Queen Essays

BCOBM222 Marketing in Action Unit 7: Pricing Strategies

Ryan Bytenski (MBA)

BCom., BCom Honors (Cum Laude)., PGDip., M.B.A.

euruni.edu

Pricing Objectives

Video: https://www.youtube.com/watch?v=sF6AMj3H0jg

Pricing Objectives

• Pricing objectives are the goals that guide a company in setting the price of a product or service.

• These objectives are fundamental to a firm’s overall business and marketing strategy, influencing

how products are positioned in the market and compete with others.

• The pricing objectives of a company directly impact its market presence and profitability.

• They determine the pricing tactics, influencing the product’s perceived value and the revenue

generated.

Pricing Objectives: Types

1. Profit Maximization:

• This objective focuses on setting prices to maximize the company’s profitability.

• It involves understanding the market’s price elasticity and determining the optimal price point where

profits are highest.

2. Specific Profit Margin Targeting:

• The goal is to achieve a specific profit margin per unit sold.

• It is suited for products with well-defined cost structures and established market presence.

Pricing Objectives: Types

3. Market Share Leadership:

• Companies aiming for market share leadership set prices to outcompete rivals and dominate market

share.

• This could involve aggressive pricing strategies to capture and maintain a larger market segment.

4. Customer Retention:

• The focus of a customer retention pricing objective is on retaining existing customers and building

loyalty by setting prices that are attractive to repeat buyers.

Pricing Objectives: Types

5. Survival:

• Survival becomes a priority in turbulent markets or during economic downturns, focusing on staying

afloat rather than profitability.

• Pricing decisions in this context focus on covering costs and maintaining viability, often leading to

lower profit margins.

6. Market Penetration:

• This involves setting lower initial prices to attract new customers and gain market entry.

• The long-term goal is to establish a customer base and increase market share, often followed by

gradual price increases as brand loyalty builds.

Pricing Objectives: Importance

• Impact on Market Share and Sales Volume.

• Alignment with Overall Business Strategy.

• Crucial for Achieving Business Goals.

• Pricing Objectives vs. Pricing Strategies.

• Distinction Between Objectives and Strategies.

• Pricing Objectives are the goals a company aims to achieve through its pricing.

• Pricing Strategies, on the other hand, are the specific methods and tactics a company employs to meet these objectives.

• Guide for Choosing Pricing Strategies.

• Profit Maximization: Companies aiming for maximum profits might adopt premium pricing strategies.

• Market Penetration: Contrastingly, a market penetration objective often leads to economy pricing strategies.

Role of “External Factors” Influencing Pricing Objectives

1. Competition:

• The level of competition in the market significantly influences pricing objectives.

• In a highly competitive market, a company may need to adopt more aggressive pricing strategies,

such as economy pricing, to gain a foothold or maintain its market share.

2. Customer Demand:

• Understanding customer demand is pivotal.

• Pricing objectives must reflect what customers are willing to pay, which depends on factors like

perceived value, customer income levels, and price sensitivity.

3. Market Conditions:

• Broader market conditions, including economic trends and industry shifts, also dictate pricing

objectives.

• For example, a company might lower its prices in a recession to maintain sales volume.

Importance of “Internal Factors” Influencing Pricing Objectives

1. Cost Considerations:

• The cost of producing or sourcing a product or service sets the baseline for pricing.

• Pricing must cover costs to ensure sustainability, making cost analysis a fundamental aspect of

setting pricing objectives.

2. Quality of Offerings:

• The quality of what a company offers directly impacts its pricing power.

• Higher quality often justifies higher prices, but the pricing must align with the perceived quality in the

eyes of the customers.

3. Brand Image:

• A brand’s position in the market influences its pricing objectives.

• Luxury brands, for instance, typically aim for premium pricing to align with their high-end image.

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Pricing Approaches & Methods

Video: https://www.youtube.com/watch?v=xQWUm_eHjGk

Effect of Price on Profit

Types of Pricing Methods and Strategies

1. Penetration Pricing:

• The penetration pricing strategy consists of setting a much lower price than competitors to earn

initial sales.

• Pro: Market penetration is much easier than entering with an average price, and you can quickly

earn new customers.

• Con: It’s not sustainable in the long run and should only be a short-term pricing strategy.

• Example: A new cafe opens up in town and offers coffee that is 30% cheaper than any other cafe in

the area. They also focus on excellent customer service and implement a loyalty program that offers

every tenth coffee for free. When customer demand has built up, the cafe slowly starts increasing

the coffee price to a more profitable level. This gives customers a chance to build a taste for the

coffee and other products and enjoy the great service as they work towards their free tenth coffee.

Many of them will keep coming back as the price rises.

Types of Pricing Methods and Strategies

2. Skimming Pricing:

• Businesses that charge maximum prices for new products and gradually reduce the price over time

follow a price skimming strategy.

• Pro: You can maximize profits of new products and make up for production costs.

• Con: Customers may become frustrated that they purchased at a higher price and watch as the

price gradually declines.

• Example: A home entertainment store starts selling the latest, most advanced television well above

market price. Prices then gradually decrease over the year as newer products come to market.

Types of Pricing Methods and Strategies

3. High-Low Pricing:

• High-low pricing is similar to skimming, except the price drops at a different rate.

• Pro: You can clear your inventory of out-of-date products by discounting them and putting them on

clearance.

• Con: Customers may wait for impending sales rather than purchasing at full price.

• Example: A boutique clothing store sells women’s sundresses at a high price during the summer

and then puts them on clearance once autumn arrives.

Types of Pricing Methods and Strategies

4. Premium Pricing:

• Premium pricing occurs when prices are set higher than the rest of the market to create perceived

value, quality, or luxury.

• Pro: Profit margins are higher since you can charge much more than your production costs.

• Con: This type of pricing strategy only works if customers perceive your product as premium.

• Example: A beauty salon builds up credibility within its market (such as via word of mouth or online

reviews) and offers its services for 30% higher than its competitors.

Types of Pricing Methods and Strategies

5. Psychological Pricing:

• Psychological pricing strategies play on the psychology of consumers by slightly altering price,

product placement, or product packaging.

• Pro: You can sell more products by slightly tweaking your sales tactics without losing profits.

• Con: Some customers may perceive it as being tricky or salesy, which could potentially tarnish your

reputation or lead to missed sales.

• Example: A restaurant sets a gourmet hamburger’s price at $12.95 to lure customers into

purchasing at a perceived lower price compared to $13.

Types of Pricing Methods and Strategies

6. Bundle Pricing:

• Bundle pricing is a type of promotional pricing where two or more similar products or services are

sold together for one price.

• Pro: Customers discover new products they weren’t initially planning to buy and may end up

purchasing them again.

• Con: Products that are sold within a bundle will be bought less often individually since consumers

are saving money on a bundled purchase.

• Example: A taco cantina sells tacos, tortilla chips, and salsa individually but offers a discounted

price if customers buy an entire meal with all of these items.

Types of Pricing Methods and Strategies

7. Competitive Pricing:

• The competitive pricing strategy sets the price of your products or services at the current market

rate.

• Pro: You can maintain market share in a competitive market and attract customers who are

interested in paying slightly less than your competitors’ rates.

• Con: You need to diligently watch average market prices to maintain a competitive advantage for

price-conscious consumers.

• Example: A landscaping company compares its prices to local competitors. It then sets the price for

its most popular service, a lawn maintenance package, below the market average to attract price-

sensitive customers.

Types of Pricing Methods and Strategies

8. Cost-Plus Pricing:

• Cost-plus pricing involves taking the amount it cost you to make the product and increasing that

amount by a set percentage to determine the final price.

• Pro: Profits are more predictable since you’re setting your markup price to a fixed percentage.

• Con: Since this type of pricing strategy doesn’t account for external factors, like your competitors’

pricing, or market demand, you may miss out on sales if you set your markup percentage too high.

• Example: A pizza shop adds up the cost of its ingredients and labor, then sets the pizza price to

receive a 20% profit margin.

Types of Pricing Methods and Strategies

9. Dynamic Pricing:

• Dynamic pricing matches the current market demand for a product. Also known as demand pricing,

this pricing strategy most often occurs when the product at hand fluctuates on a daily or even hourly

basis.

• Pro: You can increase overall revenues by raising prices when demand is on the rise.

• Con: Dynamic pricing requires complex algorithms that small businesses may not have the ability to

manage.

• Example: A boutique hotel raises its room rates for one weekend because there is a popular

summer festival in town.

Types of Pricing Methods and Strategies

10. Economy Pricing:

• Economy pricing consistently undercuts competitors with the goal of making a profit through high

sales volumes.

• Pro: You‘re likely to sell a large volume of products.

• Con: You won’t be making much on each item, so you’ll need to sell more goods than usual. Also, if

you don‘t manage your pricing carefully, you might create the perception of a low-value product or

business.

• Example: A superstore sells a generic brand of tea for 10% less than its local grocery store

competitors.

Types of Pricing Methods and Strategies

11. Freemium Pricing:

• Freemium pricing offers a basic product or service for free, then encourages customers to upgrade

to the paid, premium version to access more features or choices.

• Pro: You are building trust and educating potential customers about your product. You also get their

contact details so you can stay in touch through email marketing.

• Con: You don’t make money from every customer immediately and many users may choose not to

upgrade.

• Example: A software company offers basic virus protection for free with the option to upgrade to

several other tiers of progressively higher levels of online security.

Types of Pricing Methods and Strategies

12. Loss-Leader Pricing:

• Loss-leader pricing brings customers to your store to buy a highly discounted product (the loss

leader).

• Pro: This type of pricing strategy attracts customers who might not otherwise visit your store and

exposes them to your full range of products.

• Con: Some customers will only buy the loss leader product (and possibly many of them), so you

need to watch your profit and stock levels closely.

• Example: A supermarket offers bread at a very low price on Fridays, attracting people who might

then do all their shopping for the week.

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Dynamic Pricing

Video: https://www.youtube.com/watch?v=vTWhsgs3ZRA

Dynamic Pricing

• Dynamic pricing is product pricing based

on various external factors, including

current market demand, the season,

supply changes, and price bounding.

• With dynamic pricing, product prices

continuously adjust – sometimes in

minutes – in response to real-time supply

and demand.

• In contrast, dynamic pricing relies on real-

time trends and supply chain factors.

Dynamic Pricing: Benefits

• Dynamic pricing gives you greater control over your pricing strategy.

• As a retailer using dynamic pricing, you’ll have access to real-time price trends across thousands of products in your industry.

• Dynamic pricing allows flexibility without compromising your brand value.

• You can set a price floor that reflects your brand value while gaining the flexibility to stay profitable.

• Dynamic pricing saves you money in the long run.

• Dynamic pricing is based on real-time changes in supply and demand. It considers market price fluctuations and monitors competitor activity.

• You can manage dynamic pricing effectively with the right software.

• Monitoring hundreds of thousands of products and watching real-time supply-and-demand trends is highly complex and challenging.

• Dynamic pricing isn’t error-free, but you’re still in control.

• Dynamic pricing is based on supply-and-demand changes. As with any technology-based forecast, there is potential for error in dynamic pricing algorithms.

Dynamic Pricing: Downsides

• Dynamic pricing can lead to customer backlash and distrust.

• While it’s tempting to sit back and leave the pricing to the algorithms, doing so can cause a customer revolt.

• Poor data sources can impact dynamic pricing.

• Since dynamic pricing is based on real-time data, the data must be as accurate as possible.

• Dynamic pricing can alter customer behavior.

• Once customers realize that prices change in response to specific factors, they may change their behavior accordingly.

• Dynamic pricing may reduce customer loyalty.

• If customers are confused or feel taken advantage of by fluctuating prices, they may opt to purchase from a competitor with fixed pricing.

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Generating Demand

Generating Demand

• “Demand generation is a marketing strategy that looks at consumer need, and the product you're

offering, and then finding the perfect way to bring awareness to that product in a way that will

hopefully later translate to promising leads”.

