2. Marketing Services
• Most Marketing Services relate to Marketing
Communications
• “MarCom” for short
– Umbrella term for all promotional activities
other than advertising.
• As marketers grow, virtually all MarCom
services are growing
– New ways to market brands, and…
– New sources of career opportunities
3. Marketing Services
• Sales Promotion
• Direct Marketing
• Public Relations
• Media Buying Services
• Marketing Research
• Event Marketing
• Promotional Products
4. Who Performs
Marketing Services?
• Client Marketing Department
• Divisions of mega-agencies
– Specialized Agencies
– Division within “IMC” agency
• Specialized Agencies or suppliers
5. Who Supervises
Marketing Services?
• At the Marketer, many options
– Director of Marketing
– Brand Management
– Specialized Manager (Promotion, etc.)
– MarCom Manager
• At Specialized Agencies…
– Account Managers, Account Executives
– Project Managers
6. The World of
Sales Promotion
• How Big is the World of Sales Promotion?
– Measured Volume (Fees, etc.) over $100 Billion!
– To put it in perspective…
Advertising
52.7%Consumer
Promotion
23.4%
Trade
Promotion
18.4%
7. The World of
Sales Promotion
– It’s actually larger…
– The biggest categories
• Trade discounts
• Consumer Savings
– …are not included!
– Overall, the Volume
is HUGE!!!
Advertising
52.7%Consumer
Promotion
23.4%
Trade
Promotion
18.4%
Other
5.5%
How Big is the World of Sales Promotion?
Measured Volume (Fees, etc.) over $100 Billion!
To put it in perspective…
8. The World of
Sales Promotion
• Some Top Sales Promotion Agencies
Draft Worldwide (Interpublic)
Burger King, Kellogg’s
GMR Marketing (Omnicom)
Microsoft, Miller, Visa
Frankel (Publicis)
Frito-Lay, McDonald’s, Nestle
Momentum (Interpublic)
American Express, Anheuser-Busch, GM
Impiric (WPP)
AT&T, Mastercard, Mattell, Xerox
9. The World of
Sales Promotion
• Two Types of Sales Promotion
– “Push” Trade Promotion
– “Pull” Consumer Promotion
• Both emphasize Short-Term Sales
• Two Types of Incentives
– Less - Savings
– More - “Added Value”
• More Product (Bonus Pack)
• A Prize (Sweepstakes)
• Something else (A Premium)
19. The World of
Direct Marketing
• Simply put, direct marketing occurs when
you buy direct from a marketer
– By returning a coupon
– By calling an 800#
– By responding to a mail solicitation
– By shopping on the Internet
– By responding to a telemarketer
who called you during dinner
20. The World of
Direct Marketing
• Sales from Direct Marketing Efforts
$1.7 trillion!
From Lead Generation $904 billion
From Traffic Generation $212 billion
Direct Order Sales $635 billion
From Catalogs - $133 billion
From Direct Response Ads - $203 billion
From the Internet - $41 billion
That adds up to…
Source: DMA Economic Impact Statement 2003Source: DMA Economic Impact Statement 2003
21. The World of
Direct Marketing
• Types of Direct Marketing Companies
Direct Marketers
Examples: American Express, Land’s End
Direct Marketing Agencies
Example: Draft Worldwide (Interpublic)
Support Services
Examples: Call Centers, Catalog Printers,
List Management Services, the Post Office
22. The World of
Direct Marketing
• CRM = Customer Relationship Marketing
• LTV = Lifetime Value
– Direct Marketers work to maximize the value of the
relationship with their customers, to get the most
LTV (Lifetime Value)
• Doing all those things is “CRM”
• Increased valuation of current customers is a
driving force in marketing today
23. Some Key Reasons for
Direct Marketing’s Growth
• Changing consumer lifestyles
– Shopping opportunity for “time-poor” consumers
• More consumer credit
– Now it’s easy to buy from a direct marketer
• Better “Direct Marketing technology”
– More and better lists of potential customers
– Better and less expensive technology for
“massaging the database”
• Media fragmentation
– More cost-efficient media opportunities
24. Consumer Complaints About
Direct Marketing
• Here are some of the current issues:
• Annoyance
– List removal option of DMA
• Privacy issues
– Who owns your information?
– Data technology raises new concerns
• Unscrupulous practices
– Example: Negative option
• Major Result – The “Do Not Call” List.
25. The Key to Success in
Direct Marketing
• List Quality is Key
Internal lists
Compiled by
organization itself
External lists
Purchased from
List brokers
List compilers
26. Improving Performance
• Keys to improving performance are:
– Improving the list
– Improving the offer/incentive
– Improving the messaging
• “List Enhancement” is key
– Adding more “pieces” of information about
households on current list
– Cleaning the list: the “merge-purge” function
when combining different lists
• Continual testing against previous success
to improve results and knowledge
27. The World of
Public Relations
• Marketing PR (MPR)
– Supports marketing efforts
Corporate PR (CPR)
Deals with broader range
of issues, from investor
relations to employee
communications
28. Marketing PR:
Product Publicity
• The Basics:
The Objective - obtaining free
time or space in the media that
represents favorable mention
29. Marketing PR:
Product Publicity
• The Basics:
The Objective - obtaining free
time or space in the media that
represents favorable mention
The Strategy - product publicity,
like all PR, must be newsworthy
The Benefit - the value of
“implied” or “third-party”
endorsement by the media
30. Product Publicity
Activities
• Press Releases (immediate news)
• Technical and Case History stories
• Feature stories
• Press Tours
– Press to Company
– Company to Press
31. Corporate PR Activities
(Non-Marketing Related PR)
• Investor Relations
• Employee Communications
• Government Relations (lobbying)
• Crisis Management (oil spills, etc.)
