Direct Marketing & Other promotional mix Methods

Direct Marketing & Other

promotional mix Methods

Uni.Vie.Marketing

Group9:Feraldi Zahir Ilka Djajakusuma Tanja Tratting Wei Huang

The Meaning of direct

Marketing

• Definition

• Covers a wide array of methods including – Direct mail

– Telemarketing

– Catalogue marketing – Electronic media

-direct response advertising -Mobile marketing

-door-to-door leafleting -inserts

Growth in direct marketing

activity

• Market and media fragmentation • Developments in technology

• The list explosion

• Sophisticated analytiacal techniques • Co-ordinated marketing systems

Database marketing

Definition

An interactive approach to marketing that uses individually a addressable marketing media and channels to:

• Provide information to a target audience • Stimulate demand

A marketing database

Customer and prospect information Customer and prospect information Transactional information Transactional

information PromotionalinformationPromotional_information

Product information

Product

information Geodemographic informationGeodemographi_{c information}

Marketing database Marketing database

Customer relationship

management

• Definition Customer relationshhip

management(CRM)) is the term that

describes the methodologies,technologies and e-commerce capabilities used by firms to manage customer relationships.

How might a marketing

database be used?

• Direct mail • Telemarketing

• Distributor management systems • Loyalty marketing

• Target marketing • Campaign planning • Marketing evaluation

Success factors in CRM

• having a customer orientation

• taking a single view of customers across departments

• having the ability to manage cultural change • involving users in the design process

• having a project champion on the board

• ensuring face-to-face contact between marketing and information technology staff

Managing a direct marketing

campaign

• Identify and understand the target

audience

• Campaign objectives • Media decisions

• Creative decisions

• Execute and evaluate the campaign

Managing a direct marketing campaign

Marketing straegy

Identigy and understand target auddience Campaign objectives Media decisions Crative decisions

Execute and evaluate campaign

Media decision

• Direct mail • Telemarketing • Mobile marketing

• Direct response advertising • Catalogue marketing

Ethical issues in direct

marketing

• The quantity of poorly targeted direct mail • The timing and intrusive nature of

telemarketing calls

• The content of direct mail envelopes • Invasion of privacy

Other promotional mix methods

The growth in sales promotion

• Increased impulse purchasing

• The growing respectability of sales promotions

• The rising cost of advertising and advertising clutter

• Shortening time horizons • Competitor activities

Major sales promotion types

• Money off • Bonus packs • Premiums • Free samples • Coupons

• Prize promotions (competitions draws and games) • Loyalty cards • Price discounts • Free goods • Competitions • allowances

Consumer and trade

promotions

Bonus packs Money off Premiums Coupons Allowances Competitions Free samples Prize promotions Free goods Price discounts Consumer promotions Trade promotions Loyalty cards

Sales promotion objectives

• Fast sales boost • Encourage trial

• Encourage repeat purchase

• Stimulate purchase of larger packs • Gain distribution and shelf space

Evaluating sales promotion

• Pre-testing research (group discussions hall tests and experimentation)

• Post-testing research (consumer panel and retail audit data)

Public relations and publicity

Public Local communities Pressure groups Opinion leaders General public Public Local communities Pressure groups Opinion leaders General public Government Parliament Civil service Local authorities Government Parliament Civil service Local authorities Commercial Customers Distribution Suppliers Commercial Customers Distribution Suppliers Finance Shareholders Stockbrokers Fund managers Banks Finance Shareholders Stockbrokers Fund managers Banks Emloyees Staff Trades unions representatives Emloyees Staff Trades unions representatives ORGANIZATON ORGANIZATON Media TV Press Radio Media TV Press Radio

The key tasks of publicity

• Three key tasks are: responding to

requests from the media; supplying the media with information on events relevant to the organization; stimulating the media to carry the information and the viewpoint of the organization.

Characteristics of publicity

• The characteristics of publicity are that the message has higher credibility than

advertising, there are no direct media costs and no control over what is

published (content), whether the item will be published or when it will be published.

Writing news releases

• The headline

• Opening paragraph • Organizing the copy • Copy content

• Length • Layout

Sponsorship

• The objectives of sponsorship

gaining publicity creating entertainment opportunities fostering favourable

brand and company associations improving community relations creating promotional opportunities

• The two key methods of sponsorship are event spoonsorship and broadcast

sponsorship

Selection and evaluation of an

event or programme to sponsor

• Selection communications objectives target market risk promotional opportunities past record cost

• Evaluation should be based on measuring results in terms of sponsorship objectives.

Exhibitions

Objectives

• Maintain image and gather competitive intelligence

• Recruit dealers and distributors • Introuduce a new product

Exhibitions

Staff conduct

• A good exhibitor should have following

characteristics:

• Well-informed staff

• Staff always in attendance at the stand • Exhibiting a wider range of products

Exhibitions

Evaluation

• The number of visitors to the stand • How many enquires are generated • The cost per enquiry

• The cost per order

• The promotion of brand values

Product placement

• The Growth in product placement

Mass-market reach Positive associations Credibility Message repetition Targeting Branding opportunities Promotional opportunities Measurement

Risks associated with

product placement

• Movie/programme failure • Lack of prominence • Audience annoyance • Loss of control

Ethical issues in sales

promotion and public relations

• Use of trade inducements • Malredemption of coupons • Third-party endorsements