Outbound
marketing
Marketers select a media
channel with proven
reach to the target audience, then
communicate the message about
brand or product to that audience.
Broadcast channels
Ads on prime time TV to find
widest possible audience—ideal
for raising brand awareness.
Direct mail sent to a general
audience using mailing lists, or
to existing customers who have
previously bought by mail order.
See pp.212–213.
Print advertisements in
special interest, hobby, or trade
magazines with proven circulation
to find a defined target market.
Presence at trade events for
increasing corporate visibility
and to reach a business audience.
Also called interruption marketing, outbound marketing involves a marketer
pushing a message to consumers. With this type of marketing, businesses
typically reach out to a wide audience by paying for advertisements on various
media channels. Although the audience may have no interest in the advertisement,
outbound strategy relies on delivering a high-impact message and generating
a response by creating familiarity through repetition.
Outbound marketing process
Broadcast
Marketers link offline
outbound campaigns
with digital channels as part of
an overall strategy to persuade
potential customers to respond.
Means of conversion
Radio advertisement that repeats
easy-to-recall phone number to
elicit immediate action.
Direct mail that makes high-
impact call for customer response;
includes postage-paid reply form
and customer service contacts.
Online advertisement that has
prominent position on web page
and clear click-through point that
invites customers to click, find out
more about product, and buy.
Flyer distributed door to door
that includes an appealing
introductory offer on the product
for a limited period of time.
Convert
Outbound marketing takes
a traditional approach to
grabbing consumers’ attention,
but may use both non-digital
and digital media platforms.
There are two stages to the
outbound process. First, the
company broadcasts a message
to an audience and tries to
convert them into customers;
second, it analyzes the results
to identify the channels and
campaigns that have generated
the most sales.
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how sales and marketing works
Outbound marketing
TYPES OF OUTBOUND MARKETING
Cold calling Campaign can be more effective
if conducted at the right time of day to suit target
audience; message should be scripted carefully and
delivered in a genuine tone. See pp.218–219.
TV commercials Although many consumers now
switch off TV advertisements, they are familiar with
and open to this type of media, and repetition gets
the message across. See pp.212–213.
Radio This medium is the world’s most popular
mass communication channel with a global reach,
and is ideal for outbound messages aimed at an
international market. See pp.212–213.
Guerrilla marketing The use of a creative
and unconventional approach in high-traffic
public places can be a cost-effective way to raise
brand awareness. This is a form of engagement
marketing. See pp.204–205.
Social media The types of advertising on social
media sites are increasing and include sponsored
posts, promoted pins, and direct forms, such as
banner ads. See pp.228–229.
Mobile technology Advertising that is tailored for
mobile devices takes the form of text and images, or
both, to offer special deals to users; promotions are
also made via apps. See pp.214–215.
Social lead targeting This strategy taps into
individual profiles from social media and tailors
messages, which are sent via online networks, such
as Twitter and LinkedIn.
Search engine optimization (SEO) keywords
Paying for popular SEO keywords relevant to a brand
can improve exposure by raising them in internet
search engine listings pages. See pp.230–231.
32%
of UK brands cut
outbound marketing
spend in favour of
spending more on
content marketing,
in 2013
Marketers monitor the
progress of outbound
campaign and adjust the mix of
media or other paid-for channels,
then measure campaign results.
Actions
Run control and test streams to
compare the success of different
media or campaign strategies.
Examine click-through-rate
analytics, which look at how many
customers have clicked through to
find out about or buy product,
to determine online ad success.
Measure direct mail response
rates, including breakdown
of different mailing lists or
target demographics.
Analyze sales by outbound
spend to establish which channels
offer the best return on marketing
investment (ROMI).
Analyze
Offline
Online
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210 211
how sales and marketing works
Outbound marketing
TYPES OF OUTBOUND MARKETING
Cold calling Campaign can be more effective
if conducted at the right time of day to suit target
audience; message should be scripted carefully and
delivered in a genuine tone. See pp.218–219.
TV commercials Although many consumers now
switch off TV advertisements, they are familiar with
and open to this type of media, and repetition gets
the message across. See pp.212–213.
Radio This medium is the world’s most popular
mass communication channel with a global reach,
and is ideal for outbound messages aimed at an
international market. See pp.212–213.
Guerrilla marketing The use of a creative
and unconventional approach in high-traffic
public places can be a cost-effective way to raise
brand awareness. This is a form of engagement
marketing. See pp.204–205.
Social media The types of advertising on social
media sites are increasing and include sponsored
posts, promoted pins, and direct forms, such as
banner ads. See pp.228–229.
Mobile technology Advertising that is tailored for
mobile devices takes the form of text and images, or
both, to offer special deals to users; promotions are
also made via apps. See pp.214–215.
