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Direct Marketing -A system of marketing by which org communicate directly with target customers to generate a response (inquiry, purchase, or even a vote). For purpose of soliciting a response by phone,mail,personal visit or prospect visit. -Direct selling, direct mail, telemarketing, direct-action-advertising, catalogue selling, TV selling, infomercial etc Growth because of: Credit card, direct marketing syndicates, technology, customer database DM with Advertising: Usually contain tollfree number, or mailing info, website, refer to retail outlet. DM with PR: telemarkering to solicit funds for charities DM with Personal selling: Telemarketing generate leads, direct mail invite prospective customers to visit. DM with Sales Promotion: Invitation for contest,sweepstakes, sales,coupons Make sure: 1) 2) 3) 4) What program objectives will be Which market to target (database) What DM strategies to employed Evaluate effectiveness
Advantages: 1) Selective reach, eliminates waste coverage 2) Segmentation capabilities, segment base of geographic,occupation,demographics (Prizem,VALS), strategized through database 3) Frequency, easy to build frequency level 4) Flexibility, Creative forms 5) Timing, quick and easy 6) Personalization, personalize message well to the target 7) Costs 8) Measures of effectiveness, easier, as feedback is often immediate and accurate. Disadvantages: 1) Image factor, junk mail, irritating 2) Mismatch of info, people move,change occupation. 3) Content support, limited mood creationg due to surrounding programe. 4) Rising costs, postal rates, printing (email can help) 5) Ethical perspectives, consumers choose not to receive junk.
Internet/Interactive Marketing Digital revolution, speed and convenience of acquiring information as well as conducting ecommerce through computers. Good for money-rich but time-poor consumers. Objectives: 1) 2) 3) 4) 5) 6) 7) Create awareness, on offerings, information Generate interest, attract visitors and hold interest, fun site Disseminate information, provide in-depth info, contacts Create company image, branding Stimulate trial, offer coupons,contest,samples Create buzz, word of mouth Gain consideration, evaluation dhrough blogs, forums
Advantages: 1) Target marketing, ability to target specific groups 2) Message tailoring, designed to appeal specific needs and wants of target audience 3) Interactive capabilities, strong potential for increasing customer involvement, immediate feedback, e-commerce 4) Information access, availability of wealthy information source 5) Sales potential, e-commerce, purchase online 6) Creativity, enhance company image,repeat visits 7) Exposure, no boundaries, search engine 8) Speed, convenience in access for information Disadvantages: 1) 2) 3) 4) 5) Measurement problems, lack of reliability on numbers of visit Annoyance, irritation on installing software or difficult in navigation Clutter, ads proliferates a lot in the internet Potential for deception, virus,hacking Privacy issue
Sales Promotion A direct inducement that offers an extra value or incentive for the product, creating an immediate sale. Consumer-Oriented Promotions: Samples,coupons,premiums,contest,rebates,bonus packs,price offs,loyalty program, event marketing Trade-Oriented Promotions: Contests, dealer incentives, trade allowances, point of purchase display, training, trade shows, cooperative ads Reasons:Growing power of retailers, Declining brand loyalty, Increased promotional sensitivity, Brand proliferation, Short-term focus, Increased accountability, Competition, Clutter Objectives: Obtaining trial and repurchase, Increasing consumption of established brand, Defending current customers, Target a specific market segment, Enhancing IMC and build brand equity Advertising, promotional budget and sales promotion should be viewed as complementary tools to achieve a synergistic effect than that of either promotional mix element alone. To accomplish this, must coordinate budgets, advertising, promotional themes, media scheduling and timing and target audiences. Sales promotion abuse can result when marketers become too dependent on the use of SP techniques and sacrifice long-term brand position and image for short-term sales purpose. Sales promotion traps occurred when competitors use promotions extensively and becomes difficult for firm to cut back without risking a loss in sales. Overuse of sales promotion will lower profit margins and threaten image and even the viability of brand.
