Retail Promotion Test #3

Financial Incentives (e-commerce)

-Can persuade an individual or business to make that first -Most effective financial incentives are reduced prices, free shipping and e-coupons. -Incentives must be meaningful and to generate return traffic to the site it needs to be changed periodically.

Why are coupons used?

-Customers expect them -Competitors use them so companies have to use them to keep competitors from taking sales away. -Retailers expect them so it will pull customers into the store.

Web 3.0

Ex. Individuals searching on a site for hiking supplies found that next time they logged onto that site hiking-related supplies were promoted prominently on that site - content driven by online metrics - integration of content and communications - instant real-time communications

Web 2.0

Facebook, MySpace, Blogs emerged. - e-commerce expanded greatly - content is socially-based and audience generated

Data warehouse

Holds all of the customer data which is then split into either operational or marketing databases.

Database marketing emphasizes 2 things, what are they?

Identifying customers and building relationships with them

Types of coupons

Instant, in-or-on the package, bounce-back

In terms of the video game market, females:

Offer an attractive and growing market

Blogs

Online musings that cover a wide range of topics. The power of a blog comes from the new landscape it creates in which one consumer dissatisfied with a particular brand can now tell thousands or millions of others.

In-or-on the package

Premium. Usually a small gifts, such as toys in cereal boxes, that may be disguised so they customer must buy the product in order to see the premium. Also, may be attached to the packages, such as a package of blades with the purchase of a razor.

Relationship Selling

Seeks to create a customer for life, not for a single transaction.

Sales Promotion

Set of marketing activities undertaken to boost sales of the product or service. Stimulation of sales achieved through contests, demonstrations, discounts, exhibitions or trade shows, games, giveaways, point-of-sale displays and merchandising, special offers, and similar activities.

Instant coupons

The customer can instantly redeem the coupon at the store. Often lead to trial purchases or the purchase of additional packages of the product.

Internet Marketing

also called online marketing, refers to advertising and marketing efforts that use the Web and email to drive direct sales via electronic commerce

Product placement and branded entertainment is?

an alternative marketing method designed to make an impression on people without it looking like advertising.

Branded Entertainment

imbed brands into a storyline

Web 4.0

- customer engagement - cloud operating systems - web participation necessity -(the focus is on being customer-centric with opportunities for engagement and communication)

CRM (customer relationship management)

-Allows companies to use databases to customize products and communications to meet the needs of individual customers and to enhance their relationship with the company, with the goals of higher sales and profits. -Many CRM programs fail -Built on two primary metrics: lifetime value and share of customer

Frequency Programs

-Also called loyalty programs -offer consumers free merchandise or discounts for a series of purchases -encourages repeat purchases -airlines and grocery stores are most well known for this

How do companies use email to attract business?

-As advertisement and direct mail messages. -Some websites require to put in email in order to shop on their website. -E-mail newsletters help create brand awareness, drive traffic to website, and spur sales. -it can be easily integrated with other channels of communication. -It can resemble information that is posted on the Web site.

Channel Integration

-Essential when a business sells through additional channels beyond the web. -A company that offers a printed catalog or has a retail store should match the printed catalog with its Web catalog. -The program saves considerable time in trying to find and buy a product on the web.

3 incentives to encourage people to visits a website and before purchasing

-Financial -Convenient -Value added

Brand Engagement

-Involvement in social causes that involve customers creates_______. -Blogs, feedback applications, and customer reviews allow customers to interact with the website. -customers become brand advocates and provide company with insights into customer thoughts and lifestyles personalization and customization

Lifestyle Marketing

-Involves identifying marketing methods associated with the hobbies and entertainment venues of the target audience. -Contacting consumers where they go for relaxation, excitement, socialization and employment. Ex. Contacting customers at places such as farmer's markets, bluegrass festivals, flea markets, craft shows, stock car races, etc.

E-commerce

-Selling goods and services on the internet- -consists of click-only operations that sell exclusively online and bricks-and-clicks that operate both a retail store and are online. -online sales account for 8% total retail activity services are offered, deals are mediated , and products are shipped

Experiential Marketing

-The intersection of direct marketing, field marketing, and sales promotions into a single customer experience. -its basic premise is increasing the experience of direct marketing through an interactive connection - Such as special events and free samples -- seeks to engage customers with the brand, rather than just provide a free sample.

Geocoding

-The process of adding geographic codes to each customer's record so the customer addresses can be plotted on a map -- helps decision makers finalize placement of retail outlets and directs marketing materials to specific geographic area. -allows for adding demographic and psychographic information to the customer's record.

