Comms2

Integrated Marketing Integrated Marketing Communications 2Communications 2

Personal Selling & Personal Selling &

Direct Marketing Direct Marketing

Personal SellingPersonal Selling

Salespeople …… repsSalespeople …… repsAccount executivesAccount executivesSales consultants …..engineersSales consultants …..engineersAgentsAgentsDistrict managersDistrict managers

from order takers to order gettersfrom order takers to order getters some firms have no sales reps & some firms have no sales reps &

work only thru intermediarieswork only thru intermediaries involves 2-way comms: face2face, involves 2-way comms: face2face,

phone, video conferencing. Etcphone, video conferencing. Etc learn about customer problems, learn about customer problems,

needs, negotiate terms of saleneeds, negotiate terms of sale well-trained, maintain long term well-trained, maintain long term

relationshipsrelationships they represent the firm to customersthey represent the firm to customers

Stereotype: loners, “traveling” Stereotype: loners, “traveling” “their” territory, pushing goods “their” territory, pushing goods on warm and cold call buyerson warm and cold call buyers

Versus the “professional” Versus the “professional” selling a 747, a new database selling a 747, a new database

server, systems consultancyserver, systems consultancy

Can be done by outside or inside Can be done by outside or inside sales people, team selling & sales people, team selling & even telemarketers & www-even telemarketers & www-based sales forcebased sales force

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Sales Management involves …Sales Management involves …Organising the sales force

•Sales force size

•Location

•field vs call centre

Managing the sales force•setting objectives

IMCCoordination

IMCCoordination

Training the sales force: know the products & promotions, customer & competitor characteristics, needs, buying motives, procedures, active vs potential accounts. WWW-based training

Cisco Field E-Learning Connection – a global learning portal. Audio, video, live classes, text & other content e.g. mp3, e-mentors

Prospecting & qualifying• Scouting, referrals, warm/cold leads,

suppliers, dealers. Identify good/badPre-approach research• Learn about customer & buyer’s needsThe Approach• meet, greet, rapport, appearance,

opening lines. Build good will. Displays, samples, literature

Presentation & demonstration• Solutions not razzle-dazzle. Empathy,

listening, honestly, dependability, thoroughness, follow-thru.

Handling objectionsClosingFollow-up

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Direct Marketing TrendsDirect Marketing Trends

mass market vs trend for narrowly targeted or 1-mass market vs trend for narrowly targeted or 1-to-1to-1

direct distribution (no intermediaries) – target direct distribution (no intermediaries) – target individuals for immediate, measurable responseindividuals for immediate, measurable response

direct marketing direct marketing as a “supplement” as a “supplement” Lexus uses mass media advertising & dealer network Lexus uses mass media advertising & dealer network

but now adds CDs, emailing, www pagesbut now adds CDs, emailing, www pages Staples - bricks & mortar but sell also thru www-siteStaples - bricks & mortar but sell also thru www-site

Direct marketing Direct marketing as the as the onlyonly approach approach Dell?, Easyjet, RyanAir , Amazon, Cisco, IBM, eBayDell?, Easyjet, RyanAir , Amazon, Cisco, IBM, eBay

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Direct Marketing Growth: Benefits etcDirect Marketing Growth: Benefits etc

BuyersBuyers• convenient, easy-to-use, privateconvenient, easy-to-use, private• comfort, browsing & access, 24/7, globalcomfort, browsing & access, 24/7, global• Comparison info on companies, products, pricesComparison info on companies, products, prices• interactive & immediate – phone, www site, wish lists. In-interactive & immediate – phone, www site, wish lists. In-

stock, order, delivery trackingstock, order, delivery trackingSellersSellers• build customer relationships thru databasesbuild customer relationships thru databases• access to buyers not reachable thru other channelsaccess to buyers not reachable thru other channels• Personalised, timed communicationPersonalised, timed communication• low-cost, efficient, fastlow-cost, efficient, fast• rapid B2B growth. Low cost per contactrapid B2B growth. Low cost per contact• Sales people in “call-centre” modeSales people in “call-centre” mode

