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Marketing Management II

Professor Hayden Noel

Module 4: Marketing Communication (Promotion)

Table of Contents
Module 4: Marketing Communication (Promotion) ................................................................. 1
Lesson 4-1: Introduction to Promotion ............................................................................................. 2
Lesson 4-1.1: Introduction to Promotion..............................................................................................................2

Lesson 4-2: The Communications Model .......................................................................................... 9


Lesson 4-2.1: The Communications Model ...........................................................................................................9

Lesson 4-3: The Elements of the Communications Mix ................................................................... 22


Lesson 4-3.1: The Elements of the Communications Mix ...................................................................................22

Lesson 4-4: Consumer Buying Process ............................................................................................ 41


Lesson 4-4.1: Consumer Buying Process .............................................................................................................41

Lesson 4-5: Integrated Marketing Communications ........................................................................ 52


Lesson 4-5.1: Integrated Marketing Communications........................................................................................52

Lesson 4-6: Developing a Communications Plan ............................................................................. 60


Lesson 4-6.1: Developing a Communications Plan .............................................................................................60

Lesson 4-7: Is Your Advertising Effective? ....................................................................................... 81


Lesson 4-7.1: Is Your Advertising Effective? .......................................................................................................81

Lesson 4-8: PR, Events, Sponsorship and Sales Promotion .............................................................. 94


Lesson 4-8.1: Personal Selling and Public Relations ...........................................................................................94

Lesson 4-9: Sales Promotion & Digital Marketing ......................................................................... 114


Lesson 4-9.1: Sales Promotion & Digital Marketing..........................................................................................114

Professor Noel's Board Walk: Evaluating Advertising.................................................................... 133


Professor Noel's Board Walk: Evaluating Advertising .......................................................................................133

Discussions with the Experts Steve Raquel ................................................................................... 142


Discussions with the Experts Steve Raquel .......................................................................................................142

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Marketing Management II
Professor Hayden Noel

Lesson 4-1: Introduction to Promotion

Lesson 4-1.1: Introduction to Promotion

Hello and welcome from wherever in the world you are. Today we will talk about the
final element of the marketing mix. That final P is promotion. We'll begin with the
discussion of the communications model. This model is the basis for marketing
communication. Once you understand this framework, you'll understand how marketing
communication works. Also, we'll talk about different types of marketing
communications. Finally, we will examine how to develop a communication's plan.

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Marketing Management II
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First, let's revisit the marketing strategy process and see where promotion fits.
Promotion is part of the value creation process.

Through promotion efforts, marketers are able to establish a perception of value for the
product in the consumer's mind.

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One major element of promotion efforts is expenditure on advertising. Advertising


spending in the USA continues to outpace spending in other countries. As global
advertising market reach $593 billion in 2019, the United States remain unchallenged
both in terms of total and per capita ad spend.

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Marketing Management II
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According to Statista, advertising expenditure reached 242 billion in the United States in
2019, which almost eclipsed the combined ad spend of the next top eight ad markets.

Although global advertising dipped by five percent in 2020,

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the industry is expected to rebound an expenditure and advertising is expected to


increase in the coming years with spending estimated to hit $730 billion in 2025. This
includes all platforms, by the way, digital print, outdoor, radio, and television.

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Marketing Management II
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The rise in digital advertising is noteworthy, even during the COVID pandemic. Global
digital advertising revenues grew by eight percent in 2020 to $336 billion. Despite the
negative impact of the recession caused by the pandemic, we still had this increase.
Digital advertising will represent 59 percent of global advertiser sales. Given the COVID
crisis has caused the deepest economic recession in decades, the resilience of digital
advertising is extremely impressive and reflects major changes in consumer and
marketing behaviors that propelled even more so during and since the crisis. Digital
media has become even more central to all aspects of people's lives as one of the few
connections to the outside world because of strict quarantine measures in many
locations. Now many people have realized how convenient it is to shop online and this
will certainly change behaviors moving forward. After the pandemic started winding
down, the continued growth of US based apps like Instacart, FreshDirect, and Shipt
showed that shopping behaviors might be significantly changing moving forward.

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Marketing Management II
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Where shopping habits go, advertising dollars follow. In fact, digital media advertising is
projected to grow to as much as 70 percent of overall advertising expenditure in 2025.
That's almost three quarters of all advertising dollars being spent online. This is an
increase from 43 percent in 2017.

I'll guess that digital spend would be 90 percent of all ad spending by 2030 but hey,
that's just my best estimate.

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Marketing Management II
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Lesson 4-2: The Communications Model

Lesson 4-2.1: The Communications Model

Now advertising is just one element in what is known as marketing promotions. It is the
major element for sure, but is still one of several. So what is promotion? Let's examine
this into more detail. Promotion is simply a way for companies to communicate. They
communicate about their brand, their company and their range of products. They
develop and grow their brand through their promotion efforts. To understand promotion,
we must understand how communication works. People have used different means of
communicating over time, especially when they did not want other parties to know the
content of the message.

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Native Americans used smoke signals to communicate with each other in times gone
by. The smoke signals were used to alert others of multiple situations,

including to warn of danger, to call people to a common meeting area and to transmit
news.

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They are not the only group of people who have used smoke signals to communicate
though, the Chinese have also used smoke signals as well as Boy Scouts of America in
some instances. This form of communication was used by creating puffs of smoke using
a fire and a blanket. The smoke signals were used in an area where they were visible to
the receiver and this was usually transmitted atop a hill or a mountain. The meaning of
smoke signals is not as clear cut as other forms of communication. There was no
general code or standard meanings for the different shapes, numbers or type of smoke
puffs. The reason for this is because everyone could view the smoke signals and
sometimes you'd want the message to remain within your group. For this reason, the
code was predetermined by the person sending the signals and the person receiving
the signals.

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During World War II, the Germans used the Enigma machine to send coded messages
across enemy lines.

