Advanced Marketing Management (Mazzù) notes

MAKING THE VALUE AVAILABLE AND ENGAGE THE CUSTOMER

PromotionTrial: it is a way to persuade consumers to try a product/service for free for a limited period of time, it encourages consumers to use for the first time a product. Mainly used when projecting sales for relatively new products.

Trial Rate (the % of a defined population that purchases or uses for the first time a product first timetriers∈ period t( )=tr i alrate % total population

Penetration: measures the number of customers in the current period

Penetration in t = (penetration in (t -1) x repeated rate in period t) + first timetriers in period t

First time triers = Penetration – Repeat Customers(working on volume):

Non-Standard: promotions temporary and limited to a certain group of customers or distribution channels.

Response oriented: promotion that seeks the consumer response (usually with samples or trying new dealers) doesn’t aim at the instant sale

Benefit oriented: promotions offering extra benefits

(added item or reduced price...) Promotion Effectiveness Index: it is an index which assesses the effectiveness of each promotional activity confronting the baseline sales to the total sales made.

PEI= (total volume / Baseline Volume) x 100

Additional indicators:

Unit Margin = price with promotion - cost for retailers

Net profit (with promo) = sales with promo x unit margin + incentive to retailer

for promo

Net profit (without promo) = sales without promo x unit margin

Net incremental profit = net profit (with promo) - net profit (without promo)

Growth Hacking: it is a process of experimentation across the marketing funnel, product development and other areas, to understand how to make the business grow rapidly. Widely used among start ups, the tools used are low cost marketing tools like social medias. Ex: Hotmail when early users send an email there is a direct link to set up the account for the receiver no costs, high efficiency. (t-1)Value

t-Value Year on Year Growth (%) Value(t-1) ( )

1ending value -1Compounded Average Growth rate (CAGR) = n ° of yearsbeginning value

Projections of Sales: usually used in the early stages of product development, thanks to these costs can be cut from a full product launch.

Projection of sales = penetration x frequency of purchase x units per purchase

Attract Customers Attention to generate Awareness and Engagement

Public Relations effects: promoting a better knowledge of the identity elements, creating a positive mental association, forming stakeholders expectations good reputation (showing the values of the company and building trust in consumers. These vary depending on the sources, the communication models and the ways through which it can be realized. PR are fundamental to: build a company image, product repositioning, launching a new product and crisis management. They can have different functions: relations with the press (media info to attract), product

propaganda (activities to promote), relations with Public Administration, Lobbying (maintain relations), relations with investors (with shareholders and other representatives), development (activities with supporters of non-profit organizations).

Examples: Patronage (mecenatismo), Sponsorships, company's museums.

Sponsorship: paying a monetary value in return for having access to gain the highest commercial potential from the sponsored event or property (important to develop brand image and awareness it creates an emotional bond with consumers). It also affects Brand Equity: the meaning of the product becomes more than just a concrete product, improving the corporate image and the awareness. The benefits are: reaching the target markets, brand positioning, and increasing sales.

How Sponsorship builds brands: mobilizing the organization for brand building (arising pride for being associated with that sponsorship), providing an experience for customers (an intense level of loyalty can be

Created during an event), demonstrating new products or technologies (introducing new stuff with an event is the best way to go public), creating brand exposure, developing brand associations (associating it with an event the brand believes in), become part of an event/customer bond.

Effective sponsorship: clear communication objectives, proactivity, a good fit, own sponsorships, exploiting the multiple sponsorship payoffs, actively manage the sponsorship.

Ambush Marketing: a marketing strategy that exploits major events and aims at creating an association with the event without being an official partner (competing for exposure in a wise way). It also reduces the attention on the official sponsors. ex: Nike setting up ads and shops around the sports centers for the Olympics, while Reebok was the official sponsor (it looked like it was Nike).

Guerrilla Marketing: a non-conventional advertising that aims at surprising or using unconventional interactions to attract the attention of the viewer.

