© 2000 South-Western College Publishing Slide #1 Marketing Management 2nd Edition Chapter 13: Direct Marketing, Sales Promotion and Public Relations Michael R. Czinkota and Masaaki Kotabe

© 2000 South-Western College Publishing Slide #2 Chapter Outline l Precision Marketing l Direct Marketing Delivery Systems l Structuring the Direct Mail Campaign l Telemarketing l Sales Promotion: Advantages & Disadvantages l Types of Sales Promotion l Trade Shows l Public Relations

© 2000 South-Western College Publishing Slide #3 Precision Marketing Precision marketing is possible because of: l Availability & consolidation of secondary data l Point of sale data l Electronic point-of-sale (EPOS) l Manipulation data l Expert systems

© 2000 South-Western College Publishing Slide #4 Direct Marketing Delivery Systems Advantages: l Specific targeting l Personalization l Variation of promotional offer l Consumer information l Flexibility l Circumvention of barriers Disadvantages: l High cost l Poor quality lists l Image problems

© 2000 South-Western College Publishing Slide #5 Structuring the Direct Mail Campaign l The direct mail offer l The letter l Timing l Response rates

© 2000 South-Western College Publishing Slide #6 Telemarketing l Telemarketing agencies l Inbound telemarketing l Network marketing

© 2000 South-Western College Publishing Slide #7 Sales Promotion Advantages: l Short-term sales increase l Defined target audience l Defined role/objectives l Indirect roles (e.g., wider distribution) Disadvantages: l Only short-term l Hidden costs l Confusion l Price cutting l Postponement effect l Significant government regulation l Lack of effectiveness sometimes

© 2000 South-Western College Publishing Slide #8 Types of Sales Promotion PromotionalpricingNonpricepromotionsSampling

© 2000 South-Western College Publishing Slide #9 Sales Promotion Promotional Pricing l Price reductions l Free goods l Tied offers l Coupons and virtual coupons l Cash refund l Money off next purchase l Loss leader pricing l Cheap credit

© 2000 South-Western College Publishing Slide #10 Sales Promotion: Nonprice Promotions l Contests l Free gifts l Self-supporting offers l Multibrand promotions l Guarantees and services

© 2000 South-Western College Publishing Slide #11 Sales Promotion: Sampling l Most effective in the early stages of a new product launch l Important for food products l Very expensive

© 2000 South-Western College Publishing Slide #12 Trade Shows Maintain relationship Transmit messages to key accounts to key accounts Remedy problems Add-on sales Selling objectives Nonselling objectives Currentcustomers Potentialcustomers Maintain image Test products Gather competitive intelligence intelligence Widen exposure Contact prospects Determine needs Transmit messages Commit to call back or sale or sale Contact prospects Foster image building Test products Gather competitive intelligence intelligence

© 2000 South-Western College Publishing Slide #13 Public Relations l Media contact l News stories l Press office l Corporate public relations l Defensive l Proactive