Download Chapter 9

Electronic Marketing
Chapter 9
Integrating the Promotional Mix
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing the Online Awareness
• The Web is well suited for the presentation and persuasion
aspects of the marketing mix
• Capabilities of the Web have matured greatly during the last
few years, and marketers are introducing new service
applications
– Abilities to personalize the user’s site and comparison of
search engines
– Improving the site’s navigation
– Partnering with complementary products and services
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing the Online Awareness
• The strategic communications value of online promotion
– Considered a support media vehicle for most consumer goods
and services
– As support, online marketing’s function should build on
awareness and action process because of the unique capability
of viewer interaction
– The marketer should focus her attention on thinking “external
dialog” rather than “internal monologue” allowed by two-way
communications ability
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing the Online Awareness
• The strategic communications value of online promotion
– The marketer must produce appropriate content guided by
information rather than exaggeration
– The two-way dialog sets the Web apart from traditional media
since the majority of mass vehicles direct their messages
through a one-way monologue
– The Web becomes the ideal marketing medium because of its
global reach
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing the Online Awareness
• Stages in developing online awareness
– The site will require its own marketing to establish visibility
– The next stage of building awareness is building credibility and
believability
– The third step of establishing an online awareness is fostering
online longevity
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Commerce and Communications
• In executing this awareness strategy, the marketer should
eventually balance commerce with electronic
communications
• To stress the importance of relationship marketing and
customer service calls for enterprises to differentiate
themselves by constantly providing superior service at
every customer encounter
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Commerce and Communications
• Relationship marketing can encompass a choice of
marketing strategies depending on company needs in
customer and prospect interaction.
• The Web can be used for different levels of interaction
throughout the customer lifecycle.
– Customer Acquisition
– Customer Conversion
– Customer Retention
– Customer Loyalty
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Commerce and Communications
• The unique “push” property of the Web
– The Web was first based on “pull” technology, that the client
browser must request a Web page before it is sent
– As in direct marketing, the Web evolved into a “push” medium
delivering customized news and advertising to individuals at
work
• Marketers can combine the push interactivity so that the
promotional program can use both a push and pull strategy
at the same time
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Formulating the Promotional
Strategy
• Promotional mix consists of
– Advertising
– Sales promotion
– Public relations
– Direct marketing
– Cybermarketing
– Personal selling
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Advertising
• Advertising is any paid form of non-personal message about
an organization, product, service or idea promoted by an
identified sponsor directed to a mass audience
– Advantages
• In relative costs, it is an efficient method for reaching large
audiences, especially for national marketers
• Efficient method for building image through visuals
• Entertaining medium because of sight, color, motion, sound
• Targetability to reach market segments through program selection
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Advertising
– Disadvantages
• The cost of national advertising coverage is expensive; production
costs for creating the national commercial are also high
• National advertising is not selective in targeting specific markets,
thus creating wasted coverage
• Advertising materials must be prepared far in advance and allow
little flexibility in making changes to ads quickly
• There is much water among advertising messages, vehicle
promotions, and public service announcements
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Direct Marketing and
Cybermarketing
• Direct marketing and cybermarketing are promotional
elements in which organizations communicate directly with
the target customers to generate response or transaction
– Advantages
• The ability to target customers via database collection which
provides high selectivity
• Direct marketing pieces and Web sites can contain large amounts
of product and service information
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Direct Marketing and
Cybermarketing
– Advantages
• Direct marketing allows for the capability to personalize mailed
items
• Direct marketing has the ability send product samples to
prospects or targets users of competing brands
• Cybermarketing on the Web allows e-mail campaigns that can be
cost-efficient
• There is opportunity for repeated exposure according to the
marketing plan
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Direct Marketing and
Cybermarketing
– Disadvantages
• Cost of direct marketing using traditional media are high since the
messages are presented to target groups usually small in number
• Initial costs of preparing and maintaining a Web site can be
