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

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 Explain the importance of databases to direct marketers Discuss the IMC role of personal selling Describe the advantages and drawbacks of personal selling Define sales promotion and its importance as a communications tool 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 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 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 Data management Customer lifetime value (LTV) Data access RFM formula

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

11. Exchanges perception, satisfaction Personal Selling: The Human Medium 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 Types of personal selling Advantages of personal selling Drawbacks of personal selling

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

13. Exchanges perception, satisfaction The Role of Sales Promotion in IMC Sales promotion Positive effect of sales promotion on brand volume Negative effect of sales promotion on brand value Direct inducement that offers incentives anywhere along the marketing route to enhance or accelerate the product’s movement from producer to consumer

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

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

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

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

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

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