Brand Communities

-The ultimate demonstration of brand loyalty and brand devotion. -it offers a symbolic meaning and provides for interaction between the brand, consumers, and companies that participate. (Ex: Jeep, Apple, and Harley Davidson) - People join because they have shared values and experiences. -communities cannot be created by brands or companies

Buzz Marketing

-Word-of-mouth marketing- -emphasizes consumers passing along information about a product=higher credibility -fast growth- now $1 billion annually -methods of generating buzz marketing: consumers who use and truly like a brand, consumers who are sponsored to talk about a brand, and a company or agency generating buzz.

Product Placement

-a planned insertion of a brand or product into a movie, TV show, or program that serves the purpose of influencing viewers. -product placement increases awareness of the brand, creates a more positive attitude towards the brand, but does not have any immediate impact on sales

Why are companies using video game advertising more frequently?

-attractive market -Game just as enjoyable with ads -Increases brand recall -Produces positive brand associations

What is Database Coding?

-critical information for the development of personalized communications. -also assist in creating marketing campaigns -common forms are lifetime value analysis and customer clusters

Guerilla Marketing

-designed to bring instant results with low-cost, unique marketing methods. -focuses on a region or area and involves interacting with consumers in a unique and different way -goal is to create excitement and to generate buzz

Value-Added Incentives (e-commerce)

-encourage customers to come back to an e-commerce site, and change purchasing habits long-term -things that customers value. For example, personalized shopping and customization of the Web site -Some examples: merchandise available only online, combination of incentives, and free information.

Trade Promotions

-incentives given to channel members to push products through the channel. -Deal between retailer and manufacturer; determines what products are going to be on the shelves, etc. -consumers never see trade promotions but they have a huge impact on what brands are placed on shelves. - Account for 70% of marketing budget -Often 2nd largest expense

Data Mining

-involves using computer data analysis software to mine data for meaningful information and relationships. -used to build profiles of customer groups - used to prepare models that will aid in predicting future purchase behavior

Direct Response Marketing

-is the targeting of goods and services to customers without the use of other channels of distribution -60% is to prospects to encourage a first purchase - 40% is for customer retention and to encourage repeat purchases -customers respond using: phone, email, store or PURL

Convenience Incentives (e-commerce)

-makes the online shopping experience easier and encourages return visits -e-commerce is available 24/7 -it is important to have product information online so consumers can conduct research anytime -The key to convenience incentives is making things easier and quicker to do.

Database driven marketing programs include:

-permission programs -frequency programs -CRM

Disadvantages of coupons

-reduced revenues -80% used by brand preference consumers -necessary evil

Permission Programs

-sends materials to only individuals who give permission -Giving e-mail address online to be notified/accepting info when signing onto a company's Wi-Fi -generates a higher response rate

Sampling

-the delivery of a free good or service with the hope the person or business will like the brand and purchase it on the next trip or the next time the product is needed. -Businesses use this extensively to encourage prospects to try the brand and compare it to the brand they are currently using. -used to introduce new products, generate interest, generate leads, collect information, internet sampling, and boost sales.

Creating Experiential Marketing requires 3 steps

1. Clear, concise target segment 2. Identify right time, right place -Engage emotionally -Engage logically 3. Clearly reveal brand's promise

Web 1.0

1990's, Little customer involvement on websites. Crude, simple, and designed to accomplish one specific function. - Static content provided by creator - dominated by institutions and businesses - commercially and technically based

Slotting Fees

A fee charged by a retailer in exchange for stocking a particular product or displaying it in a special location.

Cyberbait

A lure or attraction that brings people to the web site. Internet based promotion through websites, banners, email, etc.

Consumer Promotions

Activities intended to advertise a product and increase sales to customers

Word of mouth marketing is also known as:

Buzz marketing

digital marketing

Combines all the components of e-commerce, Internet marketing, and mobile marketing. Includes anything with a digital footprint.

Bounce-Back

Coupons that are placed inside packages so that customers cannot redeem them quite as quickly. This encourages repeat purchases.

Free Standing Inserts (FSI)

coupons that you might find stuffed with the newspaper

Why would a business want to cluster their customers?

To reduce advertising costs and make ads more effective for the specific market they company is aiming to reach

Database marketing:

involves collecting and utilizing customer data for the purpose of enhancing interactions with customers and developing customer loyalty

Mobile Marketing

the interactive multichannel promotion of products or services for mobile phones and devices, smartphones and networks. Types of mobile marketing: display ads, search ads, video advertising, text messages, QR codes, etc.