chapter 16 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights...

chapter16

IMC: Direct Marketing, Personal Selling and

Sales Promotion

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

Explain push and pull strategies & giveexamples of each

Identify benefits & drawbacks of sales promotion

By Using Linkage Media

Understanding Direct Marketing & Its Role in IMCDirect marketing is communication that . . .

GeneratesStore or Business

Traffic

GeneratesDirectOrders

PromptsInformation Requests (Leads)

Builds & Maintains a Customer Database

Loyalty Programs

CustomerLifetime

Value (CLV)

Understanding Direct Marketing & Its Role in IMC

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

Lack of prestige of direct marketing media

Drawbacks to Direct Marketing

DirectMail

Types of Direct Marketing

Catalog

DirectResponse

L.L. Bean’s catalog makes it convenient for customers to order the company’s products from home

DirectMail

Interactive Broadcast

Catalog

DirectResponse

Advantages:

Mostpersuasive

Best way toestablish arelationship

Interactive

Drawbacks:

Laborintensive

Cost Reputation Easy to ruin

relationship

Advantages:

Cost Customer acceptance Interactive

Personal TelemarketingDirectSelling

Role of Personal Selling in IMC

Communication functions of sales representatives

Building Client

Relationships

GatheringInformation

for Company

FulfillingCustomer

Orders

Providing Information to

Customers

Trade Shows

Trade Show Booths and Exhibits

Planning

Promotion

Budgeting

People

Productivity

Trade ShowsHow customers learn about trade shows

Negative Effect on

Brand Value

Positive Effect on

Brand Volume

Role of Sales Promotion in IMC

Value-added tool to accelerate product’smovement from producer to consumer

rebate sweepstakesor contestcoupon “freebie”

sponsorshipspecialpricing

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

Role of Sales Promotion in IMC

Types of Trade Promotions

Sales PromotionStrategies and Tactics

Slotting Allowances Trade Deals

Display Allowances Buyback Allowances

Allowances Meetings/Conventions

Premiums & Contests

Push Money & Spiffs

Co-op Advertising

ProducerEnd

usersResellersMarketing

CommunicationsMarketing

Communications

Rapala uses trade promotion to increase distribution

Manufacturers like DeWalt often pay a fee for in-store exhibits

ProducerEnd

usersResellersMarketing

Communications

Marketing Communications

Types of Sales Promotions

P-O-P Materials VIP Cards

Refunds & Rebates Sampling

Combination Offers

Coupons

Contest/Sweepstakes

Premiums

Effectiveness of various promotions

chapter 16 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights...

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