Chapter Seven Marketing Services Making Your Mark in MarCom. Making Your Mark in MarCom.
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Chapter SevenMarketing Services
Chapter SevenMarketing Services
Making Your Mark in MarCom.
Making Your Mark in MarCom.
Marketing ServicesMarketing Services Most Marketing Services relate to Marketing
Communications “MarCom” for short
Umbrella term for all promotional activities other than advertising.
MarCom services are growing New ways to market brands, and… New sources of career opportunities
Most Marketing Services relate to Marketing Communications
“MarCom” for short Umbrella term for all promotional activities other
than advertising. MarCom services are growing
New ways to market brands, and… New sources of career opportunities
Marketing ServicesMarketing Services Sales Promotion Direct Marketing Public Relations Marketing Research Event Marketing & Sponsorship Promotional Products
Sales Promotion Direct Marketing Public Relations Marketing Research Event Marketing & Sponsorship Promotional Products
Who Performs Marketing Services?
Who Performs Marketing Services?
Client Marketing Department Divisions of mega-agencies
Specialized Agencies Division within “IMC” agency
Specialized Agencies or suppliers
Client Marketing Department Divisions of mega-agencies
Specialized Agencies Division within “IMC” agency
Specialized Agencies or suppliers
Who Supervises Marketing Services?
Who Supervises Marketing Services?
At the Marketer, many options Director of Marketing Brand Management Specialized Manager (Promotion, etc.) MarCom Manager
At Specialized Agencies… Account Managers, Account Executives Project Managers
At the Marketer, many options Director of Marketing Brand Management Specialized Manager (Promotion, etc.) MarCom Manager
At Specialized Agencies… Account Managers, Account Executives Project Managers
The World of Sales Promotion
The World of Sales Promotion
How Big is the World of Sales Promotion? Measured Volume (Fees, etc.) over $100 Billion! It breaks out this way…
How Big is the World of Sales Promotion? Measured Volume (Fees, etc.) over $100 Billion! It breaks out this way…
Advertising 52.7%
Advertising 52.7%Consumer
Promotion 23.4%
Consumer Promotion
23.4%
Trade Promotion
18.4%
Trade Promotion
18.4%
Other5.5%Other5.5%
The World of Sales Promotion
The World of Sales Promotion
It’s actually larger… The biggest categories
Trade discounts Consumer Savings
…are not included! Overall, the Volume
is HUGE!!!
It’s actually larger… The biggest categories
Trade discounts Consumer Savings
…are not included! Overall, the Volume
is HUGE!!!
Advertising 52.7%
Advertising 52.7%Consumer
Promotion 23.4%
Consumer Promotion
23.4%
Trade Promotion
18.4%
Trade Promotion
18.4%
Other5.5%Other5.5%
How Big is the World of Sales Promotion? Measured Volume (Fees, etc.) over $100 Billion! It breaks out this way…
How Big is the World of Sales Promotion? Measured Volume (Fees, etc.) over $100 Billion! It breaks out this way…
Some Top Sales Promotion Agencies Some Top Sales Promotion Agencies
The World of Sales Promotion
The World of Sales Promotion
DraftFCB (Interpublic) EA, Taco Bell, Dow
Epsilon (Alliance Data Systems) P&G, Ford, Pepsico
Leo Burnett/Arc Worldwide (Publicis) McDonald’s, Comcast, CocaCola
Wunderman (WPP) Johnson&Johsnon, Unilever, Ford
Digitas (Publicis) American Express, Kraft, eBay
DraftFCB (Interpublic) EA, Taco Bell, Dow
Epsilon (Alliance Data Systems) P&G, Ford, Pepsico
Leo Burnett/Arc Worldwide (Publicis) McDonald’s, Comcast, CocaCola
Wunderman (WPP) Johnson&Johsnon, Unilever, Ford
Digitas (Publicis) American Express, Kraft, eBay
Two Types of Sales Promotion Trade Promotion (“Push” ) Consumer Promotion (“Pull” )
Both emphasize Short-Term Sales Two Types of Incentives
Less = Savings More = “Added Value”
More Product (Bonus Pack, BOGO*, etc.) A Prize (Sweepstakes) Something else (A Premium, or…)
Two Types of Sales Promotion Trade Promotion (“Push” ) Consumer Promotion (“Pull” )
Both emphasize Short-Term Sales Two Types of Incentives
Less = Savings More = “Added Value”
More Product (Bonus Pack, BOGO*, etc.) A Prize (Sweepstakes) Something else (A Premium, or…)
The World of Sales Promotion
The World of Sales Promotion
Trade PromotionsTrade Promotions Point-of-sale Point-of-sale
Trade PromotionsTrade Promotions
Dealer contests Dealer contests
Point-of-sale Point-of-sale
Merchandising the advertising
Deals and allowances Co-op advertising and then there’s…
Merchandising the advertising
Deals and allowances Co-op advertising and then there’s…
Consumer PromotionsConsumer Promotions Coupons/ FSIs (Free Standing Inserts) Coupons/ FSIs (Free Standing Inserts) Contests, sweepstakes
& games Contests, sweepstakes
& games
Cents-off promotions Cents-off promotions
Premiums Premiums Sampling/ Tastings Sampling/ Tastings Rebates Rebates
Gift with Purchase Gift with Purchase
Consumer Promotions/ Entertainment Brands
Consumer Promotions/ Entertainment Brands
7-Eleven becomes a Kwik-E-Mart Promoting “The Simpsons Movie”
3 weeks prior to release date 7-11 transformed 12 of its convenience stores into Kwik-E-Mart’s, featured in the Simpson’s fictious town.