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Customer Databases & Direct MarketingCustomer Databases & Direct Marketing

Customer databaseCustomer database organized, comprehensive data sets on individual organized, comprehensive data sets on individual customers/prospects, incl. geographic, customers/prospects, incl. geographic, demographic, psychographic & behavioural datademographic, psychographic & behavioural data

UsesUses• analyse/track good, bad & potential customersanalyse/track good, bad & potential customers• Cold call to warm call --- generate sales leadsCold call to warm call --- generate sales leads• learn about customerslearn about customers• develop strong long-term relationshipsdevelop strong long-term relationships

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Database marketing & data miningDatabase marketing & data mining

addressable marketing media & channels (mail, eMail, addressable marketing media & channels (mail, eMail, & sales force) to:& sales force) to:inform target audienceinform target audiencestimulate demand stimulate demand stay close: database of customer, prospects, stay close: database of customer, prospects, communications & transactional data. communications & transactional data.

analyse needs & lifestyle dataanalyse needs & lifestyle datacustomers, contact names & business activitiescustomers, contact names & business activitiestransactions – orders, returns, payments, frequency, value, hitstransactions – orders, returns, payments, frequency, value, hitstheir needs, leads, inventories, projects ( e.g. Emirates – aircraft, their needs, leads, inventories, projects ( e.g. Emirates – aircraft, ages, engines, routes, fuel efficiencies etc)ages, engines, routes, fuel efficiencies etc)timely inquiries & swift responses to offerstimely inquiries & swift responses to offers

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Collect data from various sourcesCollect data from various sources

company & sales force recordscompany & sales force records

responses to sales promotionsresponses to sales promotions

application forms e.g. store loyalty cardsapplication forms e.g. store loyalty cards

complaintscomplaints

organised events e.g. exhibitions, fashion organised events e.g. exhibitions, fashion shows, wine tastingsshows, wine tastings

use of warranty & guarantee registrationsuse of warranty & guarantee registrations

samples requiring customers to give name, samples requiring customers to give name, address, phone number etc.address, phone number etc.

enquiriesenquiries

sharing data with other companiessharing data with other companies

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mini database schemamini database schema

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Outsourcing to DB specialistsOutsourcing to DB specialists

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Direct Marketing ApplicationsDirect Marketing Applications direct maildirect mail

Selective mail list: letters, brochures, ads, samples, music meSelective mail list: letters, brochures, ads, samples, music me High selectivity, measure results, cost/1000 higher but to better High selectivity, measure results, cost/1000 higher but to better

prospectsprospects Email, sms, auto-voice mail vs “snail mail”Email, sms, auto-voice mail vs “snail mail”

telephone marketingtelephone marketing outbound, inbound toll-free, junk callsoutbound, inbound toll-free, junk calls

““Avon calling“ catalogue marketingAvon calling“ catalogue marketing + WWW orders + WWW orders cost of printing Tesco, Next, M&S, Argoscost of printing Tesco, Next, M&S, Argos

direct response TVdirect response TV advertising – selling channels advertising – selling channels KiosksKiosks E-mediaE-media (pop-up ads, email, interactive TV) (pop-up ads, email, interactive TV) insertsinserts (leaflets in magazines) (leaflets in magazines) door-to-door leafletingdoor-to-door leafleting

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Online Marketing DomainsOnline Marketing Domains

Business to consumerBusiness to consumer (B2C)(B2C)

selling online to selling online to finalfinal consumers consumers

Business to businessBusiness to business (B2B)(B2B)

selling & providing information online to selling & providing information online to businesses. building customer businesses. building customer relationshipsrelationships

Consumer to consumer (C2C)Consumer to consumer (C2C)

www communication between parties over products, services, interestswww communication between parties over products, services, interests

Blogs: Blogs: fresh, original, inexpensive way to reach fragmented fresh, original, inexpensive way to reach fragmented audiences. Not for marketers to control? audiences. Not for marketers to control?

