Marketing Real People Real Choices Ninth Edition Chapter

Marketing: Real People, Real Choices Ninth Edition Chapter 14 Promotion II Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Learning Objectives 14. 1 Understand how marketers communicate using an updated communication model that incorporates new social media and buzz marketing activities. 14. 2 Understand the elements of direct marketing. 14. 3 Understand the important role of personal selling, the different types of sales jobs and the steps in the creative selling process. 14. 4 Explain the role of public relations and the steps in developing a public relations campaign. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Real People, Real Choices: Stylitics, Inc. • Which option should Rohan pursue? § Option 1: Spend more money by increasing budget to pay a social media agency to create a campaign or pay for advertising on social platforms. § Option 2: Create our own campaign, coming up with a concept for a social media campaign internally and identifying external partners to promote our content. § Option 3: Continue as we had been, accepting that until we had resources to upgrade our social media efforts, we weren’t going to be able to do much. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Social Media Marketing • Marketers no longer are the only ones who talk about their products. § Millions of consumers have the ability and desire to spread good (or bad) news about products. § The many-to-many communication model is based on consumers talking to one another about goods, services, and organizations. § The changing communication landscape has been referred to as the groundswell. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Social Media • Internet-based platforms that allow users to create their own content and share it with others who access these sites. • Examples of social media include Facebook, Twitter, Pinterest, You. Tube, Yelp, Wikipedia, and Second Life. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Social Networks • Social networks, like Facebook and Twitter, are sites that connect people with other people. § Marketers monitor social networks to learn what consumers are thinking about the brand the competition. . § Marketers reach influential opinion leaders by participating in social media conversations. § Social networks provide an opportunity to create a brand community. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Virtual Worlds • Virtual worlds: Online highly engaging digital environments where avatars “live” and interact with other avatars in real time § Globally, consumers spend over $11 billion a year to buy virtual goods! § Second Life is one of the largest and best-known virtual worlds § Some others include Disney’s Club Penguin, Habbo Hotel, Foo. Pets and Smeet Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Product Review Sites • Product review sites: Social media sites that enable people to post stories about their experiences with goods and services. § Popular review sites include Trip. Advisor, Yelp, and Angie’s List Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Mobile Apps and Location-Based Social Networks • Location-based social networks integrate sophisticated GPS technology that enables users to alert friends of their exact whereabouts via their mobile phone. • Augmented reality (AR) views a physical real world enhanced or altered by computer-generated sounds, videos, graphics or GPS data. • The AR app game “Pokemon Go” became a short-lived sensation in 2016 and allowed marketers to pay for “pokestops” and “gyms” plotted on a customized version of Google Maps. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

The Internet of Things • The Internet of Things refers to network of physical things, vehicles, buildings, devices which have embedded sensors, electronics, and network connectivity that can collect data and communicate it to each other—the many-to-many of things. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Direct Marketing • Any direct communication to a consumer or business designed to generate a response in the form of an order, a request for further information or a visit to a place of business for purchase of a product. • Includes mail order, telemarketing, direct response advertising and M-commerce Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Figure 14. 1 Key Forms of Direct Marketing • Direct marketing: direct communication to a customer designed to generate a response Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Mail Order • Mail order comes in two forms: § Catalog: a collection of products offered in book form, usually consisting of product descriptions and accompanied by photos of the item § Direct mail: a brochure/pamphlet offering a specific good or service at one point in time Catalog Choice Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Telemarketing • Telemarketing: The use of the telephone to sell directly to consumers and business customers. § Profitable way for B 2 B marketers to keep in touch with small clients. § FTC established the National Do Not Call Registry to allow consumers to limit number of telemarketing calls they receive. Do Not Call Registry Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Direct Response Advertising • Direct-response advertising allows consumer to respond by immediately contacting the provider with questions or an order. § Direct-response TV (DRTV) includes short commercials of less than 2 minutes, 30 -minute or longer infomercials and home shopping networks. § Infomercials are typically half-hour or hour-long commercials that resemble a talk show, often with heavy product demonstration elements. Snuggie (2008) Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

M-Commerce • M-commerce refers to promotional and other ecommerce activities transmitted over mobile phones and other mobile devices. § M-commerce through text messages is known as short -messaging system (SMS) marketing. § M-commerce has same “dark side” potential as other forms of direct marketing in terms of unwanted “junk mail”. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