• Temporary Shops and Flash Mobs: temporary shops benefits: bringing customers form online to offline, reach customers where they are, unload old inventory, test new products… flash mobs: image benefits and social coverage.
• Events, Special days and Anniversaries: like black Friday, cyber Monday, panic Saturday (day before Christmas).
• Third-party endorsement plan (connected to RTB): influencer marketing.
• Join the community plan.

creating communities. They can be strongly connected with a central figure, be part of a pool where there are shared values or a community with strong one-to-one connections like Facebook. Product Placement: an non-traditional advertising where a brand put its product in a film, series or other kind of media and the media company receives an economic benefit. (ex: vans shoes in squid game). Increasing awareness, building exposure and promoting products, target specific audiences… First time trials Promo tools: samples, coupons, cash refund offers, premiums (gifts), frequency programs, prizes, patronage awards, free trials, product warranties, tie-in promotions, cross-promotions. Point of Market Entry (POME): it is a point where a potential consumer becomes aware of your offering, it often happens when a consumer is entering a new category. the main objective is to become the reference brand (getting the attention as soon as possible). It can be done through web advs, targeted emails,events…In-Store product trial and test drives: both of these tactics are very important as in store are made the final decisions. In store there are the final touchpoints and the consumer is nearer to the purchase of the product. Comparative tests: it is a technique that compares competitors' products on measurable attributes (convening for the brand). the brand claims the superiority. Growth Options: Cross-selling (selling other products or services related to the product of interest trying to exploit marketing initiatives ex: zymil try the sugarless milk in a normal milk bottle), (trying to sell the version of the product of interest with additional values or different characteristics) and Trading-up (customer's adoption of higher value products) INTEGRATED MARKETING COMMUNICATION (communication) The potential value of products thanks to communication is transformed in real value (the perceived value) tied both to tangible and intangible. It is fundamental to

Choose a significant interlocutor to communicate the brand's values. It is not important what's said, it is important what is understood from the consumer (if not going well it's the company's fault for not properly interacting with the audience).

Total Corporate Communication (TCC) - the components of communicative business action: Tangible Elements (what the company concretely shows), Verbal Communication (what the company says ex. Advs, press release), Behaviours (what the company does ex: management style, csr), Products (what the company produces). Required consistency in communication.

Delivering memorable campaigns: identify insights that the brand can leverage and try to make the message remembered; the brand must be recognized (easy to process but also distinctive from the others), and finally focus on people (give the solutions they want).

Types of media: television (pros: high coverage, high penetration, cons: expensive, low target selectivity); newspaper

(pros: influential, frequency of contacts (loyalty for newspapers), cons: poor print quality and expensive); magazines (pros: selectivity and good print quality, cons: high cost, long technical times); radio (pros: friendly approach and adaptability of messages, cons: low coverage, the message may be not clear); outdoor ads (pros: geo selectivity, high impact and near of points of sales, cons: high costs, generic target audience) better work if they combined. Make the viewer the protagonist (make the info and the call to action easily available for the customer). Reach is the % of your target audience reached by your campaign (your first KPI). Video Content Strategy: find a way to conjugate the values of my brand and what does the consumer want. Start from creating the content (capture the brand values, set the tone, tell an engaging story), then collaborate with influencers to get higher visibility, and finally curate the video and make it interactive with consumers (participation of the)use they recognize the benefits of working together. This system allows for better coordination, efficiency, and control over the distribution process. Intensive distribution: a strategy where a product is made available in as many outlets as possible. This is commonly used for low-priced, everyday products. Selective distribution: a strategy where a product is made available in a limited number of outlets. This is commonly used for products that require more specialized knowledge or have a higher price point. Exclusive distribution: a strategy where a product is made available in only one outlet or a limited number of exclusive outlets. This is commonly used for luxury or high-end products. Online distribution: the use of the internet and e-commerce platforms to sell and distribute products. This has become increasingly popular in recent years due to the convenience and accessibility it offers to customers. Physical distribution: the activities involved in getting a product from the manufacturer to the end consumer. This includes transportation, warehousing, inventory management, and order fulfillment. In conclusion, distribution channels play a crucial role in making products and services available to consumers. The choice of distribution strategy depends on various factors such as the nature of the product, target audience, and marketing objectives.