Contemporary marketing

Week 2 marketing communication strategy based on brand evaluation

 Brand: name, term, symbol, or combination that identifies a seller’s products and
differentiate them from competitor’s products
 Brand name: part of a brand that can be spoken, including letters, words, and numbers
 Brand mark: elements of a brand that cannot be spoken

Benefits of branding
Product identification
 Brand equity: Value of a company or brand name
 Global brand: Brand that obtains at least one-third of its earnings from outside its
home country
 Band loyalty: consistent preference for one band over all others
New product sales and repeat sales

Individual brand versus family brands

 Individual branding: using different brand names for different products
 Family branding: marketing several different products under the dame brand name

Manufacturer’s brand VS private brand

 Manufacturer’s brand: A brand owned by a manufacturer. Sometimes, manufacturer’s
brand is interchangeable with national brand.
 Private brand: A brand owned by a wholesaler or a retailer. It is interchangeable with
private label or store brand. (They can compete with those national products)

Advantages of carrying manufacturer’s brands

 Heavy consumer ads by manufacturers help build consumer loyalty
 Well-known manufacturer’s brands attract new customers and enhance dealer’s
prestige
 Manufacturers offer rapid delivery, enabling the dealer to carry less inventory
 Loyalty to dealer

Advantages of carrying private brands

 Wholesaler or retailer can earn higher profits on its own brand
 Manufacturer can drop a brand or a reseller at any time or even become a direct
competitor to its dealers
 A private brand ties the customer to a wholesaler or retailer
 Wholesalers and retailers have no control over the intensity of distribution of
manufacturers’ brands

Segmenting, targeting, and positioning marketing

Markets are broken down into segments
 Segment: Group of potential customers
Segments are targeted
 Target: Focus with advertising and integrated brand promotion
Brands are positioned
 Positioning: Attempt to give a brand
  Positioning: influences potential customers’ overall perception of a brand, product
line, or organisation in general
 Perceptual mapping: means of displaying or graphing the location of products, brands,
or groups of products in customers’ minds
 Repositioning: changing customers’ perceptions of a brand in relation in relation to
competing brands

Essential for effective Positioning Strategies

 Deliver on the promise
 Consistency (deliver the same information)
 Simplicity and distinctiveness

Positioning bases
 Attribute
 Price and quality
 Use or application
 Product user
 Product class
 Competitor
 Emotion

Perceptual mapping:
Attitudes: multi-attribute models
Week 3
The consumer decision journey
Classic journey
New journey

What are the implications of psychological reactance theory? Freedom threatening

What are the implications of Endowment effect?

Consider – evaluate – buy

Cognitive – affective – conative

Eliminating the consider and evaluate phase

 Automation: Streamlines journey steps
 Proactive personalization: uses information to customize the customer experience
 Contextual interaction: uses knowledge about the where customer is in the journey to
deliver them to the next set of interactions
 Journey innovation: extends customer interactions to new sources of value

Main factors influence your decision

Psychological factors

Factors determining the level of customer involvement

 Previous perception
 Interest
 Perceived risk of negative consequences
 Social visibility (show your social stand and state for yourself)
Topic 5 Marketing communication in not-for-profit organisations
Questions
 What are the implications of UNAAWA Quest Speech in regarding marketing
practices for not-for-profit organisations?
 How would B2B marketing framework, particularly sponsorship and relationship
marketing, assist not-for-profit organisation marketing practices?

Business Marketing
 Marketing of goods and services to individuals and organisations for purposes other
than personal consumption

 Called industrial, business-to-business, B-to-B, or B2B marketing

 Example – sale of a PC to a college university

Business and consumer Products

Business products
 Are used to manufacture other products
 Facilitate an organisation’s operation
 Are resold to other customer
Consumer products
 Are bought to satisfy an individual’s personal wants and needs

The key characteristic distinguishing business products from consumer products is intended
use and not physical form.

Trends in B-to-B internet marketing

Ways in which B-to-B firms use in internet
 Use company websites to facilitate communication and orders
 Use digital marketing to increase brand awareness and to position their businesses as
thought leaders so as to generate sales leas
New applications provide additional information about customers
 Help lower cost, increase supply chain efficiency, or enhance customer retention,
loyalty, and trust.

B-to-B markers use technology to facilitate orders and enhance customer experiences
 Through use of smartphones and tablets
Firms use social media attract customer to their website
 E-mail marketing, search engine optimization, paid search, and display advertising

Content Marketing
 Strategic marketing approach focused on creating and distributing valuable, relevant
and consistent content.
 Goal – to attract and retain a clearly defined audience and drive profitable customer
action
Marketers use social media to increase awareness and build relationships and community
  Creating compelling and useful content for customers is key to social media-based
content marketing.
Growth of platforms, such as mobile and streaming video, necessitate development of new
ways to increase campaign effectiveness

Metrics that are useful for increasing the success of a social media campaign
 Awareness – attention that social media attracts
 Engagement – integrations between brands and audience through comments, retweets,
shares, and searches
 Conversion – Occurs when action is taken

Relationship Marketing and strategic Alliances

Has become important because:
 Customers have become more demanding
 Competition has become more intense
 Business supplier use social networking sites to advertise themselves to business
Steady dialogue between the supplier and the customer needs to be maintained to gain repeat
business.

