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Flowers are Fun, or Can Be 0422 Marketing Principles TOPIC OR UNIT OF STUDY Communication in Marketing Promotion CONTENT STANDARD(S) AND OBJECTIVE(S) Describe the regulations of promotion Describe the use of business ethics in promotion Explain communications channels used in public-relations activities Write inquiries INTRODUCTION Direct marketing has many different elements that many businesses use this from every day. We will pretend that we are marketing managers to employ a variety of direct marketing. These activities will help us understand regulations & ethics in promotion, as well as communication channels effective for public-relations. ESSENTIAL QUESTION How do companies use communication to enhance promotion legally ethically, and profitably? INTEGRATION OF ACADEMICS, TECHNOLOGY, ENTREPRENEURSHIP To complete this project, students will use basic terms and concepts, to complete the following academic, technology, and entrepreneurship activities: Academic activities – textbook review, , critical thinking and writing skills; Technology activities –use of MOS Word Entrepreneurship activities – Students will put themselves in the position of other businesses while using promotions and communications to build the business. STUDENT INVOLVEMENT IN PLANNING PROCESS Students will take the place of business marketing professionals to analyze and perfect their communication in promotion. TASK(S) Remind Students of last unit on promotion and use Activity 1 15 min Conduct a case study analyzing a company’s public relations practices Activity 2 75 min Discuss the purpose of inquiries, what language is used, etc 20 min Write letters of inquiry to customers in the case study Activity 3 45 min Introduce the issues of eithics in marketing and promotion. 25 min Write a position paper on a business with questionable ethics Activity 4 60 min Research government regulation for promotional regulation Activity 4 30 min Review a business that practices variety of direct marketing strategies Activity 5 45 min Review cases study from Activity 2 pull in all aspects of the unit 45 min RESOURCES Websites students will choose their own http://brainmass.com/business/marketing/87698 http://saffron.pharmabiz.com/article/detnews.asp?articleid=49805§ionid=47 Armstrong, Gary, and Kotler,Philip, “Marketing, An Introduction” Prentice Hall 2000 Duncan, Tom, “IMC, Using Advertising and Promotion to Build Brands.” McGraw-Hill 2002 TECHNOLOGY USE Assigned websites, computers, and Microsoft Office Word software. EVALUATION #1 - Activity 1 – Direct Marketing Diagram 12 pts #2 - Activity 2 – Case Study of Bouquet Resorts 28 pts #3 - Activity 3 – Business Letter to Bouquet Resorts 10 pts #4 - Activity 4 – Relating Promotions position paper 16 pts #5 - Activity 5 – Dialing for Flowers questions 10 pts Total points for these activities 76 pts Authentic assessments will be evaluated with the rubrics that are located on each activity TIMELINE Block scheduling-4 days, periods-8 days. This includes time for lecture, textbook readings, and discussions. Depending on student’s ability, extended time may be needed on some projects. Day 1 Remind Students of last unit on promotion and use Activity 1 15 min Conduct a case study analyzing a company’s public relations practices Activity 2 75 min Day2 Discuss the purpose of inquiries, what language is used, etc 20 min Write letters of inquiry to customers in the case study Activity 3 45 min Introduce the issues of eithics in marketing and promotion. 25 min Day 3 Write a position paper on a business with questionable ethics Activity 4 60 min Research government regulation for promotional regulation Activity 4 30 min Day 4 Review a business that practices variety of direct marketing strategies Activity 5 45 min Review cases study from Activity 2 pull in all aspects of the unit 45 min CONCLUSION At the end of this unit, students will be able to explain the relationships of direct marketing, marketing and promotions, and address the ethics involved. Direct Marketing Diagram Look at the diagram below to see all methods of direct marketing communications. On the line next to each form of communication, give two examples. Face to Face Selling Online Marketing Direct Mail Customers and Prospsects Kiosk marketing Telemarketing Direct Response television Bouquet Resorts Case Study http://brainmass.com/business/marketing/87698 You are the Marketing Director at a resort development company in the vacation ownership (timeshare) industry, Bouquet Resorts. Bouquet Resorts is an established, twenty-year- old company recognized internationally. The company was one of the founding originals at the start of the industry's growth. Over the years, Bouquet Resorts has grown to a size of 16 vacation ownership resorts throughout 8 states and 4 countries. The company's presence includes corporate headquarters, 17 on-site sales centers, 5 off-site sales centers, and a range of 20-40 independent brokers with real estate license credentials for sales. This is a multi-billion dollar real estate industry, but an industry that also did not earn respect from consumers in its early stages. In those days, the industry was not regulated as it is today, by government and real estate laws. This allowed for scandalous practices and misleading sales tactics, all leading to a very guarded and suspicious consumer today. You are the Marketing Director at one of the off-site sales centers. You are responsible for creating marketing strategies that will bring qualified consumers into the center, so that sales staff might