Sales doubled in the 12 Kwick-E-Mart stores.
7-Eleven becomes a Kwik-E-Mart Promoting “The Simpsons Movie”
3 weeks prior to release date 7-11 transformed 12 of its convenience stores into Kwik-E-Mart’s, featured in the Simpson’s fictious town.
Sales doubled in the 12 Kwick-E-Mart stores.
Simply put, direct marketing occurs when you buy direct from a marketer By returning a coupon By calling an 800# By responding to a mail solicitation By shopping on the Internet By responding to a telemarketer
who called you during dinner
Simply put, direct marketing occurs when you buy direct from a marketer By returning a coupon By calling an 800# By responding to a mail solicitation By shopping on the Internet By responding to a telemarketer
who called you during dinner
The World of Direct Marketing
The World of Direct Marketing
Sales from Direct Marketing Efforts
8.7% of total US GDP 1.3 million direct marketing employees
Sales from Direct Marketing Efforts
8.7% of total US GDP 1.3 million direct marketing employees
The World of Direct Marketing
The World of Direct Marketing
$1.96 trillion! $1.96 trillion! add up to… add up to…
Source: DMA Economic Impact Statement 2003Source: DMA Economic Impact Statement 2003
Sales from Direct Marketing Efforts Sales from Direct Marketing Efforts
The World of Direct Marketing
The World of Direct Marketing
It’s BIG! It’s BIG!
163 billion in expenditures. Estimated (by the DMA) to be 52.1% of all advertising expenditures.
Whatever the exact amount…
163 billion in expenditures. Estimated (by the DMA) to be 52.1% of all advertising expenditures.
Whatever the exact amount…
Source: DMA Economic Impact Statement 2008Source: DMA Economic Impact Statement 2008
Types of Direct Marketing Companies Types of Direct Marketing Companies
The World of Direct Marketing
The World of Direct Marketing
Direct Marketers Examples: American Express, Land’s End
Direct Marketing Agencies Example: DraftFCB (Interpublic)
Support Services Examples: Call Centers, Catalog Printers,
List Management Services, the Post Office
Direct Marketers Examples: American Express, Land’s End
Direct Marketing Agencies Example: DraftFCB (Interpublic)
Support Services Examples: Call Centers, Catalog Printers,
List Management Services, the Post Office
CRM = Customer Relationship Marketing LTV = Lifetime Value
Direct Marketers work to maximize the value of the relationship with their customers, to get the most LTV (Lifetime Value)
Doing all those things is “CRM” Increased valuation of current customers
is a driving force in marketing today
CRM = Customer Relationship Marketing LTV = Lifetime Value
Direct Marketers work to maximize the value of the relationship with their customers, to get the most LTV (Lifetime Value)
Doing all those things is “CRM” Increased valuation of current customers
is a driving force in marketing today
The World of Direct Marketing
The World of Direct Marketing
Some Key Reasons for Direct Marketing’s Growth
Some Key Reasons for Direct Marketing’s Growth
Changing consumer lifestyles Shopping opportunity for “time-poor” consumers
More consumer credit Now it’s easy to buy from a direct marketer
Better “Direct Marketing technology” More and better lists of potential customers Better technology for “massaging the database”
Big Changes in Media More cost-efficient media opportunities The Internet makes direct response easy
Changing consumer lifestyles Shopping opportunity for “time-poor” consumers
More consumer credit Now it’s easy to buy from a direct marketer
Better “Direct Marketing technology” More and better lists of potential customers Better technology for “massaging the database”
Big Changes in Media More cost-efficient media opportunities The Internet makes direct response easy
Consumer Complaints About Direct Marketing
Consumer Complaints About Direct Marketing
Some Current Issues: Annoyance
List removal option of DMA Privacy issues
Who owns your information? Data technology raises new concerns
Unscrupulous practices Example: Negative option
Major Result – The “Do Not Call” List.
