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The Marketing Pathfinder:
Key concepts and cases for
for marketing strategy and decision making
David Stewart and Michael Saren
Copyright © 2014 by John Wiley & Sons, Ltd. All rights reserved.
2. Developing Products
and Services
Product and service typology
Importance of innovation
Product life cycle
Diffusion of innovation
First mover advantage
10. Maverick
Marketing
Marketing mavericks
Marketing as practice
Marketing as service
Digital marketing
Boundary spanning
Four views of marketing
Delivering value
Creating value propositions
1. Mobilizing the
Marketing Endeavour
8. Finding the Right
Marketing Space
Distribution
Marketing channels
Channel structures
Impact of IT
Role of logistics
7. Successful Brand
Building
Strategic brand management
Types of brands
Semiotics
Brand extensions
Brand equity
9. Communication
Heaven
Integrated marketing comms
Communication objectives
Communication mechanisms
Media choices
3. Analysis and
Understanding
Demand forecasting
Market analysis
Competitor analysis
Market research
4. Understanding
Why They Buy
Influence of culture
Use of neo-tribes
Prosumers
Decision-making process
Means-end chain
5. How Much Are They
Prepared to Pay?
Break-even analysis
Price points
Value proposition
Pricing strategies
Revenue management
6. Over-Promising, Ethics,
and Sustainability
Role of promises
How & why over-promising occurs
Importance of ethics
Sustainable marketing
FIRM BUYER
Relational
Exchange
Experience
• List five ways over-promising can occur and
provide an example of each
• Identify the contemporary issues of sustainable
marketing
• Discuss integrated marketing communications
(IMC).
• Summarize the different types of advertising.
• Outline sales promotion.
• Describe pushing and pulling strategies
Learning objectives
Promises, promises
 The role of promises
◦ promises management
 quality and delivery key components
 making them is distinct from keeping them
 internal and external alignment
 implicit and explicit expectations
 organization-wide processes needed
The truth is out there
 How and why over-promising occurs
◦ lack of organizational integration
◦ unrealistic expectations set
◦ familiarity breeds discontent
◦ attention-seeking advertising
◦ symbolic differentiation only
◦ level of customer effort involved
◦ post-purchase offers
The truth is out there
 How and why over-promising occurs cont’d
◦ promises not met?
 complain
 switch custom elsewhere
 feedback
 customer recovery
 better to not over-promise in the first place
Honest guv!
 The importance of ethics
◦ branch of moral philosophy
◦ Marketing “a bad name”
◦ normative perspective
◦ distributive justice
◦ “general theory” of marketing ethics
It’s not easy being green
 Sustainable marketing
◦ a logical extension or a fundamental shift?
◦ metaphorical machine vs. living systems
◦ post-industrial marketing
 ability to embrace change
 dynamic configurations
 efficient resource management
 thinking in new ways
Promotion (1 of 2)
• Promotion is the function of informing, persuading,
and influencing a purchase decision.
• Some promotional strategies try to develop primary
demand, or consumer desire for a general product
category.
• Most promotions stimulate selective demand, or a
desire for a specific brand
3
Copyright ©2019 John Wiley & Sons, Inc.
Promotion (1 of 2)
Created by advertising
agency Goodby
Silverstein & Partners to
encourage the
consumption of cow’s
milk, “Got Milk” has
become one of the most
prolific primary demand
marketing campaigns of
all time.
10
Copyright ©2019 John Wiley & Sons, Inc.
Integrated Marketing Communications
• Integrated marketing communications (IMC) is the
coordination of all promotional activities—media
advertising, direct mail, personal selling, sales
promotion, and public relations—to produce a unified,
customer-focused message.
• Must take a broad view and plan for all form of
customer contact.
• Create unified personality and message for the good,
service, or brand.
• Elements include personal selling, advertising, sales
promotion, publicity, and public relations.
11
Copyright ©2019 John Wiley & Sons, Inc.
Promotional Mix
• Promotional mix- combination of personal and
nonpersonal selling components designed to meet the
needs of their firm’s target customers and effectively
and efficiently communicate its message to them.
• Personal selling- the most basic form of promotion: a
direct person-to-person promotional presentation to a
potential buyer.
• Nonpersonal selling- advertising, sales promotion,
direct marketing, and public relations
12
Copyright ©2019 John Wiley & Sons, Inc.
Components of the Promotional Mix (1 of 2)
Table 13.1 Comparing the Components of the Promotional Mix
Component Advantages Disadvantages
Personal Selling • For complex goods and services of high value,
more information can be conveyed
• Message can be tailored for each customer
• Produces immediate buyer response
• Effectiveness is easily measured
• High cost per contact
• Limited reach (can only cover one geographic
region or place at a time)
• Costly and difficulty attracting and retaining
effective salespeople
Nonpersonal Selling
Advertising • Reaches the masses at a low cost per contact
• Allows control of the message
• Messaging can be tailored to match each
audience
• Difficult to measure effectiveness
• Limited value for closing sales
• Costs can be high
• Can be confusing or untruthful
• Can add to a product’s cost
Sales Promotion • Attracts attention and creates awareness
• Effectiveness is easily measured
• Produces short-term sales increases
• Attracts customers away from competitors
• Creates upselling and crossselling
• Opportunities
• May only create temporary loyalty based upon
price
• Difficult to differentiate from similar programs
of competitors
• Nonpersonal appeal
• Can work against long-term company goals
13
Copyright ©2019 John Wiley & Sons, Inc.
Components of the Promotional Mix (2 of 2)
Component Advantages Disadvantages
Public Relations • Enhances product or company credibility
through third-party media
• Creates a positive attitude about the
product or company
• More detailed information to targeted
market
• Low cost compared to other Promotions
• Difficult to measure effectiveness
• Media may deliver an inaccurate message
• Overreliance on the media to deliver a
message
• Often devoted to nonmarketing activities
Direct Marketing • Response rates can be quantified and
tracked
• Can use to first test with a smaller
campaign
• Can appeal to a specific and appropriate
market segment
• Enhances brand awareness
• Increased demand from consumers to end
unsolicited contacts from companies
• Privacy issues
• Negative perception of direct marketers
• Consumers throw away direct mail pieces
or delete marketing emails
Sponsorships • Viewed positively by consumers
• Enhances brand awareness
• Target specific market segments
• Difficult to control message
14
Copyright ©2019 John Wiley & Sons, Inc.
