Transcript Direct Marketing

An Introduction to
Integrated Marketing
Communication
What is Promotion?
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Communication process in marketing
It is used to create a favorable predisposition
toward brand concept, services, idea, or
person.
Implementing the three other marketing mix
factors
Achieving market segmentation, product
differentiation, and positioning
Enhancing revenues and profits
Promotional Mix
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A blend of communication tools and activities
used by a firm
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Advertising
Sales Promotion
Publicity/Public Relations
Direct Marketing
Interactive/Internet marketing
Personal Selling
Advertising
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Any paid form of non-personal
communication about an organization,
product, service or idea by an identified
sponsor.
10 Leading Advertisers in the
United States, 2006
Rank
Advertiser
Ad Spending (Millions)
1
Procter & Gamble
4,898
2
AT&T
3,345
3
General Motors Corp.
3,296
4
Time Warner
3,089
5
Verizon Communications
2,822
6
Ford Motor Co.
2,577
7
GlaxoSmithKline
2,444
8
Walt Disney Co.
2,320
9
Johnson & Johnson
2,291
10
Uniliver
2,098
20 Leading Advertisers in
Taiwan, 2009
Major Decisions in Advertising
Advertising
Pros:
 Cost-effective for large audiences
 Differentiates between similar products, e.g.
Marlboro, 多喝水, 泰山Twist Water.
 Brand equity
 Empathizes with target audience
 Control of the message
Advertising
Cons:
 Media and production costs
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On average, U.S. advertisers pay $332,000 to
produce a single 30-second television commercial;
Nike’s “The Wall” – $2,000,000.
25,000～40,000/10sec.
Effectiveness difficult to judge
Credibility and image problems
Sales Promotion
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Activities that provide extra value or incentive to the
sales force, distributors or the ultimate consumer
and can stimulate immediate sales.
Expenditure in Billions of Dollars
Advertising
Outside U.S.
2004
U.S. Sales
Promotion
1980
U.S. Advertising
$0
$50
$100
$150
$200
$250
$300
$350
Sales Promotion Tools
Coupons
Coupons
Samples
Samples
Trade
Allowances
Premiums
Premiums
POP Displays
Displays
POP
Contests/Sweepstakes
Contests/Sweepstakes
Training
Training
Programs
Programs
Trade
Trade
Shows
Shows
Coop
Cooperative
Advertising
Advertising
Refunds/Rebates
Refunds/Rebates
Bonus Packs
Bonus
Packs
Loyalty Programs
Loyalty
Programs
Events
Events
• Consumer-oriented
• [For end-users]
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Trade-oriented
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[For resellers]
Various Uses of Sales
Promotion
Introduce new
products
Combat
Competition
Enhance
personal selling
Get existing
customers to
buy more
Sales
Promotion
Tie in
advertising &
personal selling
Attract new
customers
Maintain sales in
off season
Increase retail
inventories
Sales Promotion
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Pros:
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Extra incentive to consumer or retailer
Appeals to price sensitive consumer
Generates interest in product or ad
Easier to measure, e.g. 7-11 Hello Kitty: revenue↑11.82%,
profits↑29.33%.
Cons:
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Short-run strategy
Affects brand image, brand equity
Stock problem
Public Relations
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Building good relations with the company’s
various publics by obtaining favorable
publicity, building up a good corporate image,
and handling or heading off unfavorable
rumors, stories, and events.
News stories, features, sponsorships, and
events seem more real and believable to
readers than ads do.
Megamarketing (巨行銷)
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Megamarketing is the strategic coordination
of economic, psychological, political, and
public relations skills, to gain the cooperation
of a number of parties in order to enter or
operate in a given market.
4Ps + 2Ps (politics & public opinions)
Examples: PepsiCo in India, Harley-Davidson.
Public Relations Tools
Publicity
Vehicles
Community
Activities
Special
Publications
Corporate
Advertising
Public Affairs
Activities
Cause-related
Marketing
Special Event
Sponsorship
Cause-related Marketing (公益
行銷, 善因行銷)
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Link the firm’s contributions to a designated cause to
customers’ engaging directly or indirectly in
revenue-producing transactions with the firm
The creation of the term "cause-related marketing"
is attributed to American Express.
Some experts believe that the positive impact on a
brand from cause-related marketing may be
lessened by sporadic involvement with numerous
causes.
Branding: self-branded, co-branded, and jointlybranded.
Public Relations
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Pros:
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Credibility
Low cost
News value generating word-of-mouth
Cons:
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Lack of control
Negative as well as positive
Publicity (公關宣傳)
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Nonpersonal communications regarding an
organization, product, service, or idea not
directly paid or run under identified
sponsorship.
It usually comes in the form of a news story,
editorial, or announcement about an
organization and/or its products and services.
Publicity Vehicles
Feature
Articles
News
Releases
Press
Conferences
Publicity
Vehicles
Interviews
Special
Events
Advertising vs. Publicity
Factor
Advertising
Publicity
Control
Great
Little
Credibility
Lower
Higher
Reach
Measurable
Undetermined
Frequency
Schedulable
Uncontrollable
Cost
High/Specific
Low/Unspecified
Flexibility
High
Low
Timing
Specifiable
Tentative
Direct Marketing
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Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships.
Four characteristics: nonpublic, immediate,
customized, and interactive.
Direct Marketing
Direct
Mail
Direct
Response
Advertising
Internet
Sales
Direct
Marketing
Shopping
Channels
Telemarketing
Catalogs
Direct Marketing
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Pros:
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Convenience for consumers
Selectivity of audience
Tailored/ customized communications
Easier to measure effects
Cons:
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Direct mail and telemarketing – too much
“Junk mail” image
Personal Selling
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Personal presentation by the firm’s sales force for
the purpose of making sales and building customer
relationships.
Pros:
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Communication flexibility
Customized to consumer
Feedback
Specific targeting
Cons:
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High cost per contact
Not cost-effective for large audience
Low consistency of message