Internet Advertising & Promotional Communication

Class 3

Integrated Marketing Communication (IMC)

Integrated Marketing Communication Definitions Problems & Challenges

Marketing Communication Elements Public Relations Sales Promotions Direct Marketing

Featuring in Class 3…...Featuring in Class 3…...

IMC: Definitions

all of the marketing communication elements should be integrated so as to maximize the overall output, sales or profits? MC elements: advertising, public relations, sales

promotion, personal selling, and direct response or database marketing

use of two or more MC elements? use of multiple media to advertise a brand with an

underlying theme or selling proposition?

IMC: Definitions

Interactive IMC: “integration of three or more MC elements with a common underlying theme or goal in two or more Internet platforms

IMC: Problems & Challenges

Lack of agreed, workable definitions of IMC Implementation Measurement

Marketing Communication Elements

Advertising Public Relations Sales Promotion Direct Marketing Personal Selling

Public RelationsPublic Relations

a marketing and management function that focuses on communications that foster goodwill between a firm and its constituencies

What PR can achieveWhat PR can achieve

Build goodwill or favorable corporate image Promote products or services Facilitate internal communication Function as damage control and fight negative

publicity or manage crisis situations

Traditional PR toolsTraditional PR tools

Press or news release and feature stories Company newsletters Interviews and press conferences Community event sponsorship Publicity

Internet PR: Internet PR: advantages, opportunities, & challengesadvantages, opportunities, & challenges

Cost, time and efforts savings Interactive, real-time communication

efficient internal and external corporate communication, targeting and personalization of messages

frequent, quick, efficient communication via email, discussion forums, chats

Supports for proactive PR and IMC

Internet PR: Internet PR: advantages, opportunities, & challengesadvantages, opportunities, & challenges

Directly measurable effects accountability

Unlimited amount of information opportunity as well as challenge

Quick and easy distribution of information and even false and hazardous rumors about your firm need for constant monitoring

Internet PR toolsInternet PR tools

News release archives & online library (in corporate sites Need for publicizing the feature Integration with email, sales promotion items & banner or link

exchange is a good idea Announcement

Beware of “netiquette” when using discussion forums, newsgroups, email lists

Newsletters IMC opportunities for soliciting subscription

Public appearance Guests participate in a chat or broadcast via streaming media

Event sponsorship May be tied with sales promotion

Internet PR examplesInternet PR examples

http://www.mcgraw-hill.com/corpinfo/resource/index.html

http://www.hilton.com/corporate/index.html

http://www.hp.com

http://www.bankofamerica.com.

http://chat.yahoo.com/c/events/info/2000/03/06/030600manshow.html

http://www.msnbc.com/chat/cover.asp

http://www.broadcast.com/concerts/bluenote/

http://travel.yahoo.com/destinations/promos/exorbis/entrypage.html

http://www.mcdonalds.com/whatsnew/usa/passport/index.html

Note: examples are subject to expiration any time and may no longer be available

Sales PromotionSales Promotion

short-term promotional activities or incentives designed to generate an immediate increase in sales

Traditional sales promotion toolsTraditional sales promotion tools

Consumer sales promotion e.g., coupons/discounts, rebates, refunds, premiums,

sweepstakes, contests, free samples, loyalty program, etc.

Trade promotion e.g., Point-of-Purchase (POP) displays, co-op advertising,

cash or merchandising allowance, slotting fees, discounts, contest, trade shows

What sales promotion can achieveWhat sales promotion can achieve

Cause a rapid increase in sales activity and volume Attract new buyers to trial purchases Defend an established brand against new competition Reward loyal consumers as they continue to use the

product Provide retailers with additional marketing support

Challenges of sales promo

Marketers and retailers can become dependent on sales promotion

Matching competitors’ sales promotion can lead to a sales promotion spiral -- no win situation for all involved

Extensive sales promotion can damage brand image Problems of sales promotion abuse (e.g., fraudulent

coupon redemption, or sweepstakes and contests misrepresentation)

Internet sales promotion tools

Online coupons, sweepstakes, premium to be discussed in lecture

Free samples, loyalty programs, online contests and

games, and others See ZA text

Internet Coupons

A form of discounts or price-offs An electronic, printable form that can be used to

discount the price of items or services offered by a company

What Internet coupons can achieve

Drive traffic to retail stores Motivate to buy more and early Increase favorable response

due to the ability to target by geographic location, interests, taste and previous behavior with other coupons.

