Reflection and Discussion Forum Week 5
Reflection and Discussion Forum Week 5Assigned Readings:Chapter 11. Advertising Messages and Marketing Communication.Chapter 12. Integrated Marketing Communication and Media Choices.Chapter 13. Social Media. Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:
- Imagine you were designing an ad for a (choose one): car, laptop, health clinic. What would your ad look like if you were targeting: a) old people, b) kids, c) super rich people, d) What celebrity would you have endorse your brand? Why?
- Create a press kit that will be sent to customers and the media announcing a new product launch.
- Have you ever recommended a particular product to a friend or bought a product based on a recommendation from a friend. Would you be more likely to buy a product based on word-of-mouth or advertising? Why?
[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student’s own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]
Activity 5
This activity/assignment will help students understand advertising messages and marketing communications.
Activity I: Use the Internet to research and identify 10 ads that have used subliminal messages, prepare a report about these ads. Is it very easy for consumers to identify these hidden messages? What effect do they have if any? If not, why do you think advertisers use them?
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
11.
1
Advertising Messages and Marketing Communications
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11. 2
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Marketing Framework
3
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11.
Discussion Questions #1
“Milk—It does the body good” and “Got milk?” are both advertisements for milk.
Which do you think is more effective? Why?
Why don’t the advertisements say “Smith’s Milk—it does the body good?”
Why do you think advertising is important?
4
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11.
What Is Advertising?
Advertising
Primary means to communicate with customers
Integrated Marketing Communications (IMC)
Message should be consistent and complementary across all media
5
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11.
Why Is Advertising Important?
Two reasons for importance
Facilitates customers’ awareness
Attempts to persuade potential customers that the brand is superior
Effect
Has both short- and long-term effects
Expected to generate sales but it is hard to prove
Advertising effects are cumulative
6
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11.
Goal Models
(slide 1 of 3)
AIDA: Attention, Interest, Desire, Action
Capture attention
Pique interest
Make consumer desire the product
Get consumer to act (buy)
7
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11.
Goal Models
(slide 2 of 3)
Other models
Awareness knowledge preference brand conviction purchasing
Awareness interest brand evaluation trial adoption
Ad exposure message received attitude change intent to buy buy
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11.
Goal Models
(slide 3 of 3)
Three types of goals
Cognition: increase awareness and knowledge
Affect: enhance attitudes and associations
Behavior: encourage buying
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11.
Discussion Questions #2
Can you think of an ad that recently…
Got your attention?
Changed your knowledge?
Encouraged you to talk about it?
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11.
Goals Correlate to Product Life Cycle
Life cycle stages and advertising goals
Introduction: awareness and information
Growth: enhance positive attitudes
Maturity: remind consumers
Decline: reductions in ad spending
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11.
Designing Advertising Messages
Classic communication
Source (company) encodes message (ad)
Ad is transmitted
Receiver (customer) decodes the message
Copy testing makes sure target correctly understands the message
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11.
Cognitive Ads
(slide 1 of 3)
Cognitive ads engage the consumer’s brain
Types of cognitive ads
One-sided argument: focuses on product’s benefits
Two-sided argument: gives pros and cons
Usually stand out more and are considered more objective
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11.
Cognitive Ads
(slide 2 of 3)
Types of cognitive ads (continued)
Non-comparative ad: only one brand’s features, attributes, image, etc., are presented
Comparative ad: two or more brands’ features, attributes, image, etc., are presented
Ads created by the smaller company help the company and the competitor
14
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11.
Cognitive Ads
(slide 3 of 3)
Types of cognitive ads (concluded)
Product demonstration: shows the product at work
Drama: product is the solution to a problem
Memorable
15
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11.
Emotional Ads
(slide 1 of 2)
Types of emotional ads
Humor
May break through clutter & be buzz-worthy
Usually not cost efficient
May remember the joke but not the product
Fear ads
Use negative emotions
For a fear appeal to be effective, the ad must provide a solution to reduce the consumer’s fear
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11.
Emotional Ads
(slide 2 of 2)
Types of emotional ads (continued)
Subliminal ads: contain elements shown too fast to detect consciously
Considered unethical and have never been shown to work
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11.
Image Ads
Ad message is more abstract
Company distinguishes itself by its image because the product’s category is crowded
Used for positioning
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11.
