2. chapter 16 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. IMC: Direct Marketing, Personal Selling and Sales Promotion

3. 16-3 Chapter 16 Objectives Discuss the importance of relationship marketing & 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 & drawbacks of personal selling Define sales promotion & its importance as a communications tool Explain push and pull strategies & give examples of each Identify benefits & drawbacks of sales promotion

4. 16-4 By Using Linkage Media Understanding Direct Marketing & Its Role in IMC Direct marketing is communication that... Generates Store or Business Traffic Generates Direct Orders Prompts Information Requests (Leads) Builds & Maintains a Customer Database Loyalty Programs Customer Lifetime Value (CLV)

5. 16-5 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

6. 16-6 Direct Mail Types of Direct Marketing Catalog Direct Response Ads

7. 16-7 Types of Direct Marketing L.L. Bean’s catalog makes it convenient for customers to order the company’s products from home

8. 16-8 Types of Direct Marketing Direct Mail Interactive Broadcast Print Catalog Direct Response Ads

9. 16-9 Advantages:  Most persuasive  Best way to establish a relationship  Interactive Drawbacks:  Labor intensive  Cost  Reputation  Easy to ruin relationship Advantages:  Cost  Customer acceptance  Interactive Types of Direct Marketing Personal Telemarketing Direct Selling

10. 16-10 Role of Personal Selling in IMC Communication functions of sales representatives Building Client Relationships Gathering Information for Company Fulfilling Customer Orders Providing Information to Customers

11. 16-11 Trade Shows Trade Show Booths and Exhibits Planning Promotion Budgeting People Productivity

12. 16-12 Trade Shows How customers learn about trade shows

13. 16-13 Negative Effect on Brand Value Positive Effect on Brand Volume Role of Sales Promotion in IMC Value-added tool to accelerate product’s movement from producer to consumer rebate sweepstakes or contest coupon“freebie” sponsorship special pricing

14. 16-14 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

15. 16-15 Types of Trade Promotions Sales Promotion Strategies and Tactics Slotting AllowancesTrade Deals Display AllowancesBuyback Allowances Allowances Meetings/Conventions Premiums & Contests Push Money & Spiffs Co-op Advertising Push Producer End users Resellers Marketing Communications

16. 16-16 Sales Promotion Strategies and Tactics Rapala uses trade promotion to increase distribution

17. 16-17 Sales Promotion Strategies and Tactics Manufacturers like DeWalt often pay a fee for in- store exhibits

18. 16-18 Sales Promotion Strategies and Tactics Pull Producer End users Resellers Marketing Communications Types of Sales Promotions P-O-P MaterialsVIP Cards Refunds & RebatesSampling Combination Offers Coupons Contest/Sweepstakes Premiums

19. 16-19 Sales Promotion Strategies and Tactics Effectiveness of various promotions