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Sabtu, 24 Mei 2008

Customer relationship management

Customer relationship management (CRM) is a multifaceted process, mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns. In this way, CRM helps companies understand, as well as anticipate, the needs of current and potential customers.[1] Functions that support this business purpose include sales, marketing, customer service, training, professional development, performance management, human resource development, and compensation. Many CRM initiatives have failed because implementation was limited to software installation without alignment to a customer-centric strategy.[2]

Overview
There are many aspects of CRM which were mistakenly thought to be capable of being implemented in isolation from each other. [3]

From the outside of the organization, a customer experiences the business as one entity operating over extended periods of time. Thus piecemeal CRM implementation can come across to the customer as unsynchronized where employees and web sites and services are acting independently of one another, yet together represent a common entity.

CRM is the philosophy, policy and coordinating strategy connecting different players within an organization so as to coordinate their efforts in creating an overall valuable series of experiences, products and services for the customer.

The different players within the organization are in identifiable groups:

Customer Facing Operations - The people and the technology support of processes that affect a customer's experience at the frontline interface between the customer and the organization. This can include face to face, phone, IM, chat, email, web and combinations of all media. Self-service kiosk and web self-service are doing the job of vocals and they belong here.
Internal Collaborative Functional Operations - The people and technology support of processes at the policy and back office which ultimately affect the activities of the Customer Facing Operations concerning the building and maintaining of customer relationships. This can include IT, billing, invoicing, maintenance, planning, marketing, advertising, finance, services planning and manufacturing.
External Collaboration functions - The people and technology support of processes supporting an organization and its cultivation of customer relationships that are affected by the organization's own relationship with suppliers/vendors and retail outlets/distributors. Some would also include industry cooperative networks, e.g. lobbying groups, trade associations. This is the external network foundation which supports the internal Operations and Customer facing Operations.
Customer Advocates and Experience Designers - Creative designers of customer experience that meet customer relationship goals of delivering value to the customer and profit to the organization (or desired outcomes and achievement of goals for non-profit and government organizations)
Performance Managers and Marketing Analysts - Designers of Key Performance Indicators and collectors of metrics and data so as to execute/implement marketing campaigns, call campaigns, Web strategy and keep the customer relationship activities on track. This would be the milestones and data that allow activities to be coordinated, that determine if the CRM strategy is working in delivering ultimate outcomes of CRM activities: market share, numbers and types of customers, revenue, profitability, intellectual property concerning customers preferences.
Customer and Employee Surveyors and Analysts - Customer Relationships are both fact driven and impression driven - the quality of an interaction is as important as the information and outcome achieved, in determining whether the relationship is growing or shrinking in value to the participants.

Technology considerations
The basic building blocks:

A database for customer lifecycle (time series) information about each customer and prospect and their interactions with the organization, including order information, support information, requests, complaints, interviews and survey responses.

Customer Intelligence - Translating customer needs and profitability projection into game plans for different segments or groups of customers, captured by customer interactions (Human, automated or combinations of both) into software that tracks whether that game plan is followed or not, and whether the desired outcomes are obtained.

Business Modeling Customer Relationship Strategy, Goals and outcomes: Numbers and description of whether goals were met and models of customer segments and game plans worked as hypothesized.

Learning and Competency Management Systems - Customer Capacity and Competency Development - Training and improving processes and technology that enable the organization to get closer to achieving the desired results. Complex systems require practice in order to achieve desired outcomes, especially when humans and technology are interacting. Iteration is the key to refining, improving and innovating to stay ahead of the competition in Customer Relationship Management. (Successful tools, technology and practices will be copied by the competition as soon as they are proven successful.)

The building blocks can be implemented over time separately, but eventually need to be dynamically coordinated. The ongoing alignment of the basic building blocks distinguishes an elegant seamless CRM implementation which successfully builds mutually valuable relationships.


Types of CRM
There are several different approaches to CRM, and at present there is no one software package that allows all of these approaches to be applied. When companies consider implementing a CRM strategy, they usually talk about either Campaign Management or Sales Force Automation. Although CRM is much more than either of those parts, software packages are usually based around one or the other idea (with SFA being the most popular).


Operational CRM
Operational CRM provides support to "front office" business processes, including sales, marketing and service. Each interaction with a customer is generally added to a customer's contact history, and staff can retrieve information on customers from the database when necessary.

One of the main benefits of this contact history is that customers can interact with different people or different contact channels in a company over time without having to describe the history of their interaction each time.

Consequently, many call centers use some kind of CRM software to support their call center agents.