Some Current Issues: Annoyance
List removal option of DMA Privacy issues
Who owns your information? Data technology raises new concerns
Unscrupulous practices Example: Negative option
Major Result – The “Do Not Call” List.
The Key to Success inDirect Marketing
The Key to Success inDirect Marketing List Quality is Key List Quality is Key Internal lists
Compiled by organization itself
Internal lists Compiled by
organization itself External lists
Purchased from List brokers List compilers
External lists Purchased from
List brokers List compilers
Improving PerformanceImproving Performance Improve the List Improve the Offer/Incentive Improve the Messaging “List Enhancement”
Add more information about households on current list Cleaning the list: the “merge-purge” function when
combining different lists
Continual testing against previous success Improve results and knowledge
Improve the List Improve the Offer/Incentive Improve the Messaging “List Enhancement”
Add more information about households on current list Cleaning the list: the “merge-purge” function when
combining different lists
Continual testing against previous success Improve results and knowledge
Marketing PR (MPR) Supports marketing efforts
Marketing PR (MPR) Supports marketing efforts
The World of Public Relations
The World of Public Relations
Corporate PR (CPR) Deals with broader range of
issues, from investor relations to employee communications
Corporate PR (CPR) Deals with broader range of
issues, from investor relations to employee communications
Marketing PR: Product PublicityMarketing PR:
Product Publicity The Basics: The Basics:
The Objective - obtaining free time or space in the media that represents favorable mention
The Objective - obtaining free time or space in the media that represents favorable mention
Marketing PR: Product PublicityMarketing PR:
Product Publicity The Basics: The Basics:
The Objective - obtaining free time or space in the media that represents favorable mention
The Strategy - product publicity, like all PR, must be newsworthy
The Objective - obtaining free time or space in the media that represents favorable mention
The Strategy - product publicity, like all PR, must be newsworthy
The Benefit - the value of “implied” or “third-party” endorsement by the media
The Benefit - the value of “implied” or “third-party” endorsement by the media
Product Publicity Activities
Product Publicity Activities
Press Releases (immediate news) Technical and Case History stories Feature stories Press Tours
Press to Company Company to Press
Press Releases (immediate news) Technical and Case History stories Feature stories Press Tours
Press to Company Company to Press
Corporate PR Activities(Non-Marketing Related PR)Corporate PR Activities(Non-Marketing Related PR)
Investor Relations Employee Communications Government Relations (lobbying) Crisis Management (oil spills, etc.) Community Relations Advocacy Advertising (corporate
point of view on public issues)
Investor Relations Employee Communications Government Relations (lobbying) Crisis Management (oil spills, etc.) Community Relations Advocacy Advertising (corporate
point of view on public issues)
PR Agencies now part of mega-agency groups PR Agencies now part of mega-agency groups Ad Organizations by PR Revenue (2012) Ad Organizations by PR Revenue (2012)
PR Agency OwnershipPR Agency Ownership
WPP $1.49 billion WPP $1.49 billion Omnicom $1.29 billion Interpublic $1.21 billion Publicis $0.53 billion Havas $0.22 billion
Mergers Continue Y&R now included in WPP totals Omnicom and Publicis combine for top spot at $1.82 billion.
Omnicom $1.29 billion Interpublic $1.21 billion Publicis $0.53 billion Havas $0.22 billion
Mergers Continue Y&R now included in WPP totals Omnicom and Publicis combine for top spot at $1.82 billion.
Top Ten PR Agencies in 2012 2012 Net Fees Top Ten PR Agencies in 2012 2012 Net Fees
PR Agency OwnershipPR Agency Ownership
PR Agencies now part of mega-agency groups PR Agencies now part of mega-agency groups
Edelman $655,900,289 Edelman $655,900,289 APCO Worldwide $121,800,000 Waggener Edstrom Worldwide $118,426,000 W2O Group $62,005,000 Ruder Finn $56,148,000 Text 100 Global PR $50,930,028 MWW Group
$42,875,000 ICR $36,554,283 DKC $32,896,560 Finn Partners
$32,293,000O’Dwyer’s
Magazine, May 2013
APCO Worldwide $121,800,000 Waggener Edstrom Worldwide $118,426,000 W2O Group $62,005,000 Ruder Finn $56,148,000 Text 100 Global PR $50,930,028 MWW Group
$42,875,000 ICR $36,554,283 DKC $32,896,560 Finn Partners
$32,293,000O’Dwyer’s
Magazine, May 2013
Look What Happens When It All Works
Together!