• Community Relations
• Advocacy Advertising (corporate point
of view on public issues)
32. PR Agency
Ownership
• Top Ten PR Agencies (and ownership)
PR Agencies now part of mega-agency groups
Burson-Marstellar (Y&R/WPP)
Fleishman-Hillard (Omnicom)
Hill & Knowlton (WPP)
Edelman Public Relations Worldwide (Independent)
Ketchum (Omnicom)
Porter Novelli International (Omnicom)
Shandwick (Interpublic)
BSMG Worldwide (True North/Interpublic)
Weber PR Worldwide (Interpublic)
Ogilvy Public Relations Worldwide (WPP)
33. PR Agency
Ownership
• PR Agencies now part of mega-agency groups
Ad Organizations by PR Fees
Omnicom $490.1 million
Interpublic $316.5 million
WPP Group $230.4 million
Y&R Inc. $196.4 million
True North $120.3 million
Mergers Continue
Y&R will be added to WPP totals
True North will be added to Omnicom totals.
34. The World of
Media Buying Services
• Independent companies that buy media time
and space for advertisers
• Originally, an alternative to the media
department of a full-service ad agency
• Evolved as media choices proliferated and
media buying became more complicated
• Now mega-agencies have “unbundled” their
media departments to create competing media
buying services
35. The World of
Media Buying Services
• The Pioneer: Dennis Holt builds Western into #1
Bought by Interpublic
Merged with Initiative
Becomes model for all agencies
The World of
Media Agencies
WPP combines Ogilvy and JWT
Media Departments to form
MindShare
Leo Burnett turns their Media
Department into StarCom
Unbundling continues…
36. The World of
Marketing Research
• The Business of Evaluation
– FEEDBACK is critical nourishment for marketers
• The Product is FACT, not opinion
– Accurate information gathering is also critical.
– Research reputations depend on the dependability
of their data
37. The World of
Marketing Research
• Two types of entities provide this critical
marketing information:
– Internal Marketing Research Departments
• At the marketer
• At a full-service agency
– Outside Marketing Research Firms
38. Role of Internal Marketing
Research Department
• Analyze company sales data
• Provide short-term and long-term sales
and industry projections
• Determine what primary research studies
need to be carried out
• Select and hire outside research firms to
conduct surveys and provide other
information
39. Types of Outside
Marketing Research Firms
• Limited-service Research Suppliers
– These supply a specific type of data, often to
all major marketers.
– Syndicated Research (Nielsen TV ratings)
– Standardized Research (Gallup & Robinson ad
recall pre-testing studies)
• Full-service Research Suppliers
– Focus Groups and Surveys
– “Starting from scratch” research projects
40. The World of
Event Marketing
• How big is the World of Event Marketing?
Sports sponsorship $5.92 billion
41. The World of
Event Marketing
• How big is the World of Event Marketing?
Entertainment, tours, attractions $817 million
Sports sponsorship $5.92 billion
42. The World of
Event Marketing
• How big is the World of Event Marketing?
Festivals, fairs, annual events $740 million
Causes $700 million
Entertainment, tours, attractions $817 million
Sports sponsorship $5.92 billion
43. The World of
Event Marketing
• How big is the World of Event Marketing?
Festivals, fairs, annual events $740 million
$8.7 billion!
Causes $700 million
Entertainment, tours, attractions $817 million
That all adds up to...
Sports sponsorship $5.92 billion
The Arts $548 million
44. The World of
Event Marketing
• Provides opportunities for:
– Sampling of product
– Widespread publicity in media
– Unique connection w. target market
• Cause marketing:
– A special type of event marketing
– Example: Children’s Miracle Network
45. The World of
Promotional Products
• A $16 billion business
• Items with company brand
or logo on it (pens, hats,
key rings)
• Higher priced items
called “business gifts”
• Many uses:
– Sales lead generation, trade
shows, awareness building,
employee morale, etc.
47. The MarCom
Manager
• Relatively new position - result of “IMC.”
– Title/function more common on West Coast
– Evolving as marketers’ needs evolve
• Requires “jack-of-all-trades” promotional skills and
understanding of all forms of “IMC”
• Emphasis will vary by industry
– High-tech - PR emphasis
– Packaged goods - sales promotion emphasis
– Beverages - event and sports marketing emphasis
48. The Future of
Marketing Services
• With increased pressure for short-term
revenue, the need will keep growing
• There will be dynamic growth in most areas
– Sales Promotion - up 20%
– Direct Marketing - up 15%
• Increased focus on existing customer “LTV”
– More loyalty programs
– More targeted programs
– More Customer Relationship Management
49. The Future of
Marketing Services
• New Technologies
– Interactive and Information Technology
– The Internet will affect everybody!
– Virtually everyone will practice some form of direct
or highly targeted marketing
• New Companies
– Start-ups - need IMC from ground up
– Start-ups will be internal as well as external
• Example: Nike buys Converse
and suddenly Will Smith is wearing them in “iRobot”
50. The Future of
Marketing Services
• Economics of Scale
– Large Mega-agencies will have more resources
– Large marketers will want more programs
• Competition
– All marketing services activity will increase
– Competition between services will also increase
• More Diversity
– Not just in population, but marketing approach
– Managing all of this will be a huge challenge!
52. Questions & Discussion
• Sales Promotion
• Direct Marketing
• Public Relations
• Media Buying Services
• Marketing Research
• Event Marketing
• Promotional Products
Editor's Notes
For chart
Now remember, Advertising is about $236 billion - and that’s 52% of this pie - Consumer promotion is 23.4% and trade promotion is 18.4% - Other types of marketing expenses make up about 5% - things like telemarketing