Operational CRM processes customer data for a variety of purposes:

Managing Campaigns
Enterprise Marketing Automation
Sales Force Automation

Sales Force Automation (SFA)
Sales Force Automation is a type of Operational CRM that is designed to automate sales-force-related activities, such as lead tracking. Software products perform such tasks as:

Keeping lists of leads
Assigning list segments to salespeople
Allowing list contacts to be called or e-mailed
Tracking responses
Generating reports

Analytical CRM
Analytical CRM analyzes customer data for a variety of purposes:

Design and execution of targeted marketing campaigns to optimize marketing effectiveness
Design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention
Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.)
Management decisions, e.g. financial forecasting and customer profitability analysis
Prediction of the probability of customer defection (churn analysis)
Analytical CRM generally makes heavy use of data mining.


Campaign Management
Campaign management software is marketing-oriented CRM software that combines elements of Operational and Analytical CRM and allows campaigns to be run on an existing client base. Campaign Management is used when you need to create personalized offers when it is prohibitively expensive to personally contact each client. Campaign management software functions include:

Choosing campaign recipients from the client base according to selected criteria
Development of a campaign offer (this is often done "out-of-the-system" and is not automated)
Assigning specific campaign offers to selected recipients
Automatically sending offers to the selected clients via selected channels (either directly, via channels such as e-mail, or indirectly, by creating lists for use in channels such as direct mail)
Gathering, storing, and analyzing campaign results (including tracking responses and analyzing propensities)

Collaborative CRM
The function of the Customer Interaction System or Collaborative Customer Relationship Management is to coordinate the multi-channel service and support given to the customer by providing the infrastructure for responsive and effective support to customer issues, questions, complaints, etc.

Collaborative CRM aims to get various departments within a business, such as sales, technical support and marketing, to share the useful information that they collect from interactions with customers. Feedback from a technical support center, for example, could be used to inform marketing staffers about specific services and features requested by customers. Collaborative CRM's ultimate goal is to use information collected from all departments to improve the quality of customer service.[4]


Geographic CRM
Geographic CRM (GCRM) is a customer relation management information system which collaborates geographic information system and traditional CRM.

gCRM combines data collected from route of movement, types of residence, ambient trading areas and other customer and marketing information which are matched with relevant road conditions, building formations, and a floating population. Such data are conformed with a map and is regionally analyzed with OLAP(On-Line Analytical Processing) for visualization. This enables a company to examine potential customers and manage existing customers in the region.


Strategy
Several commercial CRM software packages are available which vary in their approach to CRM. However, as mentioned above, CRM is not just a technology but rather a comprehensive customer-centric approach to an organization's philosophy in dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology, towards the broader organizational requirements.

The objectives of a CRM strategy must consider a company’s specific situation and its customers' needs and expectations. Information gained through CRM initiatives can support the development of marketing strategy by developing the organization's knowledge in areas such as identifying customer segments, improving customer retention, improving product offerings (by better understanding customer needs), and by identifying the organization's most profitable customers.[5]

CRM strategies can vary in size, complexity and scope. Some companies consider a CRM strategy to only focus on the management of a team of salespeople. However, other CRM strategies can cover customer interaction across the entire organization. Many commercial CRM software packages that are available provide features that serve sales, marketing, event management, project management and finance.


Successes
While there are numerous reports of "failed" implementations of various types of CRM projects,[6] these are often the result of unrealistic high expectations and exaggerated claims by CRM vendors.

Many of these "failures" are also related to data quality and availability. Data cleaning is a major issue. If the company CRM strategy is to track life-cycle revenues, costs, margins and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases, including sales, manufacturing, supply chain, logistics, finance, service, etc.), requiring an integrated, comprehensive business processing system to be in place with defined structures and data quality. If not, interfaces must be developed and implemented to extract data from different systems. This creates a demand far beyond customer satisfaction to understand the full business-to-business relationship. For this reason, CRM is more than a sales or customer interaction system.

The experience from many companies[who?] is that a clear CRM requirement with regard to reports (e.g., input and output requirements) is of vital importance before starting any implementation.[citation needed] With a proper demand specification, a great deal of time and money can be saved based on realistic expectations of systems capability.[citation needed] A well operating CRM system can be an extremely powerful tool for management and customer strategies.


Privacy and data security
One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider customer privacy and data security with respect to legal and cultural environments. Some customers prefer assurance that their data is not shared with third parties without their consent and that it cannot be illicitly accessed by third parties.

Selasa, 02 Oktober 2007

Marketing Plan Outline

I. Executive Summary

A high-level summary of the marketing plan.


II. The Challenge

Brief description of product to be marketed and associated goals, such as sales figures and strategic goals.


III. Situation Analysis

Company Analysis

Customer Analysis

  • Number
  • Type
  • Value drivers
  • Decision process
  • Concentration of customer base for particular products

Competitor Analysis

  • Market position
  • Strengths
  • Weaknesses
  • Market shares

Collaborators

  • Subsidiaries, joint ventures, and distributors, etc.

Climate

Macro-environmental PEST analysis :

  • Political and legal environment
  • Economic environment
  • Social and cultural environment
  • Technological environment

SWOT Analysis

A SWOT analysis of the business environment can be performed by organizing the environmental factors as follows:

  • The firm's internal attributes can be classed as strengths and weaknesses.
  • The external environment presents opportunities and threats.

