This chapter illustrates the transition of direct mail to direct response marketing to today's direct marketing is unique. The brilliance of TV advertising has been developed about as far as it can go. It has evolved into an extraordinary new human language all its own. For advertisers who have a product with a broad enough appeal and big enough budget, it can be unmatched for effectiveness in creating excitement and desire. The creative challenge posed by individualized marketing is to find ways to recreate the same values of a good conversation in the advertising communications, and to find opportunities to do so. During the '80s, direct marketing as a concept spread from the direct order marketers [mail order] such as the book and record clubs, to the banks, the airlines, the hotels and other service companies, and finally to many manufacturers and retailers.
If you choose to enroll in this minor, you will be one of a very few select students to receive a minor in Advertising/Integrated Marketing Communications from a College of Business. The emphasis of your minor will not be in the creation of copy or illustration, but in developing integrated marketing communication campaigns that effectively convey an organization's message through the strategic combination of advertising, direct marketing, sales promotion and public relations techniques. As a graduate with this minor, you will be highly sought by companies and/or ad agencies looking for people with a solid grounding in business that are capable of managing client relationships and building marketing success. You will learn such concepts as:
The marketing mix is actually a list of categories of marketing variables, and to begin with this way of defining or describing a phenomenon can never be considered a very valid one. Theoretically, the marketing mix became just a list of P's without roots. This chapter discusses the emerging theories and models of the interaction/network approach to industrial marketing and the marketing of services. It describes the relationship marketing concept. An integral element of the relationship marketing approach is the promise concept, which had been strongly emphasized by Henrik Calonius e.g. Relationship marketing is still in its infancy as a marketing concept. However, relationship marketing is clearly the underlying approach in several books on service marketing e.g. But according to the relationship marketing approach and contemporary models of industrial marketing and service marketing they do undoubtedly belong to this function.
Despite new privacy rules and regulations, such as the European Union’s General Data and Protection Regulation and the pending California Consumer Protection Act, not all consumers feel the need for data protection. Recent research has shown that 20–25 per cent of the US adult population are willing to share their personal data with marketers they ‘trust’. The marketing challenge thus becomes how to identify these willing ‘data sharers’. Using a widely available data set, this study illustrates several ‘Big Data-based’ segmentation methodologies to screen this important segment out of the general population, ranging from factor analysis to chi-squared automatic interaction detector (CHAID) decision trees. The results of these analyses identify some unexpected potential segments among these ‘data sharer’ groups, most notably young men who participate in team sports. Thus, the paper argues that rather than looking at privacy regulation as a burden, marketers might well consider it a key element in their toolbox.
In this exploratory study, multiple consumer online and offline actions, along with external factors were analyzed and then fused with existing and gathered in-store consumer behavioral data sets to develop a richer and more complete view of the various interactions which lead to consumer bonding to a retail chain. While the time period analyzed was limited, the richness and detail of the data enabled a more complete view of how online consumer activities interact with and explain in-store consumer behaviors and the sales results which occur. In addition, two other external variables, weather and adjacency of competitive retail facilities, were used to enhance the “real world” situation in which consumers operate. These provide additional insights into why consumers interact with retailers the way they do. This analysis provides guidelines and insights into the potential value of more detailed and complex retail store/consumer analyses going forward. Based on the results of this initial study, it appears the approaches used in this analysis are transferrable to other situations and might be used around the globe. Of great importance is evidence that a grounded theory approach (Ellis 1993) might be the optimal one in analyzing consumer behavior at the retail level. The authors argue that it is the combining of multiple inputs that enables the exploration of big data using a “test, evaluate, and measure” approach, which provides the greatest insights into how consumers actually behave in the marketplace. They further argue that this approach likely surpasses traditional limited hypothesis testing now used in retail analytics. References Available Upon Request
In current digitally-empowering contexts, the Integrated Marketing Communications (IMC) paradigm may have lost its 'original' customer-centric focus. Drawing on service-dominant logic, the paper examines the changes to IMC when multiple sources of consumer power emerge as central in the value creation process. This change in the focus of IMC likely enables the emergence of negotiated brands, i.e. brands that focus on a marketplace where traditional marketer-created brand value may be replaced by buyer and seller co-created value. The paper argues that this novel type of brand structure represents an appropriate managerial response to multidimensional IMC approaches. As that occurs, four key issues (community-centric orientation, emergent strategy, hybrid communication mix, reciprocity-based assessment) emerge which lead to a number of research questions in the planning and execution of marketing communications in today's digitally-empowered contexts. All these issues clearly highlight the consumers' contributions to brand value co-creation, by reaffirming the 'original' outside-in perspective of IMC.
This paper conceptualises replication research as being one of the most needed areas of ongoing academic activity. Using George the Galapagos tortoise as a metaphor for the lack of replication research, it is argued that only by replicating research studies over time can solid theory be developed. For the most part, advertising and marketing communication research consists of non-replicated, one-shot, point-in-time experiments which, once accepted and published by a journal, becomes the litany of the academic community and is then deified by the citation process. The paper begins by reviewing the background of replication research in the marketing communication domain and applies it to current thinking and publication trends. Reasons for the lack of replication research are presented and some conclusions are drawn for those seeking to confirm or challenge existing research. An agenda is provided for the development and publication of replication research.
Clearly, marketing, marketing communications and advertising are in the midst of multiple major technological evolutions. (Sheth and Parvatiyar, 1995). While media and media systems have and are continuing to change dramatically, i.e. witness the growth of new media forms such as interactivity between buyers and sellers, new social and digital forms, the availability of extensive and enhanced consumer marketplace knowledge and understanding and, even the radical changes brought about by programmatic media buying systems (Shultz 2016). The base for most media selection and purchase is still generally the same, i.e., a focus on demographics as audience identifiers and financial cost-per message distributed, i.e., Cost-per-Thousand (CPM), factors which have been place without change for at least the past 50 years (Shultz 2016). So, while media forms have changed substantially, the actual practice and tools on which media planning and buying are conducted essentially have not. Introduction In this paper, we address this lack of innovation and propose some new thinking and new tools for media planning. We argue that the new media forms we see developing and emerging demand new methodologies in terms of how media forms are evaluated, selected and how investment and purchasing decisions are made. Without change, the entire field of media planning and buying risks increased wastage as a result of ill-planned and ill-timed media expenditures. These problems, if not addressed, will challenge the credibility and value of the entire advertising process. While radical change is clearly needed, in this paper we argue initially for limited changes/adaptations to existing methodologies through the use of existing and proven resources. We see our recommendations as essentially transition approaches which can be used until more sophisticated methodologies using such new tools as Artificial Intelligence (AI), machine learning and deep thinking can be brought on line. Our primary argument is that we must base our future media planning and buying on consumer media consumption rather than on marketer-driven media distribution. That, we argue, is a far better approach to media planning and investing than what is currently being used. Today’s approach, using the present system of guesses, estimates and projections by various media research firms of audience size and composition is fraught with problems which have been known for years (Napoli 2012). Instead, by using the media forms consumers report they use and the amount of time spent with each of those, even if self-reported as are those in this paper, would enable far better media plans to be developed compared to those currently being developed and distributed today. While this use of media consumption is not a new idea, and they demonstrated that approaches’ viability over a decade ago, the industry has been slow to follow this new pathway (Schultz, Pilotta and Block 2006). In this exploratory paper, we develop a set of new models which help the planner understand various factors which influence media consumption, and thus, the potential for consumer message exposure and acceptance. We argue that by knowing what impacts and influences consumer media usage and consumption, the planner can better forecast the likelihood that a certain person or population will be using a specific media form in advance of its distribution as opposed to waiting until the media forms have been distributed and guessing at the results. More important, the factors used in this new methodology are all behavioral, that is, we know the consumer actually behaved in a certain way rather than relying on traditional demographic factor that have been traditionally used. When compared to the current methods of post-hoc audience estimates or measurements the value of this new methodology becomes obvious. We demonstrate this methodology through examples based on media usage among a nationally projectable test bank of consumers as discussed below. The process used is described in this way: We start with (a) a short background on the data set used to create our analysis and from that, our recommended approach. That is followed by examples of media consumption (b) as reported by our sample over the past twelve years. Note: our focus is focused primarily on data in the 2017 MBI. That is followed by a factor analysis (c) of the consumer’s behavioral activities as reported by the sample population which is then used to expand our planning process. We then introduce three primary factors we believe can be used to help expand and enhance the present approaches to media planning. That is followed by the results of series of regression models (d) which are used to predict a number of media consumption alternatives which might influence the media plan to