• “Demand generation is the process of creating and cultivating interest in a product or service with

the goal of generating high-quality leads that can be nurtured into loyal customers”.

Generating Demand: Stages

1. Awareness: The goal is to create awareness among the

target audience about a brand, products or services.

2. Interest: Once prospects are aware of the offerings from a

company, the next stage is to pique their curiosity and

engage them further.

3. Consideration: This is where potential customers actively

evaluate a company's offerings and compare them to

alternatives as part of their due diligence.

4. Intent: At this point, prospects are actively considering

making a purchase.

5. Conversion/Decision: This is the stage when prospects

take a desired action to become qualified leads or customers.

6. Retention: This part of the customer journey is often

overlooked once a prospect becomes a customer, and for

that reason it is often not considered a stage of demand

generation.

Creating Demand: Strategies

1. Product Scarcity:

Scarcity is often used to bolster sales, but it can also be used to create massive brand lift. It plays on

the customer’s fear of missing out.

2. Information Scarcity:

If you leak just enough information before launch, you can generate tremendous buzz as your audience

searches everywhere for more information.

3. Leverage User-Generated Content:

Sometimes creating demand for a product is as simple as letting your customers sell the experience for

you.

4. Make It Exclusive:

They demand to know why they can’t have it, what factor excludes them, and how they can possibly get

access to it.

Creating Demand: Strategies (Cont’d)

5. Focus on the Biggest Problem:

Once you’ve identified a major issue facing an audience and you know your product is the perfect fit,

you can then take the market by storm with a comprehensive content marketing strategy.

6. Partner with Rockstars:

Influencers hold a lot of sway over their followers. Their audience respects them, trusts their ideas and

opinions, and are willingly persuaded by their interactions and content.

7. Constantly Innovate:

After launching the original version of your product, immediately switch your focus to improving on it

with the help of customer feedback.

Generating Demand: Benefits

• Increased brand awareness.

• Targeted lead generation.

• Improved customer engagement.

• Enhanced customer trust and credibility.

• Expanded market reach.

• Increased conversion rates.

• Higher customer retention.

• Data-driven insights.

• Competitive advantage.

• Sustainable business growth.

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Thank you! Ryan Bytenski

[email protected]

BCOBM222 Marketing in Action Unit 6: Communication Strategies – Part 2

Ryan Bytenski (MBA)

BCom., BCom Honors (Cum Laude)., PGDip., M.B.A.

euruni.edu

Brand Tracking

Video: https://www.youtube.com/watch?v=ZbPUi247wI8

Brand Tracking

Definition:

• “Brand Tracking is the ongoing measurement of

your brand-building efforts against key metrics,

such as brand awareness and perception”.

• “Brand tracking is an ongoing process that

involves monitoring and measuring various

aspects of a brand’s performance, perception,

and presence in the marketplace over time”.

• Trackers help brand owners to understand brand

health and make informed decisions to increase

sales, deliver greater return on marketing

investment, and win market share.

Brand Tracking – How to Track your Brand?

1. Set Objectives and KPIs:

• Clearly state what you want to achieve with brand tracking.

2. Utilize Brand Tracking Methods:

• Tracking a brand involves utilizing various methods and brand tracking tools to collect and analyze

data from different sources.

• Brand Tracking Methods:

• Brand tracking surveys: surveys provide valuable insights into how a brand is perceived by its target audience, how it compares to competitors, and how it is evolving in the minds of consumers.

• Media monitoring: It involves scanning various channels such as news, forums, blogs, podcasts, newsletters, reviews, and social media platforms for mentions and discussions about your brand, products, or services.

Brand Tracking – How to Track your Brand?

• Brand Tracking Methods:

• Online analytics: Tools like Google Analytics provide measurable metrics that can be utilized to evaluate different aspects of brand performance. These metrics include website traffic, engagement, conversion rates, and more.

• Reviews and ratings analysis: Reviews and ratings analysis can be a powerful tool, as it provides direct insights into how customers perceive and experience your brand’s products, services, and overall customer experience.

• Sales data analysis: Understanding which products or services contribute most to your revenue can help you focus your brand’s direction.

3. Collect and Analyze Data:

• Using all these sources gives you a more comprehensive understanding of your brand, from public

perception to user behavior to financial performance.

Brand Tracking – How to Track your Brand?

4. Monitor Continuously:

• Knowing what the public is saying about your brand (media monitoring), how they interact with you

online (analytics), how they feel (surveys), and how these factors influence buying decisions (sales

data) allows for a nuanced, data-driven brand strategy.

The Benefits of Brand Tracking:

• Gives marketers a big-picture view of a brand’s position in the market.

• Provides insights into the competition.

• Segmentation insights for receptive audiences that were previously overlooked.

• Reputation building among customers and potential employees.

• Identify pain points for customers.

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Sales Promotion Plan

Video: https://www.youtube.com/watch?v=96v8vjhL4Ok

Sales Promotion Plan

Definition: A temporary campaign or offer to increase interest or demand in its product or service.

Types of Sales Promotions:

• Cashback: A sales promotion that customers are offered a percentage of their purchase price back

in cash after they make a purchase.

• Gift with Purchase: Retailers or brands incentivize customers to make a purchase by offering a

free gift with their purchase, usually related to the product being sold.

• Trade-in: With this type of promotion, customers can bring in their old product and receive a

discount or credit towards the purchase of a new one.

• Sweep Stakes: Customers have an opportunity to score an exciting prize in a random drawing. To

enter, customers usually need to complete a specific action, like making a purchase, filling out a

survey, or submitting their contact information.

• Instant Win: A sales promotion that offers customers the chance to win a prize on the spot, rather

than through a random drawing later.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 1: Define Your Goals

• Set a Strong Foundation: Start with well-defined and measurable goals for your campaign.

• Identify Desired Outcomes: Clearly state what you aim to achieve, such as new customer

acquisition or increased sales.

• Be Precise: Use quantifiable targets to drive actions and decisions throughout the planning process.

Step 2: Identify Your Target Audience

• Know Your Audience: Understand who your target customers are and what drives their purchasing

decisions.

• Collect Data: Use surveys, social media insights, and customer interviews to gather information

about your audience.

• Analyse and Identify: Pinpoint common demographics, behaviors, and preferences among your

customers.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 3: Choose Your Promotion Type

• Determine the Offer Value: Set the value of your offer. You want to make sure that it is substantial

enough to attract attention but not so large that it hurts your bottom line.

• Establish Offer Terms: Define the duration, redemption method, and limitations clearly.

• Get Creative: Create spend thresholds, loyalty programs, and/or create challenges.

Step 4: Craft Compelling Messaging

• Align with Brand Values: Ensure your messaging is consistent with your brand identity and values.

• Highlight Benefits: Clearly communicate the advantages of your promotion to your audience.

• Use Attention-Grabbing Elements: Employ catchy headlines, strong calls to action, and compelling

visuals.

• Showcase Unique Features: Emphasise aspects that differentiate your product or service.

• Optimise Visibility: Make your promotion easily accessible and visible to your audience.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 5: Selecting Your Channels and Timing

• Select Appropriate Channels: Choose the marketing channels most likely to reach your target

audience.

• Maintain Messaging Consistency: Ensure uniformity across all channels to build brand

recognition and trust.

• Focus on Timing: Launch your promotion during slow sales periods to maximize impact and boost

sales.

• Track and Measure Results: Monitor the effectiveness of each channel to refine your promotional

strategy for future campaigns.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 6: Set Your Promotion Budget

• Use Past Data: Analyse previous campaigns to help evaluate costs and set a realistic budget.

• Account for Fixed Costs: Include expenses related to promotional materials or activities, such as

creative development, market research, and training.

• Consider Variable Costs: Factor in expenses that change with sales promotion activity, including

incentive costs, media advertising, sales commissions, and shipping.

• Consider Promotion Insurance: Fix the price of your promotion for financial stability and peace

of mind, regardless of the number of redemptions.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 7: Conduct a Risk Assessment

• Market and Economic Landscape: Consider any external factors that may affect the success of

your promotion, such as changes in the market or economic landscape.

• Competitors: Analyze the recent activities of your competitors to gain insights into how the market

has responded to their promotions.

• Lead Times and Resources: Assess your lead times and resources required to execute your

promotion. Consider any potential bottlenecks or delays that may impact the successful launch of

your promotion.

• Packaging and Logistics: Ensure that all products, materials, and prizes are available and can be

shipped in a timely and cost-effective manner.

• Legal and Compliance: Ensure that your promotion complies with all applicable laws and

regulations, including data protection and privacy laws. Develop proper terms and conditions for

your promotion and ensure that your team is aware of all legal implications.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 8: Plan Your Promotion Activity Timeline

• Identify Key Milestones: Start by identifying the key milestones for your promotion, such as the

launch date, the end date, and any important events or deadlines.

• Breakdown Tasks: Once you have identified the key milestones, break down the tasks required to

achieve each milestone. Assign deadlines to each task, and make sure they are achievable.

• Assign Responsibilities: Assign responsibilities for each task to specific team members or

departments. Make sure everyone knows their role and is clear on what is expected of them.

• Use a Project Management Tool: Consider using a project management tool to help plan and

track your promotion timeline (assign tasks, set deadlines, and track progress).

• Build in Buffer Time: Allow for buffer time in your timeline in case of unexpected delays or

changes. This will help you stay on track even if something unexpected comes up.

• Test your promotion before launch: Testing your promotion before launch can help you identify

any issues or glitches and ensure that everything is working properly.

• Allow enough time in your timeline for testing and make any necessary adjustments based on the results.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 9: Launch Your Promotion

• It’s time to launch your promotion! Keep in mind that launching your promotion is just the

beginning.

• It’s important to monitor your promotion closely and track your progress towards your goals.

• You may need to adjust your promotion strategy based on customer feedback and other factors.

• Ensure you pay close and careful attention to the early results to you can react if necessary.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 10: Evaluate Your Promotion Performance

• Sales: Monitor sales during the promotion period, as well as before and after the promotion. This

will help you determine whether your promotion impact on sales, and by how much.

• Customer Behaviour: Observe any changes in customer behaviour during the promotion period.

For example, are customers buying more frequently or in larger quantities? Are they more likely to

return to your store or website?

• Website Traffic: Track the number of visitors to your website during the promotion period, as well

as any changes in website traffic sources. This will help you determine which channels are driving

the most traffic to your website.

• Social Media Engagement: Monitor engagement on your social media channels during the

promotion period. This includes likes, shares, comments, and mentions. This will help you

determine how successful your social media campaign has been.

• Customer Feedback: Collect feedback from customers who have participated in the promotion.

This will help you identify any areas for improvement in future campaigns, as well as provide

insight into what customers found appealing about the promotion.

Sales Promotions, Up-Selling, and Cross-Selling

Cross-Selling Definition: Cross-selling is the art of encouraging a customer to purchase related or

complementary products.

Upselling Definition: Upselling is when you offer a higher-priced product or service to a customer

who is already interested in making a purchase.

• The goal is to increase the value of the sale by incentivizing the customer to purchase higher-end

products or services.

Sales Promotion Definition: Encouraging first-time customers to try your products or services, or to

persuade existing customers to refer friends and family

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The Rise of Commerce Media

Video: https://www.youtube.com/watch?v=XJAGOwFYnSQ

The Rise of Commerce Media

Commerce: Online activities that relate to the buying and selling of goods and services, both online

and in-store.

Media: The digital advertising channels that reach or influence people with promotional content. This

includes but is not limited to paid display, paid search, retail media, video and CTV, and social media.

Commerce Media: Is advertising that connects shoppers with products and services throughout the

buying journey across both physical and digital touchpoints, linking advertising investment directly to

transactions.

• Commerce media is specifically tied to a retailer's e-commerce platform, which can serve ads, but

in a limited capacity.

