chapter 17 relationship building: direct marketing, personal selling, and sales promotion
DESCRIPTION
Chapter 17 Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion. Chapter Overview. The importance of relationship marketing & integrating marketing communications with advertising. Chapter Objectives. Discuss the importance of relationship marketing & IMC. - PowerPoint PPT PresentationTRANSCRIPT
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McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 17Relationship Building:
Direct Marketing, Personal Selling, and
Sales Promotion
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Chapter Overview
The importance of relationship marketing & integrating marketing communications with advertising
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Chapter ObjectivesDiscuss the importance
of relationship marketing & IMC
Describe the pros & cons of personal selling
Identify benefits & draw-backs of sales
promotion
Define direct marketing and its role in IMC
Explain the importance of databases to direct
marketers
Define sales promotion & its importance as a communication tool
Discuss the role of personal selling in IMC
Explain push & pull strategies and give examples of each
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Relationship Marketing & IMC
Advertising can create an image, but a reputation must be earned
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Understanding Direct Marketing
Direct marketing is . . .
To effect a measurable response
and/or transaction
A measurable system
of interactive marketing
Using one or more
advertising media
With this activity
stored in a database
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Direct Marketing Companies
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Marketing Databases
Marketing databases enable marketers to. . .
Target, segment, and grade customers
Store key customer information
Record customer & channel transactions
Measure efficiency of direct-response ads
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Marketing Databases
Data Management
DataAccess
Two Processes
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Direct Marketing’s Role in IMC
RFM is a mathematical formula that helps determinethe most valuable customers in a company’s database
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Direct Marketing’s Role in IMCDrawbacks to Direct Marketing
Negative, sales-oriented reputation
Consumers enjoy visiting retail stores to shop
Hesitation to buy goods not seen, touched, tried
Clutter
Privacy concerns
Lack of prestige
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Direct Marketing Activities
Personal direct selling
Telemarketing
Direct Sales
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Direct Marketing ActivitiesE-mail
Brochures
Sales letters
Self-mailers
Postcards
Statement stuffers
Folders
House organsDirect-Mail Advertising
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Direct Marketing Advertising
Flexibility
Control
Selectivity Personal impact
Coverage & reach Exclusivity
Pros
Response
Testability
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Direct Marketing Advertising
Lack of content support
Selectivity problems
High cost per exposure
Negative attitudes
Delivery problems
Environmental concerns
Anti-spam lawsCons
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Buying Direct-Mail AdvertisingAcquire direct-mail lists House
Mail-response
Compiled
Consider a list broker Charges a commission
Tailors the list
Improves list quality
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Buying Direct-Mail Advertising
Distribute the package
Weight affects costs and delivery method
Produce the package
Designer
Writer
Letter shop
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Catalog SalesCatalog salesmake up the
largest portion of direct
marketing
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Catalog Sales
Top 10 catalog companies
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Direct Response Broadcast Ads
More people are watching infomericals and buying products
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Direct Response Broadcast Ads
Television is a powerful instrument for direct marketers
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Personal SellingThe Human Medium See the people
Most expensive
Long-term benefits
Personal Selling depends on the…
Type of business
Product or service
Business strategy
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Personal Selling Drawbacks
Labor intensive
Costly
Time consuming
Few economies of scale
Poor reputation of sales
Finding good salespeople
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Personal Selling in IMC
Communication functions of sales reps
Building Client
Relationships
GatheringInformation
for Company
FulfillingCustomer
Orders
Providing Information to
Customers
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Sales Promotion in IMCValue-added tool to accelerate product’smovement from producer to consumer
Rebate Sweepstakesor contestCoupon “Freebie”
SponsorshipSpecialpricing
Negative Effect on
Brand Value
Positive Effect on
Brand Volume
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Sales Promotion in IMCSnapple used
sales promotion and product
positioning to advertise its
Mango Madness flavor
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Strategies & Tactics
Push Promotions
Slotting Allowances Trade Deals
Display Allowances Buyback Allowances
Allowances Meetings/Conventions
Premiums & Contests
Push Money & Spiffs
Co-op Advertising
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Strategies & TacticsPayne Heating
and Cooling uses trade
promotion to increase
distribution
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Strategies & TacticsManufacturers
often pay a display
allowance for in-store exhibits
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Strategies & Tactics
Pull Promotions
P-O-P Materials VIP Cards
Refunds & Rebates Sampling
Combination Offers
Coupons
Contest/Sweepstakes
Premiums
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Strategies & Tactics
Effectiveness of various promotions