Cooperative agreement between business firms

Types
 Licensing or distribution agreement
 Joint venture
 Research and development consortia
 Partnerships
Formed to strengthen operations and better compete

Strategic partnership
 A strategic alliance is sometimes called a strategic partnership
 Sometimes alliance partners are fierce competitors
 For an alliance to succeed in the long term, it must build on commitment and trust.

Relationship commitment means: that a firm believes a ongoing relationship with

some other firm is so important that it warrants maximum efforts at maintaining it
indefinitely.

Trust: exists when one party has confidence in an exchange partner’s reliability and
integrity

Relationship in other cultures

Japan, exchange between firms is based on personal relationships developed through indulgent
dependency.
Relationships between companies can develop into a keiretsu
 Keiretsu: Network of interlocking corporate affiliates
Many firms have found the best way to compete in Asian countries to form relationship with
Asian firms
Major categories of business customers
 Producers – Construction, manufacturing, transportation, finance, real estate, and food
service firms
 Resellers – Wholesalers and retailers
 Government – Federal, state, and local buying units
 Institutions – Educational institutions, hospitals, churches, labour union, fraternal
organisations, civic clubs, foundations, and other non-business organisations

Business Versus Customer markets

Nature of Demand in business

 Derived: Demand for business products results from demand for customer products
 Inelastic: Demand for product not significantly affected in change in price
 Joint: Demand for multiple items used together in final product
 Fluctuating: Demand for business products is more volatile that for consumer
products

Type of business products

Major equipment: capital goods such as large or expensive machines, mainframe computers,
airplanes, and buildings
 Depreciates over time and often custom-designed
 Personal selling is an important marketing strategy
Accessory equipment: Less expensive and shorter-lived than major equipment
 Portable drills, power tools, microcomputers, and computer software
 Advertising is an important promotional tool.
Raw materials: Unprocessed extractive or agricultural products, such as mineral ore, lumber
wheat, corn, fruits, vegetable, and fish
 Promotion is always via personal selling, and distribution channels are usually direct
from producer to business user
Component parts: Either finished items ready for assembly or that need very little processing
 There are two important markets for many component parts: The OEM market and
the replacement market
Processed material: Used directly in manufacturing other products and do not retain their
identity in final products
 Sheet mental, Chemicals, and lumber
Supplies: Consumable items that do not become part of the final product
 Fall into categories of maintenance, repair, or operating supplies
Business service: Expense item that d no become part of the final product
 Includes janitorial, advertising, legal, management consulting, marketing research,
maintenance, and other services

Business buying behaviour

 Buying centres
 Evaluative criteria
 Buying situations
 Business ethics
 Customer service
Buying centres
 All those people in an organisation who become involved in the purchase decision
 Number of people involved varies with each purchase decision
 Do not appear on formal organisation charts

Roles in buying centres

 Initiator – suggests making a purchase first
 Influencer/evaluator – help define specification and provide information for
evaluating options
 Gatekeeper – member of group members that regulates the flow of information
 Decider – Person who has the formal or informal power to choose or approve the
selection of the supplier or brand
 Purchaser – Person who negotiates the purchase
 User – Member of the organisation that will actually use the product

Evaluate Criteria
 Quality – refers to technical suitability
 Service – includes pre-purchase, post-sale and dependability of supply
 Price – business buyers want to buy at low prices

Buying situations
New buy
 Purchase of a product for the first time
Modified rebuy
 Purchase involving some change in the original good or service
Straight rebuy
 Purchase of the same goods or services without looking for new information or
investigating other suppliers

Business ethics
Most companies:
 Follow ethical practices
 Offer ethics training to employees
Many companies have codes of ethic that guide buyers and sellers

Customer service
 Beneficial to have a formal system to monitor customer opinions and perceptions of
the quality of customer service
 To ensure superior service, firm must:
Divide customers into groups based on their value
Create policies that govern how service will be allocated among groups
Convergence
- Convergence of advertising and entertainment industries
- Seen with event marketing, a non-traditional
Experiential for of media
Chaos Scenario: Predicted a mass exodus from the traditional broadcast media due to:
 Audience fragmentation
 Consumer’s desire to control their information environment
 Availability of ad-avoidance technology

Event Sponsorship
Marketer provides financial support to help fund and event.
 In return acquires rights to display a brand name, logo, or advertisement on-site at the
event
Media impressions: Creating a metric to judge sponsorship spending to spending in the
traditional measured media