ViralViral

Consumer to businessConsumer to business (C2B) consumers communicate with (C2B) consumers communicate with companies to send suggestions & questions via company www-sitescompanies to send suggestions & questions via company www-sites

Consumer to consumer (C2C)Consumer to consumer (C2C)

www communication between parties over products, services, interestswww communication between parties over products, services, interests

Blogs: Blogs: fresh, original, inexpensive way to reach fragmented fresh, original, inexpensive way to reach fragmented audiences. Not for marketers to control? audiences. Not for marketers to control?

ViralViral

Consumer to businessConsumer to business (C2B) consumers communicate with (C2B) consumers communicate with companies to send suggestions & questions via company www-sitescompanies to send suggestions & questions via company www-sites

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Direct Mail MarketingDirect Mail Marketing

a mailed offer, menu, announcement, reminder or other a mailed offer, menu, announcement, reminder or other to someone at an addressto someone at an address

• personalized or impersonal mailshot/circularpersonalized or impersonal mailshot/circular• Danger of JUNK MAILDanger of JUNK MAIL• easy-to-measure results? Compare costs & results with easy-to-measure results? Compare costs & results with

mass mediamass media• local e.g. taxis, takeawayslocal e.g. taxis, takeaways• national & international …… hotels, HMV, JCB, Gillette, national & international …… hotels, HMV, JCB, Gillette,

HMG, NHSHMG, NHS

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Catalogues & Direct MarketingCatalogues & Direct Marketing

Web-based catalogsWeb-based catalogs• ““real-time” merchandisingreal-time” merchandising• data in the same databasedata in the same database• Stock & buying transactionsStock & buying transactions• flag & archive merchandise flag & archive merchandise

for inclusionfor inclusion• lower cost than “print”lower cost than “print”• interactive contentinteractive content• promotional featurespromotional features• synchronization for new cataloguesynchronization for new catalogue

printed + Web-based catalogs• sent to home, pick up from store• printing & distribution costs• renewals

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Telephone Direct Marketing – benefits & problemsTelephone Direct Marketing – benefits & problems

tele-sales to B2C & B2Btele-sales to B2C & B2Bconvenience for buyers?convenience for buyers?more product service & information + B2C more product service & information + B2C enhancements to product & serviceenhancements to product & serviceinbound tele-marketing: toll-free to receive orders from TV & print ads, direct mail & catalogs

The “down-side” …. InvolvesThe “down-side” …. Involves

call-centresauto-callers & problems with unsolicited callsDo-Not-Call registryDo-Not-Call registry

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DRTV & Kiosk Direct MarketingDRTV & Kiosk Direct Marketing

Direct-response TV (DRTV) Direct-response TV (DRTV) marketingmarketing

60-120-sec adverts & demos60-120-sec adverts & demos toll-free number or WWW to buytoll-free number or WWW to buy info-mercials : home shopping info-mercials : home shopping

channelschannels consider sales-cost ratiosconsider sales-cost ratios track resultstrack results

Kiosk marketingKiosk marketing placing information & placing information & ordering machines in stores, airports, trade ordering machines in stores, airports, trade shows & other locationsshows & other locations

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Online Advertising & PromotionsOnline Advertising & Promotions

WWW-site banner ads WWW-site banner ads • interstitials: appear between screen changesinterstitials: appear between screen changes• pop-upspop-ups• rich media with animation, video, sound & interactivityrich media with animation, video, sound & interactivity• banner swapping - external partners help sell banner swapping - external partners help sell

complimentary products & servicescomplimentary products & services• aim to stimulate curiosity among non-related trafficaim to stimulate curiosity among non-related traffic• problems with pop-ups as Spywareproblems with pop-ups as Spyware

Search-related adsSearch-related ads• promo links on search engine results: Google, Yahoo! promo links on search engine results: Google, Yahoo!