• A true retail media network offers unified on-site, off-site and in-store capabilities.

• Using the term “commerce media” sells short the additional channels that can be powered by

retailers.

The Trends Fueling the Rise of Commerce Media

• Ecommerce is booming: The COVID-19 pandemic brought the world online to shop, and their

new online habits will continue post-pandemic.

• Worldwide ecommerce is predicted to approach $5T in 2021.

• How we can connect with consumers is changing: Growing privacy regulations and third-party

cookie deprecation have marketers and media owners looking for new ways to reach and monetize

audiences that are shopping online more than ever.

• First-party data is a huge opportunity for retailers: Because of the point above, marketers are

focused gathering and scaling first-party data.

• Connecting with retailers can be a win-win for both parties.

• Trade marketing is shifting to digital: Brand dollars are following their consumers online.

• 92% of EU and 76% of US brand advertisers say their growth depends on retail media advertising.

Six Reasons for Commerce Media’s Growth

Ecommerce’s Boom is Beginning to Stabilize:

• The rise of ecommerce since the start of the

COVID-19 pandemic is cooling down due to a

sense of new normalcy, the return of

consumers to work/school/entertainment,

geopolitical events, and other economic

factors.

• Commerce media is gaining ground because

it enables marketers to adjust to the changing

times with marketing solutions that drive visits

and conversions both online and offline.

Reasons for Commerce Media’s Growth

Consumers are Turning to the Open Internet

for their Shopping Needs:

• Research shows that more consumers than

ever before are starting their search journeys

on retail and brand websites – instead of

searching on Amazon or Google.

• With consumers bypassing online

marketplaces and search engines, commerce

media opens new opportunities for marketers

to connect with consumers on publishers and

retailers across the open internet at critical

search touch points.

Reasons for Commerce Media’s Growth

Privacy Regulations are Growing:

• Over the years, new regulations continue to

emerge to protect the privacy of consumers

and to create a more transparent ecommerce

experience.

• As a result, marketers and media owners are

looking for new ways to responsibly reach

consumers and monetize audiences – all

while acting in accordance with privacy laws

and the phase-out of third-party cookies.

• With a focus on first-party data and

responsible, addressable advertising,

commerce media is an attractive option for

those looking to future-proof their strategy.

Reasons for Commerce Media’s Growth

First-Party Data Strategies are Imperative:

• Marketers now prioritize gathering and

growing first-party data.

• Retailers are venturing into new ways to

monetize their first-party assets.

• By connecting marketers and media owners

to each other and to data, commerce media

helps all ecosystem players achieve their

first-party data goals.

Reasons for Commerce Media’s Growth

Proving ROI Makes All the Difference:

• Many companies lack qualitative metrics to

demonstrate the impact of their spend on

marketing, making it impossible to determine

a concrete analysis of activity performance

and define a fully informed budget for the

future.

• However, commerce media provides closed

loop reporting, so you can track ad spend to

product sales and fill in the gaps for ROI

analysis.

Reasons for Commerce Media’s Growth

“Head of Commerce” Roles are Emerging:

• Across industries, agencies and brands are

hiring Head of Commerce talent who bolster

business growth with a 360° approach to

commerce.

• The Head of Commerce prioritizes an

audience-based approach to marketing over

a channel by channel or retailer by retailer

approach.

• Commerce media gives this role the holistic

view they need, enabling them to activate

audiences and measure results across a

variety of channels and formats all from one

place.

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Full-Funnel Marketing Strategy

Video: https://www.youtube.com/watch?v=Xx75loJvFhg

Full-Funnel Marketing Strategy

Definition: Involves tailoring your marketing

messages to the particular stage of purchase a

customer is currently at.

• A marketing funnel is the purchase cycle

consumers go through from awareness to

loyalty.

• Rather than focusing only on sales, it considers

the entire 360-degree customer journey and

attempts to nurture relationships and build

better brand experiences.

Stages of the Marketing Funnel

1. Awareness: Brand awareness is familiarity with a brand, which could include knowledge of its

name, messaging, tone and style, values, and culture.

2. Consideration: The goal of consideration marketing is increasing the likelihood that consumers will

consider a certain brand and its products when shopping.

3. Conversion: The goal of the conversion stage is to encourage shoppers to purchase a product or

service because they believe the brand they’ve chosen is the right solution to their problem or meets

their need.

4. Loyalty: Brands can foster loyalty by providing a seamless purchase experience and delivering a

quality product or service.

Steps to Building Your Full-Funnel Marketing Strategy

1. Define Clear Objectives:

• Identify specific goals aligned with your business objectives for each stage of the funnel.

• Whether it's increasing brand awareness, driving engagement, or boosting conversions, clearly

define what success looks like for your marketing efforts.

2. Understand Your Audience:

• Conduct thorough research to understand your target audience's demographics, preferences,

behaviors, pain points, and motivations at each stage of the funnel.

• This insight will help tailor content and messaging to resonate with their needs and interests.

Steps to Building Your Full-Funnel Marketing Strategy

3. Create Compelling Content:

• Generate persuasive content tailored to guide potential customers towards making a decision.

• This includes providing detailed information, comparisons, testimonials, and compelling calls-to-

action to encourage conversions.

4. Optimize User Experience (UX):

• Ensure a seamless and user-friendly experience across all touchpoints.

• From website navigation to mobile responsiveness and content accessibility, prioritize a positive

user experience at every stage of the funnel.

Steps to Building Your Full-Funnel Marketing Strategy

5. Implement Marketing Automation:

• Use automation tools to streamline processes, nurture leads, and deliver personalized content

based on consumer behavior and engagement levels.

• Automation helps in maintaining consistent communication and guiding prospects through the

funnel.

6. Measure and Analyze Results:

• Regularly track and analyze key performance indicators (KPIs) specific to each stage of the funnel.

• Metrics like conversion rates, click-through rates, engagement metrics, and return on investment

(ROI) provide insights into the effectiveness of your marketing efforts.

Steps to Building Your Full-Funnel Marketing Strategy

7. Iterate and Optimize:

• Based on data-driven insights, continually refine and optimize your strategy.

• Test different approaches, channels, and messaging to improve performance and adapt to

changing consumer behaviors.

Notes: By integrating these steps into a cohesive strategy, businesses can effectively engage

consumers at every stage of the funnel, nurture leads, and drive conversions while continuously

refining their approach for optimal results.

Effective Tactics for Each Stage

Use Video Ads to Generate Awareness

• Video advertising is one of the most effective ways to generate awareness.

• Not only is one-third of all online activity spent watching video, but videos also generate higher

engagement, with prospects many times more likely to click a video ad than a banner ad.

Leverage Personalized Engagement to Drive Consideration

• At the consideration stage, focus on building desire for your brand.

• An effective way to do this is by sending interactive, personalized marketing messages which

deliver engaging and informative content based on your prospects’ behavior and interests.

Focus on High-Value Customers for More Conversions

• To drive action at the conversion stage, segment your warm prospects by demographics and

behavior and continue to deliver highly-personalized product recommendations.

euruni.edu

Thank you! Ryan Bytenski

[email protected]

BCOBM222 Marketing in Action Unit 9: Measurement and Marketing ROI

Ryan Bytenski (MBA)

BCom., BCom Honors (Cum Laude)., PGDip., M.B.A.

euruni.edu

Measurement &

Marketing ROI

Video: https://www.youtube.com/watch?v=35OLWv9AGpU

Marketing ROI

• Marketing ROI is the practice of attributing profit

and revenue growth to the impact of marketing

initiatives.

• By calculating return on marketing investment,

organizations can measure the degree to which

marketing efforts either holistically, or on a

campaign-basis, contribute to revenue growth.

• Typically, marketing ROI is used to justify

marketing spend and budget allocation for

ongoing and future campaigns and initiatives.

How is Marketing ROI Used by Companies?

• Justify Marketing Spend:

• To secure budget and resources for future campaigns, it’s crucial that current marketing spend, and budget be justified at the executive level.

• To do so, marketers need to accurately calculate the ROI their marketing efforts are delivering for the organization.

• Distribute Marketing Budgets:

• Across online and offline channels, there are multiple possible marketing mix combinations.

• However, any combination of campaign initiatives require funding.

• That’s why understanding which online and offline efforts drive the most revenue is a must for properly distributing the marketing budget.

How is Marketing ROI Used by Companies?

• Measure Campaign Success and Establish Baselines:

• A crucial part of any successful marketing team is the ability to measure campaign success and establish baselines that can serve as a reference for future efforts.

• By understanding the impact of individual campaigns on overall revenue growth, marketers can better identify the right mix of offline and online campaign efforts.

• Moreover, measuring ROI consistently allows marketers to establish baselines to quickly gauge their success and adjust efforts to maximize impact.

• Competitive Analysis:

• Tracking the marketing ROI of competitors allows marketers to accurately understand how their organization is performing within their specific industry.

• Marketers tracking publicly available financial data can estimate the ROI of competitors and adjust baselines to reflect these estimates—helping to keep efforts consistently competitive.

How Do You Calculate / Measure Marketing ROI?

(Sales Growth – Marketing Cost) / Marketing Cost = Marketing ROI

(Sales Growth – Organic Sales Growth – Marketing Cost) / Marketing Cost = Marketing ROI

• Total Revenue: Helps in getting a clear overview of marketing efforts and is ideal for strategic

social media planning, budget allocation, and overall marketing impact.

• Gross Profit: Helps understand the total revenue produced by the marketing efforts concerning

the cost of production or delivery of goods and services.

• To do this, add the following to the marketing ROI formula: = (Total revenue – the cost of goods to deliver a product).

• Net Profit: Helps in identifying the impact of marketing efforts on the net profit.

• To do this, add the following to the marketing ROI formula: = (Gross profit – additional expenses).

Common ROI Terminology

• Digital marketing tactics—including social media, online display ads, email marketing, and your

company website, the most obvious is that their effectiveness is trackable and measurable.

Five metrics that better represent the value of and ROI of your digital marketing efforts:

• Cost Per Lead (CPL): Cost of Marketing Campaign / # of Leads.

• Customer Acquisition Cost (CAC): Sales + Marketing (including salaries) + Overhead / # of

customers acquired over a given period.

• Lead-to-Customer Conversion Rate: Total # of Converted Leads / Total Lead Volume *100%.

• Lifetime Customer Value: Avg. sale per customer * # of purchases per customer * Average retention

timespan for customers.

• Visitor-to-Lead Conversion Rate: Total # of Converted Website Visitor / Total Website Leads *100%.

What is a Good Marketing ROI?

• A good marketing ROI is a ratio of 5:1 – or making five dollars for every dollar you spend.

• A marketing ROI of 10:1 is considered exceptional.

• This is because you're turning a profit, even when you account for external variables.

• Anything below the 2:1 ratio is barely profitable because after factoring in the business expenses,

which will likely reduce it to a 1:1 ratio.

• The marketing ROI calculation assumes direct investments but only usually includes business costs like salaries and office space that were also necessary to make that campaign happen.

• It's important to note that a “good marketing ROI” is entirely subjective.

• It depends on your niche, industry, and use case.

• For example, some industries are more saturated or competitive and require large budgets to produce some profit.

Challenges of Measuring Marketing ROI?

Measurements are Simplistic:

• Marketers must get a clear and consistent sales baseline to measure against.

• Also, ROI measurements should take for external factors that impact campaign success, including

weather, marketing industry trends, events, supply chain issues, etc.

Cross-Channel Landscape:

• Campaigns aren’t run on a single channel.

• They often use various online and offline channels simultaneously.

• Therefore, focusing marketing ROI measurements on a single channel will only feed marketers

with a tiny piece of the overall marketing impact data.

Multiple Touchpoints Before Purchase:

• It usually takes 6-10 touch points on average before a potential customer makes a buying decision.