Look What Happens When It All Works
Together!
Integration &Integration &Amplification!
Integration &Integration &Amplification!
The Business of Evaluation FEEDBACK is critical nourishment for
marketers
The Product is FACT, not opinion Accurate information gathering is also critical. Research reputations depend on the dependability
of their data
The Business of Evaluation FEEDBACK is critical nourishment for
marketers
The Product is FACT, not opinion Accurate information gathering is also critical. Research reputations depend on the dependability
of their data
The World of Marketing Research
The World of Marketing Research
Two types of entities provide this critical marketing information: Internal Marketing Research Departments
At the marketer At a full-service agency
Outside Marketing Research Firms Ongoing services (Nielsen) Projects (Surveys, focus groups, etc.)
Two types of entities provide this critical marketing information: Internal Marketing Research Departments
At the marketer At a full-service agency
Outside Marketing Research Firms Ongoing services (Nielsen) Projects (Surveys, focus groups, etc.)
The World of Marketing Research
The World of Marketing Research
Role of Internal Marketing Research Department
Role of Internal Marketing Research Department
Analyze company sales data Provide short-term and long-term sales and
industry projections Determine what primary research studies
need to be carried out Select and hire outside research firms
to conduct surveys and provide other information
Analyze company sales data Provide short-term and long-term sales and
industry projections Determine what primary research studies
need to be carried out Select and hire outside research firms
to conduct surveys and provide other information
Types of Outside Marketing Research Firms
Types of Outside Marketing Research Firms
Limited-service Research Suppliers These supply a specific type of data, often to
all major marketers. Syndicated Research (Nielsen TV ratings) Standardized Research (Gallup & Robinson
ad recall pre-testing studies) Full-service Research Suppliers
Focus Groups and Surveys “Starting from scratch” research projects
Limited-service Research Suppliers These supply a specific type of data, often to
all major marketers. Syndicated Research (Nielsen TV ratings) Standardized Research (Gallup & Robinson
ad recall pre-testing studies) Full-service Research Suppliers
Focus Groups and Surveys “Starting from scratch” research projects
How big is the World of Event Marketing? How big is the World of Event Marketing?
The World of Event Marketing
The World of Event Marketing
Sports sponsorship $13.01 billion Sports sponsorship $13.01 billion
How big is the World of Event Marketing? How big is the World of Event Marketing?
The World of Event Marketing
The World of Event Marketing
Entertainment, tours, attractions $1.93 billion Entertainment, tours, attractions $1.93 billion
Sports sponsorship $13.01 billion Sports sponsorship $13.01 billion
How big is the World of Event Marketing? How big is the World of Event Marketing?
The World of Event Marketing
The World of Event Marketing
Causes $1.70 billion Causes $1.70 billion Festivals, fairs and annual events $825 million Festivals, fairs and annual events $825 million
Entertainment, tours, attractions $1.93 billion Entertainment, tours, attractions $1.93 billion
Sports sponsorship $13.01 billion Sports sponsorship $13.01 billion
How big is the World of Event Marketing? How big is the World of Event Marketing?
The World of Event Marketing
The World of Event Marketing
$18.9 billion!
Causes $1.70 billion Causes $1.70 billion
Entertainment, tours, attractions $1.93 billion Entertainment, tours, attractions $1.93 billion
That all adds up to... That all adds up to...
Sports sponsorship $13.01 billion Sports sponsorship $13.01 billion
The Arts $891 million The Arts $891 million Festivals, fairs and annual events $825 million Associations and Memberships $550 million
2012 Sponsorship Spending, Sponsorship.com
The World of Event Marketing
The World of Event Marketing
Provides opportunities for: Sampling of product Widespread publicity in media Unique connection w. target market
Cause marketing: A special type of event marketing Example: Children’s Miracle Network
Provides opportunities for: Sampling of product Widespread publicity in media Unique connection w. target market
Cause marketing: A special type of event marketing Example: Children’s Miracle Network
The World of Event Marketing
The World of Event Marketing
A $16 billion business Company Brand or Logo
Pens, hats, key rings, etc “Business Gifts”
Higher priced items Many uses:
Sales lead generation, trade shows, awareness building, employee morale, etc.
