: (happens in the black box)***] 1. **Need recognition**: Caused by an internal stimulus (bc. of hunger) vs. external need (my friend bought it I want it too) Need Want (needy state desired state) / Want = not needed but desired - Functional needs: addresses the performance of a product or service, - Depends on specific need: the best, the cheapest, - Psychological needs: consumers association with a product or service (personal gratification = Genugtuung/Befriedigung) 2. **Information search:** affected by perceived benefits & costs of the search (is it the time worth?) - Internal search for information: based on memory & knowledge - gathered through past experiences) / post purchase - External search for information: outside personal knowledge -\> From friends, family, social media, reports,... - Types of risks associated with the purchase can delay / discourage a purchase - Performance risk: Does it deliver what I expect? (is it fun to drive) - Financial risk: costs that come along the purchase (fuel for cars) - Social risk: how is my purchase evaluated by others? - Safety risk: Is there possible harm or damage if I use the product? - Psychological Risks: image of the product / service 3. **Evaluation of alternatives:** [Universal set]: all possible choices/ alternatives from a product category [Retrieval set]: brands or stores I already knew before and that I am aware of [Evoked set]: brands & stores considered when making purchase decision (brands I really consider)-\> That's the goal - **Evaluative** (bewertende) criteria: important attributes about product or service - Price, quality, brand, reputation, service support - **Determinant** (determinant) attributes: product / service features important to the buyer - Brands or stores that offer perceived differentiation -\> WICHTIGER 4.Purchase Purchase Intention -\> not automatically Purchase decision: 2 things that influence us: Attitudes of others; Unexpected situational factors others' attitude & unexpected situational factors (competitor offers lower prices) ≠ purchase decision 4. **Post purchase behavior:** Customer satisfaction: [Relationship between a product's perceived performance and a consumer's expectation: ] 1. Performance \< expectation = Disappointment 2. Performance = expectation = Satisfaction 3. Performance \> expectation = Delight (Freude) [Ensure post purchase satisfaction: ] - Build realistic expectation (not too high / not too low) - Demonstrate correct product use - Contact customers, thank them for support, encourage feedback more direct contact! - Stand behind the idea [Post purchase cognitive dissonance (Disharmonie) ] - Discomfort caused by an internal conflict (inconsistency between believe & behavior) - Customer questions the purchase decision (regret) - Can happen if the product is very expensive, not often (infrequently) purchased, the product doesn't work as intended, or is associated with high risks **Consequences of customers dis/satisfaction:** Customers satisfaction build profitable relationships, increase customers lifetime value [Satisfied customers: ] - Buy again - Talk favorably about the product (mouth-to-mouth) - Pay less attention to competing brands and advertising - Buy more products from the company [Dissatisfied customers] - bad word of mouth (shitstorm) damage consumers attitudes - to assess satisfaction Measure customer satisfaction regularly Encourage customers to complain (give us feedback) in order to learn and to improve ***[consumer characteristics: Factors]* affecting the consumer decision process** 1. **cultural:** - [culture]: learned values, perceptions, wants, behaviors from family & important institutions (country) - [subculture]: groups within a culture based on common life experiences & situations (bikers, gamers) shared value system - distinct(eindeutig) but not exclusive - [social] [classes]: are relatively permanent -\> Sinus mileus - combination of occupation, income, education, wealth share similar values, interests, behaviors (relatively permanent & ordered divisions in a society) sinus milieus ( based on social status and basic orientation) - elite, established-middle class, new affluent workers, traditional working class 2. **Social:** - [reference group]: provide information through conversation or observation and affect buying decision by offering information & enhancing a consumer's self-image - one or more persons whom an individual uses as basic for comparison regarding beliefs, feelings and behaviors - [Family]: most important buying organization in society family members have different roles & influence on the purchase of goods/services - [Social roles] & Status = groups, family, clubs, organizations that a person belongs to can define role and social status 3. **Personal factors:** - Age & life-cycle stage demographic and life-changing events - Youth (younger than 18), Getting started (18-35), Builders (35-50), Accumulators (50-60), Preservers (over 60) - Lifestyle: person's pattern of living (expressed in his/her activities, interests, opinions) \*Clean eating\* - Personality: unique psychological characteristics that distinguish a person / group lead to consistent & lasting responses to the consumer's environment 4. **Psychological factors:** Motive: Need or want that is strong enough to cause a person to seek satisfaction Maslow's hierarchy of needs: - Physiological needs - Safety needs - Social Needs - Esteem Needs - Self-actualization Needs 1. Awareness: the prospective customer recognizes a need and becomes familiar with the brand through different channels including advertising and word-of-mouth.  2. Consideration: facing the need that must be met, the prospective customer evaluates alternatives and actively considers whether or not to buy the product or service.  3. Purchase: the prospective customer turns into a customer and purchases the product or service.  4. Service/Retention: the customer uses the product, sometimes seeking guidance from the provider or a user community, and perhaps is contacted by the provider to encourage brand loyalty. 5. Loyalty: the customer spreads the word about the product -- whether their opinion is positive or negative **Targeting the marketplace:** marketing plan = central tool for designing, directing and coordinating marketing activities - Analysis of the current situation - Opportunities & threats for the firm - Marketing objectives - A strategy specific marketing mix  **Step 1: Mission Statement = a broad description of company's objectives & scope of all** activities it plans to undertake (clarify, goals, objectives) It should cover: - type of business, target customers, value to the customer / stakeholders - What will & should our business be? - What do we need to accomplish our goals & objectives? VS: Vision Statement: Plan or vision for the future -\> where do we wanna get The golden circle by Simon Sinek: What should we sell? How should we sell it? why should we sell it? **ESG Rating Summary:**\ ESG ratings evaluate a company\'s performance in **Environmental**, **Social**, and **Governance** areas. 1. **ESG Rating:** Overall score combining all ESG pillars. 2. **Pillar Score:** Individual scores for each pillar (Environment, Social, Governance). 3. **Theme Score:** Specific scores for themes within each pillar (e.g., climate change, labor standards). **Step 2: SWOT = situation analysis that can be carried out for a product, place, industry or person -\> includes an internal and external view = StrengthsWeaknessesOpportunitiesThreats ( SWOT Analyses are usually conducted for a company and its main competitor)** - Internal: Strengths = internal capabilities help reach objectives - Advantages, Unique Selling Proposition (USP) - Internal: Weaknesses = limitation interfere with ability to archive goals - Improvements, Things to avoid, factors lose sales - External: Opportunities = factors exploit to its advantage - Interesting trends, changes in technology, government policy, social patterns, - External: Threats = current & emerging factors that may challenge performance - Competitors, debt / cashflow problems, negative changings Strengths: What advantages does your company have? What is your USP? Weaknesses: What could I improve? What is your disadvantage as compared to others Opportunities: What good opportunities can you spot? What interesting trends are you aware of? Threats: What obstacles do you face? What are your competitors doing? **Step 3: Identify Opportunities: Segmentation -- Targeting -- Positioning** Based on Steps 1 & 2 **[Segmentation]**: Identifying groups of people that react similarly to marketing activities... - Product: want similar products / services - Place: want similar shopping experience - Promotion: influenced similar by the same ads, promotions - Price: willing to pay similar price Segmentation = process of [dividing heterogeneous markets] into [homogeneous subgroups] which display similar needs, preferences and/or behaviors Segment = group of customers who share [similar set of needs and wants] Segmentation criteria: -\> the more criteria a segmentation applies, the better it predicts behaviour - Demographic: Age, Gender, Income, Religion, Marital Status, Education - Psychographic: Personality, Attitudes, Values, Needs, Motives, social