The Elements of Direct Marketing • Direct marketing involves making appeals directly to customers through various methods. § § Mail order Telemarketing Direct response advertising M-commerce Have you ever purchased an item you had originally seen promoted during an infomercial? What was your experience with the product? Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Personal Selling: Adding the Personal Touch to the Promotion Mix • Personal selling occurs when a company rep interacts directly with a customer or prospective customer to communicate about a good or service. § § § Far more intimate form of promotion compared to massmedia material Salespeople are the eyes and ears of firm. Many opportunities in sales for marketing students! Occupational Outlook Handbook Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Figure 14. 2 Factors that Influence a Firm’s Emphasis on Personal Selling Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Technology and Personal Selling • Technology makes it easier for salespeople to do their jobs. § Customer relationship management (CRM) software. (Salesforce. com) § Partner relationship management (PRM) is a new-generation system § VOIP systems Salesforce. com is one widely used CRM system Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Role of Personal Selling • One-to-one marketing communications is essential for certain product types and business markets. § Personal selling is needed when a firm engages in a push strategy. • Technology has enabled salespeople to telecommute and work from a distant physical office. How have technological advances enabled salespeople to provide more personalized and timely one-to-one communications? Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Figure 14. 3 Types of Sales Jobs Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

The Different Types of Sales Jobs • There are several different types of sales jobs found in B 2 B and B 2 C environments. § Team-based selling is gaining popularity in certain industries. • Sales approaches may be broadly categorized as either transactional or relationship selling. Think about the last salesperson with whom you personally interacted. How would you classify them? Did they use a transactional or relational approach? Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Public Relations (1 of 2) • Public relations (PR) is the communication function that seeks to build good relationships with an organization’s publics including consumers, stockholders and legislators. § Basic goal of PR: Do something good and then talk about it. § When placed successfully, PR messages are more credible than advertising. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Public Relations (2 of 2) • Marketers create and manage publicity, which is unpaid media exposure about a company • Crisis management: (the most important PR function) the process of managing a firm’s reputation when a negative event threatens the organization’s image Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Figure 14. 5 Objectives and Tactics of Public Relations • A public relations campaign is a coordinated effort to communicate with the firm’s public(s) Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Brand Ambassadors and Evangelists • Zealous consumers can be the best salespeople a company can ever find. • Marketers recruit loyal customers to help them spread the word about their products, usually for free. • Companies sometimes identify these consumers when they blog about the product. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Guerrilla Marketing • Guerrilla marketing involves “ambushing” consumers with promotional content in places they don’t expect to encounter such messages. • Ambient advertising • Staging “flash mobs” • IBM painted hundreds of “Peace Love Linux” logos on sidewalks in San Francisco. • BK Affordables “Wallet Drop” campaign in Singapore Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Buzz Marketing • Buzz: word-of-mouth communication that customers view as authentic. • Buzz marketing: marketing activities designed to create conversation, excitement and enthusiasm about a brand. • Makes PR a more important part of the promotion mix. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Viral Marketing • Viral marketing refers to activities aimed at increasing brand awareness or sales via many-tomany communication. § Apple implements viral marketing when it inserts the message “Sent from my i. Pad/i. Phone” in a text. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

“Many-to-Many” Marketing • Social media platforms have fueled the rise of the “many-to-many” communication model. • Companies build buzz for their brands using viral marketing and brand ambassadors. § When consumers talk, both positive and negative brand information spreads rapidly. A friend owns a food truck business and has asked your advice on using social media to promote his business. What suggestions would you offer? Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Ethical Problems in Buzz Marketing • Buzz marketing efforts create potential for ethically questionable behaviors. § § Activities designed to deceive consumers Directing buzz marketing at children or teens Buzz marketing activities that damage property Sock puppeting Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Table 14. 1 Measuring the Effectiveness of PR Tactics (1 of 3) • Personal (subjective) evaluation of PR activities § Evaluation of PR activities by superiors may occur at all levels of the organization. • Matching of PR activity accomplishments with activity objectives § Simple counts of actual PR activities accomplished compares with activity goals set for the period. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Table 14. 1 Measuring the Effectiveness of PR Tactics (2 of 3) • Evaluation of communication objectives through opinion surveys § Surveys are used to determine if image/communication are met within key groups. • Measurement of coverage in print and broadcast media § Systematic measurement of coverage in print media and broadcast media Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

Table 14. 1 Measuring the Effectiveness of PR Tactics (3 of 3) • Impression measurement § Measure the size of the audience for all print and broadcast coverage. § Often, assessment includes comparisons in terms of advertising costs for same number of impressions. Copyright © 2018, 2016, 2012 Pearson Education, Inc. All Rights Reserved.

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