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Chapter 10

Integrated 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 audience

Stimulate 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 database Customer and

prospect

information

Professional

information

Geodemograhic

information

Product

information

Transactional

information

Marketing

database

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

List of contact names

Addresses

Telephone numbers

Lifestyle data

Transactional data – type, frequency, value of purchases

Responses 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 sources Company records

Responses to sales promotions

Warranty and guarantee cards

Offering samples that require the customer

to give name, address, telephone number

etc.

Enquiries

Exchanging data with other companies

Sales force records

Application forms e.g. store loyalty cards

Complaints

Previous direct marketing responses

Organised events e.g. wine tastings

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Direct Marketing Applications

Direct Mail

Telemarketing

Distributor management systems

Loyalty marketing

Targeting marketing

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Direct Marketing Methods

Direct Mail

Telemarketing (both in-bound and out bound)

Direct response advertising (coupon response or ‘phone now’)

Catalogue marketing

Digital 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 audience

Marketing strategy

Campaign objectives

Media decisions Creative decisions

Execute and evaluate campaign

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Forms of E-Commerce

B2B

Cosvisnt.com

C2B

Priceline

B2C

Amazon

ITunes

Google

C2C

eBay

Facebook

MySpace

From

Business

From

Consumer

To

Business

To

Consumer

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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

Instantaneous Co-creation

Control Interactivity

Digital

Marketing

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Forms of Digital Marketing

Internet

Marketing Search

advertising

Interactive

television

advertising

Viral

Marketing

Social Media

Marketing

Digital

Marketing

Mobile

Marketing Email

marketing

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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.

The Selling Process Preparation

The opening

Need and problem identification

Presentation and demonstration

Dealing with objections

Closing the sale

The follow up

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Sales Management

Setting objectives

Recruitment and selection

Training

Motivation and compensation

Evaluation of salespeople

Salesforce size

Designing the salesforce

Managing the salesforce

Salesforce organisation

18 Chapter 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 marketing

Digital 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.

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Headquarters in Cupertino,

California, United States

Slogan :

Think different.

Background

Founded: April 1,1976

Founders: Steve Jobs

Steve Wozniak

Ron Wayne

Fiscal 2016 first quarter ended

Quarterly revenue: $75.9 billion

Net income: $18.4 billion

Diluted per share: $3.28

Gross margin: 40.1%

International sales accounted for

the quarterly revenue: 66%

Operating cash flow: $27.5 billion

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2008 - 2012

Present

Apple’s Mission Statement:

“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.”

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Apple’s Vision Statement:

We believe that we are on the face of the earth to make

great products and that’s not changing.

We are constantly focusing on innovating. We believe in the

simple not the complex.

We believe that we need to own and control the primary

technologies behind the products that we make, and

participate only in markets where we can make a significant

contribution.

We believe in saying no to thousands of projects, so that we

can really focus on the few that are truly important and

meaningful to us.

We believe in deep collaboration and cross-pollination of our

groups, which allow us to innovate in a way that others

cannot.

And frankly, we don’t settle for anything less than excellence

in every group in the company, and we have the self- honesty

to admit when we’re wrong and the courage to change.

And I think regardless of who is in what job those values are

so embedded in this company that Apple will do extremely

well.”

Apple Inc’s

Marketing Mix (4P’s)

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Apple’s Products (Product Mix)

1. Mac

2. iPad

3. iPod

4. iPhone

5. Apple TV

6. Apple Watch

7. Software

Steve Jobs& Steve Wozniak

Apple IIc

Apple I

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Apple Lisa

1998

eMac :

2002-2006

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Mac mini 2014

Mac Pro

2006-2009

2013

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2010

Ipad 2

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Apple’s Promotions (Promotional Mix)

1. Advertising

2. Personal Selling

3. Sales Promotion

4. Public Relations

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Distribution or Place in Apple Inc’s Marketing Mix

1. Apple Stores

2. Online Apple Store and App Store

3. Authorized retailers

4. Telecom companies

5. Fulfillment services

Apple’s Prices and Pricing Strategy

Premium pricing strategy

• Relatively high prices

• Helps maintain the high-end image of the company

• Entail higher profit margins