advertising, pr, selling 15.823 internet marketing prof. glen l. urban spring 2001
TRANSCRIPT
![Page 1: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/1.jpg)
ADVERTISING, PR, SELLING
15.823 Internet marketing
Prof. Glen L. Urban
Spring 2001
![Page 2: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/2.jpg)
OUTLINE
• Historical Perspective
• Advertising Copy
• How Much to Spend on Advertising
• Acquisition/Retention Modeling
• Role of PR and Selling
![Page 3: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/3.jpg)
HISTORICAL PERSPECTIVE• TV Model 1950’s• 1960s - 80s -- Stable Media Mix• 1990’s
– Interactive TV– Internet Banners– Push Marketing
• Internet 2000 – Eye Ball Race -- Print/TV/Banners– Click Through Rates Down– Personalized Ads -- Streaming Video
• Current - 2001– Multi-Channel– Customer Life Time Value– Rich Media
![Page 4: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/4.jpg)
![Page 5: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/5.jpg)
![Page 6: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/6.jpg)
ADVERTISING COPY
![Page 7: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/7.jpg)
HOW MUCH SHOULD YOUSPEND ON ADVERTISING?
![Page 8: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/8.jpg)
APPROACHES
• All You Can Afford• Match Competition• Sales Goal - Short Run - Long Run Share• Profit (Loss Goal)• Reach and Frequency Goals• Response - Sales/Profits
-functions
-flow model
![Page 9: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/9.jpg)
RESPONSE ANALYSIS
Ask what you are getting for your $
Marginal response -- profit
-- sales
-- customer acquisition
![Page 10: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/10.jpg)
Slide
#1
SIMPLE FLOW MODEL
AWARE
VISIT SITE
BUY
LOYALTY
UNAWARE
.33
.33
.03
.75
![Page 11: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/11.jpg)
MODEL EXTENSIONS
• Depth of Repeat
• Multi-period
• Competition
• Additional Variables
![Page 12: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/12.jpg)
SALES
REVENUE
PROFIT BEFORE
ADVERTISING
PROFIT AFTER
ADVERTISING
ADVERTISING
SALES RESPONSE -- MAXIMIZE PROFIT
DO
LL
AR
S
![Page 13: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/13.jpg)
DO
LL
AR
S
WHAT WE KNOWADVERTISING
SALES
PROFIT AFTER ADVERTISING
PROFIT BEFORE ADVERTISING
*
*
*
A0
![Page 14: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/14.jpg)
ESTIMATION
JUDGMENT
STATISTICS - Sale History
- Nielsen
- Click Stream
EXPERIMENTATION
![Page 15: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/15.jpg)
PERSONAL SELLING
![Page 16: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/16.jpg)
ROLE OF SELLING
• Still need
• Complex System Design
• Big price
• B2B
• Communication Mix
![Page 17: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/17.jpg)
FUNCTIONAL SUBSTITUTION
AWARENESS
PERCEPTION
PREFERENCE
PURCHASE
SELLING
ADVERTISING ADVERTISING
SELLING
SELLING
![Page 18: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/18.jpg)
NEW METHODS
AWARENESS
PERCEPTION
PREFERENCE
PURCHASE
TELEMARKETINGADVERTISING
SELLING SELLING
TELEMARKETING
TELEMARKETING
INTERNET
SELLING
![Page 19: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/19.jpg)
NEW METHODS
AWARENESS
PERCEPTION
PREFERENCE
PURCHASE
TELEMARKETINGADVERTISING
SELLING SELLING
TELEMARKETING
![Page 20: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/20.jpg)
NEW METHODS
AWARENESS
PERCEPTION
PREFERENCE
PURCHASE
PR