• So, a marketing team needs to understand the relationship between these touchpoints in the sales

funnel and use a multi-touch attribution model, measuring direct and indirect relationships.

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ROI Mindset

How Can Businesses Adopt an ROI Mindset

• While the importance of calculating ROI is obvious in almost every business case, it is less clear

where to begin.

• While ROI often gets labelled as a financial measurement that doesn’t look at the total cost to the

organisation, it is important to apply findings to help prioritise tasks, compare expected outcomes

to actual results, draw conclusions and learn for the next project.

• The first step toward understanding ROI is determining what data is being collected.

• Conducting a data audit across the organisation will identify where information sources are located, how to access them, what questions each source can answer, and which gaps still need to be filled.

• After the data audit is completed, each initiative that has been completed or is in the works will be visible.

• Connecting the information gathered with actual results to establish a baseline for future improvements.

How Can Businesses Adopt an ROI Mindset

• Communication is one of the most important aspects of an ROI mindset.

• It is best to involve teams in determining key goals at the start of a project.

• Many people in an organisation will be unfamiliar with ROI, bringing them along for the journey by setting up training to get them up to speed on any new terminology, while incorporating ROI into future initiatives.

• Finally, organisations need to ensure that stakeholders who receive ROI reports are familiar with

the inputs used and how results are calculated.

• Creating an ROI culture increases engagement throughout the decision-making process, making it easier for those involved to see the impact of initiatives.

• Executives must summarise the team’s activities and link those to quantifiable, financial outcomes at the end of a venture.

• When projects are completed, they must report back to the team on their success and how it compares to previous initiatives.

Measure the Unmeasurable

• No matter how hard you try, some content

marketing efforts can’t be fully tracked.

• Nonetheless, you can and should measure those

aspects that can reveal the extent to which you

are making progress or impacting growth.

• Sometimes, there are still gaps in the data where

it’s just not possible to see the immediate impact

of certain metrics on core objectives.

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Performance Branding

Video: https://www.youtube.com/watch?v=EOAPF2H90Vg

Performance Branding

Performance Branding describes a multi-dimensional

analysis that gives companies instant insights into the

performance of their brands—in real time.

Performance branding delivers insights and solutions

in six dimensions:

• Brand persona

• Brand marketing

• Brand strength

• Internal & employer branding

• Brand market audit

• Brand ad-hoc insights

Moving to Performance Branding

• Media Consumption: Increasingly, the impact of traditional advertising can be measured and

optimized at the individual or household level.

• For example, many smart TVs have a unique IP address and are equipped with automatic content-recognition (ACR) technology that lets them create a record of which ads have been viewed.

• Identity Graphs: An identity graph is a collection of user-level data combined with identifiers such

as digital cookies, physical addresses, email accounts, and mobile phone numbers.

• This type of database enables advertisers to better understand consumer preferences and habits along their entire decision journey and across channels and devices.

• Individual-Level Transaction Data: In their efforts to understand and improve the impact of joint

campaigns and promotions and also to monetize their data assets, retailers increasingly provide

access to individual-level transaction data to manufacturers and advertisers.

• By combining their own data about advertising exposure with these records, advertisers can enrich their data sets to derive more reliable cause-and-effect relations.

Moving to Performance Branding (Cont’d)

• Personalization of Consumer Surveys and Panel Data: In the past, surveys generated insights

about the average customer.

• Thanks to agile insights applications, questionnaires can now be customized, and individual responses can be matched with an existing individual-level database.

• Technological Advances: The increasing capacity for data storage, faster IT infrastructure, and

partial automations is allowing market researchers and data scientists to handle much larger

sample sizes.

• Sophisticated algorithms can help companies understand individual customer behavior in real time.

Core Elements for Efficient Performance Branding

Good data and a single source of truth that everyone agrees on.

• Strong data starts with building out a customer-data platform (CDP) that incorporates data from

internal sources, external partners, and third parties in a compliant fashion and at the level of

individual customers and provides links to execution platforms.

Agile operations to move quickly and learn.

• These allow teams to both make quick tactical decisions and incorporate learnings to continuously

improve offers.

• Marketers need to pursue a rigorous test-and-learn regime to ensure that new insights based on

changes in technologies and consumer behavior are fed into performance-branding programs.

Close collaboration with well-vetted agencies.

• Marketing teams should work closely with their agencies on key elements of performance

branding, from detailed media planning to the ability to execute more changes at a much higher

frequency.

Performance Branding: Benefits

Improved Campaign Insights:

• The use of analytics gives you access to improved insights into how your branding efforts are

working, and this data helps you to make more informed decisions and continuously improve your

campaigns.

• For example, you can figure out which advertising channels get the best results.

• You can then focus more of your budget on the most effective channels or update your strategies

to improve your results.

A More Integrated Approach:

• Performance branding can also give you a more cohesive view of your marketing and branding.

• This helps you ensure that all aspects of your campaigns work together and can help you improve

the results on both ends.

• For example, you can ensure your branding targets people who are likely to become customers

and make sure that your marketing efforts are consistent with your brand.

Performance Branding: Process

1. Set Goals:

• Specific: Make your goals detailed and avoid ambiguity.

• Measurable: Your goals should be quantifiable, and there should be a way to gauge your progress.

• Achievable: While your goals can be ambitious, they should also be realistically achievable.

• Relevant: Your branding goals should be relevant to your overall business goals.

• Time-bound: Put a time limit on achieving your goals to help keep you on track.

Examples:

• Increase search volume for branded keywords by 25% in the next six months

• Increase brand recall by 30% by the end of the year

• Increase social media engagement by 15% by the end of the quarter

Performance Branding: Process

2. Choose Metrics to Track:

• Brand Recall: The number of people who remember or recognize your brand is useful for

measuring brand awareness.

• Website Traffic: The amount of traffic coming to your website can help you estimate the reach and

popularity of your brand. Also, pay attention to where your traffic is coming.

• Search Volume for Branded Keywords: How many people are looking for your business on

Google and other search engines? Search volume indicates how many people are actively seeking

out your business online.

• Backlinks: If your website is organically earning more links, this is a good sign that your reach is

expanding online.

Performance Branding: Process

2. Choose Metrics to Track (Cont’d):

• Social Followers: Social media is a valuable tool for measuring branding success. The number of

followers your brand has is an excellent measure of its popularity.

• Social Mentions: You can also track the number of times people mention your brand on social

media, whether on your profiles or elsewhere.

• Social Reach: Social reach is a measure of how many people see your name on social media. To

measure this, consider the number of mentions and how many people will likely see those mentions.

• Social Engagement: Engagement through comments, posts, and other interaction types is a great

way to monitor the number of users who are more actively interested in your brand.

Performance Branding: Process

3. Choose Tools:

• Surveys: Consider sending out surveys to existing customers or surveying a sample of random

people. You can conduct surveys via email, phone, and social media, on your website, and in

person. Try asking existing customers how they heard of you and asking random survey takers if

they recognize your brand.

• Website Analytics Tools: Website analytics tools such as Google Analytics are an excellent way to

measure website traffic, interactions, and more.

• SEO and Keyword Research Tools: Using SEO tools like Ahrefs and Google Trends, you can

research keyword search volume, backlinks, and more.

• Social Media Analytics Tools: Social media analytics tools, including ones built into the platforms

and third-party tools, are powerful brand tracking tools.

• Social Media Monitoring Tools: You can also use various social media monitoring tools to track

mentions of your brand on social media.

Performance Branding: Process

4. Experiment with New Branding Campaign Tactics:

• Once you have your branding performance tracking tools ready, continue following your branding

campaign strategies.

• As you do so, though, keep track of your results and start experimenting with new tactics.

• As you make changes to your campaigns, monitor the results and update your strategies

accordingly.

• If you try a new approach and it works well, consider investing more into that method.

• If a campaign doesn’t meet your expectations, adjust various elements until you get the results

you’re looking for.

• Also, consider running A/B tests — tests in which you change an element of an ad, page, or other

item and see which version performs best.

• Then, you implement the winning version as the final one.

Performance Branding: Process

5. Continually Refine Your Campaigns:

• As you gather more data and try more new tactics, continue refining your branding strategy.

• Also, use the data you collect to ensure your branding and marketing efforts remain aligned.

• Improving the results of your branding and marketing is a continual process.

• You should always track data, run tests, and adjust your campaigns.

• As you do, your campaigns will get better and better over time.

• Due to its focus on measurable KPIs and improved visibility into your campaigns, performance

branding sets you up for success with this process of continual improvement.

euruni.edu

Spend Management

Video: https://www.youtube.com/watch?v=O4ZWk1LJEz4

Spend Management

• “Spend management is a set of practices that ensure

organizations make procurement and sourcing

decisions in the interests of both the bottom line and

company efficiency”.

• “Spend management is a set of practices for controlling

how a business spends money”.

• “Spend management is about maximizing value from

company spend while decreasing costs, mitigating

financial risk and improving supplier relationships”.

• Spend management is primarily related to procurement

and encompasses spend analysis, strategic sourcing

and supplier relationship management.

Why is Spend Management Important?

Spend management is a complete process of requesting and

approving the company’s spending, completing payments, capturing

the crucial details of transactions, booking, tracking, managing, and

analyzing the company’s business.

• Higher level of finance data visibility and transparency.

• Complete control over the company’s finances.

• Efficient and continuous business operations.

• Consistent cost-saving refined opportunities.

• Better process of financial decision making.

• Identification and management of risks.

• Builds up the supply chain management.

Types of Spending

• Managed vs Unmanaged:

• Managed Spend: Any expenditure that’s happening under contract, and involved in sourcing, selecting, negotiating, and signing the contract.

• Unmanaged Spend: On the other hand, happens outside of the procurement cycle (once-off).

• Direct vs Indirect:

• Direct Spend: Involves purchases that are directly related to the production of a company’s final product or service.

• Indirect Spend: Encompasses all other expenditures required for the business to run.

Types of Spending

• Operating vs Non-Operating:

• Operating Costs: Repeated expenses that stem from the day-to-day business operations.

• Non-Operating Costs: Expenses that do not stem directly from the core business operations (interest, taxes).

• Fixed vs Variable:

• Fixed Costs: These are the expenses that must be paid regardless of the production volume. They usually don't apply directly to production.

• Variable Costs: These are expenses that fluctuate based on how much the company produces and sells; accordingly, variables usually rise when production volume rises.

Spend Management: Benefits

By taking a big-picture view of spending, more addressable

spend can be brought under management, driving more

organisational value.

The Value is Derived From:

• Greater Efficiency: From automating manual, error-

prone processes.

• Lower Supply Costs and Risks: By knowing exactly

what is being bought, from whom, and for how much.

• More Effective Collaboration: Between trading

partners and cross-functional teams.

• Improved Productivity: By freeing time and resources

to focus on more strategic activities.

Spend Management System

• Each company adjusts its spend management process

individually based on its industry, size, structure, and other

specifics. An efficient spending strategy is grounded in the

real-life spending data of the company.

• There's no universal scenario applicable to every company,

but the following 9-step process can serve as a starting

point for building a custom spend management system.

euruni.edu

Revenue Management

Video: https://www.youtube.com/watch?v=wbQbRqcS8YY

Revenue Management

• “Revenue management is a business technique that

enables the optimization of your inventories and

maximizes your profits”.

• “Revenue management is a strategic approach to

pricing and selling products or services to maximize

revenue”.

• “Revenue Management is a disciplined analytics

technique used to predict consumer behavior at the

micro-level, which is used to optimize product

availability and pricing and maximize revenue

growth”.

• It involves understanding market demand, customer

behavior, and pricing strategies.

Revenue Management: Key Elements

• Encourage the Culture of Revenue Management: It is essential to incorporate a culture wherein

all the employees are well aware of its purpose and benefits.

• Keep Pace with the Changing Customer Behavior: Although historical information is vital for

revenue management, it is equally important to keep track of changes in customer behavior and

habits to build a robust strategy.