Objectives of Promotional Strategies
Figure 13.1 Five Major Promotional Objectives
15
Copyright ©2019 John Wiley & Sons, Inc.
Promotional Planning
Promotional planning practices include:
• Product placement- marketers pay placement fees to have
their products showcased in various media, ranging from
newspapers and magazines to television and movies.
• Guerilla marketing- innovative, low-cost marketing efforts
designed to get consumers’ attention in unusual ways.
• Digital marketing of products or services using digital
channels to reach consumers through promotion of brands
through various forms of digital media.
16
Copyright ©2019 John Wiley & Sons, Inc.
Advertising
• Advertising- paid nonpersonal communication usually
targeted at large numbers of potential buyers.
• Advertising expenditures are great– carmakers spend
$20 billion per year.
• Consumers are bombarded with many messages.
• Firms need to be more and more creative and efficient at
getting consumers’ attention.
17
Copyright ©2019 John Wiley & Sons, Inc.
Types of Advertising (1 of 6)
• Product advertising- messages designed to sell a
particular good or service
• Institutional advertising- messages that promote
concepts, ideas, philosophies, or goodwill for
industries, companies, organizations, or government
entities
• Cause advertising- institutional messaging that
promotes a specific viewpoint on a public issue as a
way to influence public opinion and the legislative
process
18
Copyright ©2019 John Wiley & Sons, Inc.
Types of Advertising (2 of 6)
Product advertising is used to sell a particular good or service. In this case, the
product is Heinz ketchup.
19
Copyright ©2019 John Wiley & Sons, Inc.
Advertising and the Product Life Cycle
• Informative advertising- used to build initial demand
for a product in the introductory phase
• Persuasive advertising- attempts to improve the
competitive status of a product, institution, or concept,
usually in the growth and maturity stages
• Comparative advertising- compares products directly
with their competitors either by name or by inference
• Reminder-oriented advertising - appears in the late
maturity or decline stages to maintain awareness of
the importance and usefulness of a product
20
Copyright ©2019 John Wiley & Sons, Inc.
Advertising Media Pie
Figure 13.2 Share of Ad Spending by Media Type
Source: Company website, “Advertising Expenditure Forecasts March 2018,” zenithmediacorp.com, accessed May
5, 2018.
21
Copyright ©2019 John Wiley & Sons, Inc.
Types of Advertising (3 of 6)
• Television
• Easiest way to reach a large
number of consumers
• Most expensive
• Newspapers
• Dominate local advertising
• Short life span
• Radio
• Commuters in cars are
captive
• Internet radio offers new
opportunities
• Magazines
• Consumer publications and
trade journals w/customized
messages
• Direct Mail
• printed catalogs, ads, and
letters
• Outdoor Advertising
• $7+ billion annually
• Requires brief messages
• Digital Advertising
• Search engine marketing,
display ads, classified ads
22
Copyright ©2019 John Wiley & Sons, Inc.
Digital Marketing Trends (1 of 3)
Table 13.2 Digital Marketing Trends
Trend Description
Mobilfication On the rise and quickly becoming a top priority for marketers with personalized text
messages, apps, and even mobile-friendly websites.
Media Properties The best way to control the conversation with prospects and customers is to
provide helpful, authentic, quality content.
Chatbots A website or Facebook chatbots (with artificial intelligence) can be considered a tool on
the other side of the computer that can be used as a marketing strategy for
engagement, customer service issues, basic questions, or support.
Reviews Many consumers regularly check online reviews before purchasing a new
item. Organic traffic from search engine optimization continues to be one of the best
sources of web traffic for many businesses. While there are many elements involved in
ranking, the number of reviews is a key factor.
Video on Demand To increase sales, nothing on social media is as eye-catching as a good video
to tell a compelling story—and more mobile ads will be in the form of videos.
Most videos (90% of Twitter and 60% of YouTube) are viewed on mobile devices.
Facebook Live, YouTube, or a video on a website landing page are all options.
23
Copyright ©2019 John Wiley & Sons, Inc.
Digital Marketing Trends (2 of 3)
Trend Description
Branding Versus
Direct Response
Telling your story versus telling people what to do is critical. Rather than focusing attention
on the call to action, deliver value first by telling your brand’s story and portraying your
business in the best possible light.
Social Media
Influencers
There are advantages to social influencer marketing. Developing long-term organic and
authentic relationships with social media influencers that mesh with a brand can help
establish or revitalize a brand. Social media influencer Bryanboy works with Gucci, Prada,
and Calvin Klein.
Storytelling Social media “stories,” pioneered by Snapchat, have now become popular on Instagram,
Facebook, and YouTube. Stories capture a brand’s best moments from a day—and vanish
within 24 hours.
Voice Search Voice Search will profoundly change search engine optimization. Marketers must decide
how to market and build applications to voice-activated and searchable devices like
Amazon’s Alexa—who will retrieve and serve information to the user.
Consuming in
Virtual and
Augmented Worlds
Social media platforms have already started to adopt virtual reality and augmented reality
into their algorithms. IKEA has a virtual shopping application to preview furniture in your
own home before purchasing. Facebook offers 360-video publishing and Snapchat users
can project their virtual self into the real world as an animated, 3-D bitmoji.
24
Copyright ©2019 John Wiley & Sons, Inc.
Digital Marketing Trends (3 of 3)
Trend Description
Native
Advertising
A native ad, paid for by an advertiser to promote a product or service, includes
written or other material in an online publication that blends in by resembling
the publication’s editorial content. Examples include advertorial, instant
content, search advertising, recommended content, or sponsored listings.