Endorsement Ads
Spokesperson provides a testimonial
Types of spokespeople
Celebrity
Spokes-characters
Experts
Regular people
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How Endorsements Work
(slide 1 of 2)
Elaboration likelihood model
Central route
Ad’s argument persuades
Occurs when customers are highly involved with brand and motivated to process the ad
Peripheral route
Ad’s peripheral cues persuade not argue
Occurs when customers are not involved with brand and not motivated to process
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How Endorsements Work
(slide 2 of 2)
Source credibility
Consumer interprets message as the most important piece of information, but also processes the credibility of the source
e.g., actors who play doctors on TV
Sleeper effect
Consumers forget the source over time, so its credibility doesn’t matter
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11.
Discussion Questions #3
Which type of ad would you recommend using to pitch:
Your university? Why?
Mother’s Against Drunk Driving (MADD)? Why?
A presidential candidate? Why?
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11.
Evaluating Advertising
(slide 1 of 3)
Cognitive tests consider memory
Day-after recall tests (DAR)
Ask random samples of households
“Which brands did you see last night?”
Recognition tests
When can’t remember more ads, ask
“Do you remember seeing X ad?”
Mere exposure
Sheer familiarity from repeated exposure may enhance viewer’s favorability
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11.
Evaluating Advertising
(slide 2 of 3)
Affective ads (image and preference)
Concept testing
3-4 focus groups of 8-10 screened participants are shown the ideas of the ad
Ads are usually in preliminary development
Consumers’ responses to ad, brand, etc., are evaluated
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Evaluating Advertising
(slide 3 of 3)
Affective ads (continued)
Copy testing
Large random samples of consumers view a TV program and ads; after 30 minutes, consumers take survey
Ad evaluation items
Stimulation (curious, enthusiastic, etc.)
Information (useful, credible, etc.)
Negative emotion (irritation, etc.)
Transformation (enjoyment, satisfied feeling, etc.)
Identification (felt involved with it, etc.)
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11.
Aad and Abrand
Measure two attitudes
Attitudes-toward-the-ad (Aad)
Attitudes-toward-the-brand (Abrand)
Aad Abrand likelihood to purchase
Testing methods
Dial during an ad copy test
Diagnostics
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11.
Discussion Questions #4
Which firm above has a problem with
Satisfaction?
Awareness?
Which brand would you most want to be associated with?
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11.
Managerial Recap
(slide 1 of 2)
Set goals in order to evaluate ads
Classes of ad messages
Rational or cognitive ads
One- and two-sided arguments, comparative and non-comparative ads, product demonstrations, and dramas
Emotional ads
Humorous and fear-inducing appeals, image, and endorsements
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11.
Managerial Recap
(slide 2 of 2)
Advertising is tested via concept testing and copy testing
Memory tests (recall and recognition)
Attitudinal tests
Behavioral measures
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11.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12.
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Integrated Marketing Communications and Media Choices
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12. 2
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12.
2
Marketing Framework
3
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12.
Discussion Questions #1
Name all of the media in which you have seen Kentucky Fried Chicken (KFC) promoted.
Why do you think these media were chosen?
4
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12.
What Media Decisions Are Made?
How much do we spend?
What is the schedule of expenditure?
Which media do we use as channels of our communications?
5
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12.
How Much to Spend
(slide 1 of 3)
Percentage of sales
Percentage is determined by prior years’ sales or industry norms
Percentage is then adjusted depending upon this year’s goals
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12.
How Much to Spend
(slide 2 of 3)
Competitive parity
Determine what competitors are spending
In some industries, ad spending is proportional to income
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12.
How Much to Spend
(slide 3 of 3)
Strategic advertising goal
Set a strategic goal (awareness, attitude change, etc.) and then work backward to determine how much should be spent to reach the goal
Advertising is viewed as an investment that will return sales and profits
Need to understand reach and frequency
8
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12.
Reach, Frequency, and GRPs
(slide 1 of 2)
Reach
The share of your target that has seen your ad at least once
Frequency
The average number of times target saw the ad (within set duration)
GRPs: Reach × Frequency
Ad reached 25% of target an average of 3 times—the ad delivered 75 GRPs
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12.
Reach, Frequency, and GRPs
(slide 2 of 2)
For reach, the goal is to expose as many of the target customers as possible
Find the most cost-efficient media
Frequency depends on the goal
Awareness and memory—a few exposures
Persuasion may take more
Readily understood ads wear out quickly
10
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12.
When to Schedule
It costs more to get higher ratings
However, the relationship is not perfect
11
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12.
When to Schedule: Concept in Action
(slide 1 of 2)
Example
Big Bang Theory: 6.3 million TVs
$328,000 per 30 seconds
McDonald’s meal contribution: $0.50
$328,000/0.50 = 656,000 meals/breakeven
6.3 million viewers are exposed; thus, McDonald’s needs 10.4% to purchase
656,000/6.3 million = 10.4%
Is this reasonable?
