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IMC

IMC ,

The Internet Picture


Senders
Advertisers

Internet

Receivers
Users

Sponsors

Internet

Shoppers

e-Commerce Merchants

Customers

Internet Communications Objectives


To create awareness To generate interest To disseminate information To create an image To create a strong brand To stimulate trial

Internet Advertising
Sponsorship
Ownership of an entire site or page

Banner Ads
A portion of another owners page

Pop-Ups
Small windows that appear automatically

Interstitial
Ads appearing while waiting for a page to load

Push Technologies or Webcasting


Automatic or unsolicited message delivery

Links
Hypertext links to other sites, pages or locations

Personal Selling on the Internet


May replace personal selling
Reduces high cost of personal calls Vastly increases potential reach

May enhance personal selling efforts


Provides quick, easy, information to prospects May be a source of leads May help to enhance customer data bases May stimulate trial of the goods or service May improve one-on-one communications May serve as a sales conference medium

Sales Promotion on the Internet


Offering consumers special incentives via the internet to encourage trial, repeat purchase, or customer loyalty

Distribution of samples, coupons Ability to enter contests, sweepstakes Premium offers Loyalty programs

Public Relations on the Internet


Internet as a medium for conducting PR
Media relations websites Dissemination of customized information Provision of information on the company and its products Philanthropic activities

Internet Direct Marketing


Direct Mail
Highly targeted Relies on e-mail lists Attempts to reach those with specific needs Often used by catalogers

Marketing Databases on the Net


Companies build or acquire a database The database is sold to subscribers Delivery may be on- or off-line

Internet Direct Marketing


Infomercials
Program content similar to television, cable or satellite Web provides for greater audience interaction

E-Commerce
Rapid growth rates likely to continue CDs, books, travel are main categories Clothing, cars, financial services are all gaining ground

Measures of Effectiveness
Online Measuring
Data on demographics, psychographics, location of access, media used, buying habits, and more.

Recall and Retention


Daily user interviews to measure recall and retention of web content viewed

Nonresponse
Measures of destination after failure to click-through

Surveys
On- and off-line surveys to determine usage factors

Panels
Usage and attitude data obtained from a specific group

Sales
Sales volume keyed to specific times and sites

Tracking
Accumulation of site performance data

Internet Advantages
Target Marketing Message Tailoring Interactive Capabilities Information Access Sales Potential Creativity Exposure Speed

Internet Disadvantages
Measurement problems Audience characteristics Web snarl Clutter Potential for deception Costs Limited production quality Poor reach

, , , , , .


, , .. Promotion allowances Merchandise allowances Price deals Sales contests Trade shows

Coupons Sampling Premiums Rebates 9.99 Sweepstakes

Sales Promotion
A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.

An extra incentive to buy

An acceleration tool for sales


An inducement to intermediaries Targeted to different parties sales personnel, etc.

Sales Promotion Vehicles


Consumer-Oriented
Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus packs Price-off deals Frequency programs Event marketing

Trade-Oriented
Contests, dealer incentives Trade allowances Point-of-purchase displays Training programs Trade shows

Cooperative advertising

Reasons for Increase in Sales Promotion


Growing Power of Retailers Declining Brand Loyalty Increased Promotional Sensitivity Brand Proliferation Fragmentation of Consumer Markets Short-Term Focus sales every quarter Increased Accountability Competition Clutter

Sales Promotion Uses


Introduce new products by encouraging trial and repurchase Get existing customers to buy more Attract new customers Defend current customers Maintain sales in off season Target a specific market segment

Enhance IMC efforts and build brand equity

Objectives of Consumer-Oriented Sales Promotion


To Obtain Trial and Repurchase To Increase Consumption of an Established Brand To Defend (Maintain) Current Customers

To Target a Specific Segment


Enhance IMC programs and build brand equity

Sampling

Providing consumer with some quantity of a product for no charge - to induce trial

Sampling works best when: The products are of relatively low unit value, so that samples dont cost much The purchase cycle is relatively short so the consumer can purchase in a relatively short time period The products are divisible and can be broken into small sizes that can reflect the products features and benefits

Sampling Methods
Door-to-door Direct mail In-store sampling Cross-product sampling With newspaper or magazine Through the internet

Advantages and Limitations of Coupons


Advantages: Disadvantages
Difficult to determine how many consumers will use coupons and when Coupons are often used by loyal consumers who may purchase anyway Declining redemption rates and high costs of couponing Misredemption and fraud Appeal to price sensitive consumer Can offer price break without retailers coop Can be effective way to induce trial of new or existing products Can be way to defend market share and encourage repurchase

Coupon Fraud
Consumers redeem without purchase Clerks and staff exchange for cash Managers/owners redeem without sale Criminals collect or counterfeit and sell

Coupon Trends
Major companies cutting back on use of coupons Searching for more effective coupon techniques More use of internet for distribution

Premiums
Premium an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers

Two types of premiums:


Free premiums only require purchase of the product

Self-liquidating premiums

require consumer to pay some or all of the cost of the premium

Contests and Sweepstakes


Contest a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria

Sweepstakes/games a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are determined by random selection from the pool of entries or generation of a number to match those held by game entrants.

Other Popular Consumer Sales Promotion Tools


Refunds and Rebates Bonus Packs Price-off deals

Frequency/loyalty programs
Event marketing

Promotion Targeted to Reseller Salespeople


Product or program sales
Selling a specific number of cases Selling a specific number of units Selling a specific number of promotional programs

New account placements


Number of new accounts opened Number of new accounts ordering a minimum amount Promotional programs placed in new accounts

Merchandising efforts
Establishing promotional programs Placing display racks, counter and other p-o-p displays

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