Internet Advertising & Promotional Communication Class 3

1. Internet Advertising & Promotional CommunicationClass 3 Integrated Marketing Communication (IMC)

2. Featuring in Class 3…... • Integrated Marketing Communication • Definitions • Problems & Challenges • Marketing Communication Elements • Public Relations • Sales Promotions • Direct Marketing

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?

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

5. IMC: Problems & Challenges • Lack of agreed, workable definitions of IMC • Implementation • Measurement

6. Marketing Communication Elements • Advertising • Public Relations • Sales Promotion • Direct Marketing • Personal Selling

7. Public Relations • a marketing and management function that focuses on communications that foster goodwill between a firm and its constituencies

8. What 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

9. Traditional PR tools • Press or news release and feature stories • Company newsletters • Interviews and press conferences • Community event sponsorship • Publicity

10. Internet PR: advantages, 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

11. Internet PR: advantages, 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

12. Internet 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

13. Internet 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

14. Sales Promotion • short-term promotional activities or incentives designed to generate an immediate increase in sales

15. Traditional 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

16. What 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

17. 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)

18. 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

19. 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

20. 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

21. 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

22. 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

23. Online Sweepstakes • a promotion in which prize or prizes are given to the winners who are determined on the basis of chance alone

24. 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  

25. 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

26. 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

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

28. What online premium can achieve • encourage customers to make an immediate purchase • build traffic to the store or the website • build a customer database

29. How to use online premium • Integration with advertising and other MC efforts is effective • Targeting the offer is critical

30. 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

31. 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”

32. 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

33. 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)

34. 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

35. 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

36. 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

37. 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