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1、Don E.SchultzPh.D.Dallas,TX Dallas,TX A View of the Interactive A View of the Interactive Marketplace at the Beginning Marketplace at the Beginning Of the Third Millenium-Of the Third Millenium-A Story in Five PartsA Story in Five PartsPart 1Part 1Traditional Marketing and Traditional Marketing and
2、Marketing Communication Marketing Communication Are in Trouble-Are in Trouble-What Are You Doing to Help?What Are You Doing to Help?Challenges:Challenges:uuuMarketing being pushed further Marketing being pushed further and further down in management and further down in management levels of the firml
3、evels of the firmuuuToo much marketing considered Too much marketing considered“soft,squishy,not relevant”“soft,squishy,not relevant”uuuMarketing expense increasing-Marketing expense increasing-few measures of returns few measures of returns uuuToo much attention to mass Too much attention to mass m
4、arket/mass media in world of market/mass media in world of one-to-oneone-to-oneuuuAwards,“creativity”,self-Awards,“creativity”,self-adulation adulation Most of All,the Impact and Most of All,the Impact and Influence of Electronic Influence of Electronic Communication and Communication and Commerce-I
5、nteractivityCommerce-InteractivityChanging the Marketing and Changing the Marketing and Communication Focus Communication Focus uuuFrom tactical activities to From tactical activities to strategic managerial decisionsstrategic managerial decisionsuuuDriving shareholder valueDriving shareholder value
6、uuuMeasurability and“outcomes”,Measurability and“outcomes”,not just“outputs”not just“outputs”Management Alternatives to Management Alternatives to Increase Shareholder ValueIncrease Shareholder ValueuuuInnovation in products or services Innovation in products or services uuuEnhancements in supply ch
7、ain Enhancements in supply chain managementmanagementuuuCustomer relationship Customer relationship management-expand marketing management-expand marketing capability capability How Can Marketing and How Can Marketing and Communication Impact Communication Impact Corporate Results?Corporate Results?
8、uuuIncrease or accelerate cash flowsIncrease or accelerate cash flowsuuuStabilize or reduce volatility of cash Stabilize or reduce volatility of cash flows flows uuuIncrease shareholder value by Increase shareholder value by building brand equity building brand equity Most Powerful Tools,Most Powerf
9、ul Tools,Brands and Communication!Brands and Communication!Both Are Woefully Both Are Woefully Underdeveloped in Many Underdeveloped in Many OrganizationsOrganizationsPrimary 21st Century Primary 21st Century Mission:Mission:Marketing and Marketing and Communication to Direct,Communication to Direct
10、,Drive and Fulfill Corporate Drive and Fulfill Corporate StrategyStrategyQuestions or Comments?Questions or Comments?Part 2Part 2Understanding the 21st Understanding the 21st Century Marketplace Century Marketplace The Challenge Is Transition The Challenge Is Transition Where Where We AreWe AreTrans
11、itionWhere Where We Need We Need To BeTo Be1980198019701970196019601990199020002000MarketplaceMarketplaceDevelopment Development Re-emergence ofcompetitionGlobalizationRise of QualityPrice CompetitionCost-CuttingRe-engineeringLogistics/DigitalizationTransition of Information TechnologyInteractiveMar
12、ketplaceProductProductConsumerConsumerDistributionDistributionThree Types of Organizations Three Types of Organizations Have Developed Have Developed HistoricalCurrentInteractiveProduct-Driven Organizations Product-Driven Organizations Focus on 4PsFocus on 4PsuuuProductProductuuuPricePriceuuuPlace(D
13、istribution)Place(Distribution)uuuPromotion Promotion Product-Driven Firms Product-Driven Firms RawRawRaw Materials Materials MaterialsTechnologyTechnologyTechnologyFacilitiesFacilitiesMoneyMoneyDistributionDistributionDistributionLocationLocationDistributionDistributionDistributionAggregationAggreg
14、ationNeeds/Needs/WantsWantsPurchasingPurchasingPowerPowerConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationDistribution-Driven Firms Distribution-Driven Firms Focus on:Focus on:uuuLocationLocationuuuLogisticsLogisticsuuuChannels Channels uuuUbiquity Ubiquity Distribution-Driven Dist
15、ribution-Driven Firms Firms DistributionDistributionConcentrationConcentrationLocationsLocationsTechnologyTechnologyConsumerConsumerMediaMediaMktr.Mktr.Mktr.Mktr.Mktr.Mktr.ChannelChannel(Logistics)(Logistics)InformationConsumer-Driven Firms Consumer-Driven Firms Focus on Focus on uuuConsumersConsume
16、rsuuuBrandsBrandsuuuRelationshipsRelationshipsuuuShareholder value Shareholder value Consumer-Driven Firms Consumer-Driven Firms Needs/WantsNeeds/WantsNeeds/WantsChoiceChoiceChoicePurchasing Purchasing Purchasing PowerPowerPowerTechnologyTechnologyTechnologyConsumerConsumerChannelChannelMktr.Mktr.Mk
17、tr.Mktr.Mktr.Mktr.ChannelChannelInformationMediaMediaMediaMediaMediaMediaUntil the Early 1990s,Until the Early 1990s,Every Organization Had to be Every Organization Had to be Either Product or Distribution Either Product or Distribution Driven Driven 1980198019701970196019601990199020002000Marketpla
18、ceMarketplaceDevelopment Development Re-emergence ofcompetitionGlobalizationRise of QualityPrice CompetitionCost-CuttingRe-engineeringLogistics/DigitalizationTransition of Information TechnologyInteractiveMarketplaceLack of Resources Prevented Lack of Resources Prevented Us from Knowing Much Us from
19、 Knowing Much About Consumers,About Consumers,Customers or ProspectsCustomers or ProspectsInformation Technology Information Technology Changed That!Changed That!ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProductProductMarketersMarketersConsumerConsumerInformationChannelChann
20、elMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDistributionMarketersMarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumerConsumerMarketersMarketersMediaMediaConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformation
21、ProductProductMarketersMarketersConsumerConsumerInformationChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDistribution Marketers MarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumerConsumerMarketersMarketersMedi
22、aMediaBut,But,Interactivity Has Created a Interactivity Has Created a Shift of Marketplace Power Shift of Marketplace Power Most Organizations Today Most Organizations Today Are Struggling with How to:Are Struggling with How to:uuuBecome consumer focusedBecome consumer focuseduuuMarket globallyMarke
23、t globallyuuuStructure the organization to fit Structure the organization to fit marketplacemarketplaceuuuIntegrate all the activities and Integrate all the activities and resources resources What to Do?What to Do?Questions or Comments?Questions or Comments?Part 3:Part 3:The Transition of Informatio
24、n The Transition of Information Technology Drives the Need Technology Drives the Need For Brands,Communication For Brands,Communication And Consumer Relationships And Consumer Relationships In the 21st Century,the Brand In the 21st Century,the Brand And Communication Will Be And Communication Will B
25、e The Firms Only Sustainable The Firms Only Sustainable Competitive Advantages Competitive Advantages uuuNo product advantageNo product advantageuuuNo price advantageNo price advantageuuuNo place/distribution advantageNo place/distribution advantageuuuNo promotion advantageNo promotion advantage The
26、 Shift of Information The Shift of Information Technology Forces the Technology Forces the Organization to Move from Organization to Move from The 4Ps to the 4Rs The 4Ps to the 4Rs ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProduct Product MarketersMarketersConsumerConsumerIn
27、formationChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDistribution Marketers MarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumer Consumer Marketers MarketersMediaMediaThe New 4Rs of MarketingThe New 4Rs of Ma
28、rketinguuuResponsiveness Responsiveness uuuRelevanceRelevanceuuuReceptivityReceptivityuuuRelationships Relationships All of Which Are Bound Up in All of Which Are Bound Up in Brands and Branding Brands and Branding MarketerConsumerBRANDBrands Are Relationships Brands Are Relationships The Reason the
29、 Brand The Reason the Brand Becomes More Important:Becomes More Important:Interactivity Is a Different Interactivity Is a Different Marketing ModelMarketing ModeluuuFrom“mass”to“interpersonal”From“mass”to“interpersonal”uuuFrom“marketer advantage”to From“marketer advantage”to“brand compatibility”“bra
30、nd compatibility”uuuFrom“short-term”to“long-From“short-term”to“long-term”term”uuuFrom“transactions”to From“transactions”to“relationships“relationshipsuuuFrom“persuasiveness”to From“persuasiveness”to“shared values”“shared values”Brands Create Reciprocity Brands Create Reciprocity With Consumers,With
31、Consumers,Not Marketer Advantage!Not Marketer Advantage!A New Brand-Consumer A New Brand-Consumer Model Is RequiredModel Is RequireduuuNot just the traditional value of Not just the traditional value of the consumer to the brand,I.e.,the consumer to the brand,I.e.,financial value to be extractedfina
32、ncial value to be extracteduuuInstead,value of the brand to the Instead,value of the brand to the customer or consumer-fills customer or consumer-fills needs,wants,desires,etc.in needs,wants,desires,etc.in addition to traditional value addition to traditional value A New Way to Think About Relations
33、hipsStarting Point:Starting Point:uuTwo entities in the relationship;two points of view to Two entities in the relationship;two points of view to consider-in this case consumers and brandsconsider-in this case consumers and brandsuuStrong Consumer-Brand relationships require some mutual Strong Consu
