Download Direct Marketing, Personal Selling, Packaging, and Sales Promotion

IMC: Direct Marketing,
Personal Selling,
Packaging, and Sales
Promotion
Chapter 16
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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 of
Relationship 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
•direct marketing
•sales promotion
•personal selling
•public relations
– 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
16-5
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
16-9
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
opportunity
for personal selling
16-13
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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