1. MKM803 – Direct Marketing

2. Types of Sales Promotion Activities
Consumer-Oriented
Trade-Oriented
Samples
Samples
Contests, Dealer Incentives
Contests, Dealer Incentives
Coupons
Coupons
Trade Allowances
Trade Allowances
Premiums
Premiums
Point-of-purchase Displays
Point-of-purchase Displays
Contests/sweepstakes
Contests/sweepstakes
Training Programs
Training Programs
Refunds/rebates
Refunds/rebates
Trade Shows
Trade Shows
Bonus Packs
Bonus Packs
Cooperative Advertising
Price-off Deals
Price-off Deals
Frequency Programs
Frequency Programs
Event Marketing
Event Marketing

3. 1. Strategic Tools/Options
Franchise Building Promotional Objectives
Communicate Distinctive Brand Attributes
Communicate Distinctive Brand Attributes
Develop and Reinforce Brand Identity
Develop and Reinforce Brand Identity
Build Long-term Brand Preference
Build Long-term Brand Preference
Franchise Building Techniques and Practices
“Frequency” Programs Encourage Repeat Purchase
“Frequency” Programs Encourage Repeat Purchase
“Frequency” Programs Encourage Patronage Loyalty
“Frequency” Programs Encourage Patronage Loyalty
May Improve One-on-one Communications

4. Objectives of Trade Sales Promotion
Obtain Distribution of New Products
Obtain Distribution of New Products
Maintain Trade Support for Existing Products
Maintain Trade Support for Existing Products
Objectives
Build Retail Inventories
Encourage Retailers to Display Existing Brands
Encourage Retailers to Display Existing Brands

5. Trade Sales Promotion Strategy Options
Contests and Incentives
Events
Buying Allowances
Promotional Allowances
Slotting Allowances
Trade Allowances
Point-of-Purchase Displays
Sales Training Programs
Trade Shows
Cooperative Advertising

6. Strengths of Public Relations
Credibility
Credibility
Image Building
Cost Savings
Cost Savings
PR Provides
Selectivity
Selectivity
Avoidance of Clutter
Avoidance of Clutter
Lead Generation
Lead Generation

7. Limitations of Public Relations
Weakens Brand or Corporate Identification Effect
Weakens Brand or Corporate Identification Effect
Public Relations
May Deliver Inconsistent Message

8. News Media Tactics PR Tools Press Conferences Press Conferences
Press Releases
Press Releases
Interviews
Press Conferences
Press Conferences
PR Tools
The Internet
The Internet
Exclusives
Exclusives
Community Involvement
Community Involvement

9. Sponsorship Sponsorship Sporting Events Causes Cultural Events Arts
Music, Entertainment
Festivals
Sporting
Events
Music, Entertainment
Causes
Festivals
Cultural Events

10. Direct Marketing
“The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a prospective customer.”
Catalog Selling
Direct Selling
Telemarketing
TV Selling
Direct Action Advertising
Direct Mail
TV Selling
Catalog Selling
Direct Mail
Direct Selling
Direct Action Advertising

11. Growth of Direct Marketing
Consumer Credit Cards
Consumer Credit Cards
Changing Structure of Society
Changing Structure of Society
Direct Marketing Syndicates
Direct Marketing Syndicates
Technical Advances
Technical Advances
Miscellaneous factors

12. Direct Marketing Program Plan
Companies must determine:
What program’s objectives will be.
Who to target by using a database.
What direct marketing strategy will be employed.
How to measure direct marketing effectiveness.

