Direct Marketing

AB219 Marketing
Unit Eight
Tonight’s Focus:
The Promotion Mix Components
What do I have to do this week?
• Reading: Chapter 14.
• Discussion: Online Computer Companies!
• Research Project: Complete & Submit!
• Simulation: 3rd one for the term!
• Quiz: None this week!
Professor’s Tip: U8 Research Project (and related research) not
intended to be completed in a few days, but over at least 2
weeks. So, don’t wait until the last minute to pull it together &
watch my “Professor’s U8 RP Help Video” for pointers!
Remember: Tuesday @ 11:59 pm is the weekly deadline.
Discussion “Best Practices”
Major Discussion Requirements include:
• 1st detailed original response (answers discussion questions) no
later than Saturday of unit.
• EXCEED minimum 100 word initial post (usually will have to
exceed this minimum to adequately respond to the question(s)
asked .)
• Post on at least 3 different days.
• Respond to @ least 2 of your classmates (These posts must
also include the substance from our weekly focus and demonstrate
your application of the material we are learning.)
• Minimum 3 total posts for each unit (1st detailed original
response, 2 peer responses).
• Relate Discussion to Reading & Weekly Focus.
• Interactive discussions, so please answer any questions that I or
classmates may ask.
U8 Research Project
2nd Research Project – U8
• Major Components:
-Introduction & Segmentation
-Focuses on the Marketing Mix for your brand (4 P’s:
Product, Price, Promotion & Distribution/Place)
-APA formatted paper with approximately 3-5 pages written
• Please submit to the dropbox as: YourNameU8RP!
Major Components of the U8 R.P.
Marketing Mix (Overview Paragraphs)
• Overview of your brand’s marketing mix (4P’s)?
• What are the products of your brand or services provided?
• What are some key facts and background information on
your company or brand?
• What are the various pieces you will touch on in the
• Identify the segmentation and target markets.
Major Components of the U8 R.P.
Product (U4 & U5)
Product(s) Classification
Product Life Cycle
Product Positioning
Why different product lines or line extensions? (if appl.)
Features and Benefits of the product.
Type of product(s): Shopping, Convenience, etc………..
Width and Depth of your brand & respective products
Importance of Product Packaging
Major Components of the U8 R.P.
Price (Unit 5)
• Pricing Strategies: competition-based pricing, demandbased pricing, new product pricing, and/or product-line
• Pricing Objectives
• Is the brand’s pricing is in line with the competition?
• Discuss the issues and reasons behind the brand and
respective products being higher priced or lower priced.
• Is price is consistent with the quality level?
Major Components of the U8 R.P.
Distribution/Place (U6)
Types of channels leveraged
Order Processing
Transportation Methods Used.
Type(s) of distribution your brand uses.
Explain & Analyze Distribution Coverage Intensity: Does
your brand use an Intensive, Selective or Exclusive Strategy?
• Examine whether the brand is being sold in the right
• Discuss what course of action would remedy any
Major Components of the U8 R.P.
Promotion (U7 & U8)
Public Relations
Personal Selling
Sales Promotion
Online and Direct Marketing
Discuss what is needed for an IMC (Integrated
Marketing Communications) plan.
• How is an IMC strategy evident in the Promotional
Component of your brand?
• Analyze advertising plans in terms of message or
Project Recommendations
• APA Structure:
- 3 to 4 pages of substantial content.
- Title & Reference Pages are bookends. (@ least 3 reference sources)
- Cite References within the paper itself. (@ least 3 in your papers)
- 1” Margins, 12-point Font, Times New Roman, Double Spaced.
- No spaces between paragraphs & indent new paragraph. (Titles
- See 4 Resources in Doc Sharing: Professor’s Assignment/RP APA
Guide, Referencing in APA Guide, Citing in APA Guide, & APA
Assignment Example (GE)
- Watch the U4 “Professor’s Assignment/RP Help Video” emailed to
you and link available announcements.
• Substance tied to Units being Studied:
- Read Project Template as guide on how to complete the assignment.
- Provide facts & statistics (cite this within your paper)
- Provide your ideas connected to the focus as it relates to the
- Provide more than just opinion …… analysis & connect to readings.
• Save document & submit as: YourNameU8RP
Research Project Submission Structure
Title Page
* Written Response Pages *
(approximately 3-4 pages)
Reference Page
Finished product: Will look like the above with a 3 - 4
page response section between separate APA
formatted title and reference pages. Demonstrate
practical application of the concepts learned throughout
the course in this approximate 3 - 4 page response
U8 Research Paper Recommendations
• You will connect the ideas, from our course, to the
company/brand you are writing about & researching.
Pull together over a number of days & not just a
couple of nights before due date!
•Important to be high quality, because you are
actually pulling together the Unit 10 Powerpoint
Assignment Presentation on the U8 Research Project.
AB219 Marketing U8 Research Project
Need Help ………….. Contact Me!
:: ::
:: 215-360-1258 ::
Let’s Test our Knowledge!
U8.1: Any paid form of non-personal
communication through mass media is
a) publicity.
public relations.
sales promotion.
personal selling.
U8.2: Advertising objectives need not
be clear, precise, and measurable
because they are only estimates of what
an advertiser wants to accomplish.
a) T
b) F
U8.3: In many instances the most
appropriate way for a firm to cope with
an event that leads to negative public
relations is to:
discourage news coverage of the event.
deny that the event occurred.
facilitate news coverage of the event.
hire a public relations firm.
refrain from publicity that reports the event.
