University of South Bohemia in České Budějovice

Faculty of Economics

NEW TOOLS OF TARGET MARKETING COMMUNICATION.

Ing. Monika Březinová, Ph.D.

ABSTRACT
With change of consumer behaviour we can see changes in types of marketing communications. The
marketers leave a mass marketing communication and use more often target marketing communication. We have
several tools of target marketing communication.Some of them are: E-mail marketing; Viral marketing; Mobil
marketing; Social web networks

SUMMARY
The response measurement. The percentage of delivered E-mails is 94% in Europe. The number of
delivered and open e-mails (open rate) depends on the name of the subject of the e-mails. E-mails containing
only the name of the company or brand in the subject have higher open rate (B2B 32%, B2C 29%) than any
other possibilities– the name of the company and product, only the name of the product , now name. Generally e-
mails open rate is about 20%. Percentage of click through rate depends on data format of the e-mails. While in
the B2C communication news letter is the most successful, in B2B communication e-mails in post carte data
format is the most successful. (Click through rate 7,9%).
E-mail marketing communication has response from 5 % to 10 %, sometimes more. The acquisition
costs of e-mail marketing are three times higher than costs of retention, that is why e-mail marketing is mostly
used for retention. The success of e-mail campaigns can by increased by personification. Personification can be
used when we address customers (you used his or her name) or in the subject of e-mails (you send just relevant
information). You know the relevant information from the previous shopping behaviour.

Keywords: E-mail marketing; Viral marketing; Mobil marketing; Social web networks

INTRODUCTION
With change of consumer behaviour we can see changes in types of marketing communications. The
marketers leave a mass marketing communication and use more often target marketing communication. We have
several tools of target marketing communication.Some of them are: E-mail marketing; Viral marketing; Mobil
marketing; Social web networks

RESULTS AND DISCUSSION

E-mail marketing
Is sending commercial messages to a costumer´s e-mail address there are some rules how to use this tool.

Opt in list
The marketers cannot send e-mails to everyone because of spams, they must have Opt in or double opt
in list which is a list of e-mail addresses. The owners of the e-mail addresses must agree with receiving
commercial messages. For this reason it is more suitable to use this tool for retention than to acquisition. The
retention costs for one customer are around 7 USD, on the other hand the acquisition costs are around 20USD, so
there is a big difference.
The company has two possibilities how to get an opt in list, it can either create it from their own
database or it can buy it. The better but longer way is to create it itself. How can a company create its own list?
It can address current customers, for example when they are doing the shopping or they can organise a special
action for example an event or some competition where the companies can gain the e –mails address and make
own opt-in lists and make the databases.
This way is better, because the companies know the customer, they know what they are buying, they
know what they want, and this is the most important thing. But this way is longer, so if the companies need the
opt in list quickly they can buy it, but you never know what you are buying! Is this opt in list from your target
segment yes or now who knows it?

Types of e-mails looks and personification .

A layout – it is electronic handout it is sending targeted always to some project. Very important is what the
layout will look like on the customer ´s PC.
A newsletter- is the list of advertising products, with price, picture quantity of stock etc. It is send periodically
(every week, month...)
A message is using unusual, but in some cases can be use. For example like a confirming e-mail.
In the context of the e-mail marketing the subject of e-mails is very important too, the most important is
for B2B communication, where the open rate can be up to 32% if the e-mails has subject as the name of the
company. In any other case as for example the name of the company and the name of the goods or just the name
of the goods the open rate is lower.

Target segment
Resulting from market segmentation, we have several segmentation factors, for example: age, we can
divide consumers according to age, for example to these 3 generations: baby boom (born before 1965, X born
from 1965 to 1982, Y born from 1982 to 2001),
Type of consumers : B2B, B2C,
Division according to interests
Division according to preferences
Division according to shopping behaviour
Division according to manifestation of consumers - potential customer , active, passive etc.

The most important factor for the e-mail marketing target segment is not the age or the sex or etc., it is
the sensitivity to the mass media, the consumers which are sensible to mass media are not from target segment
for the e-mail marketing and vice versa. Generally we can say that our target segment is young people into to age
40, using PC in work and home, working age, not watching TV, active social life, etc.

Personification
If you are using this tool of marketing communication you can increase effectivity, by means of
personification. It is simple you have to write your e-mails to a particular persons and you must address them for
example dear Mr. Pollo we would like to inform you .......
It is the basic, then you should show respect to them and their wishes, and you should inform them just
about relevant information.

