UniWienWeek 5_Promotion (PDF)

VO Management I - Marketing (MA) Week 5 – Promotion / Marketing Communication Univ.-Prof. Dr. Christoph Fuchs Chair of Marketing, [email protected] http://m...

VO Management I - Marketing (MA) Week 5 – Promotion / Marketing Communication Univ.-Prof. Dr. Christoph Fuchs Chair of Marketing, [email protected] http://marketing.univie.ac.at Office hours: upon request Course Framework PRODUCT SEGMENTATION Marketing PRICE Research TARGETING PROMOTION Consumer Behavior POSITIONING PLACE PREREQUISITES MARKETING STRATEGY MARKETING PLAN Chair of Marketing Prof. Christoph Fuchs, Ph.D. 2 Key Objectives (Communication) Main Objective: inform, persuade, and remind customers about a product. Indirectly and directly. Be systematic: What is your objective? Who are you trying to reach? Where is the best place to reach your target? How is the best way to reach your target? Chair of Marketing Prof. Christoph Fuchs, Ph.D. 3 Types of product promotion Chair of Marketing Prof. Christoph Fuchs, Ph.D. 4 Types of product promotion Advertisement Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor (e.g., traditional TV, print ads) Chair of Marketing Prof. Christoph Fuchs, Ph.D. 5 Types of product promotion Advertisement Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor (e.g., traditional TV, print ads) Two-way flow of communication between buyer and seller, designed to influence the Personal Selling buyer’s purchase intentions, typically face-to-face Which of the two is generally: More customized? More effective for sharing complex information? More expensive in terms of the cost of reaching one person? Allows more consistent delivery of communication? Chair of Marketing Prof. Christoph Fuchs, Ph.D. 6 Types of product promotion Advertisement Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor (e.g., traditional TV, print ads) Personal Selling Two-way flow of communication between buyer and seller, designed to influence the buyer’s purchase intentions, typically face-to-face Public Relations A nonpersonal, indirectly paid (company does not pay for space in mass medium) presentation of an organization, good, or service (e.g., news articles, editorials, product launch announcements). Chair of Marketing Prof. Christoph Fuchs, Ph.D. 7  Advertisement Personal Selling Public Relations Chair of Marketing Prof. Christoph Fuchs, Ph.D. 8 Types of product promotion Advertisement Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor (e.g., traditional TV, print ads) Personal Selling Two-way flow of communication between buyer and seller, designed to influence the buyer’s purchase intentions, typically face-to-face Public Relations A nonpersonal, indirectly paid (company does not pay for space in mass medium) presentation of an organization, good, or service (e.g., news articles, editorials, product launch announcements). Sales A short-term inducement of value offered (to both consumers and sales channel) to arouse interest Promotion in buying a good or service (e.g., coupons, rebates) Chair of Marketing Prof. Christoph Fuchs, Ph.D. 9  Advertisement Personal Selling Public Relations Sales A short-term inducement of value offered (to both consumers and sales channel) to Promotion arouse interest in buying a good or service (e.g., coupons, rebates) Chair of Marketing Prof. Christoph Fuchs, Ph.D. 10 Sales promotions are designed to stimulate behavior [conative] but provide information as well (e.g., about price) short term positive effect long term negative effect Types of product promotion Advertisement Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor (e.g., traditional TV, print ads) Personal Selling Two-way flow of communication between buyer and seller, designed to influence the buyer’s purchase intentions, typically face-to-face Public Relations A nonpersonal, indirectly paid (company does not pay for space in mass medium) presentation of an organization, good, or service (e.g., news articles, editorials, product launch announcements). Sales A short-term inducement of value offered (to both consumers and sales channel) to arouse Promotion interest in buying a good or service (e.g., coupons, rebates) Chair of Marketing Prof. Christoph Fuchs, Ph.D. 13 Integrated Marketing Communications Coca-Cola Tupperware Google Lidl Red Bull BMW Ikea Facebook Happy Meal Apple-events GE Chair of Marketing Prof. Christoph Fuchs, Ph.D. 14 Developing effective communication Chair of Marketing Prof. Christoph Fuchs, Ph.D. 15 What and How to say it… Decide what to say (communication content) based on: – STP strategy – Market research – (Unique Selling Proposition; few cues) Decide how to say it (communication execution): – Credible sources (experts, users