Direct marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships: the use of direct mail, the telephone, direct-response television, e-mail, the Internet, and other tools to communicate directly with specific consumers.Communication, Policy, AdvertisingPromo Mix: Customer Value and Building RelationshipsIntegrated Marketing Communications (IMC) Clear, Consistent, Compelling* customers are changing•The changing face of communication:1.Changing consumers2.Changing marketing strategies3.Technology4.IMC•Characteristics of integrated marketing communications:–Consistency across all contact points–Integration across all forms of communicationevery touch point is meaningful whether good or bad**Elements in the communication Process:Sender: Always has a messageEncoding: thought into symbolic formMessage: set of transmitted symbolsDecoding: Media..radio..TvResponseFeedbackNoise-anything that distracts from the signalDistortion: receives message different from original6 States of buyer Readiness:1. Awareness2.knowledge3.liking4. preference5.conviction6.purchase•Targets can have many qualities:–Potential or current buyers?–Buyers or influencers?Individuals or groups?Attention Interest Desire Action (AIDA)Get, hold, arouse, obtain3 Appeals ** Rationality, Emotional, MoralsMessageContent: what to sayStructure: what to say logicallyFormat: how to say it symbolically, audience ?Dominos: rationalSuperbowl: emotionalPersonal Communication: 2 way dialogue 2 or more ppl comm. directlyControlled vs. Uncontrolled – word of mouthNon-personal Comm. Channel:Media & message w/out personal contact or feedback-Print, broadcast, display, website, atmospheresMessage Credibility, source issueExpertiseTrustworthinessLikeability most important•Living personalities as spokespeople__________________________________________________________________________________________•Final step: Measure the results–Ask how consumers felt about the message•Promotions budget is divided among several major promotional tools:–This is the promotional mix•Promotional tools include:–Advertising–Personal selling–Sales promotion–Public relations–Direct marketingPreferenceConvictionPurchaseAdv. ObjectivesInformative: new product or existing to newReminder: when mature repeatingPersuasive: when competition increases•Three types of sales promotion:–Consumer promotion:•Incentivizes customers–Trade promotion buying allowances:•Incentivizes downstream channel partners–Sales force promotion:Incentivizes sales employeesConsumer promotion tools:–Coupons–Samples for customers–Samples for staff–Package promotions–Premium offerings–Patronage rewards–POP promotions–Contests, sweepstakes, gamesSales Promotion ToolsTrade promotions:–Free goods–Cooperative advertising–Push moneySales force promotions:–Bonuses–Contests•Pretesting: Will it work?–70% of companies do not do this despite the relatively low cost•Implementation: Identify lead time and sell-off time•Evaluate the results: Despite many useful methods, companies rarely do this–Sales comparisons–Recall rateWednesday November 13Direct MarketingCRM - Customer Relationship Management (KNOW THIS FOR TEST)Direct Marketing - consists of connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationshipsDatabase - An organized collection of comprehensive data about individual customers or prospectsConsumer database data:-Demographics-Psychographics-Buying Behavior (RFM) Recency Frequency Monetary ValueB2B database data:-Previous purchases, volumes, and prices paid-Competing Suppliers-Current Contract Status-Estimated Spending for next yearCustomer Value-Binding ApproachesFinancial, Social, StructuralWhat is the most effective at building customer loyalty but the most difficult to implement. Structural TiesTraditional Forms of Marketing:KioskDirect MailTelephoningBusiness to consumer marketing:selling goods and services to final customersOnline Marketing Domains:•Business to consumer (B2C): selling goods and service to final customers–Internet sales vs. “brick and mortal” sales markets•Business to Business (B2B): selling goods and service to other businesses–Offerings: product info, customer purchasing/support options–Media: web sites, e-mail, online catalogs/trading networks•Consumer to Consumer (C2C): consumers providing marketing info to each other–Blogs–Independent review sites–“Word of Web”•Consumer to Business (C2B): consumers initiating the marketing contact with businesses–Company websites–PlanetFeedbackOnline Promotions•Forms of online advertising:–Banners–Pop-ups–Popunders–Search-related ads•Viral marketing:–Internet version of word of mouth–Advantages: credibility, cheap–Disadvantages: Difficult to controlSocial Networks•Online communities opportunities for marketers:–Participating in Web communities–Starting a web-community•Social media marketing:–Offering products for sale via social media sites–Providing avenues for marketing media dissemination through individual networksTourism: Processes, Activities, OutcomesTOP 3 Destinations In the World:France, US, Spain Inbound VisitationDestination Marketing Organizations: (DMO)Convention Visitors Bureau ( CVB)DMO Tally – VisitTallahasseeDmo’s do not manage destinationsBenefits of tourism: secondary – support industries professions**MULTIPLIER EFFECT**Results from tourism dollars being spentHow often tourism dollars are re-spentHigh marginal propensity to consume**Balance-of-Payment Effects **(X-M) Exports – Imports trade balance*Tourism : is an invisible EXPORT **Triple Bottom Line *:EconomicEnvironmentalCultural –most important now•Issues to consider:–Carbon expenses–Imposition of Western values–Allocation of profit–Is tourism a right?Psychological Determinants : read 3 pagesPsychocentricsDependable:do not desire changefamiliar surroundingsnon-threatening placesAllocentricVenturer:Not familiar placesNew culturesPeople and destinations start as ALLOCENTRICDestination Image•The prevailing perceptions of a destination as experienced by actual and/or potential visitors• Cognitive image: beliefs or knowledge about a destination’s attributes: weather, transportation, accommodations, etc.•
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