expensive
• Image problems that can be traced to “junk mail” or “spammed email”
• Direct mail fights the clutter problem
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Sales Promotions
• Sales promotions are those marketing activities that provide
extra value or incentive to the sales force or to the ultimate
consumer
– Advantages
• Rapid increase in sales activity and volume
• Attracts new buyers to trial purchases
• Defend an established brand against new competition
• Reward loyal customers as they continue to be product users
• Sponsoring specific events can provide additional marketing
support
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Sales Promotions
– Disadvantages
• Marketers and retailers had become dependent on sales
promotion by “training” their customers to buy only when the
product is on sale
• Matching competitors’ sales promotions can lead to a sales
promotion spiral
• Extensive sales promotion can erode brand perception because of
the discount nature of sales promotion
• There is substantial opportunity for sales promotion abuse such
as fraudulent coupon redemption or sweepstakes
misrepresentation
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Public Relations
• Public relations and publicity are associated with nonpersonal communications regarding an organization,
product, service, or idea not directly paid for by an identified
sponsorship
– Advantages
• Public relations can act as an “early warning” system to protect
the organization’s franchise with the community and with its
audience
• Positive publicity efforts can produce an aura of credibility as the
media becomes “unbiased, third-party” endorsers
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Public Relations
– Advantages
• A thorough public relations program can earn the company’s
recognition as a solid community citizen
• Although considered a short-term tactic, PR is a low-cost, longterm promotion strategy
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Public Relations
– Disadvantages
• Publicity can be positive or negative; negative publicity can do
irreparable harm to the organization’s reputation and its
relationships with its publics
• Public relations programs are not always under the control of the
marketer
• Public relations plans are extremely time-consuming since PR
programs should be developed for each of the firm’s
constituencies.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Personal Selling
• Personal selling is defined as a form of person-to-person
communication in which a seller attempts to persuade a
second party to buy, rent, or lease
– Advantages
• Beneficial relationships can be formed and last for many years
• Dyadic communication allows the sender to tailor or alter the
message according to the prospect’s reactions
• Personal selling is a face-to-face experience, disregarding mass
media
• Yields more immediate and precise marketing results
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Personal Selling
– Disadvantages
• Cost of personal selling calls is quite high ($350 +)
• Reach of personal selling is extremely limited
• Concern in management that the field sales representative is not
presenting the product or service with the same and consistent
information
• The purchase cycle can be quite long, perhaps several years,
among durable goods
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Formulating the Promotional
Strategy
• With these five building blocks marketers create new
promotional strategies year after year, applying them to:
– consumer and trade promotions
– local, regional, national, and international agendas
– campaigns for products and services
– efforts for business services and farm products
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Formulating the Promotional
Strategy
• Certain promotional mix elements perform better than
others in different categories
– Startup companies and those in their growth stages,
advertising and public relations can build awareness
– As the product matures, its potential for attracting new
customers matures as well, and growth peaks
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Formulating the Promotional
Strategy
– As the product reaches the declining stage of the cycle, to
entice retailers and wholesalers to stock the product, money is
again shifted from consumer sales promotion to trade sales
promotion
– In the declining stage, personal selling complements the trade
sales promotions in pushing sales of the product as long as
possible
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• The Web is able to tell the story of the product, and it can
react to the impressions or questions that the viewer might
have after the online session
• The process of isolating the unique benefit(s) is called
setting the “unique selling proposition”
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• Creativity has been defined as the “ability to generate fresh,
unique, and appropriate ideas that can be used as solutions
to communications problems”
– Start with a creative platform that delineates the benefits of the
product
– This creative platform is transformed into the creative strategy,
a summary of all significant research, consumer attitudes, and
client input and directives
– From these summary/position lines, the balance of the
campaign can be rendered into communications tools
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• The marketer should remember why the viewer is using the Web in
search of convenience, quality, efficiency, delivery ease,
availability, and performance.