Social lead targeting This strategy taps into
individual profiles from social media and tailors
messages, which are sent via online networks, such
as Twitter and LinkedIn.
Search engine optimization (SEO) keywords
Paying for popular SEO keywords relevant to a brand
can improve exposure by raising them in internet
search engine listings pages. See pp.230–231.
32%
of UK brands cut
outbound marketing
spend in favour of
spending more on
content marketing,
in 2013
Marketers monitor the
progress of outbound
campaign and adjust the mix of
media or other paid-for channels,
then measure campaign results.
Actions
Run control and test streams to
compare the success of different
media or campaign strategies.
Examine click-through-rate
analytics, which look at how many
customers have clicked through to
find out about or buy product,
to determine online ad success.
Measure direct mail response
rates, including breakdown
of different mailing lists or
target demographics.
Analyze sales by outbound
spend to establish which channels
offer the best return on marketing
investment (ROMI).
Analyze
Offline
Online
US_210-211_Outbound_Marketing_OVERVIEW.indd 211 21/11/2014 16:26
How it works
The common criteria for both
online and offline advertising
is that businesses pay for ads
that are intended to catch a
consumer’s attention with
a brand or product message.
Businesses calculate the
success of their advertisement
by looking at the return on
investment (ROI) for every ad
dollar spent. And to maximize
the ROI, they must make sure
they choose the right channel
for their target audience.
Traditional offline
advertising
Marketers choose different
channels according to the target
market defined for the product
or service being advertised. The
choice may also be based on the
ROI that a company has previously
experienced for that channel.
However, tracking the response
rate of offline advertising is more
difficult and less accurate than
tracking online advertising
(see pp.214–215 ).
83%
of all advertising
in India in 2013
was via television
or print; digital
comprised just
6.5% of the total
One of the most important set of figures for a marketing
department is return on investment (ROI) for advertising
spend, which indicates the success of its campaigns. Data
compiled by the Radio Advertising Bureau, UK, in 2013
showed that TV and radio boasted the best ROI.
$14.15
18.1%
$9.44
11.7%
$3.25
5.8%
$12.53
44.3%
TELEVISION PRESS OUTDOOR RADIO
Offline advertising uses traditional media channels, such as magazines,
TV, radio, and billboards, to market a product or service. Although online
advertising is growing fast, globally most advertising is still offline.
offline Advertising And return on investment (roi)
Share of
overall offline
ad budget
Average return
on investment
per $ spent
KEY
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212 213
HOW SALES AND MARKETING WORKS
Outbound marketing
58%
of marketers’ ad
budget globally
was spent on
TV advertising
in 2010, although
86% of people
skip television ads
Inexpensive; quick and
easy production process;
most stations play to
specific demographic
Competition for prime
“commute” slots; radio
on as background noise
renders ad ineffective
Fast publication process;
themed newspaper
sections allow for more
targeted advertising
Ads compete for attention
with other material on
page; usually black and
white, and text only
May remain in circulation
for months; niche trade
and special-interest titles
allow focused advertising
Real circulation figures
hard to source; securing
ad slot requires planning
months in advance
Offers local, national, and
global reach; mix of sound
and vision creates
high-impact message
Expensive; ad repetition
may cause viewer fatigue;
viewers likely to skip ads
on recorded shows
Pros
Television
Radio
Newspapers
Magazines
Cons
Cost-effective; delivered
straight to people’s homes
and offices; targets
specific markets
May be perceived as junk
mail and instantly thrown
away; response rate
usually low
Direct mail
High reach makes channel
cost-effective; advertiser’s
message visible 24 hours
a day
Heavy competition
for prime sites; format
limits message length
and complexity
Billboards
Potential to impress with
sophisticated, creative
production; it has captive
audience members
Audience numbers
limited; members may
choose to enter theater
after ads are shown
Movies
Offline advertising channels
Television rating point (TVR)
Indicates percentage of target
viewers in program audience
Cost per thousand (CPT) Figure
used to measure outlay to reach a
thousand people via any channel
Advertising to sales ratio (A/S)
Method of measuring money
spent on advertising and
sales generated
Share of voice Percentage
of total activity claimed by one
advertiser for a product sector
NEED TO KNOW
News
US_212-213_Advertising_offline.indd 213 02/12/2014 14:58
212 213
HOW SALES AND MARKETING WORKS
Outbound marketing
58%
of marketers’ ad
budget globally
was spent on
TV advertising
in 2010, although
86% of people
skip television ads
Inexpensive; quick and
easy production process;
most stations play to
specific demographic
Competition for prime
“commute” slots; radio
on as background noise
renders ad ineffective
Fast publication process;
themed newspaper
sections allow for more
targeted advertising
Ads compete for attention
with other material on
page; usually black and
white, and text only
May remain in circulation
for months; niche trade
and special-interest titles