present the benefits of Bouquet Resorts. The sales staff consists of sales agents, sales managers, and verification loan officers, all managed by a Sales Director and a Project Director. Your Marketing Department consists of 5 Marketing Managers, 30 telemarketers, 30 field-marketing agents, and 5 administrative support staff. You report directly to the Project Director and regularly have meetings with both the Project Director and Sales Director to discuss overall sales and marketing strategy, numbers, goals, budgets, and urgent needs. Your job is to create the message that will be communicated about Bouquet Resorts and to thread that through all marketing collateral, which may include: flashy print pieces, postcards, indoor and outdoor booth displays, banners, invitations for guests, and more. You are challenged with the task of bringing a good quantity and quality of guests into the sales center. Your methods include: - telemarketing consumers - face to face field marketing consumers at trade shows, festivals, events, sporting venues and shopping malls - utilizing outside vendors to provide qualifying guests to visit your off-site sales center. The outside vendors are typically telemarketing consumers. The challenge of marketing at an off-site sales center is that the consumer does not get to visit, touch and feel any of the actual resorts, although they will see photos, videos and virtual tours of the resort properties. The industry trend has been to present some promotional giveaway or gift as the lure, to get consumers to agree to visit the off-site sales center, and to listen to a 90 minutes presentation about Bouquet Resorts. It is important to get advance commitment from the consumers to show up for their appointment to best utilize resources and to maximize sales opportunities. You are responsible for overseeing both the internal marketing staff and your outside vendors, to make sure they are sending the correct message about your company and the promotional offerings. You are also responsible for creating business alliances (such as mall alliances) that will help improve the company's ability to get in front of qualified consumers. Recently you have been trying to secure alliances with local NBA and NFL sports teams for field marketing opportunities. As the Marketing Director, you are also responsible for the marketing budget, and you are expected to help achieve the overall sales objectives of the center. 1. "How do advertising and public relations play a role in the success of Bouquet Resorts, a timeshare/vacation ownership company? What unique challenges or situations are present in the vacation ownership/timeshare industry and specifically at Bouquet Resorts?" 2. Describe one real world example of a public relations or advertising campaign that successfully achieved a desired outcome and one real world example that did not. 3. Also explain why you feel each example achieved or did not achieve its desired goals." 4. Take the extra step in making recommendations for alternative strategies for two other examples. 4 pts 3 pts 2 pts 1 pt Completeness Complete in all Complete in most respects; reflects all respects; reflects requirements most requirements Incomplete in many respects; reflects few requirements Incomplete in most respects; does not reflect requirements Understanding Demonstrates a sophisticated understanding of the topic(s) and issue(s) Demonstrates an accomplished understanding of the topic(s) and issue(s) Demonstrates an acceptable understanding of the topic(s) and issue(s) Demonstrates an inadequate understanding of the topic(s) and issue(s) Analysis, evaluation, and recommendations Presents an insightful and thorough analysis of all issues identified; includes all necessary financial calculations Presents a thorough analysis of most issues identified; includes most necessary financial calculations Presents a superficial analysis of some of the issues identified; omits necessary financial calculations Presents an incomplete analysis of the issues identified Makes appropriate and powerful connections between the issues identified and the strategic concepts studied in the reading; demonstrates complete command of the strategic concepts and analytical tools studied Makes appropriate connections between the issues identified and the strategic concepts studied in the reading; demonstrates good command of the strategic concepts and analytical tools studied Makes appropriate but somewhat vague connections between the issues and concepts studied in the reading; demonstrates limited command of the strategic concepts and analytical tools studied Makes little or no connection between the issues identified and the strategic concepts studied in the reading Total Writing mechanics Supports diagnosis and opinions with strong arguments and evidence; presents a balanced and critical view; interpretation is both reasonable and objective Supports diagnosis and opinions with reasons and evidence; presents a fairly balanced view; interpretation is both reasonable and objective Supports diagnosis and opinions with limited reasons and evidence; presents a somewhat one-sided argument Supports diagnosis and opinions with few reasons and little evidence; argument is one-sided and not objective Presents detailed, realistic, and appropriate recommendations clearly supported by the information presented and concepts from the reading Presents specific, realistic, and appropriate recommendations supported by the information presented and concepts from the reading Presents realistic or appropriate recommendations supported by the