of producers, etc.) – Creativity / Humor Chair of Marketing Prof. Christoph Fuchs, Ph.D. 16 Steps in Developing Effective Communication Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source Chair of Marketing Prof. Christoph Fuchs, Ph.D. 17 Steps in Developing Effective Communication Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source Chair of Marketing Prof. Christoph Fuchs, Ph.D. 18 Steps in Developing Effective Communication Identify the target audience What will be said How it will be said When it will be Where it will be said said Who will say it Chair of Marketing Prof. Christoph Fuchs, Ph.D. 19 Communication objectives Chair of Marketing Prof. Christoph Fuchs, Ph.D. 20 Objectives depend on the Product Life Cycle Chair of Marketing Prof. Christoph Fuchs, Ph.D. 21 The Objective drives the message Before creating the message, you need to identify what you want to accomplish Of course, you want to sell more in the long run, but…. your advertisement will look different if the objective is to create brand awareness vs. creating a favorable brand attitude Chair of Marketing Prof. Christoph Fuchs, Ph.D. 22 Set measurable communication objectives DAGMAR Model “Defining Advertising Goals For Measured Advertising Results” Chair of Marketing Prof. Christoph Fuchs, Ph.D. 23 Set measurable communication objectives Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing Prof. Christoph Fuchs, Ph.D. 24 Would you buy a Google Glass? Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing Prof. Christoph Fuchs, Ph.D. 25 Would you buy an Apple Watch? Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing Prof. Christoph Fuchs, Ph.D. 26 Would you ever buy a Drone? Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing Prof. Christoph Fuchs, Ph.D. 27 Mobile Phones in 1999 Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing Prof. Christoph Fuchs, Ph.D. 28 Chair of Marketing Prof. Christoph Fuchs, Ph.D. 29 Set measurable communication objectives Category Need Brand awareness Category Need: Brand knowledge Brand attitude The first basic condition to be fulfilled by a brand is that it should fit within category needs Brand purchase intention and wants. If buyers cannot perceive the Purchase facilitation communicated product or brand as an appropriate answer to their needs and Purchase demands, they will not be motivated to buy it. Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing Prof. Christoph Fuchs, Ph.D. 30 Ads need to communicate why consumers need something!!! Chair of Marketing Prof. Christoph Fuchs, Ph.D. 31 Chair of Marketing Prof. Christoph Fuchs, Ph.D. 32 Set measurable communication objectives Category Need | Brand awareness: Recognition (2) and Recall (1) Brand awareness Brand knowledge Brand awareness – two definitions: Brand attitude 1)if people think of a soft drink, they may spontaneously think of Coca-Cola; Fanta! Brand purchase intention → Unaided brand awareness (recall) Purchase facilitation 2) it is also possible that people recognize a brand by its package, color, Purchase logo, → Aided brand awareness (recognition) Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing 33 Prof. Christoph Fuchs, Ph.D. Awareness Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing 34 Prof. Christoph Fuchs, Ph.D. Awareness (Guerilla Marketing) Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing 36 Prof. Christoph Fuchs, Ph.D. Awareness (Guerilla Marketing) Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing 37 Prof. Christoph Fuchs, Ph.D. Awareness awareness Category Need objective depends on the environment Brand awareness Brand knowledge at the time of Brand attitude choice Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing 38 Prof. Christoph Fuchs, Ph.D. Awareness Category Need Brand awareness Brand knowledge at point of purchase – objective = brand recognition Brand attitude package, logo, visuals, color,… in messages Brand purchase intention prior to purchase Purchase facilitation decision made at another time / location than the point of sales Purchase – objective = brand recall associate brand with category in messages Satisfaction repetition of association in messages Brand loyalty *Colley, R.H. (1961), Defining Advertising Goals for Measured Advertising Results Chair of Marketing 39 Prof. Christoph Fuchs, Ph.D. DIGRESSION – Lets Play a Game Chair of Marketing 40 Prof. Christoph Fuchs, Ph.D. DIGRESSION – Lets Play a Game Chair of Marketing 41 Prof. Christoph Fuchs, Ph.D. DIGRESSION: Hidden Messages in Brand Logos Chair of Marketing 42 Prof. Christoph Fuchs, Ph.D. DIGRESSION: Hidden Messages in Brand Logos Chair of Marketing 43 Prof. Christoph Fuchs, Ph.D. DIGRESSION: Hidden Messages in Brand Logos Chair of