allow focused advertising
Real circulation figures
hard to source; securing
ad slot requires planning
months in advance
Offers local, national, and
global reach; mix of sound
and vision creates
high-impact message
Expensive; ad repetition
may cause viewer fatigue;
viewers likely to skip ads
on recorded shows
Pros
Television
Radio
Newspapers
Magazines
Cons
Cost-effective; delivered
straight to people’s homes
and offices; targets
specific markets
May be perceived as junk
mail and instantly thrown
away; response rate
usually low
Direct mail
High reach makes channel
cost-effective; advertiser’s
message visible 24 hours
a day
Heavy competition
for prime sites; format
limits message length
and complexity
Billboards
Potential to impress with
sophisticated, creative
production; it has captive
audience members
Audience numbers
limited; members may
choose to enter theater
after ads are shown
Movies
Offline advertising channels
Television rating point (TVR)
Indicates percentage of target
viewers in program audience
Cost per thousand (CPT) Figure
used to measure outlay to reach a
thousand people via any channel
Advertising to sales ratio (A/S)
Method of measuring money
spent on advertising and
sales generated
Share of voice Percentage
of total activity claimed by one
advertiser for a product sector
NEED TO KNOW
News
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Online advertising
How it works
When marketers advertise on the
internet, they have to choose both
the form of the ad and a location
that has an audience matching
their target market. There are
several advertising channels, but
the two most often used are display
advertising and search advertising.
Display advertising includes
banners with text and images,
which appear on websites known
to be used frequently by target
consumers, such as news, social
media, or video content sites.
Search advertising is a method
of placing ads in the web pages
that appear in the results of search
engine queries. While display
advertising is likely to get more
views overall, search advertising
has a better chance of reaching
the target audience.
Other forms of digital advertising
include mobile advertising, which
embeds advertisements in mobile
content viewed on smartphones
and tablets, or sends text messages;
email, which delivers ad copy
directly to an email address; and
social media advertising, which a
company uses to promote products
via its social media profile.
A major advantage of online over
offline advertising is that response
rates can be tracked effectively.
210%
the growth
rate of mobile
advertising
in China,
between 2013
and 2014
Consumers who feel bombarded by digital
promotions from a brand are likely to be put off.
Here is a sample of how consumers would respond
if they felt a brand’s promotions were too frequent.
Would unsubscribe from
a brand’s promotions
Would respond
negatively to future
brand messages
Would stop using
the brand’s product
or service
Would protest on
social media sites
Marketers are increasingly advertising online to push marketing
messages to consumers. Online channels include display and mobile
technologies, email, search engines, and social media marketing.
responses to digital advertising overload
US
UK
KEY
65%
28%
32%
20%
27%
11%
10%
66%
70%
60%
50%
40%
30%
20%
10%
0%
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214 215
HOW SALES AND MARKETING WORKS
Outbound marketing
46%
of e-commerce sales in 2014
came from the Asia–Pacific region
Online advertising channels
Offers opportunity to
reach millions of potential
customers, especially
with bulk emailing
(see pp.216–217)
Recipient may delete
email without reading it,
and is more likely to do so
if feeling bombarded
Cheaper to develop
content for mobiles than
for computers; easy
to track ad effectiveness
Different screen sizes and
systems can distort ad
layout; user may feel
annoyed by interruption
Attention-grabbing; if ad
is clicked on, success can
be tracked with pay-per-
click system
Hard to target consumer
precisely; internet users
suffer ad fatigue and
ignore advertisements
Good for targeting
consumers, as search user
keywords are matched
to advertiser keywords
(see pp.230–231)
Potentially expensive
if using premium
keywords; can take
time to see results
Pros Cons
Easy to target specific
audience; offers chance
of ad going viral and
achieving many views
(see pp.228–229)
Continual posts and
updates can easily distract
user’s attention away
from placed ad
Search
advertising
Email
Mobile
Display
advertising
Social media
Clickstream User activity
profile that summarizes what
an individual has clicked on
Behavioral targeting Process
whereby websites capture data
from landing page visitors and
use it to improve ad effectiveness
Interstitials Ads that precede
the content page a user expects
to land on, or appear right after it
NEED TO KNOW
Click fraud and botnets
With pay-per-click (PPC) advertising,
a business pays a website for every
click made on one of its ads, but click
fraud has become a serious issue.
Fraudsters set up a website and sell
PPC advertising, then infiltrate the
computers of unsuspecting users
with a computer virus known as
a “botnet” to generate fake traffic
to the website. Advertisers on the
site end up paying the fraudsters for
the large number of clicks received.
In 2013, one London company
uncovered a botnet that was
generating nine billion fake clicks
per month.
CASE STUDY
xxxx
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