12
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12.
When to Schedule: Concept in Action
(slide 2 of 2)
Continuous: regularity in ad exposure
Occasional: pop up from time to time
Seasonal: infrequent and focused on the preterm season for the product
e.g., School supplies in August
13
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12.
Discussion Questions #2
When would you recommend advertising
Your school?
Oil changes?
14
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12.
Which Media
(slide 1 of 7)
The choice of media outlet is difficult because…
There are more media outlets
e.g., More television stations, more radio stations via XM, and the Internet
Audiences are fragmented across the many media and use technology to zip past ads
15
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12.
Which Media
(slide 2 of 7)
Integrated marketing communication
When advertising across media
Consider the company’s overarching strategy
Ensure a consistent message
All communications
e.g., Trade advertising, personal selling, direct marketing, and product placements
As well as other marketing mix elements
e.g., Product design, pricing, and channels
Play to each media’s strength
16
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12.
Which Media
(slide 3 of 7)
Media Choices: Relative Strengths on Business Measures
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Which Media
(slide 4 of 7)
Media comparisons
TV ads
Most expensive; yield the largest reach; yield a broad not targeted reach; cable allows some targeting; frequency is expensive
Magazines
Have broad appeal or can be targeted
Radio and newspapers
Purchased nationally, but can be purchased for local markets
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12.
Which Media
(slide 5 of 7)
Media comparisons
Billboards are relatively inexpensive; good for local coverage
Radio, newspapers, and magazines are less expensive than TV, but they also deliver smaller audiences
Magazines require long lead times for production; have good reproduction quality
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12.
Which Media
(slide 6 of 7)
Media comparisons
Newspapers and magazines are nonintrusive; viewers can ignore ads
Online and direct mail can be customized
Online ads are inexpensive and can be targeted; Internet penetration isn’t 100%
Direct mail is relatively inexpensive and targeted; not efficient (junk mail)
20
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12.
Which Media
(slide 7 of 7)
Media Choices: Relative Strengths on Ad Content
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12.
Discussion Questions #3
Which media would you choose to advertise a new local restaurant? Why?
What should you consider to help guarantee an integrated approach?
22
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12.
Beyond Advertising
Personal selling
Is an essential communication vehicle
Accounts for 14 million jobs
Over 10% of workforce
Is especially important for expensive, complicated products
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12.
Designing a Sales Force
(slide 1 of 2)
Questions to consider…
How many salespeople do I need?
More with an aggressive launch or to protect territories
Where do I deploy them?
How do I compensate them?
Salary and commission
Proportion determined by tradition and competition
24
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12.
Advertising vs. Personal Selling
Choice Between Advertising and a
Sales Force
25
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12.
Discussion Question #4
Why do you think such a large proportion of the promotional budget is spent on trade promotion?
26
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12.
Designing a Sales Force
(slide 2 of 2)
Pull strategies
Direct promotional efforts to consumers
Rely on advertising and sales promotions
Push relies more on personal selling
Direct promotional efforts to channel
Rely on trade allowances—price reductions to intermediaries for allocating space, etc.
May be passed on to retailer’s salespeople as cash, training and product demonstrations, free merchandise, conventions, etc.
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12.
Public Relations
(slide 1 of 3)
Purpose
Provide information and build brand attributes
PR lines of communication are a company’s attempt to reach its constituency
Customers, suppliers, stockholders, government, employees, general community
Convey a positive image and educate a constituency about the company
Generate goodwill on behalf of the company
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12.
Public Relations
(slide 2 of 3)
PR people
Issue press kits
Press releases for newsworthy occurrences
(e.g., product launch), company information, bios, and history
Maintain company information on website
Arrange events (e.g., speaking engagements), sponsorships, and community philanthropy
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12.
Public Relations
(slide 3 of 3)
Publicity
Is a communication tool the company
does not pay for
PR can issue press releases, but there is no guarantee that they will be picked up
Can be negative or positive because companies cannot directly control it
Has the appearance of objectivity
30
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12.
Discussion Questions #5
Give an example of negative publicity that you think the company handled well.
Give an example of positive publicity and the potential benefits of this publicity.
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12.
Product Placement
Products are integrated into movies, TV shows, and video games
More subtle than ads
e.g., James Bond’s cars
Consumers can’t “zip” past them
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12.
