Marketing & Social Media

Television

• +
  • Good mass-marketing coverage
  • Low cost per exposure
  • Combines sight, sound, and motion
  • Appealing to the senses
• -
  • High absolute costs
  • High clutter
  • Fleeting exposure
  • Less audience selectivity

Digital, mobile, and social media

• +
  • High selectivity
  • Low cost
  • Immediacy
  • Engagement capabilities
• Limitations
  • Potentially low impact
  • High audience control of content and exposure

Newspapers

• Advantages
  • Flexibility
  • Timeliness
  • Good local market coverage
  • Broad acceptability and high believability
• Limitations
  • Short life
  • Poor reproduction quality
  • Small pass-along audience

Direct mail

• Advantages
  • High audience selectivity
  • Flexibility
  • No ad competition within the same medium
  • Allows personalization
• Limitations
  • Relatively high cost per exposure
  • Junk mail image

Magazines

• Advantages
  • High geographic and demographic selectivity
  • Credibility and prestige
  • High-quality reproduction
  • Long life and good pass-along readership
• Limitations
  • Long ad purchase lead time
  • High cost
  • No guarantee of position

Radio

• Advantages
  • Good local acceptance
  • High geographic and demographic selectivity
  • Low cost
• Limitations
  • Audio only
  • Fleeting exposure
  • Low attention
  • Fragmented audiences

Outdoor

• Advantages
  • Flexibility
  • High repeat exposure
  • Low cost
  • Low message competition
  • Good positional selectivity
• Limitations
  • Little audience selectivity
  • Creative limitations

Return on advertising investment: net return on advertising investment divided by the cost of the advertising investment

Advertiser should regularly evaluate

• Communication effects
• Sales and profit effects.

• Advertising is defined as any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.
• Advertising is certainly the most seen part of the promotions mix.
• Advertising can be traced back to the very beginnings of recorded history with Romans and Phoenicians painting their wares on walls and large rocks.

Pros

• Reaches masses at relatively low cost
• Projects an image of the advertiser as to how large, popular and successful they are
• Adds legitimacy to the product
• Allows repetition of message and competitor comparison
• Expressive medium, visuals, sound and colour
• Used to build a long-term image

Shortcomings

• Impersonal
• Only one way communication

Definition:

Sales promotion is a range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives.

Advantages:

• Attracts consumer attention and provides information - strong incentives
• Invites and rewards quick response

Types of sales promotion

• Manufacturer to consumer (consumer promotion).
• Retailer to consumer (merchandising).
• Manufacturer to intermediary (trade or dealer promotion)
• Promotion of sales force (staff promotion).

• Sample: offer a trial amount of a product
• Coupon: are certificates that give buyers a saving when they purchase specified products
• Rebates: are similar to coupons except that the price reduction occurs after the purchase (get 10$ back when spending 30$)
• Price packs: offer consumers savings off the regular price of a product
• Premiums: goods offered either for free or at a low price
• Advertising specialties: useful articles imprinted with the advertiser's name, logo, or message that are given as gifts to consumers
• Point-of-purchase promotion: display and demonstrations that take place at the point of sale
• Contests & Games: give consumers the chance to win something -- such as cash, trips, or goods -- by luck or through extra effort.
• Event marketing: creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

Definition

• Public relations is defined as the development of good relations with the company’s various publics, by obtaining favourable publicity, building a good ‘corporate image’ and handling or heading off unfavourable rumours, stories and events.
• ‘The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics; customers, employees, shareholders, trade bodies, suppliers, government officials, and society in general.

Advantages

• Credibility
• Needs to be used proactively

• Dialogmarketing
  • Direct-marketing
    • Tele-marketing
    • mailing
  • Online-marketing
    • Email
    • Social media
    • Mobile marketing
    • Google adwords

Direct marketing / Dialog marketing

Definition:

‘Direct marketing is marketing through various advertising media that interact directly with consumers, generally calling for the consumer to make a direct response.’

Importance:

Fastest growing form of marketing.

Benefits:

• Convenient and effective.
• Easy and private.
• Process is interactive, especially on-line marketing.
• Powerful tool for customer relationship building.
• Offers sellers a low cost, fast and efficient alternative for reaching
• Immediate and direct
• Can be customised

Definition:

•  ‘An interpersonal communication tool which involves face to face activities undertaken by individuals, often representing an organization, in order to inform, persuade or remind an individual or group to take appropriate action, as required by the sponsor's representative.’

Typical use:

• Personal selling tends to make its impact more in the promotional mix of high- priced, infrequently purchased products or services than with fast-moving consumer goods.

Pros and contras:

• Most effective in building up buyers’ preferences, convictions and actions
• Very expensive

1. Analyze current situations
2. Identify target audience
3. Determine objectives
4. Design communications
5. Select channels
6. Establish budget
7. Decide on media mix
8. Manage IMC

• Message strategy
• Creative strategy
• Message source
• Personal communication channels
• Nonpersonal communication channels
• integration

Strong format to gain attention.

