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  1. 1. Marketing Management 2nd Edition Chapter 13: Direct Marketing, Sales Promotion and Public Relations Michael R. Czinkota and Masaaki Kotabe
  2. 2. Chapter Outline <ul><li>Pre cision Marketing </li></ul><ul><li>Direct Marketing Delivery Systems </li></ul><ul><li>Struct uring the Direct Mail Campaign </li></ul><ul><li>Telemarketing </li></ul><ul><li>Sales Promotion: Advantages & Disadvantages </li></ul><ul><li>Types of Sales Promotion </li></ul><ul><li>Trade Shows </li></ul><ul><li>Public Relations </li></ul>
  3. 3. Precision Marketing <ul><li>Precision marketing is possible because of: </li></ul><ul><li>Availability & consolidation of secondary data </li></ul><ul><li>Point of sale data </li></ul><ul><ul><li>Electronic point-of-sa le (EPOS) </li></ul></ul><ul><li>Manipulation data </li></ul><ul><ul><li>Exp ert systems </li></ul></ul>
  4. 4. Direct Marketing Delivery Systems <ul><li>Advantages: </li></ul><ul><li>Specific targeting </li></ul><ul><li>Personalization </li></ul><ul><li>Variation of promotional offer </li></ul><ul><li>Consumer information </li></ul><ul><li>Flexibility </li></ul><ul><li>Circumvention of barriers </li></ul><ul><li>Disadvantages: </li></ul><ul><li>High cost </li></ul><ul><li>Poor quality lists </li></ul><ul><li>Image problems </li></ul>
  5. 5. Structuring the Direct Mail Campaign <ul><li>The direct mail offer </li></ul><ul><li>The letter </li></ul><ul><li>Timing </li></ul><ul><li>Response rates </li></ul>
  6. 6. Telemarketing <ul><li>Telemarketing agencies </li></ul><ul><li>Inbound telemarketing </li></ul><ul><li>Network marketing </li></ul>
  7. 7. Sales Promotion <ul><li>Advantages: </li></ul><ul><li>Short-term sales increase </li></ul><ul><li>Defined target audience </li></ul><ul><li>Defined role/objectives </li></ul><ul><li>Indirect roles (e.g., wider distribution) </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Only short-term </li></ul><ul><li>Hidden costs </li></ul><ul><li>Confusion </li></ul><ul><li>Price cutting </li></ul><ul><li>Postponement effect </li></ul><ul><li>Significant government regulation </li></ul><ul><li>Lack of effectiveness sometimes </li></ul>
  8. 8. Types of Sales Promotion Promotional pricing Nonprice promotions Sampling
  9. 9. Sales Promotion Promotional Pricing <ul><li>Price reductions </li></ul><ul><li>Free goods </li></ul><ul><li>Tied offers </li></ul><ul><li>Coupons and virtual coupons </li></ul><ul><li>Cash refund </li></ul><ul><li>Money off next purchase </li></ul><ul><li>Loss leader pricing </li></ul><ul><li>Cheap credit </li></ul>
  10. 10. Sales Promotion: Nonprice Promotions <ul><li>Contests </li></ul><ul><li>Free gifts </li></ul><ul><li>Self-supporting offers </li></ul><ul><li>Multibrand promotions </li></ul><ul><li>Guarantees and services </li></ul>
  11. 11. Sales Promotion: Sampling <ul><li>Most effective in the early stages of a new product launch </li></ul><ul><li>Important for food products </li></ul><ul><li>Very expensive </li></ul>
  12. 12. Trade Shows Maintain relationship Transmit messages to key accounts Remedy problems Add-on sales Selling objectives Nonselling objectives Current customers Potential customers Maintain image Test products Gather competitive intelligence Widen exposure Contact prospects Determine needs Transmit messages Commit to call back or sale Contact prospects Foster image building Test products Gather competitive intelligence
  13. 13. Public Relations <ul><li>Media contact </li></ul><ul><li>News stories </li></ul><ul><li>Press office </li></ul><ul><li>Corporate public relations </li></ul><ul><ul><li>Defensive </li></ul></ul><ul><ul><li>Proactive </li></ul></ul>