Meeting 8 -...

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The Internet PictureSendersInternetReceiversInternetAdvertisersSponsorse-CommerceMerchantsUsersShoppersCustomers

Internet Communications ObjectivesTo create awarenessTo generate interestTo disseminate informationTo create an imageTo create a strong brandTo stimulate trial

Internet AdvertisingSponsorshipOwnership of an entire site or pageBanner AdsA portion of another owners pagePop-UpsSmall windows that appear automaticallyInterstitialAds appearing while waiting for a page to loadPush Technologies or WebcastingAutomatic or unsolicited message deliveryLinksHypertext links to other sites, pages or locations

Personal Selling on the InternetMay replace personal sellingReduces high cost of personal callsVastly increases potential reach

May enhance personal selling effortsProvides quick, easy, information to prospectsMay be a source of leadsMay help to enhance customer data basesMay stimulate trial of the goods or serviceMay improve one-on-one communicationsMay serve as a sales conference medium

Sales Promotion on the InternetOffering consumers special incentives via the internet to encourage trial, repeat purchase, or customer loyalty

Distribution of samples, couponsAbility to enter contests, sweepstakesPremium offersLoyalty programs

Public Relations on the InternetInternet as a medium for conducting PRMedia relations websitesDissemination of customized informationProvision of information on the company and its productsPhilanthropic activities

Internet Direct MarketingDirect MailHighly targetedRelies on e-mail listsAttempts to reach those with specific needsOften used by catalogersMarketing Databases on the Net Companies build or acquire a databaseThe database is sold to subscribersDelivery may be on- or off-line

Internet Direct MarketingInfomercialsProgram content similar to television, cable or satelliteWeb provides for greater audience interactionE-CommerceRapid growth rates likely to continueCDs, books, travel are main categoriesClothing, cars, financial services are all gaining ground

Measures of EffectivenessOnline MeasuringData on demographics, psychographics, location of access, media used, buying habits, and more.Recall and RetentionDaily user interviews to measure recall and retention of web content viewedNonresponseMeasures of destination after failure to click-throughSurveysOn- and off-line surveys to determine usage factorsPanelsUsage and attitude data obtained from a specific groupSalesSales volume keyed to specific times and sitesTrackingAccumulation of site performance data

Internet AdvantagesTarget MarketingMessage TailoringInteractive CapabilitiesInformation AccessSales PotentialCreativityExposureSpeed

Internet DisadvantagesMeasurement problemsAudience characteristicsWeb snarlClutterPotential for deceptionCostsLimited production qualityPoor reach

, , , , , . , , ..Promotion allowancesMerchandise allowancesPrice dealsSales contestsTrade shows CouponsSamplingPremiumsRebates 9.99Sweepstakes


Sales PromotionAn extra incentive to buyAn acceleration tool for salesAn inducement to intermediariesTargeted to different parties sales personnel, etc.A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.

Frequency programsSales Promotion VehiclesConsumer-OrientedSamplesCouponsPremiumsContests/sweepstakesRefunds/rebatesBonus packsPrice-off dealsEvent marketingTrade-OrientedContests, dealer incentivesTrade allowancesPoint-of-purchase displaysTraining programsTrade showsCooperative advertising


Reasons for Increase in Sales PromotionGrowing Power of RetailersDeclining Brand LoyaltyIncreased Promotional SensitivityBrand ProliferationFragmentation of Consumer MarketsShort-Term Focus sales every quarterIncreased AccountabilityCompetitionClutter


Sales Promotion UsesIntroduce new products by encouraging trial and repurchaseGet existing customers to buy moreAttract new customersDefend current customersMaintain sales in off seasonTarget a specific market segmentEnhance IMC efforts and build brand equity


Objectives of Consumer-Oriented Sales PromotionTo Obtain Trial and RepurchaseTo Increase Consumption of an Established BrandTo Defend (Maintain) Current CustomersTo Target a Specific SegmentEnhance IMC programs and build brand equity


SamplingSampling works best when:The products are of relatively low unit value, so that samples dont cost muchThe purchase cycle is relatively short so the consumer can purchase in a relatively short time periodThe products are divisible and can be broken into small sizes that can reflect the products features and benefitsProviding consumer with some quantityof a product for no charge - to induce trial


Sampling MethodsDoor-to-doorDirect mailIn-store samplingCross-product samplingWith newspaper or magazineThrough the internet


Advantages and Limitations of CouponsAdvantages:Appeal to price sensitive consumerCan offer price break without retailers coopCan be effective way to induce trial of new or existing productsCan be way to defend market share and encourage repurchase

DisadvantagesDifficult to determine how many consumers will use coupons and whenCoupons are often used by loyal consumers who may purchase anywayDeclining redemption rates and high costs of couponingMisredemption and fraud

Coupon FraudConsumers redeem without purchaseClerks and staff exchange for cashManagers/owners redeem without saleCriminals collect or counterfeit and sell


Coupon TrendsMajor companies cutting back on use of coupons

Searching for more effective coupon techniques

More use of internet for distribution

PremiumsTwo types of premiums:Free premiums -only require purchase of the product Self-liquidating premiums- require consumer to pay some or all of the cost of the premium Premium an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers

Contests and SweepstakesContest a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteriaSweepstakes/games a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are determined by random selection from the pool of entries or generation of a number to match those held by game entrants.

Other Popular Consumer SalesPromotion Tools

Refunds and RebatesBonus PacksPrice-off dealsFrequency/loyalty programsEvent marketing

Promotion Targeted to Reseller SalespeopleProduct or program sales Selling a specific number of casesSelling a specific number of unitsSelling a specific number of promotional programsNew account placementsNumber of new accounts openedNumber of new accounts ordering a minimum amountPromotional programs placed in new accountsMerchandising efforts Establishing promotional programsPlacing display racks, counter and other p-o-p displays