Joel Reedy and Shauna Schullo

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Chapter 9

• Integrating the Promotional Mix

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Developing the Online Awareness

• The Web is well suited for the presentation and
  persuasion aspects of the marketing mix
• Capabilities of the Web have matured greatly
  during the last few years, and marketers are
  introducing new service applications
• Abilities to personalize the users site and
  comparison of search engines
• Improving the sites navigation
• Partnering with complementary products and
  services

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Developing the Online Awareness

• The strategic communications value of online
  promotion
• Considered a support media vehicle for most
  consumer goods and services
• As support, online marketings function should
  build on awareness and action process because of
  the unique capability of viewer interaction
• The marketer should focus her attention on
  thinking external dialog rather than internal
  monologue allowed by two-way communications
  ability

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Developing the Online Awareness

• The strategic communications value of online
  promotion
• The marketer must produce appropriate content
  guided by information rather than exaggeration
• The two-way dialog sets the Web apart from
  traditional media since the majority of mass
  vehicles direct their messages through a one-way
  monologue
• The Web becomes the ideal marketing medium
  because of its global reach

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Developing the Online Awareness

• Stages in developing online awareness
• The site will require its own marketing to
  establish visibility
• The next stage of building awareness is building
  credibility and believably
• The third step of establishing an online
  awareness is fostering online longevity

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Commerce and Communications

• In executing this awareness strategy, the
  marketer should eventually balance commerce with
  electronic communications
• To stress the importance of relationship
  marketing and customer service calls for
  enterprises to differentiate themselves by
  constantly providing superior service at every
  customer encounter

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Commerce and Communications

• Relationship marketing can encompass a choice of
  marketing strategies depending on company needs
  in customer and prospect interaction model
  developed by the Gartner Group. The Web can be
  used for
• Customer acquisition
• Customer retention
• Customer extension
• Customer selection

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Commerce and Communications

• The unique push property of the Web
• The Web was first based on pull technology,
  that the client browser must request a Web page
  before it is sent
• As in direct marketing, the Web evolved into a
  push medium delivering customized news and
  advertising to individuals at work
• Marketers can combine the push interactivity so
  that the promotional program can use both a push
  and pull strategy at the same time

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Formulating the Promotional Strategy

• Promotional mix consists of
• Advertising
• Sales promotion
• Public relations
• Direct marketing
• Cybermarketing
• Personal selling

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Advertising

• Advertising is any paid from of non-personal
  messages about an organization, product, service
  or idea promoted by an identified sponsor
  directed to a mass audience
• Advantages
• Cost-efficient median for reaching national
  audiences
• Efficient method for building image through
  visuals
• Entertaining medium because of sight, color,
  motion, sound
• Targetability to reach market segments through
  program selection

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Advertising

• Disadvantages
• The cost of national advertising coverage is
  expensive production costs for creating the
  national commercial are also high
• National advertising is not selective in
  targeting specific markets, thus creating wasted
  coverage
• Advertising materials must be prepared far in
  advance and allow little flexibility in making
  changes to ads quickly
• There is much water among advertising messages,
  vehicle promotions, and public service
  announcements

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Direct marketing and Cybermarketing

• Direct marketing and cybermarketing are
  promotional elements in which organizations
  communicate directly with the target customers to
  generate response or transaction
• Advantages
• The ability to target customers via database
  which provides high selectivity
• Direct marketing pieces and Web sites can contain
  large amounts of product and service application

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Direct marketing and Cybermarketing

• Advantages
• Direct marketing comes for the capability to
  personalize mailed items
• Direct marketing has the ability send product
  samples to prospects or targets users of
  competing brands
• Cybermarketing on the Web allows e-mail campaigns
  that can be cost-efficient
• There is opportunity for repeated exposure
  according to the marketing plan

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Direct marketing and Cybermarketing

• Disadvantages
• Cost of direct marketing using traditional media
  are high since the messages are presented to
  target groups usually small in number
• Initial costs of preparing and maintaining a Web
  site can be expensive
• Image problems that can be traced to junk mail
  or spammed e-mail
• Direct mail fights the clutter problem

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Sales Promotions

• Sales promotions are those marketing activities
  that provide extra value or incentive to the
  sales force or to the ultimate consumer
• Advantages
• Rapid increase in sales activity and volume
• Attracts new buyers to trial purchases
• Defend an established brand against new
  competition
• Reward loyal customers as they continue to be
  product users
• Sponsoring specific events can provide additional
  marketing support