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The Enigma allowed an operator to type in a message, he then encoded the message
by scrambling it using 3 to 5 notched wings or autos, which displayed different letters of
the alphabet. The receiver needed to know the exact settings of these autos to decode
the text. The machines code was partly decoded by The Polish Army Intelligence in
1939. They passed on what they knew to the British, and during the war British
cryptologists built on that work and decrypted a vast number of messages, enciphered
on Enigma. The intelligence they derived from this source which is called named Ultra
By the British, was a substantial aid to the allied war effort. By the way, this British effort
to decrypt the messages from the Enigma was examined in the movie, The Imitation
Game. See it when you can, very interesting movie, I loved it. Both the use of smoke
signals and the Enigma machine are examples of the model of communication. Let me
tell you about this model. The communications model is the basis of promotions efforts.

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In the model there's a sender who encodes a message sends this via a medium, be it
smoke signals or with a special coding machine like the Enigma, that's the medium. And
then this message must then be decoded by the receiver. They must make sense of the
information being received.

When considering promotions, however, the model becomes a bit more complex. There
tends to be a barrier to effective communication, such as competing messages, or the
sender and receiver not sharing the same field of experience.

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These barriers are known as noise. Yes, noise. And they distort the encoding of a
message.

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And this could lead to miscommunication. This is noise. When I worked in the
advertising industry in the 1990s, I remember hearing of a strategy session to discuss
the product targeted to women. Imagine this, no woman in that meeting, that strategy
session. No woman. So how could a group of men develop appropriate strategy and
craft appropriate messages to communicate effectively with women? Even after
collecting research data from female subjects, it would still be best to have individuals
encoding the message who looked like the potential receiver. This type of approach
generates noise and leads to confusing messages which are not properly decoded by
receivers.

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Let's use some ads ourselves and see if we can record these messages being sent by
these companies. Here's the first one. It's from Fairy dishwashing liquid manufactured
by Procter & Gamble. The art copy reads, Fairy, some things are hard to separate.
What message does this ad send? What are they trying to say? I'll give you a minute to
think about it.

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The message here seems to be, when you have things that are tough to separate, the
grime and grease from apart or social media and work, [LAUGH] then use Fairy.

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Here's another from the World Wildlife Fund. This is an international non governmental
organization founded in 1961. Working in the field of wilderness preservation and the
reduction of humanity's footprint on the environment. Their magazine ads has seen a lot
of places and made quite an emotional impact in terms of creative advertising. The copy
in this ad reads, before it's too late. This one might be easier to decode. What are they
trying to get across? What's the message here?

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This is clear to me. Trees are the lungs of youth and help the planet breathe,
deforestation ends that process so the earth would not breathe. And then well, you
know what could happen.

Heinz ranks first in the ketchup category in the US. This final ad by Heinz is titled simply
the steak. That's it, the steak. Now, what is the message here? Decode this ad for me.

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Well, if you don't use ketchup, then your meat will taste plain like cardboard. That's a
message. The thing that gets me here though, who puts ketchup on their steak?

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Marketing Management II
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Lesson 4-3: The Elements of the Communications Mix

Lesson 4-3.1: The Elements of the Communications Mix

This is a model of communications and it certainly applies to how promotions work. The
sender encodes a message and sends it via a medium to the receiver, who has to
decode it. In marketing terms, the company creates an ad, including symbols and
central messages and sends it to the receiver via print or electronic means. If there's
little or no noise, it would be very easy for the receiver to decode the message.

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But therein lies a problem. There's usually some measure of noise.

Crafting the right promotional message to capture attention and enhance


understanding, then choosing the best medium are both very important in order to cut
through the noise. What are the company's goals with their marketing communications
efforts? Let's talk about this. By developing and executing marketing communication
strategies, managers broadcast the value that their products or services deliver to
consumers. Remember we spoke about value a lot.

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The goal is to optimize consumer engagement. They do this by ensuring that


consumers engage emotionally and cognitively with the brand,

leading to positive behavioral outcomes, such as recommendation of the brand or


purchase. Companies develop this engagement with consumers by creating marketing
communications that will connect with their target consumers and will eventually have a
positive impact on sales.

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These communications are designed to inform and persuade consumers.

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Marketing communications inform consumers of the existence, that's awareness, and


benefits of products, services, and ideas. It also persuades consumers to change the
attitudes and behaviors regarding goods and services, leading consumers to engage in
a value exchange with the firm. You give us your money and your brand loyalty, and
here's a product that you value, even exchange. While the desired result of all
marketing activities including communication is typically that said exchange, benefits the
product provides for money consumers are willing to pay, there's a typical sequence of
steps a consumer goes through that leads up to this event. These different stages are
known as a consumer decision-making process. The goal of a marketing
communications program should be to move consumers from each of these stages to
the next, from one stage to the next.

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These stages are: first, problem recognition, second, information search, third,
evaluation, and then purchase for initial trial, and finally, repeat purchase and adoption
of the product.

Some actors do refer to six distinct stages, but the process can be captured with these
five that I just discussed.

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These five stages can be categorized into three different steps. The cognitive, the
affective, and conative or behavioral stage.

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In the cognitive stage, the consumer determines whether she has a need and examines
options that could satisfy that need, so she thinks about different products and their
benefits. In this stage, the communicator's job is to convey a message to the potential
consumer. This involves making the consumer aware of the existence of the product
and then getting her to consider the product by conveying information about it. The
affective stage, when the consumer uses her emotions and feelings as a basis for
judgment, helps to change her attitude about a product, leading to a strong intent to
purchase. Trial of the product then ensues. Finally, an enduring behavioral stage
involves the consumer taking action resulting in not only a trial purchase, but a repeat
purchase of the product with the eventual development of loyalty towards a product or
brand.

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We have to remember that these stages as listed here are for products for which
consumers devote some time to the decision-making process, products that are more
expensive or entail more risk, for example, including social health risk.

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These stages might change depending on the type of product purchase and the level of
consumer involvement. Low involvement products, for example, gum or a bottle of
water, you would have the behavioral stage before the affective stage. In this instance,
you might buy the product first, try it, then evaluate and develop some measure for
liking after the affective stage. The behavioral state comes before the affective stage for
low involvement products. Next, determining the elements of a marketing
communication strategy begins with a careful analysis of these different stages for the
target consumers. Then, we must match communication vehicles with each stage to
ensure consumers move to the end stage of repeat purchase and loyalty. What are
some of these communication vehicles? Let's examine them. These communication
vehicles work together to form a company's communication mix. What are the different
elements of a communication mix?