Personalization With privacy and consumer confidence threatened, targeted advertising
depends on gaining insights into customers’ demographics and viewing
behaviors—and then augmenting this customer information with social media
data. To reach the right person at the right time at the right place with the right
message, personalization requires data and information to be highly accurate
and relevant.
Sources: Nick Brucker, “Four Emerging Digital Marketing Trends to Keep on Your Radar,” Forbes,
www.forbes.com, accessed May 6, 2018; Michael Tasner, “Six Digital Marketing Trends to Watch in
2018,” Forbes, www.forbes.com, accessed May 6, 2018; company website, “Deloitte Insights,”
www2.deloitte.com, accessed May 6, 2018; “12 Marketing Trends to Take Advantage of This Year,”
Forbes, www.forbes.com, accessed May 6, 2018; Jay Kernis, “The Rise of Social Media Influencers,”
CBS News, www.cbsnews.com, accessed May 6, 2018.
25
Copyright ©2019 John Wiley & Sons, Inc.
Types of Advertising (4 of 6)
Digital billboards allow
advertisers the flexibility to
change a message
throughout the day with
real time updates and
conditional content based
upon weather and events.
26
Copyright ©2019 John Wiley & Sons, Inc.
Types of Advertising (5 of 6)
• Online and Interactive Advertising
• Viral advertising creates a message that is novel or
entertaining enough for consumers to forward it to
others, spreading it like a virus.
• Many consumers resent the intrusion of pop-up ads
that suddenly appear on their computer screen.
27
Copyright ©2019 John Wiley & Sons, Inc.
Types of Advertising (6 of 6)
• Sponsorship
• Providing funds for a sporting or cultural event in
exchange for a direct association with the event.
• Benefits: exposure to target audience and
association with image of the event.
• Other Media Options
• Marketers look for novel ways to reach customers:
infomercials, ATM receipts, directory advertising.
28
Copyright ©2019 John Wiley & Sons, Inc.
Sales Promotion
• Sales promotion consists of forms of promotion such as coupons, product
samples, and rebates that support advertising and personal selling.
Figure 13.3 The Most Common Types of Sales Promotions
29
Copyright ©2019 John Wiley & Sons, Inc.
Customer-Oriented Promotions
• Coupons attract new customers but focus on price
rather than brand loyalty.
• Rebates increase purchase rates, promote multiple
purchases, and reward product users.
• Samples - consumers who receive a sample will try it.
• Games, Contests, and Sweepstakes for new products
• Cash, merchandise, or travel prizes offered to
participating winners.
• Specialty Advertising
• Promotional items that prominently display a firm’s
name, logo, or business slogan.
30
Copyright ©2019 John Wiley & Sons, Inc.
Trade-Oriented Promotions
• Trade Promotion is sales promotion geared to
marketing intermediaries rather than to consumers
• Encourage retailers
• To stock new products
• To continue carrying existing ones
• To promote both new and existing products effectively to
consumers
31
Copyright ©2019 John Wiley & Sons, Inc.
Personal Selling (1 of 2)
• A person-to-person promotional presentation to a
potential buyer
• Many companies consider personal selling the key to
marketing effectiveness.
• A seller matches a firm’s goods and services to the needs
of a particular client or customer.
• Today, sales and sales-related jobs employ about 15
million U.S. workers
• Businesses often spend five to ten times as much on
personal selling as on advertising.
32
Copyright ©2019 John Wiley & Sons, Inc.
Personal Selling (2 of 2)
All sales activities involve
assisting customers. At
Weaver’s Coffee & Tea in
San Francisco, a helpful
barista is conscientious
about quality and friendly
service to accommodate a
customer’s specific needs
— and to increase and
maintain repeat sales.
33
Copyright ©2019 John Wiley & Sons, Inc.
Criteria for Personal Selling
• Customers are few in number and geographically
concentrated
• The produce is technically complex
• The product carries a relatively high price
• The produce moves through direct-distribution
channels.
34
Copyright ©2019 John Wiley & Sons, Inc.
Sales Tasks
• Order Processing
• Creative Selling
• Missionary Selling
• Telemarketing
35
Copyright ©2019 John Wiley & Sons, Inc.
The Sales Process
Figure 13.4 Seven Steps in the Sales Process
36
Copyright ©2019 John Wiley & Sons, Inc.
Prospecting, Qualifying, and Approaching
• A good salesperson varies
the sales process based
on customers’ needs and
responses.
• Prospecting - identifying
potential customers
• Qualifying - identifying
potential customers
• Approaching - analyzing
available data about a
prospective customer’s
product lines and other
pertinent information Figure 13.4 Seven Steps in the Sales Process
37
Copyright ©2019 John Wiley & Sons, Inc.
Presentation and Demonstration
• Presentation
• Salespeople communicate
promotional messages. They
may describe the major
features of their products,
highlight the advantages,
and cite examples of
satisfied consumers.
• Demonstration
• Reinforces the message that
the salesperson has been
communicating. Figure 13.4 Seven Steps in the Sales Process
38
Copyright ©2019 John Wiley & Sons, Inc.
Handling Objections and Closing
• Use objections as an
opportunity to answer
questions and explain how
the product will benefit the
customer.
• The closing is the critical
point in the sales process.
• Even if the sale is not made,
the salesperson should
regard the interaction as
the beginning of a potential
relationship.
Figure 13.4 Seven Steps in the Sales Process
39
Copyright ©2019 John Wiley & Sons, Inc.
Follow-Up
• An important part
of building a long-
lasting relationship.
• May determine
whether the
customer will make
another purchase.
Figure 13.4 Seven Steps in the Sales Process
40
Copyright ©2019 John Wiley & Sons, Inc.
Public Relations
• Public relations – a public organization’s communications
and relationships with its various audiences.
• Is an efficient, indirect communications channel for
promoting products. It can publicize products and help create
and maintain a positive image of the company.
• Publicity- nonpersonal stimulation of demand for a good,
service, place, idea, event, person, or organization by
unpaid placement of information in print or broadcast
media.
• Good publicity can promote a firm’s positive image.
• Negative publicity can cause problems.
41
Copyright ©2019 John Wiley & Sons, Inc.