class - Sinus milieus (example) - Behavioral: Purchase History (Frequency, Coupon proneness), Media Use - Loyalty, usage rate, user status, - Geographic: Countries, Regions, Cities, Neighborhoods, Population density, Climate - Different cultures = different needs, different languages - Rural, suburban, urban markets Requirements for segments: - Measurable: size, purchase power - Substantial: large, profitable - Accessible: reachable (at reasonable cost) - Differentiating: homogeneous within segments, heterogeneous between segments - Actionable: marketing mix to attract and serve segments **[Buyer Persona: ]** - Researched based profile of the perfect target customer (detailed, fictitious portrait) - Helps to better target your communication and offering -\> should include as much information as possible **[Targeting: Selecting Segment(s]** **[Auswahl der segmente (Taregting) based on 2 factors :]** Attractiveness of the market (weaknesses & Threats + profitability) + Competencies (strengths & weaknesses) Evaluate Segment Attractiveness: - Segments = identifiable?(identifizierbar) - Are there Enough people in the segment? - Can the company reach the segment? - People in segments react similarly to marketing activities? - Do they have the money to spend on our product/services? - Profitable? - Similar enough withing/different enough without?  Targeting strategies: - Undifferentiated: one big segment - Differentiated: few different segments - Concentrated: more segments but concentrated on one of these - Micromarketing: a lot of different segments **[Positioning:]** Define the marketing mix variables so that the target customers have a clear, distinctive(besonders), and desirable understanding of what the product does or represents in comparison with competing products. [Strategies]: - [Points-of-Parity (POD):] aspects of the product offering that are largely similar to the offerings of like competitors - [Points-of-Difference (POD]): Aspects of the products offering that are relatively distinct to the offerings of like competitors Generic positioning strategies Ein Bild, das Text, Screenshot, Schrift, Diagramm enthält. Automatisch generierte Beschreibung Specific Positioning strategies  Perceptual Map: A perceptual map displays in two or more dimensions the position of products or brands in the consumer's mind. [Result of Positioning]: Knowledge how we want to be perceived in our market, given the organization's capabilities & demands by customers - Branding, product strategy, price, distribution, communication, service management,... **Step 4: Marketing Mix: creating, capturing, communicating & delivering value** - Transforming the marketing strategy into action build customer relationship **Marketing Mix (The set of marketing tools the firm uses to implement its marketing strategy)** **If one of the 4 P's change you have to adjust the other 3 -\> can be expended to the 7 P\`s or even the 15 P** -  - 4 Ps: Product, Price, Place, Promotion - 4 Cs: Customer solution, Customer cost, Convenience, Communication **[Product:]** offering goods/services/... that provide *[value for customers]* - Variety, quality, design, features, brand name, packaging, services, product range, guarantees, managing products through the lifecycle Strategic decisions: - Product range, variety, innovation, elimination Product value: In the center -\> Colors, Dimensions,taste,technical details , power, water consumption - [System value]: product bundles, Additional components,Networks,... (e.g.: Apple with AirDrop);Apple with mac book pro air, apple tv,itunes.... - [Service value]: financial solutions(leasing, loans), delivery, installation,storage... (e.g.: Amazon) - [Information value]: product & delivery related information, price- & conditions related informations (e.g.: Google) or the bmw 1 series at a galnce - [Brand value:] Prestige, Trustworthiness, Fun & Emotions,... (e.g.: Apple, Calvin Klein) - [Relationship value]: Preferential treatment, membership, special events, discounts, membership cards, special events (e.g.: Nespresso, IKEA) - [Ethical & ecological value]: fair trade, green products,development of local communities, employee rights,green products... (Seventh Generation, Patagonia, Pela) [Product line decisions]: BMW: Fh kufstein - Breadth: number of product lines 2,3,4,5,6....X,Z4... Bachelor master... - Depth: number of categories within a product line Management, wing, SKVM.. More products = not always better because: - People don't like too much variety bc. hard decision making - Cannibalization: people just buy new products instead of the existing