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Well, these elements are advertising, sales promotion, public relations, personal selling,
and finally, direct marketing.

First off, there's advertising. What is advertising? It's a paid form of non-personal
presentation of goods or services.

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This could be via multiple types of media: magazines, newspapers, television, radio,
online. Personal selling involves personal face-to-face contact between the salesforce
and the customer. This would occur with a tailor meeting with a customer to craft a suit
for them, for example.

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Sales promotions are usually short-term incentives to encourage trial from new
customers,

and also maintain purchases of regular customers, like those dollars off coupons that
you might receive in the mail.

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Marketing Management II
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Public relations is when the company tries to obtain favorable publicity and also
undertake efforts to build a good corporate image.

More and more, companies are using the Internet to engage in direct marketing efforts.

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They engage in targeted communications with specific customers after collecting data
on these individuals. That way, they know exactly what products these customers are
seeking, and what their psychographic profile looks like. It's become increasingly easier
in the Internet age to engage in direct marketing with consumers.

One thing to remember is that promotions is more than just advertising. It's all of the
elements we just discussed.

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I can't tell you how many times people discuss promotions with me and all they talk
about is advertising, nothing else. As I said, this is the most important element, but the
promotion mix is broader and involves all of the elements that we have talked about.
What are the pros and cons of these different elements of the communications mix?
Advertising, which has many buyers, but it is somewhat impersonal, and could be very
costly. Personal selling, that could be very persuasive, but it is the most expensive
promotional tool to use. Sales promotions provide quick response, but this response is
short-lived. Is not appropriate to use this as a long-term strategy.

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Advertising, that's paid media. Public relations is earned media.

A study by Nielsen, commissioned by inPowered, on the rule of content in the consumer


decision-making process, concluded that public relations is almost 90 percent more
effective than advertising, in terms of resulting in positive evaluations. With advertising,
you tell people how great you are, with public relations you encourage others to sing
your praises.

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Direct marketing is a targeted effort to reach consumers with messages designed for
them.

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In the past, this was done via direct mail, then direct email. But now this is done by
using your data collected via your web browsing history, combined with geo-tracking
using your smartphones. You might receive an ad based on where you are in a city for
stores in the immediate vicinity. In addition, I'm sure some of you have received
targeted advertising after purchasing a product online or simply visiting a site online.
Use of consumers online, history is now one of the most important elements in many
marketing campaigns. There are pros and cons to this activity though. We'll discuss this
in more detail later on in this lecture. How can you use these different elements of the
communication mix to move customers through the various stages of the decision-
making process? Let's see.

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Lesson 4-4: Consumer Buying Process

Lesson 4-4.1: Consumer Buying Process

One of the variables that impacts how the elements of the communication mix are used
is a stage of the decision-making process that the consumer is in.

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Once the decision-making process of the target segment has been determined, it is
necessary to choose the appropriate communications tools. For example, advertising or
sales promotion.

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Different types of communication are used for the obvious reason that some are better
than others depending on the objective. For example, due to its high reach, television
advertising is great for creating broad-based brand awareness and providing
information about specific products or services. This is best in the problem recognition
and information search stage. However, it is typically not as effective in generating
action by the consumer. When you want to move the consumer from the valuation to the
purchase decision stage, sales promotions might be more effective.

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Let's look at an example. Mars. This is a candy manufacturer in the United States,

and they use product promoting ads and traditional television to introduce previously
unaware consumers to their new peanut butter flavor of their Snickers brand, and to
persuade them to consider trying it. It then use in-store promotions such as displays
with small packages near cash registers to persuade consumers to make an unplanned
impulse purchase. Following this, Mars went back to using brand-building ads
conveying their historical tagline,

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"Snickers satisfies" to build a positive attitude towards the brand and encourage repeat
purchases of any flavor. Feel like a bond right now.

In summary, by layer, the buying process of a target consumer segment, managers can
analyze each stage in isolation and explore what makes a customer move from one
stage to the next. With this understanding, marketers can develop marketing
communication campaigns better tailored to each stage.

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One point to note, these different communication elements are not used in isolation.
They're combined with other communication elements at various stages in the decision-
making process.

One might be used to greater extent than others depending on the decision-making
stage of the consumer. Let's examine the return provided by these different elements
based on the investment at various stages of the decision-making process.

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Communication tools vary in cost-effectiveness at different stages of buyer readiness.


Advertising and publicity play the most important rules in the problem recognition and
information search stages. Evaluations primarily affected by personal selling. Closing
the sale is influenced mostly by both personal selling and sales promotion, and in the
age of the Internet, direct marketing.

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Marketing Management II
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Another variable that must be considered when setting the communications mix is the
type of market.

Communications mix allocation varies between consumer and business markets.

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Marketing Management II
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Consumer marketers tend to spend comparatively more on sales promotion and


advertising. Business marketers tend to spend comparatively more on personal selling.
In general, personal selling is used more with complex, expensive, and risky goods and
in markets with fewer and larger sellers. In other words, business to business markets.

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Communication tools also vary in effectiveness at different stages of the product life
cycle. In the introduction stage, advertising, events and experiences, and publicity have
the highest cost-effectiveness,

followed by personal selling to gain distribution coverage and sales promotion and direct
marketing to induce trial.

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Marketing Management II
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In the growth stage, demand has its own momentum, especially through word of mouth.
In the maturity stage, advertising events and experiences and personal selling all grow
in importance. In the decline stage, sales promotion continues strong, while other
communication tools are reduced, and sales people give the product only minimal
attention.

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Lesson 4-5: Integrated Marketing Communications

Lesson 4-5.1: Integrated Marketing Communications

Historically, markets have been unsegmented. In the case of the automobile market,
this market was very consolidated and undifferentiated.

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Think of the Ford Model T automobile. The company did not really segment the market.

