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Chapter 10Integrated Marketing

Communications 2: Direct Communications Techniques

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Database marketing is defined as… …an interactive approach to marketing that

uses individually addressable marketing media and channels (such as mail, telephone and sales force) to:

Provide information to target audienceStimulate demand Stay close to customers by recording and storing an electronic database of customer, prospects and all communications and transactional data.

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A Marketing databaseCustomer and

prospectinformation

Customer and prospect

information

Professionalinformation

Professionalinformation

Geodemograhicinformation

GeodemograhicinformationProduct

information

Productinformation

Transactionalinformation

Transactionalinformation

Marketing database

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A Marketing database is an…..“electronic filing cabinet” containing:

List of contact namesAddressesTelephone numbersLifestyle dataTransactional data – type, frequency, value of purchasesResponses to promotional offers

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Bring a Friend

A wide variety of businesses such as apparel retailers, gyms

and educational establishments run ‘bring a friend’ promotions

as a way of growing their potential database of customers

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Database sourcesCompany recordsResponses to sales promotionsWarranty and guarantee cardsOffering samples that require the customer

to give name, address, telephone number etc.

EnquiriesExchanging data with other companiesSales force recordsApplication forms e.g. store loyalty cardsComplaintsPrevious direct marketing responsesOrganised events e.g. wine tastings

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Direct Marketing Applications

Direct MailTelemarketingDistributor management systemsLoyalty marketingTargeting marketing

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Direct Marketing Methods

Direct MailTelemarketing (both in-bound and out bound)Direct response advertising (coupon response or ‘phone now’)Catalogue marketingDigital media (Internet, email, interactive T.V.)Inserts (leaflets in magazines)Door-to-door leafleting

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Managing a Direct Marketing Campaign

Identify and understand target audienceIdentify and understand target audience

Marketing strategy

Campaign objectives

Media decisions Creative decisions

Execute and evaluate campaign

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Forms of E-Commerce

B2B Cosvisnt.com

C2BPriceline

B2CAmazonITunesGoogle

C2CeBay

FacebookMySpace

FromBusiness

FromConsumer

ToBusiness

ToConsumer

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Pantene

A highly emotional advertisement for Pantene shampoo made in Thailand

became a huge YouTube hit

Unique Features of Digital Marketing

Identification

InstantaneousCo-creation

Control Interactivity

Digital Marketing

Forms of Digital Marketing InternetMarketing Search

advertisingInteractive television advertising

Viral Marketing

Social MediaMarketing

Digital Marketing

Mobile Marketing

Emailmarketing

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Will it Blend

The Blendtec ‘Will It Blend’ series has been a hugely popular

viral marketing campaign running since 2006 and has

currently generated over 100 million hits

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Buzz Marketing is defined as…‘…the passing of information about products and services by verbal or electronic means in an informal, person-to-person manner’.

The first step in a buzz marketing campaign involves identifying and targeting alphas (the trendsetters who adopt ideas early) and the bees (the early adopters). Brand awareness then passes from these customers to others who seek to emulate the trendsetters.

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The Selling ProcessPreparation

Preparation

The openingThe opening

Need and problem identificationNeed and problem identification

Presentation and demonstrationPresentation and demonstration

Dealing with objectionsDealing with objections

Closing the saleClosing the sale

The follow upThe follow up

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Sales Management

Salesforce size

Designing the salesforce

Managing the salesforce

Salesforce organisation

18Chapter Summary The marketing database is the foundation on which direct marketing campaigns are built.Customer relationship management (CRM) is a development from database marketing and makes use of technology to build and foster business relationships with customers. Direct marketing is where consumers are precisely targeted through a variety of different techniques including direct mail, telemarketing, mobile marketing, direct response advertising and catalogue marketingDigital marketing continues to grow rapidly. It has five main characteristics, namely, easy identification of targets, interactivity, instantaneous communications, consumer control and co-creation of outputs. There are seven major forms of digital marketing , namely, Internet marketing, search advertising, email marketing, social media marketing, viral marketing, mobile marketing and interactive television advertising. Buzz marketing is an emerging marketing tool that capitalizes on the importance of word-of-mouth promotion. Greater global electronic connectivity has fostered the rise of buzz marketing. Personal selling plays an important role in the marketing mix.