information presented and concepts from the reading Presents realistic or appropriate recommendations with little, if any, support from the information presented and concepts from the reading Writing demonstrates a sophisticated clarity, conciseness, and correctness; includes thorough details and relevant data and information; extremely wellorganized Writing is accomplished in terms of clarity and conciseness and contains only a few errors; includes sufficient details and relevant data and information; wellorganized Writing lacks clarity or conciseness and contains numerous errors; gives insufficient detail and relevant data and information; lacks organization Writing is unfocused, rambling, or contains serious errors; lacks detail and relevant data and information; poorly organized Total of 28 points: Dear Bouquet Resorts Pretend that you are customer who has heard of Bouquet Resorts and you are interested in a Time share. You are going to write a letter of inquiry to Glades Resort. Remember this is a business letter and you are asking for information, you want a better deal on a time share. You want a week in the summer, you would also like a walk in shower, and handicap parking. In inquiry letters you are asking a favor of the reader. Follow these guidelines. 1. If necessary, begin with a statement of goodwill, this is often a compliment to the company or to its goods and services. 2. Provide a general purpose statement. This should be in general terms, provide details in the body of your letters, 3. Use a polite tone, don’t be demanding, or you may never get a response. 4. Provide specifics in your body paragraph, use a list to draw attention to the most important part of the letter. Arrange your list in descending order of importance with the most important issue first. 5. Set up the next step in the communication process (such as you will call at a certain time/date) 6. Express appreciation for reader’s time. 7. If you want a response please be sure to state that and when you would like a response. Letter writing grades grade rubric Grade Description 9-10 This document represents a polished, appropriately-designed effort that would be completely acceptable in a professional situation. It 7-8 5-6 3-4 1-2 is totally error-free; moreover, it is executed with creativity and sensitivity to the nature and needs of the audience and make the best use of available communications presentation technology. The prose style is mature and tight, well-organized, and free of lard. Every part plays an important role in the document's effect and is connected by appropriate transitions. Any graphics are smoothly integrated and effectively placed for communicative success. The content shows that the writer knows how to find, select, and present information in the manner best suited to this audience. This document is less polished and appropriate than A documents, but again would be acceptable (if not notable) in a professional situation. They are also totally error-free, but are weaker than A papers in one or more of the following ways: The style is less tight or more lardy; transitions may be weaker; the appeal to the audience is less certain; the presentation is less polished; graphics may be less appropriate or less smoothly integrated; the content may be less complete or less sophisticated; the use of technology may be less fluent; or the writer may not demonstrate the ability to find, select, and present the right information in a totally appropriate manner. This document is virtually error-free, but is not yet appropriate for a professional situation for one or more of the following reasons: the style is immature, wordy, stilted, or inappropriate for the audience; the topic is mundane; the content is insufficiently developed or presented in a less-than-effective organization; the presentation is uncertain and shows amateurism; graphic information is ineffectively presented or interpreted or inappropriately placed; technology may not be used effectively; appropriate sources of information may not have been consulted; documentation of secondary information may be incomplete or inaccurate. With appropriate revisions these documents may be acceptable in a professional situation. This document contains errors in any or all of the following areas: spelling, grammar, mechanics, punctuation, or format. It may also suffer from one or more of the following weaknesses: inappropriate or casual style; insufficient audience analysis; poor organization or transitions; incomplete or inappropriate content; sloppy, hasty, or amateurish presentation; inaccuracies in data; poor choice of graphic contents, placement, or presentation; inappropriate, incomplete, or missing research; serious faults in documentation; or problems using available technology. This document requires substantial revision to be acceptable in a professional situation. This document does not meet basic standards for professional communication. It may exhibit one or more of the following weaknesses: inability to use standard grammar, spelling, punctuation, and mechanics; missing documentation; poor treatment of content; careless or inappropriate format and presentation; no control over technology; illogical organization; or an obviously inadequate amount of preparation. This document must be completely rewritten before they can be used in a professional situation. REGULATING PROMOTIONS http://saffron.pharmabiz.com/article/detnews.asp?articleid=49805§ionid=47 Wednesday, May 20, 2009 08:00 IST P A Francis Success of a pharmaceutical product in the market is directly related to generation of