• In developing the creative direction, the marketer should judge the
creative solutions as objectively as possible
• Requirements should be mandated in communications materials
– To include a Web site or e-mail address in all advertising and allied
materials
– Substantial creative thought to domain names that are immediately
recognized as the company “label”
– Consistency should also be in reflection of the Web address to a
similar e-mail address
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• The way to establish a company’s online recognition
– First investigate the proposed domain name through the
InterNIC registration site, check on the availability of the name,
and then proceed with the basic identity elements
– Suggestion is that a company needs no more than one domain
name
– The marketer should inquire with the company’s ISP to ensure
the firm’s address can accept a non-www subdomain
– Just ask the ISP for an alias to the site’s DNS entry point
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• Appealing to the senses or the stimuli that trigger sensory
reactions, such as smell, taste, touch, sight, and sound, can
conjure up association with certain product features
• Marketers might consider engaging a new type of
advertising agency, the interactive advertising agency; this
interactive agency has developed new capabilities to
conceive and produce “new media” campaigns and
materials based on electronic vehicles
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• The services of an interactive agency can include:
– Combining state-of-the-art technology with unique,
multidisciplinary approach to marketing helping companies
communicate, inform and sell
– Providing communications and business programs that integrate
strategic counsel with traditional marketing disciplines:
• product branding and advertising
• advanced technology solutions
• new media: including Internet, Extranet, and Intranet
development, database architecture, and enterprise systems
integration
– Produce dynamic page creation for your sites using relational
databases
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
• The services of an interactive agency can include:
– Enabling your sites to perform secure electronic commerce
and integrate personalized technology for user customization
– Streaming media expertise allows the client to exploit the
benefits of Web casting and high performance Web servers
– Office services for the development and production of
interactive kiosks for retail and trade show applications, laptop
sales presentations, and hybrid CD-ROMs
– Offering international expertise for reaching global audiences
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Developing a Unique Creative
Strategy
Staying on top of technology is a fulltime job, and giving the
“technological watch” assignments to marketing staff
members might keep the company’s marketing environment
up to date
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• Promotional plan is composed of any process elements,
each a small but important link that on completion, should
result in meeting corporate objectives
• Elements must be identified and scheduled and then given
consideration as to its role in the promotional mix, the
message, the media
• Creative themes, careful planning and execution, and
creative direction must be consistent throughout the
campaign
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• Elements in a plan for creative development might include:
– Source selection
– Message selection
– Media channels
• Objective settings are important in measuring the final
result of the marketing program
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• The marketer should define what the online communications
objectives are to be:
– Will the electronic resources support an introductory mass
media product merchandising program?
– Should the electronic marketing resources focus on improving
database collection and output analysis?
– Will the Web site be static or will it be a Web-enabled one that
can filter and link several databases for relational information?
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• The marketer should extend the marketing plan through
online media.
• Do the online capabilities need to support the advertising
objectives?
• Sales promotion is a solid method for introducing new
products.
• Sampling strategies are very important in matching the right
product to the right prospect in the right place.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• The marketer should define the sales promotion objectives
before initiating the sales promotion and be able to judge
whether the sales goals were met
– To accelerate sales of new or existing products
– Promotions are directed at consumers, but an unspoken goal
many times is to placate retailers in shopping malls by
increasing sales traffic to the stores
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• Sales promotions can fail
– An overpowering sales promotion can be as bad as one that
flopped
– Too successful, the lack of the toys or substituted discounts
might disappoint the customer and provoke anger at the
company, and lead to accusations of false or misleading
advertising
– Unsuccessful sales promotions could lead to unpopular
promotional merchandise that did not appeal to the market and
did not sell
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• Sales promotion events can be very entertaining
• Individuals working in the sales promotion department must
possess the same type of creative minds as those in
advertising or product development
• Sales promotions can be targeted at internal or external
audiences
• PR depends heavily on publicity, and publicity can be the
greatest friend or the greatest enemy to an organization
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• PR should be carefully examined and cautiously pursued in
generating positive press relations
– What could be the appropriate objectives?
– The marketer should go through the same process of
segmentation to decide which benefits match which segments
best
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Components of the
Promotional Plan
• Public relations programs work best at proactively
influencing rather than quickly rushing in a reactive fashion
• The overriding purpose of a public relations plan is to keep
in touch with attitudes and opinions of the various
constituencies
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo