322 Advertising

8/14/2019 322 Advertising

http://slidepdf.com/reader/full/322-advertising 1/43

Direct Marketing

Use of consumer-direct channels to reach

and deliver goods and services to

customers without using

market middlemen.



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



Direct Marketing Channels

• Catalogs

• Direct mail

• Telemarketing• Web sites

• Email marketing

• Mobile devices• Interactive TV



Public Issues in Direct

Marketing• Irritation

• Unfairness

• Deception/fraud• Invasion of privacy



Constructing A Direct-Mail

CampaignEstablish objectives

Select target prospects

Develop offer elements

Test elements

Execute

Measure success



RFM Formula for Selecting

Prospects• Recency

• Frequency

• Monetary value



Elements of the Offer Strategy

• Product

• Offer

• Medium• Distribution method

• Creative strategy



Components of the Mailing

• Outside envelope

• Sales letter

• Circular • Reply form

• Reply envelope



Personal Selling

– This type of

promotion

requires contact

with potential

buyers



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



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



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



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



Major types of sales jobs

• Creative selling

• Order taking

• Missionary selling

• Technical specialists



Major Steps in Sales Force

Management



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



Recruiting and Selecting

Salespeople

• Key talents of salespeople:

– Intrinsic motivation

– Disciplined work style – Ability to close a sale

– Ability to build relationships with customers





Supervising Salespeople

• Motivating Salespeople

– Organizational climate

– Sales quotas

– Positive incentives:

• Sales meetings

• Sales contests

• Recognition and honors• Cash awards, trips, profit sharing



Major Steps in Effective Selling



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



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



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



• 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??



• 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.



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



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



Increasing Visits and Site

Stickiness• Deep information with links

• Changing news of interest

• Changing offers• Contests and sweepstakes

• Humor and jokes

• Games

Online Ads



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



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



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.



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























• 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

Documents

322 Advertising