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