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Explain how the use of technology in promotion has changed the way marketers communicate with customers Internet Marketing and communicating with customers By communicating with customers, prospects, and others one-on-one, firms can build databases that help them meet specific needs of individuals, thus building a loyal customer base. The Internet provides technology which transforms the customer communication process into a real time interaction which takes place in the customer’s home, or cubicle at work. Blogging: Blogging has created a new way for companies to manage their image, connect with consumers, and generate interest in and desire for their products. Direct channel of communication between the company and the consumers allows for personalized feedback. Blogging is a form of a direct and personalized communication model. Corporate blogs are sponsored by a company with one or more brands and is maintained by a company employee. Non-corporate blogs are independent and not associated with the marketing efforts of any particular company or brand. E-mails: Send out promotional information to target market e-mail addresses Banner ads, pop-ups and interstitials should still be viewed as brand promoting and not necessarily sales drivers. Technology provides the ability to track how many of a website's visitors click the banner, investigate a product, request more information, and ultimately make a purchase. Company website: Web sites provide a new way of transmitting information, entertainment, and advertising, and have generated a new dimension in marketing: electronic commerce Social Media (Facebook) Text messaging Instant messaging Search engine ads Links from one webpage to another webpage B. Identify ways that the use of technology positively impacts the promotion function. Advantage of Promotion through Internet: 1. Cost saving: Cost of Internet promotion is very little as compared to any other promotional media. 2. Instant reach: Flow of communication through the internet is fast and instant and so reaches the audience instantly 3. Longer Impact: Content once put on internet can be there forever so it’s not a time bound investment 4. Saves Time: Internet marketing helps save time. One can send a message to a large audience in very little time. C. Discuss ways that the use of technology negatively impacts the promotion function. Disadvantage of Promotion through internet: 1. Limited Reach: message promoted through internet can be reached only by the people who use computer and understand technology. If one firms target market is typically old age people who don’t understand how to deal with computer, this medium can't work there. 2. Lack of Personal Touch: An internet marketer or salesperson can not be in personal touch with a customer as they can be in direct selling or other promotional techniques. The impact of the tool can be less. 3. Authencity: People many time don‘t consider information on the net as authentic information and don't believe it. Direct marketing and Unwanted e-mails or spam with viruses attached Direct email is a popular and common form of epromotions although slowly becoming the most hated by many consumers. Organizations can send e-leaflets to hundreds and thousands of respondents, hoping a small percentage will reply. The problem is that for every 100 emails sent the response rate will be 1-2! Direct emailing is also known as SPAM which stands for Sending Persistent Annoying eMail. (SPAM). A computer virus possibly attached to the ad Overload of information with too many ads coming across the web site or web page constantly A waste of advertising dollars with the company “hoping” that the consumer is seeing the ad, when research shows that we are seeing less than half of what is being advertised Without parental control, children seeing and receiving negative ads and negative advertising messages Bluetooth technology and companies texting ads to cell phones (mobile media) can encroach on consumer privacy Internet has now been used effectively by marketers since 1994. Any organization without a strategy to utilize the Internet for marketing is probably making a big mistake. Promotion is the transfer of information with the goal of persuading, informing, or reminding. The promotional mix is personal selling, advertising, sales promotion, and publicity There are many ways to use technology in the promotion function such as viral marketing (encourages others to carry your marketing message via e-mail, using their own network of relationships -and preferably their own resources), banner ads on the internet, and google adsense, pay-per-click links, paid ads in targeted e-mails, opt-in e-mail Publicity Sales reps Technology is mainly used for the informing function of the promotional mix but can be used for other aspects such as personal selling. Banner ads and AdSense are used in the advertising function of promotion. Personal selling could be achieved through private chatrooms with employees. Ads on frequently visited websites such as facebook link to the company website Television commercials motivating the viewers to purchase the product Customers are encouraged to Bookmark the company’s site There are only three kinds of commercial Internet activity: You can use the Internet to provide news or information, to sell goods or services directly online, or as a promotional device for an offline business. You can't use the Internet to: Ship physical goods, cook food, or build a house, but you can certainly use it as an advertising medium, and possibly as a direct sales channel for a business that does one of these things. Internet marketing 10 Reasons why you should: 1. The Go-To Place for Information 2. What Customers Expect. The Internet is not only becoming the resource of choice for finding information, in the next few years it is also likely to be the expected location where customers can learn about products and make purchases. 