Pushing and Pulling Strategies
• Pushing Strategy relies on personal selling to market an
item to wholesalers and retailers
• Pulling Strategy promotes a product by generating
consumer demand for it through advertising and sales
promotion
• Most marketing situations require combinations of push
and pull strategies
• Cooperative advertising – allowance provided by marketers
in which they share the cost of local advertising of their
firm’s product or product line with channel partners.
42
Copyright ©2019 John Wiley & Sons, Inc.
Copyright
Copyright © 2019 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Act without the express written permission of the
copyright owner is unlawful. Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up
copies for his/her own use only and not for distribution or resale. The Publisher assumes
no responsibility for errors, omissions, or damages, caused by the use of these programs
or from the use of the information contained herein.
43
Copyright ©2019 John Wiley & Sons, Inc.

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SESI 6 - STRATEGI PROMOSI YANG BERETIKA.pptx

  • 1. The Marketing Pathfinder: Key concepts and cases for for marketing strategy and decision making David Stewart and Michael Saren Copyright © 2014 by John Wiley & Sons, Ltd. All rights reserved.
  • 2. 2. Developing Products and Services Product and service typology Importance of innovation Product life cycle Diffusion of innovation First mover advantage 10. Maverick Marketing Marketing mavericks Marketing as practice Marketing as service Digital marketing Boundary spanning Four views of marketing Delivering value Creating value propositions 1. Mobilizing the Marketing Endeavour 8. Finding the Right Marketing Space Distribution Marketing channels Channel structures Impact of IT Role of logistics 7. Successful Brand Building Strategic brand management Types of brands Semiotics Brand extensions Brand equity 9. Communication Heaven Integrated marketing comms Communication objectives Communication mechanisms Media choices 3. Analysis and Understanding Demand forecasting Market analysis Competitor analysis Market research 4. Understanding Why They Buy Influence of culture Use of neo-tribes Prosumers Decision-making process Means-end chain 5. How Much Are They Prepared to Pay? Break-even analysis Price points Value proposition Pricing strategies Revenue management 6. Over-Promising, Ethics, and Sustainability Role of promises How & why over-promising occurs Importance of ethics Sustainable marketing FIRM BUYER Relational Exchange Experience
  • 3. • List five ways over-promising can occur and provide an example of each • Identify the contemporary issues of sustainable marketing • Discuss integrated marketing communications (IMC). • Summarize the different types of advertising. • Outline sales promotion. • Describe pushing and pulling strategies Learning objectives
  • 4. Promises, promises  The role of promises ◦ promises management  quality and delivery key components  making them is distinct from keeping them  internal and external alignment  implicit and explicit expectations  organization-wide processes needed
  • 5. The truth is out there  How and why over-promising occurs ◦ lack of organizational integration ◦ unrealistic expectations set ◦ familiarity breeds discontent ◦ attention-seeking advertising ◦ symbolic differentiation only ◦ level of customer effort involved ◦ post-purchase offers
  • 6. The truth is out there  How and why over-promising occurs cont’d ◦ promises not met?  complain  switch custom elsewhere  feedback  customer recovery  better to not over-promise in the first place
  • 7. Honest guv!  The importance of ethics ◦ branch of moral philosophy ◦ Marketing “a bad name” ◦ normative perspective ◦ distributive justice ◦ “general theory” of marketing ethics
  • 8. It’s not easy being green  Sustainable marketing ◦ a logical extension or a fundamental shift? ◦ metaphorical machine vs. living systems ◦ post-industrial marketing  ability to embrace change  dynamic configurations  efficient resource management  thinking in new ways
  • 9. Promotion (1 of 2) • Promotion is the function of informing, persuading, and influencing a purchase decision. • Some promotional strategies try to develop primary demand, or consumer desire for a general product category. • Most promotions stimulate selective demand, or a desire for a specific brand 3 Copyright ©2019 John Wiley & Sons, Inc.
  • 10. Promotion (1 of 2) Created by advertising agency Goodby Silverstein & Partners to encourage the consumption of cow’s milk, “Got Milk” has become one of the most prolific primary demand marketing campaigns of all time. 10 Copyright ©2019 John Wiley & Sons, Inc.
  • 11. Integrated Marketing Communications • Integrated marketing communications (IMC) is the coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified, customer-focused message. • Must take a broad view and plan for all form of customer contact. • Create unified personality and message for the good, service, or brand. • Elements include personal selling, advertising, sales promotion, publicity, and public relations. 11 Copyright ©2019 John Wiley & Sons, Inc.
  • 12. Promotional Mix • Promotional mix- combination of personal and nonpersonal selling components designed to meet the needs of their firm’s target customers and effectively and efficiently communicate its message to them. • Personal selling- the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer. • Nonpersonal selling- advertising, sales promotion, direct marketing, and public relations 12 Copyright ©2019 John Wiley & Sons, Inc.
  • 13. Components of the Promotional Mix (1 of 2) Table 13.1 Comparing the Components of the Promotional Mix Component Advantages Disadvantages Personal Selling • For complex goods and services of high value, more information can be conveyed • Message can be tailored for each customer • Produces immediate buyer response • Effectiveness is easily measured • High cost per contact • Limited reach (can only cover one geographic region or place at a time) • Costly and difficulty attracting and retaining effective salespeople Nonpersonal Selling Advertising • Reaches the masses at a low cost per contact • Allows control of the message • Messaging can be tailored to match each audience • Difficult to measure effectiveness • Limited value for closing sales • Costs can be high • Can be confusing or untruthful • Can add to a product’s cost Sales Promotion • Attracts attention and creates awareness • Effectiveness is easily measured • Produces short-term sales increases • Attracts customers away from competitors • Creates upselling and crossselling • Opportunities • May only create temporary loyalty based upon price • Difficult to differentiate from similar programs of competitors • Nonpersonal appeal • Can work against long-term company goals 13 Copyright ©2019 John Wiley & Sons, Inc.
