Transcript Sales Promotion - Cal State LA

Sales Promotion
Direct Response, Internet, and
Database Marketing
Marketing 340
Prof. Bill White
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 producer’s own sales force
Most Common Objectives For Sales Programs
Push versus Pull
Promotional Strategies
PUSH STRATEGY
Producer
Wholesaler
Retailer
Consumer
Retailer
Consumer
PULL STRATEGY
Producer
Wholesaler
Product
flow
Promotion effort
Customer flow
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
– Producer’s new product
– Producer’s new promotion
– Often done at trade shows
• Educate
– Sales training and sales aides
– Management training
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
Exhibit 14.2: Promotion Industry Gross Revenues
(in millions)
Direct Response, Internet, and
Database Marketing
The Internet’s 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.
Contrasting Marketing Models
Image Based
Awareness/Image
Promotion
Shopping & A Sale
Undefined
Market share
Database/Response/Relationship Based
Response
Invitation
Promotion
Response
• Sale
• Inquiry
Database
Private
Target Market
• Lifetime Value
• Custom Programs
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/ATM’s, the Internet (email,
news groups, web site, gopher, chatrooms, bulletin
boards, etc.)
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)
Internet Marketing System Components
Marketplace 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
Types of Web Sites
End-user and/or Middleman-Targeted
Supplemental 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
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.
Martha Stewart Does It All:
Targeted, 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