Chapter 16

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

IMC: Direct Marketing, Personal Selling, Packaging, and Sales Promotion

Learning Objectives

• LO1: Explain the importance of relationship marketing and IMC.

• LO2: Discuss the benefits & challenges of direct marketing.

• LO3: Explain the various types of direct marketing activities

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Learning Objectives

• LO4: Describe the advantages and drawbacks of personal selling

• LO5: Identify the elements that must be considered in establishing a trade show program.

• LO6: Explain the factors that must be considered in designing packaging

• LO7: Describe the roles that sales promotion can play in marketing strategy

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The Importance ofRelationship Marketing & IMC

– Seamless, consistent communication from all aspects of the company is how a firm earns a good reputation

– Advertising should be integrated with other marketing communication tools

– Advertising can create an image, reputation must be earned

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Understanding Direct Marketing

• Direct Marketing– interactive process of

addressable communication– using one or more

advertising media– to create a sale, lead,

purchase or donation– analyzed on a database to

develop ongoing beneficial relationships

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Direct Marketing in IMC

• Importance of Direct Marketing to IMC– You can’t do the job with just one medium.– Direct Marketing is the best way to develop a

good database• a database allows marketers to build relationships by

learning about customers• databases let companies choose good customers

– Direct Response Media are more cost-competitive than ever before

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Direct Marketing in IMC

• Drawbacks to Direct Marketing– bad reputation– efforts have to be able to stand on their own– lots of clutter– privacy concerns

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Types of Direct Marketing Activities

• Direct Response Advertising• Direct Sales• Telemarketing• Catalog Sales

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Types of Direct Marketing Activities

• Direct Response Print Advertising– Ads that use coupons or listing toll-free numbers

• Direct Response Broadcast Advertising– Infomercials, shopping networks

• Interactive

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Personal Selling: The Human Medium

• the objective of personal selling should be relationship building with long term benefits to all parties

• Types of personal selling– Door-to-Door• girl scout cookies, magazine subscriptions

– Any kind of sale• often to understand the selling environment,

advertisers will make calls with sales person

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Personal Selling: The Human Medium

• Advantages of personal selling– Its Personal– helps distribution– Good for high price items

• Drawbacks of personal selling– labor-intensive– poor reputation/perception

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Personal Selling: The Human Medium

• The role of Personal Selling in IMC– Salespeople are the company’s communicators– Sales reps gather & provide information– Getting the sale, fulfilling orders and following up– Sales people build (or ruin) relationships

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Trade Shows

• Exhibitions where manufacturers, dealers, and buyers of an industry’s products can get together for demonstrations and discussions on products

• An extraordinary opportunityfor personal selling

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Product Packaging

• Packaging– The last thing a customer sees

before purchasing a product– Four functions• create relationship with customer,

influence shopping decisions, help differentiate from competitors, inform customers of features & benefits

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The Role of Sales Promotion in IMC

• Positive effects of sales promotion on brand volume– adds value to brand– maximizes sales &

market volume– combats brand parity

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The Role of Sales Promotion in IMC

• Negative effects of sales promotion on brand volume– excessive promotions can reduce profitability– high sales promotions and low advertising efforts

can negatively affect brand attitudes– overemphasis of price can destroy brand equity– excessive efforts can lead to a price war– high cost

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Sales Promotion Strategies & Tactics

• Push Strategy vs. Pull Strategy– Push: use distribution channels to push products

to consumers

– Pull: use advertising to get customers to pull products

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