Leverage: Collateral activity reinforcing the link between a brand and an event
Can measure event social responsibility
Can measure sponsor spillover

Provide opportunities for face-to-face contact with key customers

Consumer-event congruity
Occurs when an event sponsor fits a consumer’s image and sense of self.
Event social responsibility: How an event gives back to local community

Guidelines for Event Sponsorship

 Be socially responsible
 Match the brand to the event
 Tightly define the target audience
 Stick to a few key messages
 Develop a plot line
 Deliver exclusivity
 Deliver relevance
 Use the internet
 Plan for the before and after
 Integrate with social media
Relationship marketing in the not-for-profit sector: an extension and application of the
commitment – trust theory

Quotations from the article

 According to Morgan and Hunt 1994, trust and commitment are at the heart of any
successful relationship with customers
 Commitment depends on four variables: relationship benefits, relationship rumination
costs, shared values and trust.
 Trust itself is dependent on three variables: Shared values, communication and
opportunistic behaviour

Concepts
 Termination cost are the financial cost of ending a relationship (i.e., switching and
opportunity cost, dissolution expenses) and the non-financial costs of ending a
relationship (Loss of reputation, aggravation)
 Material benefits included, for example, funders learning from the NPO and receiving
positive publicity from their relationship with it
 Non-material benefits, on the other hand, included the belief that the NPO was making
efficient use of its donated funds and that it was having a positive impact on the people
on the people for whom these funds were intended
 Communication in this study consists of three subscales, as follows: informing,
providing frequent, relevant and timely information to funders: listening, seeking
information about funders’ needs and motivations: and staff interaction, with staff who
are responsive, knowledgeable and passionate about the NPO
 Shared Values are described in terms of statements relating to the participants’
perceptions that an NPO has similar values to themselves
 Non-opportunistic behaviour are represented by statements relating to the participants’
perceptions that an NPO has not taken advantage of them in past

Questions:
What are the implications of Ethical targeting?
 Most companies need to follow ethical practices and offer ethics training to employees.
They need to have codes of ethics that guide buyers and sellers.
 From definition: Target marketing is when a company targets a specific group of
customers for their product or service group of customers for their product or service
through advertising. The groups are organized together because they have similar
beliefs and values, which leads to common purchasing patterns.

 Ethical Target marketing: When business analyse and research consumers to see what
predisposed ways might make an individual purchase a product.
This way they can influence customer through persuading, asking, informing and
advising.
 Unethical: Focusing on target markets that can easily influenced and manipulated

Ethical Aspects of advertising

 Ethics: moral standards and principles against which behaviour is judged
  Border on and interact with social and legal consideration of the advertising process
 Labelling as ethical or unethical behaviour comes down to personal judgement

Truth in advertising:
 Deception: Making false or misleading statements in an advertisement
Difficult to determine what is deceptive
 Puffery: Using absolute superlatives
Considered legal
 Appeal of free gift: Draws a harsh reaction from customers
 Emotional appeals: Neither illegal nor unethical

Ethical aspects of advertising

Advertising to children:
 Promotes superficiality
 Creates values found in material goods and consumption
 Influences demands for everything
Creates child-parent conflict
 Children’s Television Act: Restricts
Advertising on children’s programming

What are the implications of the persuasion knowledge from task 2?

When consumers are able to perceive the persuasive intent from marketers, they tend to
generate coping strategy to resist the persuasive intent

Persuasive knowledge theory

 Targets – those people for whom a persuasion attempt is intended
 Agent – whomever a target identifies as being responsible for designing and
constructing a persuasion attempt.
 Persuasion “attempt” to describe a target’s perception of an agent’s strategic behaviour
in presenting information designed to influence someone’s beliefs, attitudes, decisions,
or action
 To target, persuasion coping behaviour encompasses not only their cognitive and
physical actions during any one persuasion episode, but also any thinking they do about
 an agent’s persuasion behaviour in anticipation of a persuasion attempt, as well as and
after episodes in a campaign
 Consumers’ persuasion coping knowledge enables them to recognize, analyse, interpret,
evaluate and remember persuasion attempts and to select and execute coping tactics
believed to be effective and appropriate

Effectiveness of Persuasion knowledge

Age – supported – persuasion knowledge
 Scepticism
 Beliefs of False claims
Do not influences brand response

Male: the older age they get, the more scepticism knowledge they get.
Male has more persuasive knowledge/advertising information than female
Males has less scepticism knowledge than female

Gender – WOM intension

Females are significantly willing to influence their friend by word of mouth.
There are is no difference in their decision making in the purchase process.

PK is not related to any behavioural intention responses:

 To visit STA store
 To purchase the NZ trip
 To spread the word
Ethical issue in marketing,