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One model was created and sold at one price to the public. Henry Ford began
production of the Model T in 1903, a car for the masses, they said. On October 7th,
1913, Ford's team developed a final assembly line using a rope and then a winch to pull
the chassis through a line of assembly workers. Hours of final assembly dropped from
more than 12 hours under the stationary assembly system to fewer than three. By
bringing the world to the employees, Ford's engineers managed to smooth out
differences in workplace. They slowed down the fast employees and forced slow ones
to quicken their pace. The results of this mass production were immediate and
significant. In 1912, Ford Motor Company produced 82,388 Model Ts and this car was
sold for $600. By 1916, Model T production had risen to 585,388 cars per year, and the
price had dropped to $360. One car for the masses indeed. However, currently, the
automobile market is heavily segmented. In the case of Ford,

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their marketing experts use an intensive research and analysis process to understand
who their potential customers are, what they value, and what they want in a vehicle.
Ford builds target customer profiles from multiple segments.

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They use much more than demographic information such as age, gender, and income.
They build complete profiles of the target customer, including information such as what
they like to do, what music they listen to, and where they shop. This leads to a multi-
segment market for Ford's automobiles. The fragmentation in the marketplace has led
to fragmentation in communication. This increased segmentation means that marketers
have to create different messages and use different media vehicles to reach these
different segments. In addition to using different measures to reach different segments,
the changing communication environment has also led to companies using multiple
media in order to reach the same segment in many instances.

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The same segment can be reached via print media, television, or the Internet.

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These two forces could lead to brand confusion if not executed properly. Care must be
taken to present a consistent image across all of the different media platforms. The
messages presented must be in line with the brand positioning regardless of the
medium used or the segment targeted. Marketers must carefully blend the different
promotion elements at their disposal to ensure that the brand's image isn't diluted or
distorted in any way. For example, let's say Volvo promoted its brand online as a sporty
car, one that is fast and handles well. Volvo sport.

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Now suppose they use print and television to promote the same brand as a safe family
car. Online it's sporty, and in print, it's safe.

What would that do to the positioning of Volvo and what would that do to it's image? It
could be very distorted and brand confusion could exist. You have to be careful when
you're blending these different elements. There must be a consistent claim message
about what the product or brand stands for.

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Lesson 4-6: Developing a Communications Plan

Lesson 4-6.1: Developing a Communications Plan

What are the different stages in developing communications plan? The 6 M's framework
could help us explain this process. The 6 M's are a mnemonic device similar to the 4 P's
of marketing to remind managers of the important aspects of managing a
communications campaign.

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These are M, market;

to whom is a communication campaign addressed?. The next, mission; what is the


objective of the campaign? The overall goal and decision-making process stage.

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Third, message;

what are the specific elements to be communicated?

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These first three stages of the 6 M's Model lay the strategic foundation for the
communications process.

Two points to note, when selecting the market and mission for marketing campaign, we
need to ensure that we define the 6 M's for the purpose of achieving specific goals.

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What's your mission and specific targets? Who's your market?

For example, in deciding the mission, initial focus should be on whether the primary
goal is to inform, we're talking here about awareness or information. Or persuade,
changing attitude or call to action. Whether to build the brand or promote a product, and
which decision-making process stages you'd like to impact.

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The second point is that during this strategic planning phase, companies stick to
consistency and alignment.

Consistency refers to maintaining a pattern of attack it's important to evolve and adapt,
but not to change the 6 M's too frequently or too suddenly. Alignment refers to
maintaining a cohesive pattern across the 6 M's. For example, as we discussed earlier,
matching the type of media to the stages in the decision-making process and to target
consumers.

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For example, Nike has consistently use its tagline, "JUST DO IT" for brand-building ad
since 1988,

aligning virtually all advertising messages and media use to date.

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The next stage in the process is media, that's a fourth M.

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The question to be answered here is, which vehicles will be used in the campaign? This
is executional. There are many types of media and messages available. We need to
determine which media fit the target segment and how should the media be scheduled.
An appropriate understanding of the advantages and disadvantages of each type in
relation to the objectives of the campaign is crucial. Only after media and message are
chosen should the budgeting and definition of metrics of evaluation be made. The
financial elements of this 6 M's are money and measurement. Final two, M's.

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First, money. How much will be spent on the campaign?

Money and measurement deal with how much money to budget and determining
whether the spending will pay off. Some firms have communication budgets by first
defining the available money and then deciding what can be done with it in what is
termed the top-down approach.

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P&G, the largest advertisers were budgeting $6.8 billion for its advertising campaigns
worldwide in 2018.

A example of top-down is fixing budgets based on the ad to sales ratio.

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P&G's ad-to-sales ratio was 11.4 percent.

As a basis for comparison, a study revealed that average ad-to-sales ratio in the US of
20 percent for cosmetics and toiletries, nine percent for food and confectionery, and
three percent across the top 200 industries.

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The final M in the process, measurement,

how will impact be assessed after the campaign? This is a very vexing question. In
measuring the results of a campaign, there are three principles to follow. First, measure
what matters not what is available. Second, measure what is directly related to the
purpose of the campaign, and third, measure the full impact, both direct and indirect of
the campaign.

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First, measuring what matters.

Albert Einstein once said, "Not everything that counts can be counted. Not everything
that can be counted, counts."

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I like that quote, in evaluating the effect of marketing communication many times what
matters is difficult to measure. Managers use available measures as proxies for what
should be measured. For instance, measures of consumer preferences such as brands,
consumers display a preference for, are known to be leading indicators of purchases.

Number 2, measuring relative to purpose.

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Measuring advertising effectiveness has two-dimensions; size of the audience and


depth of the impact.

Size of the audience is the key dimension for traditional media advertising.

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A common measure used to summarize the size of the audience

reached is a cost-per-thousand impressions, the CPM, as it's known.

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For example, if a TV show with a 30 second ad costs a $185,000 and has 10 million
viewer impressions, the CPM or cost-per-thousand, is computed as $18.50. Digital
media on the other hand, if used with potential to generate two-way communication,
requires a more than just a number of impressions to be compared on a cost basis.

Measuring depth of impact is also important.

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A metric that captures this two-way interaction or engagement of the consumer with the
advertised content should be used.

