1. AB 219 Marketing Unit Eight The Promotion Mix Components Note: This seminar will be recorded by the instructor.

2. Review of Unit 7 How did Unit 7 go? Questions or concerns? Instructor suggestions for Unit 8 How is the Research Project due this week coming? Additional questions?

3. Our Topics for This Week Direct and online marketing- The fifth element of the promotional mix

4. Review: The Promotion Mix Advertising Public Relations/Publicity Personal Selling Sales Promotion Covered in last week’s seminar

5. Review- Advertising Paid non-personal communication through mass media Advantages -Cost efficient on a per person reached basis -Highly flexible, and allows for repetition -Adds value -Lends legitimacy Disadvantages -Out of pocket outlay is high -Hard to measure sales effect unless source coding is used -Feedback usually slow

6. Review- Public Relations Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity. Individual brands generally have publicity/public relations done at the corporate level. Some people call this “free advertising,” but is can be expensive and must be done well to be effective. Examples?

7. Review- Personal Selling Paid Personal Communication Advantages -Provides significant impact on customers due to personal contact -Interactive- Allows for immediate impact and adjustment Disadvantages -Costly- most costly part of promotion based on people reached

8. Review- Sales Promotion Direct incentive to buy Growing rapidly due to its effectiveness May be directed at salespeople, resellers, and consumers- anywhere in the distribution chain Examples include free samples, coupons, contests, premiums, rebates, buy one get one frees, frequent buyer programs, etc.

9. Direct Marketing Directly connecting with targeted consumers to bring about an immediate response and foster long term relationships.

10. Advantages of Direct Marketing Benefits to Buyers -Convenience- Avail at a time of their choosing -Easily accomplished and can be done in privacy of home -Many products are available -Information on product can be plentiful -Possibility for interactivity -Purchase can be immediate- even in the middle of the night

11. Advantages of Direct Marketing- cont. Advantages to sellers- - Can be low cost when effectively targeted -It can be efficient with formatted information being obtained -Transactions can be quickly accomplished -It can be flexible -Access to buyers can increase due to consumer accessibility -Database use and access to past orders can facilitate development of future offers

12. Types of Direct Marketing Direct Mail- The use of a physical or virtual address to promote products -Can be very selective -Very flexible- offers can vary -Very easily measures response rates Catalog Marketing- Print, video or digital catalogs that allow customers to place orders mail, telephone or online -Brings offerings to people in all locations -Online versions can be updated continually and new products added

13. Types of Direct Marketing- cont. Telemarketing- The performance of marketing-related activities by telephone - Useful for sales lead generation, raising funds, and gathering marketing data -Outbound and inbound operations Direct-Response Television Marketing- Use of the TV to direct market to consumers -Allows for demonstrating and explaining products -QVC and Home Shopping Network are most popular, but infomercials are also popular.

14. Types of Direct Marketing- cont. Kiosk Marketing- The use of self-serve machines that allow consumers to order products or get information. Digital Direct Marketing Technologies- Provide ordering, marketing and interactive marketing opportunities through mobile phones, hand-held devices and television.

15. Online Marketing The use of the internet to sell products and foster customer relationships The fastest growing form of direct marketing Two types of marketers- -Click only- No traditional physical presence -Click and mortar- Have both online and physical presence

16. Online Domains Business-to-Consumer (B2C) -Online selling of products to final consumers -Influences over a third of all retail sales Business-to-Business (B2B) -- Allow business buyers fast access to purchase and handle purchase issues -Custom web sites can be provided for large business clients

17. Online Domains- Cont. Consumer-to-Consumer (C2C) -Consumers selling to other consumers -Online auctions, blogs, online personal ad sites Consumer-to-Business (C2B) -Consumers search out businesses to buy from and to provide comments to

18. Setting up an Online Presence Website -Should be well designed and laid out -Ordering should be easy and secure -Information that buyers need readily accessible -It is best to have non-internet contact available -Change to keep the site fresh and people coming back

19. Setting up an Online Presence- cont. Placing ads or promotions online- there are several forms -Banner ads -Pop-ups -Search ads -Affiliate programs -Alliances -Viral marketing

20. Setting up an Online Presence- cont. Online Social Networks -Websites that foster social interaction that includes sharing information and information exchange -Participate in existing sites or create one -Facebook, Linkedin, YouTube, Twitter Using E-mail -Sending solicited or unsolicited mailings to people online -Effective if people have requested e-mails or can opt out easily -Problem of cyber junk mail- spamming

21. Any Questions? Thank you for attending! See you next week!