IV. Market Segmentation

Present a description of the market segmentation as follows:

Segment 1
  • Description
  • Percent of sales
  • What they want
  • How they use product
  • Support requirements
  • How to reach them
  • Price sensitivity

Segment 2
.
.
.


V. Alternative Marketing Strategies

List and discuss the alternatives that were considered before arriving at the recommended strategy. Alternatives might include discontinuing a product, re-branding, positioning as a premium or value product, etc.


VI. Selected Marketing Strategy

Discuss why the strategy was selected, then the marketing mix decisions (4 P's) of product, price, place (distribution), and promotion.

Product

The product decisions should consider the product's advantages and how they will be leveraged. Product decisions should include:

  • Brand name
  • Quality
  • Scope of product line
  • Warranty
  • Packaging

Price

Discuss pricing strategy, expected volume, and decisions for the following pricing variables:

  • List price
  • Discounts
  • Bundling
  • Payment terms and financing options
  • Leasing options

Distribution (Place)

Decision variables include:

  • Distribution channels, such as direct, retail, distributors & intermediates
  • Motivating the channel - for example, distributor margins
  • Criteria for evaluating distributors
  • Locations
  • Logistics, including transportation, warehousing, and order fulfilment

Promotion

  • Advertising, including how much and which media.
  • Public relations
  • Promotional programs
  • Budget; determine break-even point for any additional spending
  • Projected results of the promotional programs

VII. Short & Long-Term Projections

The selected strategy's immediate effects, expected long-term results, and any special actions required to achieve them. This section may include forecasts of revenues and expenses as well as the results of a break-even analysis.


VIII. Conclusion

Summarize all of the above.


Appendix

Exhibits

Calculations of market size, commissions, profit margins, break-even analyses, etc.

quoted from http://www.quickmba.com

Senin, 24 September 2007

Defining Conversions

Conversions are any change in a viewers behavior based on your message. Usually online this means clicking something but not always. Consider the following common conversions:

  • Increased awareness of a business brand, product, service or person.
  • Conversations or references for a business, person, product, service or article.
  • Enhanced understanding of an issue that leads to more or less use of…
  • Make a purchase
  • Click a link

Increased Awareness

This is usually branding or making someone or something more recognizable to a viewer. This comes in handy for people looking to raise their stature in their industry or community. A great example of this are the politician’s websites that are gearing up for the November elections. Common examples are just about every business website out there - they all affect the brand of that business (for better or worse).

Conversations or References

If two people I’ve never met have a conversation about something I wrote that article is successful. If I can get people to link to something I wrote even better. Conversations and references are word of mouth or viral marketing. It’s a tough thing to make happen but always worth the effort.

Enhanced Understanding

Enhanced understanding naturally leads to people doing more or less of something. For most businesses they want the viewer to do more: buy more of our stuff!
But a non-profit may want people to do less: stop smoking, consume less energy, etc. The viewer has to make a choice to either ignore the message or accept it.

Make a Purchase

Making a purchase may come from enhanced understanding but it’s really about the value proposition and how your goods stand up against the competition. Competition that’s just a few clicks away online. Is your pitch good enough to get the viewer to stop what they are doing and navigate through your checkout process?

Click a Link

Learn more, order now, and subscribe are the most common calls to action I see. Then there are the ads including affiliate programs and contextual (Adsense). Sometimes getting the viewer to click the right link is the trick. Usability is the key to get viewers to click the links you want.

When I think of conversions for websites these are the categories I place them in. Once I know what types of conversions I’m looking for I start to define my market: not just people interested in “product x” but also people that will request more information or tell a friend about it or… whatever I want them to do. It’s a special type of person that will convert at all and a rare person that will do it the way I want.

I think that is overlooked on most websites. Traffic for the sake of traffic does not help your brand and can hurt it a great deal. Building traffic to increase conversions is as old as the internet. If you have 1,000 visits per day and 2% convert then if you get 2,000 visits per day your sales numbers double. Simple enough but what about the other 98% of viewers that didn’t get what they wanted? You also doubled the number of frustrated viewers which hurt the brand.

By knowing what you want your viewers to do and building the site around that your viewers will be much happier and your conversions will increase by percentages. How different would your bottom line be with a 5% increase in conversions?


source : http://www.14thc.com

Minggu, 23 September 2007

a good ads usually full fill this

  1. A good ad must stop the reader from turning the page.
  2. Sells a product’s benefits rather than its features: People buy based on what the product does for them not on what ingredients it has.
  3. Promotes the name of the store or brand while visually creating an image for it.
  4. Speaks to a specific group of people.
  5. Provides all the facts a reader needs without providing too many.
  6. Conveys its message simply. It is believable and honest.
  7. Is news: Readers say advertising in newspapers is as important as the news. It is in fact a primary reason that people seek out advertising in newspapers.
  8. Sells answers to consumer’s current needs. Advertising sells to people’s wants and not just needs. If people need transportation, they want a Mercedes. If they need clothing, they want Polo.
  9. A good ad uses white space. Crammed ads get poor results because readers don’t want to work that hard.
  10. A good ad has a sense of urgency. It tells the reader to do something.
quoted from www.naa.org

Minggu, 19 Agustus 2007

Ten Core Media Relations Strategies


Tested tactics and tips to score the most hits.
by Charlotte Tomic

Tomic Communications

Charlotte TomicWith the news hole shrinking every day and headlines shrieking about celebrities with names like Hilton, it seems more and more impossible to get stories about your clients.

