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  1. 1. Integrated Marketing Communications 2 Personal Selling & Direct Marketing
  2. 2. Personal Selling <ul><li>Salespeople …… reps </li></ul><ul><li>Account executives </li></ul><ul><li>Sales consultants …..engineers </li></ul><ul><li>Agents </li></ul><ul><li>District managers </li></ul><ul><li>from order takers to order getters </li></ul><ul><li>some firms have no sales reps & work only thru intermediaries </li></ul><ul><li>involves 2-way comms: face2face, phone, video conferencing. Etc </li></ul><ul><li>learn about customer problems, needs, negotiate terms of sale </li></ul><ul><li>well-trained, maintain long term relationships </li></ul><ul><li>they represent the firm to customers </li></ul><ul><li>Stereotype: loners, “traveling” “their” territory, pushing goods on warm and cold call buyers </li></ul><ul><li>Versus the “professional” </li></ul><ul><li>selling a 747, a new database server, systems consultancy </li></ul><ul><li>Can be done by outside or inside sales people, team selling & even telemarketers & www-based sales force </li></ul>
  3. 3. Sales Management involves … IMC Coordination Cisco Field E-Learning Connection – a global learning portal. Audio, video, live classes, text & other content e.g. mp3, e-mentors <ul><li>Prospecting & qualifying </li></ul><ul><li>Scouting, referrals, warm/cold leads, suppliers, dealers. Identify good/bad </li></ul><ul><li>Pre-approach research </li></ul><ul><li>Learn about customer & buyer’s needs </li></ul><ul><li>The Approach </li></ul><ul><li>meet, greet, rapport, appearance, opening lines. Build good will. Displays, samples, literature </li></ul><ul><li>Presentation & demonstration </li></ul><ul><li>Solutions not razzle-dazzle. Empathy, listening, honestly, dependability, thoroughness, follow-thru. </li></ul><ul><li>Handling objections </li></ul><ul><li>Closing </li></ul><ul><li>Follow-up </li></ul><ul><li>Organising the sales force </li></ul><ul><li>Sales force size </li></ul><ul><li>Location </li></ul><ul><li>field vs call centre </li></ul><ul><li>Managing the sales force </li></ul><ul><li>setting objectives </li></ul>Training the sales force: know the products & promotions, customer & competitor characteristics, needs, buying motives, procedures, active vs potential accounts. WWW-based training
  4. 4. Direct Marketing Trends <ul><li>mass market vs trend for narrowly targeted or 1-to-1 </li></ul><ul><li>direct distribution (no intermediaries) – target individuals for immediate, measurable response </li></ul><ul><li>direct marketing as a “supplement” </li></ul><ul><ul><li>Lexus uses mass media advertising & dealer network but now adds CDs, emailing, www pages </li></ul></ul><ul><ul><li>Staples - bricks & mortar but sell also thru www-site </li></ul></ul><ul><li>Direct marketing as the only approach </li></ul><ul><ul><li>Dell?, Easyjet, RyanAir , Amazon, Cisco, IBM, eBay </li></ul></ul>
  5. 5. Direct Marketing Growth: Benefits etc <ul><li>Buyers </li></ul><ul><li>convenient, easy-to-use, private </li></ul><ul><li>comfort, browsing & access, 24/7, global </li></ul><ul><li>Comparison info on companies, products, prices </li></ul><ul><li>interactive & immediate – phone, www site, wish lists. In-stock, order, delivery tracking </li></ul><ul><li>Sellers </li></ul><ul><li>build customer relationships thru databases </li></ul><ul><li>access to buyers not reachable thru other channels </li></ul><ul><li>Personalised, timed communication </li></ul><ul><li>low-cost, efficient, fast </li></ul><ul><li>rapid B2B growth. Low cost per contact </li></ul><ul><li>Sales people in “call-centre” mode </li></ul>
  6. 6. Customer Databases & Direct Marketing <ul><li>Customer database </li></ul><ul><li>organized, comprehensive data sets on individual customers/prospects, incl. geographic, demographic, psychographic & behavioural data </li></ul><ul><li>Uses </li></ul><ul><li>analyse/track good, bad & potential customers </li></ul><ul><li>Cold call to warm call --- generate sales leads </li></ul><ul><li>learn about customers </li></ul><ul><li>develop strong long-term relationships </li></ul>
  7. 7. Database marketing & data mining <ul><li>addressable marketing media & channels (mail, eMail, & sales force) to: </li></ul><ul><li>inform target audience </li></ul><ul><li>stimulate demand </li></ul><ul><li>stay close: database of customer, prospects, communications & transactional data. </li></ul><ul><li>analyse needs & lifestyle data </li></ul><ul><li>customers, contact names & business activities </li></ul><ul><li>transactions – orders, returns, payments, frequency, value, hits </li></ul><ul><li>their needs, leads, inventories, projects ( e.g. Emirates – aircraft, ages, engines, routes, fuel efficiencies etc) </li></ul><ul><li>timely inquiries & swift responses to offers </li></ul>