one - More products = more costs, but not always more revenue ? [Product core:] characteristic features of each product type: Core characteristics of a product are its key features that define its purpose and make it useful and unique. - E.g.: materials, workmanship (verarbeitung) [Product design]: - affect aesthetic, functional, economic benefits - can produce emotionalizing effects - e.g.: shape of a car: affect functionality, easy of entry, fuel consumption, aesthetic [\ ] [Product packaging]: - action parameters: shape, color, material, surface texture, fragrance - functions: - Protective function (durability, hygiene, intactness, etc.) - Distribution function (transport and storage) - Information and communication function - Convenience function (reclose ability, secondary use, etc.) - Marking function (recognition) - Haptic packaging design: - Touching increases perceived ownership(eigentum) - Affects other senses (e.g.: taste) [Branding]: = Legal asset? Intangible assets (Immaterielle) In consumers memories brands are associations - "A brand is a distinguishing name and / or symbol intended to identify the goods and services of one seller and to differentiate those goods and services from those of competitors." Service marketing: Services are products in general, but they have special characteristics and marketing needs Biggest difference: Intangibility-\> Services cannot be seen, tasted ,felt heard or smelled before purchase, Inseparability -\>untrennbarkeit -\> services cannot be seperatd from their providers; variability -\> quality of services depends on who provides them and when,where and how; perishability: services cannot be stored for later sale or use [Product management: Growth strategies: ] Ansoff Matrix: **[\ ]** **[Price:]** setting the right price for a company's offers Price policy: list price, discounts for customers, allowances, payment period, credit terms Strategic decisions: - Maximize profit / ROE - Reach new customers - Eliminate customers - Avoid risk **Grünes Bild :** **Operational Parameters** These are the tools used for short-term price management and direct customer interaction. 1. **Basic Prices**: - **List Prices**: The standard price of a product before any discounts or adjustments. - **Margin**: The profit margin, or the difference between the cost of the product and its selling price. - **Terms of Payment**: The conditions under which customers pay, such as \"30 days net\" or installment plans. 2. **Price Tools**: - **Discounts**: Reductions in price to incentivize purchases (e.g., seasonal or bulk discounts). - **Price Promotions**: Temporary price reductions or offers to boost sales. - **Coupons**: Vouchers that offer a price reduction or special deal. - **Price Bundles**: Offering multiple products together at a reduced price. - **Bonus Programs**: Rewards for loyal customers, like points or cash-back systems. 3. **Price Communication**: - **Price Lists**: Documents showing prices for various products. - **Price Labelling**: Tags or labels displaying prices in stores. - **Price Display**: How prices are presented in advertising or at point-of-sale. - **Price Negotiations**: Allowing buyers to negotiate the final price. - **Price Recommendations**: Suggested retail prices for sellers. - **Price Guarantees**: Promises to match or beat competitors' prices. **Strategic Parameters** These focus on long-term goals and market positioning. 1. **Long-Term Price Aspects**: - **Price Image**: The perception of the brand's pricing (e.g., premium vs. budget). - **Life Cycle Pricing**: Adjusting prices over the product's life cycle, from introduction to decline. - **Yield Management**: Optimizing prices based on demand (common in airlines and hotels). - **Price Maintenance**: Ensuring consistent pricing across markets or over time. 2. **Price System**: - **Price Formation**: The process of determining a product's price based on costs, demand, and competition. - **Price Components**: Breaking down the price into elements like base price, taxes, and fees. - **Price Differentiation**: Offering different prices for the same product based on factors like location or customer type. - **Price Cap**: Setting a maximum price for a product or service. 