  • 14. Components of the Promotional Mix (2 of 2) Component Advantages Disadvantages Public Relations • Enhances product or company credibility through third-party media • Creates a positive attitude about the product or company • More detailed information to targeted market • Low cost compared to other Promotions • Difficult to measure effectiveness • Media may deliver an inaccurate message • Overreliance on the media to deliver a message • Often devoted to nonmarketing activities Direct Marketing • Response rates can be quantified and tracked • Can use to first test with a smaller campaign • Can appeal to a specific and appropriate market segment • Enhances brand awareness • Increased demand from consumers to end unsolicited contacts from companies • Privacy issues • Negative perception of direct marketers • Consumers throw away direct mail pieces or delete marketing emails Sponsorships • Viewed positively by consumers • Enhances brand awareness • Target specific market segments • Difficult to control message 14 Copyright ©2019 John Wiley & Sons, Inc.
  • 15. Objectives of Promotional Strategies Figure 13.1 Five Major Promotional Objectives 15 Copyright ©2019 John Wiley & Sons, Inc.
  • 16. Promotional Planning Promotional planning practices include: • Product placement- marketers pay placement fees to have their products showcased in various media, ranging from newspapers and magazines to television and movies. • Guerilla marketing- innovative, low-cost marketing efforts designed to get consumers’ attention in unusual ways. • Digital marketing of products or services using digital channels to reach consumers through promotion of brands through various forms of digital media. 16 Copyright ©2019 John Wiley & Sons, Inc.
  • 17. Advertising • Advertising- paid nonpersonal communication usually targeted at large numbers of potential buyers. • Advertising expenditures are great– carmakers spend $20 billion per year. • Consumers are bombarded with many messages. • Firms need to be more and more creative and efficient at getting consumers’ attention. 17 Copyright ©2019 John Wiley & Sons, Inc.
  • 18. Types of Advertising (1 of 6) • Product advertising- messages designed to sell a particular good or service • Institutional advertising- messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities • Cause advertising- institutional messaging that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process 18 Copyright ©2019 John Wiley & Sons, Inc.
  • 19. Types of Advertising (2 of 6) Product advertising is used to sell a particular good or service. In this case, the product is Heinz ketchup. 19 Copyright ©2019 John Wiley & Sons, Inc.
  • 20. Advertising and the Product Life Cycle • Informative advertising- used to build initial demand for a product in the introductory phase • Persuasive advertising- attempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages • Comparative advertising- compares products directly with their competitors either by name or by inference • Reminder-oriented advertising - appears in the late maturity or decline stages to maintain awareness of the importance and usefulness of a product 20 Copyright ©2019 John Wiley & Sons, Inc.
  • 21. Advertising Media Pie Figure 13.2 Share of Ad Spending by Media Type Source: Company website, “Advertising Expenditure Forecasts March 2018,” zenithmediacorp.com, accessed May 5, 2018. 21 Copyright ©2019 John Wiley & Sons, Inc.
  • 22. Types of Advertising (3 of 6) • Television • Easiest way to reach a large number of consumers • Most expensive • Newspapers • Dominate local advertising • Short life span • Radio • Commuters in cars are captive • Internet radio offers new opportunities • Magazines • Consumer publications and trade journals w/customized messages • Direct Mail • printed catalogs, ads, and letters • Outdoor Advertising • $7+ billion annually • Requires brief messages • Digital Advertising • Search engine marketing, display ads, classified ads 22 Copyright ©2019 John Wiley & Sons, Inc.
  • 23. Digital Marketing Trends (1 of 3) Table 13.2 Digital Marketing Trends Trend Description Mobilfication On the rise and quickly becoming a top priority for marketers with personalized text messages, apps, and even mobile-friendly websites. Media Properties The best way to control the conversation with prospects and customers is to provide helpful, authentic, quality content. Chatbots A website or Facebook chatbots (with artificial intelligence) can be considered a tool on the other side of the computer that can be used as a marketing strategy for engagement, customer service issues, basic questions, or support. Reviews Many consumers regularly check online reviews before purchasing a new item. Organic traffic from search engine optimization continues to be one of the best sources of web traffic for many businesses. While there are many elements involved in ranking, the number of reviews is a key factor. Video on Demand To increase sales, nothing on social media is as eye-catching as a good video to tell a compelling story—and more mobile ads will be in the form of videos. Most videos (90% of Twitter and 60% of YouTube) are viewed on mobile devices. Facebook Live, YouTube, or a video on a website landing page are all options. 23 Copyright ©2019 John Wiley & Sons, Inc.
  • 24. Digital Marketing Trends (2 of 3) Trend Description Branding Versus Direct Response Telling your story versus telling people what to do is critical. Rather than focusing attention on the call to action, deliver value first by telling your brand’s story and portraying your business in the best possible light. Social Media Influencers There are advantages to social influencer marketing. Developing long-term organic and authentic relationships with social media influencers that mesh with a brand can help establish or revitalize a brand. Social media influencer Bryanboy works with Gucci, Prada, and Calvin Klein. Storytelling Social media “stories,” pioneered by Snapchat, have now become popular on Instagram, Facebook, and YouTube. Stories capture a brand’s best moments from a day—and vanish within 24 hours. Voice Search Voice Search will profoundly change search engine optimization. Marketers must decide how to market and build applications to voice-activated and searchable devices like Amazon’s Alexa—who will retrieve and serve information to the user. Consuming in Virtual and Augmented Worlds Social media platforms have already started to adopt virtual reality and augmented reality into their algorithms. IKEA has a virtual shopping application to preview furniture in your own home before purchasing. Facebook offers 360-video publishing and Snapchat users can project their virtual self into the real world as an animated, 3-D bitmoji. 24 Copyright ©2019 John Wiley & Sons, Inc.