• Must have practical value to target audience
• Must be interesting
• Must communicate new information about the product or brand
• New products or brands
• Must reinforce or justify the decision to buy
• Must make an impact

Ideally the message should get Attention, hold Interest, arouse Desire and obtain Action. The AIDA model

• Rational appeals
  • Relate to audience’s self interest.
  • Message of quality, economy, value or performance.
• Emotional appeals
  • Negative or positive emotions, fear, guilt, love, humour, pride and joy.
• Moral appeals
  • Directed to audience’s sense of what is right and proper
• Positive and negative appeals
  • Fear
  • Guilt
  • Shame
  • Humor
  • Love
  • Pride
  • Joy

Message Source - credibility. Celebrities & testimonials as spokespeople potentially achieve higher attention

Objective: find a person who sources high on all three dimensions

• Expertise
• Trustworthiness
• likeability

Requirements:

• Advertising needs to focus on value proposition that are so distinctive that they are a clear differentiation from competitors (Uniqueness, Brand-fit)
• are significant that the attention on the mandatory action to be taken by directing the motivation (Awareness)
•  are so conclusive that they lead to lasting, sustainable memories (Likability)

A collection of objects (nodes) conneted to each other in some fashion

Network thinking can be applied almost everywhere

Epidemology (i.e. spread of infections diseases) e.g. spread of foot&mouth disease in the UK in 2001 over 75 days

Or Medicine: e.g. cell formation, nervous system, neural networks.

Human networks

Our society. E.g. interactions between people (fb, group behaviour

Social network: social structure that consists of social actors an their relations

A number of things of the same kind, growing or held together; a bunch; a group of things or persons close together.

Intermediary devices connect the individual hosts to the network and can connect multiple individual networks to form an internetwork. ... Routers

whatever connects you to your target - the linking peaces are intermediaries.

Sporadic and irregular contacts. Examples: acquaintances, neighbours, employees from other work team.

These weak ties enable the connection of different clusters. Weak ties are occasional connection which can lead to the spread to other networks.

Fb, Ig, Twitter. "You may also know XY…"

Individual components of a network e.g. people/agent, power stations, neurons,

Direct link between components (referred to as a dyad in context of social networking i.e. relationship between two people)

Path Route taken across components to connect nodes (Findlay, K., p.14)

The important network feature is the average path length

• Average path lenght
• the average number of ‘hops’ required to reach any other node in the network
• “Six degrees of separation” average path length = 6

Unclustered. A pure branching network. Ego knows only 5 people, but within two degrees of separation, ego can reach 25; within three degrees, 105; and so on

Clustered: Real social networks exhibit clustering, the tendency of two individuals who share a mutual friend to be friends themselves. Here, Ego has six friends, each of whom is freinds with at least one other.

Facebook application “Six Degrees” (shut down in 2009)

• 5.8 million users
• average path = 5.73
• maximum path = 12

Facebook released two papers in 2011/12, which document that amongst all Facebook users there is an average distance of 4.74

Degree of separation is how many intermediary's you need to reach your target.

A system made up of many elements which interact with each other in multiple ways

Refers to systems in which many individual agents with limited intelligence and information are connected, and thus able to pool resources to accomplish a goal beyond the capabilities of the individuals… while only focused on self-interest without the bigger picture in mind

Examples:

• e.g. no single ant knows how to build an ant colony
• e.g. the internet has grown organically over time with no single person directing its growth

Strong ties:

Frequent connections with people we are familiar with. Examples: employees in a team, family members, good friends etc.

Weak ties:

Sporadic and irregular contacts Examples: acquaintances, neighbours, employees from other work team

1. Solving complex problems (e.g. problem scope is unclear) that need innovative solutions
2. Solving ambiguous problems where some components of the problem are known, but not the sequence
3. Solving familira problems with known responses

Social Networking Sites (=Digital Social Networks) Ellison, N. B., & Boyd, D. (2007) define “social network sites as web-based services that allow individuals to

(1) construct a public or semi-public profile within a semi-bounded system

(2) articulate a list of other users with whom they share a connection, and

(3) Link and interact with their list of connections and those made by others within the system.

The nature and nomenclature of these connections may vary from site to site.” (p. 211) first social networking site was sixdegrees.com (1997-2000)

E.g. facebook

largest social network site (> 2.3 billion monthly users) a variety of features including:

• Messaging - allows users to directly communicate with each other via Facebook using several different methods (including a special email address, text messaging, or through the Facebook website or mobile app)
• Notes - a blogging feature that allowed tags and embeddable images
• Gifts - allows users to send virtual gifts to their friends
• Groups - allows members who have common interests to find each other and interact.
• Pages - allows members to create and promote a public page built around a specific topic.
• Events - allows members to publicize an event, invite guests and track who plans to attend.
• Marketplace - allows members to post, read and respond to classified ads
• Apps - allow third-party developers to build applications and widgets that, once approved, could be distributed through the Facebook community

Social media are

• digital technologies
• that allow individuals and organisations
• to view, create and share information, ideas, experience, emotions and other content
• within and across social groups and networks
• drawing on the principles of Web 2.0
  • Web 2.0 Web as a platform whereby content and applications are no longer created and published by individuals, but instead are continuously modified by all users in a participatory and collaborative fashion