As a longtime publicist working for major brands for the past 20-plus years, I thought that getting news articles about clients or placing them on talk shows would get easier.

Instead, I find it more and more challenging every day.

While the technology boom has fostered new media outlets that increase the probability that some ink will stick, getting through the clutter to actually reach reporters becomes more and more difficult.

With answering machines, cell phone numbers and the increasing probability that most e-mails are delegated to the junk mail file, how do you score wins for your clients?

Here are ten tried and true tips to follow:

1) Find out who’s moved to what publication or outlet. More and more journalists are leaving their jobs for new and more challenging opportunities. Someone who worked on the technology beat may now be a business editor. Keeping track of who is working where is a time-consuming yet necessary job that can minimize bouncebacks and wasted outreach.

2) Write catchy subject lines in e-mails. If you want to reach a reporter’s e-mails, write a captivating and sizzling subject line that will pique his or her interest. If the subject line is newsworthy, most likely it will get read.

3) Don’t send out generic e-mails or “.bcc” a whole list of reporters. Personalize your pitch letter or note and keep it simple. Don’t repeat what is already in the press release you’re sending, but write why you think the reporter might be interested in this particular news. Find a news hook or focus and make that the pitch, using statistics if you can. For example, add something that says, ‘A recent study shows…..” Or begin with your company’s survey or questionnaire results. All of this make the news relevant.

4) Cut down on bogus exaggerated terminology that your news is “breakthrough” or “revolutionary.” Write in words that a layman can understand without making overblown claims that can’t be substantiated.

5) Practice your verbal voicemail messages before you call a reporter. Work up a sheet of talking points that ensure you won’t forget what you’re trying to recommend. Remember – your voicemail message should have a “smile” in your voice and enthusiasm should register as you talk. If you sound like you’re reciting the alphabet and have said the same thing over and over, no one will listen to you after hearing one line….

6) Set goals for yourself of getting a minimal amount of placements for each pitch or release you send. If you get more, it’s gravy. If you don’t get any, you’ll feel like you failed and will be discouraged to continue pitching for this client.

7) Remember that selling a story is just that — sales. You must use the techniques of a salesperson. To succeed, you have to make a lot of “cold calls” to people you only meet on the phone. Don’t give up and make sure your skin gets thicker every day.

8) Take rejection gracefully but not too gracefully. Sometimes it pays to be a sore loser. But don’t be abusive to a member of the media. They will always remember. You always get more results with kindness. If you’re nice on the phone, respect a reporter’s deadlines and time constraints and maintain a good virtual and phone relationship, you will garner the most results.

9) Never underestimate the power of personal meetings. If you actually can network and meet reporters, developing that human connection and seeing them in another setting can create a relationship that could well-serve you for years to come. Follow a reporter’s career. Express interest in their moves to new positions. Maintain contact with them even after they’re written their story for your account.

10) Don’t lie. If you don’t know an answer to a reporter’s question, don’t make believe you do just to keep them on the phone. If you don’t know something, tell the reporter you’ll get back to him or her. Remember - your reputation is always more important than landing a story.


Charlotte Tomic heads the Tomic Communications,
a Miami-based public relations agency that marries strategic
and creative work to maximize results for its clients. The
agency is small and provides nimble, individualized,
consistently hands-on consulting for its clients.


source aboutpublicrelations.net

Sabtu, 18 Agustus 2007

Corporate social responsibility

Corporate Social Responsibility (CSR) is a concept which encourages organizations to consider the interests of society by taking responsibility for the impact of the organization's activities on customers, employees, shareholders, communities and the environment in all aspects of its operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.


Development and analysis

While many businesses have always behaved in a responsible manner, the debate about CSR has been said to have began in the early 20th century, amid growing concerns about large corporations and their power[1]. The ideas of charity and stewardship helped to shape the early thinking about CSR in the US.

Ida Tarbell’s 1904 work The History of the Standard Oil Company helped lead to the US Supreme Court’s decision to break up the company on antitrust grounds. Similarly, Upton Sinclair’s 1906 book The Jungle led to the passage of the Pure Food and Drugs Act and the Meat Inspection Act by the US Congress.

The term CSR itself came in to common use in the early 1970s although it was seldom abbreviated. The term stakeholder, meaning those impacted by an organization's activities, was used to describe corporate owners beyond shareholders from around 1989.[2]

A widely quoted current definition by the World Business Council for Sustainable Development states that "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large."[3].

