Commercial Marketing

1. Commercial Marketing

2. Commercial Marketing Definitions • American Marketing Association (AMA): "Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals." • World Marketing Association (WMA): “Marketing is the core business philosophy which directs the processes of identifying and fulfilling the needs of individuals and organizations through exchanges which create superior value for all parties.” • Chartered Institute of Marketing (CIMU) [United Kingdom]: “Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably.”

3. A 6 word definition… • Marketing means solving customers' problems profitably.

4. SO, WHAT IS MARKETING? • Marketing is the analysis of customers, competitors, and a company. (Your book… Commercial marketing focuses on facilitating exchanges between a program or project and its target markets, including identifying and quantifying the target markets). • Successful marketing combines this understanding into an overall understanding of what segments exist, deciding on targeting the most profitable segments, positioning your products, and then doing what's necessary to deliver on that positioning. • How to do deliver on a positioning? • By branding correctly • By advertising correctly • By communicating correctly • all done in a way that is consistent with the analysis that marketing is really responsible for.

5. Key • Knowledge of the wants and needs of those in the target markets and segments, coupled with the ability to satisfy some of these wants and needs. • Perceived need • Expressed need • Normative need

6. Types of Market Segments • Demographic • Psychographic • Use-Based • Benefit • Geographic • Identification and quantification of target markets and segments is only the beginning of understanding their potential to produce actual demand for the services of a program

7. The 4 Ps of the “Exchange” Process • Product (tangible/intangible) • Price • Place • Promotion • The “Marketing Mix”

8. Marketing Myths… • “The customer is always right.” (Or, “the customer is king/queen/supreme” or “the customer knows best.”) Well, it is their money, so the customer is certainly always right in that sense. But, does “right” mean that customers can berate service personnel? Does “right” mean that we must, should or would sell at unprofitable prices just to prove that the customer's right? Hardly. • “Marketing research is too expensive.” How are customers' problems to be identified and solved without the right (presumably detailed) marketing intelligence? • “Marketing is what you say to your customers.” (Or, “marketing is advertising and sales.”) This is, of course, the oldest and poorest definition of marketing, denying the salience of product/service design, pricing, distribution and service support in the success of marketing products and services. • Everyone in the organization is the marketing department, since everyone should and must be concerned with solving customers' problems profitably.

9. Smart Marketing • Make it Easy for People to Understand What You Do • Boil Your Message Down to Its Core • Project a Polished Image • Business Cards • Websites/Communication

10. What did you think of the book?!

11. Commercial Marketing vs Social Marketing • Social Marketing Definitions… • Andreasen: The application of commercial marketing technologies to planning, implementing, and evaluating services that are designed to influence the voluntary behavior of target audiences in order to improve their personal welfare and that of society. • Smith: A process for influencing human behavior on a large scale, using marketing principles for the purpose of societal benefit rather than commercial profit. • Kotler (1971): The design, implementation, and control of programs calculated to influence the acceptability of social ideas. ************ Social norms marketing, Social advertising

12. Questions… • How do you perceive social marketing and commercial marketing being similar? Different? • How do you see “traditional” health promotion and social marketing being similar? Different?

13. Setting the Social Marketing Stage… • General introduction (NTCSM/RWJ/Andreasen information) • Exploring/discussing a case study • Beyond “Downstream” applications • Social Marketing: Improving the Quality of Life

15. Distinctive Features • Consumer orientation • Use commercial marketing technologies and theory • Voluntary behavior change • Targets specific audiences • Focus is on personal welfare and that of society

16. Traditional Approaches • Top down planning • Expert driven • Education • Persuasion • Behavioral modification

17. Traditional Approaches • Focusing on the “hard to reach” leads to these questions: • What is wrong with them? • Why don’t they understand this? • Why won’t they do what we are telling them to do?

18. Social Marketing Mind Set • What is wrong with our programs? • What do we need to offer them to offset their costs? • What would make our product more attractive than the competition?

19. Consumer Orientation • Understand consumers’ perceptions • Benefits • Barriers • Self efficacy • Social norms

20. Exchange Theory • Exchange time and money for benefits • Make an attractive offer • Create an awareness that the problem exists • Demonstrate the product’s benefits • Help lower the price

21. Competition • They can go somewhere else • They can do something else • They must find your offer more attractive

22. Data Based Decision Making • Know your audience: what they want and need • Identify the specific BEHAVIOR to promote • Identify factors that influence their behavior • Design effective interventions

23. Willingness to Change the Offer • Committed to designing products consumers want • Committed to modifying services • Committed to monitoring their wants and needs

24. Interdisciplinary Approach • Commercial marketing • Social anthropology • Behavioral psychology • Communication theory • Education

25. The Four P’s Product Place Price Promotion

26. Product • What we’re offering people: • Commodity (tangible good or service) • Idea • Attitude • Behavior • Service

27. Product Must Be: • Solution to a problem • Unique • Cognizant of the competition • Defined in terms of the user’s beliefs, practices, and values

28. Price The cost of adopting the product: • Money • Time • Pleasure • Loss of self esteem • Embarrassment • Others

29. Place or Channels • Where tangible products are purchased • Where service is provided • Media aspect • Delivery of message • Frame of mind • Where people will act

30. Important Considerations for Place: • Available • Easy to find and use • Appropriate • Timely

31. Promotion • Creation of educational messages that are memorable and persuasive • Message design elements • Type of appeal • Tone • Spokesperson • Aperture

32. Politics • Consider secondary and tertiary audiences

33. Six Traditional Steps • Initial planning • Formative research • Strategy formation • Program development • Program implementation • Tracking and evaluation

34. Initial Planning • Use existing data • Use planning model to make preliminary decisions • Sources of existing data • Form estimates

35. Formative Research • Identify potential target audiences • Determine differences between groups • Understand consumers’ wants and needs • Identify factors that influence behavior

36. Strategy Development • Select target audiences • Set behavioral objectives for each segment • Design interventions to address behavioral determinants

37. Comprehensive Strategy • Product strategy • Pricing strategy • Placement strategy • Promotion strategy

38. Message Design Guidelines • Audience: to whom the message is addressed? • Behavioral objective: what you are asking them to do? • Benefits: what they will get if they do it? • How can you support the promise?

39. Campaign Development • Materials development and pretesting • Professional training materials • Develop system for monitoring and tracking progress

40. Program Implementation • Coordination • Sustainability • Training and motivation • Distribution of materials • Dissemination of information

41. Tracking and Evaluation • Collect information on project progress • Use tracking information to make needed mid-course revisions • Assess program impact and cost-effectiveness • Use findings to identify new problems that require replanning

42. Summary • It uses a systematic model to plan effective interventions • Based on understanding the consumer • Behavior is the bottom line • Decisions based on data

43. Programs You Are Planning To Implement • Target audience: who do you hope to reach? • Behavioral objectives: what will you help them to do? • Behavioral determinants: what influences their behavior? • Interventions: what activities will you design and implement?