Chapter 10: Direct Marketing and Sales Promotion

direct marketing
form of advertising, is the process by which organizations communicate directly with target customers to generate a response or transaction
direct marketing is a form of
personal selling
direct sellers
sell to consumers at their homes or jobs
direct marketing focuses on encouraging consumers to make an immediate purchase decision
Facebook is the worlds first
global directing marketing company
direct marketing is one of the most
powerful promotion mix strategies to help a fashion brand develop an IMC program
Advantages of Direct Marketing
-shopping convenience
-instant payment by credit card
-selective reach and segmentation
-frequency
-effectiveness
Disadvantages of direct marketing
-Image-not always positive
-Accuracy -database not always accurate
direct response media
provide information to an audience and provide advertisers with an environment to reach that audience with their promotion message
direct response media includes:
-direct mail
-catalogs
-telemarketing
-broadcast media
direct mail
pieces are direct response messages delivered through the mail, often known as junk mail
catalogs
published list of all items for sale, consumers use catalogs to find products not found in local areas, people spend an average of $850 on catalogs a year
telemarketing
solicitation by telephone, has a bad reputation
-disadvantages: higher costs and difficulty reaching potential customers
broadcast media
the majority of direct response broadcast advertising is conducted through television
The three types of direct response on tv:
-tv spots- less than 30 min
-infomercials: 30-60 min tv commercials
-home shopping: QVC shop via tv
database management
companies use a consumer database to identify target consumers
cross selling
the sale of additional products and services to the same consumer
In house lists
are developed, owned, and maintained by the direct marketing company
data warehousing
in which all databases within a firm are maintained in one location and are accessible to personnel at any location
sales promotion
refers to those activities that provide extra value or incentives to customers, employees or distributor to generate immediate sales
techniques to accomplish consumer orientated sales promotion
-sampling
-coupons
-promotional products
-gift with purchase
-contests and sweepstakes
-refunds and rebates
-bonus packs
-price off deals
-reward programs and frequent buying clubs
-deferred billing
incentives are used to
stimulate immediate sales
coupons
are vouchers that entitle the bearer to benefits such as cash refund, or a gift when redeemed
promotional products
a product that promotes a companys brand, usually imprinted with the companys name, logo, or message
gift with purchase
incentives used by fashion brands to create immediate or limited sales
contests and sweepstakes
are promotions in which consumers compete for a prize based on skill and ability, sweepstakes are promotions in which winners are determined solely by chance and allow fashion brands to collect consumer data
refunds and rebates
are offers by brands to return a portion of the product purchase price
refund
money given directly to the consumer at the point of sale
rebate
is price deduction given upon proof of purchase
price off deals
reduce the price of an item, offering immediate incentive to the consumer, offers immediacy and encourages the consumer to buy a large volume of the product
reward programs
reward frequent buyers for their purchases with incentives such as money-off coupons, gifts, invitations, and other benefits
deferred billing
allows the customer to postpone or delay payment for the purchase, used to accelerate purchases when money is limited
trade oriented sales promotion
this promotion supports new products and established brands, encourages retailers to promote brands and build inventories
techniques to accomplish trade oriented sales promotion
-trade allowance
-incentive programs
-display and point of purchase materials
-cooperative advertising
trade allowances
offer retailers monetary discounts on the price of merchandise as an incentive to stock and display merchandise from a specific vendor
buying allowances
is a price reduction on merchandise purchased during a limited period
promotional allowances
are incentives from brands to retailers for performing certain promotional activities to support their brand
slotting allowances
these allowances are fees paid to retailers to provide a position or slot to accommodate the new product
incentive programs
are motivational tools designed to increase the productivity of retail sales associates
fashion brands sponsor
sales training programs as incentive programs for sales associates to increase sales associate brand knowledge
point of purchase
use fixtures created by brands and distributed to retailers, displays, signs structures and devices are used to identify, advertise and merchandise an outlet, service or product and serve as an aid to selling
cooperative advertising
is a sponsored promotion in which the brand works with the retailer to develop an ad and shares in the cost of running that ad as a trade oriented sales promotion