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chapter10
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinContemporary Advertising, 11e
Relationship Building:Direct Marketing,
Personal Selling, & Sales Promotion
The importance of relationship marketing and how to integrate
marketing communicationswith advertising
Chapter
10-3
Chapter 10 Objectives
Discuss the importance of relationship marketing & IMC
Define direct marketingand its role in IMC
Explain the importance of databases to direct marketers
Discuss the IMC role of personal selling
Describe the advantages & drawbacks of personal selling
Define sales promotion& its importance as a communications tool
Explain push and pull strategies & giveexamples of each
Identify benefits & drawbacks of sales promotion
10-4
By Using Linkage Media
Understanding Direct Marketing & Its Role in IMC
Direct marketing is communication that . . .
GeneratesStore or Business
Traffic
GeneratesDirectOrders
PromptsInformation Requests (Leads)
Builds & Maintains a Customer Database
Data Management
DataAccess
ReachFrequencyMonetary
10-5
Understanding Direct Marketing & Its Role in IMC
Largest U.S. direct-response agencies
Insert ex. 10-1, p. 310
Direct-response agencies chart
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution: 300 dpi
10-6
Understanding Direct Marketing & Its Role in IMC
RFM analysisof accounts
Insert ex. 10-2, p. 312
RFM analysis of accounts
Position = 0.35” horiz., 2.4” vertical
Size = 8.3” WIDE
Resolution: 300 dpi
10-7
Understanding Direct Marketing & Its Role in IMC
Negative, sales-oriented reputation of direct marketing
Enjoyment of visiting retail stores
Hesitation to buy goods not seen, touched, or tried
Privacy concerns
Glut of direct marketing messages
Lack of prestige of direct marketing media
Drawbacks to Direct Marketing
10-8
DirectMail
Types of Direct Marketing
Catalog
DirectResponse
Ads
10-9
Types of Direct Marketing
Insert ex. 10-3, p. 317
Top catalog companies
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution: 300 dpi
Top 10 catalog companies
10-10
Types of Direct Marketing
DirectMail
Interactive Broadcast
Catalog
DirectResponse
Ads
10-11
Advantages:
Mostpersuasive
Best way toestablish arelationship
Interactive
Drawbacks:
Laborintensive
Cost Reputation Easy to ruin
relationship
Advantages:
Cost Customer acceptance Interactive
Types of Direct Marketing
Personal TelemarketingDirectSelling
10-12
Types of Direct Marketing
J. Crew’s catalog makes it convenient for customers to order the company’s products from home
Insert photo 10.8, p. 316
J. Crew catalog cover phot
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution: 300 dpi
10-13
Role of Personal Selling in IMC
Communication functions of sales representatives
Building Client
Relationships
GatheringInformation
for Company
FulfillingCustomer
Orders
Providing Information to
Customers
10-14
Negative Effect on
Brand Value
Positive Effect on
Brand Volume
Role of Sales Promotion in IMC
Value-added tool to accelerate product’smovement from producer to consumer
rebate sweepstakesor contestcoupon “freebie”
sponsorshipspecialpricing
10-15
Snapple used sales promotion and product positioning to advertise its Mango Madness flavor
Insert photo 10.15, p. 323
Snapple ad
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution: 300 dpi
Role of Sales Promotion in IMC
10-16
Types of Trade Promotions
Sales PromotionStrategies and Tactics
Slotting Allowances Trade Deals
Display Allowances Buyback Allowances
Allowances Meetings/Conventions
Premiums & Contests
Push Money & Spiffs
Co-op Advertising
Push
ProducerEnd
usersResellersMarketing
CommunicationsMarketing
Communications
10-17Sales PromotionStrategies and Tactics
Payne Heating and Cooling uses trade promotion to increase distribution
Insert photo 10.16, p. 326
Payne Heating and Cooling ad
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution: 300 dpi
10-18Sales PromotionStrategies and Tactics
Manufacturers like HP and Microsoft often pay a fee for in-store exhibits
Insert photo p. 327
Microsoft/HP in-store exhibit photo
Position = 2.9” horiz., 1.5” vertical
Size = 4.6” TALL
Resolution: 300 dpi
10-19Sales PromotionStrategies and Tactics
Pull
ProducerEnd
usersResellersMarketing
Communications
Marketing Communications
Marketing Communications
Types of Sales Promotions
P-O-P Materials VIP Cards
Refunds & Rebates Sampling
Combination Offers
Coupons
Contest/Sweepstakes
Premiums
10-20Sales PromotionStrategies and Tactics
Effectiveness of various promotions
Insert ex. 10-6, p. 331
Effective sales promotion techniques
Position = 0.35” horiz., 2.75” vertical
Size = 8.3” WIDE
Resolution: 300 dpi