• Focus on Value Proposition: Sometimes, it is better to focus on creating valuable product/service

offerings than lowering the prices because people are usually willing to pay more if offered a better

overall experience.

• Forecasting: This revenue management system is a method that uses various types of historical

data, predictive models, and market analysis that help in planning inventory and production levels.

• Technology: Updated and advanced technology is necessary so that the solution will facilitate

proper revenue management and automated solutions. This will ensure price management and

decision making.

Revenue Management: Strategies

1. Segmentation and Price Optimization:

• The customers are classified into different segments based on various criteria.

• Each segment has to be analyzed separately to understand customer behavior in each segment;

their preference in terms of pricing and product features.

• Then different pricing strategies and marketing strategies are built to approach the different customer

segments.

2. Moment Based Pricing Strategy:

• The right strategy must be selected for pricing strategies, keeping in mind the current situation.

3. Distribution Channel-Based Strategy:

• Using the right distribution channel to find the right set of customers while reaching as many

customers as possible is important.

• The strategy’s priority should be to reduce the number of intermediaries to pass the benefit of a

lower commission fee on to the customers in the form of lower pricing.

Revenue Management: Benefits and Limitations

Benefits:

• It provides insight into the customers’

specific needs and wants, which can be

incorporated into the product/service

offerings.

• It helps build a competitive pricing strategy

that can draw more customers and offer an

edge over the competitors.

• Used to analyze the market to identify new

and potential customer segments;

Limitations:

• It makes the already complicated job of the

manager or revenue management analyst even

more complicated.

• The process becomes complex in case the

business has a huge line of products and

services.

• This also involves cost cutting or control. If cost is

not handled and kept to its minimum level, even

higher revenue will not increase profitability.

euruni.edu

Thank you! Ryan Bytenski

[email protected]

BCOBM222 Marketing in Action Unit 6: Communication Strategies

Ryan Bytenski (MBA)

BCom., BCom Honors (Cum Laude)., PGDip., M.B.A.

euruni.edu

Development of Media Plan

Media Planning

• Media planning is the process of determining how, when, and where your ads are shown to a

targeted audience.

• Knowing the “WHY” behind your media plan will help you maximize your ad campaign’s reach.

• A media plan guides the media planning process. Think of it as a blueprint for your campaign

efforts.

Your Media Plan Should Include:

• Objectives.

• Target Audience.

• Selection of Media Channels.

• Resource Allocation.

• Scheduling Strategy for Each Chosen Media Vehicle.

Types of Media Channels

Three Fundamental Types of Media Plans:

1. Paid Media: Is ad content placed within marketing channels owned by external media entities.

2. Owned Media: Is the placement of ad content within channels the advertiser wholly owns.

3. Earned Media: Is the accumulation of organic brand mentions without paid promotion.

Media Channels:

• Offline Media Channels: Include TV, radio, newspapers, magazines, and out-of-home advertising

(such as billboards and wayfinding)

• Online Media Channels: Include social media, online video, and digital advertising (such as

display and native ads)

Types of Media Channels

Integrated Marketing Communications System

The Communications Process:

• The Sender: Or the party trying to communicate a message to another party.

• Encoding: The form through which the message is conveyed, for example, an illustration or words.

• Message: The set of encodings the sender is communicating.

• Media: The communication channel the sender uses to convey its message to the receiver.

• Decoding: The process through which the receiver interprets the encoded message. For example,

a consumer watching a TV ad interprets the words and the video.

• Receiver: The person receiving the message sent by the sender.

• Response: How the receiver reacts to the message after exposure.

• Feedback: Is when a part of the receiver's response gets communicated to the sender.

• Noise: The distractions that may occur during the communications process. These can distort the

message.

Integrated Marketing Communications System

The 6 steps to effective marketing communications:

1. Identify the Target Audience:

• Choose which markets and customers to target with the message.

2. Determine the Communication Objectives:

• What is the desired response? Frequently, this might be a purchase.

3. Design the Message:

• The message should ideally grab the audience's attention and lead to action (e.g. a purchase).

• To do this, the marketer needs to pay special attention to the message content, structure, and format.

Integrated Marketing Communications System

4. Choose a Communications Channel and Medium:

• These may include personal communications channels (e.g. face-to-face or e-mail – but can often

also come through word-of-mouth or opinion leaders, such as influencers) or non-personal

communications channels (e.g. print or broadcast media).

5. Choose the Message Source:

• Marketers should choose sources that the receiver will view as credible and persuasive.

• For example, receivers can often consider promotion through doctors or celebrities a compelling source.

6. Collect Feedback:

• Marketers should collect feedback to see whether the communications plan was successful or not.

• Feedback results in practical insight that marketers can use for future communications efforts.

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Promotion Mix Strategy

Video: https://www.youtube.com/watch?v=XI2qK1UASxI

Promotion Mix

Definition: The full set of strategies that combine to make up the promotion mix include advertising,

sales promotion, personal selling, public relations, direct marketing, and Internet/digital marketing.

Promotion Mix

• Advertising: A paid form of promotion aiming to sell an organisation's product or service.

• For example, a TV commercial or a billboard.

• Personal Selling: When the firm's sales team directly contacts customers to increase engagement

and build relationships.

• Digital Marketing: Any form of marketing that takes place online and engages with a specific

group of target customers.

• Public relations (PR): Any efforts made by a company to shape public opinion. PR is used to

create a positive brand image, address unfavourable events or scandals, etc.

• Sales Promotions: Short-term efforts made by a company to encourage a purchase.

1. Advertising Media: Form

• Print Media: Marketing communications in the form of printed publications.

• Broadcast Media: Marketing communications in the form of audio and video content.

• Interactive Media: Comprises marketing communications in the form of text, audio, video,

animation, etc., on digital platforms.

• In-Store Media: Marketing communications using displays and experiences in physical stores.

• Outdoor Media: Marketing communications that take place outdoors, in public spaces, accessible

to everyone

• Other Media Forms: Other forms of advertising media may include product placements, brand

events, exhibitions, etc.

1. Advertising Media: Form

Media Type Advantages Disadvantages

Print Credibility, demographic

selectability High cost, long lead time

Broadcast Mass-market scope, low cost

per exposure Low attention and

engagement

Digital Media Low cost, high engagement

potential, demographic selectability

Audience may avoid viewing the ad, low impact

Outdoor Repeat exposure, low competition, flexibility

Low demographic selectability, targets mass

market

Direct Mail Flexibility, personalisation Audience can avoid/become overwhelmed if frequency is

high

In-store Mass-market scope, short

purchase lead time

Low engagement, only effective for specific product

types

1. Advertising Media: Function

Linear:

• Linear media involves one-way communication.

• For example, a simple text-based billboard, poster, or print media.

• Consumers view this advertisement but do not engage or interact with the brand when they see it.

Interactive:

• Interactive media refers to two-way communication in which multiple parties can exchange

information.

• For example, social media communications that the consumer can immediately respond to.

• In this case, the viewer can react and interact with the product or brand.

1. Advertising Media: Source

Owned Media:

• Any form of media that belongs to the brand/company.

• In other words, the brand does not pay to use this form of media for advertising purposes.

• Example, a brand website or mobile app.

Paid Media:

• Any media the company pays to use and promote its brand/products.

• Paid media includes traditional forms of advertisement like billboards or print ads and interactive advertisements like social media ads.

Earned Media:

• Any media on a third-party channel where the user (the brand) has to adhere to the platform's

guidelines.

• It includes all the communications (online, offline, on socials, etc.) generated about a brand.

2. Personal Selling

Definition: Establishing direct contact with existing and potential customers through a sales team.

• Its aim is not just to engage and convince customers to buy a product/service but also to build

strong relationships with them.

Types of Personal Selling:

• Order Creator: The task of salespeople is to create orders. They give customers information

about products and services and try to create needs for those products/services.

• Order Getter: Companies employ the services of frontline salespeople to bring in new customers.

salesmen’s job is to convince the customers and assist them in making a purchase.

• Order Taker: Involves handling requests and queries. Customers contact the salespeople and

inform them about their needs or problems. The salespeople give them information about the

products/services that could fulfill their needs or solve their problems.

3. Direct Marketing

Definition: Is a promotional approach in marketing that informs customers about a product or service

without any intermediary in the process.

Types of Direct Marketing:

• Direct Mail: The business sends brochures, flyers, etc., through direct mail. It provides an option

for companies to customize their marketing material.

• Social Media Marketing: Big brands allocate enormous budgets for social media marketing

because of their broad reach (Facebook, Instagram, and Twitter).

• Email Marketing: Businesses deliver promotional messages to customers directly to their email

inboxes.

• SMS Marketing: SMS is a type of direct marketing used for promotional purposes. SMS

marketing aims to build brand awareness and convince customers about business offerings.

3. Direct Marketing

Features of Direct Marketing:

• Targeted Messaging: They focus on delivering promotional messages to interested customers.

• Audience Segmentation: Marketers segment the audience based on similar characteristics for

direct marketing.

• No Intermediary: Businesses are in direct contact with customers through multiple channels.

• Customer-Oriented: Brands identify the preferences of customers and provide tailored solutions

to them.

• Track of Performance: The business is directly involved in marketing activities, it can easily keep

track of performance.

3. Direct Marketing

2/3. Direct Marketing vs Personal Selling

Direct Marketing Personal Selling

To sell products/services and to inform customers directly.

To sell products/services and to inform customers through the sales

team.

It is used to sell less complex products/services.

It is used to sell complex products/services.

It has a massive reach. It has a limited reach.

It allows less personalization. It allows more personalization.

It is a more aggressive form of sales technique.

It is not an aggressive form of sales technique.

The focus is on informing the customers about a good offer

The focus is on developing strong customer relationships.

Text messages campaigns and database marketing are examples of

direct marketing.

A salesman selling a product is an example of personal selling.

4. Sales Promotion

Definition:

• “A sales promotion is a temporary

incentive to purchase a product”.

• A sales promotion is when you

concentrate almost all your promotional

efforts on sales campaigns to stimulate

quick and increased product purchases.

• Sales promotions are more of a tactical

approach that may involve providing

short-term incentives.

• Put simply, advertising provides a reason

to buy, and sales promotions provide a

reason to buy now.

4. Sales Promotion: Techniques

• Digital Promotions: Coupons or information about sales the customer receives.

• Samples: Smaller variations of a product that a customer can try for free.

• Coupons: Certificate to a lower price or additional item if the purchase requirements are met.

• Rebates: are a post-purchase option that requires consumers to complete steps to receive cash

back on their purchase.

• Price Pack: When multiple products are bundled together or sold in bulk at a lower cost per unit.

• Advertising Specialties: Branded low-cost items given as gifts to build relationships.

• Point of Purchase (POP): Displays of products, typically in the main walkway of a store, that

have seasonal or categorical relevance.

• Contests: Products can be associated with a contest by being a prize you win, such as a car.

• Event Marketing: Through sponsorships of major events.

5. Public Relations

Public Relations: Involves managing the public image and reputation of a company or brand.

• PR ensures coverage across radios, newspapers, press releases, television, social media, and

magazines to attract secondary exposure (and footfalls/traffic) from additional mentions.

Public Relations Campaigns:

• Media Relations: Develop and maintain relationships with media personnel to enable positive

coverage of the business;

• Press Releases: These are official statements issued to the media to provide information or make

announcements.

• Events: Hosting, sponsoring, or even participating in events, especially those with environmental

and societal impact, can attract media attention and help project a selfless image of the business.

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Multichannel and

Omnichannel Management

Video: https://www.youtube.com/watch?v=5MD0t2mUZMg

Omnichannel Marketing

Definition: Is an integrated marketing communication approach that helps brands with consistent

messaging and strong branding across all marketing channels.

• Brands use multiple channels, such as offline and online channels, to deliver a consistent message

to existing and potential customers.