Review: The Promotion Mix
Public Relations/Publicity
Personal Selling
Sales Promotion
These were all covered in last week’s
seminar & it makes sense to review
them, on the next few slides, before covering the
5th element – direct marketing.
Review: Advertising
• Paid non-personal communication through mass
• Advantages
-Cost efficient on a per person reached basis
-Highly flexible, and allows for repetition
-Adds value
-Lends legitimacy
• Disadvantages
-Out of pocket outlay is high
-Hard to measure sales effect unless source coding is used
-Feedback usually slow
Review: Public Relations
• Communication efforts used to create and maintain
favorable relationships between an organization
and its stakeholders. (also called publicity)
• Individual brands generally have publicity/public
relations done at the corporate level.
• Some people call this “free advertising,” but it can
be expensive and must be done well to be effective.
• Examples?
Review: Personal Selling
• Paid Personal Communication
• Advantages
-Provides significant impact on customers due to personal
-Interactive - allows for immediate impact and adjustment
• Disadvantages
-It is costly and considered the most costly part of
promotion based on the # of people reached
Review: Sales Promotion
• Direct incentive to buy
• Growing rapidly due to its effectiveness
• May be directed at salespeople, resellers, and
consumers- anywhere in the distribution chain
• Examples: free samples, coupons, contests,
premiums, rebates, buy one get one frees, frequent
buyer programs, etc.
Review of Unit 7
• Just reviewed! Questions or concerns?
• Are the Research Projects on the 4p’s (marketing
mix) almost ready for submission this week?
• Lets start discussing Unit 8!
Our Topics for This Week
Direct and online marketing: The fifth
element of the promotional mix
Direct Marketing
Directly connecting with targeted consumers
to bring about an immediate response and
foster long term relationships.
Advantages of Direct Marketing
Benefits to Buyers
• Convenience - available @ a time of their choosing
• Easily accomplished and can be done in privacy of
• Many products are available
• Information on product can be plentiful
• Possibility for interactivity
• Purchase can be immediate - even in the middle of
the night
Advantages of Direct Marketing
Advantages to sellers
• Can be low cost when effectively targeted
• It can be efficient with formatted information being
• Transactions can be quickly accomplished
• It can be flexible
• Access to buyers can increase due to consumer
• Database use and access to past orders can
facilitate development of future offers
Types of Direct Marketing
• Direct Mail - the use of a physical or virtual address to
promote products.
- Can be very selective
- Very flexible - offers can vary
- Very easily measures response rates
• Catalog Marketing - print, video or digital catalogs that
allow customers to place orders mail, telephone or
- Brings offerings to people in all locations
- Online versions can be updated continually and new
products added
Types of Direct Marketing (cont.)
• Telemarketing - the performance of marketing-related
activities by telephone.
-Useful for sales lead generation, raising funds, and
gathering marketing data
-Outbound and inbound operations
• Direct-Response Television Marketing - use of the
TV to direct market to consumers.
-Allows for demonstrating and explaining products
-QVC and Home Shopping Network are most popular, but
infomercials are also popular.
Types of Direct Marketing (cont.)
• Kiosk Marketing - the use of self-serve machines that
allow consumers to order products or get information.
• Digital Direct Marketing Technologies - provide
ordering, marketing and interactive marketing
opportunities through mobile phones, hand-held devices
and television.
Online Marketing
• The use of the internet to sell products and foster
customer relationships
• The fastest growing form of direct marketing
• Two types of marketers:
- Click only - No traditional physical presence
- Click and mortar - Have both online and physical
Online Domains (Websites)
• Business-to-Consumer (B2C)
-Online selling of products to final consumers
-Influences over a third of all retail sales
• Business-to-Business (B2B)
-Allow business buyers fast access to purchase and handle
purchase issues
-Custom web sites can be provided for large business
Online Domains (Websites) (cont.)
• Consumer-to-Consumer (C2C)
-Consumers selling to other consumers
-Online auctions, blogs, online personal ad sites
• Consumer-to-Business (C2B)
-Consumers search out businesses to buy from and to
provide comments to
Setting up an Online Presence
Commercial Website Considerations
Should be well designed and laid out
Ordering should be easy and secure
Information that buyers need readily accessible
It is best to have non-internet contact available
Change to keep the site fresh and people coming
Setting up an Online Presence (cont.)
Placing ads or promotions online ……… there
are several forms as follows:
Banner ads
Search ads
Affiliate programs
Viral marketing
Setting up an Online Presence (cont.)
• Online Social Networks
-Websites that foster social interaction that includes sharing
information and information exchange
-Participate in existing sites or create one
-Examples: Facebook, Linkedin, YouTube, Twitter
• Using E-mail
-Sending solicited or unsolicited mailings to people online
-Effective if people have requested e-mails or can opt out
-Problem of cyber junk mail ………… spamming
What do I have to do this week?
• Reading: Chapter 14.
• Discussion: Online Computer Companies!
• Research Project: Complete & Submit!
• Simulation: 3rd one for the term!
• Quiz: None this week!
Professor’s Tip: U8 Research Project (and related research) not
intended to be completed in a few days, but over at least 2
weeks. So, don’t wait until the last minute to pull it together &
watch my “Professor’s U8 RP Help Video” for pointers!
Remember: Tuesday @ 11:59 pm is the weekly deadline.
Any Questions?
Thank you for attending!
See you next week .... Same Place, Same Time!