Direct Marketing & Other promotional mix Methods

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1 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

2 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 to a target audience Stimulate demand Stay close to customers

3 A marketing database Customer Customer and and prospect prospect Transactional Transactional Marketing Marketing database database Promotional Promotional Product Product Geodemographi Geodemographi cc 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.

4 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 technology staff piloting the new system before full launch

5 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

6 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

7 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 Measurability

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

9 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)

10 Public relations and publicity Public Public Local Local communities communities Pressure Pressure groups groups Opinion Opinion leaders leaders General General public public Media Media TV TV Press Press Radio Radio ORGANIZATON ORGANIZATON Finance Finance Shareholders Stockbrokers Fund Fund managers Banks Banks Government Parliament Civil Civil service service Local Local authorities Commercial Customers Distribution Suppliers Emloyees Staff Staff Trades Tradesunions representatives The key tasks of publicity Three key tasks are: responding to requests from the media; supplying the media with on events relevant to the organization; stimulating the media to carry the and the viewpoint of the organization.

11 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

12 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.

13 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

14 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

15 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 Promoting anti-social behaviour

16 Thank you for your attention

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