Masters of Business Studies

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Masters of Business Studies

• Marketing (MKT 714J1)
• New Developments
• in Marketing
• Week 11
• 
  Paula Durkan
• Room 1B13
• Tel [phone]

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Realm of understanding
Sender or source
Encoding
Signal or message
Noise
Realm of understanding
Decoding
Feedback
Destination or receiver
( A linear model of communication (Source based
on Schramm, 1955 and Shannon Weaver 1962))
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Source Individual or organisation sending the
message. Encoding Transferring the intended
message into a symbolic style that can be
transmitted. Signal Transmission of the message
using the chosen media Decoding Understanding
the symbolic style of the message in order to
understand the message. Receiver The individual
or organisation receiving the message. Feedback T
he receivers communication back to the source on
receipt of the message. Noise Distortion of
the communication process, making it difficult
for the receiver to interpret the message as
intended by the source.
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NFP Organisations

• Universities - media
• Charities - NSPCC, YMCA,
• Churches - Saatchi Saatchi ran a 2.5m
  campaign for the Vatican.
• Government - health awareness campaigns, social
  security campaigns, drink driving campaigns etc.

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Characteristics of NFP Organisations

• Education V Meeting Current Needs
• Multiple Publics
• Measurement of Success and Conflicting Objective
• Public Scrutiny

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NFP and The Marketing Mix

• Pricing - revenue may come from many different
  sources e.g. government, licence, donations,
  membership etc.
• Distribution - Delivering service with the
  convenience customers require.

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Promotion

• Many NFP organisations are good at using
  promotion to further their needs
• Print media
• Direct Mail
• Mailing lists

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Direct Marketing

• Marketing through various advertising media that
  interact directly with consumers, generally
  calling for the consumer to make a direct
  response.

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Direct Marketing Media Tools

• 1. Direct Mail
• 2. Catalogues retail, full-line merchandise,
  business to business and consumer speciality.
• 3. Mass Media Direct Marketing television,
  radio, magazines and newspapers.
• 4. Infomercials documentary style 30-60 min
  commercial
• 5. Interactive Media internet, videotext, cable
  television.
• 6. Telemarketing combines telecommunication
  technology, marketing strategies and systems.

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Growth in E Marketing

• Changing lifestyles
• Gaps in retailing
• Technology
• Consumer credit

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Key Elements of Direct/E Marketing

• Interactive system - two way.
• Opportunity to respond - decision up to
  individual target.
• Any location totally flexible.
• Measurable - which communication the prospect
  responded to.

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Characteristics of Products/Services suited to
Direct/E Marketing

• 1. Unusual
• 2. Easily packaged
• 3. Doesnt require demonstration
• 4. Fulfils a genuine need
• 5. Proven product
• 6. Attractive price
• 7. A good profit margin

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Direct/E Marketings Special Competencies

• 1. Precision targeting - Well defined.
• 2. Cost effective - Reduces distributor and
  retail margins.
• 3. Immediate and flexible - Ability to react
  quickly to customer needs.
• 4. Personalised Name, address, areas, months,
  links to previous purchases.
• 5. Measurability Facilitates continuous
  improvements.
• 6. Opportunity to test and retest Any variable.
• 7. International Alternative route to new
  market.

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Disadvantages of Direct/E Marketing

• Upset middleman
• Image - Junk mail, environmental pressure groups.
• Invasion of privacy
• Initial Costs
• Low response rates
• Development costs in database acquisition/developm
  ent.
• Risk - Bad Mailing
• 80 unopened
• 63 partially read.

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Direct MarketingEthical Considerations

• ISSUES
• Invasion of privacy
• Unsolicited goods
• Misleading copy
• CONTROLS
• Self regulation
• Legislation

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Database Marketing
More investment, more profit Identify
Prospects Analyse
database Target Media Increase
Customer Value Sell Products
Cross Sell/Up Sell Get Customer
Information Talk to key Customers
Regularly
Build Analyse Database