Showing posts with label Sales. Show all posts
Showing posts with label Sales. Show all posts

Saturday, May 8, 2010

Basic Definitions: Advertising, Marketing, Promotion, Public Relations and Publicity, and Sales

By Carter McNamara, MBA, PhD

It's easy to become confused about these terms: advertising, marketing, promotion, public relations and publicity, and sales. The terms are often used interchangeably. However, they refer to different -- but similar activities. Some basic definitions are provided below. A short example is also provided hopefully to help make the terms more clear to the reader.
One Definition of Advertising
Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc.
One Definition of Promotion
Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions.
One Definition of Marketing
Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. Marketing is usually focused on one product or service. Thus, a marketing plan for one product might be very different than that for another product. Marketing activities include "inbound marketing," such as market research to find out, for example, what groups of potential customers exist, what their needs are, which of those needs you can meet, how you should meet them, etc. Inbound marketing also includes analyzing the competition, positioning your new product or service (finding your market niche), and pricing your products and services. "Outbound marketing" includes promoting a product through continued advertising, promotions, public relations and sales.
One Definition of Public relations
Public relations includes ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media, that is, newspapers, television, magazines, etc. As noted above, public relations is often considered as one of the primary activities included in promotions.
One Definition of Publicity
Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said.
One Definition of Sales
Sales involves most or many of the following activities, including cultivating prospective buyers (or leads) in a market segment; conveying the features, advantages and benefits of a product or service to the lead; and closing the sale (or coming to agreement on pricing and services). A sales plan for one product might be very different than that for another product.
An Example of the Definitions
The following example may help to make the above five concepts more clear. I recently read that the story comes from the Reader's Digest, a quote found in "Promoting Issues and Ideas" by M. Booth and Associates, Inc. (Thanks to Jennifer M. Seher, participant in the CONSULTANTS@CHARITYCHANNEL.COM online discussion group.)

"... if the circus is coming to town and you paint a sign saying 'Circus Coming to the Fairground Saturday', that's advertising. If you put the sign on the back of an elephant and walk it into town, that's promotion. If the elephant walks through the mayor's flower bed, that's publicity. And if you get the mayor to laugh about it, that's public relations." If the town's citizens go the circus, you show them the many entertainment booths, explain how much fun they'll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that's sales.

Wednesday, April 28, 2010

How SMS is building business

The following case studies are real. They are excellent for generating SMS marketing ideas for your business. We can help your business in a similar fashion.

Case Study 1. Dunkin Donuts

A two month mobile interactive ad campaign in Italy has resulted in a 9% increase in sales for Dunkin Donuts, according to the two companies that created it.

As a result of an SMS-based marketing campaign, customers were able to get coupons for Dunkin Donuts goods by using their mobile handsets to respond to advertisements displayed on store notice boards, billboards and on the radio.

By sending a short message to the published numbers, users receive an immediate reply featuring a free gift coupon or special offer exchangeable at local outlets.

Sales were reportedly up 9% within the first three weeks of the campaign. By enticing consumers to request special offers, Dunkin Donuts ensures that they achieve a great consumer push without running the risk of breaking down the client relationship by contributing to the wealth of 'spam'. SMS is the perfect way to tap into a vast market of mobile phone users in an environment plagued by a lack of standardization and interconnections.

By ensuring that the power of the SMS medium is put to good use in an ethical way and one which doesn't encroach upon users' privacy is something which was key to the success of campaigns such as this one with Dunkin Donuts.

And Dunkin Donuts' Italian franchisee GianLuigi Contin says that the SMS marketing solution has been a positive brand-building experience: "We are directly reaching our targets with a message they can understand. Cellular coupons are not cute promotions, rather they are serious marketing tools that not only extend the brand but are also directed towards the people we want to reach."


Case Study 2. MacDonalds boosts sales using SMS

When McDonald’s Australia ran its first SMS voucher campaign in Bundaberg, Queensland, in September, it saw very healthy SMS voucher redemption rates.

This redemption rate was aided by the design of the voucher campaign, which was integrated with a competition run through a local radio station. Listeners entered the radio competition by SMSing in their name. In reply, they received a confirmation of their entry with an SMS voucher attached. They could take this voucher to either of the two Bundaberg McDonald’s restaurants and receive one of three offers. Additionally, the customer was asked to reply to the SMS voucher with a “Y” to receive more McDonald’s offers, which most recipients did.


McDonald’s was able to send out further vouchers just before lunch time.


Because every phone number is unique. McDonald’s collected names in their campaign, next time they may choose to ask for age, allowing better targeting and response rates.


Because of the infiltration of mobile phones in society, it is a perfect promotional entry tool and voucher/coupon delivery and redemption mechanism.

Case Study 3. SMS marketing helps McDonalds


Marketing products to mobile phones using SMS messages has been proven to increase sales, according to a test study carried out in Sweden.



Named e-street, the project signed up 2,500 mobile phone-users in the town of Lulea to receive SMS messages of special offers from 150 local organization.

After the volunteers were sent an SMS for a McDonalds burger offer, 25 per cent of the targeted users took up the offer.


The McDonalds in question broke its turnover records during the test period and it jumped to the top of the McDonalds league table in Sweden.

Case Study 4. Hilton uses SMS with success
 

The Hilton Hotel group has successfully used SMS messaging to increase guest numbers to its hotels and build customer loyalty.
 

The hotel sent out important marketing messages such as specials and promotions directly to its members’ mobile handsets.
 

SMS allowed the hotel to get the messages out instantly and at the most appropriate time of day.
The use of SMS as a direct marketing tool resulted in a 10-25% uptake of offers sent out by the hotel and proved to be an integral part its direct marketing and loyalty strategy.