A $16 billion business Company Brand or Logo
Pens, hats, key rings, etc “Business Gifts”
Higher priced items Many uses:
Sales lead generation, trade shows, awareness building, employee morale, etc.
The World of Promotional Products
The World of Promotional Products
Who isThe Person
Who Helps Pull All of This Together?
Who isThe Person
Who Helps Pull All of This Together?
The MarCom Manager
The MarCom Manager
Relatively new position - result of “IMC.” Title/function more common on West Coast
Evolving as marketers’ needs evolve
Need to understand all forms of “IMC” “Jack-of-all-trades” promotional skills
Emphasis will vary by industry High-tech = PR emphasis
Packaged goods = Sales promotion emphasis
Beverages = event and sports marketing emphasis
Relatively new position - result of “IMC.” Title/function more common on West Coast
Evolving as marketers’ needs evolve
Need to understand all forms of “IMC” “Jack-of-all-trades” promotional skills
Emphasis will vary by industry High-tech = PR emphasis
Packaged goods = Sales promotion emphasis
Beverages = event and sports marketing emphasis
Increased pressure for short-term revenue Dynamic growth in most areas
Sales Promotion - up 20% Direct Marketing - up 15%
Increased focus on existing customer “LTV” More loyalty programs More targeted programs More Customer Relationship Management
Increased pressure for short-term revenue Dynamic growth in most areas
Sales Promotion - up 20% Direct Marketing - up 15%
Increased focus on existing customer “LTV” More loyalty programs More targeted programs More Customer Relationship Management
The Future of Marketing Services
The Future of Marketing Services
New Technologies Interactive and Information Technology The Internet affects everybody! Virtually everyone will practice some form of direct or highly
targeted marketing with Internet response. New Companies
Start-ups - need IMC from ground up Start-ups will be internal as well as external
Example: Tadcast, a new startup company Create product placement for online videos Sponsors contest for best video about (Coca-Cola’s) new Honest Tea -
get the most hits on YouTube. MediaPost News, Jan. 15, 2009
New Technologies Interactive and Information Technology The Internet affects everybody! Virtually everyone will practice some form of direct or highly
targeted marketing with Internet response. New Companies
Start-ups - need IMC from ground up Start-ups will be internal as well as external
Example: Tadcast, a new startup company Create product placement for online videos Sponsors contest for best video about (Coca-Cola’s) new Honest Tea -
get the most hits on YouTube. MediaPost News, Jan. 15, 2009
The Future of Marketing Services
The Future of Marketing Services
Economics of Scale Large Mega-agencies will have more resources Large marketers will want more programs
Competition All marketing services activity will increase Competition between services will also increase
More Diversity Not just in population, but marketing approach Managing all of this will be a huge challenge!
Economics of Scale Large Mega-agencies will have more resources Large marketers will want more programs
Competition All marketing services activity will increase Competition between services will also increase
More Diversity Not just in population, but marketing approach Managing all of this will be a huge challenge!
The Future of Marketing Services
The Future of Marketing Services
In Conclusion…In Conclusion…
Can Make Your Mark in MarCom.
Can Make Your Mark in MarCom.
YouYou
Questions & DiscussionQuestions & Discussion
Sales Promotion Direct Marketing Public Relations Marketing Research Event Marketing Promotional Products
Sales Promotion Direct Marketing Public Relations Marketing Research Event Marketing Promotional Products
Independent companies that buy media time and space for advertisers
Originally, an alternative to the media department of a full-service ad agency
Evolved as media choices proliferated and media buying became more complicated
Now mega-agencies have “unbundled” their media departments to create competing media buying services
Independent companies that buy media time and space for advertisers
Originally, an alternative to the media department of a full-service ad agency
Evolved as media choices proliferated and media buying became more complicated
Now mega-agencies have “unbundled” their media departments to create competing media buying services
The World of Media Buying Services
The World of Media Buying Services
The Pioneer: Dennis Holt builds Western into #1 The Pioneer: Dennis Holt builds Western into #1
The World of Media Buying Services
The World of Media Buying Services
Bought by Interpublic Merged with Initiative Becomes model for all agencies
Bought by Interpublic Merged with Initiative Becomes model for all agencies
The World of Media Agencies
The World of Media Agencies
WPP combines Ogilvy and JWT Media Departments to form MindShare
Leo Burnett turns their Media Department into StarCom
Unbundling continues…
WPP combines Ogilvy and JWT Media Departments to form MindShare
Leo Burnett turns their Media Department into StarCom
Unbundling continues…
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