student SME Lecture3 7June© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Integrated...

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Professor Stella L M SoProfessor Stella L.M. So

201168

Prof. Stella L.M. So, CUHK ( June 2011)

1. :

2.

3.

4. (Effective IMC) SME

5. online?

6. IMC

7 ( )


7. ( )

2

=

??

??

?

Prof. Stella L.M. So, CUHK ( June 2011) 3

(needs) (wants)


( ) ( ) (exchange)

:: ,() ,2007,74

: (Needs) (Needs) ( Wants) (G d & S i ) (Goods & Services)


Marketing Management OrientationsMarketing Management Orientations

Productionconcept

ProductConcept

Sellingconcept

MarketingConcept

SocietalMarketing


concept Concept concept Concept Concept

6

Th S i t l M k ti C tThe Societal Marketing Concept


()

()


() ()10

Building Customer Relationships

Customer Relationship Management is the overall process of building andthe overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.


Capturing Value from Customers

Creating Customer Loyalty and Retention()( )

Growing Share of Customer()()

Building Customer Equity()


??

Customer Relationship Groups

ButterfliesGood fit between companys

ff i d t

True FriendsGood fit between companys

ff i d t High ity

offerings and customers needs; high profit potential

offerings and customers needs; highest profit potential

Profitability

rofit

abili

StrangersLittle fit between companys

BarnaclesLimited fit between companysLowen

tial P

r

Little fit between company s offerings and customers

needs; lowest profit potential

Limited fit between company s offerings and customers need;

low profit potential Profitability

Pote

Short-term Long-term


Customers CustomersProjected Loyalty

Branding Strategy Process

1. Strategic vision: mission, brand core value, brand promise

2 Target market : Who should be focused2. Target market : Who should be focused

3. Objectives : Financial and marketing goals

4. Brand Positioning: Key benefits to customer to purchase


5. Programs : 4Ps

15

Components of a Branding Strategyp g gy

Target MarketWhich customer do you want ?

B i Obj ti

Business ObjectivesWhat do you want from the business ?

Target Competitoring

g pWhat competitor do you need to defeat?

Benefit Advantage Why should customers buy from you? g

Posi

tioni

y y y Competitive Advantage

Why will you win ?

Branding Programme:Bra

ndin

g

Branding Programme: Advertising Promotion

Public RelationsSelling Internet Other


How will you implement your branding strategy

16Source : Seton D. (2008) Branding 101, Trump University , John Wiley & Sons, Inc. p.75

(To develop an Effective advertising plan)


Advertising plan

1. Identifying the Target Audience2. Specifying Promotion Objectives2. Specifying Promotion Objectives

Hierarchy of effects (AIDA concept)- Attention ()

Interest ()- Interest ()- Desire ()- Action ()

3 S i h P i B d3. Setting the Promotion Budget4. Designing the advertising

Message content ( What to say?)Message content ( What to say?)Message execution ( How to say?)

5. Media planningp g6. Scheduling 7. Evaluating


(StimulateDemand)

(Provide

Information)

Demand)(DifferentiateProductsorInformation) Services)

(Accentuate

(PromotionalObjects)

(StabilizeSales)

(AccentuateProductsorServices)


(Integrated Marketing Communication)(Integrated Marketing Communication)


(Integrated Marketing Communication)

IMC involves coordinating the various i l l d h k ipromotional elements and other marketing

activities that communicate with firms customers.


(IMC) (IMC)Broadcast

mediaPrint media (newspapers

Public Relations/ Internet/media

(TV/radio)(newspapers, magazines)

Relations/publicity interactive

T

Directmarketing

Out-of-home media

Target Audience

SalesSales PromotionPersonal selling

Product placements (TV and movies)

Events and sponsorshipWord-of-mouth

Point-of-purchase (displays,


(TV and movies)sponsorshippackaging)

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand Identity is a 2010 Brand Value(Millions of Dollars)combination of factors:

Name, logo, symbols, design packaging

(Millions of Dollars)

1. Coca-Cola $ 70,452 design, packaging, product or service performance, and image

2. IBM $ 64,7273. Microsoft $ 60,895 4 G l $ 43 557

p , gor associations in the consumers mind.

4. Google $ 43,5575. GE $ 42,8086 M D ld' $ 33 5786. McDonald's $ 33,578 7. Intel $ 32,015 8 Nokia $ 29 495

IMC plays a major role in the process of 8. Nokia $ 29,495

9. Disney $ 28,731 10. HP $ 26,867

role in the process of developing and sustaining brand


10. HP $ 26,867 identity and equity.

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrated Marketing CommunicationsIntegrated Marketing Communications

Customers are changingg g Marketing strategies are changing

The communications model is shifting from broadcasting to narrowcasting


g g

25

Ad ti iAdvertising

Reaches geographically

Impersonal Not directly persuasivegeographically

dispersed buyers Low cost per exposure

Not directly persuasive One-way

communication Enables repeat

messages Very expressive tool

Costly

Very expressive tool

Positives NegativesPositives Negatives


Personal SellingPersonal Selling

Most effective at certain stages of the b ing process

Extremely expensive per exposure M diffbuying process

Quick adjustments can be made

Messages may differ between salespeople

Customer relationships are formed

Positives Negatives


Various Uses of Sales Promotion

Introduce new Get existing t t b

Various Uses of Sales Promotion

Introduce new products customers to buy more

Attract new customersCombat Competition

SalesPromotion

p

Maintain sales in off season

Enhance personal selling

Increase retail i t i

Tie in advertising & personal


inventoriespselling

S l P tiSales Promotions

Attract consumer attention

Short-livedOft t ff ti iattention

Offer strong incentives to purchase

Often not effective in long-run brand preferencece ves o pu c se

Reward quick response

p e e e ce

Positives NegativesPositives Negatives


Public Relations & Direct Marketing ub c e at o s & ect a et g

Public Relations

i C i

Direct Marketing

Believable, Credible

Reach prospects who

Less public Immediate Reach prospects who

avoid salespeople and ads

Immediate Customized

Q i k Low Cost

Quick Interactive

Can be dramatic


Illustrative Factors Affecting Promotion Strategy (heading)