Approaches to CSR

Some commentators have identified a difference between the Continental European and the Anglo-Saxon approaches to CSR.[4]

Auditing and reporting

To demonstrate good business citizenship, firms can report compliance with a number of CSR standards, including:

FTSE Group's FTSE4Good indice is an evalution of CSR performance by assessing companies according to various criterias. [1]

Some nations require CSR reporting, though agreement on meaningful measurements of social and environmental performance is difficult. Many companies now produce externally audited annual reports that cover Sustainable Development and CSR issues, but the reports vary widely in format, style, and evaluation methodology (even within the same industry). Critics dismiss these reports as lip service, citing examples such as Enron's yearly "Corporate Responsibility Annual Report" and tobacco corporations' social reports.

The business case for CSR

The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones (e.g., Deming's Fourteen Points, balanced scorecards). Orlizty, Schmidt, and Rynes[5] found a correlation between social/environmental performance and financial performance. However, businesses may not be looking at short-run financial returns when developing their CSR strategy.

The definition of CSR used within an organisation can vary from the strict "stakeholder impacts" definition used by many CSR advocates and will often include charitable efforts and volunteering. CSR may be based within the human resources, business development or PR departments of an organisation[6], or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSR-type values without a clearly defined team or programme.

The business case for CSR within a company will likely rest on one or more of these arguments:

Human resources

A CSR programme can be seen as an aid to recruitment and retention[7], particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview and having a comprehensive policy can give an advantage. CSR can also help to improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering.

Risk management

Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These events can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks[8].

Brand differentiation

In crowded marketplaces companies strive for a unique selling proposition which can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values[9]. Several major brands, such as The Co-operative Group and The Body Shop are built on ethical values. Business service organisations can benefit too from building a reputation for integrity and best practice.

License to operate

Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps they can persuade governments and the wider public that they are taking current issues like health and safety, diversity or the environment seriously and so avoid intervention. This also applies to firms seeking to justify eye-catching profits and high levels of boardroom pay. Those operating away from their home country can make sure they stay welcome by being good corporate citizens with respect to labour standards and impacts on the environment.

Disputed business motives

Critics of CSR will attribute other business motives, which the companies would dispute. For example, some believe that CSR programmes are often undertaken in an effort to distract the public from the ethical questions posed by their core operations. Some that have been accused of this motivation include British American Tobacco (BAT) [10] which produces major CSR reports and the petroleum giant BP which is well known for its high profile advertising campaigns on environmental aspects of their operations.

Criticism

Two broad categories of CSR criticism can be identified:

Criticism from a free market perspective

This group are generally supporters of Milton Friedman who argued that a corporation's principal purpose is to maximize returns to its shareholders, while obeying the laws of the countries within which it works. Friedman argued that only people can have responsibilities[11].

Because of this, moderate critics would suggest that CSR activity is most effective in achieving social or environmental outcomes when there is a direct link to profit. This approach to CSR requires that the resources applied to CSR activities must have at least as good a return as that that these resources could generate if applied anywhere else. This analysis drastically narrows the possible scope of CSR activities.

Critics who believe that CSR runs against capitalism would go further and say that improvements in health, longevity or infant mortality have been created by economic growth attributed to free enterprise. Investment in less developed countries contributes to the welfare of those societies, notwithstanding that these countries have fewer protections in place for workers. Failure to invest in these countries decreases the opportunity to increase social welfare.

This group may also point to:

  • The rule of corporate law that a corporation's directors are prohibited from any activity that would reduce profits
  • The burden of the existing social and environmental regulation that companies must comply with. Detractors of CSR point out that organizations pay taxes to government to ensure that society and the environment are not adversely affected by business activities.

Critics who believe that CSR is essentially cynical

This group argue that the only reason corporations put in place social projects is for the commercial benefit they see in raising their reputation with the public or with government. They suggest a number of reasons why self-interested corporations, solely seeking to maximise profits are unable to advance the interests of society as a whole[12].

They would point to examples where companies have spent a lot of time promoting CSR policies and commitment to Sustainable Development on the one hand, whilst damaging revelations about business practices emerge on the other. For example the McDonald's Corporation has been criticized by CSR campaigners for unethical business practices, and was the subject of a decision by Justice Roger Bell in the McLibel case (which upheld some of these claims, regarding mistreatment of workers, misleading advertising, and unnecessary cruelty to animals). Similarly Shell has a much publicised CSR policy and was a pioneer in triple bottom line reporting, but was involved in 2004 in a scandal over the misreporting of its oil reserves which seriously damaged its reputation and led to charges of hypocrisy.

These critics generally suggest that stronger government and international regulation rather than voluntary measures are necessary ensure that companies behave in a socially responsible manner.