Public Relations The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance. Marketing Public Relations: 1) 2) 3) 4) 5) 6) 7) Building marketplace excitement before media advertising breaks Improving ROI by reducing marketing costs and deliver meaningful marketing outcomes Creating advertising news for hype Introducing a product Providing a value-added customer service Building brand-to-customer bonds Defending products at risk and giving consumers a reason to buy
Target audiences: Internal audiences, external audiences, the media, community members, educators, governments, financial groups. Program: Press release, press conference, exclusives, interviews, community involvement, internet Advantages: 1) 2) 3) 4) 5) 6) Credibility, published in newspaper and magazines Cost, relatively low if possible effects are considered Avoidance of clutter, typically perceived as news item and receive attention Lead generation, information about innovations and breakthroughs Ability to reach specific groups Image building, develop positive image
Disadvantages: 1) 2) 3) 4) Potential for not completing the communication process PR efforts cannot associate with sponsors in public mind Misfire through mismanagement and lack of coordination Redundancies in effort, inconsistent communications
Publicity, a subset of PR. Refers to the generation of news about a person, product, or service that appears in broadcast or print media. It is a short term strategy comparing to PR. PR is designed to provide positive info, but publicity is not alwas positive and is not always under control of the company.
Personal Selling Involves selling through a person-to-person communications process. Plays dominant role in firms for higher priced product. Partner for promotional mix elements. Advantages: 1) 2) 3) 4) 5) Allowing for two-way interaction Tailoring of the message to suits customers Lack of distraction Involvement in decision process Source of research information, because direct contact with consumers
Disadvantages: 1) 2) 3) 4) 5) Inconsistent message, if not standardized with company marketing effort (do training) Sales force and management conflict, failure to communicate, politics, wages. High cost, personal selling involves training, sales call,lesser target Poor reach, cannot reach as many members as other promotional elements Ethical issues
PS and Advertising: Complementary relationship. Ads are effective in creating awareness and drawing interest, personal selling is more likely in stimulating trial and getting the order. PS and PR: PS agent is often the best source of public relations as they represent the firm and its prodicts. PS and DM: DM will screen leads and qualify potential buyers will be pass to the sales force. Higher percentage of sales closing and less wasted time for the sales force. PS and SP: SP are designed to support sales force in order to have faster sales close. PS with internet: Internet will provide information to consumers, e-commerce Evaluation: 1) Provision of market intelligence (feedback from sales force on competitor,customers reactions.etc) 2) Follow up activities, use of promotional brochures and correspondences with new and existing customers, ask for feedback. 3) Program implementations, the number of promotional programs implemented (counter displays used, cooperative advertisement) 4) Attainment of communication objectives, the number of accounts to whom presentations were made (awareness, evaluation), offers accepted and liked.
Television (sponsorship, mostly participation, spot announcements) Advantages 1) Creativity and Impact 2) Coverage 3) Cost effectiveness 4) Captivity and Attention (favourite program) 5) Possible selectivity (selection of program audience segment) 6) Integrated marketing opportunities Disadvantages 1) Cost, expensive 2) Lack of selectivity compare to other medium 3) Fleeting message ( short time to advertise) 4) Clutter 5) Limited viewer attention (zipping, zapping) Radio Advantages 1) Cost and Efficiency 2) Receptivity (personally relevant) 3) Selectivity 4) Flexibility (short lead time for change and adjustment) 5) Mental imagery (Image transfer) 6) Integrated marketing opportunities Disadvantages 1) Creative (absence of visual) 2) Fragmentation 3) Limited research data compared to TV 4) Competition from digital media 5) Clutter Magazine Advantages 1) Selectivity (most selective except direct mail) 2) Reproduction quality ( colour,high quality) 3) Creative flexibility (style, gatefolds, bleedpages, inserts) 4) Permanence (Long life span) 5) Receptivity and engagement 6) Prestige (favourable publication) Disadvantages 1) Costs 2) Limited reach and frequency (compare to Tv) 3) Long lead time 4) Clutter and ompetition Newspaper Advantages 1) Extensive penetration 2) Flexibility in terms (short lead time) 3) Geographic selectivity 4) Reader involvement and acceptance 5) Service offered (merchandise) Disadvantages 1) Poor reproduction (absence of color and quality) 2) Short life span 3) Lack of selectivity 4) Clutter
Advantages: 1) Selective reach, eliminates waste coverage 2) Segmentation capabilities, segment base of geographic,occupation,demographics (Prizem,VALS), strategized through database 3) Frequency, easy to build frequency level 4) Flexibility, Creative forms 5) Timing, quick and easy 6) Personalization, personalize message well to the target 7) Costs 8) Measures of effectiveness, easier, as feedback is often immediate and accurate. Disadvantages: 1) Image factor, junk mail, irritating 2) Mismatch of info, people move,change occupation. 3) Content support, limited mood creationg due to surrounding programe. 4) Rising costs, postal rates, printing (email can help) 5) Ethical perspectives, consumers choose not to receive junk.
