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IMC: Direct Marketing, Personal Selling and Sales Promotion. Chapter 16 Objectives. Discuss the importance of relationship marketing & IMC. Define direct marketing and its role in IMC. Explain the importance of databases to direct marketers. Discuss the IMC role of personal selling.
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Chapter 16 Objectives Discuss the importance of relationship marketing & IMC Define direct marketingand its role in IMC Explain the importance of databases to direct marketers Discuss the IMC role of personal selling Describe the advantages & drawbacks of personal selling Define sales promotion& its importance as a communications tool Identify benefits & drawbacks of sales promotion Explain push and pull strategies & giveexamples of each
By Using Linkage Media CustomerLifetimeValue (CLV) Loyalty Programs Understanding Direct Marketing & Its Role in IMC Direct marketing is communication that . . . GeneratesDirectOrders PromptsInformation Requests (Leads) GeneratesStore or BusinessTraffic Builds & Maintains a Customer Database
Negative, sales-oriented reputation of direct marketing Enjoyment of visiting retail stores Hesitation to buy goods not seen, touched or tried Privacy concerns Glut of direct marketing messages Understanding Direct Marketing & Its Role in IMC Drawbacks to Direct Marketing Lack of prestige of direct marketing media
Catalog DirectMail Types of Direct Marketing DirectResponseAds
Types of Direct Marketing L.L. Bean’s catalog makes it convenient for customers to order the company’s products from home
Print Interactive Broadcast Types of Direct Marketing Catalog DirectMail DirectResponseAds
Personal Telemarketing Types of Direct Marketing DirectSelling Advantages: • Mostpersuasive • Best way toestablish arelationship • Interactive Drawbacks: • Laborintensive • Cost • Reputation • Easy to ruinrelationship Advantages: • Cost • Customer acceptance • Interactive
GatheringInformation for Company Providing Information toCustomers FulfillingCustomerOrders Building Client Relationships Role of Personal Selling in IMC Communication functions of sales representatives
Trade Shows Trade Show Booths and Exhibits Planning Budgeting Promotion People Productivity
Trade Shows How customers learn about trade shows
rebate sweepstakesor contest specialpricing sponsorship coupon “freebie” Positive Effect on Brand Volume Negative Effect on Brand Value Role of Sales Promotion in IMC Value-added tool to accelerate product’smovement from producer to consumer
Role of Sales Promotion in IMC Snapple used sales promotion and product positioning to advertise its Mango Madness flavor Insert photo 10.15, p. 323 Snapple ad Position = 2.9” horiz., 1.5” vertical Size = 5.7” WIDE Resolution: 300 dpi
Slotting Allowances Premiums & Contests Trade Deals Display Allowances Co-op Advertising Buyback Allowances Allowances Push Money & Spiffs Meetings/Conventions Sales PromotionStrategies and Tactics Push Endusers Producer Resellers Marketing Communications Marketing Communications Types of Trade Promotions
Sales PromotionStrategies and Tactics Rapala uses trade promotion to increase distribution
Sales PromotionStrategies and Tactics Manufacturers like DeWalt often pay a fee for in-store exhibits
P-O-P Materials Coupons VIP Cards Refunds & Rebates Premiums Sampling Combination Offers Contest/Sweepstakes Sales PromotionStrategies and Tactics Pull Marketing Communications Endusers Producer Resellers Marketing Communications Marketing Communications Types of Sales Promotions
Sales PromotionStrategies and Tactics Effectiveness of various promotions