Communication Strategies II Theorya0025537/php/ABWLs.off/FK... · - Customer relationship management (CRM) - Ethical issues of direct marketing 2. Chapter 16 - Other promotional mix

CommunicationStrategies II

Theory

Bernd MaurerRalf Maurer

Robert Rychlewski

1FK International Marketing SS 2007

Table of content1. Chapter 15

- Direct marketing- Database marketing- Customer relationship management (CRM)- Ethical issues of direct marketing

2. Chapter 16- Other promotional mix methods- Sales promotion- Public relations and publicity- Sponsorship- Exhibitions- Product placement- Ethical issues of sales promotion and PR


Chapter 15:Direct marketing

Definition:

„The distribution of products, information and promotional benefits to target consumersthrough interactive communication in a way thatallows response to be measured.“


Methods of direct marketing

• Direct mail• Telemarketing• Mobile marketing• Direct response advertising• Catalogue marketing• Electronic media• Inserts• Door-to-door leafleting


Database marketing

Definition:

„ An interactive approach to marketing that usesindividually addressable marketing media and channels to:

• provide information to a target audience• stimulate demand• stay close to customers


Sources of information

• Company records• Responses to sales promotions• Warranty and guarantee cards• Salesforce records• Organized events• Enquiries• Offering samples


Database marketingCustomer and

prospectinformation

Promotionalinformation

Geodemographicinformation

Productinformation

Transactionalinformation

Marketing

database


Customer relationshipmanagement (CRM)

Definition:

“… is a broad term that covers concepts used by organizations to manage their relationships with customers, including collecting, storing and analyzing customer information.”

Why do companies use CRM?

The main aim is to manage their relationships with customers, including collecting, storing and analyzing customer information.


Steps of CRM

• Analysis and planning• Proposition• Information and technology• People and organization• Process management• Customer management activity• Measuring the effect• Customer experience• Competitors


Media decisions

Any entrepreneur and direct marketer has a large number of media which can be used to reachcustomers and prospects.

Marketing strategy

Identify and understandtarget audience

Campaign objectives

Media decisions Creative decisions

Execute and evaluatecampaign


Used medias in directmarketing

• Direct mail+ specific targeting to named individuals- poor lists give rise to intrusive junk mail

• Telemarketing+ less costly, fast, computer technologies increased efficiency- no visual impact, rejection can be high

• Mobile Marketing+ cost effective, personalized, targeting specific groups- causing consumer annoyance, visually unexciting

• Direct response advertising+ reaches wide audience, in-depth information provided- not all products are suited to direct response advertising

• Catalogue marketing+ shows a wide range of goods, reduces costs- differentiation to ordered goods, catalogue updating is expensive


Ethical issuesin direct marketing

There are potential problems relating to:

• the quantity of poorly targeted direct mail• the timing and intrusive nature of telemarketing

calls• the content of direct mail envelopes• Invasion of privacy


Chapter 16:Other promotional mix methodsShort outline of methods:

• Sales promotionConsumer promotions/Trade promotions

• Public relations and publicityPrestige and reputation, promote products

• SponsorshipGaining publicity, creation of entertainment and promotional opportunities

• Exhibitionsselling objectives to current and potential customersnon-selling objectives to current and potential customers

• Product placementmass-market reach, positive associations to brands, higher credibility


Sales promotionDefinition:„…non personal promotional efforts that are desighned to

have an immediate impact on sales.“

Objective:The basic objective of any sales promotion is to provide extra

value that encourages purchase.

There are two targets:• Consumer pull• Distribution push

Specific sales promotion objectives:• Fast sales boost• Encourage trial• Encourage repeat purchase• Stimulate purchase of larger packs• Gain distribution and shelf space


Major sales promotion types

Consumer promotions

• Coupons• Premiums• Money off

• Bonus packs• Free samples• Prize promotions• Loyalty cards

Trade promotions

• Price discounts• Competitions• Allowances• Free goods

(e.g. on TV the teleshopand the image below)


Evaluating sales promotion

Pre-testing research

• Group discussion• Hall tests• Experimentation

Post-testing research

• Consumer panel data• Retail audit data


Public relations and publicity

Definition:

„…the management of communications and relationships to establish goodwill and mutualunderstanding between an organization and ist public.“

Public relations activities include publicity, corporate advertising, seminars, publications, lobbying and charitable donations.


An organization and its publics

Public

Local communities

Pressure groups

Opinion leaders

General public

Government

Parliament

Civil service

Local authorities

Media

TV

Commercial

Customers

Distribution

Employees

Staff

Trades unions

representatives

Finance

Shareholders

Stockbrokers

Fund managers

Banks

Press

Radio

Suppliers


Public relations

Objectives of public relations:

• Prestige and reputation• Promotion of products• Dealing with issues and opportunities• Goodwill of customers• Goodwill of employees• Overcoming misconceptions• Goodwill of suppliers and distributors• Goodwill of government• Dealing with unfavourable publicity• Attracting and keeping good employees


Publicity

Publicity is a major element of public relations.

Definition:

„…communication about a product or organizationby the placing of news about it in the media without paying for the time or space directly.“


Key tasks of a publicitydepartment

1. Responding to requests from the media

2. Supplying the media with information on events and occurrences relevant to the organization

3. Stimulation the media to carry the informationand viewpoint of the organization


Sponsorship

Definition by Sleight:

„…a business relationship between a provider of funds, resources or services and an individual, event or organization which offers in returnsome rights and association that may be usedfor commercial advantage.“


Sponsorship

Five principal objectives of sponsorship:

1. Gaining publicity2. Creating entertainment opportunities3. Fostering favourable brand and company

associations4. Improving community relations5. Creating promotional opportunities


Exhibitions

Exhibitions are a very unique promotional tool. Only exhibitions bring buyers, sellers and the competitors together in a commercial setting.

Exhibitions objectives:• Create awareness• Develope relationships• Provide product demonstrations• Gather competitive intelligence• Introduce a new product• Make a sale• Maintain/inprove company image


Product placement

Product placement is the deliberate placing of products and/or their logos in movies and television, usually in return for money.

Examples:Audi in the movie „I robot“

or

Manner in the TV-series „Friends“


Product placement

There are different reasons why productplacement is growing:

• Mass-market reach• Positive associations• Credibility• Message repetition• Avoidance of advertising bans• Targeting• Branding and promotional opportunities• Measurement


Product placement

For sure there are miscellaneous risks which canbe associated with product placement.

• Movie / programm failure• Lack of prominence• Audience annoyance• Loss of control


Ethical issues in salespromotion and public relations

There are potential problems relating to:

• The use of trade inducements• The malredemption of coupons• The use of third-party endorsements to publicize

a product• The promotion anti-social behaviour


Thank you for your attention!

Do you have any questions?


Documents

Communication Strategies II Theorya0025537/php/ABWLs.off/FK... · - Customer relationship management (CRM) - Ethical issues of direct marketing 2. Chapter 16 - Other promotional mix