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Sales Promotions

• Disadvantages
• Marketers and retailers had become dependent on
  sales promotion by training their customers to
  buy only when the product is on sale
• Matching competitors sales promotions can lead
  to a sales promotion spiral
• Extensive sales promotion can erode brand
  perception because of the discount nature of
  sales promotion
• There is substantial opportunity for sales
  promotion abuse such as fraudulent coupon
  redemption or sweepstakes misrepresentation

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Public Relations

• Public relations and publicity are associated
  with non-personal communications regarding an
  organization, product, service, or idea not
  directly paid for by an identified sponsorship
• Advantages
• Public relations can act as an early warning
  system to protect the organizations franchise
  with the community and with its audience
• Positive publicity efforts can produce an aura of
  credibility as the media becomes unbiased,
  third-party endorsers

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Public Relations

• Advantages
• A thorough public relations program can earn the
  companys recognition as a solid community
  citizen
• Although considered a short-term tactic, PR is a
  low-cost, long-term promotion strategy

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Public Relations

• Disadvantages
• Publicity can be positive or negative negative
  publicity can do irreparable harm to the
  organizations reputation and its relationships
  with its publics
• Public relations programs are not always under
  the control of the marketer
• Public relations plans are extremely
  time-consuming since PR programs should be
  developed for each of the firms constituencies.

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Personal Selling

• Personal selling is defined as a form of
  person-to-person communication in which a seller
  attempts to persuade a second party to buy, rent,
  or lease
• Advantages
• Beneficial relationships can be formed and last
  for many years
• Dyadic communication allows the sender to tailor
  or alter the message according to the prospects
  reactions
• Personal selling is a face-to-face experience,
  disregarding mass media
• Yields more immediate and precise marketing
  results

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Personal Selling

• Disadvantages
• Cost of personal selling calls is quite high
  (350 )
• Reach of personal selling is extremely limited
• Concern in management that the field sales
  representative is not presenting the product or
  service with the same and consistent information
• The purchase cycle can be quite long, perhaps
  several years, among durable goods

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Formulating the Promotional Strategy

• With these five building blocks marketers create
  new promotional strategies year after year and
  can be applied to consumer and trade promotions
  local, regional, national, and international
  agendas campaigns for products and services and
  efforts for business services and farm products

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Formulating the Promotional Strategy

• Certain promotional mix elements perform better
  than others in different categories
• Startup companies and those in their growth
  stages, advertising and public relations can
  build awareness
• As the product matures, its potential for
  attracting new customers matures as well, and
  growth peaks

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Formulating the Promotional Strategy

• As the product reaches the declining stage of the
  cycle, to entice retailers and wholesalers to
  stock the product, money is again shifted from
  consumer sales promotion to trade sales promotion
• In the declining stage, personal selling
  complements the trade sales promotions in pushing
  sales of the product as long as possible

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Developing a Unique Creative Strategy

• The Web is able to tell the story of the product,
  and it can react to the impressions or questions
  that the viewer might have after the online
  session
• The process of isolation the unique benefit(s) is
  called setting the unique selling proposition

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Developing a Unique Creative Strategy

• Creativity has been defined as the ability to
  generate fresh, unique, and appropriate ideas
  that can be used as solutions to communications
  problems
• Start with a creative platform that delineates
  the benefits of the product
• This creative platform is transformed into the
  creative strategy, a summary of all significant
  research, consumer attitudes, and client input
  and directives
• From these summary/position lines, the balance of
  the campaign can be rendered into communications
  tools

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Developing a Unique Creative Strategy

• The marketer should remember why the viewer is
  using the Web in search of convenience, quality,
  efficiency, delivery ease, availability, and
  performance.
• In developing the creative direction, the
  marketer should judge the creative solutions as
  objectively as possible
• Requirements should be mandated in communications
  materials
• To include a Web site or e-mail address in all
  advertising and allied materials
• Substantial at creative thought to domain names
  that are immediately recognized as the company
  label
• Consistency should also be in reflection of the
  Web address to a similar e-mail address

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Developing a Unique Creative Strategy

• The way to establish a companys online
  recognition
• First investigate the proposed domain name
  through the interNIC registration site, check on
  the availability of the name, and then proceed
  with the basic identity elements
• Suggestion is that a company needs no more than
  one domain name
• The marketer should inquire with the companys
  ISP to ensure the firms address can accept a
  non-www subdomain
• Just ask the ISP for an alias to the sites DNS
  entry point