Other views from this perspective include:

  • Corporations really care little for the welfare of workers or the environment, and given the opportunity will move production to sweatshops in less well regulated countries.
  • Companies do not pay the full costs of their impact. For example the costs of cleaning pollution often fall on society in general. As a result profits of corporations are enhanced at the expense of social or ecological welfare.
source

PR Tools and Techniques

PR Tools and Techniques

Community Relations Activities

  • Sponsorships
  • Scholarships
  • Contributions
  • Employee volunteer programs
  • Donations (time, money, materials, services)
  • Community participation (board membership, events, subscriptions, etc.)
  • Community relations ads
  • Community relations newsletter/materials
  • Websites and online communities

Community Audience Segments

  • Community leaders
  • Local media (print, electronic, broadcast)
  • Civic groups
  • Students, faculty, school officials
  • Local city/county employees and officials
  • Merchants, businesspeople
  • Specific cultural, gender and other demographically defined groups

Community Expectations

  • Positive, visible contributions
  • Participation
  • Stability,
  • Reliability
  • Pride
  • Clear shared agendas
  • No surprises

Steps to a Successful Campaign

  • Clear plans and objectives
  • Organized data, research to base assumptions (assessment)
  • Leadership
  • Strong communications activities
  • Periodic review and evaluation
  • Timelines

Social Marketing

  • Do your research -- know what has been learned about your target audience
  • Segment your target audience and focus on your top priorities
  • Test your messages on the target audience
  • Consider paid ads - they always run
    • Break through the clutter
    • Make a strong pitch -- sell your story
    • Pick the right spokesperson

Event Sponsorship & Marketing Opportunities

  • Evaluate to ensure event reaches your target audience
  • Share your expectations up front…don't be disappointed later.
  • Strongly consider a signed contract or agreement.
  • Ensure your name/logo is on all materials.
  • Make sure you know and understand if any competitors are involved.
  • Use free tickets and other benefits to your best advantage.
  • Ask if you may poll participants at some phase of the event, distribute information of have permission for follow up contact.
  • Hand out materials with your name/logo on them.
  • Use space in program to disseminate your message (print, live, etc.)
  • Make sure all the people from your organization have clear tasks at the event, which further disseminate your message.
  • Find out what media exposure is anticipated. Encourage invitations to the media.

Changing Attitudes Through Campaigns

  • Do use real stories to communicate your issues.
  • Don't use graphic images (potentially upsetting visuals) unless you deliver them with specific actions the audience can execute.
  • Go to the public: don't ask them to come to you.
  • Use moral arguments as adjuncts, not as primary arguments. Stress supportable and practical aspects of your solution vs. the immorality or flaws of your opponents.
  • Embrace the mainstream -- involve everyone.
  • Don’t offend the people you seek to change.
  • Assess special interest groups before starting a campaign - don't underestimate their strength.
  • Don't stake your life on the polls.
  • Don't try and build public support behind closed doors. Offer people information and options. Give them participation in the process as well as a choice.
  • Avoid jargon.
  • Have a communications plan that addresses potential problems… before they happen.
  • Evaluate and course correct at every opportunity .
source fullcirc

Sabtu, 04 Agustus 2007

Principles of Media Planning

By Barbara Langbecker and Enza V. Chiodi
Barbara Langbecker is VP, Group Director and Enza V. Chiodi is Senior Vice President, Planning Director, both at Creative Media PHD, a New York-based media strategy and communications firm.
1. Introduction
At some point in the marketing process, the work has to change from research and strategizing to actually going out and promoting a product or service to potential customers.

One of the most potent tools to reach consumers is a media advertising campaign. When well conceived, a media campaign enables marketers to reach thousands of consumers simultaneously with a uniform, focused message.

The key concept, however, is "well-conceived." Media advertising is a sophisticated tool. Especially today with the ever-growing assortment of specialty cable television channels and the variety of new media options available, marketers have to target their advertising dollars carefully to reach the right audience at the right time.

Such calculations are the job of the media planner. Media planners are often part of a full-service advertising agency, but they also work in specialty firms. In either case, the media planner works closely with the marketing and advertising team to devise a media strategy.

The media strategy is a roadmap to ensure that an advertisement reaches the right audience at the right time. The three big questions in any media plan are:

  • What is the right media mix?
  • What specific media offer access to the target market?
  • When should advertisements air, and how often?

When the marketing, advertising and media team arrive at satisfactory answers to those three questions, what follows is a balancing act to make the most effective use of the marketing budget. There is no such thing as a perfect media plan. It is an organic creation specifically targeted to the product or service, the marketing objectives and the marketing budget.

When the team devises a media plan that they think has the best chance for success, they pass it along to a media buyer to make it all happen.

The following tutorial is an introduction to media planning, including terminology, a review of the process and a general discussion of what works, and what doesn't.

2. Media Planning Process
The mission of the media planner is:

To create innovative and cost-effective plans designed to fulfill media objectives through the development of strategies and tactics.