Event Sponsorship
Occurs in sports and cultural or artistic endeavors
Brands draw from event’s positive valence and energy
e.g., Sponsoring NASCAR racing
Not clear if it is cost-effective
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12.
Sales Promotion
Activate purchase interest and influence short-term sales
Can entice customers to switch brands
Forms
Coupons, rebates, promotional pricing, trade-ins, loyalty programs, trials, contests, etc.
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12.
IMC Choices Depend on Goals
(slide 1 of 2)
When determining which promotional method to choose, consider …
The target audience
The company’s goals
e.g., Awareness, information, preferences, purchase trial, and repeat purchase
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12.
IMC Choices Depend on Goals
(slide 2 of 2)
Additional questions to consider
Should we schedule continuously, occasionally, or seasonally?
What is the consumer’s purchase cycle?
What is the level of saturation desired?
What life cycle stage is the product in?
What can we afford?
What is best for our target?
What do we want the target to know?
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12.
IMC Schedule
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Assessing Media Effectiveness
(slide 1 of 3)
If goal is awareness, reach matters
Measure viewership, readership, circulation numbers, traffic indices, etc.
If goal is attitudinal, use surveys
It can be difficult to assess ROMI because customers may not remember where they saw the ad
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12.
Assessing Media Effectiveness
(slide 2 of 3)
Considerations
Increasing ad budget relative to competition doesn’t increase sales in general
Qualitative differences, such as better ad copy, can increase the likelihood of sales
Ads that evoke positive feelings have been related to sales
Some believe that ad budgets should not be spent on current customers who already prefer the brand
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12.
Assessing Media Effectiveness
(slide 3 of 3)
Online advertising
Track click-thru rates, downloads, inquiries, purchases, returns, etc.
Compare with cost per click, per download, per acquisition, etc.
Online ad cost is low, but effectiveness is not great
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12.
Discussion Questions #6
If you are recruiting for the Army with the “Be All You Can Be” message
Which media would you choose?
When would you schedule the ads?
How would you measure effectiveness?
Beyond advertising, what other promotional methods might be effective?
41
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12.
Managerial Recap
Decisions about expenditure and timing are integral to promotional campaigns
Marketers must integrate marketing communications
The effectiveness of advertising is measured using long- and short-term measures
42
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12.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Social Media
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13. 2
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13.
2
Marketing Framework
3
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13.
Discussion Question #1
Describe a social media campaign in which you have participated.
4
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13.
What Are Social Media?
Social media
People interacting and connecting with others via online software or alternative electronic access technologies
Traditionally, customers were recipients
With social media, customers now have dialogue with brands
Customers post endorsements and vent
Marketers have less control
5
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13.
Media Trends
Social media and mobile marketing are growing
Newspapers and magazines are declining
The number of radio stations is growing,
but consumers listen less
The number of TV channels is growing
Fragmented audience facilitates targeting
6
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13.
Social Media Properties/Types
Some social media
Offer very rich, vivid sensory experiences: e.g., Virtual worlds, video games
Are simple: e.g., Blogs, forums
Are primarily social: e.g., Facebook
Are industrious: e.g., Wiki, LinkedIn
Vary in commerciality: e.g., Facebook has social content and ads for revenue
7
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13.
Discussion Question #2
Given the previous slides and a limited budget, how might you promote the launch of a new designer clothing label?
8
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13.
Word-of-Mouth
(slide 1 of 2)
Social media facilitates word-of-mouth
Word-of-mouth is powerful and credible
Going viral; creating buzz
9
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13.
Word-of-Mouth
(slide 2 of 2)
Word-of-mouth works well with
Exciting products
Clever ad campaigns
Humor, free give-aways, social causes
e.g., Geico Gecko has Facebook friends
Extraverted consumers
Consumers with large social networks
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13.
Social Networks
Sociogram: networks in graphical form
The set of actors and relational ties
Actors may be customers, firms, brands, etc.
Ties can be symmetric
e.g., Joe and Sally are coworkers
Ties can be directional
e.g., Joe likes Sally
Ties vary in strength
Network analysis requires tabular representation (sociomatrix)
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13.
Social Network Example
Strong mutual link between actors B and E
Weak unidirectional link from C to B
F is isolated
B, C, and E form a group
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13.
Identifying Influentials
(slide 1 of 3)
In social networks, some members are more connected & influential than others
Goal is to locate highly influential members, induce their trial of products, and propel the diffusion process
Locating central members
Centrality indices are computed for each actor in the network to describe the position of that actor relative to the others
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13.
Identifying Influentials
(slide 2 of 3)
Centrality: Number of connections each actor has with the others
Centrality index
Central = many links
Peripheral = fewer links
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13.
