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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 10
Relationship Building: Direct
Marketing, Personal Selling, and
Sales Promotion
Emphasizes the
importance of
relationship marketing
and demonstrates how
various forms of
marketing
communications can
be integrated with
advertising
Insert Dell ad
p. 305
HERE
Objectives
Discuss the importance
of relationship marketing
and IMC
Explain the importance of
databases to direct
marketers
Describe the advantages
and drawbacks of
personal selling
ID benefits & drawbacks
of sales promotion
Define direct marketing
and its role in IMC
Discuss the IMC role of
personal selling
Define sales promotion
and its importance as a
communications tool
Explain push and pull
strategies and give
examples of each
Importance of Relationship Marketing
and IMC
Advertising must work with
Direct marketing
Sales promotion
Personal selling
Understanding Direct Marketing
Direct marketing
An interactive system of
marketing, which uses
one or more advertising
media to effect a
measurable response
and/or transaction at any
location.
DMA
Any direct communication
to a customer or business
recipient that is designed
to generate a response in
the form of an order
(direct order), a request
for further information
(lead generation), and/or a
visit ot a store or other
place of business for the
purchase of a specific
product(s) or service(s)
(traffic generation)
DMA 1997
Understanding Direct Marketing
Direct marketing
A measurable system of
marketing that uses one
or more advertising media
to effect a measurable
response and/or
transaction at any
location, with this activity
stored in a database
Direct Marketing
Magazine
Database marketing
Database
Direct response
advertising
Role of Direct Marketing in IMC
Evolution of direct marketing
Impact of databases
on direct marketing
Customer lifetime
value (LTV)
Data management
Data access
RFM formula
WebTV
perception,
Exchangesof Direct
Importance
Marketing
satisfaction
to IMC
Best way to develop a database
Allows prospects to
self-select
Helps ensure
accountability
Convenience for
consumers
Good for BTB
markets
perception,
Exchanges
Drawbacks
to Direct Marketing
satisfaction
Some challenges for direct
marketing include:
Sales orientation of
the past
Lack of affiliation
with media
Substantial
amounts of clutter
Concerns about
privacy
Exchanges
Types of Direct perception,
Marketing
satisfaction
Activities
Direct sales
Personal direct
selling
Telemarketing
Direct response advertising
Direct mail
Catalog sales
Direct-response
print advertising
Direct-response
broadcast
advertising
Interactive media
Exchanges
Personal
Selling: perception,
The Human
satisfaction
Medium
Personal selling
Types of personal selling
Advantages of personal selling
Drawbacks of personal selling
The interpersonal communication
process by which a seller ascertains
and then satisfies the needs of a buyer,
to the mutual, long-term benefit of both
parties
perception,
Exchanges
Role ofsatisfaction
Personal Selling in IMC
Gathering information
Providing information
Fulfilling orders
Building
relationships
Exchanges
The
Role of Sales perception,
Promotion in
satisfaction
IMC
Sales promotion
Direct inducement that offers incentives anywhere along
the marketing route to enhance or accelerate the
product’s movement from producer to consumer
Positive effect of sales
promotion on brand volume
Negative effect of sales
promotion on brand value
perception,
Exchanges
Sales
Promotion Strategies
and
satisfaction
Tactics
Push strategies
Trade
promotions
Trade
advertising
Pull strategies
Consumer
advertising
Consumer sales
promotions
perception,
Exchanges
Giving
Brands a Push
with Trade
satisfaction
Promotions
Slotting allowances
Trade deals
Forward buying
Diverting
Display allowances
Buyback allowances
Advertising allowances
Co-op advertising
perception,
Exchanges
Giving
Brands a Push
with Trade
satisfaction
Promotions
Dealer premiums and contests
Push money (spiffs)
Company conventions and
dealer meetings
perception,to
Exchanges
Using
Consumer Promotions
satisfaction
Pull Brands Through
Point-of-purchase (POP)
materials
Coupons
Freestanding
inserts (FSIs)
Electronic coupons and
convenience cards
perception,to
Exchanges
Using
Consumer Promotions
satisfaction
Pull Brands Through
Cents-off promotions, refunds,
rebates
Premiums
perception,to
Exchanges
Using
Consumer Promotions
satisfaction
Pull Brands Through
Sampling
Polybagging
In-store sampling
Contests and sweepstakes
Combination offers