Internet/Interactive Marketing Digital revolution, speed and convenience of acquiring information as well as conducting ecommerce through computers. Good for money-rich but time-poor consumers. Objectives: 1) 2) 3) 4) 5) 6) 7) Create awareness, on offerings, information Generate interest, attract visitors and hold interest, fun site Disseminate information, provide in-depth info, contacts Create company image, branding Stimulate trial, offer coupons,contest,samples Create buzz, word of mouth Gain consideration, evaluation dhrough blogs, forums
Advantages: 1) Target marketing, ability to target specific groups 2) Message tailoring, designed to appeal specific needs and wants of target audience 3) Interactive capabilities, strong potential for increasing customer involvement, immediate feedback, e-commerce 4) Information access, availability of wealthy information source 5) Sales potential, e-commerce, purchase online 6) Creativity, enhance company image,repeat visits 7) Exposure, no boundaries, search engine 8) Speed, convenience in access for information Disadvantages: 1) 2) 3) 4) 5) Measurement problems, lack of reliability on numbers of visit Annoyance, irritation on installing software or difficult in navigation Clutter, ads proliferates a lot in the internet Potential for deception, virus,hacking Privacy issue
Sales Promotion A direct inducement that offers an extra value or incentive for the product, creating an immediate sale. Consumer-Oriented Promotions: Samples,coupons,premiums,contest,rebates,bonus packs,price offs,loyalty program, event marketing Trade-Oriented Promotions: Contests, dealer incentives, trade allowances, point of purchase display, training, trade shows, cooperative ads Reasons:Growing power of retailers, Declining brand loyalty, Increased promotional sensitivity, Brand proliferation, Short-term focus, Increased accountability, Competition, Clutter Objectives: Obtaining trial and repurchase, Increasing consumption of established brand, Defending current customers, Target a specific market segment, Enhancing IMC and build brand equity Advertising, promotional budget and sales promotion should be viewed as complementary tools to achieve a synergistic effect than that of either promotional mix element alone. To accomplish this, must coordinate budgets, advertising, promotional themes, media scheduling and timing and target audiences. Sales promotion abuse can result when marketers become too dependent on the use of SP techniques and sacrifice long-term brand position and image for short-term sales purpose. Sales promotion traps occurred when competitors use promotions extensively and becomes difficult for firm to cut back without risking a loss in sales. Overuse of sales promotion will lower profit margins and threaten image and even the viability of brand.