• Consistent messaging builds the brand's credibility and reinforces the customer's association with

the brand.

• It also helps in providing a seamless customer experience across all marketing channels.

• From the customer's first interaction with the brand to the last, omnichannel marketing provides an

impactful customer experience throughout the sales funnel.

Benefits: Improved data analysis, Better brand visibility, Increased engagement, Improved customer

experience, and Increased revenue.

Disadvantages: Complexity, Cost, and Communication.

Omnichannel Marketing – Strategy

1. Data Collection and Analysis: It enables brands to understand customers' preferences and

provide solutions accordingly.

• Through data, brands can create messages and incorporate marketing channels that work best with their target audience.

2. Map Out Customer Journey: The customer journey offers insights into the different stages of the

sales funnel.

• Highlights the critical factors at various stages of a customer journey – from discovering a particular product to finally buying the product.

3. Select the Proper Marketing Channels: Here they need to select the right marketing channels that

work best for them.

• They can either utilize all the marketing channels or choose some of them.

4. Implement: The goal here is to deliver a consistent message to the customers across the selected

marketing channels at different stages of the customer journey.

5. Evaluate: Evaluating the progress allows them to improve and optimize the process.

Definition: Multichannel marketing refers to the practice of interacting with customers using a

combination of indirect and direct communication

• Channels, such as websites, retail stores, mail order catalogs, direct mail, email, mobile, etc.

Benefits from a multichannel marketing strategy are:

• Increased Brand Awareness: When you’re interacting across multiple platforms, your users

recognize you easier and your brand gains more attention.

• Improved Conversions: Being available via a customer's chosen channel directly aligns your

brand with higher levels of engagement and conversions.

• Higher Revenues: More opportunities to purchase across channels means customers will

purchase more readily, translating into additional transactions, more up-selling and more cross-

selling.

Multichannel Marketing

Benefits from a multichannel marketing strategy are:

• Better Customer Knowledge: Every channel and touch point provides customer insights. Track

how users interact across all your channels and you can learn more about their preferences to

further personalizes the experience.

• Expanded Content Reach: If you invest in quality content but not a proper distribution you aren't

maximizing your return. Spreading your content beyond your website with multiple channels such

as email, social, affiliates, etc. will help increase your authority in the space.

• Elevated Brand Consistency: A multi channel strategy requires your brand messaging to be

consistent across all channels. This exercise will likely cause you to review and improve your

existing brand consistency.

Key Fundamentals:

Marketers must understand their audience, Targeted messaging at key moments, and Automation of

campaigns.

Multichannel Marketing

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Brand Tracking

Video: https://www.youtube.com/watch?v=ZbPUi247wI8

Brand Tracking

Definition:

• “Brand Tracking is the ongoing measurement of

your brand-building efforts against key metrics,

such as brand awareness and perception”.

• “Brand tracking is an ongoing process that

involves monitoring and measuring various

aspects of a brand’s performance, perception,

and presence in the marketplace over time”.

• Trackers help brand owners to understand brand

health and make informed decisions to increase

sales, deliver greater return on marketing

investment, and win market share.

Brand Tracking – How to Track your Brand?

1. Set Objectives and KPIs:

• Clearly state what you want to achieve with brand tracking.

2. Utilize Brand Tracking Methods:

• Tracking a brand involves utilizing various methods and brand tracking tools to collect and analyze

data from different sources.

• Brand Tracking Methods:

• Brand tracking surveys: surveys provide valuable insights into how a brand is perceived by its target audience, how it compares to competitors, and how it is evolving in the minds of consumers.

• Media monitoring: It involves scanning various channels such as news, forums, blogs, podcasts, newsletters, reviews, and social media platforms for mentions and discussions about your brand, products, or services.

Brand Tracking – How to Track your Brand?

• Brand Tracking Methods:

• Online analytics: Tools like Google Analytics provide measurable metrics that can be utilized to evaluate different aspects of brand performance. These metrics include website traffic, engagement, conversion rates, and more.

• Reviews and ratings analysis: Reviews and ratings analysis can be a powerful tool, as it provides direct insights into how customers perceive and experience your brand’s products, services, and overall customer experience.

• Sales data analysis: Understanding which products or services contribute most to your revenue can help you focus your brand’s direction.

3. Collect and Analyze Data:

• Using all these sources gives you a more comprehensive understanding of your brand, from public

perception to user behavior to financial performance.

Brand Tracking – How to Track your Brand?

4. Monitor Continuously:

• Knowing what the public is saying about your brand (media monitoring), how they interact with you

online (analytics), how they feel (surveys), and how these factors influence buying decisions (sales

data) allows for a nuanced, data-driven brand strategy.

The Benefits of Brand Tracking:

• Gives marketers a big-picture view of a brand’s position in the market.

• Provides insights into the competition.

• Segmentation insights for receptive audiences that were previously overlooked.

• Reputation building among customers and potential employees.

• Identify pain points for customers.

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Sales Promotion Plan

Video: https://www.youtube.com/watch?v=96v8vjhL4Ok

Sales Promotion Plan

Definition: A temporary campaign or offer to increase interest or demand in its product or service.

Types of Sales Promotions:

• Cashback: A sales promotion that customers are offered a percentage of their purchase price back

in cash after they make a purchase.

• Gift with Purchase: Retailers or brands incentivize customers to make a purchase by offering a

free gift with their purchase, usually related to the product being sold.

• Trade-in: With this type of promotion, customers can bring in their old product and receive a

discount or credit towards the purchase of a new one.

• Sweep Stakes: Customers have an opportunity to score an exciting prize in a random drawing. To

enter, customers usually need to complete a specific action, like making a purchase, filling out a

survey, or submitting their contact information.

• Instant Win: A sales promotion that offers customers the chance to win a prize on the spot, rather

than through a random drawing later.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 1: Define Your Goals

• Set a Strong Foundation: Start with well-defined and measurable goals for your campaign.

• Identify Desired Outcomes: Clearly state what you aim to achieve, such as new customer

acquisition or increased sales.

• Be Precise: Use quantifiable targets to drive actions and decisions throughout the planning process.

Step 2: Identify Your Target Audience

• Know Your Audience: Understand who your target customers are and what drives their purchasing

decisions.

• Collect Data: Use surveys, social media insights, and customer interviews to gather information

about your audience.

• Analyse and Identify: Pinpoint common demographics, behaviors, and preferences among your

customers.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 3: Choose Your Promotion Type

• Determine the Offer Value: Set the value of your offer. You want to make sure that it is substantial

enough to attract attention but not so large that it hurts your bottom line.

• Establish Offer Terms: Define the duration, redemption method, and limitations clearly.

• Get Creative: Create spend thresholds, loyalty programs, and/or create challenges.

Step 4: Craft Compelling Messaging

• Align with Brand Values: Ensure your messaging is consistent with your brand identity and values.

• Highlight Benefits: Clearly communicate the advantages of your promotion to your audience.

• Use Attention-Grabbing Elements: Employ catchy headlines, strong calls to action, and compelling

visuals.

• Showcase Unique Features: Emphasise aspects that differentiate your product or service.

• Optimise Visibility: Make your promotion easily accessible and visible to your audience.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 5: Selecting Your Channels and Timing

• Select Appropriate Channels: Choose the marketing channels most likely to reach your target

audience.

• Maintain Messaging Consistency: Ensure uniformity across all channels to build brand

recognition and trust.

• Focus on Timing: Launch your promotion during slow sales periods to maximize impact and boost

sales.

• Track and Measure Results: Monitor the effectiveness of each channel to refine your promotional

strategy for future campaigns.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 6: Set Your Promotion Budget

• Use Past Data: Analyse previous campaigns to help evaluate costs and set a realistic budget.

• Account for Fixed Costs: Include expenses related to promotional materials or activities, such as

creative development, market research, and training.

• Consider Variable Costs: Factor in expenses that change with sales promotion activity, including

incentive costs, media advertising, sales commissions, and shipping.

• Consider Promotion Insurance: Fix the price of your promotion for financial stability and peace

of mind, regardless of the number of redemptions.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 7: Conduct a Risk Assessment

• Market and Economic Landscape: Consider any external factors that may affect the success of

your promotion, such as changes in the market or economic landscape.

• Competitors: Analyze the recent activities of your competitors to gain insights into how the market

has responded to their promotions.

• Lead Times and Resources: Assess your lead times and resources required to execute your

promotion. Consider any potential bottlenecks or delays that may impact the successful launch of

your promotion.

• Packaging and Logistics: Ensure that all products, materials, and prizes are available and can be

shipped in a timely and cost-effective manner.

• Legal and Compliance: Ensure that your promotion complies with all applicable laws and

regulations, including data protection and privacy laws. Develop proper terms and conditions for

your promotion and ensure that your team is aware of all legal implications.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 8: Plan Your Promotion Activity Timeline

• Identify Key Milestones: Start by identifying the key milestones for your promotion, such as the

launch date, the end date, and any important events or deadlines.

• Breakdown Tasks: Once you have identified the key milestones, break down the tasks required to

achieve each milestone. Assign deadlines to each task, and make sure they are achievable.

• Assign Responsibilities: Assign responsibilities for each task to specific team members or

departments. Make sure everyone knows their role and is clear on what is expected of them.

• Use a Project Management Tool: Consider using a project management tool to help plan and

track your promotion timeline (assign tasks, set deadlines, and track progress).

• Build in Buffer Time: Allow for buffer time in your timeline in case of unexpected delays or

changes. This will help you stay on track even if something unexpected comes up.

• Test your promotion before launch: Testing your promotion before launch can help you identify

any issues or glitches and ensure that everything is working properly.

• Allow enough time in your timeline for testing and make any necessary adjustments based on the results.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 9: Launch Your Promotion

• It’s time to launch your promotion! Keep in mind that launching your promotion is just the

beginning.

• It’s important to monitor your promotion closely and track your progress towards your goals.

• You may need to adjust your promotion strategy based on customer feedback and other factors.

• Ensure you pay close and careful attention to the early results to you can react if necessary.

Step-by-Step Guide to Creating a Sales Promotion Plan

Step 10: Evaluate Your Promotion Performance

• Sales: Monitor sales during the promotion period, as well as before and after the promotion. This

will help you determine whether your promotion impact on sales, and by how much.

• Customer Behaviour: Observe any changes in customer behaviour during the promotion period.

For example, are customers buying more frequently or in larger quantities? Are they more likely to

return to your store or website?

• Website Traffic: Track the number of visitors to your website during the promotion period, as well

as any changes in website traffic sources. This will help you determine which channels are driving

the most traffic to your website.

• Social Media Engagement: Monitor engagement on your social media channels during the

promotion period. This includes likes, shares, comments, and mentions. This will help you

determine how successful your social media campaign has been.

• Customer Feedback: Collect feedback from customers who have participated in the promotion.

This will help you identify any areas for improvement in future campaigns, as well as provide

insight into what customers found appealing about the promotion.

Sales Promotions, Up-Selling, and Cross-Selling

Cross-Selling Definition: Cross-selling is the art of encouraging a customer to purchase related or

complementary products.

Upselling Definition: Upselling is when you offer a higher-priced product or service to a customer

who is already interested in making a purchase.

• The goal is to increase the value of the sale by incentivizing the customer to purchase higher-end

products or services.

Sales Promotion Definition: Encouraging first-time customers to try your products or services, or to

persuade existing customers to refer friends and family

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The Rise of Commerce Media

Video: https://www.youtube.com/watch?v=XJAGOwFYnSQ

The Rise of Commerce Media

Commerce: Online activities that relate to the buying and selling of goods and services, both online

and in-store.

Media: The digital advertising channels that reach or influence people with promotional content. This

includes but is not limited to paid display, paid search, retail media, video and CTV, and social media.

Commerce Media: Is advertising that connects shoppers with products and services throughout the

buying journey across both physical and digital touchpoints, linking advertising investment directly to

transactions.

