MKM803 – Direct Marketing

Types of Sales Promotion Activities

SamplesSamples

CouponsCoupons

PremiumsPremiums

Contests/sweepstakesContests/sweepstakes

Refunds/rebatesRefunds/rebates

Bonus PacksBonus Packs

Price-off DealsPrice-off Deals

Frequency ProgramsFrequency Programs

Cooperative AdvertisingCooperative Advertising

Trade AllowancesTrade Allowances

Training ProgramsTraining Programs

Contests, Dealer IncentivesContests, Dealer Incentives

Point-of-purchase DisplaysPoint-of-purchase Displays

Trade ShowsTrade Shows

Event MarketingEvent Marketing

SamplesSamples

CouponsCoupons

PremiumsPremiums

Contests/sweepstakesContests/sweepstakes

Refunds/rebatesRefunds/rebates

Bonus PacksBonus Packs

Price-off DealsPrice-off Deals

Frequency ProgramsFrequency Programs

Trade AllowancesTrade Allowances

Training ProgramsTraining Programs

Contests, Dealer IncentivesContests, Dealer Incentives

Point-of-purchase DisplaysPoint-of-purchase Displays

Trade ShowsTrade Shows

Event MarketingEvent Marketing

Consumer-OrientedConsumer-Oriented Trade-OrientedTrade-Oriented

1. Strategic Tools/Options

Communicate Distinctive Brand

Attributes

Communicate Distinctive Brand

AttributesBuild Long-term

Brand PreferenceBuild Long-term

Brand PreferenceDevelop and

Reinforce Brand Identity

Develop and Reinforce Brand

Identity

“Frequency” Programs

Encourage Repeat Purchase

“Frequency” Programs

Encourage Repeat Purchase

“Frequency” Programs Encourage

Patronage Loyalty

“Frequency” Programs Encourage

Patronage Loyalty

“Frequency” Programs Encourage

Patronage Loyalty

“Frequency” Programs Encourage

Patronage Loyalty

“Frequency” Programs

Encourage Repeat Purchase

“Frequency” Programs

Encourage Repeat Purchase

Build Long-term Brand PreferenceBuild Long-term

Brand PreferenceDevelop and

Reinforce Brand Identity

Develop and Reinforce Brand

Identity

Communicate Distinctive Brand

Attributes

Communicate Distinctive Brand

Attributes

Franchise Building Promotional ObjectivesFranchise Building

Promotional Objectives

Franchise Building Techniques and Practices

Franchise Building Techniques and Practices

May Improve One-on-one

Communications

May Improve One-on-one

Communications

Objectives of Trade Sales Promotion

Encourage Retailers to Display

Existing Brands

Encourage Retailers to Display

Existing Brands

Encourage Retailers to Display

Existing Brands

Encourage Retailers to Display

Existing Brands

Obtain Distribution of New Products

Obtain Distribution of New Products

Maintain Trade Support for Existing

Products

Maintain Trade Support for Existing

Products

Build Retail InventoriesBuild Retail Inventories

Maintain Trade Support for Existing

Products

Maintain Trade Support for Existing

ProductsObtain Distribution

of New ProductsObtain Distribution

of New Products

ObjectivesObjectives

Trade Sales Promotion Strategy Options

Trade ShowsTrade Shows

Contests and IncentivesContests and Incentives

Trade AllowancesTrade Allowances

Point-of-Purchase Displays

Point-of-Purchase Displays

Sales Training ProgramsSales Training Programs

Cooperative AdvertisingCooperative Advertising

Buying Allowances

Buying Allowances

Promotional Allowances

Promotional Allowances

Slotting Allowances

Slotting Allowances

EventsEvents

Strengths of Public Relations

CredibilityCredibility

Lead Generation

Lead Generation

Cost SavingsCost Savings

Avoidance of Clutter

Avoidance of Clutter

Image Building Image Building

SelectivitySelectivitySelectivitySelectivity

Lead Generation

Lead Generation

Avoidance of Clutter

Avoidance of Clutter

Cost SavingsCost Savings

CredibilityCredibility

PRProvides

PRProvides

Limitations of Public Relations

Weakens Brand or Corporate Identification Effect

Weakens Brand or Corporate Identification Effect

May Deliver Inconsistent Message

May Deliver Inconsistent Message

Weakens Brand or Corporate Identification Effect

Weakens Brand or Corporate Identification Effect

Public Relations

Public Relations

News Media Tactics

Press Releases

Press Releases

Community Involvement Community Involvement

Press Conferences

Press Conferences

ExclusivesExclusives

Interviews Interviews

The Internet The Internet

PR ToolsPR Tools

Press Releases

