Introduction, marketing communications

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1 F0015 Marketing Communications Tuija Marstio 30.1.2014

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Lecture given to a group of bachelor students in spring 2014, first session on marketing communications

Transcript of Introduction, marketing communications

  • 1. F0015 Marketing CommunicationsTuija Marstio 30.1.20141

2. https://www.youtube.co m/watch?v=zn1F-lzoP08 3. You cannot not communicateThe word communication is based on a latin word an communis. Communis means common. The objective of communication is to create a shared understanding (Vuokko, 2003)Communication is about exchanging ideas and information. It is about behaviour. (Osmo A. Wiio:Johdatus viestintn, 1994) 4. What is marketing communication about? http://www.youtube.com/watch?v=xBIVlM435Zg (Seth Godin: Slice of bread and other marketing delights) Ideas that spread win The world does revolve around me I want to get me-mail, not email Efficient marketing communication: it is remarkable, worth making remark about 5. Marketing communication = Goal-oriented communication through which I want to sell you my ideas, my services or my productsThe tasks of marketing communications2/3/2014Laurea-ammattikorkeakoulu5 6. What marketing communication used to be like? 7. CONSUMER EXPERIENCES E.g.TIGI hair styling products: SPOIL ME: Give in to your cravings now! Pamper yourself with this smoothing, anti-static frizz remover, which.... COCKY: For hair that's full of itself! --- It's attitude in a tube! 8. New Challenges Customer's energy level, from ignorance to passionCustomer expectations4E Significance of emotions(Tore Strandvik 2008, CERS)Customer experiences rather than consumption 9. Customer Relationship DynamicsCustomer relationships begin for a reason!Customer relationships end for a reason! Customer relationships continue for a reason!Customer relationship WeCustomer relationship Others 10. Perfect Customer Relationship - Dont Sell, Make Buying EasyFailed customer relationship Perfect Customer RelationshipDifficult to comeEasy to comePity to leaveNice to stayEasy to leave Unpleasant to stay 11. - It took 100 -120 years to build the telephone red; it has taken 10 years to build the wireless telephone connections - Radio took 40 years to reach 50 million users; TV took 13 years, the internet 4 years, the iPod 3 years, Facebook 1 year and the iPhone less than a year to get 100 million users - It used to take two generations to build a major brand; now it takes 1-2 years (PR Smith & Ze Zook, 2011) 12. The way to go about marketing is changingInterrupting the client Pushig the messages through The decision making process Mass media 13. 40% of the SMEs dont have a webpage in Finland (Taloustutkimus, 12/2012) 80% of Finns look for information in internet to support their purchasing desicion Boston Consulting Group study: Use of digital services in OECD countries - Finnish consumers rank 2nd in use of digital services and in pruchasing in internet stores - Finnish companies rank 17th 14. Social networks information assessed:1. Who told us 2. When we were told People respond to social interactions better than we do to cold, hard data(D.Amerland, 2011) 15. Influences of digitalisation in business1. Way of doing purchases Points of purchase 2. The way product information spreads 3. The way of using the products 4. Competition 5. Products(Hakola & Hiila, 2012) 16. Case Rye bread: brand renovation https://www.youtube.com/watch?v=5XK9Wh_hEL8 Families > + young people Active participation in social media: FB, Instagram: share your recipes + TV-campaigns, outdoor advertising, advertorials, sponsoring We want to meet the clients online, at home, on the streets, everywhere (Kauppalehti: 13.1.2014) 17. Benefits of digitalization for the seller Cost savings Marketing and two-way communication Customer relationship management Ability to send out messages which have inmediate marketing impact(Merisavo & al, 2006, Amerland, 2011)Ability to receive messages that have inmediate marketing value 18. The benefits of the digitalization for the client Easiness to find information and to buy online Two-way communication Personalization Trust To what extent the communication is bidirectional? (Merisavo & al, 2006) 19. A revised marketing model, online Content Context Connection CommunitySislt Konteksti Yhteys Yhteis 20. Objectives of marketing communications Basic Objectives: Inform Persuade Remind To Alter DemandTo influence behavior 21. Promotion and the Demand Curve Promotion efforts may be targeted to increase the demand for the firms products (kysynnn lisminen)PriceQuantity 22. Promotion and the Demand Curve Promotion efforts may be targeted to make demand for the firms products more inelastic and so more resistant to countermoves by the competitionPriceD1 D2Quantity(hintajousto jykemmksi) 23. Promotion and the Demand Curve PriceD DQuantityPromotion efforts may be targeted to both increase demand for the firms products and to make demand more inelastic (kysynnn lisys ja samalla hintajousto jykemmksi) 24. The ladder of effects PurchaseConviction Preference Liking Knowledge Awareness Brand ignorance(Blythe, Marketing Communications, 2000) 25. Hierarchy of Effects Model The think, feel, do model: First, consumers become aware of and learn about a product (think) Then develop a positive or negative attitude about it (feel) Ultimately move to purchasing it (do) Thinking steps: -awareness, knowledge Feeling steps: -liking, preference Doing steps: -conviction, purchase 26. Viestinnn vaikutushierarkiamalli AIDA Purchase Conviction Preference Liking AwarenessKnowledgeAwareness Attention Cognitive (Thoughts)InterestDesireAffective (Feelings)ActionConative (Intention) 27. Process of engagement online Target group sizeTarget group sizeAIDATime(Keskinen & Lipiinen, 2013)FIGATime 28. Ladder of Engagement Model ProductsBrands Ads Discussions Ideas Reviews Ratings( PR Smith & Ze Zook, 2011) 29. Integrated marketing communication = A WELL BALANCED BLEND OF THE M.MIX WHICH REPEATS THE SAME MESSAGE THROUGH DIFFERENT CHANNELSORGANISAATIO SUUNNITTELEE MARKKINOINTIVIESTINTNS SITEN, ETT KAIKKI ELEMENTIT OVAT YHDENMUKAISIA JA TUKEVAT TOISIAAN.Starting point: The receiver of the message does not make difference of the sources of the information (Vuokko, 2003) 30. Benefits of integrated marketing communicationsSynergy: sender & receiver of the message The strategic decisions of marketing shared by all marketing communication instruments Less overlapping in planning Operational efficiencyCost savings Fitting the image and actions together(Vuokko, 2003)Less is more 31. Selecting the channels for marketing communications Webpages Social media Search engines Traditional media Fairs Catalogue marketing Direct marketing (KL 5.4.2011)Everybody Different target groups Everybody Campaigns, reminder ads B2B Everybody Existing clients 32. How the importance of promotional elements varies during the consumers purchase decision Importance of promotional toolHighLowPersonal selling Sales promotionPublic relations AdvertisingPrepurchasePurchasePostpurchaseStage of consumers purchase decision 33. References: D.Amerland, 2011: Online Marketing Help; J. Blythe,2006: Essentials of Marketing Communications; C. Hackley, 2010: Advertising and Promotion; I.Hakola & I. Hiila,2012: Strateginen ote verkkoon; T.Keskinen & J. Lipiinen, 2013: Asiakkaan matkassa; K. Lindberg-Repo, 2005: Asiakkaan ja brndin vuorovaikutus; PR Smith & Ze Zook, 2011: Marketing Communications; P. Vuokko, 2003: Markkinointiviestint merkitys, vaikutus, keinot; Tore Strandvik/Corporate image seminaari 200834