Third, measuring the full impact,

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measuring the return on investment, the ROI, of a campaign is challenging, particularly


if it involves multiple media. The reasons are that different media should be used for
different objectives and therefore should be assessed using different metrics. This often
inhibits the use of a common metric.

One exception is the use of advertising elasticity. The percent change in sales that
corresponds to a one percent change in advertising spending as a common efficiency
metric.

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Academic research has found that the average elasticity to be 0.11 percent for ad
campaigns here in the US. With no measure, you wouldn't know for sure if an ad is
working. Marketers can take multiple measures to get the best indication, but
sometimes they only take the one you care most about. The different measures include
things like copy testing, growth, changes in market share, awareness, and the popular
metric, the after recall. In advertising that's what we use the most in the 1990s and
2000s. These are the steps in developing a communication plan, the 6 M's.

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Lesson 4-7: Is Your Advertising Effective?

Lesson 4-7.1: Is Your Advertising Effective?

Academic research has demonstrated that businesses can learn a lot from which ads
resonate with the audience.

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Researchers have developed a strategic academic framework known as ADPLAN to


evaluate the effectiveness of advertising and building brand.

The acronym instructs us to grade ads based on different variables:

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attention, distinction, positioning, linkage, amplification, and net equity; ADPLAN.

Let's examine the different elements of this framework.

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The first is attention.

First, ads must grab consumers attention, must pull them in. Attention or lack of
attention can often aid or hinder recall not only of the advertisement but of the brand
and its position.

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The second is distinction.

The ad grabs your attention, but then what? Does it stand out among the clutter? Or do
you say, I've seen this before? It must be distinct.

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The next element in the framework is positioning.

Advertising executions can be evaluated with respect to whether they clearly convey the
frame of reference. That's the category that brand is as competing, and the point of
difference, how the brand is superior to competitors. This point of difference must be
clear in the advertising.

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Next is the L, linkage.

The customer must be able to link or connect the ad to the brand and the brand
benefits. Sometimes after an ad is viewed, consumers do not even remember the ad
that was displayed nor the benefits advertised. This must stick with consumers after an
ad is shown.

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The next stage is amplification.

After viewing the ad, does it stick with you? The ad, that is. Do you think about it at all?
Do you tell anyone about it? Or as is the case with my daughter, do you post it on
TikTok or Instagram?

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Next is net equity.

Does the ad build on the existing brand equity? Is it consistent with previous brand
positioning? Does it lead to additional positive brand associations? Now, that's ADPLAN
framework and that works well. However, based on my experience and my years in
advertising and as an academic,

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I have added an element to this framework. Emotion.

Researchers who conducted research with the Mars Candy Company used facial
coding to understand the relationship between emotional ads and sales effectiveness.

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Good ads solicit strong emotion, happiness, surprise, even sadness at times.

They found that the more emotion you can get out of consumers,

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the greater their level of engagement and the more sharing behavior they exhibit, then
the greater their level of recall.

If the ad generates emotion that will result in positive links to a brand, then it should be
rated highly on this metric. For example, you may feel a sense of sadness watching the
ad. But if this sadness results in a positive connection to the brand itself, then the ad is
effective.

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We have to add emotion to this framework. The new acronym is now ADPLANE.

A for attention. Does the ad engage the audience? D for distinction. Is execution unique
in delivery? P for positioning. Is the appropriate category represented with a strong
benefit featured? L for linkage. Will the brand and benefit be remembered afterwards? A
for amplification. Are your thoughts favorable? N for net equity. Is the ad consistent with
the brand's history and reputation? E for emotion. How does the ad make you feel?

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Lesson 4-8: PR, Events, Sponsorship and Sales Promotion

Lesson 4-8.1: Personal Selling and Public Relations

We've talked about advertising and how you can evaluate advertising using ADPLANE.
Now, let's examine some other elements of the promotion's base.

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Let's start with personal selling. Personal selling involves direct communication between
a salesperson and potential customer

and typically happens in-person, over email, phone, or even video. It's most useful
business-to-business selling. Although it's also used in retail when the product is
complex, like high-end electronics or photography equipment or when it carries a great
deal of risk.

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For example, purchasing expensive car like a Lamborghini carries financial risk. This
type of purchase would involve personal selling.

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Let's discuss personal selling in a business consumer environment a little bit more.
Some companies will find it uneconomical to focus on personal selling to individual
consumers since this is very costly. However, with high-value products or products that
are complex and require a lot of demonstration or explanation, the resulting sales could
justify the expenditure and qualify salespeople. Why use personal selling? As we said,
this form of promotion is an excellent tool when selling complex products. Companies
that sell complex products must be able to demonstrate or explain products to potential
customers and answer questions or queries. Sales representatives can present
products in a logical way, focusing on the specific benefits that are relevant to the
consumer. Representatives use their experience to gauge a prospect response to their
sales pitch and they adjust their presentation to individual prospects, levels of
understanding, or interests.

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Companies use personal selling when they offer very high-priced products,

such as expensive cars and jewelry, for instance. When consumers pay a lot of money
for a product, then they might have some measure of dissonance during the purchase
process. You know that nagging feeling, am I making the right choice? So they must be
persuaded. Salespeople must provide these consumers with specific reasons why the
product will provide them with value for their money. Why should this Lamborghini be
worth $450,000 to you? Well, here are the reasons why.

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To build long-term revenue for the future, representatives use personal selling skills to
develop strong relationships with customers

by contacting customers after they make a purchase, for example, representatives can
demonstrate that their company offers high levels of customer care. They also maintain
contact between sales to ensure that customers consider their company when they're
planning their next purchase. Personal selling certainly has its advantages. The next
element of the promotion's mix is public relations.

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The Public Relations Society of America states that public relations is a strategic
process that builds mutually beneficial relationships between companies and their
different publics that they serve.

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Public relations professionals are in the persuasion business. They want to convince an
audience to promote their idea, purchase their product, support their position, or
recognize their accomplishments. Unlike traditional promotion efforts though, they
persuade their external-internal audiences via unpaid or earned methods. Whether it's a
traditional media, social media, or speaking engagements, they communicate with their
audiences through trusted, not paid sources. Public relations or PR, for short, PR
professionals are storytellers. They create stories to advance their agenda.