3. Captures a Wide Range of Customer Information 4. Extreme Target Marketing 5. Stimulate Impulse Purchases 6. Customized Product and Service Offerings 7. Takes Prospects Right to the Sale. 8. Conveys Perception of Being a Full-Service Provider. 9. Lower Overhead, Lower Costs, Better Service. 10. Create Worldwide Presence. E. Describe how technology has enhanced opportunities to contact customers with promotional messages. Opportunities to contact customers exist through: Text messaging Bluetooth technology E-mail target market Instant messaging Social media Banner ads F. Discuss ways that technology has facilitated the use of sales promotions. Sales promotions – short-term incentives that encourage customers to buy products or services. Consumer promotions – sales strategies that encourage customers and prospects to buy a product or service. Coupons – are certificates that entitle customers to cash discounts on goods or services. Companies are encouraging customers to download and print online coupons. Groupon – started in 2008 offering deal-of-the-day coupons online for certain stores if enough customers in one city signed up to use them. Premiums – or giveaways are low-cost items given to consumers at a discount or for free. Deals – price packs offer short-term price reductions that are marked directly on the label or package, such as a retailer selling T-shirts for $10.50 each or $6.00 each for two or more. An insurance company such as Allstate might offer a price reduction based on a “bundle” package to include car and homeowners insurance. Incentives – are generally for higher priced products, awards, or gift cards that are earned and given away through contests, sweepstakes, special offers, and rebates. Incentives are used to create excitement and increase sales. Contests are games or activities that require the participant to demonstrate a skill. 2. Sweepstakes are games of chance. 3. Special offers and rebates – customers go online and register to make a purchase or receive a discount from a marketer. 1. Product samples – a free trail size of a product sent through the mail, delivered door-to-door, or given away at retail stores and trade shows. Sponsorship – sponsors negotiate the right to use their logos and names on retail products to enhance their corporate image, (such as NASCAR car racing team). Promotional tie-ins 1. 2. Cross-promotion Cross-selling Product placement – consumer promotion that involves the verbal mention or appearance of a brandname product in a television series, movie, or sporting event. Product placement has increased on television shows because technology allows viewers to fast forward through paid commercials. Online Loyalty Marketing Programs – (frequent buyer, frequent shopper, or reward programs are now online). 1. The Internet search engine Yahoo! Awards points to users who buy from certain retailers or visit certain Web sites. 2. Companies use email to notify loyal customers of exclusive sales. The customer maybe directed to special online-only discounts or given a chance to try new products first. Point-of-Purchase Displays – designed primarily by the manufacturer to hold and display their products. Usually placed in high traffic areas and promote impulse purchases. Kiosks – stand alone structures. Web-based or display-screen kiosks disseminate information to the customers G. Explain specific applications of technology in promotion Promotion is the transfer of information with the goal of persuading, informing, or reminding. There are many ways to us technology in the promotion function such as viral marketing, banner ads on the internet, and google adsense. Technology is mainly used for the informing function of the promotional mix but can be used for other aspects such as personal selling. Banner ads and AdSense on the internet are used in the advertising function of promotion. Personal selling could be achieved through private chatrooms with employees online consultants Ads on frequently visited websites such as facebook link to the company website Television commercials motivating the viewers to purchase the product Web Page Advertising on cellular phones SMS - Commonly Known a text message Promote using online advertisements: Facebook, Twiter, e-mail reminders, Google, side bar ads Online team Memorabilia stores. Electronic ticket sales Ipod apps Interactive websites with personal chatrooms, and informational videos on the business. Reader-boards Facebook page Commercials TV/ radio Interactive banners on websites Personalized text messages sent to the phone of an individual who walks within a certain radius of a store determined through use of GPS tracking available on most new phones. For example, say an individual walks within 50 feet of a Starbucks. They would be sent a message urging them to visit the store and possibly offer a coupon to entice them to enter. Public relations practitioners realize the value that web sites offer in establishing and maintaining relationships with the public. For example, company and product information can be posted on the company's site for news reporters researching stories and for current and potential customers seeking information. Political candidates have web sites that provide information about their background and their political experience.