be developed. We end with e) a final analysis which shows that our methodologies can enhance traditional media planning models for television media by a factor of at least 3.9 times. Note: at this point, in this analysis, we ignore any form of media interaction or enhancement as a result of this new planning process. While we believe those interactions likely occur, at this point, our tools and resources are too limited to appropriately identify them or include them in the discussion. This paper is essentially a description and discussion of what we propose as next steps in media planning. The tools have not been implemented in the marketplace, therefore our recommendations must be considered exploratory but ready for market testing by interested advertisers and marketers I. Population Used in the Research Base To develop this analysis and the resulting recommendations, we use data gathered by Prosper Insights & Analytics, Columbus, OH. Prosper has been capturing and analyzing online consumer data through questionnaires circulated among audiences (U.S. adults 18+) about their marketing, media, promotion and advertising activities for more than 20 years. The results are used by a wide variety of marketing organizations such as Wal-Mart, Disney, Kimberly-Clark and the National Retail Federation to plan and implement their promotional programs. One of Prosper’s primary syndicated services are the MEDIA BEHAVIORS AND INTENTIONS (MBI) annual survey. In this national study, using techniques similar to the ones employed by the U.S. Census Bureau, (Schultz, Block, and Viswanathan, 2016) Prosper captures the reported media usage of a representative sample of the U.S. population using a recall methodology. This approach requires respondents to report their media usage on an “average day”. This is based on minutes per day usage of each media form over the past week. The data used in this study is based on 16,664 respondents and was gathered in 2017. A. Time Spent with Media Exhibit #1 is a summary slide illustrating consumer responses to media questions in the MBI about their media consumption patterns over the past 13 years. The chart above shows the results of the MBI questionnaires for individual media consumption by the MBI panel reduced to minutes per day over the past 13 years. The minutes per day reported were computed from dayparts across weekday and weekends. The solid lines show reported usage time for television and the Internet while the dotted lines show the trend. As can be seen, the overall trend for TV usage is downward although there has been a slight increase in recent years. The Internet consumption has steadily increased and has now surpassed TV in minutes per day usage. The line near the bottom on the chart is newspaper usage which has steadily declined over the period. Note that social media usage, which only began to be reported in 2012 has grown rapidly since tracking began. B. Activities Engaged in by Respondents As part of the MBI studies, respondents are asked to also report their usage and involvement in a number of activities, all of which are behavioral in nature. These behavioral measures have proven useful to media planners and consumer behavior specialists seeking to better understand consumer lifestyles and potential product usage opportunities. Exhibit #2 shows a factor analysis of the 31 activities reported in the 2017 MBI study. As shown, eight factors were found. These accounted for 45.3% of all variance in the analysis. These activities and factors were then used to provide a base for the new media segments identified in this paper. These factors were used as behavioral measures in the analysis which follows. II. Additional Factors Used to Segment Media Usage To create the new media segments, respondents to the 2017 MBI study were asked to respond to several additional sets of questions in the initial surveys. Most of these were emotional or psychological variables which have been found to be useful in understanding consumer behaviors (Holbrook 1986). These were used to help construct the new media segments outlined in this paper. A. Adding the OCEAN Variables The first element added to the to the analysis of self-reported media usage were questions which enabled us to relate audiences based on their responses to the Five Factor Personality Model (commonly referred to as OCEAN) (Digman 1990). These personality studies, developed by Digman in 1990, have been widely used by psychologists and consumer behavior researchers to understand and apportion the general population based on various psychological variables (Digman 1990). We use them here to determine and understand more manageable and relevant groups. Content of each of the five variables which make up the OCEAN structures are shown in Exhibit #3. In the MBI research, on which this study is based, all respondents answered questions which allowed them to be allocated on those variables. The five factors included in the OCEAN model include (a) Extraversion, or factors which indicate an outgoing lifestyle in their behaviors, (b) Agreeableness, illustrated by people who show high degrees of cooper
We’ve known for decades that a chasm has existed between the professional or practitioner’s view of “advertising knowledge, practice, and application” and that of the academic or scholarly communit...
Marketing and marketing communications have changed dramatically over the past 50 years. This article traces the changes through a set of models, starting with Customer Marketing (CM) then Customer Relationship Marketing (CRM) and finally CN2, the Customer Networked/Negotiated system. Illustrative details are provided for each of the systems. Based on this evolution, a new academic/professional research agenda is proposed.