Public Relations The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance. Marketing Public Relations: 1) 2) 3) 4) 5) 6) 7) Building marketplace excitement before media advertising breaks Improving ROI by reducing marketing costs and deliver meaningful marketing outcomes Creating advertising news for hype Introducing a product Providing a value-added customer service Building brand-to-customer bonds Defending products at risk and giving consumers a reason to buy
Target audiences: Internal audiences, external audiences, the media, community members, educators, governments, financial groups. Program: Press release, press conference, exclusives, interviews, community involvement, internet Advantages: 1) 2) 3) 4) 5) 6) Credibility, published in newspaper and magazines Cost, relatively low if possible effects are considered Avoidance of clutter, typically perceived as news item and receive attention Lead generation, information about innovations and breakthroughs Ability to reach specific groups Image building, develop positive image
Disadvantages: 1) 2) 3) 4) Potential for not completing the communication process PR efforts cannot associate with sponsors in public mind Misfire through mismanagement and lack of coordination Redundancies in effort, inconsistent communications
Publicity, a subset of PR. Refers to the generation of news about a person, product, or service that appears in broadcast or print media. It is a short term strategy comparing to PR. PR is designed to provide positive info, but publicity is not alwas positive and is not always under control of the company.
Personal Selling Involves selling through a person-to-person communications process. Plays dominant role in firms for higher priced product. Partner for promotional mix elements. Advantages: 1) 2) 3) 4) 5) Allowing for two-way interaction Tailoring of the message to suits customers Lack of distraction Involvement in decision process Source of research information, because direct contact with consumers
Disadvantages: 1) 2) 3) 4) 5) Inconsistent message, if not standardized with company marketing effort (do training) Sales force and management conflict, failure to communicate, politics, wages. High cost, personal selling involves training, sales call,lesser target Poor reach, cannot reach as many members as other promotional elements Ethical issues
PS and Advertising: Complementary relationship. Ads are effective in creating awareness and drawing interest, personal selling is more likely in stimulating trial and getting the order. PS and PR: PS agent is often the best source of public relations as they represent the firm and its prodicts. PS and DM: DM will screen leads and qualify potential buyers will be pass to the sales force. Higher percentage of sales closing and less wasted time for the sales force. PS and SP: SP are designed to support sales force in order to have faster sales close. PS with internet: Internet will provide information to consumers, e-commerce Evaluation: 1) Provision of market intelligence (feedback from sales force on competitor,customers reactions.etc) 2) Follow up activities, use of promotional brochures and correspondences with new and existing customers, ask for feedback. 3) Program implementations, the number of promotional programs implemented (counter displays used, cooperative advertisement) 4) Attainment of communication objectives, the number of accounts to whom presentations were made (awareness, evaluation), offers accepted and liked.
Television (sponsorship, mostly participation, spot announcements) Advantages 1) Creativity and Impact 2) Coverage 3) Cost effectiveness 4) Captivity and Attention (favourite program) 5) Possible selectivity (selection of program audience segment) 6) Integrated marketing opportunities Disadvantages 1) Cost, expensive 2) Lack of selectivity compare to other medium 3) Fleeting message ( short time to advertise) 4) Clutter 5) Limited viewer attention (zipping, zapping) Radio Advantages 1) Cost and Efficiency 2) Receptivity (personally relevant) 3) Selectivity 4) Flexibility (short lead time for change and adjustment) 5) Mental imagery (Image transfer) 6) Integrated marketing opportunities Disadvantages 1) Creative (absence of visual) 2) Fragmentation 3) Limited research data compared to TV 4) Competition from digital media 5) Clutter Magazine Advantages 1) Selectivity (most selective except direct mail) 2) Reproduction quality ( colour,high quality) 3) Creative flexibility (style, gatefolds, bleedpages, inserts) 4) Permanence (Long life span) 5) Receptivity and engagement 6) Prestige (favourable publication) Disadvantages 1) Costs 2) Limited reach and frequency (compare to Tv) 3) Long lead time 4) Clutter and ompetition Newspaper Advantages 1) Extensive penetration 2) Flexibility in terms (short lead time) 3) Geographic selectivity 4) Reader involvement and acceptance 5) Service offered (merchandise) Disadvantages 1) Poor reproduction (absence of color and quality) 2) Short life span 3) Lack of selectivity 4) Clutter
