Size of direct marketing in terms of media spending

-Product registration

-Purchasable consumer lists

- Database:

• Corporate memory of all important consumer info
• Name, address, phone, email, purchase history
• Allows marketer to select most relevant customers and target them

- Direct response advertising

- 60% of infomercial purchasers prefer it to store shopping

- bad reputation (negative attitude)

- lack of store experience

- lack of prestigious affiliation

- clutter

- privacy issues (do not call lists)

Pros:

• persuasive
• instant feedback
• flexibility
• demonstration
• relationship building
• ensures distribution of new products

Cons:

• labor intensive
• costly
• time consuming
• poor reputation

-Gathering information:

• eyes and ears of company
• can report customer reactions and trends

-Providing information

• provide relevant information to consumer
• consistency

- Fulfilling orders

• advertising alone can't do this

- Building relationships

• Trust

- Direct inducement that offers extra incentives

- Aimed at accelerating product movement from producer to consumer

- over 50% of advertising/promotion goes to sales promotion

-expensive, but effectie

-ex) clearance, sales, red-tag events

Pros:

• tangible, immediate, adds extra value to brand
• maximizes sales volume
• triggers action

Cons:

• may hurt profits
• negative effects on brand attitudes and marketing strategy
• deal prone instead of brand loyal

-Incentives in pull strategy: consumers

-Incentives in push strategy: retailers

- management of the relationships and communications with the public for the purpose of creating mutual good will

-a group of people whose needs must be satisfied by the organization

PR

• unpaid media
• no control
• no repetition
• high credibility
• hard to measure results

Advertising

• paid media
• complete control
• repetition
• low credibility
• precise reach and frequency

-news releases / press releases

• most widely uses
• cover time-sensitive hard news

- press kits

• supplements publicity with variety of info

- photos and audio visual materials

- publications

• annual reports
• house organs (internal and external)

-cash or in-kind donation to support a property in return for access to commercial potential associated with that property

• sports, entertainment, nonprofit organizations, events

- alternative when advertising is restricted

-sponsorship is conditional

• strategic philanthropy

Benefits

• public approval
• involvement and participation
• enhance corporate image
• improve employee morale
• cost efficient (wide brand exposure)

Cons

• expensive to be a sole sponsor
• sponsoring clutter (NASCAR)
• hard to measure effect

-nonsponsor advertises with a sports event and gives a false impression that it is a sponsor

- corporate partnership with a nonprofit organization or a charitable event (ex: RED)

-public may or may not respond favorably to cause-related marketing (ex: buy-less-crap)

-donating a physical site to a school / city / etc

• Coors Field
• Minute Maid Park

- may purchase naming right

• Dell Diamond

- aimed at increasing awareness of company and enhancing company image

- may enhance:

• perceived product quality
• perceived management competence

- the goal is to create exchanges that satisfy the needs, wants, and objectives of consumers

- key is consumer-centricity

- what marketer wants to achieve

-2 types:

• needs-satisfying objectives
• sales-target objectives

-how to achieve objectives

-defines target market

-optimizes 4 p's: produce, price, place, promotion

what actions to take to achieve the objectives

-what kinds of needs and how to satisfy them

- fits most companies

- good for new product launches

- traditional marketing approach

situation analysis

↓

marketing objectives

↓

marketing strategy

↓

marketing tactics

- suitable for small companies

- day-to-day short them decisions

- focus on a single, competitive tactic

- ex) Domino's Pizza

marketing results

↑

marketing strategy

↑

marketing tactics

- a company's relative promotional spending in the market

- market "shouting"

- "liveblood of the business is the consumer, not the product"

- creating, maintaining, and enhancing long-term relationships with customers and other stakeholders

- sale is not the end but the beginning in relationship marketing

- employees

- investors

- retailers

    company's sales   

total sales in that market

- everything a marketer does sends a message

- every contact between a consumer and a brand contributes to the consumer's brand concept

- every single marketing activity has a communication element in it

- communication is not part of marketing, marketing is a part of communcation

- planned messages

- product messages

• price and place

- service messages

• customer service

- unplanned messages

• employee gossip
• news coverage (good or bad)
• word of mouth

- must be:

• specific
• realistic
• measureable

[image]

- action: buy product / brand

- desire: want product / brand

- conviction: believe product features and benefits exist

- comprehension: know brand features and benefits

- awareness: know brand exists

- everyone who should know about the brand

- larger than target market

- includes purchasers and people that may influence purchaser's decision

- TV

- radio

- newspapers

- etc

- more specific than media type

- certain category of a certain media type

- ex) 'Desperate Housewives,' 'NY Times,' 'People,' Google, Facebook

- sales can be made without advertising

- advertising takes a long time

- market share increase related to marketing budget increase

- sales increase with additional advertising, but flattens at some point

- sales response takes time

- advertising durability is brief

- some level of minimum investment is necessary

- how to direct advertising messages to the righty people in right place at right time

• where to advertise
• which media vehicle to use
• what time to year to advertise
• how often to advertise

- increasingly complex media environment

- high demand for accountability

- requires:

• analytical skills
• creative mind

- consumers spending more time with media than ever before

- increase in time spent with consumer-supported media than advertising-supported media

- selective / partial consumption

- simultaneous use of media

- consumption of partial contents

- advertising costs increased faster than inflation

- media vehicles with a big audience are sold at a premium

- :30 second spot on "American Idol" costs $700K

media objectives: audience objectives

- define specific types of people the advertiser wants to reach

- sex, age, income, education, occupation, marital status, children, activities, etc

- message weight

- message distribution

- message continuity

-reach: number of people or households exposed to a certain type of media at least once in a given period of time

-frequency: average number of times individuals of householes are exposed to an ad

-inverse relationship between reach and frequency

- how to spread out media budget throughout a certain period of time

- continuous: ||||||||

- flighting: ||||___||||

- pulsing: ||||,,,,||||

- "advertising needs to be there when a consumer is ready to buy"

- to schedule ads when a consumer is likely to buy the product

- achieving objectives while minimizing the cost

achieving objectives whatever the cost

- cost per point

- cost it takes to reach 1% gross rating

- cost per thousand

-      total cost       

# in audience x 1000

pros and cons of each media type (newspapers, magazines, t, radio, internet, direct mail, outdoor / transit)

- newspapers: quick placement, local targeting, audience interest, timely

- magazines: high quality graphics / reproduction, prestige factor, color, selective target

- tv: sound, movement, demonstration, social dominance

- radio: intimacy, loyalty, quick changes, frequency, reproduced

- internet: immediate response, interactive, selective, global

- direct mail: measureable, 3-D, graphics, personal, adaptable

- outdoor / transit: local targeting, graphics, color, simple message, reproduction possible

- they encode message marketer wants to convey

- copy writer

- art director

- creative director

- "creatives"

- audience resonance

- a message that resonates with the audience

- "WOW!"

- strategic relevance

- message achieves advertising objectives

what is a creative brief?

- guidelines for developing an ad

- brief statement of intended advertising strategy

- developed by account planning team

- determines what to say

- leaves how to say it up to creatives

- explorer

- artist

- judge

- warrior

- creativity is everywhere

- creativity is important in all business and human functions

- "is it remarkable?"

- otaku

- design rules now

- dont be safe (safe = risky)

- very good is boring

- 60% of women work outside of home

• more income
• less time to shop

- expanding use of credit cards

• easier, faster transaction
• credit-card security technology

- Strength (internal)

- Weaknesses (internal)

- Opportunities (external)

- Threats (external)

- 4 categories used by advertising managers when reviewing a marketing plan

- alternative advertising method

- compensated inclusion of branded products or brand identifiers with mass media programming

- Stephen Spielberg (ET & Reese's Pieces)

- Why? Consumers are tuning out (do-not-call lists, pop-up and spam blockers)

- offers new way to reach consumers

sex appeal

- Sam Shahid (Calvin Klein, A&F)

- "Sex can be used for any product"

- criteria: physically attractive models, suggestive behavior, setting and photographic techniques, verbal elements

- prevalent in high circulation magazines, primetime tv, banner ads on high-traffic websites

- AIDA: attention, interest, desire, action

- "distraction effect": pay more attention to sex-content than brand/product info