Download Internet Direct Marketing

Internet Advertising &
Promotional Communication
Class 3
Integrated Marketing Communication
(IMC)
Featuring in Class 3…...
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Integrated Marketing Communication
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Definitions
Problems & Challenges
Marketing Communication Elements
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Public Relations
Sales Promotions
Direct Marketing
IMC: Definitions
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all of the marketing communication elements should
be integrated so as to maximize the overall output,
sales or profits?
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MC elements: advertising, public relations, sales
promotion, personal selling, and direct response or
database marketing
use of two or more MC elements?
use of multiple media to advertise a brand with an
underlying theme or selling proposition?
IMC: Definitions
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Interactive IMC: “integration of three or more
MC elements with a common underlying theme
or goal in two or more Internet platforms
IMC: Problems & Challenges
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Lack of agreed, workable definitions of IMC
Implementation
Measurement
Marketing Communication Elements
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Advertising
Public Relations
Sales Promotion
Direct Marketing
Personal Selling
Public Relations
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a marketing and management function that
focuses on communications that foster
goodwill between a firm and its constituencies
What PR can achieve
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Build goodwill or favorable corporate image
Promote products or services
Facilitate internal communication
Function as damage control and fight negative
publicity or manage crisis situations
Traditional PR tools
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Press or news release and feature stories
Company newsletters
Interviews and press conferences
Community event sponsorship
Publicity
Internet PR:
advantages, opportunities, & challenges
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Cost, time and efforts savings
Interactive, real-time communication
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efficient internal and external corporate
communication, targeting and personalization of
messages
frequent, quick, efficient communication via email,
discussion forums, chats
Supports for proactive PR and IMC
Internet PR:
advantages, opportunities, & challenges
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Directly measurable effects
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Unlimited amount of information
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accountability
opportunity as well as challenge
Quick and easy distribution of information and
even false and hazardous rumors about your firm
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need for constant monitoring
Internet PR tools
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News release archives & online library (in corporate sites
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Announcement
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IMC opportunities for soliciting subscription
Public appearance
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Beware of “netiquette” when using discussion forums, newsgroups,
email lists
Newsletters
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Need for publicizing the feature
Integration with email, sales promotion items & banner or link
exchange is a good idea
Guests participate in a chat or broadcast via streaming media
Event sponsorship
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May be tied with sales promotion
Internet PR examples
http://www.mcgraw-hill.com/corpinfo/resource/index.html
http://www.hilton.com/corporate/index.html
http://www.hp.com
http://www.bankofamerica.com.
http://chat.yahoo.com/c/events/info/2000/03/06/030600manshow.html
http://www.msnbc.com/chat/cover.asp
http://www.broadcast.com/concerts/bluenote/
http://travel.yahoo.com/destinations/promos/exorbis/entrypage.html
http://www.mcdonalds.com/whatsnew/usa/passport/index.html
Note: examples are subject to expiration any time and may no longer be available
Sales Promotion
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short-term promotional activities or incentives
designed to generate an immediate increase in
sales
Traditional sales promotion tools
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Consumer sales promotion
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e.g., coupons/discounts, rebates, refunds, premiums,
sweepstakes, contests, free samples, loyalty program, etc.
Trade promotion
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e.g., Point-of-Purchase (POP) displays, co-op advertising,
cash or merchandising allowance, slotting fees, discounts,
contest, trade shows
What sales promotion can achieve
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Cause a rapid increase in sales activity and volume
Attract new buyers to trial purchases
Defend an established brand against new competition
Reward loyal consumers as they continue to use the
product
Provide retailers with additional marketing support
Challenges of sales promo
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Marketers and retailers can become dependent on
sales promotion
Matching competitors’ sales promotion can lead to a
sales promotion spiral -- no win situation for all
involved
Extensive sales promotion can damage brand image
Problems of sales promotion abuse (e.g., fraudulent
coupon redemption, or sweepstakes and contests
misrepresentation)
Internet sales promotion tools
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Online coupons, sweepstakes, premium
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to be discussed in lecture
Free samples, loyalty programs, online contests and
games, and others
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See ZA text
Internet Coupons
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A form of discounts or price-offs
An electronic, printable form that can be used to
discount the price of items or services offered by a
company
What Internet coupons can achieve
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Drive traffic to retail stores
Motivate to buy more and early
Increase favorable response
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due to the ability to target by geographic location,
interests, taste and previous behavior with other coupons.
