Commercial Marketing

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.”

A 6 word definition…

Marketing means solving customers' problems profitably.

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.

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

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

The 4 Ps of the “Exchange” Process

Product (tangible/intangible) Price Place Promotion

The “Marketing Mix”

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.

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

What did you think of the book?!

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

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?

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

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

Traditional Approaches

Top down planning Expert driven Education Persuasion Behavioral modification

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?

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?

Consumer Orientation

Understand consumers’ perceptions– Benefits– Barriers– Self efficacy– Social norms

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

Competition

They can go somewhere else They can do something else They must find your offer more attractive

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

Willingness to Change the Offer

Committed to designing products consumers want

Committed to modifying services Committed to monitoring their wants and

needs

Interdisciplinary Approach

I. Commercial marketing

II. Social anthropology

III. Behavioral psychology

IV. Communication theory

V. Education

The Four P’s

Product

Place

Price

Promotion

Product

What we’re offering people:– Commodity (tangible good or service)– Idea– Attitude– Behavior– Service

Product Must Be:

Solution to a problem Unique Cognizant of the competition Defined in terms of the user’s beliefs,

practices, and values

Price

The cost of adopting the product: Money Time Pleasure Loss of self esteem Embarrassment Others

Place or Channels

Where tangible products are purchased Where service is provided Media aspect

– Delivery of message– Frame of mind

Where people will act

Important Considerations for Place:

Available Easy to find and use Appropriate Timely

Promotion

Creation of educational messages that are memorable and persuasive

Message design elements– Type of appeal– Tone– Spokesperson– Aperture

Politics

Consider secondary and tertiary audiences

Six Traditional Steps

I. Initial planning

II. Formative research

III. Strategy formation

IV. Program development

V. Program implementation

VI. Tracking and evaluation

Initial Planning

Use existing data Use planning model to make preliminary

decisions Sources of existing data Form estimates

Formative Research

Identify potential target audiences Determine differences between groups Understand consumers’ wants and needs Identify factors that influence behavior

Strategy Development

Select target audiences Set behavioral objectives for each segment Design interventions to address behavioral

determinants

Comprehensive Strategy

Product strategy Pricing strategy Placement strategy Promotion strategy

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?

Campaign Development

Materials development and pretesting Professional training materials Develop system for monitoring and tracking

progress

Program Implementation

Coordination Sustainability Training and motivation Distribution of materials Dissemination of information

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

Summary

It uses a systematic model to plan effective interventions

Based on understanding the consumer Behavior is the bottom line Decisions based on data

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?