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PR can be used to protect, enhance, or build reputations through the print or

traditional media, social media, or self-produced communications. A good PR


department will analyze your organization, find the positive messages, and translate
those messages into positive stories. When the news is bad, they can formulate the
best response and mitigate the damage.

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What is the major difference between advertising and public relations? It is said that
advertising is what you pay for.

When a message is perceived to have come directly from a company, it is trusted less
by consumers. A company story has more credibility if it were independently verified by
a trusted third party rather than purchased, which is the case with advertising.

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There are several major differences between advertising and public relations.

The most important being the fact

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that public relations is earned, as we said, and advertising is paid. So consumers trust
public relations. Also though, placement and media isn't guaranteed if I wanted a public
relations piece in the newspaper. Remember, you aren't paying these third parties to
print what you tell them.

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So it is less expensive than advertising, which is a big plus but you would not have that
editorial control. The third party could write whatever they want. To better understand
how public relations works, this is what Crosby Noricks, a fashion blogger, wrote.

"Implied third-party endorsement by an editor can carry more credibility among potential
customers."

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For example, let's imagine a young professional woman flipping through a fashion
magazine. A full-page advertisement from Diane von Furstenberg featuring a versatile
back-to-work dress may have less impact on that professional woman, that if a fashion
editor list the dress as a fall must-have for work clothing, noting the versatility of the
outfit.

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The idea here is that, "The editor is a fashionable, industry expert, and as such, that
editor wields a greater influence on the professional, flipping through the magazine for a
dress she could wear to her job interview next week."

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Earned media versus paid media. In the digital age, public relations does require a
slightly different approach. Given how much existing and potential customers use
internet sources, this places even greater importance on your website and social media
presence. You must have an accessible and notable social media presence. PR will
land you in the traditional media, but your target audience then wants to connect with
you on all the social media channels they love the most. If you aren't making yourself
available for meaningful connection on these platforms, you're not taking advantage of
the credibility that PR-generated media coverage has planted for you. Given the
fragmentation of media, we should note that PR efforts today must be much more
comprehensive and consistent than before.

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Research by O'Neill and Eisenmann found that consumers actively seek out multiple
online sources to verify claims in their effort to reduce the uncertainty about a new
product decision.

These researchers believe that public relations practitioners should focus less on the
perceived credibility superiority, or effectiveness of one source compared to another
and focus instead on integrating consistent messaging across a wider spectrum of
sources for maximum effectiveness.

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They found that independent bloggers were seen as especially authentic.

The research participants explained the importance of authenticity to the assessment of


channels. They explained that bloggers earn media and or endorsements from people
with some credentials. These all enhance credibility, one point to note, negative
comments aren't always a bad thing. Of course, they must be in the minority.
Participants said that negative comments or reviews actually enhance the authenticity of
the story and therefore, affirms credibility.

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A great PR campaign was delivered by CVS. That's US drugstore chain.

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In their attempt to rebrand from CVS to CVS Health, the company launched a PR
campaign that started with dropping all tobacco products. Yeah, they did. The PR
company have developed the CVS Quits, it's called CVS Quits campaign. They actually
won a healthcare campaign of the year award at the 2015 PR Week Awards. CVS
announced that they would be pulling all tobacco products from their stores, even if it
meant losing two billion dollars in revenue. This was a really bold campaign that initiated
a wide variety of efforts, all in that rebranding CVS to CVS Health. It cemented the
company's message of, "Helping people on their path to better health." With the CVS
Quits campaign, the company's stock rose by 9.2 percent in three weeks and garnered
over a 129 million media impressions with a 117,000 posts on social media in the first
week. The great majority, of course, were positive. Now, this type of earned media was
exactly what the company was hoping for. A real example of putting your money where
your mouth is.

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Lesson 4-9: Sales Promotion & Digital Marketing

Lesson 4-9.1: Sales Promotion & Digital Marketing

The next element in the promotions mix is sales promotion.

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Sales promotions are a great way for your organization to encourage potential
customers

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to buy your product or sign up for your service. This usually meant to boost short-term
sales. However, they can also attract new customers, prompt positive online reviews,
and sometimes lead to repeat purchases. A sales promotion is applied for a pre-
determined limited period with the intention of increasing customer demand and
stimulating sales. Sales promotions give potential customers an additional reason to
consider doing business with you and your company. By encouraging potential
customers to take that first step and try your product, marketers believe that they would
then be happy enough with the results and would be willing to spend more of their cash
on your product in the future. Companies must be very strategic about how they offer
sales promotions. Customers are looking for offers that are personally relevant, and
they want to feel like companies they engage with truly understand them as individuals.
They want this level of customer engagement across the entire customer journey.
Falling short of expectations could mean losing customers or attracting negative reviews
and potentially damaging your brand's reputation.

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Sales promotions include limited trial periods, discounts, special offers, free shipping,
branded gifts, loyalty programs, or digital coupons.

Offering a discount is a tried and true way to win over customers, boost sales, and
actually move stock. That's a widely used sales promotion.

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Not only do 77 percent of shoppers say discounts can influence where they shop,

almost half of them, 48 percent of them, admit that a discount has actually sped up a
purchasing decision.

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I love myself some discounts. Discounts can be limited to a specific point in the
customer journey. For example, the first online order, the initial order, or it could be a
seasonal or holiday promotion. Consider an alternative such as offering a special price,
for example. Nothing over $20 in the store or a buy one, get one deal. It's known as
BOGO, buy one, get one.

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If your goal is customer retention rather than a short-term sales boost, your company
could provide reward points.

Reward points don't offer the possibility of immediate gratification like discounts do, but
they will appeal to customers who shop with you on a regular basis.

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According to Bond Brand Loyalty, 66 percent of loyalty program members modify their
spending to maximize the benefits they receive.

Advances in mobile technology now means that customers can collect and store their
points in an app or a digital wallet, for instance, on their smart phone.

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They're then able to access additional features as well. Coupons, another promotional
tool that have been transformed by technology.

Your company can send these coupons directly to customers via email or text message.
I'm sure you've received some.