  • 25. Digital Marketing Trends (3 of 3) Trend Description Native Advertising A native ad, paid for by an advertiser to promote a product or service, includes written or other material in an online publication that blends in by resembling the publication’s editorial content. Examples include advertorial, instant content, search advertising, recommended content, or sponsored listings. Personalization With privacy and consumer confidence threatened, targeted advertising depends on gaining insights into customers’ demographics and viewing behaviors—and then augmenting this customer information with social media data. To reach the right person at the right time at the right place with the right message, personalization requires data and information to be highly accurate and relevant. Sources: Nick Brucker, “Four Emerging Digital Marketing Trends to Keep on Your Radar,” Forbes, www.forbes.com, accessed May 6, 2018; Michael Tasner, “Six Digital Marketing Trends to Watch in 2018,” Forbes, www.forbes.com, accessed May 6, 2018; company website, “Deloitte Insights,” www2.deloitte.com, accessed May 6, 2018; “12 Marketing Trends to Take Advantage of This Year,” Forbes, www.forbes.com, accessed May 6, 2018; Jay Kernis, “The Rise of Social Media Influencers,” CBS News, www.cbsnews.com, accessed May 6, 2018. 25 Copyright ©2019 John Wiley & Sons, Inc.
  • 26. Types of Advertising (4 of 6) Digital billboards allow advertisers the flexibility to change a message throughout the day with real time updates and conditional content based upon weather and events. 26 Copyright ©2019 John Wiley & Sons, Inc.
  • 27. Types of Advertising (5 of 6) • Online and Interactive Advertising • Viral advertising creates a message that is novel or entertaining enough for consumers to forward it to others, spreading it like a virus. • Many consumers resent the intrusion of pop-up ads that suddenly appear on their computer screen. 27 Copyright ©2019 John Wiley & Sons, Inc.
  • 28. Types of Advertising (6 of 6) • Sponsorship • Providing funds for a sporting or cultural event in exchange for a direct association with the event. • Benefits: exposure to target audience and association with image of the event. • Other Media Options • Marketers look for novel ways to reach customers: infomercials, ATM receipts, directory advertising. 28 Copyright ©2019 John Wiley & Sons, Inc.
  • 29. Sales Promotion • Sales promotion consists of forms of promotion such as coupons, product samples, and rebates that support advertising and personal selling. Figure 13.3 The Most Common Types of Sales Promotions 29 Copyright ©2019 John Wiley & Sons, Inc.
  • 30. Customer-Oriented Promotions • Coupons attract new customers but focus on price rather than brand loyalty. • Rebates increase purchase rates, promote multiple purchases, and reward product users. • Samples - consumers who receive a sample will try it. • Games, Contests, and Sweepstakes for new products • Cash, merchandise, or travel prizes offered to participating winners. • Specialty Advertising • Promotional items that prominently display a firm’s name, logo, or business slogan. 30 Copyright ©2019 John Wiley & Sons, Inc.
  • 31. Trade-Oriented Promotions • Trade Promotion is sales promotion geared to marketing intermediaries rather than to consumers • Encourage retailers • To stock new products • To continue carrying existing ones • To promote both new and existing products effectively to consumers 31 Copyright ©2019 John Wiley & Sons, Inc.
  • 32. Personal Selling (1 of 2) • A person-to-person promotional presentation to a potential buyer • Many companies consider personal selling the key to marketing effectiveness. • A seller matches a firm’s goods and services to the needs of a particular client or customer. • Today, sales and sales-related jobs employ about 15 million U.S. workers • Businesses often spend five to ten times as much on personal selling as on advertising. 32 Copyright ©2019 John Wiley & Sons, Inc.
  • 33. Personal Selling (2 of 2) All sales activities involve assisting customers. At Weaver’s Coffee & Tea in San Francisco, a helpful barista is conscientious about quality and friendly service to accommodate a customer’s specific needs — and to increase and maintain repeat sales. 33 Copyright ©2019 John Wiley & Sons, Inc.
  • 34. Criteria for Personal Selling • Customers are few in number and geographically concentrated • The produce is technically complex • The product carries a relatively high price • The produce moves through direct-distribution channels. 34 Copyright ©2019 John Wiley & Sons, Inc.
  • 35. Sales Tasks • Order Processing • Creative Selling • Missionary Selling • Telemarketing 35 Copyright ©2019 John Wiley & Sons, Inc.
  • 36. The Sales Process Figure 13.4 Seven Steps in the Sales Process 36 Copyright ©2019 John Wiley & Sons, Inc.
  • 37. Prospecting, Qualifying, and Approaching • A good salesperson varies the sales process based on customers’ needs and responses. • Prospecting - identifying potential customers • Qualifying - identifying potential customers • Approaching - analyzing available data about a prospective customer’s product lines and other pertinent information Figure 13.4 Seven Steps in the Sales Process 37 Copyright ©2019 John Wiley & Sons, Inc.
  • 38. Presentation and Demonstration • Presentation • Salespeople communicate promotional messages. They may describe the major features of their products, highlight the advantages, and cite examples of satisfied consumers. • Demonstration • Reinforces the message that the salesperson has been communicating. Figure 13.4 Seven Steps in the Sales Process 38 Copyright ©2019 John Wiley & Sons, Inc.
  • 39. Handling Objections and Closing • Use objections as an opportunity to answer questions and explain how the product will benefit the customer. • The closing is the critical point in the sales process. • Even if the sale is not made, the salesperson should regard the interaction as the beginning of a potential relationship. Figure 13.4 Seven Steps in the Sales Process 39 Copyright ©2019 John Wiley & Sons, Inc.
  • 40. Follow-Up • An important part of building a long- lasting relationship. • May determine whether the customer will make another purchase. Figure 13.4 Seven Steps in the Sales Process 40 Copyright ©2019 John Wiley & Sons, Inc.
  • 41. Public Relations • Public relations – a public organization’s communications and relationships with its various audiences. • Is an efficient, indirect communications channel for promoting products. It can publicize products and help create and maintain a positive image of the company. • Publicity- nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media. • Good publicity can promote a firm’s positive image. • Negative publicity can cause problems. 41 Copyright ©2019 John Wiley & Sons, Inc.