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Other Online PromotionsOther Online Promotions

Content sponsorshipsContent sponsorships provide companies with name exposure thru provide companies with name exposure thru sponsorship of special content such as news or financial sponsorship of special content such as news or financial informationinformation

Alliances & affiliate relationshipsAlliances & affiliate relationshipsonline companies promote each otheronline companies promote each other

Buzz/Viral marketingBuzz/Viral marketing WWW word-of-mouth. Involves e.g. wwwsite + eMail or WWW word-of-mouth. Involves e.g. wwwsite + eMail or SMS + marketing artifacts giving information, jokes, SMS + marketing artifacts giving information, jokes, games, mp3s, videos that pass friend-friendgames, mp3s, videos that pass friend-friendHow? Identify & targetHow? Identify & target trendsetters who adopt ideas early. Brand awareness is then trendsetters who adopt ideas early. Brand awareness is then

passed to others (Mimics)passed to others (Mimics)1818

Vouchers/CouponingVouchers/Couponing

discounts, special deals or “savings” thru print or discounts, special deals or “savings” thru print or e-meanse-means

generates high & rapid return, avoid repeating generates high & rapid return, avoid repeating same coupon over & over.same coupon over & over.

make the offer intriguingmake the offer intriguingextensive use by restaurantsextensive use by restaurants

voucher for off-peak days/timesvoucher for off-peak days/times repeat customersrepeat customers

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Marketing & Social NetworkingMarketing & Social Networking

Via WWW communities - congregate & exchange common interests. Via WWW communities - congregate & exchange common interests. Forums – user-contributed content - usually unfiltered, questions & Forums – user-contributed content - usually unfiltered, questions & concerns organised by topic, email to all ?concerns organised by topic, email to all ?

iVillage.comiVillage.comMyFamily.comMyFamily.comFriends Reunited – email & new additionsFriends Reunited – email & new additionsFacebook, mySpace, YouTube – photos, videos, contacts, advertisingFacebook, mySpace, YouTube – photos, videos, contacts, advertisingBlogs - easy to create, maintain & change, search engine friendlyBlogs - easy to create, maintain & change, search engine friendly

Big issues of trust & societal monitoring esp. re-intrusion & “grooming Big issues of trust & societal monitoring esp. re-intrusion & “grooming of children/young people”of children/young people”

2020

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Improving Site Effectiveness Improving Site Effectiveness

enticing appropriate enticing appropriate visitor behavior visitor behavior

establish emotional establish emotional linkslinks

build relationships build relationships increasing per-increasing per-

customer purchases customer purchases after sale marketing after sale marketing

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Convert visitors to customers Convert visitors to customers thruthru

promotions , special offers, promotions , special offers, coupons coupons

complimentary products complimentary products

customer recommendations customer recommendations

opt-in information feeds opt-in information feeds

Conversion RatesConversion Rates

What % of WWW site visitors What % of WWW site visitors completecomplete a desired a desired action e.g.action e.g.complete a formcomplete a formclicks beyond home pageclicks beyond home pageppurchasesurchasesregisterregistersubscribe to newslettersubscribe to newsletterdownload samplesdownload samplesmake sales enquiry etcmake sales enquiry etc

high conversion depends onhigh conversion depends on visitor interest level visitor interest level attractiveness of the offerattractiveness of the offer ease of the processease of the process

(“Using Conversion Rates to Measure Web Site Effectiveness and Improve ROI”http://www.websiteprofitdoctor.com/MC_BP_articles.asp?article=03_11_03_01.txt)

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Conversion Rates Conversion Rates

many myths & fallaciesmany myths & fallacies

“…“…average conversion average conversion rates are in the 3% to rates are in the 3% to 5% range; below 2% is 5% range; below 2% is considered poor; 10% considered poor; 10% & above is awesome.”& above is awesome.”