  8. 8. Collect data from various sources <ul><li>company & sales force records </li></ul><ul><li>responses to sales promotions </li></ul><ul><li>application forms e.g. store loyalty cards </li></ul><ul><li>complaints </li></ul><ul><li>organised events e.g. exhibitions, fashion shows, wine tastings </li></ul><ul><li>use of warranty & guarantee registrations </li></ul><ul><li>samples requiring customers to give name, address, phone number etc. </li></ul><ul><li>enquiries </li></ul><ul><li>sharing data with other companies </li></ul>
  9. 9. mini database schema
  10. 10. Outsourcing to DB specialists
  11. 11. Direct Marketing Applications <ul><li>direct mail </li></ul><ul><ul><li>Selective mail list: letters, brochures, ads, samples, music me </li></ul></ul><ul><ul><li>High selectivity, measure results, cost/1000 higher but to better prospects </li></ul></ul><ul><ul><li>Email, sms, auto-voice mail vs “snail mail” </li></ul></ul><ul><li>telephone marketing </li></ul><ul><ul><li>outbound, inbound toll-free, junk calls </li></ul></ul><ul><li>“ Avon calling“ catalogue marketing + WWW orders </li></ul><ul><ul><li>cost of printing Tesco, Next, M&S, Argos </li></ul></ul><ul><li>direct response TV advertising – selling channels </li></ul><ul><li>Kiosks </li></ul><ul><li>E-media (pop-up ads, email, interactive TV) </li></ul><ul><li>inserts (leaflets in magazines) </li></ul><ul><li>door-to-door leafleting </li></ul>
  12. 12. Online Marketing Domains <ul><li>Business to consumer (B2C) </li></ul><ul><li>selling online to final consumers </li></ul><ul><li>Business to business (B2B) </li></ul><ul><li>selling & providing information online to businesses. building customer relationships </li></ul><ul><li>Consumer to consumer (C2C) </li></ul><ul><li>www communication between parties over products, services, interests </li></ul><ul><ul><li>Blogs: fresh, original, inexpensive way to reach fragmented audiences. Not for marketers to control? </li></ul></ul><ul><ul><li>Viral </li></ul></ul><ul><li>Consumer to business (C2B) consumers communicate with companies to send suggestions & questions via company www-sites </li></ul>
  13. 13. Direct Mail Marketing <ul><li>a mailed offer, menu, announcement, reminder or other to someone at an address </li></ul><ul><li>personalized or impersonal mailshot/circular </li></ul><ul><li>Danger of JUNK MAIL </li></ul><ul><li>easy-to-measure results? Compare costs & results with mass media </li></ul><ul><li>local e.g. taxis, takeaways </li></ul><ul><li>national & international …… hotels, HMV, JCB, Gillette, HMG, NHS </li></ul>
  14. 14. Catalogues & Direct Marketing <ul><li>Web-based catalogs </li></ul><ul><li>“ real-time” merchandising </li></ul><ul><li>data in the same database </li></ul><ul><li>Stock & buying transactions </li></ul><ul><li>flag & archive merchandise for inclusion </li></ul><ul><li>lower cost than “print” </li></ul><ul><li>interactive content </li></ul><ul><li>promotional features </li></ul><ul><li>synchronization for new catalogue </li></ul><ul><li>printed + Web-based catalogs </li></ul><ul><ul><li>sent to home, pick up from store </li></ul></ul><ul><ul><li>printing & distribution costs </li></ul></ul><ul><ul><li>renewals </li></ul></ul>
  15. 15. Telephone Direct Marketing – benefits & problems <ul><li>tele-sales to B2C & B2B </li></ul><ul><li>convenience for buyers? </li></ul><ul><li>more product service & information + B2C enhancements to product & service </li></ul><ul><li>inbound tele-marketing: toll-free to receive orders from TV & print ads, direct mail & catalogs </li></ul><ul><li>The “down-side” …. Involves </li></ul><ul><li>call-centres </li></ul><ul><li>auto-callers & problems with unsolicited calls </li></ul><ul><li>Do-Not-Call registry </li></ul>
  16. 16. DRTV & Kiosk Direct Marketing <ul><li>Direct-response TV (DRTV) marketing </li></ul><ul><li>60-120-sec adverts & demos </li></ul><ul><li>toll-free number or WWW to buy </li></ul><ul><li>info-mercials : home shopping channels </li></ul><ul><li>consider sales-cost ratios </li></ul><ul><li>track results </li></ul>Kiosk marketing placing information & ordering machines in stores, airports, trade shows & other locations