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Developing a Unique Creative Strategy

• Appealing to the senses or the stimuli that
  trigger sensory reactions, such as smell, taste,
  touch, sight, and sound, can conjure up
  association with certain product features
• Marketers might consider engaging a new type of
  advertising agency, the interactive advertising
  agency this interaction agency has developed new
  capabilities to conceive and produce new media
  campaigns and materials based on electronic
  vehicles

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Developing a Unique Creative Strategy

• The services of an interactive agency can
  include
• Combining state-of-the-art technology with a
  unique, multidisciplinary approach to business
  and marketing that effectively helps companies
  communicate internally, and inform and sell
  externally
• Provider of communications and business programs
  that integrate strategic counsel with traditional
  marketing disciplines such as product branding
  and advertising as well as advanced technology
  solutions and new media including Internet,
  Extranet, and Intranet development, database
  architecture, and enterprise systems integration

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Developing a Unique Creative Strategy

• The services of an interactive agency can
  include
• Can produce a dynamic page creation to your sites
  with relational databases
• Enables your sites to perform secure electronic
  commerce and integrate personalized technology
  for user customization
• Streaming media expertise allows the client to
  exploit the benefits of Web casting and high
  performance Web servers

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Developing a Unique Creative Strategy

• The services of an interactive agency can
  include
• Office services for the development and
  production of interactive kiosks for retail and
  trade show applications, laptop sales
  presentations, and hybrid CD-ROMs
• Offering international expertise for reaching
  global audiences

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Developing a Unique Creative Strategy

• Staying on top of technology is a fulltime job,
  and giving the technological watch assignments
  to marketing staff members might keep the
  companys marketing environment up to date

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The Components of the Promotional Plan

• Promotional plan is composed of any process
  elements, each a small but important link that on
  completion, should result in meeting corporate
  objectives
• Elements must be identified and scheduled and
  then given consideration as to its role in the
  promotional mix, the message, the media
• Creative themes, careful planning and execution,
  and created direction must be consistent
  throughout the campaign

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The Components of the Promotional Plan

• Elements in a plan for creative development might
  include
• Source selection
• Message selection
• Media channels
•  Objective settings is important in measuring the
  final result of the marketing program

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The Components of the Promotional Plan

• The marketer should define what the online
  communications objectives are to be
• Will the electronic resources support an
  introductory mass media product merchandising
  program?
• Should the electronic marketing resources focus
  on improving database collection and output
  analysis?
• Will the Web site be static or will it be a
  Web-enabled one that can filter and link several
  databases for relational information?

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The Components of the Promotional Plan

• The marketer should extend the marketing plan
  through online media
• Do the online capabilities need to support the
  advertising objectives?
• Sales promotion is a solid method for introducing
  new products.
• Sampling strategies are very important in
  matching the right product to the right prospect
  in the right place.

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The Components of the Promotional Plan

• The marketer should define the sales promotion
  objectives before initiating the sales promotion
  and be able judge whether the sales goals were
  met
• To accelerate sales to new or existing products
• Promotions are directed at consumers, but an
  unspoken goal many times is to placate retailers
  in shopping malls by increasing sales traffic to
  the stores

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The Components of the Promotional Plan

• Sales promotions can fail
• An overpowering sales promotion can be as bad as
  one that flopped
• Too successful, the lack up the toys or
  substituted discounts might disappoint the
  customer and provoked anger at the company,
  accusations of false or misleading advertising
• Unsuccessful sales promotions could lead to
  unpopular promotional merchandise that did not
  appeal to the market and did not sell

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The Components of the Promotional Plan

• Sales promotion events can be very entertaining
• Individuals working in the sales promotion
  department must possess the same type of creative
  minds as those in advertising or product
  development
• Sales promotions can be targeted at internal or
  external audiences
• PR depends heavily on publicly, and publicity can
  be the greatest friend or the greatest enemy to
  an organization

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The Components of the Promotional Plan

• PR should be carefully examined and cautiously
  pursued in generating positive press relations
• What could be the appropriate objectives?
• The marketer should go through the same process
  of segmentation to decide which benefits match
  which segments best

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The Components of the Promotional Plan

• Public relations programs work best at
  proactively influencing rather than quickly
  rushing in a reactive fashion
• The overriding purpose of a public relations plan
  is to keep in touch with attitudes and opinions
  of the various constituencies