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Chapter 17 Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion

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.

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Chapter 17 Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion

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  1. Chapter 17Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion

  2. Chapter Overview The importance of relationship marketing & integrating marketing communications with advertising

  3. Chapter Objectives Discuss the importance of relationship marketing & IMC Describe the pros & cons of personal selling Define direct marketing and its role in IMC Define sales promotion & its importance as a communication tool Explain the importance of databases to direct marketers Identify benefits & draw-backs of sales promotion Explain push & pull strategies and give examples of each Discuss the role of personal selling in IMC

  4. Relationship Marketing & IMC Advertising can create an image, but a reputation must be earned

  5. Understanding Direct Marketing Direct marketing is . . . A measurable system of interactive marketing Using one or more advertising media To effect a measurable response and/or transaction With this activity stored in a database

  6. Direct Marketing Companies

  7. 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

  8. Marketing Databases Two Processes DataAccess Data Management

  9. Direct Marketing’s Role in IMC RFM is a mathematical formula that helps determinethe most valuable customers in a company’s database

  10. Direct Marketing’s Role in IMC Drawbacks 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

  11. Direct Marketing Activities Direct Sales Personal direct selling Telemarketing

  12. Direct Marketing Activities Direct-Mail Advertising E-mail Sales letters Postcards Folders Brochures Self-mailers Statement stuffers House organs

  13. Direct Marketing Advertising Pros Selectivity Personal impact Coverage & reach Exclusivity Flexibility Response Control Testability

  14. Direct Marketing Advertising Cons High cost per exposure Delivery problems Lack of content support Selectivity problems Negative attitudes Environmental concerns Anti-spam laws

  15. Buying Direct-Mail Advertising Acquire direct-mail lists House Mail-response Compiled Consider a list broker Charges a commission Tailors the list Improves list quality

  16. Buying Direct-Mail Advertising Produce the package Designer Writer Letter shop Distribute the package Weight affects costs and delivery method

  17. Catalog Sales Catalog salesmake up thelargest portion of directmarketing

  18. Catalog Sales Top 10 catalog companies

  19. Direct Response Broadcast Ads More people are watching infomericals and buying products

  20. Direct Response Broadcast Ads Television is a powerful instrument for direct marketers

  21. Personal Selling The Human Medium See the people Most expensive Long-term benefits Personal Selling depends on the… Type of business Product or service Business strategy

  22. Personal Selling Drawbacks Labor intensive Costly Time consuming Few economies of scale Poor reputation of sales Finding good salespeople

  23. Personal Selling in IMC GatheringInformation for Company Providing Information toCustomers FulfillingCustomerOrders Building Client Relationships Communication functions of sales reps

  24. Sales Promotion in IMC Rebate Sweepstakesor contest Specialpricing Sponsorship Coupon “Freebie” Positive Effect on Brand Volume Negative Effect on Brand Value Value-added tool to accelerate product’smovement from producer to consumer

  25. Sales Promotion in IMC Snapple used sales promotion and product positioning to advertise its Mango Madness flavor

  26. Strategies & Tactics Push Promotions Slotting Allowances Premiums & Contests Trade Deals Display Allowances Co-op Advertising Buyback Allowances Allowances Push Money & Spiffs Meetings/Conventions

  27. Strategies & Tactics Payne Heating and Cooling uses trade promotion to increase distribution

  28. Strategies & Tactics Manufacturers often pay a display allowance for in-store exhibits

  29. Strategies & Tactics P-O-P Materials Coupons VIP Cards Refunds & Rebates Premiums Sampling Combination Offers Contest/Sweepstakes Pull Promotions

  30. Strategies & Tactics Effectiveness of various promotions

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