1. Chapter 17 Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion

2. Chapter Overview
The importance of relationship marketing & integrating marketing communications with advertising

3. Chapter Objectives
Discuss the importance of relationship marketing & IMC
Describe the pros & cons of personal selling
Define direct marketing and its role in IMC
Define sales promotion & its importance as a communication tool
Explain the importance of databases to direct marketers
Identify benefits & draw-backs of sales promotion
Explain push & pull strategies and give examples of each
Discuss the role of personal selling in IMC

4. Relationship Marketing & IMC
Advertising can create an image, but a reputation must be earned

5. Understanding Direct Marketing
Direct marketing is . . .
A measurable system of interactive marketing
Using one or more advertising media
To effect a measurable response and/or transaction
With this activity stored in a database

6. Direct Marketing Companies

7. Marketing Databases Marketing databases enable marketers to. . .
Target, segment, and grade customers
Store key customer information
Record customer & channel transactions
Measure efficiency of direct-response ads

8. Marketing Databases
Data Management
Data Access
Two Processes

9. Direct Marketing’s Role in IMC
RFM is a mathematical formula that helps determine the most valuable customers in a company’s database

10. Direct Marketing’s Role in IMC
Drawbacks to Direct Marketing
Negative, sales-oriented reputation
Consumers enjoy visiting retail stores to shop
Hesitation to buy goods not seen, touched, tried
Clutter
Privacy concerns
Lack of prestige

11. Direct Marketing Activities
Direct Sales
Personal direct selling
Telemarketing

12. Direct Marketing Activities
Direct-Mail Advertising
Sales letters
Postcards
Folders
Brochures
Self-mailers
Statement stuffers
House organs

13. Direct Marketing Advertising
Pros
Selectivity
Personal impact
Coverage & reach
Exclusivity
Flexibility
Response
Control
Testability

14. Direct Marketing Advertising
Cons
High cost per exposure
Delivery problems
Lack of content support
Selectivity problems
Negative attitudes
Environmental concerns
Anti-spam laws

15. Buying Direct-Mail Advertising
Acquire direct-mail lists
House
Mail-response
Compiled
Consider a list broker
Charges a commission
Tailors the list
Improves list quality

16. Buying Direct-Mail Advertising
Produce the package
Designer
Writer
Letter shop
Distribute the package
Weight affects costs and delivery method

17. Catalog sales make up the largest portion of direct marketing

18. Catalog Sales
Top 10 catalog companies

19. Direct Response Broadcast Ads
More people are watching infomericals and buying products

20. Direct Response Broadcast Ads
Television is a powerful instrument for direct marketers

21. Personal Selling depends on the…
The Human Medium
See the people
Most expensive
Long-term benefits
Personal Selling depends on the…
Type of business
Product or service
Business strategy

22. Personal Selling Drawbacks
Labor intensive
Costly
Time consuming
Few economies of scale
Poor reputation of sales
Finding good salespeople

23. Personal Selling in IMC
Communication functions of sales reps
Gathering Information for Company
Providing Information to Customers
Fulfilling Customer Orders
Building Client Relationships

24. Sweepstakes or contest
Sales Promotion in IMC
Value-added tool to accelerate product’s movement from producer to consumer
Rebate
Sweepstakes or contest
Coupon
“Freebie”
Sponsorship
Special pricing
Negative Effect on
Brand Value
Positive Effect on
Brand Volume

25. Sales Promotion in IMC
Snapple used sales promotion and product positioning to advertise its Mango Madness flavor

26. Meetings/Conventions
Strategies & Tactics
Push Promotions
Slotting Allowances
Premiums & Contests
Trade Deals
Display Allowances
Co-op Advertising
Buyback Allowances
Allowances
Push Money & Spiffs
Meetings/Conventions

27. Strategies & Tactics
Payne Heating and Cooling uses trade promotion to increase distribution

28. Manufacturers often pay a display allowance for
Strategies & Tactics
Manufacturers often pay a display allowance for
in-store exhibits

29. Strategies & Tactics Pull Promotions P-O-P Materials VIP Cards
Refunds & Rebates
Sampling
Combination Offers
Coupons
Contest/Sweepstakes
Premiums

30. Effectiveness of various promotions
Strategies & Tactics
Effectiveness of various promotions