Introduction, marketing communications
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Lecture given to a group of bachelor students in spring 2014, first session on marketing communications
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Introduction, marketing communications
- 3. ”You cannot not communicate” The 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 viestintään, 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 products The tasks of marketing communications 2/3/2014 Laurea-ammattikorkeakoulu 5
- 6. What marketing communication used to be like?
- 8. 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!
- 9. New Challenges Customer's energy level, from ignorance to passion Customer expectations 4E Significance of emotions (Tore Strandvik 2008, CERS) Customer experiences rather than consumption
- 10. Customer Relationship Dynamics Customer relationships begin for a reason! Customer relationships end for a reason! Customer relationships continue for a reason! Customer relationship We Customer relationship Others
- 11. Perfect Customer Relationship - Don’t Sell, Make Buying Easy Failed customer relationship Perfect Customer Relationship Difficult to come Easy to come Pity to leave Nice to stay Easy to leave Unpleasant to stay
- 12. - 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)
- 13. The way to go about marketing is changing… Interrupting the client Pushig the messages through The decision making process Mass media
- 14. • 40% of the SMEs don’t 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
- 15. 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)
- 16. Influences of digitalisation in business 1. 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)
- 17. 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)
- 18. 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
- 19. 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)
- 20. A revised marketing model, online • • • • Content Context Connection Community Sisältö Konteksti Yhteys Yhteisö
- 21. Objectives of marketing communications • Basic Objectives: • Inform • Persuade • Remind To Alter Demand To influence behavior
- 22. Promotion and the Demand Curve Promotion efforts may be targeted to increase the demand for the firm’s products (kysynnän lisääminen) Price Quantity
- 23. Promotion and the Demand Curve Promotion efforts may be targeted to make demand for the firm’s products more inelastic and so more resistant to countermoves by the competition Price D1 D2 Quantity (hintajousto jäykemmäksi)
- 24. Promotion and the Demand Curve Price D D Quantity Promotion efforts may be targeted to both increase demand for the firm’s products and to make demand more inelastic (kysynnän lisäys ja samalla hintajousto jäykemmäksi)
- 25. The ladder of effects Purchase Conviction Preference Liking Knowledge Awareness Brand ignorance (Blythe, Marketing Communications, 2000)
- 26. 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
- 28. Process of engagement online Target group size Target group size AIDA Time (Keskinen & Lipiäinen, 2013) FIGA Time
- 29. Ladder of Engagement Model Products Brands Ads Discussions Ideas Reviews Ratings ( PR Smith & Ze Zook, 2011)
- 30. Integrated marketing communication = A WELL BALANCED BLEND OF THE M.MIX WHICH REPEATS THE SAME MESSAGE THROUGH DIFFERENT CHANNELS ORGANISAATIO SUUNNITTELEE MARKKINOINTIVIESTINTÄNSÄ SITEN, ETTÄ 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)
- 31. Benefits of integrated marketing communications Synergy: sender & receiver of the message The strategic decisions of marketing shared by all marketing communication instruments Less overlapping in planning Operational efficiency Cost savings Fitting the image and actions together (Vuokko, 2003) ”Less is more ”
- 32. 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
- 33. How the importance of promotional elements varies during the consumer’s purchase decision Importance of promotional tool High Low Personal selling Sales promotion Public relations Advertising Prepurchase Purchase Postpurchase Stage of consumer’s purchase decision
- 34. 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. Lipiäinen, 2013: Asiakkaan matkassa; K. Lindberg-Repo, 2005: Asiakkaan ja brändin vuorovaikutus; PR Smith & Ze Zook, 2011: Marketing Communications; P. Vuokko, 2003: Markkinointiviestintä – merkitys, vaikutus, keinot; Tore Strandvik/Corporate image seminaari 2008 34