Marketing 44 Prof. Christoph Fuchs, Ph.D. Set measurable communication objectives Category Need | Brand Knowledge: Brand knowledge and comprehension mean that Brand awareness target consumers are aware of the most essential brand characteristics, features and benefits. They know the strengths of the brands as Brand knowledge compared with competitive brands; they know why they should buy brand X instead of brand Y or Z. Brand attitude Brand purchase intention | Brand Attitude: If consumers are equally aware of a number of brands in a certain product category they will base their brand choice on an Purchase facilitation evaluation of the different brands. The result of this evaluation is called brand attitude. Brand attitude is the perceived value of a brand to a Purchase consumer. Because a brand is stronger (and thus has more loyal customers) when the differentiation with another brand is bigger, brand Satisfaction attitude is an important communication objective. Brand loyalty Chair of Marketing 45 Prof. Christoph Fuchs, Ph.D. Knowledge Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 46 Prof. Christoph Fuchs, Ph.D. Knowledge Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 47 Prof. Christoph Fuchs, Ph.D. Attitude Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 48 Prof. Christoph Fuchs, Ph.D. Attitude Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 49 Prof. Christoph Fuchs, Ph.D. Attitude Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 50 Prof. Christoph Fuchs, Ph.D. Attitude Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 51 Prof. Christoph Fuchs, Ph.D. Brand purchase intention Category Need Brand awareness Brand knowledge Brand attitude An intention to buy is often a mediating step Brand purchase intention between attitude and purchase, especially for high Purchase facilitation involvement products Purchase Satisfaction Brand loyalty Chair of Marketing 52 Prof. Christoph Fuchs, Ph.D. Purchase INtention Category Need Brand awareness Make people experience the new Silk Collection Brand knowledge Step Rugs without even visiting a store. Step produced ‘rug flip-flops’ to let audience test- Brand attitude drive the rugs, touch them, walk on them at Brand purchase intention their home. Purchase facilitation Flip flops were sent to 400 people. 342 bought a Purchase rug or an accessory from the Silk collection. Spending $5000 for the production of flip flops Satisfaction caused over a $100,000 PR value through media coverage Brand loyalty Chair of Marketing 54 Prof. Christoph Fuchs, Ph.D. Purchase Intention Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 55 Prof. Christoph Fuchs, Ph.D. Purchase Facilitation Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Assuring buyers that there are no barriers hindering the Purchase facilitation purchase Purchase Satisfaction Brand loyalty Chair of Marketing 56 Prof. Christoph Fuchs, Ph.D. Purchase Facilitation Category Need “Most men have a selective memory. They know Brand awareness all about their car, but never seem to know their wife's bra size.” Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 57 Prof. Christoph Fuchs, Ph.D. Purchase Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Should be the MAIN objective Satisfaction Brand loyalty Chair of Marketing 58 Prof. Christoph Fuchs, Ph.D. Action stage Limited edition (scarcity appeal) Action stage Product trial = reciprocity Action stage Set measurable communication objectives Category Need | Satisfaction: When a consumer buys a product or service he or she has Brand awareness certain expectations about the purchase. When the product or service lives up to the required and desired benefits or surpasses expectations, the Brand knowledge consumer will be satisfied and thus inclined to choose the same brand whenever he or she buys the product again. Brand attitude Brand purchase intention | Brand Loyalty: is defined as the mental commitment or relation between a consumer and a brand. But there are different types of brand loyalty. Repeat Purchase facilitation purchase is not the same as brand loyalty. The former is often the result of habit or routine buying rather than of brand preference or brand loyalty. Purchase Instead of evaluating alternatives and choosing a new brand for every new Satisfaction purchase, in low-involvement, fast-moving packaged goods consumers tend to buy the same brands again without having a commitment to the brand. Brand loyalty Chair of Marketing 62 Prof. Christoph Fuchs, Ph.D. Set measurable communication objectives Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 63 Prof. Christoph Fuchs, Ph.D. Set measurable communication objectives Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 64 Prof. Christoph Fuchs, Ph.D. Dieting is effective… Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 65 Prof. Christoph Fuchs, Ph.D. Dieting is effective…but you need photoshop to see the results! Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 66 Prof. Christoph Fuchs, Ph.D. Brand Loyalty Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 67 Prof. Christoph Fuchs, Ph.D. Set measurable communication objectives Category Need Brand awareness Brand knowledge Brand attitude Brand purchase intention Purchase facilitation Purchase Satisfaction Brand loyalty Chair of Marketing 68 Prof. Christoph Fuchs, Ph.D. Focus on relevant objectives! do not overly think about competition do not use market share as an objective; do not try to be “number 1”; avoid sports and military analogies relevant objectives communication objectives brand awareness, brand attitude,… action objectives product trial, store visit, website visit,… Chair of Marketing 71 Prof. Christoph Fuchs, Ph.D. Think about other “purchase“ objectives as well! voting; protesting; donating time/money; lobbying; writing letters; subscribing to content; getting a job (resume); convincing a friend, family member, boss, employee,… Chair of Marketing 72 Prof. Christoph Fuchs, Ph.D. Communication Objectives Is this a good objective? To make Viennese residents aware that the Local Medical Center offers free blood-pressure checkups. How about this? In one year, to make 70% of Viennese residents who are over 50 aware that the Local Medical Center offers free blood-pressure checkups. Key elements: time horizon (planning period) target (who to reach) communication task (message) effect wanted (desired change) Must be consistent with marketing analysis/positioning! Chair of Marketing 73 Prof. Christoph Fuchs, Ph.D. Benefits of having clear objectives Helps determine your communication strategy (type of media, content of communication, location etc). To illustrate, what type of ads would you create to: Make people aware your product exists? Rationally convince people of benefits? Emotionally convince people of benefits? Medium for clothing, medical equipment, perfume? A clear objective helps you evaluate your strategy Chair of Marketing 74 Prof. Christoph Fuchs, Ph.D. Media strategy Chair of Marketing Prof. Christoph Fuchs, Ph.D. 76 Media Strategy Selection of media types: broadcast: TV, radio print: newspapers, magazines, direct mail internet: search engines, content sites, social media, own website,... transit: bus, billboards, rolling billboards personal mobile devices (apps, ads) also consider alternatives: personal selling, street advertising, guerilla marketing, outbound telemarketing, trade shows & events, sponsoring, PR,… criteria include: target segment, product, message, distribution, flexibility, budget, legal constraints, current & desired brand awareness and brand image (step in decision process), cost Vehicle selection: vehicles refer to the specific instruments for transmission of information within a medium. Time and Newsweek are vehicles within the magazine medium vehicle selection is based on efficiency of alternative vehicles in reaching the target (cost per thousand) Chair of Marketing 77 Prof. Christoph Fuchs, Ph.D. Types of Media Paid Media Owned Media Earned Media Offline: Traditional Advertising (TV, Radio, Print, Outdoor), Sponsorship, Online: Display/Banner Ads; Search Ads (Google Advertising); Social Network Ads; E-Mail Advertising Chair of Marketing 78 Prof. Christoph Fuchs, Ph.D. Types of Media Paid Media Owned Media Earned Media Offline: Brochures; Company Press Release; Retail-In-Store- Displays Online: Company Website; Company Blog; Company accounts in social networks (Twitter, etc.) Chair of Marketing 79 Prof. Christoph Fuchs, Ph.D. Types of Media Paid Media Owned Media Earned Media Offline: Mentions in traditional media outlets; Ratings and Reviews; WOM; Online: Mentions in digital media outlets; Online WOM; Posts in online communities; Online ratings and reviews Chair of Marketing 80 Prof. Christoph Fuchs, Ph.D. Types of Media -- Overview Chair of Marketing Prof. Christoph Fuchs, Ph.D. 81 Wrap Up Effective promotion strategy requires insight into customer’s buying process steps who’s involved at each step Where in process do you lose out? Guide customer through buying process & Match promotion tool to task in buying process Different buying process for different industries and customer segments (e.g., high vs. low involvement goods, experience goods, new vs. established products, functional vs. symbolic goods, complex vs. simple products, etc.) Chair of Marketing 83 Prof. Christoph Fuchs, Ph.D.  Thank You. Chair of Marketing Prof. Christoph Fuchs, Ph.D. 84