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You can use them as an inducement to join a mailing list or as a thank you to people
who have joined. Since customers value personalization, these are a great tool to
achieve that goal. You can personalize them based on a customer's browsing or
purchasing history, or use them to remind customers about an abandoned shopping
cart. What's more, customers love them. For example, mobile coupons delivered via
text messages not only led to more purchases, they also created a sense of urgency.

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Twenty-five percent of people who receive coupons via text message redeem them
within three days. Sixty percent redeem them within a week.

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Sampling is another great promotional tool. Sampling works well with products such as
health and beauty products, perfume, and my favorite, food. Offering a gift to
consumers who buy a specific product or spend a certain amount can also help
convince customers to make a purchase or spend more than they might have
otherwise. I can't tell you how many times I've walked around warehouse club stores
like Costco or Sam's Club on a Saturday and sampled many different types of food. A
lot of times end up buying items that I didn't intend to buy initially, so it worked on me.

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The final element in the promotion mix is direct marketing.

Direct marketing allows businesses and organizations to communicate directly with


customers through a variety of media. The overarching goal here of a direct marketing
campaign is to persuade consumers to take an action that results in tangible,
measurable results, such as a purchase, a sign-up, or request for more information. A
key factor in the success of any direct marketing campaign is what the people in the
industry refer to as a call to action.

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That means direct marketing campaign should offer an incentive or some enticing
message to get consumers to respond,

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which really means to get them to act. A successful direct marketing campaign usually
offers consumers a benefit whether it's money off their next purchase, a limited time
coupon, or for a non-profit, an invitation to an event or discounted membership.
Traditionally, direct marketing included media such as direct mail, catalog, direct
response television ads, and telemarketing. Having the digital age, new and more
effective means of reaching consumers have been developed. One of the strengths that
is attributed to digital marketing is the ability to acquire precise, targeted data. With
sophisticated technology, marketers can contact specific targeted consumers to create
effective and relevant, that word again, relevant ads and timely tangible experiences
between the consumer and the brand. As we stated earlier, customers truly value
personalization. This has been known to boost response rates and through targeted
data, marketers can now personalize most direct marketing efforts. Further, to increase
the experience, the interaction will have a call to action for the consumer to explore
online, inviting the consumer to interact with the brand once again, in the digital space.

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Direct marketing efforts include things like mobile advertising, social media, website,
and even email. Of course, the type of medium used will depend on the audience and
the type of product being sold. For instance, a product targeted to a younger audience
like my teenage daughters, would use mobile advertising on their phone via an app like
Instagram or TikTok.

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Recently though, due to privacy concerns, digital marketing was thrust into the spotlight
and there was actually a move to get consumers off of social media sites altogether.

But these sites have rebounded and sites like Facebook are still very popular with the
general public.

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These different elements of the promotion mix must all work consistently together for
any company to have a successful promotion strategy. Only then will you be effectively
able to acquire, satisfy, and retain customers, being profitable in the long run.

Now, we have come to the end of this course.

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I hope you are able now to implement a marketing mix for growth at your company or at
a business that you may run. As we close, I want you to do one thing as we end that
would enhance your chances of success at your job or running your business. It could
be reading a book, a series of articles, connecting with someone influential on LinkedIn.
Connect with me for instance. Do something to move that success meter forward. I'd
like to end by saying, as always, I want you all to go out into the world and be
successful. Ciao.

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Professor Noel's Board Walk: Evaluating Advertising

Professor Noel's Board Walk: Evaluating Advertising

Now let's put the plane to work these commercials I'm about to show. We're actually
shown during the Super Bowl which is held annually in the USA is the culmination of the
American football season. When the best two teams play against each other. This is
one of the most watched sporting events in the USA. Some say the world since this
event has millions of viewers. Most companies invest a lot of money and creating ads to
screen during this event. Let's view three commercials. That first screen during the
Super Bowl, this first one was from Super Bowl 2021. Get out your ad plain rating sheet
rape. The ads on each variable on a scale of one straight through two [SOUND] Seven.
Let's see the ad.

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[MUSIC]

So what we're ratings. Let me write mine down.

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[Silence]

Now lets you add number two.

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[MUSIC]Mrs. long. Yes, We found a baby girl for your adoption but there's some things
you need to know. She's in Siberia and she was born with a rare condition. Her legs will
need to be amputated. I know this is difficult to hear her life. It won't be easy. [MUSIC]
Mrs. Long. It might not be easy but it'll be amazing. I can't wait to meet her. We believe
there is hope and strength in all of us. Toyota, proud partner of Team USA.

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This screen during Super Bowl 2021 again. Use your at plain rating.

[Silence]

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Finally add number three. This was from Super Bowl 2016. How do you rate this ad?
Pay attention.

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Man, I might just chill tonight. [SOUND] Puppy monkey baby, puppy monkey baby
puppy monkey baby. I'll be your baby, puppy monkey baby baby baby baby baby baby
baby, mountain dew kickstart. Do juice caffeine.

That was a pretty interesting ad.

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[Silence]

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Well as from creating I redid the first two somewhat highly, but I did not really like the
puppy monkey baby at this ad was a spoof on some Super Bowl ads. Many of the ads
are said to have either puppy amongst your baby since they're trying to touch people
emotionally. Now that you've evaluated these three ads, you can see how useful to like
add plane would be. Whenever you view a commercial, you don't need to rip out the
entire framework, but think about the different elements and how they apply to that
specific ad. Does it grab your attention? Is there a linkage? Will the brand of benefit be
remembered? And finally, what about amplification of yours? Thoughts favorable. I don't
want you to watch a commercial the same ever again. Even if you enjoy the
commercial, that is not enough. You need to determine if the commercial will be
effective and will deliver for the brand.

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Discussions with the Experts Steve Raquel

Discussions with the Experts Steve Raquel

Well, today we're in beautiful Chicago Downtown, near the river and near the Willis
Tower. It's a wonderful summer's day and we're here with Professor Steve Raquel, who
is actually an instructor at the Gies College of Business. He worked with several
different faculty in our online programs. Tell us a bit about yourself, Steve.

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Well, thank you for having me. I'm Steve Raquel, I'm the Clinical Associate Professor at
the University of Illinois and Gies College of Business. I'm excited to be here and I'm an
Associate Director in the marketing class, in the digital-analogue class, and the
creativity class, and hopefully some more.