(http://news.com.com/2010-1071-281288.html)

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Customer Acquisition

FirstImpression Merchandising and Selection Checkout Process

TargetInappropriate

Audience

UnclearMarketingMessage

Slow PageLoad

Unengaging“Look & Feel”

Clumsy SiteNavigation

IneffectivePresentation

No Accessto Real-Time

Help

Ineffective Tools toAssist Selection

InadequateSelection

UncompetitivePrice

ExcessiveShipping Costs

Long DeliveryTimes Credit Card

ValidationError

OrderConversionRate = 1.9%

100%

Percentof SiteVisitors

Source: The Boston Consulting Group

Factors influencing Conversion RatesFactors influencing Conversion Rates

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So … designers of user-interfaces …. centre So … designers of user-interfaces …. centre on the user experienceon the user experience

experience – familiar experience – familiar needs & mental models of needs & mental models of customercustomer

customer expectationscustomer expectations ease & comfortease & comfort

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Online Marketing: Driving Traffic, Conversion & SalesAdapted from www.dbmarketing.com/.../Updike-Hughes%20Speech%20May%206%202009.ppt

Get the book from Amazon.com or Borders.com 2727

Transaction & Triggered e-mailsTransaction & Triggered e-mails

Transactional & triggered e-Transactional & triggered e-mailsmailsthe most powerful e-mails sent to the most powerful e-mails sent to catalog customers. catalog customers. open rates of 70-90% compared to open rates of 70-90% compared to promotional e-mail’s open rates promotional e-mail’s open rates (usually < 20%)(usually < 20%)

For success ?For success ?emulate a conversation between emulate a conversation between client & customer ?client & customer ?message above the fold (visible message above the fold (visible without scrolling – higher click thru.)without scrolling – higher click thru.)cross sales ”below the fold” ???cross sales ”below the fold” ???

Types of triggerTypes of trigger welcomeswelcomes abandoned Shopping abandoned Shopping

CartCart product Ratings & product Ratings &

ReviewReview first-time buyerfirst-time buyer birthday or anniversarybirthday or anniversary direct mail supportdirect mail support ““We Missed You”We Missed You” surveys & pollssurveys & polls

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1,700 outlets1,700 outlets created a birthday club “FREE Ice Cream on created a birthday club “FREE Ice Cream on

Your Birthday!” . Your Birthday!” . 2,000,000 signed up for e-mails in 2-years 2,000,000 signed up for e-mails in 2-years Birthday emails have open rates 62.5% higher Birthday emails have open rates 62.5% higher

than other emails. Click thrus are 350% higher . than other emails. Click thrus are 350% higher .

Franchisee survey: Franchisee survey:

““Overwhelmingly positive response… drives Overwhelmingly positive response… drives people into the stores… people don’t come in people into the stores… people don’t come in by themselves.”by themselves.”

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Transaction emails – v. powerfulTransaction emails – v. powerful

Transaction e-mails (“Your order was shipped Transaction e-mails (“Your order was shipped today”) – like triggers -- have open rates of more today”) – like triggers -- have open rates of more than 60%than 60%

ideal for promoting additional sales – customers ideal for promoting additional sales – customers readread them. them.

many companies do not take advantage of this.many companies do not take advantage of this.

their transactions are in text, not HTML & often say their transactions are in text, not HTML & often say ““Do not reply to this e-mailDo not reply to this e-mail!”!”

Quel dommage !!!Quel dommage !!!

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Welcome Trigger EmailWelcome Trigger Email

present the new prospect with a solid brand message

Not overly promotional

Include a call to action

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RemindersReminders

E-mail DesignE-mail DesignE-mail DesignE-mail Design

Postcard designPostcard designPostcard designPostcard design

EmailEmail

11% 11% increaseincrease in in sales over sales over postcard only.postcard only.

Increased number Increased number orders by 10%orders by 10%

Promo cost +3%Promo cost +3%

Result: Increased Result: Increased ContributionContribution

EmailEmail

11% 11% increaseincrease in in sales over sales over postcard only.postcard only.