Identifying Influentials
(slide 3 of 3)
Cliques
Groups of people in the network
Common in brand communities, affinity groups, cell phone friend networks, etc.
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13.
Recommendation Systems
(slide 1 of 2)
Structural equivalence
Two customers are equivalent if their purchase patterns are the same
Used in recommendation agents
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13.
Recommendation Systems
(slide 2 of 2)
Result of social media
Data of purchase patterns or ratings are aggregated over many people
Customers trust online recommendations
It is more authentic than advertising
Resistance
Conservative, older CEOs don’t spend money on something they don’t understand
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13.
Social Media ROI
Social media seems free but is not
Main cost may be salaries for thought and labor
Key performance indicators (KPIs)
Reach, frequency, monetary value of customers, customers’ behaviors, attitudes, memory, etc.
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13.
Social Media ROI: Awareness
Pre-purchase: awareness
Reach can be achieved via
Traditional media and measured online
e.g., Magazine tells reader to learn more by going to a particular Web page
Online and measured online
e.g., Web ads, search engine status
Media that optimize reach
Twitter, Facebook, YouTube
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13.
Social Media ROI: Brand Consideration
(slide 1 of 3)
Pre-purchase: brand consideration
Offer more information to build knowledge and persuade
Use media that give more content
e.g., Search engine ad placement, podcasts, post information in brand community, give customer testimonials
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13.
Social Media ROI: Brand Consideration
(slide 2 of 3)
Pre-purchase: brand consideration (continued)
Search engine optimization (SEO)
Consumers search when they don’t have a preferred brand
Keywords depend on customer knowledge
To improve SEO
Put meaningful keywords in Web page title
Order the words with most important first
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13.
Social Media ROI: Brand Consideration
(slide 3 of 3)
Pre-purchase: brand consideration (continued)
Key Web analytics
Frequency: number of visits and number of unique visitors
Duration: time spent per page and overall time spent on the site
Bounce rates: percent of one page visits
Conversion rates: when a visitor transitions from a looker to a doer
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Social Media ROI: Purchase/Behavior
(slide 1 of 3)
Purchase/behavioral engagement
Induce any action that engages the prospective customer
What do they open, what do they download?
Do they watch demos that may be available?
How much time are they spending on which purchase-related pages?
Do they register to subscribe to newsletters?
Instead of “Contact Us” marketers prefer forms that capture specific information
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Social Media ROI: Purchase/Behavior
(slide 2 of 3)
Purchase/behavioral engagement (continued)
KPIs may include
Number of posts about the brand
Audience build as measured by incoming links and the speed of that growth
Conversion rates: frequencies of Web visitors to engage in the focal behavior relative to the number of visitors who come to the website
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Social Media ROI: Purchase/Behavior
(slide 3 of 3)
Costs of the actions depend on goals
Estimates of acquisition costs; payment for placement in search engines or banner ads, sending emails from a rented address database, etc.
Effectiveness of actions can be assessed by frequencies, rates, and durations
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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ROI for Social Media: Post-Purchase
Post-purchase
Satisfied customers
Customers may post positive reviews, give
endorsements, etc.
Dissatisfied customers
Company can read complaints, address issues, give incentives, etc.
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How to Proceed
(slide 1 of 3)
Engaging in all social media is not desirable
Some media fit marketing goals and target market better than others
Social media require maintenance and constant activity
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How to Proceed
(slide 2 of 3)
Companies can learn by lurking or Web crawling
Monitoring tweets, blogs, and discussions
Analyzing text on Facebook to understand customers’ opinions about brands
Search brand’s page or search for brand name on other postings
Analyzing content to detect consumer trends
Checking websites for misinformation
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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How to Proceed
(slide 3 of 3)
Companies can actively create interventions
Enter online communities and ask for volunteers for beta testing
Experiment to measure the effect of changes in the marketing mix
Measure attitudes, click-through rates, sign-up rates, etc.
Use GPS data to track customers and give offers
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Discussion Questions #3
You are a marketing manager for Nike. Discuss a social media plan to
Learn about your customers.
Encourage trial.
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Managerial Recap
(slide 1 of 2)
Social networks are an important and provocative channel
Social media are Web-based means of interacting with others by posting opinions, pictures, and videos
Social networks are the structures of interconnections among customers that propagate word-of-mouth
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Managerial Recap
(slide 2 of 2)
Networks can be analyzed
Social media ROI and KPIs can be computed with the help of online analytics after the marketing goals are understood
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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