Great. Can you tell us a bit about your practical experience?

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Sure. In the business world. Absolutely. I'm also the president of IOV Media, which I
started about 10 years ago. That agency was born out of the start of the social media
age, probably the late 2000s. I've been working with small and large businesses, both
profit and non-profit, to help them understand and guide them through the ever-
changing roles and ever-changing world of digital and social.

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That's great and that's really necessary. But as president of IOV Media, can you tell us
what types of marketing issues and challenges you've had with your clients, route
through?

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Sure. You know what? Since I started the business in 2009, social media and digital in
general continue to change. It is an ever-evolving, ever-changing industry. Whatever I
started out with 10 years ago, you could see a consistent change as new platforms and
new different ways of doing digital and social. When I started, Facebook just started
with Pages, and now we're getting into programmatic. Now we're getting into doing
things like Clubhouse and audio, and it continues to evolve. I have to stay ahead of the
game in order to guide my clients to understanding when and if it's important to utilize
these new platforms in order to maximize their social media, their digital presence.

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Well, that's great. One of the things that students would be interested in would be with
regard to strategy, the segmentation, targeting, and positioning. How important is
positioning in the whole marketing strategy process in your view?

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I think it's fundamental. I say that in a really big senses that I'm a small business and I'm
not a large agency. I have years of experience, and doesn't matter if you're a large
business or startup, positioning is important. Let me give you an example. I brought
here the face mask that I wore today. Now in many ways, well, if you think about
positioning, this is just a face mask. Just any face mask, anybody can get this. But when
you position it well, you have the ability to create this face mask to be in the mind of the
consumer completely different than any other face mask out there. In that, if you
position it even better to make it very distinguishable, you could put a specific price
point to it. This face mask, if it's done well, in the mind of the consumer has value
whether it's real or perceived, could be worth $500, it could be worth 100 bucks. The
thing that I tried to tell all my clients and things I try to teach all my students is that you
have to distinguish yourself. You can't just be like everybody else. When you position
yourself, your company, your brand, it can really help you in the mind of the consumer
and the way that people perceive you, and the way they think about you very
specifically in your favor. They won't think about anybody else in the way they think of
you and that's really important. The sooner you can do it, the better you will be as a
brand.

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Well, that's wonderful. When putting together your communications plan, how do you
decide on your overall objective?

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I've worked with both profit and non-profit companies. Every company, doesn't really
matter, has a different approach. It really starts with, what is the purpose of the
company, is it to make money? Is it to make donations? Is it to get more awareness?
Within those, there can be a little bit of different combination. I work with currently a new
startup, and there's a combination of objectives to awareness because we're a startup,
people don't really know us, and to get new subscribers. So, we have to start there, I
take the positioning who we know and then, I then craft messages that either address
the awareness or addresses the usage. When I'm able to do those, there's different
ways of doing that and then determine and as the company grows, I may change the
message out, but I'm still using the same positioning statement.

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Wonderful. Can you tell me, how do you find out where your target market is, and what
the media habits are because that's a critical piece in developing this plan, correct?

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Yeah. Finding the target market for your product or service is critical. I'm a small
business, I work with small businesses and some large businesses. So we don't have
millions of dollars to do the segmentation studies and all of those things. In many ways,
you have to lean on the platforms and their internal ad engines to help you. Many of
these have gathered all the information already. For example, for Facebook is, if I'm
working with a non-profit, I can find similar targets or similar groups of people based on
other non-profits around there. That's in the best interests of many of these platforms
because if they can give that to you, you're going to spend money. For many of our
clients, is we use that route and sometimes a little different from one platform to the
other but generally, many times I go backwards a little bit. We have an assumption of
who our target market is based on the type of person who already is engaged with us.

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That's a good answer, I like that, and you spoke about Facebook. How do you decide
which channels to use and why?

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Yeah, channel combinations in developing good communications plans are important


but I will tell you in many ways, you do have to experiment a little bit. There are
platforms you just don't use for certain reasons. If you're targeting young people, you
probably aren't going to use Facebook as much as you would Instagram. If you're
targeting women, you may well use Pinterest a little bit more than Twitter, depending.
There are some inherent things that just in general, that you see trends in terms of
usage and so you have to find that combination and you have to determine your product
or service. Does your product or service have to have a visual element in it? If it does,
you're going to have to use much more not only visual, but you'll lean harder on the
YouTube's, the Instagram in the world and Facebook video. If yours are information
minded then you're going to use more information minded, which is usually Twitter,
LinkedIn, and those type of things. There are things as a professional that I know,
others you're going to have to test it out and see what works. The great part is you don't
have to spend a lot of money to do. Usually if you've done it right, then you'll see
immediate reaction and effectiveness.

154
Marketing Management II
Professor Hayden Noel

You spoke about something, being more informational and going on LinkedIn and so
on. When you're crafting your message, how do you go about creating the message and
how do you implement that on these different platforms?

155
Marketing Management II
Professor Hayden Noel

Sure, I like looking at it as if I was a new graduate and I am interviewing all different
places. What I tell my students is, you have one resume, but every time you talk to a
different place, they may be an agency that works with B2B, one may be non-profit, one
may be consumer. I'm not telling the exact same story to each one of them. I'm telling a
story that makes the most sense to that industry. It's important when we are going in
crafting messages that those messages on each one of them, I'm the same person but
for each one of those platforms, that message is tweaked a little bit to maximize the
effectiveness on Instagram, on Facebook or on Twitter. Whether Instagram has the high
use of hashtag's, while Facebook you're going to use a little bit more video and it'll be a
little bit more conversational. Again as we said before, positioning tells you the story.
You have the same story, that doesn't change. The way you tell it, the words that you
use on these different platforms makes a huge difference. You can't tell the same story
on platforms that don't receive that message the same way.

156
Marketing Management II
Professor Hayden Noel

It's wonderful. I always say, nothing beats a great story when it comes to a brand. So
Steve, thank you so much for being here with us today and a wonderful day in
Downtown Chicago and we really look forward to seeing you again.

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