Marketing 4.02 Understand promotional channels used to communicate with targeted audiences.

4.02C Explain the nature of direct marketing channels Direct Marketing: there are no channel intermediaries (retailers, wholesalers) so communication happens directly between the manufacturer and customer. Communication channels used for direct marketing: 1. Inserts in newspapers and magazines 2. Customer care lines 3. Catalogues 4. Coupons 5. Door drops 6. Radio and TV 7. The Internet

Advantages/Disadvantages associated with direct marketing The most effective way to advertise for your business  Direct marketing involves direct business. So it is cost beneficial for consumers, as there is no price hike due to wholesalers or retailers. - Marketing executives can state certainly of the exact response to their products. - The profit or loss can be more accurately judged Disadvantages Sometimes, direct mailing offends the customers and many do not endorse it as they say it inhibits their private lives. Article Source: http://EzineArticles.com/2560926

The Internet Impact on Business E-mail Companies can communicate directly with customers. Sales increase, direct feedback is given Importance of databases to direct marketing Helps you get the most out of your money for advertising and helps you get your name and business out to new customers Should include the address of potential customers and information about the address that is relevant to the product you are offering Should have accurate demographic information No sales tax on the mailing lists purchased Updated weekly

4.02D Identify communications channels used in sales promotion   Terms to know: Free-standing insert: Coupons Rebates Push money Point of sale displays Trade allowances Dealer loaders Contests Sweepstakes Games Loyalty programs Demonstrations Personal app

Differences between advertising and sales promotions Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement. Sales Promotions are short-term incentives to encourage the purchase or sale of a product or service Explain reasons that businesses use sales promotions Attempts to provide added value or incentives as well as stimulate sales

Describe types of consumer sales promotions Coupons Rebates Promotional pricing Trade-in Loyalty programs Sampling/free trials Free products Premiums Contest and sweepstakes: contests are based on skill, sweepstakes are based on luck Demonstrations Personal appearances

Types of trade sales promotions Point-of purchase displays Advertising support programs Short term allowances Sales incentives or push money Promotional products Trade shows

Here are some examples of popular sales promotions activities: (a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you are still in profit - especially if there is a corresponding increase in sales. This is known as a PREMIUM sales promotion tactic. (b) Customer Relationship Management (CRM) incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets. (c) New media - Websites and mobile phones that support a sales promotion. For example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer would enter the code into a dynamic website to see if they had won a prize. Consumers could also text codes via their mobile phones to the same effect.

Here are some examples of popular sales promotions activities: (d) Merchandising additions such as dump bins, point-of-sale materials and product demonstrations. (e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich purchase. Once the card was full the consumer was given a free sandwich. (f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers with the latest low-price deals once new flights are released, or additional destinations are announced. (g) Joint promotions between brands owned by a company, or with another company's brands. For example fast food restaurants often run sales promotions where toys, relating to a specific movie release, are given away with promoted meals.

Here are some examples of popular sales promotions activities: (h)  Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential consumers at supermarkets, in high streets and at petrol stations (by a promotions team). (i) Vouchers and coupons, often seen in newspapers and magazines, on packs. (j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The Internet, and on packs. (k) Cause-related and fair-trade products that raise money for charities, and the less well off farmers and producers, are becoming more popular. (l) Finance deals - for example, 0% finance over 3 years on selected vehicles http://www.marketingteacher.com/lesson-store/lesson-sales-promotion.html

Types of point-of-purchase displays that are used in sales promotion Allow products to be prominently presented, often in high traffic areas, increasing the probability it will stand out Stand alone displays

Similarities and differences between coupons and rebates Both provide a discount to customers May reward customers for their loyalty Coupons are redeemed at the point of purchase, while rebates must be submitted and sent to the customer

Push and pull sales promotion strategies Push sales promotions: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, premiums Pull sales promotions: samples, coupons, cash refunds, rebates, loyalty programs, contests, sweepstakes, POP

Compare contests, sweepstakes, games Contests are special promotions awarding value to winners based on skill they demonstrate compared to others Sweepstakes are not skill based, but based on luck. Winners are determined by random selection Games come in a variety of formats, such as scratch-off cards and collection of game pieces. To participate in games, customers may be required to make a purchase

Trends in sales promotions Marketers need to balance the advantages short-term promotions offer versus the potential to erode loyalty to the product Customer expectations Electronic deliver Tracking Internet Communication Clutter http://www.knowthis.com/principles-of-marketing-tutorials/sales-promotion/sales-promotion-trends-clutter/

4.02E Explain communications channels used in public-relations activities The role of public relations in business •building awareness and a favorable image for a company or client within stories and articles found in relevant media outlets •closely monitoring numerous media channels for public comment about a company and its products •managing crises that threaten company or product image •building goodwill among an organization’s target market through community, philanthropic and special programs and events

Advantages and disadvantages associated with public relations Considered a highly credible form of promotion Can result in the target market being exposed to more detailed information than they receive with other forms of promotion Can be widely spread Very low cost Disadvantages Marketers do not have direct control over whether a message is delivered and where it is placed for delivery The news media may not give the exact message as planned by the marketer May not yield a high return on promotional expense if the news media feels there is little value to the story Could get “bumped” from media coverage for a more critical breaking news story

Tools used in public relations to communicate with targeted audiences and the media Media relations Media tours Newsletters Special events Speaking engagements Sponsorships Employee relations Community relations and Philanthrophy

Reasons that public relations specialists monitor markets watching what is written and reported in traditional print and broadcast media keeping an eye on discussions occurring through various Internet outlets such as forums, chat rooms, blogs and other public messaging areas. Marketers must be prepared to respond quickly to erroneous information and negative opinions about products as it can spin out of control very quickly through the new technology channels. Failure to correct misinformation can be devastating to a product or company’s reputation.

Purpose of crisis management in public relations To respond quickly to negative information about the company. marketers can track the issues and respond in a timely fashion. To manage response effectively, many companies have crises management plans in place that outline steps to take and company spokespeople to speak on behalf of the company should an event occur.

Trends in public relations Blogs Podcasting Search engine optimization   Use of blogs for public relations activities Report in-house blogs that report the happenings at the company Allows company employees to post messages updating the company developments

Use of web forums in public relations activities Web forums are where people can post their opinion often anonymously. Helps build credibility for an organization as forum members recognize a company’s effort to reach out to the public. Forums can cause major problems as a breeding ground for rumor and accusation.

How RSS feed can be used for public relations activities Really Simple Syndication -this technology makes it easy for people to know when new content is posted to a website. The nature of the technology allows anyone who links to the RSS feed to instantly receive details of the content. Many journalists and other media members are finding this to be a more convenient way to acquire information, particularly if they follow a specific industry and can identify specific information websites to monitor. By subscribing to relevant RSS feeds they have information delivered rather than spending time searching

Use of podcasting for public relations activities Quick and easy way to send out audio news releases and other promotional material How search engine optimization can be used for public relations activities Helps third party media outlets (search engines) to mention the company at no direct cost to the company Can work to influence results in search engines