Lecture 7 1 digital marketing communication tools 2016

Digital marketing communication tools Digital (Interactive) Marketing (Lecture 7.1) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk @dimbsbu

https://dimbsbu.wordpress.com

Learning Outcomes for week 7 • Understand what MC tools exist; • Learn about traditional MC tools; • Explore differences between traditional and digital marketing communications tools; • Investigate DIM MC tools or additional DIM elements to traditional MC mix.

• DIM communications - #1 activity • Requires strategic approach (1-year plan) - SOSTAC • INTEGRATION & ALIGNMENT are key – IMC • Based on clear, SMART and linked objectives

Diversity of communication tools – key challenge for DIM communication

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing, p. 30.

1. Offline DIM MC tools • Advertising • Sales Promotions • PR and Hybrid MCs • Direct Marketing • Packaging and Merchandising

1.1. Advertising Advertising • a sub-category of the promotional mix • impersonal communication but …

• paid for but …

“Advertising is one of the most fundamental ways to sort out information. And that’s the gift of advertising - to connect with people in a human way - to make the kind of emotional connections that are at the core of story telling”.

Eric Schmidt, CEO Google

Degree of control Low

High

Advertising

Long term Source: Egan (2007)

Personal influence

Short term

Media Advertising: TV Radio Print Online Viral Marketing

Place Advertising: Billboards Posters Cinema Guerilla Transit

Direct Response (Interactive) Advertising: Direct mail Telephone Broadcast media Computer-related

Advertising Components Point of Purchase Advertising: Shopping card ads Queue TV Till receipts In-store radio/TV

Theorizing Advertising • Strong/Weak theory of advertising • AIDA • Elaboration Likelihood Model (Petty and Cacioppo 1981)

Advertising: Main Objectives • Brand awareness • Brand salience • Promoting product trial • Compering other brands against the competition • Informational content • Activity and engagement

Key in Advertising - The Big Idea

Key in Advertising - The Big Idea

1.2. Sales Promotions Sales Promotions • a sub-category of the promotional mix • implies call to action • short-term tactics • precise nature of targeting and communication “Sales Promotion comprises 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.”

Institute of Sales Promotion

Degree of control Low

High

Sales Promotion

Long term Source: Egan (2007)

Personal influence

Short term

Consumer Promotions:

Trade Promotions: Trade deals Buying allowances Contest and dealer incentives Trade shows Cooperative advertising

Samples Coupons Discounts/refunds Price-offs Premiums Contests

SP Components

All Promotions need to be • LEGAL • DECENT • HONEST • TRUTHFUL

SP: Main Objectives • Increasing sales • Educating customers and creating interest • Overshadowing a competitor’s promotional or other activities / attracting competitor customers • Deflecting attention away from price competition • Encouraging the early trial and adoption of new products / increased usage of the brand • Reinforcing advertising themes (IMC) • Gathering customer information (MKIS)

Risks associated with promotions • Promotional price wars erodes margins instead of boosting sales e.g. Coupon wars • Mis-redemption of coupons (budget for redemption 20%) • Printing errors – Esso’s Noughts and Crosses game withdrawn after two weeks - 20 * £100,000 1st prize tickets emerged instead of 2 over the whole promotion

Risks contd....

• Over – redemptions – Hoover free flight offer • Quality dissonance • Fulfilment problems – ISP code of promotion

Source: https://www.marketingweek.com/2014/12/03/promotions-can-stand-out-without-slashing-margins/

1.3. PR and Hybrid MCs Anyone concerned with the organisation Macro-environment:

“the discipline which looks after reputation, with the aim of earning understanding and support and influencing opinion and behaviour. It is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its public” (CIPR)

–

Government and local authorities

–

Members of local communities

–

Competitors

–

Potential employees

–

Non-users/social groups

Micro-environment o Existing employees (internal marketing) o Suppliers and intermediaries/association/trade stakeholders o Financial groups/investors/shareholders o End-user customers o Media and press

Key characteristics PR is the management of relationships, “reputation nurturing� (Eisenegger, 2005), between organisations and their stakeholders/publics (Reid, 2003) Needs to be a planned activity

Strategic & tactical

Reducing buyers perceived risk

High credibility

Low control (press release) Absolute cost (overall cost) and low relative cost (cost associated with reaching each member of the target audience)

Degree of control Low

High

PR Long term Source: Egan (2007)

Personal influence

Short term

Publicit y model

Public Inform ation model

1-way asymm etrical model

2-way symme trical model

PR Models

Objectives of PR

PR Tools Advertising Digital PR

Publications

Internal

Events

Identity Media

Sponsorship

Causerelated marketing

News / Speeches

PR Techniques  Publicity  Lobbying  Ad Busting  Ambush marketing (Reactive PR)  WOM

Hybrid PR  Programming  Product placement  Stealth marketing  Event management  Sponsorship

1.4. Direct Marketing “Direct marketing is a relational marketing process of prospecting, conversion, and maintenance that involves information feedback and control at the individual level by using direct response advertising with tracking codes�

(Bauer and Miglautsch 1992) Dialogue marketing ~ personal marketing database marketing

~

Key Characteristics MC SMART objective of DM ďƒ¨ to prompt a response from a customer

Degree of control Low

High

Direct Marketing

Long term Source: Egan (2007)

Personal influence

Short term

1.5. Packaging and Merchandising Merchandising and packaging work together.

Key components: 1. Labeling, size, durability 2. Look and feel – experience Key MC objectives: 3. To attract attention 4. To build an interest and want 5. To support the sale.

Degree of control Low

High

Packaging and Merchandising

Long term Source: Egan (2007)

Personal influence

Short term

Offline – online: key differences