  • 42. Pushing and Pulling Strategies • Pushing Strategy relies on personal selling to market an item to wholesalers and retailers • Pulling Strategy promotes a product by generating consumer demand for it through advertising and sales promotion • Most marketing situations require combinations of push and pull strategies • Cooperative advertising – allowance provided by marketers in which they share the cost of local advertising of their firm’s product or product line with channel partners. 42 Copyright ©2019 John Wiley & Sons, Inc.
  • 43. Copyright Copyright © 2019 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. 43 Copyright ©2019 John Wiley & Sons, Inc.

Editor's Notes

  1. Marketing is all about promises according to Grönroos (2009) - making them, meeting them, expectations and perceptions of them. From the customers’ perspective it is the quality and delivery of the promises made about the performance or value of a product or service which influence their propensity to purchase and their level of satisfaction. He argues that for standardized products the conventional marketing management approach based on a mix of key variables may in some cases be sufficient to communicate and deliver the firm’s promises. More complex, irregular or intangible offerings present greater difficulties, however. Even conventional offerings normally constitute more than the core product, with augmented and intangible elements such as credit, insurance, warranty, after-sales service for which the promise is an intrinsic element..   Gronroos (2009) defines what he calls “promises management” as the process of “enabling, making and keeping promises” which goes a long way beyond the set of conventional marketing variables such as four or even seven “P” variables, the dominant approach of marketing management textbooks. He does accept that some marketing activities and processes do aim at making promises, such as communicating and pricing, but points out importantly that promises are often kept by other activities and processes such as order taking, deliveries, repair and maintenance, recovery of problems and mistakes and call centre advice. Moreover, promises cannot be expected to be successfully kept by the firm unless its employees are willing and motivated to do so, thus enhancing the role of internal marketing activities (Berry, 1981; Ballantyne, 2003) for promise delivery. However, enabling promise delivery also requires more resources than just employees, such as goods, IT systems, physical resources and information, and also external actors such as customers themselves and network partners who have to be developed in ways that support the fulfilment of promises. Thus what “enabling promises” becomes an integral part of the process of making and keeping promises.   A further issue is that keeping promises may be complicated by the different perceptions of the promise made by the marketer and the customer and indeed by different customers. This highlights the critical role of expectations in promises management, which may vary from person to person and from situation to situation. This has been well documented in services marketing research (e.g. Bitner, 1995) where for example customers may have implicit expectations as well explicit ones or “silent” expectations, which do not transform into explicit ones until customers experience the product. Also, some expectations are actually unrealistic, therefore some customers are bound to become disappointed. So, it is not the promises made themselves that should be kept, but the individual customers’ expectations that are created by these promises.   Promises management is first and foremost a holistic organization-wide process which extends beyond the functional department labelled “marketing” involving the entire organization. But there is evidence that this idealistic picture of marketing organization and management is rarely achieved in practice. The implication is that marketers are given or accept responsibility for tactical tasks of persuading customers to buy, including promising making, but the tasks involved in meeting and delivering promises to customers is a role assigned to other organizational functions.  
  2. A split in responsibility for the promise management process can easily lead to circumstances where from the customer’s point of view the organization as a whole fails to deliver on the promises made by the marketing department – in other words “over-promising”. One reason for over-promising is when managerial responsibility for promise management is unclear and/or a lack of organizational integration, which results in a split in the promise management process between the making of promises and their delivery. But there may also be other causes of excessive promising that are consequences of particular modern marketing activities. Often consumer marketing, in particular in promotions and events, aims to add excitement and glamour to everyday products and stimulate desire in jaded consumers. In doing so, however, there are several ways in which enthusiastic marketing activities can result in unrealistic customer expectations or over-promising. These include examples such as the following.   Many industries with “fast moving consumer goods” are built on customers’ continual dissatisfaction with the old, such as entertainment, fashion and clothing. One marketing strategy for these firms is to attempt to make consumers dissatisfied with existing products, then to instil a desire for stimulation of the new and thus create demand for new products. Familiarity breeds discontent. The result is potentially to create continually rising expectations as to the superiority of the new over the old which it replaces and to which it can be directly compared by the customers.   The hundreds of adverts, pop-ups, clichés and product placements to which consumers are exposed every day can cease to amuse, become repetitious and tedious, or just not noticed at all. Some advertisers therefore try vying for consumers’ attention by presenting more and more outrageous claims for their products and services. Although many of these claims are deliberately ridiculous, humorous or ironic and not meant to be taken seriously, not all consumers may get the joke. The message may not be taken seriously but because the information about the product is inflated or unclear, for some of the audience this may serve to raise expectations as to what will be delivered when the product is purchased.   Products are becoming increasingly standardized in design, manufacturing, raw materials, supply sourcing and components. For example, VAG manufacture Volkswagen, Skoda, Audi and Seat marques in which most parts and components are interchangeable, only the brands and the prices differ for the “target segments”. This means that consumer experiences too are becoming more and more standardized (Ritzer, 1998), despite apparent competition and choice in most markets. Within a given product class there is little to differentiate offerings except the brand, perhaps explaining the increased role of branding in consumer marketing in recent years. If the brand itself constitutes the major difference, it may promise more symbolic differentiation from the competition than the very similar tangible product can deliver, thus creating unrealizable expectations for consumers.   Consumers normally expect that having purchased a product the benefit will be delivered to them without much effort on their part. Recently however, more work is required on the part of consumers themselves in order for them to realize or “co-create” the value from the products and services they purchase (Vargo and Lusch, 2008). In some cases consumption has become more like work involving effort, decisions, transport, queuing, and taking up valuable free time (Zwick, Bonsu and Darmody, 2008). With this extended consumer role in self-service, DIY, “shadow” work co-creation and co-production, it is not surprising that consumers expectations are not met if they do not realize their role or are not prepared to contribute sufficiently to the value creation process.   Along with products and services consumers are bombarded with opportunities for social interactivity of various types, like brand communities, online forums, Twiteratti exchanges, value co-creation and media relations. They are encouraged to join, get involved, engage, co-create, communicate, dialogue and participate. These exhortations and invitations can convey the promise of engaging post-purchase social involvement with other consumers as well as identifying with the brand. However many such online networks, brand communities and consumer tribes are not real tribes or communities in any original ethnographic or sociological sense. And by no means all are consumer initiated social phenomena or communities. Indeed, most are artificially created for marketing purposes, not as social movements; therefore some consumers may feel disappointed or let down by the promise of exciting post-purchase interaction with other consumers.
