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Managing Personal Communications Marketing Communications Marketing communications today increasingly occur as a dialogue as technology and software have enabled the consumer to dynamically interact with a company 24/7. Direct Marketing Use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen. Direct Marketing Channels • The benefits of direct marketing ‒Convenient for consumer ‒Provides information to consumer on products and services ‒Supports relationship building efforts with consumers ‒Allows for more individual targeting and personalization versus mass media Direct Marketing Channels • Direct mail ‒Can target consumers at different geographic areas or specific to one consumer (i.e., state, sectional center (first three digits of zip code), zip code, zip+4, or specific mailing address ‒Leverages technology to capture and analyze consumer information in forms of data to deliver more personal communications Cont… ‒Can create different marketing campaigns for current customers and prospects (never were a customer or are an aged customer with no recent activity). Retention strategy is used for existing customers and acquisition strategies are used for the latter ‒Each business vertical market has best practices of direct mail ‒Provides opportunities to measure lifetime value and word of mouth effects Catalog marketing • Use of print to provide consumers with product information and ability to order products • Can be supplemented by in-store merchandise if cataloger has retail presence • Catalogs can be customized at individual consumer level • Business to business catalog marketing supports personal selling effort Cont…. • Business to business catalog marketing is challenged by frequent movement of employees versus consumer residential movement, which can be tracked via ancillary processes such as national change of address. Telemarketing • Use of telephone to attract, promote, sell, and service consumers and businesses • Recent legislation places constraints on who may be solicited (e.g., do not call list) • Inbound telemarketing (receive calls from customers or prospects) • Outbound telemarketing (organization initiates calls to customers or prospects Cont… • Telemarketing functions • Telesales - take orders, open, or manage customer accounts • Telecoverage - calling of customers to sustain or improve customer relationships • Teleprospecting - generate and qualify new leads either by phone or another channel • Customer service and technical support Other Media for Direct Response • Newspapers and magazines can also contain response cards to be placed in mail • Radio • Direct response TV ads • TV Infomercials • Billboards (effectiveness enhanced by web addresses as one word may be sufficient for consumer recall versus 10-digit phone number) • E-marketing Public and ethical Issues in Direct Marketing • Hard-sell and computerized telemarketing offend consumers • Unscrupulous marketers can take advantage of unwary public • Marketing communications and offers can be misleading • Growing consumer of too much information being collected on consumers Interactive Marketing (leverage Internet for interaction) • The advantages of interactive marketing ‒Internet provides marketers and consumers with opportunities for greater interaction and individualization. ‒Availability of contextual placement, buying ads on sites related to the marketer’s offerings ‒Increase ability to reach consumers and track behavior Interactive Marketing (leverage Internet for interaction) ‒ Individualized messages optimize investment ‒ Increases reach cost effectively ‒ Online communities precipitate knowledge for companies and consumers Interactive Marketing (leverage Internet for interaction) Disadvantages of interactive marketing • Consumers can opt-out of communications • Companies can lose control of the message • Online “Clicks” may give companies misleading information. For example, a large number of clicks by a consumer on the web site may be a result of a poorly designed web site. Types of Interactive Marketing • Web sites • Key issues is attracting first time and encourage repeat visits • Microsites – Limited area on the web managed and paid for by external advertiser/company, designed to supplement a primary site • Search related ads – • Links provided along with consumer search results, fee paid only when link is clicked on by consumer (cost per click correlated with click rank and popularity of keyword searched) • Search Engine Optimization has become a crucial part of marketing with greater emphasis creating more effective search ads Types of Interactive Marketing • Display or banner ads ‒ Small rectangular boxes containing text and images, which are paid placement. So the larger the audience the higher the cost ‒ Consumers only spend 5% of their time online searching for information ‒ Interstitials are ads, often video and animation, which pop up between changes on a web site. Consumers often block these ads • E-mail campaigns are cost effective but run risk of spamming consumers and thus may be filtered by consumers Types of Interactive Marketing • Mobile marketing growing ‒Major opportunity with cell phones for advertisers to reach consumers on the “third screen”, TV and computer being the other two screens. ‒Mobile apps – “Bite-sized” software programs that can be loaded onto smart phones. ‒Monitoring consumer location allows for location-specific promotions. Thank You