LECTURE 8 BY MAMURJON RAHIMOV UNESCO\UNITWIN OCW/OER UUOOI.ORG WIUT.UZ. Sales Promotion and Direct Marketing

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1 LECTURE 8 BY MAMURJON RAHIMOV UNESCO\UNITWIN OCW/OER UUOOI.ORG WIUT.UZ Sales Promotion and Direct Marketing

2 'YOU CAN LEAD A HORSE TO WATER, BUT YOU CAN'T MAKE IT DRINK'

3 Advertising brings the horse to water, sales promotions makes it drink. JULIAN CUMMINS

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6 Sales Promotion A range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives; the adding of tangible, extrinsic value to the product or service (P&B) Sales promotion seeks to offer buyers additional value as an inducement to generate an immediate sale (Fill 2002)

7 The main characteristics of Sales Promotions: They are limited in time and space They offer better value for money They attempt to provoke an immediate behavioural response Their effectiveness can be evaluated more directly than that of advertising

8 The main characteristics of Sales Promotions: They are limited in time.

9 The main characteristics of Sales Promotions: They are limited in space

10 The main characteristics of Sales Promotions: They offer better value for money

11 The main characteristics of Sales Promotions: They attempt to provoke an immediate behavioural response

12 The main characteristics of Sales Promotions: Their effectiveness can be evaluated more directly than that of advertising

13 So, the main characteristics of Sales Promotions: They are limited in time and space They offer better value for money They attempt to provoke an immediate behavioural response Their effectiveness can be evaluated more directly than that of advertising

14 Growth of Sales Promotion Changing power from manufacturer to retailer Emphasis on short term results Measurability Reduced brand loyalty Communication clutter Lack of differentiation

15 Growth of Sales Promotion Changing power from manufacturer to retailer

16 Growth of Sales Promotion Emphasis on short term results

17 Growth of Sales Promotion Measurability

18 Growth of Sales Promotion Reduced brand loyalty

19 Growth of Sales Promotion Communication clutter

20 Growth of Sales Promotion Lack of differentiation

21 So, Growth of Sales Promotion Changing power from manufacturer to retailer Emphasis on short term results Measurability Reduced brand loyalty Communication clutter Lack of differentiation

22 Objectives of the sales promotions Reward loyal customers Make existing customers loyal Increase market share and size Reinforce other Communications tools Trial by new customers

23 Objectives of the sales promotions Trial by new customers

24 Reward loyal customers Objectives of the sales promotions

25 Objectives of the sales promotions Make existing customers loyal

26 Objectives of the sales promotions Reinforce other Communications tools

27 LECTURE 8/PART 2 BY MAMURJON RAHIMOV UNESCO\UNITWIN OCW/OER UUOOI.ORG WIUT.UZ Sales Promotion and Direct Marketing

28 Objectives of the sales promotions Reward loyal customers Make existing customers loyal Increase market share and size Reinforce other Communications tools Trial by new customers

29 Sales Promotion Techniques: Manufacturers to resellers Off-invoice allowance Advertising allowances Buy-back allowance Competitions

30 Sales Promotion Techniques: Manufacturers to consumers (B2C) Monetary incentives Chance to win a prize Product promotions Price cut on the shelf Coupons Cash refunds Extra volume Savings cards Contests Lotteries Sampling Free in mail Premiums Self liquidators Savings cards

31 Monetary incentives - Price Cut on the Shelf

32 Coupons

33 Cash refunds

34 Extra volume

35 Savings cards

36 Chance to win a prize Contests

37 Chance to win a prize lotteries (sweepstakes)

38 Product promotions - Sampling

39 Product Promotions - Free in mail

40 Product Promotions - Premiums

41 Product Promotions Self-Liquidator

42 Tissue-pack marketing:

43 Tissue-pack marketing:

44 Tissue-pack marketing in English-speaking countries

45 LECTURE 8, PART 3 DIRECT MARKETING

46 Objectives To understand what is meant by direct marketing To explore different direct marketing media To gain an understanding of the role and growth of direct marketing

47 Direct marketing The distribution of products, information and promotional benefits to target consumers through interactive communication in a way that allows response to be measured

48 Direct Marketing? Direct Marketing is a way of acquiring and keeping customers by providing a framework for three activities analysis of individual customer information strategy formation implementation such that customers respond directly

49 Big Data meets Marketing

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51 Opt-in vs. Opt-out

52 Evolution Mail Order Direct mail Direct Response Transactional Database Targeted Relationship Marketing Personal Interactive Marketing

53 Mail Order

54 Direct Mail

55 Direct Response

56 General Marketing Communications Reaches a mass audience through mass media Communications are impersonal Desired action delayed unclear Use surrogate variables to measure effectiveness Direct Marketing Communicates directly with the customer or prospect through targeted media Personalised communications Specific action always requested Comprehensive database drives marketing programmes Measurable and highly controllable

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58 Reason for Growth Changing demographics and lifestyles Media fragmentation Decreasing data processing costs Use of consumer credit cards Increasing media and sales force costs Alternative distribution channels Changing business focus

59 Direct marketing media and tools Addressable New interactive media Direct mail Catalogues Telemarketing Non-addressable Direct response print advertising Direct response print TV and radio advertising Teletext

60 marketing

61 marketing: benefits 1. Low-cost 2. Target fans of your brand 3. Segmentation 4. Calls to action 5. Easy to create 6. Easy to track 7. Easy to share 8. Immediacy 9. Return on investment

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66 Reading Pickton, D. and Broderick, A. (2005) Integrated Marketing Communications Prentice Hal De Pelsmacker, P. Geuens, M., and Van Den Bergh,J. (2004) Marketing Communications, Prentice Hall, London Fill, C. (2005) Marketing Communications Prentice Hall, London

67 Thank you for your attention! You may send your questions and comments to