Increased number Increased number orders by 10%orders by 10%

Promo cost +3%Promo cost +3%

Result: Increased Result: Increased ContributionContribution

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Missing You EmailMissing You Email

Be specific Ask them to come

back Consistent brand

message

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Abandon Cart E-mailAbandon Cart E-mail

Be specific Incentivise with a

reason to move to the check out

consistent brand message + stronger promotional content

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Poor Transactional E-mailPoor Transactional E-mail

Dear Valued Customer, Thank you for placing your order with BillBracket.com. We are currently

processing order 64854019. In-stock item(s) wi ll arrive within 7- 10 days

Please add one business day for orders placed after 3:00 p.m. Pacific time

and for gift- wrapped or inseamed items Monogrammed Items: If you ordered an embroidered item, please add one

business day to your deliv ery timeframe

For engraved items, please allow an additional eight to nine days For more information, click here.

The status of your items is listed below: Item name Qty. Size Color Status

Carpenter Jeans, Regular 1 34/30 Med. In Stock OES Cas ual Chinos Nano- Tex®-- Regular 1 34 Khaki Avail. 12/07/07

If you haven't already, sign up today for a personal Bill Bracket Login Account and you can track this order, plus all future orders!] (Please note: it may take a

day for order status to become available.) We look forward to your next visit,

Customer Service, Bill Bracket, Inc. BillBracket.com

Check out our new arrivals and find great savings at BillBracket.com.

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Microsoft exampleMicrosoft example

make a note of this easy-to- remember number

So you can enter it here!

Try reading this easy number over the phone !

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Keeping subscribers - adviceKeeping subscribers - advice

You have them, how do you keep them – & keep them You have them, how do you keep them – & keep them opening your e-mails? opening your e-mails?

Make each e-mail Make each e-mail relevant relevant (to their interests) & an (to their interests) & an adventure adventure (by making it very interactive). (by making it very interactive).

include surveys, opinion polls, contests, humor -- why not include surveys, opinion polls, contests, humor -- why not make your e-mails fun to read?make your e-mails fun to read?

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Guerilla & Viral MarketingGuerilla & Viral Marketing

Go to next Powerpoint set Go to next Powerpoint set see uLinksee uLink

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Sample examination questionSample examination question

Evaluate the pros and cons of email and ”trigger” Evaluate the pros and cons of email and ”trigger” marketing. Discuss opportunities and problems they marketing. Discuss opportunities and problems they present for ONE of the businesses or business sectors:present for ONE of the businesses or business sectors:

Gillette (you may choose a specific product group within Gillette (you may choose a specific product group within this company)this company)the earth-moving equipment sector such as JCB, the earth-moving equipment sector such as JCB, Caterpillar and KomatsuCaterpillar and Komatsuthe hotel sector such as: Hilton, Accor, Travelodge, the hotel sector such as: Hilton, Accor, Travelodge, TownhouseTownhouseHMVHMV

Offer conclusions on design approaches that may Offer conclusions on design approaches that may contribute to success in driving traffic, conversion & sales contribute to success in driving traffic, conversion & sales in the business or sector you selected.in the business or sector you selected.

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Sample examination questionSample examination question

Explain the key facets of guerrilla and viral marketing. Explain the key facets of guerrilla and viral marketing. Discuss the opportunities and problems they present for Discuss the opportunities and problems they present for ONE of the businesses or business sectors:ONE of the businesses or business sectors:

Gillette (or a product group within it)Gillette (or a product group within it)the earth-moving equipment sector such as JCB, the earth-moving equipment sector such as JCB, Caterpillar and KomatsuCaterpillar and KomatsuThe hotel sector such as: Hilton, Accor, Travelodge, The hotel sector such as: Hilton, Accor, Travelodge, TownhouseTownhouseHMVHMV

What business clients in other sectors may have more What business clients in other sectors may have more success with guerrilla and viral marketing than the success with guerrilla and viral marketing than the business or sector you selected and why? business or sector you selected and why?

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