3. **Positioning**: - **Price-Value Relation**: Aligning price with perceived value to attract target customers. - **Price Segmentation**: Adjusting prices to cater to different market segments. - **Price Lines**: Offering a range of products at different price levels (e.g., budget, mid-tier, premium). Internal objectives: - Profitability (profit, profit margin, return on investment, cutting cost\...) - Growth (sales volume, market share, market leader, \...) - Financial stability (liquidity, credit worthiness, equity \...) - Power (independence, social and political influence, \...) - Social goals (creation/maintenance of jobs, \...) Market related objectives: - Building intended brand meaning/position - low-, medium-, premium price, luxury - Building and managing relationships - consumer segments, special price offers, monitoring consumer behavior, increasing loyalty - Controlling demand - seasonal products, demand \> supply, demand \< supply - Differentiation from competition Price calculation:  - Cost-based pricing: fixed costs + variable costs + profit margin = price - Competitor orientation -\> competition-based pricing - Value based methods: focus on the perceived value a product perceived by consumers - Based on market research Ein Bild, das Text, Schrift, Screenshot, Visitenkarte enthält. Automatisch generierte Beschreibung Price knowledge / Reference price can be... - Last price paid - Modal price (price paid most frequently) - Fair price ( perspective customer) - Favorite brand price Average of all - Average prices of similar goods previously experienced prices - Absolute price limit - Expected future price Reference price/ Recalled price = standard, other prices will be judged against this as cheap or expansive / fair or unfair (based on prior experience & information in the environment = significant / regardless of their accurancy & indicator for the price image Price strategies: - Premium (iPhone) - Substantially Above the average - Targets at segments who are not price sensitive segments - Discount (EDLP) - Continuous price level between non-sale price & discount price - Provides value to consumers because they can save time (one stop shopping) - Attracts Price sensitive segments - Lower service & customer experience - Average price = Lower than in most other stores - Provides value safe time by one stop shopping - High-Low (HILO) - Focus: promotion & sales - Average price = above discount & below premium - During price promotions prices below the discount level - 2 segments: price sensitive (cherry picking) consumers or consumers who are willing to pay higher prices Price strategies for new products: When companies intoduce new products they need to make several pricing decisions What should the final price be ? How should the price level develop over time? - Penetration Pricing: start low end high (Netflix) - Penetrate the market quickly and deeply -\> Attract a larger number of first time buyers and develop a high market share (marktanteil ) - Skimming Pricing: start high end low (Apple)-\> results in fewer but more profitable sales -\> possible price reduction in a second phase Price differentiation: similar product for different prices - Time: Seasonal products, Lunch offers , Skimming and penetration pricing - Person: students, members, only useful for products which can't be shared - Location: countries, states, often based on demographic characteristics - Quantity: larger amounts of a product lower price - Quality differences: first class versus economy, LinkedIn premium account -\> offering different levels of quality of a product or a service - One-to-One Marketing: Negotiation each prize (Bazar) **[\ ]** **[Place]**: delivering the product to the consumers -- Distribution management Distribution policy: channels, coverage(zb geographisch), assortments (sortiment), locations, inventory,(bestand) transportation, logistics Strategic decisions: **Intensity, Distributors, Channels** - Intense distribution: High number of sales outlets, wherever a necessity comes up (Red Bull) - Selective distribution: lower number of sales outlets (adidas) - Exclusive distribution: very few sales outlets keep the good rare (Rolex) Types of distributors/intermediaries(vermittler): - Super-/hypermarket(verbindet kaufhaus mit lebensmittel) - Discount shops zb outlet,aldi,lidl,dollartree - Specialist store zb apple,sephora - Authorized dealers zb tesla certified car dealership - Franchise system partners subway - Online (Amazon) from online to offline to online (Amazon store) Distribution structure: A **retailer** sells goods directly to end consumers in small quantities, while a **wholesaler** purchases products in bulk from manufacturers and resells them to retailers or other businesses. Customer journey: Traditional way: e.g.: store 1. Awareness (inspiration information research) 2. Consideration (purchase advice) 3. Purchase 4. Service 5. Loyalty Return Aware (I Know) Appeal (I like) Ask (I'm convinced) Act (I'm buying) Advocate (I recommend)  