prescriptions by the medical practitioners. Pharmaceutical companies have to, therefore, motivate physicians to write as many prescriptions as possible for making a product click in the market. It is this nature of pharmaceutical marketing that brings the medical fraternity and the pharmaceutical companies close world over. For the pharma companies, increase in prescriptions will decide the sales and profits whereas for doctors, dependability of the companies on them, bring unlimited returns by way of incentives for prescription. What is overlooked in this relationship is the heavy price the patient pays for the medicine he buys. A major part of the cost of the prescription medicine is on account of the loading of the promotional expenditure on the price of the medicine. What percentage of the cost of medicine is promotional expenditure is not known and is not separately provided in the balance sheet of the companies. But, it is believed that promotional expenditure constitutes almost 25 per cent cost of prescription drugs. The Union ministry of chemicals has taken serious note of such loading of promotional costs to the prices of prescription drugs after a series of reports appeared in a section of the media some time back. Since then, IDMA and OPPI have been talking about a code of ethics for marketing of pharmaceutical products for their members. In fact, they had drafted code of ethics some years back and claim to have circulated among the members. The OPPI code urged the pharma companies not to offer any financial or other incentives for prescribing the medicines and they should promote products based on adequate, unbiased and truthful technical data. IDMA code is also on similar lines. One should not expect such code of ethics will ever be implemented by the associations as the competition between member companies is so fierce. The Department of Pharmaceuticals has taken serious objection to this unethical practices of pharma companies and wanted some kind of control to be enforced by the associations. It had called two meetings of the industry associations in the last few months and OPPI has been asked to draft a common code of ethics for the entire industry. The Department is expected to take a look at the draft and decide how to implement it. It is naïve to expect the members of the associations to adopt such a code and implement it voluntarily. Because, that affects the business of the member companies and there is no guarantee every member will abide by it honestly. Therefore the right option before the Department is to regulate the promotional expenditure by an order if it is really serious about the whole issue. Write a position paper from either the standpoint of the pharmaceutical company, who is trying to make money, or from the standpoint of the consumer or patient who needs the medicine. Research what has been done, if anything, through the government, to address this issue. Points 4 4 4 4 16 Content A position was established and maintained through the paper. Several reasons or examples were given to support the student’s position. Reseach has been conducted to see what government legislation, if any has been passed to deal with this issue or promotion. Paper is free from grammatical and spelling mistakes. Sentences are complete. Total Points Points Earned ____ of 16 pt Dialing for Flowers One very successful direct marketer is 1-800-Floewrs, a pioneer in using direct response television advertising, telemarketing, and ecommerce to generate sales for local florists. The parent company, Teleway, an innovative relationship marketer, set up a network of 2500 US retail florists called BloomNet. Teleway creates , schedules, and runs direct response advertising that generates incomes for this group. To send a gift of flowers, you can call the 800 number (or contact 1-800-Flowers.com) and a local retailer within the recipients code are delivers the flowers. Teleway receives orders from all around the world in one of three telemarketing centers. Each order is transmitted within three minutes to a computer at the florist nearest the recipieners address. The florist makes up the bouquet from the specifications and color photos in Teleways manual and delivers the flowers. In addition to teleivision, the ecommerce company uses direct mail and radionmarket its’ product. Direct mail catalogs are sent to consumer segments in a file of 1.5 million customers, and radio is used generate orders from people at work or in their cars. Those who place flower orders may receive a follow up postcard offering other Teleway products such as gift baskets, candy, or Florida oranges. A Web pioneer since 1992, the company was names “The Top Gift Site on the Web” by Clicksguide.com. It also has enlarged its web presence by buying GreatFoods.com and consolidating the gourmet and specialty foods line with the Flowers Line in an attempt to become the number one source for thoughtful gifts in all occasions. 1. Why is 1-800-Flowers described as a direct market? (2 pts) 2. How does this florist company differ from other florist companies? (2 pts) 3. How many different marketing communication tools does 1-800-Flowers use in its direct marketing? (2 pts) 4. Teleway gives a book with pictures that florists can use to duplicate the flower arrangement. What if a florist is out of a certain flower? Should they compensate with a different but equal flower? Why/why not? (2 pts) 5. 1-800-Flowers guarantees that their flowers are fresh. What if the florist has older flowers and decides to use them in your arrangement. Is this ethical/unethical? How? (2 pts)