Press Releases

Community Involvement Community Involvement

Press Conferences

Press Conferences

ExclusivesExclusives The Internet The Internet

Sponsorship

SportingEvents

SportingEvents

Music, Entertainment

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events ArtsArts

SportingEvents

SportingEvents

Music, Entertainment

Music, Entertainment

CausesCauses FestivalsFestivals

Cultural EventsCultural Events

SponsorshipSponsorship

Direct Marketing

Catalog SellingCatalog Selling

Direct SellingDirect Selling Direct Action AdvertisingDirect Action Advertising

Direct MailDirect MailTelemarketingTelemarketing

TV SellingTV SellingCatalog SellingCatalog Selling TV SellingTV Selling

Direct MailDirect Mail

Direct Action AdvertisingDirect Action AdvertisingDirect SellingDirect Selling

“The total of activities by which the seller directs efforts to a target audience using one or

more media for the purpose of soliciting a response by phone, mail, or personal visit from

a prospective customer.”

“The total of activities by which the seller directs efforts to a target audience using one or

more media for the purpose of soliciting a response by phone, mail, or personal visit from

a prospective customer.”

Growth of Direct Marketing

Miscellaneous factorsMiscellaneous factors

Technical AdvancesTechnical Advances

Direct Marketing SyndicatesDirect Marketing Syndicates

Changing Structure of SocietyChanging Structure of Society

Consumer Credit CardsConsumer Credit Cards

Technical AdvancesTechnical Advances

Direct Marketing SyndicatesDirect Marketing Syndicates

Changing Structure of SocietyChanging Structure of Society

Consumer Credit CardsConsumer Credit Cards

Direct Marketing Program Plan

Companies must determine:1. What program’s objectives will be.

2. Who to target by using a database.

3. What direct marketing strategy will be employed.

4. How to measure direct marketing effectiveness.

1. Direct Marketing Objectives

Behavioural ResponseBehavioural Response

Build an ImageBuild an Image

Inform and/or EducateInform and/or Educate

Customer Relationship Management

Customer Relationship Management

Inform and/or EducateInform and/or Educate

Build an ImageBuild an Image

Behavioural ResponseBehavioural Response

ObjectivesObjectives

2. Target Database

Manage customer

relationships

Manage customer

relationships

Cross-sellingCross-selling

Stimulating repeat

purchases

Stimulating repeat

purchases

Improving selection of market segmentsImproving selection of market segments

Uses of Databases

Uses of Databases

2. Database Marketing – How It Works

2. Sources of Database Information

Info CanadaInfo Canada Marketing Research Houses

Marketing Research Houses

List ServicesList ServicesCanada PostCanada PostStatistics CanadaStatistics Canada

3. Direct Marketing Media Strategy

One StepOne Step Two StepTwo StepOne StepOne Step

• The medium is used directly to obtain an order.

• Often use 800 number phone orders and credit card payment.

• Use one medium to obtain inquiry, qualify prospect.

• Typically follow up with another medium to complete sale.

3. Direct Marketing Media

TelemarketingTelemarketing

CataloguesCatalogues

Direct MailDirect Mail

InfomercialsInfomercials

TV AdvertorialsTV Advertorials

TeleshoppingTeleshopping

Broadcast MediaBroadcast Media

Key variables in direct marketing

The list/media

Creative execution – copy and layout

The offer – call to action

Strengths and Limitations of Direct Marketing

AccuracyAccuracy

Rising CostsRising Costs

Image FactorsImage Factors

Content SupportContent Support

Selective ReachSelective Reach

Segmentation CapabilitySegmentation Capability

Frequency PotentialFrequency Potential

FlexibilityFlexibility

TimingTiming

PersonalizationPersonalization

EconomyEconomy

StrengthsStrengths LimitationsLimitations

Measurement of Effectiveness

Measurement of Effectiveness

AccuracyAccuracy

Image FactorsImage Factors

Content SupportContent Support

Selective ReachSelective Reach

Segmentation CapabilitySegmentation Capability

Frequency PotentialFrequency Potential

FlexibilityFlexibility

TimingTiming

PersonalizationPersonalization

EconomyEconomy

Measurement of Effectiveness

Measurement of Effectiveness