LECTURE 8 BY MAMURJON RAHIMOV UNESCO\UNITWIN OCW/OER UUOOI.ORG WIUT.UZ Sales Promotion and Direct Marketing
'YOU CAN LEAD A HORSE TO WATER, BUT YOU CAN'T MAKE IT DRINK'
Advertising brings the horse to water, sales promotions makes it drink. JULIAN CUMMINS
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)
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
The main characteristics of Sales Promotions: They are limited in time.
The main characteristics of Sales Promotions: They are limited in space
The main characteristics of Sales Promotions: They offer better value for money
The main characteristics of Sales Promotions: They attempt to provoke an immediate behavioural response
The main characteristics of Sales Promotions: Their effectiveness can be evaluated more directly than that of advertising
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
Growth of Sales Promotion Changing power from manufacturer to retailer Emphasis on short term results Measurability Reduced brand loyalty Communication clutter Lack of differentiation
Growth of Sales Promotion Changing power from manufacturer to retailer
Growth of Sales Promotion Emphasis on short term results
Growth of Sales Promotion Measurability
Growth of Sales Promotion Reduced brand loyalty
Growth of Sales Promotion Communication clutter
Growth of Sales Promotion Lack of differentiation
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
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
Objectives of the sales promotions Trial by new customers
Reward loyal customers Objectives of the sales promotions
Objectives of the sales promotions Make existing customers loyal
Objectives of the sales promotions Reinforce other Communications tools
LECTURE 8/PART 2 BY MAMURJON RAHIMOV UNESCO\UNITWIN OCW/OER UUOOI.ORG WIUT.UZ Sales Promotion and Direct Marketing
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
Sales Promotion Techniques: Manufacturers to resellers Off-invoice allowance Advertising allowances Buy-back allowance Competitions
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
Monetary incentives - Price Cut on the Shelf
Coupons
Cash refunds
Extra volume
Savings cards
Chance to win a prize Contests
Chance to win a prize lotteries (sweepstakes)
Product promotions - Sampling
Product Promotions - Free in mail
Product Promotions - Premiums
Product Promotions Self-Liquidator
Tissue-pack marketing:
Tissue-pack marketing:
Tissue-pack marketing in English-speaking countries
LECTURE 8, PART 3 DIRECT MARKETING
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
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
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
Big Data meets Marketing
Opt-in vs. Opt-out
Evolution Mail Order Direct mail Direct Response Transactional Database Targeted Relationship Marketing Personal Interactive Marketing
Mail Order
Direct Mail
Direct Response
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
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
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
E-mail marketing
E-mail 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
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
Thank you for your attention! You may send your questions and comments to mrahimov@wiut.uz