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Chapter 10 Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion Insert Dell ad p. 305 HERE Emphasizes the importance of relationship marketing and demonstrates how various forms of marketing communications can be integrated with advertising

Objectives Discuss the importance of relationship marketing and IMC Define direct marketing and its role in IMC Discuss the IMC role of personal selling Explain the importance of databases to direct marketers Define sales promotion and its importance as a communications tool Describe the advantages and drawbacks of personal selling Explain push and pull strategies and give examples of each ID benefits & drawbacks of sales promotion

Importance of Relationship Marketing and IMC Advertising must work with Direct marketing Sales promotion Personal selling

Understanding 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 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

Importance of Direct Marketing to IMC satisfaction perception, Exchanges Importance of Direct Marketing to IMC Best way to develop a database Allows prospects to self-select Helps ensure accountability Convenience for consumers Good for BTB markets

Drawbacks to Direct Marketing satisfaction perception, Exchanges Drawbacks to Direct Marketing Some challenges for direct marketing include: Sales orientation of the past Lack of affiliation with media Substantial amounts of clutter Concerns about privacy

Types of Direct Marketing Activities satisfaction perception, Exchanges Types of Direct Marketing Activities Direct sales Personal direct selling Telemarketing Direct response advertising Direct mail Catalog sales Direct-response print advertising Direct-response broadcast advertising Interactive media

Personal Selling: The Human Medium satisfaction perception, Exchanges Personal Selling: The Human 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

Role of Personal Selling in IMC satisfaction perception, Exchanges Role of Personal Selling in IMC Gathering information Providing information Fulfilling orders Building relationships

The Role of Sales Promotion in IMC satisfaction perception, Exchanges The Role of Sales Promotion in 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

Sales Promotion Strategies and Tactics satisfaction perception, Exchanges Sales Promotion Strategies and Tactics Push strategies Trade promotions Trade advertising Pull strategies Consumer advertising Consumer sales promotions

Giving Brands a Push with Trade Promotions satisfaction perception, Exchanges Giving Brands a Push with Trade Promotions Slotting allowances Trade deals Forward buying Diverting Display allowances Buyback allowances Advertising allowances Co-op advertising

Giving Brands a Push with Trade Promotions satisfaction perception, Exchanges Giving Brands a Push with Trade Promotions Dealer premiums and contests Push money (spiffs) Company conventions and dealer meetings

Using Consumer Promotions to Pull Brands Through satisfaction perception, Exchanges Using Consumer Promotions to Pull Brands Through Point-of-purchase (POP) materials Coupons Freestanding inserts (FSIs) Electronic coupons and convenience cards

Using Consumer Promotions to Pull Brands Through satisfaction perception, Exchanges Using Consumer Promotions to Pull Brands Through Cents-off promotions, refunds, rebates Premiums

Using Consumer Promotions to Pull Brands Through satisfaction perception, Exchanges Using Consumer Promotions to Pull Brands Through Sampling Polybagging In-store sampling Contests and sweepstakes Combination offers