Communicating Customer Value

1. Communicating Customer Value

2. Agenda • The Promotion Mix • Integrated Marketing Communications • The Communication Process • Effective Marketing Communication • Promotion Budget/Mix • Socially Responsible Marketing Communication

3. Promotional Mix The five major promotional tools are: • Advertising • Sales Promotion • Personal Selling • Public Relations (PR) • Direct Marketing

4. The New Marketing Communication Model Several major factors are changing of today’s marketing communication • Consumers are changing • Marketing strategies are changing • Communication technology are causing remarkable changes in the ways in which companies and customers communicate with each other

5. New Marketing Communications • Reach smaller consumers in more interactive way • This includes traditional mass media and wide variety of more targeted, more personalized media

6. Integrated Marketing Communications Strategy • Recognize all touchpoints which would allow the customer to encounter the company and brand • Goal is to deliver a consistent and positive message through each contact

7. Developing Effective Market Communication

8. Steps to develop effective communication • Identify the target audience • Determine the communication objectives • Design a message • Choose media to send message • Select source • Collect feedback

9. Determining the Communication objectives Buyer-readiness stages • Awareness • Knowledge • Liking • Preference • Conviction • Purchase

10. Designing a Message • Goals of a message: AIDA • Grasp attention • Hold interest • Arouse desire • Obtain action

11. Designing a Message • Message Content • Rational appeal • Emotional appeal • Moral appeal • Message Structure • Draw conclusion or leave it to the audience • Present argument first or last • Admit only strengths or presents strengths while admitting faults

12. Choosing Media • Must select channels of communication • Personal communication • Word-of-mouth influence • Buzz marketing • Nonpersonal Communication • Major Media • Atmosphere • Events

13. Selecting Message Source • Who is going to deliver the message • Representation of brand • Usually well-known celebrities or athletes Red Bull uses athletes such as: • Ryan Sheckler- Skate Boarder • Jamie O’Brien- Surfer • Travis Pastrana- Motocross • Shaun White- Snowboarder

14. Collecting Feedback • What was the effect on the target audience? • Do they remember the message? • How many people bought the product? • May suggest changes in promotion or product • Allows for company to strengthen

15. Selecting Total Promotion Budget and Mix Setting the Total Promotion Budget • Affordable Method- Budget is what they think they can afford • Percentage-of-Sales Method- Budget is based at a percentage of current or forecasted sales • Competitive-Parity Method- Budget is set to match competitor’s outlay • Objective-and-Task Method- Budget is set for what is wanting to be accomplished

16. Commercial http://www.youtube.com/watch?v=yRX1jFEQApw

17. Shaping Overall Promotion Mix Promotion Mix Strategies • Push Strategy- “Pushing” product through marketing channels to final consumers • Pull Strategy- Marketing activities are directed towards final consumer

18. Socially Responsible Market Communications Advertising promotion Sales Promotion Personal Selling

19. Time for Discussion... • What are the five promotional tools ? • Which one do you believe Red Bull lacks in? • How does Red Bull use the objective-task method effectively? • Do you think the promotional program that Red Bull used in its early days would be a successful strategy for other companies? Why? • What strategy made the Red Bull energy drink so successful?

20. What We Learned...