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8/14/2019 322 Advertising
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Direct Marketing
Use of consumer-direct channels to reach
and deliver goods and services to
customers without using
market middlemen.
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Direct Marketing
• Contacting the customer through offers directly
• Communication can be
personalized
• Short term effectiveness can
be easily measured
• Response rates are often low
• Poorly targeted directmarketing causes customer
annoyance
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Direct Marketing Channels
• Catalogs
• Direct mail
• Telemarketing• Web sites
• Email marketing
• Mobile devices• Interactive TV
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Public Issues in Direct
Marketing• Irritation
• Unfairness
• Deception/fraud• Invasion of privacy
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Constructing A Direct-Mail
CampaignEstablish objectives
Select target prospects
Develop offer elements
Test elements
Execute
Measure success
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RFM Formula for Selecting
Prospects• Recency
• Frequency
• Monetary value
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Elements of the Offer Strategy
• Product
• Offer
• Medium• Distribution method
• Creative strategy
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Components of the Mailing
• Outside envelope
• Sales letter
• Circular • Reply form
• Reply envelope
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Personal Selling
– This type of
promotion
requires contact
with potential
buyers
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Personal Selling
• Personal selling is a paid, personal form of
promotion.
• Involves two-way personal communication
between salespeople and individual
customers.
• Carried out through telephone, at
meetings, at retail outlets & door to door
selling
• High priced, low volume and highly
technical products rely heavily on personal
selling
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The Nature of Personal Selling
• Most salespeople are well-educated, well-trained professionals who work to build
and maintain long-term customer relationships.
• The term salesperson covers a wide rangeof positions:
– Order taker: Department store clerk
– Order getter: Creative selling in differentenvironments
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The Role of the Sales Force
• Salespeople:
– Probe customers to learn about problems
– Adjust marketing offers to fit special needs – Negotiate terms of sales
– Build long-term personal relationships
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The Role of the Sales Force
Sales Force serves as critical link betweencompany and its customers
They represent the company to the customers
They represent the customers to the company
Goal =
Customer Satisfaction and Company Profit
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Major types of sales jobs
• Creative selling
• Order taking
• Missionary selling
• Technical specialists
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Major Steps in Sales Force
Management
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Sales Force Structure
Territorial: Salesperson assigned to exclusivearea and sells full line of products
Product: Sales force sells only certain productlines
Customer: Sales force organizes along customer
or industry lines
Complex: Combination of several types of structures
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Recruiting and Selecting
Salespeople
• Key talents of salespeople:
– Intrinsic motivation
– Disciplined work style – Ability to close a sale
– Ability to build relationships with customers
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Supervising Salespeople
• Motivating Salespeople
– Organizational climate
– Sales quotas
– Positive incentives:
• Sales meetings
• Sales contests
• Recognition and honors• Cash awards, trips, profit sharing
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Major Steps in Effective Selling
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Personal Selling
• STRENGTHS
• Great attention
• Msg is customized
• Persuasive impact• Potential for
development of relationship
• Adaptable• Opportunity to close
sale call
• WEAKNESSES
- High cost
- Labor intensive
- Expensive- Can only reach a
limited no. of customers
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Promotional mix – comparison
Inexpensive, has high credibility
Tool Strengths Weaknesses
AdvertisingLarge audience, low cost per contact, can modify message
Overall expensive, difficult tomeasure effectiveness
Direct mailEffective when using targeted
and current mailing listReaches disinterested parties
and considered “junk”
Personal selling Tailored to each buyer,immediate buyer response
Expensive
TelemarketingImmediate feedback and
immediate buyer responseOften seen as intrusive
Word of mouthDifficult to manage
Sales promotionInexpensive, short-term sales
increasesNon-personal appeal
Public relations
Creates positive attitude about
product/firm
Non-personal appeal, hard ot
measure effectiveness
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What do they do?
• Advertising
– Creates awareness of a business’s product
• Public Relations
– Creates a favorable image for the business itself
• Sales Promotion
– Efforts stimulate sales
• Personal Selling – Builds on all of the other efforts by helping customers
complete the sale
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• A company wishes to launch a new
toothpaste which can effectively
prevent cavities and tooth decay.
But the toothpaste market is highly
crowded with multiple brands. If youwere to evolve a marketing
communication strategy ,how will
you proceed?• Which appeal will you use and
why??
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• A leading European
departmental store is all set toenter the Indian market.
Evolve an advertising strategy
for the store.
• Mention the objectives,
creative strategy and mediachoices.
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Placing ads and promotion online
• Context-Layout & design
• Content- text, pictures ,sounds, videos• Community- how the site enables user to user
communication
• Customization
• Communication-interactivity
• Connection- linkage to other sites
• Commerce- capabilities for commercial transactions
Web sites must express the firms’ purpose, history, products & vision
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Ease of Use and Attractiveness
• Ease of Use – Downloads quickly
– First page is easy to understand
– Easy to navigate
• Attractiveness – Clean looking
– Not overly crammed with content – Readable fonts
– Good use of color and sound
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Increasing Visits and Site
Stickiness• Deep information with links
• Changing news of interest
• Changing offers• Contests and sweepstakes
• Humor and jokes
• Games
Online Ads
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Online Ads• Banner ads
• Microsites- a limited area on the web managed andpaid for by an external advertiser/company
• Sponsorships- e.g podcasts
• Interstitials• Search-related ads & display ads
• Alliances
• Communities• WOM thru-Social networking sites-
myspace ,facebook
• Buzz & viral Marketing
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e-Marketing Guidelines
• Give the customer a reason to respond
• Personalize the content of your emails
• Offer something the customer could notget via direct mail
• Make it easy for customers to unsubscribe
Steps in establishing a relationship
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Steps in establishing a relationship
marketing program
Each organizationhas to look at
• its business offerings
• its resources and • most importantly its customer profile
To arrive at a suitable relationship marketing
program.
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The following outlines the
relationship marketing program
1. Identify the key customers meriting relationshipmarketing
2. Assign a skilled relationship manager to each
key customer 3. Develop a clear job description for relationship
managers
4. Appoint an overall manager to supervise the
relationship managers Have relationshipmanagers develop long-range goals and annualcustomer-relationship plans
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• The ad opens on Shah Rukh Khan speaking aboutrelationships in life.
• He says all relationships are based upon trust, same ashis with ICICI.
• He says how 2.5 crore Indians have entrusted this bank,making it India's second largest bank.
• He goes on to say that the bank is solid, responsible andtrustworthy, just like every relationship
• The ad ends as he says he trusts ICICI bank with hismoney and will always continue to do so.
ICICI Bank