Tools of distribution
MailChips
Mailkit
Mail.One

Response measurement

We have a several tools for the response measurement. I present the best known.

Open rate – is percentage of open e-mails from all the e-mails which were sent.
Click through rate – is percentage of clicks from all the e-mails which were sent.
ROI – return of investment
CR - shows rate of the number of the web visitors and the new customers who are gained through web
presentation

The percentage of delivered E-mails is 94% in Europe. The number of delivered and open e-mails (open
rate) depends on the name of the subject of the e-mails. E-mails containing only the name of the company or
brand in the subject have higher open rate (B2B 32%, B2C 29%) than any other possibilities– the name of the
company and product, only the name of the product , now name. Generally e-mails open rate is about 20%.
Percentage of click through rate depends on data format of the e-mails. While in the B2C communication news
letter is the most successful, in B2B communication e-mails in post carte data format is the most successful.
(Click through rate 7,9%).
E-mail marketing communication has response from 5 % to 10 %, sometimes more. The acquisition
costs of e-mail marketing are tree times higher than costs of retention, that is why e-mail marketing is mostly
used for retention. The success of e-mail campaigns can by increased by personification. Personification can be
used when we address customers (you used his or her name) or in the subject of e-mails (you send just relevant
information). You know the relevant information from the previous shopping behaviour.
E-mails without personification have 20% open rate, 9,5% click through rate and only less than 1%
conversion rate. On the other hand e-mails with personification can reach up to 33% open rate, 14% click
through rate and 3,9% conversion rate.

Viral marketing

Viral marketing is spreading of the messages by social networks, where we can observe the viral spread.
We can discuss if we are speaking about the viral marketing or about the WOM (world of mouth), my opinion is
that we can speak about the viral marketing if we are using the viral -short video - the form of message and if we
are using the special kind of the social network the e-mail. Viral marketing is using for increase of the good
name and bring the name of the goods to the customers mind or it can by use for the introduction of the new
product. You have to have some reason why the people will resend your message.

Substance of viral
A fan
A interest
A bonus in off line world – can by some sale for the service or goods. For example if you will send this
message to the next 10 people we can offer to you 5% sale for our products.

Propagator
You need several of the e-mails address or you can use the You Tube like the propagator.

Viral marketing has some advantage and disadvantage too. The advantage is the low producing cost,
usually the viral look like the amateur´s video, so you don’t need the professional (and expensive) equipment.
The disadvantage is that you lost the control after publishing of the viral, and it can be abuse.

Mobile marketing

Offering goods via a mobile phone this tool has advantage for the costumer and for submitter too.
The advantages for the costumers are: they can buy the goods any time, and from any place, and they can have a
bonus if they use the mobile phone for buying the goods.There are a capl of bonuses.
Free SMS/MMS
Cash
Reduced fixed payment tariff
Most consumers prefer free SMS/MMS, and the most popular period of the receiving adds. is monthly.
Advantage for the submitter is aim of the adds. and the possibility of measuring costs for one response another
advantage can be the fact that for marketing communication personal subject is use and that we always have our
mobile phone with us. The cost per one sending is about 0,2 euro.
Social web networks

You can use for spread commercial messages social web networks. Social web networks are very
popular these days, we can say that the majority of the companies try to use some social web networks for their
marketing communication. But it is very difficult, you can use this tool for building a good name of the
company, for PR, but not directly for selling the goods. The social web networks are used by friends and this is
the reason why it is so popular, they share experiences and opinions etc. It is a long term work.

When we are speaking about the networks we have to know how they work. We have some tops and
some edges, the edges between the tops present the relationship between the people (tops). The network has
some general rules. For example the shortest way between the edges is the logarithm of number of tops, on
condition that each top has at least one edge. So if my country has 10 000 000 citizens I need only 7 people to
contact all other citizens, because logarithm of 10 000 000 is 7. We call this the effect of a small world. The
result is that each consumer is available, for the case above just 7 steps are enough. Next general feature of the
networks is connectivity of the top it means how many edges the top have. The tops (people) with the most
edges are the most important for marketing communication. How the marketers can use this effect? They have
to find the person (top) with most of the edges and try to make him or her interested in your project.

REFERENCES
[1] Frey, P.: Marketingová komunikaceManagement Press, Praha 2008, ISBN 978-80-7261-160-7

Address:
Ing. Monika Březinová, Ph.D., Department of management, Faculty of Economics, University of South Bohemia
in České Budějovice, Studentská 13, 370 05 České Budějovice, phone +420387772676, email:
brezina@ef.jcu.cz