Minimize waste in delivery
Save cost & time
How to use Internet coupons
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Understand the threats of encouraging customers to reject
brand loyalty for price consideration
Breaking through coupon clutter is critical
Study what kinds are available and effective
 online coupon companies can help – e.g., E-centives,
CoolSavings, and Val-Pak)
Assess your competitors’ use of coupons
Target and customize the offer
Create synergy by integrating with other MC efforts
Examples of Internet coupons/price-off
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Pizza hut (www.pizzahut.com) – “build your own coupons”,
“find coupons in your area”— can search coupons
redeemable in their local area
GAP (www.gap.com) – “get 15% off $75 in stores & online
when you join our mailing list”
Can you find a good example of online coupons or discounts
in your area? Any case of IMC involving coupons or
discounts?
Note: examples are subject to expiration any time and may no longer be available
Online Sweepstakes
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a promotion in which prize or prizes are given to
the winners who are determined on the basis of
chance alone
What online sweepstakes can achieve
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Create awareness, excitement and consumer
involvement
Enhance brand image, if used properly
Gain retail support
Build consumer database
Produce immediate sales
How to use online sweepstakes
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Understand the challenge of offering the right prize
to attract the target
Test to see what works for the target
Create synergy by integrating with direct marketing,
PR, or advertising
Establish a strong tie between the sweepstakes and
the brand
Examples of online sweepstakes
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McDonald’s (www.mcdonalds.com) – “IT’S
Winning Time”
Coca Cola (www.cocacola.com) – “Watch & Win”
Can you find an example of online sweepstakes? A
case of IMC involving sweepstakes in your area?
Note: examples are subject to expiration any time and may no longer be available
Premium
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an item, other than the product itself, given to
purchasers of a product as an incentive to buy
What online premium can achieve
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encourage customers to make an immediate
purchase
build traffic to the store or the website
build a customer database
How to use online premium
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Integration with advertising and other MC
efforts is effective
Targeting the offer is critical
Examples of online premium
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AT&T (www.att.com) – “GET A GREAT DEAL
when you buy online. Get a FREE Nokia 3360
when you order new service online starting at just
$19.99 a month”
Levi’s (www.levis.com) – “Try new Type1 jeans
on at Levi’s retail store, and get a FREE CD”
Can you find an example of online premium? A
case of IMC involving online premium in your
area?
Note: examples are subject to expiration any time and may no longer be available
Direct Marketing
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“a form of marketing that occurs directly between
the marketer and the consumer and that includes
activities designed to generate direct sales or any
actions short of sales”
Internet direct marketing:
advantages, opportunities, and challenges
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Cost effectiveness
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Time / convenience
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60% to 65% cheaper than traditional direct mail
marketing
business anywhere, any time.
Ease and power of interactivity, profiling, targeting,
customization, and automation
Global market coverage
Database, relationship marketing potential
What Internet direct marketing can achieve
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Sales (a purchase order)
Sales leads (an inquiry)
Traffic (a visit or test-drive at a place of business
for purchase)
A database of customers (completed
registration/subscription/response)
Internet Direct Marketing : Direct Email
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Direct marketing can be implemented in different
ways -- email, banners, own site
Email is the most frequently used platform for
internet direct marketing
More and better creative options are now available
Obtaining an accurate, opt-in email list is key
How to use direct email marketing:
Using in-house lists
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Appropriate for frequent e-mailers, due to ownership
of the list, long-term cost savings & control
May start with current customer list
Build the list via registration on one’s site,
subscription to newsletters, email solicitation
Offer incentives to increase response
Maintain updated list -- cost for upkeep
How to use direct email marketing:
Renting lists form brokers
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More common approach
Numerous list categories available
Example of list brokers
Acxiom DirectMedia (www.directmedia.com )
MatchLogic (www.matchlogic.com)
NetCreations (www.netcreations.com )
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Price rangeing from less than $100 per thousand
names to more than $1,000 – the more
specific/targeted the list, the higher the price
How to use direct email marketing:
Making sure the list to use is opt-in
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Opt-in (with permission): everyone in the list has agreed that
they want to receive email solicitations
Avoid any list put together by software that surf the web
looking for new email addresses
Check the reputation of the list broker
Check list broker reference (talk to its clients)
Test the list in a small scale emailing first before emailing the
entire list.
Read the Zeff and Aronson book for more insights, tips, and
examples concerning the effective use direct email or direct
advertising