MGT301 Principles of Marketing Lecture-38

Summary of Lecture-37

Supervising Salespeople Motivating Salespeople

Evaluating Salespeople

Direct Marketing

Better targeting reduces waste Better targeting reduces waste Breaks through ad clutter Breaks through ad clutter

Advantages of Direct Marketing Factors Driving Direct Marketing Growth

Predictive Modeling Predictive Modeling Customized Products Customized Products Convenience Fragmented Markets Fragmented Markets Shrinking Media Audiences Shrinking Media Audiences Immediate Sales Immediate Sales Price Sensitivity Price Sensitivity

Forms of Direct Marketing

Direct Mail Kiosk Marketing Online Marketing Telemarketing Direct-Response TV Marketing Catalog Face-to-Face Selling

Customer Databases

Identifying Prospects Deciding Which Customers Should Receive a Particular Offer Deciding Which Customers Should Receive a Particular Offer Deepening Customer Loyalty Reactivating Customer Purchases How Companies Use Their Databases ?

Today’s Topics Other Marketing Applications through Databases

Match profiles to cross-sell other products to customers Match profiles to cross-sell other products to customers Modify marketing messages based on customer profiles Modify marketing messages based on customer profiles Reach out to customers to reinforce the purchase decision Reach out to customers to reinforce the purchase decision Find new customers Find new customers Gain insight into who is purchasing products Gain insight into who is purchasing products Improve customer service Improve customer service

Marketing databases can be costly and time consuming. Marketing databases can be costly and time consuming. Databases need to be carefully planned. Databases need to be carefully planned. Consumer privacy issues. Consumer privacy issues. Disadvantages

Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits. Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits. Marketers seek to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs. Marketers seek to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs. Integrated Direct Marketing

Ethical Issues in Direct Marketing

Irritation to Consumers Unfairness, Deception, or Fraud Invasion of Privacy

Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events. Public Relations

Major functions are: – Press Relations – Product Publicity – Public Affairs – Lobbying – Investor Relations –Development

Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations The Role of Public Relations

The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Major Public Relations Tools

Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials Speeches News Audiovisual Materials Audiovisual Materials Public Service Activities Public Service Activities Web Site

New product publicity New product publicity Consumer education Consumer education Event sponsorship Event sponsorship Issue sponsorship Issue sponsorship Company websites Company websites Other PR Tools Press releases Press releases Press conferences Press conferences Exclusives Exclusives Interviews Interviews Community involvement Community involvement

Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results Major Public Relations Decisions

Public information about a company, good, or service appearing in the mass media as a news item. Publicity

Stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations. Stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations. Publicity is more credible to consumers than any other promotional mix element.24 Publicity is more credible to consumers than any other promotional mix element.24 Although publicity is generally thought of as not paid for, firms incur publicity-related expenses that include the cost of employing marketing personnel assigned to create and submit publicity releases, printing and mailing costs, and related expenses.

Inserts Inserts Enclosures Enclosures Annual reports Annual reports Posters Posters Bulletin boards Bulletin boards Exhibits Exhibits Audiovisuals Audiovisuals Position papers Position papers Speeches Speeches News releases News releases Media kits Media kits Booklets Booklets Leaflets Leaflets Brochures Brochures Manuals Manuals Books Books Letters Letters Promotional Publications

Enough for today...

Integrated Direct Marketing Summary Public Relations

Major functions are: – Press Relations – Product Publicity – Public Affairs – Lobbying – Investor Relations –Development

Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations The Role of Public Relations

Major Public Relations Tools

Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials Speeches News Audiovisual Materials Audiovisual Materials Public Service Activities Public Service Activities Web Site

Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results Major Public Relations Decisions

Public information about a company, good, or service appearing in the mass media as a news item. Publicity

Review 4th P (Promotion) Next….

MGT301 Principles of Marketing Lecture-38