1. McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. 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

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

19. 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