Session 13: Direct Marketing, Personal Selling, Sales Promotion

Promotion includes marketing activities that communication info to/about
to consumers, about the org, directly/indirectly encourage exchange
(5) promotional mix
advertising, sales promotion, direct marketing, personal selling, public relations
Integrated Marketing Communications
Companies carefully integrate and coordinate their communications to deliver a clear, consistent, and compelling message
Challenges of IMC
Expensive
Hard to Execute/Coordinate
Difficult to measure the effectiveness of each effort
Too much can be a bad thing
Benefits of IMC
Prevent conflicting messages*, which can confuse a company an brand image
Reinforces your message through multiple channels
Creates Synergy (1+1>2)
3 promotional objectives
inform, persuade, remind
Pros of sales promotion
attract attention, increase incentive to purchase, encourage trial, fast ROI
cons of sales promo
short lived, danger of harming brand, doesn’t build loyalty
Popular tools for consumer sales promos
free samples, contests, sales, sweepstakes, rebates, coupons
popular tools for trade promotion
discounts, display allowances, free goods, push money, specialty advertising items
Pros/cons of personal selling
better relationships

long term commitment to high costs

personal selling is important if the product
has high value, is custom made, or is technically complex and there are few customers
pros/cons of direct marketing
Pros:
Less Public (individual)
Immediate communication
Customized/tailored
Allows for interaction
Well suited for building long-term relationships
Cons:
One-way communication
SPAM
Requires updating
8 forms of direct marketing
online marketing
digital tech
kiosks
tv
telemarketing
catalogue
direct mail
face to face selling
Permission Marketing
Send promotional information only to consumers who have given a company permission to do so
Loyalty Programs
rewards for purchases
what is the new marketing model of the next millenium
personalized engines i.e. amazon recommendations, google search engine optimization, bing personalized search
podcasts?
seen as credible now
pros / cons of public relations
Pros:
Believable Credible
Can be very experiential and impact purchase decisions at ever stage
Wide reach (don’t filter out, ads, etc.)
Cons
Must be managed extremely carefully
pros/ cons of advertising
Pros:
Reach a wide audience that can be geographically dispersed (mass audience)
Low cost per exposure
Message can be repeated many times
Provides legitimacy
Both for image building and generating sales
Cons
Very expensive $$$
Impersonal
Disruptive
One-way communication
Promotional Mix evaluative criteria
customer control over situation
amount of feedback
speed of feedback
direction of msg flow
control over msg content
identification of sponsor
speed in reaching large audiences
message flexibility
The Shifting Marketing Communications Model
β†’ Companies are doing less broadcasting and more narrowcasting (shift from traditional media towards social media/digital media)
Advertising + Personal Selling + Sales Promotions
+ Public Relations + Direct Marketing
=
Consistent, clear, compelling company and brand messages
[Promotional Mix Objectives]
Sales Promotion – coupons, rebates, contests, discounts, sales, to
(1) Attract consumer attention
(2) Offer strong incentives to purchase,
(3) Dramatize product offers,
(4) Encourage trial, or
(5) Boost sagging sales
Public Relations
believable; news stories, features, sponsorships, events that are more real to readers than ads are
Direct Marketing – direct mail and catalogues, online marketing, telephone marketing
(1) Less public
(2) Immediate
(3) Customized
(4) Interactive
The Nature of Personal Selling
Personal Selling
oldest professions; presentation by sales to make more sales and build customer relations
i.e. Dwight Schrute
Create loyalty because people trust them and want to work with them
β†’ Manipulation is short term
The Role of the Sales Force (2)
Link companies to consumers

Coordinate marketing and sales

Salesperson – individual representing a company to customers by performing one or more of the following activities
prospecting
communicating
selling
servicing
information gathering
relationship building
4 Targets of Promotions
Consumers, trade, business, sales force
Trade promotions
retailers and wholesalers
Reasons for rapid growth of Sales Promotions
(1) Product managers have greater pressure to increase current sales and promotions are effective short-term tools

(2) Companies face more competition and are as a result less differentiated

Major Sales Promotion Tools
(1) Samples
(2) Coupons
(3) Rebates
(4) Premiums (free or low cost)
(5) Price packs (savings off the regular price of a product β†’reduced directly on label of the package)
(6) Point of Purchase promotional displays
(7) Contests & Sweepstakes
(8) Event Marketing
Different types of Trade Promotions may include
(1) Contests
(2) Premiums
(3) Displays
(4) Price-Off: discount off the list price on each unit purchased during a stated period of time
(5) Offer free goods
(6) Push money -cash or gifts to dealers or sales forces to ‘push’ the manufacturer’s goods
(7) Give retailers Specialty Advertising Items i.e. pen/pencil with company name