13. 1. Direct Marketing Objectives
Behavioural Response
Behavioural Response
Build an Image
Build an Image
Objectives
Customer Relationship Management
Inform and/or Educate
Inform and/or Educate

14. 2. Target Database Stimulating repeat purchases Uses of Databases
Improving selection of market segments
Cross-selling
Developing a Database—one of the most important parts of the direct marketing program is the development of a database. The database is the foundation from which direct marketing decisions evolve. Figure 15-3 shows how database marketing works and 15-4 demonstrates typical database content. Keys points on where to obtain a database and the need to update the files are highlighted. Databases are used to perform the following functions:
Improving the selection of market segments
Stimulate repeat purchases
Cross-sell
Customer relationship management
Key database sources and a method of assessing the effectiveness of database are identified
Manage customer relationships

15. 2. Database Marketing – How It Works

16. 2. Sources of Database Information
Statistics Canada
Canada Post
List Services
Info Canada
Marketing Research Houses

17. 3. Direct Marketing Media Strategy
One Step
One Step
Two Step
The medium is used directly to obtain an order.
Often use 800 number phone orders and credit card payment.
Use one medium to obtain inquiry, qualify prospect.
Typically follow up with another medium to complete sale.
Direct Marketing Media Strategy—direct marketers generally pursue either a (1) one-step approach or a (2) two-step approach in developing media strategies. In the one-step approach, the medium is used to directly obtain an order (for example, direct response television ads). In the two-step approach, more than one medium may be used, with the first effort designed to screen or qualify buyers and the second designed to generate the response. A number of direct response media are available to the marketer including:
Direct mail—mail order sales in Canada exceeded $16 billion in 2000, and more than half of this was in the consumer market. Keys to the success of direct mail are the mailing list and the ability to segment markets.
Catalogues—catalogue sales are expected to grow significantly. Examples of successful catalogue retailers are described.
Broadcast media—two broadcast media are available to direct marketers: TV and radio. The majority of direct marketing broadcast advertising now occurs on TV through the use of Infomercials, Advertorials, and Teleshopping.
Print media—magazines and newspapers are difficult media to use for direct marketing because of clutter and the relative expense.
Telemarketing—consumer and business-to-business telemarketing sales exceeded $16 billion in 2000 of which $7 billion represented dales to consumers.

18. 3. Direct Marketing Media
Direct Mail
Catalogues
Telemarketing
Infomercials
Direct Marketing Media Strategy—direct marketers generally pursue either a (1) one-step approach or a (2) two-step approach in developing media strategies. In the one-step approach, the medium is used to directly obtain an order (for example, direct response television ads). In the two-step approach, more than one medium may be used, with the first effort designed to screen or qualify buyers and the second designed to generate the response. A number of direct response media are available to the marketer including:
Direct mail—mail order sales in Canada exceeded $16 billion in 2000, and more than half of this was in the consumer market. Keys to the success of direct mail are the mailing list and the ability to segment markets.
Catalogues—catalogue sales are expected to grow significantly. Examples of successful catalogue retailers are described.
Broadcast media—two broadcast media are available to direct marketers: TV and radio. The majority of direct marketing broadcast advertising now occurs on TV through the use of Infomercials, Advertorials, and Teleshopping.
Print media—magazines and newspapers are difficult media to use for direct marketing because of clutter and the relative expense.
Telemarketing—consumer and business-to-business telemarketing sales exceeded $16 billion in 2000 of which $7 billion represented dales to consumers.
Broadcast Media
TV Advertorials
Teleshopping

19. Key variables in direct marketing
The list/media
Creative execution – copy and layout
The cornerstone of direct marketing is the ability to specifically target a prospect, either through media/list selection or through creative to create a measureable response.
The list/media - choosing the media or the list is key to reaching the right target group
Creative execution – copy and layout – getting people to open the envelope and read it
The offer – the proposition – how do you want them to respond?
The offer – call to action

20. Strengths and Limitations of Direct Marketing
Selective Reach
Selective Reach
Image Factors
Image Factors
Segmentation Capability
Segmentation Capability
Accuracy
Accuracy
Frequency Potential
Frequency Potential
Content Support
Content Support
Flexibility
Flexibility
Rising Costs
Timing
Timing
Personalization
Personalization
Economy
Economy
Measurement of Effectiveness
Measurement of Effectiveness