Sales Promotion Direct Response, Internet, and Database Marketing

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Sales Promotion Direct Response, Internet, and
Database Marketing

• Marketing 340
• Prof. Bill White

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Sales Promotion

• Short-term, demand-stimulating activities
  designed to
• supplement advertising,
• facilitate personal selling,
• support distribution channels efforts.
• The target of these activities may be
• customers/end users
• The Trade/middlemen
• the producers own sales force

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Most Common Objectives For Sales Programs
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Push versus PullPromotional Strategies
PUSH STRATEGY
Producer
Wholesaler
Retailer
Consumer
PULL STRATEGY
Producer
Wholesaler
Retailer
Consumer
Product flow
Customer flow
Promotion effort
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Middleman-Targeted Sales Promotions

• Directed to the members of the distribution
  channel. They are intended to . . .
• Motivate Incentives
• Contests, bonuses, push money, slotting fees,
  promotion allowances, cooperative advertising
• Inform Advance notice
• Producers new product
• Producers new promotion
• Often done at trade shows
• Educate
• Sales training and sales aides
• Management training

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Customer-Targeted Sales Promotions

• Directed to end customers. They are intended to
• Attract new customers
• Get more business out of current customers
• Types
• Pricing deals Price-off, rebate, BOGO, coupon
• Premiums Give-a-way and self-liquidator
• Contests Skill and Chance
• Sampling
• Point-or-purchase (POP)
• Consumer shows
• Sponsorships and event marketing
• Specialty advertising
• Cooperative advertising
• Directories and Yellow Page advertising
• Fulfillment

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Exhibit 14.2 Promotion Industry Gross Revenues
(in millions)
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Direct Response, Internet, and Database Marketing
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The Internets Relation To Direct Response

• Mail Order, Direct Response, Direct Marketing are
  all the same for our purposes.
• Definition
• A method of selling
• using interactive media/advertising
• to solicit a measurable response
• in a manner convenient for the customer.
• The Internet is one form of interactive
  media/advertising.

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Contrasting Marketing Models
Image Based
Awareness/Image Promotion
Undefined Market share
Shopping A Sale
Database/Response/Relationship Based
Response Invitation Promotion

• Response
• Sale
• Inquiry

• Private
• Target Market
• Lifetime Value
• Custom Programs

Database
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Targeted, Integrated, Interactive, and Intimate
Marketing

• Targeting Who is/are the Target Market(s)?
• End-users, dealers, suppliers, employees,
  stockholders, the media, movers shakers,
  government -- local, national, international
• Integration How will you reach them?
• Conventional Media TV, radio, newspaper,
  magazines, direct mail, publicity, specialty
  advertising, event sponsorships, trade shows,
  sampling
• Electronic Media Cable satellite TV,
  telephone/voicemail, store scanners, broadcast
  fax, videotapes, CD-ROM, kiosks/ATMs, the
  Internet (email, news groups, web site, gopher,
  chatrooms, bulletin boards, etc.)

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Targeted, Integrated, Interactive, and Intimate
Marketing (continued)

• Interaction How will they reach me to order
  and/or ask questions? How do they receive the
  product/service?
• 800, 900
• fax-on-demand
• mail/delivery service
• cable satellite TV
• face-to-face contact (store, home, office)
• the Internet (e-mail, news groups, web site,
  gopher, chatrooms, bulletin boards,
  auto-responders, etc.)
• Intimacy How will you build a lasting
  relationship?
• Databases, loyalty programs (rewards,
  recognition, clubs)

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Internet Marketing System ComponentsMarketplace
vs Marketspace

• Marketing Mix Activities
• Product Selection Pricing
• Site Merchandising Design Content/Editorial
• Site Distribution/Marketspace
• Site Promotion
• Customer Service/Fulfillment
• Technical Infrastructure Activities
• Hardware/software
• Service Providers Suppliers
• Databases
• Administration Activities
• Human Resources Payroll
• Accounting Budgeting

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Types of Web Sites End-user and/or
Middleman-TargetedSupplemental versus Stand-Alone

• Promotion Ads, product/co. info, education
• Customer Service Product/co info, support,
  dealer locator, lead generation, research
• Retail Selling products/services
• The Site as a Product Itself Info, education,
  entertainment, tools
• Sells subscriptions and ad/banner space
• Portals Virtual Communities
• Hybrid Combinations of the above

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Best Internet Products/Services

• Competitive advantage(s)
• Mailable, drop-shippable, downloadable
• Line extendible
• Easy to describe and/or photograph
• Easy to install, assemble and use
• Potential customers are internet savvy
• Reliable suppliers
• Lends itself to repeat business
• Sufficient mark-up per unit
• Note Information products are the most profit
  potential on a per-unit sold basis.

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Martha Stewart Does It AllTargeted, Integrated,
Interactive, and Intimate Marketing

• 24 Martha Stewart Books
• Martha Stewart Living Magazine
• Martha Stewart Living TV Show
• Martha Stewart Living Newspaper Column
• Martha Stewart Living Radio Show
• Martha Stewart Living Catalog
• marthastewart.com Web Site
• Martha Stewart Personal Appearances
• www.marthastewart.com