34、mer-Brand relationships require some mutual level of interestlevel of interestuuThis“mutual interest”is value-begin thinking about This“mutual interest”is value-begin thinking about relationships as a mutual value exchange relationships as a mutual value exchange New Consumer Brand Relationship Mode
35、lValue of the Brand to the Consumer(Consumer POV)Value of Consumer to the Brand(Brand POV)HIGHLOWHIGHLOWCurrent&Potential Value($)C-BCompatibilityRelationship Strength=Relationship Strength=f f(Consumer Value,C-B CompatibilityConsumer Value,C-B Compatibility)STRONGRelationshipsMODERATEWEAKMODERATEDe
36、fine&Assess C-B RelationshipsValue of the Brand to the Consumer(Consumer POV)Value of Consumer to the Brand(Brand POV)HIGHLOWHIGHLOWCurrent&Potential Value($)C-BCompatibilityRelationship Strength=Relationship Strength=f f(Consumer Value,C-B CompatibilityConsumer Value,C-B Compatibility)STRONGRetenti
37、on StrategiesMODERATEBusiness-Building StrategiesWEAKLow PriorityMODERATEBrand-Building StrategiesDefine&Assess C-B RelationshipsValue of the Brand to the Consumer(Consumer POV)Value of Consumer to the Brand(Brand POV)HIGHLOWHIGHLOWBehavioralDataAttitudinal DataRelationship Strength=Relationship Str
38、ength=f f(behaviors,attitudesbehaviors,attitudes)STRONGRetention StrategiesMODERATEBusiness-Building StrategiesWEAKLow PriorityMODERATEBrand-Building StrategiesDefine&Assess C-B Relationships C-B CompatibilityBrandBrandProduct offers Product offers CommunicationCommunication(image)(image)Marketing M
39、arketingcapabilitiescapabilitiesConsumerConsumerNeeds Needs MindsetsMindsetsEnvironmentsEnvironments Attitudinal Commitment to the Brand Customer Satisfaction Brand Share of PreferenceConsumers View Consumers View of the Brandof the BrandBehavioralCommitment(SOR)ConsumerValue(CBR)Brands View of Bran
40、ds View of the Consumerthe ConsumerAll Done in“Real Time”All Done in“Real Time”ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProduct Product MarketersMarketersConsumerConsumerInformationChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDistribution Marketers MarketersMedia
41、MediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumer Consumer Marketers MarketersMediaMediaThe Primary Way to Build The Primary Way to Build True Brand Value,i.e.,True Brand Value,i.e.,Relationships,Will be Relationships,Will be Throu
42、gh Integrating All Through Integrating All Forms of Marketing Forms of Marketing Communication Communication Product DesignProduct DesignPricingPricingDistributionDistributionAdvertisingAdvertisingSales PromotionSales PromotionIn-StoreIn-StoreDisplaysDisplaysDirectDirectMailMailCustomer ServiceCusto
43、mer ServiceConsumer View of BrandCommunicationTraditionalTraditionalMarketing andMarketing andCommunicationCommunicationConsumersConsumersand and ProspectsProspectsNewNewInteractiveInteractiveMarketingMarketingandandCommuni-Communi-cationcationMarketplace ResultsMarketplace ResultsBuilding and Maint
44、aining Building and Maintaining Brand Reciprocity May Brand Reciprocity May Become the Most Important Become the Most Important Activity for the FirmActivity for the FirmAnd,And,That Will Require a Whole That Will Require a Whole New Way of Thinking About,New Way of Thinking About,Investing in and M
45、easuring Investing in and Measuring The Results of Brand The Results of Brand ProgramsProgramsThe Conundrum:The Conundrum:uuuHow to build long-term,How to build long-term,consumer-brand value using a consumer-brand value using a short-term,interactive systemshort-term,interactive systemuuuHow to inv
46、est for long-term How to invest for long-term brand returns,using short-term,brand returns,using short-term,“real time”marketing activities“real time”marketing activitiesQuestions or Comments?Questions or Comments?Part 4Part 4Measuring the Financial Measuring the Financial Returns from Brand Returns
47、 from Brand Communication Programs Communication Programs In 1961,the Communications In 1961,the Communications Industry Abandoned Any Industry Abandoned Any Attempt to be Financially Attempt to be Financially Responsible Adults Responsible Adults uuuHierarchy of Effects theoryHierarchy of Effects t
48、heoryuuuDAGMAR DAGMAR Traditional“Advertising-Based”Traditional“Advertising-Based”View of CommunicationsView of CommunicationsConvictionPreferenceKnowledge Attitudes/AwarenessPurchaseBehaviorMediaAdver-tisingOne-WayOne-WayLinearLinear“Acting on Consumers”Those Attitudinal Measures Those Attitudinal
49、Measures Are Still Prevalent Are Still Prevalent uuuAttitude and awarenessAttitude and awarenessuuuRecall and recognitionRecall and recognitionuuuIntent-to-buyIntent-to-buyuuuTracking studiesTracking studiesuuuShare of voice Share of voice Despite the Fact that Despite the Fact that We Still Have Gr
50、eat TroubleWe Still Have Great TroubleConnecting Attitudes to Connecting Attitudes to Behaviors and Even More to Behaviors and Even More to Sales and Financial ReturnsSales and Financial ReturnsA Solution:A Solution:Measuring Consumer Measuring Consumer Behaviors Over TimeBehaviors Over Time uuuClos