©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 7 MARKETING

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing has Exploded WHY HAS BEEN SO SUCCESSFUL? Over Fifty Percent of Consumers Begin Their Day With ; Business Professionals also do!

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. VS. DIRECT MAIL 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. DISADVANTAGES OF THE INTERNET AS A MARKETING TOOL Difficult to Control Limited Audience/Consumer Types Driven by The End User Lack of Technical Support

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ADVANTAGES OF Creates A True 1 to 1 Channel Can be used by any marketer Cost-Effective Can Be Personalized Well-Suited to Retention Campaigns Measurable (like any good Direct Marketing Technique) It’s Everywhere Direct and Indirect Reach (Forwarding) 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HAS EVOLVED FROM BEGINNING THROUGH PRESENT: BROADCAST, PERMISSION, ENGAGEMENT 6

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Scott’s Turf Builder Geo-demographic (Climate Zone) Targeting and Integration with Social Media Leads to Success

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Collect Addresses from visitors to Social Media Site Verify PermissionSend Permission-based Use Ongoing Communications to Develop Relationships Enhance Relationship through Customer Dialogue Figure 7.3: Integrating and Social Media

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. DREAMFIELDS PASTA Increased Sales Decreased Marketing Budget Integrated with Social Media Reached both Consumers and Health Professionals 9

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WHAT IS PERMISSION MARKETING? Anticipated People expect to receive your s Personal is sent to that person only Relevant Content pertains to the recipient’s interests

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PERMISSION IS “ANTI-SPAM” + Permission From spam to effective direct marketing

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. THE HIGHEST RESPONSE RATE WILL MOST LIKELY BE OBTAINED THRU THE FOLLOWING LIST A.A list purchased from a list broker B.A permission-based list of the company’s own customers C.A list compiled off an existing web site

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. INCREASING LEVELS OF PERMISSION 13 Double opt- in Confirmed opt-in Opt-in Opt-out

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. TYPES OF S Newsletters Customer Service Announcements Promotions New Product Announcements Alerts and Reminders Promotion and Advertisings

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. DEVELOPING AN MARKETING CAMPAIGN 15

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MARKETING MUST BE PLANNED 16

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SERVICE PROVIDERS CAN HELP

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WAYS TO IMPROVE THE MESSAGE

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. KEEP IT “ABOVE THE FOLD”

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. REMEMBER TO USE THE PRE- HEADER, A GOOD OFFER AND TIME DEADLINE

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MEASURING RESPONSE Click-Through Rate-Number of offers clicked on divided by number opened Click to Purchase Rate-Number of purchases on divided by number of s opened Open Rate-Number of offers opened divided by number delivered 21

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. DELIVERABILITY Bounce Rate: Undeliverable addresses as percent of total Hard Bounce: Undeliverable because of bad address Soft Bounce: Unable to deliver because of system or other issues 22

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CALCULATING EFFECTIVENESS 23

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. TARGETING, PERSONALIZATION AND CUSOTMIZATION 24 Targeting refers to directing marketing communications to individuals or businesses that have been identified as valid prospects for acquisition or retention for the good or service. Personalization involves the creation of specialized content for a prospect/customer with a known profile Customization is the creation of new content, services, or even products based on the needs and wants of an individual

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GOLDEN R’S OF MARKETING Relevance What does it mean to me? Respect Is my data used responsibly? Recipient Control Do I have a choice over how my data is used?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CAN-SPAM ACT COMPLIANCE Applies to Acquisitional or Promotional s Valid ‘from’ address, valid reply Street address Unsubscribe Label as ‘advertising’

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

WHAT’S WRONG? SUBJECT LINE: PRIVATE MESSAGE FROM AMAZON.COM ACCOUNTS MANAGEMENT

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARY is Pervasive: Newsletters, Alerts, Other Communications Consumers Start Their Day with Message Timing Increases Response Personalization, Short Subject Lines Can Help Acquisition without Permission is Risky Customer Retention Marketing is Appropriate Use Spam is a Threat to Marketing Good List, Permission are Key Integration with Other Communications Channels, i.e. Social Media, increases effectiveness CAN-SPAM Compliance Critical Campaign Management Can Increase Effectiveness 29

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30