• Commerce media is specifically tied to a retailer's e-commerce platform, which can serve ads, but

in a limited capacity.

• A true retail media network offers unified on-site, off-site and in-store capabilities.

• Using the term “commerce media” sells short the additional channels that can be powered by

retailers.

The Trends Fueling the Rise of Commerce Media

• Ecommerce is booming: The COVID-19 pandemic brought the world online to shop, and their

new online habits will continue post-pandemic.

• Worldwide ecommerce is predicted to approach $5T in 2021.

• How we can connect with consumers is changing: Growing privacy regulations and third-party

cookie deprecation have marketers and media owners looking for new ways to reach and monetize

audiences that are shopping online more than ever.

• First-party data is a huge opportunity for retailers: Because of the point above, marketers are

focused gathering and scaling first-party data.

• Connecting with retailers can be a win-win for both parties.

• Trade marketing is shifting to digital: Brand dollars are following their consumers online.

• 92% of EU and 76% of US brand advertisers say their growth depends on retail media advertising.

Six Reasons for Commerce Media’s Growth

Ecommerce’s Boom is Beginning to Stabilize:

• The rise of ecommerce since the start of the

COVID-19 pandemic is cooling down due to a

sense of new normalcy, the return of

consumers to work/school/entertainment,

geopolitical events, and other economic

factors.

• Commerce media is gaining ground because

it enables marketers to adjust to the changing

times with marketing solutions that drive visits

and conversions both online and offline.

Reasons for Commerce Media’s Growth

Consumers are Turning to the Open Internet

for their Shopping Needs:

• Research shows that more consumers than

ever before are starting their search journeys

on retail and brand websites – instead of

searching on Amazon or Google.

• With consumers bypassing online

marketplaces and search engines, commerce

media opens new opportunities for marketers

to connect with consumers on publishers and

retailers across the open internet at critical

search touch points.

Reasons for Commerce Media’s Growth

Privacy Regulations are Growing:

• Over the years, new regulations continue to

emerge to protect the privacy of consumers

and to create a more transparent ecommerce

experience.

• As a result, marketers and media owners are

looking for new ways to responsibly reach

consumers and monetize audiences – all

while acting in accordance with privacy laws

and the phase-out of third-party cookies.

• With a focus on first-party data and

responsible, addressable advertising,

commerce media is an attractive option for

those looking to future-proof their strategy.

Reasons for Commerce Media’s Growth

First-Party Data Strategies are Imperative:

• Marketers now prioritize gathering and

growing first-party data.

• Retailers are venturing into new ways to

monetize their first-party assets.

• By connecting marketers and media owners

to each other and to data, commerce media

helps all ecosystem players achieve their

first-party data goals.

Reasons for Commerce Media’s Growth

Proving ROI Makes All the Difference:

• Many companies lack qualitative metrics to

demonstrate the impact of their spend on

marketing, making it impossible to determine

a concrete analysis of activity performance

and define a fully informed budget for the

future.

• However, commerce media provides closed

loop reporting, so you can track ad spend to

product sales and fill in the gaps for ROI

analysis.

Reasons for Commerce Media’s Growth

“Head of Commerce” Roles are Emerging:

• Across industries, agencies and brands are

hiring Head of Commerce talent who bolster

business growth with a 360° approach to

commerce.

• The Head of Commerce prioritizes an

audience-based approach to marketing over

a channel by channel or retailer by retailer

approach.

• Commerce media gives this role the holistic

view they need, enabling them to activate

audiences and measure results across a

variety of channels and formats all from one

place.

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Full-Funnel Marketing Strategy

Video: https://www.youtube.com/watch?v=Xx75loJvFhg

Full-Funnel Marketing Strategy

Definition: Involves tailoring your marketing

messages to the particular stage of purchase a

customer is currently at.

• A marketing funnel is the purchase cycle

consumers go through from awareness to

loyalty.

• Rather than focusing only on sales, it considers

the entire 360-degree customer journey and

attempts to nurture relationships and build

better brand experiences.

Stages of the Marketing Funnel

1. Awareness: Brand awareness is familiarity with a brand, which could include knowledge of its

name, messaging, tone and style, values, and culture.

2. Consideration: The goal of consideration marketing is increasing the likelihood that consumers will

consider a certain brand and its products when shopping.

3. Conversion: The goal of the conversion stage is to encourage shoppers to purchase a product or

service because they believe the brand they’ve chosen is the right solution to their problem or meets

their need.

4. Loyalty: Brands can foster loyalty by providing a seamless purchase experience and delivering a

quality product or service.

Steps to Building Your Full-Funnel Marketing Strategy

1. Define Clear Objectives:

• Identify specific goals aligned with your business objectives for each stage of the funnel.

• Whether it's increasing brand awareness, driving engagement, or boosting conversions, clearly

define what success looks like for your marketing efforts.

2. Understand Your Audience:

• Conduct thorough research to understand your target audience's demographics, preferences,

behaviors, pain points, and motivations at each stage of the funnel.

• This insight will help tailor content and messaging to resonate with their needs and interests.

Steps to Building Your Full-Funnel Marketing Strategy

3. Create Compelling Content:

• Generate persuasive content tailored to guide potential customers towards making a decision.

• This includes providing detailed information, comparisons, testimonials, and compelling calls-to-

action to encourage conversions.

4. Optimize User Experience (UX):

• Ensure a seamless and user-friendly experience across all touchpoints.

• From website navigation to mobile responsiveness and content accessibility, prioritize a positive

user experience at every stage of the funnel.

Steps to Building Your Full-Funnel Marketing Strategy

5. Implement Marketing Automation:

• Use automation tools to streamline processes, nurture leads, and deliver personalized content

based on consumer behavior and engagement levels.

• Automation helps in maintaining consistent communication and guiding prospects through the

funnel.

6. Measure and Analyze Results:

• Regularly track and analyze key performance indicators (KPIs) specific to each stage of the funnel.

• Metrics like conversion rates, click-through rates, engagement metrics, and return on investment

(ROI) provide insights into the effectiveness of your marketing efforts.

Steps to Building Your Full-Funnel Marketing Strategy

7. Iterate and Optimize:

• Based on data-driven insights, continually refine and optimize your strategy.

• Test different approaches, channels, and messaging to improve performance and adapt to

changing consumer behaviors.

Notes: By integrating these steps into a cohesive strategy, businesses can effectively engage

consumers at every stage of the funnel, nurture leads, and drive conversions while continuously

refining their approach for optimal results.

Effective Tactics for Each Stage

Use Video Ads to Generate Awareness

• Video advertising is one of the most effective ways to generate awareness.

• Not only is one-third of all online activity spent watching video, but videos also generate higher

engagement, with prospects many times more likely to click a video ad than a banner ad.

Leverage Personalized Engagement to Drive Consideration

• At the consideration stage, focus on building desire for your brand.

• An effective way to do this is by sending interactive, personalized marketing messages which

deliver engaging and informative content based on your prospects’ behavior and interests.

Focus on High-Value Customers for More Conversions

• To drive action at the conversion stage, segment your warm prospects by demographics and

behavior and continue to deliver highly-personalized product recommendations.

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Thank you! Ryan Bytenski

[email protected]

BCOBM222 Marketing in Action Unit 8: Environmental and Ethical Aspects

Ryan Bytenski (MBA)

BCom., BCom Honors (Cum Laude)., PGDip., M.B.A.

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Ethical and Social Responsibility

Review

Ethical Marketing Principles

1. Transparency: An ethical marketing campaign will reveal all truths about the products to the

customer, including ingredients, components, and production processes.

2. Customer Data Protection: Ethical marketers don't disclose customer information without consent.

The information collected is only used to benefit the customers, e.g. recommending products that

match their previous purchases.

3. Human Rights Compliance: Marketing campaigns should not offend certain population groups by

criticizing their mistakes or flaws.

4. Sustainability: With environmentalism on the rise, companies should show how their products are

sustainable and ethically produced in marketing campaigns.

5. Customer Value: Ethical marketing should aim to bring as much value to the customer as possible

while limiting societal risks.

Ethical Norms

There are 6 ethical values that marketers are expected to uphold, and these are:

1. Honesty: Be forthright in dealings and offer value and integrity.

2. Responsibility: Accept consequences of marketing practices and serve the needs of customers of

all types, while being good stewards of the environment.

3. Fairness: Balance buyer needs and seller interest fairly and avoid manipulation in all forms while

protecting the information of the consumers.

4. Respect: Acknowledge basic human dignity of all the people involved through efforts to

communicate, understand and meet needs and appreciate contributions of others.

5. Transparency: Create a spirit of openness in the practice of marketing through communication,

constructive criticism, action, and disclosure.

6. Citizenship: Fulfill all legal, economic, philanthropic and societal responsibilities to all stakeholders

as well as giveback to the community and protect the ecological environment.

Practices to Ensure Marketing Ethics

Practices to ensure Marketing Ethics:

• Reveal all details of the product to customers.

• Refrain from disclosing customer information

without their consent.

• Avoid deceptive advertisements.

• Only promote products that are safe for

customers to use.

• Offer fair pricing.

• Abide by the state laws.

Benefits of Integrating Ethics into Marketing Strategy

• Moral Marketing Compass: This is especially

important in economic downturns, when unethical

practices become tempting.

• Win-Win Marketing: The focus on customer value

will increase company value.

• Keeps Marketing Legal: Reduces the risk of

cutting corners and turning a blind eye.

• Goodwill: Goodwill and strong reputation among

clients and associates are the benefits which

companies cannot afford to overlook.

• Improved Quality of Recruits and Increases

Retention: A good company attracts good

employees, suppliers, investors, and customers,

who will be happy to help the company to achieve

its goals.

Ethical Marketing Examples: Patagonia

Patagonia "Dont Buy This Jakcet" Campaign

Patagonia, an outdoor clothing and gear company, built its brand

around sustainability and social responsibility. Patagonia's

marketing campaigns emphasize its commitment to environmental

protection, fair labor practices, and transparency in its supply

chain.

In 2011, Patagonia ran an advertising campaign that urged

customers not to buy their jackets unless they really needed them

as a way to promote sustainable consumption. The company was

honest with its customers about the environmental impact of its

products and encouraged them to consider the true cost of their

purchases.

Video: https://www.youtube.com/watch?v=9N_MXCQzASs

Ethical Marketing Examples: The Body Shop’s

The Body Shop's "Forever Against Animal Testing" campaign

The Body Shop launched the "Forever Against Animal Testing"

campaign in 2017, which aimed to end animal testing in the

cosmetics industry. The company was open about the fact that

many cosmetic ingredients are still tested on animals, despite the

availability of alternative methods. The campaign encouraged

customers to sign a petition to ban animal testing in the industry

and raised awareness about the issue.

Video: https://www.youtube.com/watch?v=LTW5VSIBjFg

Main Aspects of Socially Responsible Marketing

• Consumer Orientation: This socially responsible practice teaches that companies should base

policies and operations on a consumer perspective.

• Innovation: Improving products and services in innovative manner improves the experience for

users.

• Value of the Product: A company that produces valuable products and focuses on offering the

customer great pricing, excellent experiences and great customer service will not have to resort to

pushy sales tactics and gimmicks.

• Sense of Mission: A clearly defined corporate mission will help companies be clear about their

plans, goals, and practices.

• Impact on Society: Socially responsible marketers are more focused on providing goods and

services consumers want, gaining feedback for improvement and giving back to the communities

that helped them become who they are.

Social Responsibility Marketing and Impacts

Marketing social responsibility is the process of attracting customers by using an ethical business

structure and supporting popular social causes.

Socially responsible marketing is a long-term investment that affects businesses in many ways,

including:

• Establishing a Brand: Social responsibility establishes a business's brand by representing its

values based on the social cause it chooses.

• Becoming More Competitive: Consumers prefer doing business with ethical companies, by

incorporating social marketing, a company can show consumers it listens to them and responds to

social demands.