Media planning is a multi-step process.

It begins with the marketing objective – what is the client company trying to accomplish in terms of sales, brand image and market share. Media advertising is typically only one part of a company's marketing mix – it is one of many tools at a marketer's disposal. In the most effective marketing campaigns, the media advertising campaign works in concert with other marketing initiatives such as sales, distribution channel strategy and customer service to deliver a unified, focused message to the consumer.

Ideally, the client has already worked out the elements of the marketing plan and marketing objectives before they started serious work on advertising strategies.

Media objectives are an extension of the marketing objective. If media and advertising are a part of the marketing strategy, what does the media plan need to accomplish to fulfill its role? Answers could include share-of-mind measurements, sales goals or brand recognition measures.

Media strategy explains the "how" of a media campaign. The questions answered at this stage will help media planners devise a strategy:

  • Who is the target audience?
  • Where is the target audience (global, U.S. market, etc.)?
  • When should the marketing message air (timing, seasonality, etc.)?
  • How many times should the message air?
  • How will we communicate the message (creative)?
  • How much does the marketer have to spend?

Will the commercials run year-round to build and maintain awareness? Are there specific seasons when the client needs to ramp up its marketing activity, such as a toy company before Christmas or a pharmaceutical company before the spring and fall allergy seasons?

The media strategy then forms the base of a detailed discussion of specific tactics. It is at this stage that a media plan is developed. What mix of television, radio, print and new media advertising will reach the largest segment of the target audience? What specific channels and program times are most likely to reach that target audience, and how often should the message be repeated?

The answers to those questions form the media plan, and the next step is to execute the plan by airing commercials and advertisements. Throughout the entire process, media planners and media buyers carefully measure their successes and failures, and adjust the media plan accordingly.

Determining the Media Mix





As stated previously, “media mix” is the proportion of television, radio, print and other forms of advertising used in a particular campaign.

The "best" mix for a particular campaign is a combination of the product or service, the marketing objectives, target audience and budget. That information often helps media planners first decide what media types would be ineffective in reaching the target audience.

For example, if the target audience is male, daytime television is generally not the best vehicle. If the marketing budget is small, or if the target audience is very narrow, television may not be a viable option at all. Media planners could opt instead for a print campaign focused on the target audience's interests and hobbies.

Creative constraints may eliminate one or more media options. For a new product that must be demonstrated, radio would be a bad option because the listener can't see the product.

Also, the client's main goal for a marketing campaign may be to build a customer database. In that case a direct response campaign would likely be the best option.

Researching a competitor's marketing and media activity may help uncover new opportunities. These could either consist of media that a competitor has ignored, or media that has to be a part of the mix to compete for share-of-mind with the competitor's existing advertising.

“Media quintiles” are a useful tool for visualizing the target audience's media habits. Quintile analysis divides a target audience into five categories from the heaviest users to the lightest users. If the heaviest users of a product tend to get their news from magazines and radio, then those elements should have a higher proportion of the media mix than television.

A media planner needs to construct a quantitative defense of his media mix recommendations. In fact, this is a good habit to form in any case.

Media planners are spending someone else's money. That is a big responsibility and planners need to have the numbers to back up every decision and recommendation they make.

Advertising cost figures can be calculated from cost per thousand (CPM) or cost per unit (CPU) figures from various outlets. Ratings data is available from companies such as Nielsen (television) and Arbitron (radio). Media planners can find data on competitive activity from sources such as AdSpender and Stradegy.
3. Creating a Media Plan
A media plan only needs to make sense within the context of the media objectives and media strategies. There are no right or wrong answers. Media planners should present to the client any ideas or plans that they can back up with the facts.

Creating the media plan itself is a three-step process:

  • Step One: Determine media types and/or TV dayparts to be used or considered.

  • Step Two: Create framework for the media plan.

  • Step Three: Determine and plot out the appropriate levels of activity in each media vehicle and daypart used.

Step One: Media Selection Rationale




In selecting the media for an advertising campaign, the following factors need to be considered:

  • Cost efficiency (CPM)
  • Targetability
  • Reach potential
  • Tactics
  • Environmental considerations
  • Creative considerations
  • Historical & competitive media utilization

Each is discussed in more depth below.

    Cost Efficiency (CPM)

    Clients want and need to get the most value out of their marketing and advertising spending. Often, cost factors are the first component investigated in any marketing plan. If the client does not have the budget for a prime time ad campaign, there is little point in devising one.

    Cost is most often calculated using cost per thousand (CPM) figures. This is how much money it costs to reach 1,000 people in the target audience.

    Targetability

    The marketing plan has a target audience – the group thought most likely to purchase a particular product or service in a quantity likely to generate profits. Obviously, any advertising campaign needs to reach the people in the target audience.

    Reach Potential

    Reach potential is the amount of the target audience that a particular medium is likely to draw. Media planners use this information to determine not only what media outlets to use, but when to place ads.