  17. 17. Online Advertising & Promotions <ul><li>WWW-site banner ads </li></ul><ul><li>interstitials: appear between screen changes </li></ul><ul><li>pop-ups </li></ul><ul><li>rich media with animation, video, sound & interactivity </li></ul><ul><li>banner swapping - external partners help sell complimentary products & services </li></ul><ul><li>aim to stimulate curiosity among non-related traffic </li></ul><ul><li>problems with pop-ups as Spyware </li></ul><ul><li>Search-related ads </li></ul><ul><li>promo links on search engine results: Google, Yahoo! </li></ul>
  18. 18. Other Online Promotions <ul><li>Content sponsorships </li></ul><ul><li>provide companies with name exposure thru sponsorship of special content such as news or financial information </li></ul><ul><li>Alliances & affiliate relationships </li></ul><ul><li>online companies promote each other </li></ul><ul><li>Buzz/Viral marketing </li></ul><ul><li>WWW word-of-mouth. Involves e.g. wwwsite + eMail or SMS + marketing artifacts giving information, jokes, games, mp3s, videos that pass friend-friend </li></ul><ul><li>How? Identify & target </li></ul><ul><ul><li>trendsetters who adopt ideas early. Brand awareness is then passed to others (Mimics) </li></ul></ul>
  19. 19. Vouchers/Couponing <ul><li>discounts, special deals or “savings” thru print or e-means </li></ul><ul><li>generates high & rapid return, avoid repeating same coupon over & over. </li></ul><ul><li>make the offer intriguing </li></ul><ul><li>extensive use by restaurants </li></ul><ul><ul><li>voucher for off-peak days/times </li></ul></ul><ul><ul><li>repeat customers </li></ul></ul>
  20. 20. Marketing & Social Networking <ul><li>Via WWW communities - congregate & exchange common interests. Forums – user-contributed content - usually unfiltered, questions & concerns organised by topic, email to all ? </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>Friends Reunited – email & new additions </li></ul><ul><li>Facebook, mySpace, YouTube – photos, videos, contacts, advertising </li></ul><ul><li>Blogs - easy to create, maintain & change, search engine friendly </li></ul><ul><li>Big issues of trust & societal monitoring esp. re-intrusion & “grooming of children/young people” </li></ul>
  21. 21.
  22. 22. Improving Site Effectiveness <ul><li>enticing appropriate visitor behavior </li></ul><ul><li>establish emotional links </li></ul><ul><li>build relationships </li></ul><ul><li>increasing per-customer purchases </li></ul><ul><li>after sale marketing </li></ul><ul><li>Convert visitors to customers thru </li></ul><ul><li>promotions , special offers, coupons </li></ul><ul><li>complimentary products </li></ul><ul><li>customer recommendations </li></ul><ul><li>opt-in information feeds </li></ul>
  23. 23. Conversion Rates <ul><li>What % of WWW site visitors complete a desired action e.g. </li></ul><ul><li>complete a form </li></ul><ul><li>clicks beyond home page </li></ul><ul><li>p urchases </li></ul><ul><li>register </li></ul><ul><li>subscribe to newsletter </li></ul><ul><li>download samples </li></ul><ul><li>make sales enquiry etc </li></ul><ul><li>high conversion depends on </li></ul><ul><ul><li>visitor interest level </li></ul></ul><ul><ul><li>attractiveness of the offer </li></ul></ul><ul><ul><li>ease of the process </li></ul></ul>(“Using Conversion Rates to Measure Web Site Effectiveness and Improve ROI”
  24. 24. Conversion Rates <ul><li>many myths & fallacies </li></ul><ul><li>“… average conversion rates are in the 3% to 5% range; below 2% is considered poor; 10% & above is awesome.” </li></ul>(
  25. 25. Customer Acquisition First Impression Merchandising and Selection Checkout Process Target Inappropriate Audience Unclear Marketing Message Slow Page Load Unengaging “ Look & Feel” Clumsy Site Navigation Ineffective Presentation No Access to Real-Time Help Ineffective Tools to Assist Selection Inadequate Selection Uncompetitive Price Excessive Shipping Costs Long Delivery Times Credit Card Validation Error Order Conversion Rate = 1.9% 100% Percent of Site Visitors Source: The Boston Consulting Group Factors influencing Conversion Rates
  26. 26. So … designers of user-interfaces …. centre on the user experience <ul><ul><li>experience – familiar needs & mental models of customer </li></ul></ul><ul><ul><li>customer expectations </li></ul></ul><ul><ul><li>ease & comfort </li></ul></ul>
  27. 27. Online Marketing: Driving Traffic, Conversion & Sales Adapted from Get the book from or