• Proving its Commitment: Building trust with a consumer base requires a business to prove that it

follows through on promises.

Social Responsibility Marketing and Impacts

Socially responsible marketing is a long-term investment that affects businesses in many ways,

including:

• Improving Morale and Work Culture: Responsible marketing involves more than growing profits.

It's a matter of the company using its voice ethically.

• Developing Customer Loyalty: Companies that take part in social projects can draw consumers

who care about business ethics.

• Generating a Reputation: When businesses incorporate social marketing, it comes under

increased scrutiny.

• Growing Profits and Business Value: Depending on the social cause, businesses can reduce

operational costs through ethical initiatives.

• Becoming More Appealing to Investors: Investors often prefer to support companies that partake

in socially responsible causes.

What is Marketing Social Responsibility?

Ethical & Social Responsible Marketing Categories Include:

• Children’s Interests: This campaign involves providing social resources and supporting children's

activities, including sports, academics, and toys.

• Healthcare Initiatives: Medical topics personalize marketing campaigns and include topics such as

diabetes, heart health, and Alzheimer's.

• Environmental Friendliness: A universally accepted approach that involves reducing your carbon

footprint and promoting a healthy ecosystem.

• LGBTQ + Support: This social topic can show diversity and inclusivity for liberal markets and

provide a sense of community engagement.

• Food Support Systems: Participating in food bank initiatives and school lunch and breakfast

campaigns shows a dedication to the local community and healthcare.

• Housing Support Structures: This social approach involves supporting non-profits and businesses

with ties to ethical community housing initiatives.

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Sustainable Marketing

Video: https://www.youtube.com/watch?v=kTXCtsEhvRM

Sustainable Marketing

“Sustainable marketing is an approach to marketing that considers the environmental and social

impact of a company's products or services”.

“Sustainable marketing is a purpose-driven practice that works to orientate businesses, brands and

society towards a sustainable future, influencing appropriate awareness, aspiration, adoption and

action across economic and sociocultural systems by taking necessary accountability for its impacts

and opportunities. In doing so, it acts in service of long-term wellbeing for all”.

Principals of Sustainable Marketing:

• Your Plan is Long-Term.

• Your Plan is Consistent.

• Your Strategy is Fully Integrated Across Your Business.

Sustainable Marketing Strategy: Levels

1. Doing Less Bad:

• Focus on change within existing structures or arrangements.

• 3 Attributes:

• Production Conditions: How products are made, (e.g. child labor, working conditions, emissions from production).

• Product Characteristics: What the product contains and what it does, (e.g. CO2 emissions of use, chemicals).

• Exposures and Risks: How product use affects people and the environment, (e.g. VOCs, trans-fats).

• Doing Less Bad doesn’t challenge notions of private consumption or

product ownership.

• Those considerations come with Doing More Good and Doing

Different.

Sustainable Marketing Strategy: Levels

2. Doing More Good:

• Acknowledges that current consumption levels are

unsustainable, usually reflecting on either inequity

between developed and developing nations or the

Earths’ limited resources.

• Doing More Good is focused on promoting sustainable

lifestyles.

• 3 Key Shifts:

• From individual ownership to leasing and sharing.

• From customer focus to external stakeholder focus.

• From sales orientation to an education orientation.

Sustainable Marketing Strategy: Levels

3. Doing Different:

• Focused on promoting sustainable systems

and institutions, in addition to the lifestyles

and products.

• There is an emphasis on promoting and

supporting social enterprise since Doing

Different recognizes that many products

and consumption models need to be

disrupted.

• Marketing can help support the disruptions

that emerge from start-ups focused on

profitable ways of addressing social and

environmental issues.

The 4 C’s of The Sustainable Marketing Mix

• Consumer Solution: Products and services that delight customers while outperforming alternatives

on human health, community impact, and environmental performance.

• Consumer Price: Pricing strategies that reflect full life cycle costs upstream (e.g. sourcing) and

positive impact downstream (e.g. return, re-use, recycle);

• Includes pricing and product strategies for remanufactured products and those serving low- income communities.

• Convenience: Features and benefits that lower the total customer cost for accessing the product or

service, and for returning it in the case of take back programs (e.g. cell phones).

• Communication: Product claims are supported by sound research and made transparent to the

customer.

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Green Marketing &

Greenwashing

Video (Greenwashing): https://www.youtube.com/watch?v=9UkT5At-3Og

Video (Green Marketing): https://www.youtube.com/watch?v=n_kf7bpOk00

Green Marketing

“Green marketing is when a company promotes environmentally friendly or sustainable products

and/or business practices”.

• For example, if your packaging is made from 100% recycled paper products, and you share this in your marketing or brand-building initiatives, this is green marketing.

• Examples of Green Marketing:

• Products are manufactured locally.

• Raw materials are certified to be from sustainable sources.

• People are paid a fair wage and provided with ethical working conditions.

• The company donates a percentage of profits to rainforest rehabilitation initiatives.

• What’s the difference between Green Marketing vs Greenwashing?

• Green marketing is when a company honestly lives up to its green and sustainability claims. It’s honest and transparent. Greenwashing is when a company does not live up to (or is perceived to live up to) its green and sustainability claims.

Greenwashing

“Greenwashing is when a company is (purposefully or is perceived to be) making false claims about its

green and sustainability initiatives.”

• It doesn’t matter if greenwashing allegations are true or false. They can have devastating effects on your business.

• Examples of Greenwashing:

• Claiming your packaging is made from 100% recycled plastic (when it’s not or is less than 100%).

• Saying your product produces no harmful CO2 emissions, but it failed that certification test, or you never submitted for certification.

• Telling the world you have “strong environmental conservation values,” yet you don’t have any environmental standards or initiatives.

• Using words like “certified” when you’re not certified or accredited by a third party.

• Using vague words like eco-friendly, organic, natural, and green without the facts to support these claims.

Greenwashing: Examples

• H&M Clothing Brand: They promoted a “green” men’s shirt made from “100% organic cotton” as a

sustainably made shirt. In fact, we know it takes about 20,000 litres of water to produce cotton, so

critics questioned whether that is still considered an environmentally friendly shirt.

• McDonalds: In 2018, fast-food giant McDonald’s introduced paper straws to be more eco-friendly

and recyclable. However, they were discovered to be too thick for recycling plants to process.

• Ikea: Ikea uses a lot of wood in its products, but in 2020, they were called out for not ethically

sourcing its wood products. It was discovered that they were using illegally logged wood. In their

defense, the wood they purchased was FSC certified, so this case also raised concerns about the

FSC ethics and transparency.

• Ryanair: This discount airline made false claims regarding the emissions of their planes. Ryanair

claimed to be the lowest emission airline in Europe, yet they were proven wrong, and their ads

were pulled.

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Marketing to Children & Elderly

Marketing to Children

• Specific vulnerabilities of children should be taken into account when designing advertisement or

marketing techniques that are likely to be seen by children.

• (Online) Service providers must not design or operate their interface in a manner that deceives children unduly influences them to take a particular action.

• Certain marketing techniques, e.g., personalised marketing, could be inappropriate to use due to the specific vulnerabilities of children.

• Children’s particular vulnerability because of their age or credulity is not to be exploited.

• When general marketing content is addressed to children or is likely to be seen by them, the

marketing purpose should be indicated in a manner that is appropriate and clear for children.

• Children are not to be targeted, urged or otherwise prompted to purchase in-app or in-game

content, and games marketed for free should not require in-app or in-game purchases to play them

in a satisfactory manner.

• Children should not be profiled for advertisement purposes.

Marketing to the Elderly: Best Practices

• Adjust the Relevant Criteria: When selling a product, the basic goal isn’t to sell the product, but

rather, what the product can do for the customer.

• Use Multi-Channel Marketing: Use a multi-channel approach that includes both more traditional

advertising and digital marketing strategies.

• Personalize Their Experience: They value being able to reach a real person for their concerns

and will likely be more comfortable with phone calls over texts or automated chats.

• Retargeting: It allows marketers to continue reaching seniors who have visited a landing page or

expressed interest in a product or service, without ever having followed through.

• Value-Added Marketing: A value added piece can be an objective, informational piece, a small

gift, or something useful like a checklist or a calendar.

• Educate: Older consumers tend to be slower to purchase, so take the time to help your senior

customers understand your product and how it’s used. Because the world and technology have

evolved so rapidly, this is especially important with any products that may not have been around

when seniors were younger.

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The Role of ESG and Purpose

Video: https://www.youtube.com/watch?v=AkbGz3CYvqE

ESG (Environmental, Social, & Governance)

“ESG is a framework that helps stakeholders understand how an organization is managing risks and

opportunities related to environmental, social, and governance criteria”.

• ESG takes the holistic view that sustainability extends beyond just environmental issues.

1. Environmental: Environmental factors refer to an organization’s environmental impact(s) and risk

management practices.

• These include direct and indirect greenhouse gas emissions, management’s stewardship over natural resources, and the firm’s overall resiliency against physical climate risks (like climate change, flooding, and fires).

2. Social: The social pillar refers to an organization’s relationships with stakeholders.

• Includes fair wages and employee engagement and an organization’s impact on the communities in which it operates.

3. Governance: Corporate governance refers to how an organization is led and managed.

• Understand better how leadership’s incentives are aligned with stakeholder expectations, how shareholder rights are viewed and honored, and what types of internal controls exist to promote transparency and accountability on the part of leadership.

Why ESG is Important in the Workplace

ESG create more fulfilling work environments where people can thrive and business can grow.

• Risk Management: ESG factors can be used to identify and manage potential risks that may

impact a company’s financial performance or reputation.

• Competitive Advantage: Consumers and investors are increasingly looking for companies that

are active in sustainability and social responsibility, and companies that do so may be more

attractive to these stakeholders.

• Reputation: A company seen as a leader in sustainability may enhance its reputation and attract

positive attention from stakeholders.

• Innovation: A company that focuses on reducing its carbon footprint may develop new

technologies and processes that are more efficient and cost-effective.

ESG: Environmental Pillar

What Falls Under The Environmental Pillar?

• Emissions such as greenhouse gases and air, water and ground

pollution emissions.

• Resources use such as whether a company uses virgin or recycled

materials in its production processes and how a company ensures

that from cradle to grave the maximum material in their product is

cycled back into the economy rather than ending up in a landfill.

• Similarly, companies are expected to be good stewards of water

resources.

• Land use concerns like deforestation and biodiversity disclosures

also fall under the Environmental Pillar.

• Companies also report on positive sustainability impacts they

might have, which may translate into long-term business

advantage.

ESG: Environmental Pillar

What Falls Under The Environmental Pillar?

• Emissions such as greenhouse gases and air, water and ground

pollution emissions.

• Resources use such as whether a company uses virgin or recycled

materials in its production processes and how a company ensures

that from cradle to grave the maximum material in their product is

cycled back into the economy rather than ending up in a landfill.

• Similarly, companies are expected to be good stewards of water

resources.

• Land use concerns like deforestation and biodiversity disclosures

also fall under the Environmental Pillar.

• Companies also report on positive sustainability impacts they

might have, which may translate into long-term business

advantage.

ESG: Social Pillar

What Falls Under The Social Pillar?

• Under the Social Pillar companies report on how they manage their

employee development and labour practices.

• They report on product liabilities regarding the safety and quality of

their product.

• They also report on their supply chain labour and health and safety

standards and controversial sourcing issues.

• Where relevant companies are expected to report on how they

provide access to their products and services to underprivileged

social groups.

ESG: Governance Pillar

What Falls Under The Environmental Pillar?

• The main issues reported under the Governance Pillar are

shareholders rights, board diversity, how executives are

compensated and how their compensation is aligned with

the company’s sustainability performance.

• It also includes matters of corporate behaviour such as

anti-competitive practices and corruption.

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Thank you! Ryan Bytenski

[email protected]