  3. So what happens when consumers’ promises are not met? According to Hirchman (1970) they have two main choices – to complain or to switch their custom elsewhere. She provided theoretical foundation known as the “exit, voice and loyalty framework”, which when applied to the case of promises which are not met challenges the traditional view that consumers will simply switch from one supplier to one offering higher quality. Hirchman discovered that the dissatisfied customer does not always exit the brand but instead uses “voice” to articulate their dissatisfaction and feed this back to the supplier. As a result, exit and voice are viewed as the methods by which wayward organizations are made aware of customer complaints such as non-delivery of promises, and can amend their product and service operations accordingly.   Singh’s (1990) study supports Hirschman’s notion that customers would not exit if they could be assured their voice would bring about the desired results. When customers voice their complaints, management has the opportunity to recover the customer’s goodwill and many customers have unsuccessfully complained prior to deciding to exit. This implies that the management of customer complaints by the company, and how it is perceived by customers can be a critical element of the promise management process which if implemented successfully can potentially recover customers’ loyalty even following cases of failure to deliver on promises. This application of the “exit, voice and loyalty framework” to promise management is only a second best remedial solution. It is far better for the firm not to over-promise in the first place and to ensure that their delivery process ensures that promises to customers are kept.   The next section will examine the importance of ethics in marketing as an over-arching framework or philosophy which can mitigate against malpractices that can mislead or over-promise to customers.
  4. Ethics is the branch of moral philosophy that deals with moral judgements, standards, and rules of conduct and it involves perceptions and attitudes regarding right and wrong. After more than 60 years as a professional and academic discipline it can be now argued that the ethical basis of marketing theory and practice is moving towards more complex modes of analysis and understanding. Even in traditional marketing textbooks such as Kotler’s (1967) original Marketing management, planning and control take into account a wider set of alternative values beyond the utilitarian, free-market, consumer choice bases for ethical decisions. One of the first seminal articles on marketing ethics was a review by Murphy and Laczniak (1981) who nevertheless concluded that “the function within business firms most often charged with ethical abuse is marketing”. More recently as commentators still remind us, marketing still has a bad name. In common parlance it is often used as a byword for deception and exploitation and many see it as an engine driving forward materialism and excess consumption (Barber, 2007).   Most early work in this area studied ethics from a normative perspective, meaning that they were concerned with “constructing and justifying the moral standards and codes that one ought to follow” (Hunt and Vitell, 1986). Chonko and Hunt (1985) looked at both the nature and extent of marketers’ ethical problems and examined the effectiveness of top management actions and codes of ethics in promoting ethical behaviour. They found that bribery, fairness, honesty, price, product, personnel, confidentiality, advertising, manipulation of data and purchasing were the major ethical issues facing marketers. Later Gaski (1999) conducted a survey to identify the normative ethical frameworks from a review of the previous 25 years of marketing literature and found that there were surprisingly few distinct ethical recommendations stipulated in such codes. Laczniak and Murphy (2008) take a different ethical perspective than the normative framework by examining distributive justice in marketing by employing Rawls’ (1999) notion of fairness to ask the question: whose conception of fairness should be used to settle competing marketing claims? The model which has been applied most extensively is the Hunt-Vitell (1986) “general theory” of marketing ethics in which both deontological (ethical rules) and teleological (end results) arguments were used to ground their theory. Applications of this theory have examined sales professionals (Singhapakdi and Vitell, 1991), marketers (Singhapkdi et al, 1996), and international managers (Singhapakdi et al, 1994).  
  5. Books such as Fuller’s Sustainable Marketing: Managerial-Ecological Issues (1999) have begun to introduce notions of sustainability into marketing. Fuller argues that sustainability is “a logical extension of contemporary marketing … sustainable marketing is structured around the traditional ‘4Ps’ of marketing and explains how marketing mix decisions can and do influence environmental outcomes”. In this respect he appears to think that managers can simply “bolt on”, as it were, a “green extension” to the basic marketing concept and the traditional 4Ps approach to marketing and thereby achieve sustainability. However, a truly sustainable approach to marketing requires more than just making products “green” or environmentally “friendly”. It requires a completely new way of thinking about the role of marketing and the ethical framework and basis for marketing decision making.   For more radical advocates of sustainable marketing such as Kilbourne, Mcdonagh and Prothero (1997), nothing short of a revolutionary reassessment of basic marketing ideas, techniques, orientation and practice is required to achieve the undeniably radical goal of sustainability. Senge and Carstedt (2001) argue that it was the metaphor of the machine that marketers employed in the industrial age whereas it is the image of living systems that are required in order to inspire a truly sustainable “post-industrial” marketing . In this new age the roles of people, society and technologies all have to fundamentally change. Firms must also be increasingly flexible and creative in finding new ways of doing business, which are consistent with an uncertain world and the need for a commitment towards sustainable development. In some ways change may be seen as a measure of sustainability and organizations in the future will need to embrace change and uncertainty as a vital management function.   Thus, a fully sustainable view of marketing not only has to take into account the ecological management of resources in meeting customers and firm needs, but also must pay greater attention to organizational–environmental configurations that are dynamic, flexible and provide space for dealing with uncertainty. Sustainable marketing requires a critical re-examination of the concept of the marketing and environment interface, and the components that make it up. In light of contemporary – and future – environmental problems and marketing’s contribution to them, there is a need for marketing to account for the wider context of its relationship with the natural environment of which it is part. One way to reconsider this is by examining the nature and characteristics of living ecological systems, from disciplines such as ecology and biology, popular science, environmental management, environmental philosophy and design (Tsui, 1999). Thus one essential requirement of a more sustainable approach to marketing, not only concerns efficient resource management, but also learning to think in new ways; generating a new more adaptable marketing mindset that thrives in uncertain and complex conditions.