  28. 28. Transaction & Triggered e-mails <ul><li>Transactional & triggered e-mails </li></ul><ul><li>the most powerful e-mails sent to catalog customers. </li></ul><ul><li>open rates of 70-90% compared to promotional e-mail’s open rates (usually < 20%) </li></ul><ul><li>For success ? </li></ul><ul><li>emulate a conversation between client & customer ? </li></ul><ul><li>message above the fold (visible without scrolling – higher click thru.) </li></ul><ul><li>cross sales ”below the fold” ??? </li></ul><ul><li>Types of trigger </li></ul><ul><li>welcomes </li></ul><ul><li>abandoned Shopping Cart </li></ul><ul><li>product Ratings & Review </li></ul><ul><li>first-time buyer </li></ul><ul><li>birthday or anniversary </li></ul><ul><li>direct mail support </li></ul><ul><li>“ We Missed You” </li></ul><ul><li>surveys & polls </li></ul>
  29. 29. <ul><li>1,700 outlets </li></ul><ul><li>created a birthday club “FREE Ice Cream on Your Birthday!” . </li></ul><ul><li>2,000,000 signed up for e-mails in 2-years </li></ul><ul><li>Birthday emails have open rates 62.5% higher than other emails. Click thrus are 350% higher . </li></ul><ul><li>Franchisee survey: </li></ul><ul><li>“ Overwhelmingly positive response… drives people into the stores… people don’t come in by themselves.” </li></ul>
  30. 30. Transaction emails – v. powerful <ul><li>Transaction e-mails (“Your order was shipped today”) – like triggers -- have open rates of more than 60% </li></ul><ul><li>ideal for promoting additional sales – customers read them. </li></ul><ul><li>many companies do not take advantage of this. </li></ul><ul><li>their transactions are in text, not HTML & often say “ Do not reply to this e-mail !” </li></ul><ul><li>Quel dommage !!! </li></ul>
  31. 31. Welcome Trigger Email <ul><li>present the new prospect with a solid brand message </li></ul><ul><li>Not overly promotional </li></ul><ul><li>Include a call to action </li></ul>
  32. 32. Reminders E-mail Design Postcard design Email 11% increase in sales over postcard only. Increased number orders by 10% Promo cost +3% Result: Increased Contribution
  33. 33. Missing You Email <ul><li>Be specific </li></ul><ul><li>Ask them to come back </li></ul><ul><li>Consistent brand message </li></ul>
  34. 34. Abandon Cart E-mail <ul><li>Be specific </li></ul><ul><li>Incentivise with a reason to move to the check out </li></ul><ul><li>consistent brand message + stronger promotional content </li></ul>
  35. 35. Poor Transactional E-mail Dear Valued Customer, Thank you for placing your order with 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 a vailable.) We look forward to your next visit, Customer Service, Bill Bracket, Inc. Check out our new arrivals and find great savings at
  36. 36. Microsoft example make a note of this easy-to- remember number So you can enter it here! Try reading this easy number over the phone !
  37. 37. Keeping subscribers - advice <ul><li>You have them, how do you keep them – & keep them opening your e-mails? </li></ul><ul><li>Make each e-mail relevant (to their interests) & an adventure (by making it very interactive). </li></ul><ul><li>include surveys, opinion polls, contests, humor -- why not make your e-mails fun to read? </li></ul>
  38. 38. Guerilla & Viral Marketing <ul><li>Go to next Powerpoint set </li></ul><ul><li>see uLink </li></ul>
  39. 39. Sample examination question <ul><li>Evaluate the pros and cons of email and ”trigger” marketing. Discuss opportunities and problems they present for ONE of the businesses or business sectors: </li></ul><ul><li>Gillette (you may choose a specific product group within this company) </li></ul><ul><li>the earth-moving equipment sector such as JCB, Caterpillar and Komatsu </li></ul><ul><li>the hotel sector such as: Hilton, Accor, Travelodge, Townhouse </li></ul><ul><li>HMV </li></ul><ul><li>Offer conclusions on design approaches that may contribute to success in driving traffic, conversion & sales in the business or sector you selected. </li></ul>
  40. 40. Sample examination question <ul><li>Explain the key facets of guerrilla and viral marketing. Discuss the opportunities and problems they present for ONE of the businesses or business sectors: </li></ul><ul><li>Gillette (or a product group within it) </li></ul><ul><li>the earth-moving equipment sector such as JCB, Caterpillar and Komatsu </li></ul><ul><li>The hotel sector such as: Hilton, Accor, Travelodge, Townhouse </li></ul><ul><li>HMV </li></ul><ul><li>What business clients in other sectors may have more success with guerrilla and viral marketing than the business or sector you selected and why? </li></ul>