Advertising/ sales Balanced Personal sellingAdvertising/ sales promotion driven

Balanced Personal selling driven

Number and dispersion of buyers

Buyers information needs

Small

Hi h

Large

y

Size and importance of purchase

High

Large

Low

SmallDistribution

P d t C l it

DirectChannelProduct Complexity

Post-purchase contact required

High

Yes

Low

No


YesNo

31

SMEHow to get the best out of your promotion

budget?budget?


Promotional tools used over the product life cycle of Purina Dog ChowDog Chow


Communication and Creativity Co u c o d C e v y


Brand DynamicsBrand Dynamics

HighHigh Success Route

alue

Low Failure Route

Va

Weak Strong


Awareness

Source: Brand Asset Valuator, Young & Rubicam, yr.com, 2008

You must explain value to your customers first You must explain value to your customers first, then link value to your promotion

programme programme.

I know you but I dont like you

Brand awareness alone does not build strong brand

Prof. Stella L.M. So, CUHK ( June 2011) Source : Seton D. (2008) Branding 101, Trump University , John Wiley & Sons, Inc. p.127

?


Traditional Transmission ModelTraditional Transmission Model

Integrated I f ti

ConsumerA di

TV, Broadcasting,Newspaper,

Information Audience p p ,

Magazine

Prof. Stella L.M. So, CUHK ( June 2011) Source : Li Xiaohui , Niu Jishun, Chen Youfang and Gao Xue (2010). Integrated Marketing

Communications in Era of New Media-Blue Ocean for SMEs. International Conference on E-Business and E-Government.

NM Communication ModeNM Communication Mode

Information/A di

Information/A diNew Media /Audience Audience

Prof. Stella L.M. So, CUHK ( June 2011) Source : Li Xiaohui , Niu Jishun, Chen Youfang and Gao Xue (2010). Integrated Marketing

Communications in Era of New Media-Blue Ocean for SMEs. International Conference on E-Business and E-Government.

The Internet is Shifting the Power Position to the CustomerCustomer

How the Money is Spent is Changing.

Internet Advertising: Very Powerful , Growth is Accelerating.

Consumers Spend 10 hrs/person/day with Media of all Kinds

Ad ti i A C lid tiAdvertising Agency Consolidation

Newly Empowered Consumersy p

The Internet Will be the Most Prominent Medium in the Lives

of the 18-34 Age Group.

41

Prof. Stella L.M. So, CUHK ( June 2011) Source:TheEconomist,CrownedatLast:ASurveyofConsumerPower,April2,2005,116.

41

online? online?


SME ????SME ????

: ( Cost Effective)

, , ( Reach a lot of people who go online)


2

(Pay)( y)

(pay per- click) , pay-per view, p y pe v ew,

Banner Ad

D t b ( il

(Free)Blog

( Get Traffic) Data base (e-mail, preferences)

Blog (,Xanga) ,

( Social Media( Social Media

Facebook, Twitter, MSN,) How well SMEs online promotion

campaign are performing?Prof. Stella L.M. So, CUHK ( June 2011)

campaign are performing?

IMC IMC


::(Communication Strategy)(Communication Strategy)


: : : -

Prof. Stella L.M. So, CUHK ( June 2011) Source : Hung Fook Tang Facebook

e.g.


- :


:


e g , e.g.


(Sale Promotion)


(Public Relationship) ( p)

e.g. 2009200,000e.g. 2009 200,000


= (word of mouth) = (word of mouth) = ()


::(Communication Strategy) ( gy)


(Communication Strategy) (Communication Strategy)

:


: : -

Prof. Stella L.M. So, CUHK ( June 2011) Source : Hoi Tin Tong Facebook

: -


: :


(Sale Promotion)( )


E-COUPON


: :


(Public Relationship)


??


Effectiveness of B di C i iBranding Communication


Evaluating Advertising EffectivenessEvaluating Advertising Effectiveness

Communications effectsS l d fi ff Sales and profit effects

Return on Advertising Investment is the net return on advertising investment divided byreturn on advertising investment divided by the costs of the advertising investment


Measuring the effectiveness of promotionMeasuring the effectiveness of promotion

Sales Sales inquiresSales inquires Change in attitudes toward the

dproduct Public knowledge ub c ow edge Awareness


Brand Awareness Brand KnowledgeBrand Knowledge Brand Positioning Brand Promise Brand Personality Recognition Brand Personality Recognition Brand Loyalty & Retention Brand Value

Prof. Stella L.M. So, CUHK ( June 2011) Source: Kolter & Proertsch (2006).TheB2B brand management, p.196

(Customer-Based Brand Equity Model Model)

Prof. Stella L.M. So, CUHK ( June 2011) Source: Kolter & Proertsch (2006).TheB2B brand management, p.164


Source : Seton D. (2008) Branding 101, Trump University , John Wiley & Sons, Inc. p.127

(1975) (1991) (1978)

:ComfitLC

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(1960) (1991)

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Anything can be Branded !! Corporations

y g

p Products

C diti Commodities Locations Endorsers

E Events Individual d v du


Th k !Thank you !


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