    Media planners look at the percentage the target audience composes of a medium's total audience to understand the effectiveness of advertising in various media choices.

    Tactics

    Certain tactical considerations may lead media planners to consider time slots or media that are not specifically geared toward a target audience.

    For example, if the client has a short lead time before a new product introduction, generating a broad product awareness via more mainstream television channels may give the product a boost in awareness for the launch followed my more targeted advertising later.

    Environment

    As with tactics, the environment on a particular media vehicle may make it attractive as a part of a media plan. For example, a client looking to advertise a new heartburn medication may get better results during a cooking show.

    Creative Considerations

    Sometimes, the message itself dictates what media vehicle is most appropriate. If the client needs to send a complicated message, a print medium will work better than television.

    For example, pharmaceutical companies are often required to release data on side effects and risks for a new medication. Most of that data would be unwieldy in a television commercial, so they often opt for print.

    Historical & Competitive Media Utilization

    Often, past advertising efforts dictate media for a future campaign. Or, if a competitor has a regular presence on a particular channel, media planners may want to consider placing some ads there to counter the competitor's efforts.

Step Two: Building the Framework



The framework of the plan has two basic elements:

  1. Number of weeks on the air
  2. Flighting patterns

Ideally, an advertising message runs all year. This maintains a consistent message and presence. In reality, the typical marketing budget precludes a constant media presence. Flighting is a strategy of periodically placing ads to gain some of the benefits of a constant presence without the costs.

The media planner's job is to tailor the frequency and flighting to both the budget, and the marketing and media objectives. For example, a strategy to keep a brand top of mind at all times to encourage impulse purchases (i.e. Coke) would give greater priority to the number of weeks an ad (this is on air to maintain a presence. New brands may sacrifice a long-term weeks-on-air strategy in favor of building awareness with a more concentrated campaign at launch.

One popular use of flighting is "blinking" or "pulsing." With this strategy, a marketing message is on air one week, off the next, and on again the following week. This way, the message almost has the illusion of being on air constantly, since the audience will remember seeing it before, but without the costs.

Generally, devising the flighting strategy is a combination of four factors:

  1. Overall media strategy
  2. Tactical considerations
  3. Seasonality
  4. Budget constraints


    Overall Media Strategy: If the goal is maintaining a brand presence or maintaining market share, the flighting will be evenly spread throughout the year. During a new product introduction, the frequency of airing will be higher than at other times.

    Tactical Considerations: Periodically, media planners may adjust the frequency of advertising to support a promotional campaign, take advantage of media efficiencies or to advertise during periods when competitors are less aggressive, or heavily advertising.

    Seasonality: Toy companies advertise more heavily before Christmas shopping begins. The Cadbury bunny only shows up before Easter. Back-to-School ads air in August.

    Budget Constraints: Advertising activity may change to reflect quarterly or semi-annual financial needs of the client.

Step Three: Determine Appropriate Levels



Appropriate levels of activity in each recommended daypart or medium are determined based on:

  • Industry standards
  • Client preferences
  • Historical levels
  • Competitive levels
  • Common sense

Each is discussed in more detail below.

Industry Standards

Frequency-oriented dayparts/medium: By advertising at certain times, such as during daytime, or on radio, media planners can increase the number of times a message is aired.

Reach-oriented dayparts/medium: By advertising at certain times, such as during prime time, planners can still reach the needed number of the target audience, but air a message fewer times.

Magazines: In general, schedule at least four to six insertions in a monthly magazine over a 12-month period, to ensure that the reader is exposed to the ad on a frequent enough basis for the communication to sink in.

Radio: At a bare minimum, never schedule less than 50 GRPs per week in order to include enough stations to cover all target segments and begin building reach.

Client Preferences

A client may want to maximize its presence in a certain time period because of the cost efficiency, for example. Also, a client may want to "own" a time period by scheduling one spot per day during morning or evening news shows, for example.

Historical Levels

A client has advertised at a certain time in the past with good results, so he wants to continue with that strategy. Be aware that changes in objectives, the media marketplace or the competitive environment may warrant changes.

Competitive Levels

Clients may want to copy strategies that are giving a competitor an advantage. Alternatively, a client may want to take advantage of opportunities a competitor has neglected.

Common Sense

Based on experience, does the campaign feel right?
4. Conclusion
Some questions to ask when comparing media plan options:

  • Are the selected media vehicles the most effective for reaching this target?

  • Are the weight levels high enough in each medium to be effective (R/F, # spots)?

  • Are the hiatus periods too long?

  • Have you diluted the effort by using too many media vehicles?

  • What are the limitations and strengths of each plan developed?

  • Is the budget sufficient to attain the awareness or response goals?

Be sure to tailor each one to the specific circumstances such as the marketing and media objectives, market conditions, and competitor activity.

Remember, no media plan is right or wrong if it is devised keeping the marketing and media objectives at the forefront. No plan is perfect either, so constantly question assumptions, and constantly measure results.

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