Multichannel distribution system: - **Dealer:** A dealer sells products directly to consumers or small businesses, often focusing on specific brands or categories. - **Distributor:** A distributor acts as an intermediary, purchasing products in bulk from manufacturers and supplying them to dealers or retailers. - **Sales Force:** A sales force consists of a company\'s employees who directly engage with customers to promote and sell products or services. Challenges: - Companies must know consumer's channel preferences - Different segments prefer different channels/touchpoints - Companies must rack customers (big data) **[Promotion]**: communicating the value of products Communication policy: promotional mix consisting of public relations, advertising, personal selling, sales promotion & direct marketing Strategic decisions: **Message strategy, Channel/media strategy, Message frequency** Promotion mix: - **Advertising**: non-personal presentation, promotion of ideas by identified sponsors - **Sales** **Promotion**: short-term incentives (anreize) to encourage the purchase or sale of a good /service - **Personal** **selling**: personal customer interactions by sales force (engaging customers, making sales & building customer relationships) - **Public** **relations**: building good relations with various publics, good corporate image, handling off unfavorable rumors, stories, events obtaining favorable publicity - **Direct** & **digital** **marketing**: engaging directly with carefully targeted individual consumers to obtain(erhalten) a immediate response build lasting costumer relationships Communication Process: Encoding\_\> codieren - Today: Consumers are better informed - Consumers are bombarded by company messages from all directions - Less mass marketing - Changing communications technology need for integrated marketing communication - Careful integration & coordination of a company's many communication messages/channels - Careful blended mix of all promotion tools - Deliver clear, consistent & compelling brand message about an organization & it's products **IMC strategy: (Integrated marketing communications)** **Interactive:** - Personal Selling: - Face2face, online, video - High costs, thereby particularly important in b2b settings - Sales Promotion - Special incentives (anreiz) or excitement building programs - Aim at encouraging purchases - Examples: coupons, displays, discounts - Direct & Digital Marketing - (personalized) email, newsletters / coupons (based on segmentation analyses or prior purchase behavior) **Passive:** - Advertising: - Announcements & persuasive messages - Above the line advertising - mass media: newspapers, TV, radio, usually without targeting - Below the line advertising: - More "one2one", events, roadshows, POS-promotions, direct mail - Public Relations (PR) - Press releases (veröffentlichungen) - Events - Social media **6 Steps in developing effective marketing communications:** 1. Identifying the target audience (segmentation, buyer persona,...) 2. Determining the communication objectives - Awareness, Image, New Product Introduction, Influencing (PR), Information, Persuasion, reminder, reinforcement, crisis communication, consumer education) - Awareness knowledge liking preferences conviction purchases 3. Designing the message - AIDA = Get Attention, Hold interest, Arouse Desire, Obtain Action - What will be said?; How/When/Where will it be said?, Who will say it? - Message content: - Rational appeal: relates to the audience's self-interest (quality, value, performance) - Emotional appeal: attempt to stir up (aufrühren) positive or negative emotions to motivate a purchase (love, joy, humor, fear) - Moral appeal: directed at the audience's sense of right and proper (cleaner environment or aid to the disadvantaged) 4. Choosing channels and media - Personal communication channels (2 or more communicate directly with each other) - Face2face, phone, mail, chat, word of mouth, - Allows personal addressing & feedback - Non-personal communication channels (media that carry messages without personal contact) - Print media, broadcast media (TV, radio, YT,...), atmospheres (offices, banks,...), events (openings, shows,...), chat, word of mouth - Affect consumers directly and indirectly - PESO Modell: -\> Choosing channels and media - **Owned Media**: Channels that a company fully controls, such as its website, blog, or newsletter, used to share content and engage directly with the audience. - **Shared Media**: Social media platforms where content is co-created, shared, and interacted with by both the brand and its audience. - **Paid Media**: Advertising efforts where a company pays to promote its content or products, such as TV ads, sponsored social posts, or PPC campaigns. - **Earned Media**: Publicity gained organically through third-party mentions, reviews, or word-of-mouth, without direct payment or control by the company. 