INTERNET
SELLING
TELEMARKETING
![Page 21: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/21.jpg)
PR
• “Free” ads
- actually many pay
- invest in PR (“marketing”) staff
• Believability
• Word of Mouth Transfer -- Community
![Page 22: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/22.jpg)
INTEGRATION
• Behavioral Flow Model
• CLTV Model
![Page 23: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/23.jpg)
Traditional
Media Reach Frequency
Media Spending
Copy
Copy
Copy
Store
Store
Pick up
Return
Flow Internet Feature
Strategy/Data Mining
Browse WOM – PR
Visit site Entertaining/Easy to use site Dialogue Personalization
Information Fair / Compete Education
Personal Comparison
Advisor Configuration
800/email advise Overcome objections EOffer Trust
Overlay Channel Mail / Home Delivery
WOM -- opinions Relationship Service
AWARE
UNAWARE
INTEREST
KNOWLEDGE
ATTITUDE
PREFERENCE
CONFIDENCE
PURCHASE
USE / LOYALTY
![Page 24: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/24.jpg)
IMPLICATIONS
• Advertising Goals (budget & copy)
• Will Increasingly Become Response
• Acquisition Modeling and Loyalty
• Communication Mix
- advertising / PR
- multi-channel selling
![Page 25: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/25.jpg)
![Page 26: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/26.jpg)
ILLUSTRATIVE EXAMPLE
SIZE OF MARKET 10,000
NUMBER OF SEGMENTS 5
PRICE OF PRODUCT $ 16,000
CONTRIBUTION MARGIN $ 5,000
FIXED COST $750,000
COSTS ONE AD $ 30,000
COST OF PERSONAL VISIT $ 125
COSTS OF ONE TELESELL $ 37.50
ADVERTISING REACH 1 AD .1
10 ADS .65
FRACTION READ AD .5
![Page 27: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/27.jpg)
MODEL
SEGMENT 1
AWARENESS
REQUEST
RECOMMEND
PURCHASE
RESOURCES
ADVERTISING
PERSONAL SELLING
TELEMARKETING
AWARENESS
REQUEST
RECOMMEND
PURCHASE
AWARENESS
REQUEST
RECOMMEND
PURCHASE
SEGMENT 2 SEGMENT N
OUTPUT
SALES
SALES / CALL
PROFIT
PROFIT / CALL
MO
DEL
![Page 28: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/28.jpg)
Table 8.3
PROBABILITY OF RECOMMEND BY MIX AND SEGMENT
SEGMENT 1 SEGMENT 5
ONE SATURATION ONE SATURATIONAdvertising .07 (.25) .014 (.05)
Telesell .09 (.40) .018 (.08)
Personal Sell .11 (.5) .022 (.10)
Ad & Personal .17 (.6) .034 (.12)
Personal & Tele .19 (.8) .038 (.16)
Ad & Personal & Tele
.25 (.85) .05 (.17)
![Page 29: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/29.jpg)
BASE -
ALL SELLING
SALES FORCE SIZE 28
NUMBER OF CALLS / YEAR 22,000
TOTAL SALES ($) 13,984,000
COMMUNICATION BUDGET ($) 2,750,000
PROFIT ($) 870,000
PROFIT / CALL 39.55
![Page 30: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/30.jpg)
SELLING ALLOCATION
PERSONAL SELLING +
ADVERTISING + TELEMARKETING
COLD CALLS
(PERSONAL)
2
2
0
0
0
1200
CALLS
(TELESELL)
2
2
0
0
0
SEGMENT
1
2
3
4
5
ALL
SELL
4
4
2
1
0
FOLLOW UP
“PRESOLD”
![Page 31: ADVERTISING, PR, SELLING 15.823 Internet marketing Prof. Glen L. Urban Spring 2001](https://reader036.vdocuments.mx/reader036/viewer/2022070323/56649e255503460f94b14017/html5/thumbnails/31.jpg)
ALL BEST BEST WITH
SELL WITH ADS TELEMARKETING
NUMBER OF ADS - 7 -
NUMBER PERSONAL CALLS 22,000 20,140 11,040
NUMBER TELESELL - - 29,200
TOTAL SALES 13,984 14,056 20,710
COMMUNICATION BUDGET 2,750 2,727 2,475
PROFIT 870 915 3,215
PROFIT/PERSONAL CALL 40 45 291
PROFIT / COMMUNICATION BUDGET .32 .34 1.30
PROFIT PER HOUR OF TOTAL SELLING EFFORT 1.97 2.20 8.76
SALES PER HOUR OF TOTAL SELLING EFFORT 316 348 560