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

Print

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