Minimize waste in delivery Save cost & time

How to use Internet coupons

Understand the threats of encouraging customers to reject brand loyalty for price consideration

Breaking through coupon clutter is critical Study what kinds are available and effective

online coupon companies can help – e.g., E-centives, CoolSavings, and Val-Pak)

Assess your competitors’ use of coupons Target and customize the offer Create synergy by integrating with other MC efforts

Examples of Internet coupons/price-off        

Pizza hut (www.pizzahut.com) – “build your own coupons”, “find coupons in your area”— can search coupons redeemable in their local area

GAP (www.gap.com) – “get 15% off $75 in stores & online when you join our mailing list”

Can you find a good example of online coupons or discounts in your area? Any case of IMC involving coupons or discounts?

Note: examples are subject to expiration any time and may no longer be available

Online SweepstakesOnline Sweepstakes

a promotion in which prize or prizes are given to the winners who are determined on the basis of chance alone

What online sweepstakes can achieve

Create awareness, excitement and consumer involvement

Enhance brand image, if used properly Gain retail support Build consumer database Produce immediate sales  

How to use online sweepstakes

Understand the challenge of offering the right prize to attract the target

Test to see what works for the target Create synergy by integrating with direct marketing,

PR, or advertising Establish a strong tie between the sweepstakes and

the brand

Examples of online sweepstakes      

McDonald’s (www.mcdonalds.com) – “IT’S Winning Time”

Coca Cola (www.cocacola.com) – “Watch & Win” Can you find an example of online sweepstakes? A

case of IMC involving sweepstakes in your area?

Note: examples are subject to expiration any time and may no longer be available

Premium

an item, other than the product itself, given to purchasers of a product as an incentive to buy

What online premium can achieve

encourage customers to make an immediate purchase

build traffic to the store or the website build a customer database

How to use online premium

Integration with advertising and other MC efforts is effective

Targeting the offer is critical

Examples of online premium      

AT&T (www.att.com) – “GET A GREAT DEAL when you buy online. Get a FREE Nokia 3360 when you order new service online starting at just $19.99 a month”

Levi’s (www.levis.com) – “Try new Type1 jeans on at Levi’s retail store, and get a FREE CD”

Can you find an example of online premium? A case of IMC involving online premium in your area?

Note: examples are subject to expiration any time and may no longer be available

Direct Marketing

“a form of marketing that occurs directly between the marketer and the consumer and that includes activities designed to generate direct sales or any actions short of sales”

Internet direct marketing: advantages, opportunities, and challenges

Cost effectiveness 60% to 65% cheaper than traditional direct mail

marketing Time / convenience

business anywhere, any time. Ease and power of interactivity, profiling, targeting,

customization, and automation Global market coverage Database, relationship marketing potential

What Internet direct marketing can achieve

Sales (a purchase order) Sales leads (an inquiry) Traffic (a visit or test-drive at a place of business

for purchase) A database of customers (completed

registration/subscription/response)

Internet Direct Marketing : Direct Email

Direct marketing can be implemented in different ways -- email, banners, own site

Email is the most frequently used platform for internet direct marketing

More and better creative options are now available Obtaining an accurate, opt-in email list is key

How to use direct email marketing:

Using in-house lists

Appropriate for frequent e-mailers, due to ownership of the list, long-term cost savings & control

May start with current customer list Build the list via registration on one’s site,

subscription to newsletters, email solicitation Offer incentives to increase response Maintain updated list -- cost for upkeep

How to use direct email marketing: Renting lists form brokers

More common approach Numerous list categories available Example of list brokers

Acxiom DirectMedia (www.directmedia.com ) MatchLogic (www.matchlogic.com) NetCreations (www.netcreations.com )

Price rangeing from less than $100 per thousand names to more than $1,000 – the more specific/targeted the list, the higher the price

How to use direct email marketing: Making sure the list to use is opt-in

Opt-in (with permission): everyone in the list has agreed that they want to receive email solicitations

Avoid any list put together by software that surf the web looking for new email addresses

Check the reputation of the list broker Check list broker reference (talk to its clients) Test the list in a small scale emailing first before emailing the

entire list. Read the Zeff and Aronson book for more insights, tips, and

examples concerning the effective use direct email or direct advertising