5. Selecting the message source: message's impact = affected by the audience views the communicator - Celebrities - Professionals - Influencers - Picking the wrong spokesperson result embarrassment, shitstorms, deteriorate brand image 6. Collecting feedback: understanding the effect on the target audience by measuring behavior resulting from the client - Classical ads: - Top of mind, (un)aided awareness, market shar, recommendation, image, net reach, conversion rate, GRP (gross rating point), CRT (cost per thousand) - Online marketing: - Site visits, average visit duration, engagement rate, conversion rate, function/usability,... - Newsletter - Average opening rate, click rate, social sharing & forwarding, bounces,... **Promotion budget: -\> 4 methods to set the advertising budget** - Affordable method: promotion budget at the level management thinks the company can afford - Percentage of sales method: percentage of current/forecasted sales or as percentage of unit sales price (Einzelverkaufspreis) - Competitive parity method: setting budget to match competitor's outlays - Objective and task method: Sum of these costs = promotion budget - Defining promotion objectives - Determining the tasks needed to achieve these objectives - Estimating the costs of performing these tasks Push vs. Pull: **Extending Marketing:** Currently, digital marketing topics are on the rise like Digital offerings (e books, streaming dienste etc. ), content marketing wie Erstellung und Verbreitung von relevantem, nützlichem Inhaltfacebook,insta etc), Programmatic advertising ( Automatisierte Schaltung von Werbeanzeigen basierend auf Datenanalysen und Algorithmen. Beispiele: Google Ads, Echtzeit-Gebote (RTB)); Infleuncer marketing **BUT** at the center of brand is still the product The consequences of digitalization - We try to surpress what negatively overwhelmes us - Positive sensory perceptions however are still evoking positive emotions. - The more virtuality enters into our lives, the more we value real and - perceptive experiences. **Sensory marketing:** 50% talk about the product experience when talking about the brand - What does it look like? - How does it feel/smell/sound/taste? Marketing that engages the consumers' senses and affects their perception, judgement and behavior. = Sensory Marketing Most of our decisions are taken on an unconscious level: Intuition & Instinct (95%) **Sense of seeing**: colored messages more often read than black or white Colors symbols: Blue = strong, honest, calm, trustworthy (Facebook, Twitter, VISA) Red = energic, active, brave, passionate (Netflix, Red Bull, Cola, YouTube) Yellow = logic, optimistic, playful, confident (DHL, McDonald, Ikea) Green = fresh, natural, sustainable, caring (Subway, Spotify, Greenpeace, Starbucks) **Sense of smelling**: = most emotional sense = brings back memories & affect our emotions & mood Lemon increase attention, activates energy reserves & decrease fear change behave Vanilla increase mood, help to fall asleep Peppermint increase concentration Room scent in trading environments increases willingness to pay **Sense of feeling**: our skin has more than 4.000.000 receptors Touching products increase the perceived (wahrgenommen) ownership The weight of products affects the taste & the willingness to pay With warm hands we have warmer emotions for our fellow people If you sit softly, you're more likely to give in, Touching makes us more generous **Sense of hearing**: affects our heartbeat, our thoughts & our dopamine release responsible for our mood Increase enjoyment and satisfaction Style of music affects the purchase **Sense of tasting**: combination of taste, smell, hear, feel and see - Packing: surface, size, acoustic feedback, number of products shown on the packaging affects the quantity, expectations **Relevance of sensory marketing**: Sensory cues = Sensorische Reize Impact of sensory product cues (design) -\> - Packaging evaluation - Product evaluation - Quality evaluation - Willingness to pay - Consumption Impact of sensory atmospheric cues (retail, atmospherics) - Product evaluation - Impulse buying - Approach behavior - Satisfaction - Sales Positive impact of single/combined sensory cues on buying behavior, customer experience and company results Many companies use sensory marketing without analysis Effect of brand strength: