Direct marketing:

▪ Direct marketing is the use of consumer direct channels to reach and deliver
goods and services to consumers without using marketing middlemen.
▪ It helps the companies to opening dialogue directly between themselves & the end
consumers of their products.
Forms of direct marketing:
Direct mail
marketing

Kiosk Catalog
marketing marketing

Telemarketin
Television
g
 Direct mail marketing:

▪ It involves sending an offer, announcement , reminder or other item to a person

through mail
▪ Marketers send out millions of mail pieces each year, using highly selective
mailing lists.
Catalog marketing:

In this type of marketing seller prepares catalogues of merchandise or products and sells
directly to customers.

Catalogues are generally in printed form but can also be distributed in the form of CDs .

To reduce printing and distribution costs catalogues are being increasingly made online.
Telemarketing:

▪ Telemarketing is the use of telephone and call centers to attract prospects , sell to existing
customers and provide service by taking orders and answering questions.
▪ Companies use call centers for
▪ inbound telemarketing
▪ outbound marketing-
▪ Telemarketing pioneer.
▪ It offers more than a thousand products backed by a 24*7 call
center.
▪ Diversified its operations by opening an online store.

 Cosmetic company L’Oreal India has a toll free number on

which it offers expert advice about looking good.
 Direct response marketing
Television:

▪ Direct marketing via television (commonly referred to as DRTV) has two basic
forms:
long form (usually half-hour or hour-long segments that explain a product in
detail and are commonly referred to as infomercials) & short form, which refers to
typical 30-second or 60-second commercials that ask viewers for an immediate
response (typically to call a phone number on screen or go to a website).

▪ Infomercials promote products that are complicated or technologically advanced,

or require a great deal of explanation.
Company promotes the concept of home shopping by a way of media and
television advertisements of various products by showing their features, use and
advantages.
A toll free number is flashed on the television screen when infomercials are
screened.
The consumer can call the number for the demonstration and delivery of the
product.
Kiosk marketing :

Kiosk- A small, temporary, stand-alone booth used in high-foot-traffic areas for

marketing purposes.

Kiosks are machines kept in shopping malls and other such places by
organizations to spread the information and generate orders from customers who
visit such Free standing, semi-permanent display or retail outlet, within a large
retail establishment or a shopping mall
 Ambi Pur , a perfume company dealing in room fresheners organized a kiosk marketing
campaign in the Nirmal lifestyle, Mumbai.

 The objective of the campaign was to create awareness about the product among the target
consumers, mainly the households.
 Advantages
To Businesses:

▪ Direct marketing can help sales to grow when used along with sales promotions
and advertising campaigns.
▪ It is also useful for small businesses through guest books, visitors lists, and lists
of enquiries. These operations rely on repeat business.
▪ Direct marketing builds relationships; it is an important tool in customer
relationship management (CRM).
▪ It helps to measure response to campaigns to decide which media is most
profitable.
▪ It helps to find cost effective approach of media.
To consumers:

▪ Home shopping can be fun, convenient & hassle free.

▪ Buyers get good services from the company like toll free numbers for purchasing
or ordering goods.
▪ It provides quick delivery of goods to the consumers.
▪ It saves time and introduces consumer to a larger selection of merchandise.
▪ Consumer can do comparative shopping by browsing through mail catalogs and
online shopping services.
Disadvantages :

Unfairnes
Irritation
s

Deceptio
Invasion
n and
of privacy
fraud
Promotion, Advertising, and Sales
Promotion
Strategies

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

 Promotion,
Advertising, and
Sales Promotion
Strategies
 Promotion Strategy
 Advertising Strategy
 Sales Promotion
Strategy
 PROMOTION
STRATEGY
 The Composition of Promotion
Strategy
 Developing a Promotion Strategy
 Communications Objectives
 Deciding the Role of the
Promotion Components
 Determining the Promotion
Budget
 Promotion Component Strategies
 Integrating and Implementing the
Promotion Strategy
 Effectiveness of Promotion
Strategy
Promotion Strategy
is

Initiating and
maintaining a flow of
communications
between a company
(brand) and its
market targets.
 Composition of
Promotion Strategy

Interactive/
Internet Marketing

Direct Advertisin
Marketing g
Promotion
Components
Personal Sales
Selling Promotion

Public
Relations
 DEVELOPING THE
PROMOTION STRATEGY
MARKET TARGETING AND
POSITIONING STRATEGIES

COMMUNICATION
OBJECTIVES

ROLE OF PROMOTION
COMPONENTS

Advertising Sales Public Personal Direct Interactive/

Promotion Relations Selling Marketing Internet
Marketing
PROMOTION
BUDGET

Coordination
PROMOTION COMPONENT with Product,
STRATEGIES Distribution,
and Price
Strategies

INTEGRATE AND IMPLEMENT

PROMOTION COMPONENT
STRATEGIES

EVALUATE EFFECTIVENESS
OF PROMOTION STRATEGY
 DETERMINING THE
PROMOTION BUDGET

Objective
and Task

All You Can Budgeting Percent of

Afford Approaches Sales

Follow the
Competitio
n
 Budgeting Methods

Features Limitations

Percent of Sales Percent of Sales

 Fixed percent of sales,  The method is very
often based on past arbitrary. Budget may be
expenditure patterns. too high when sales are
high and too low when
sales are low.

Comparative Parity
 Budget is based largely Comparative Parity
upon what competition is  Differences in marketing
doing. strategy may require
different budget levels.

Objective and Task

 Set objectives and then Objective and Task
determine tasks (and  The major issue in using
costs) necessary to meet this method is deciding the
the objectives. right objectives so
measurement of results is
important.
 Integrating and
Implementing
Promotion Strategy

Integration Challenges

Avoiding fragmentation
Difficulty in evaluating
productivity
Differences in priorities
Separate organizational
units
Assigning integration
responsibility
 Promotion Strategy
Issues

 Expense/Response
Relationships
 Allocation
 Impact on Brand Equity
 Integration of Promotion
Components
 Evaluating Effectiveness
 ADVERTISING
STRATEGY

 Setting Objectives and

Budgeting
 Creative Strategy
 Media/Programming
Strategy
 Role of the Agency
 Program Implementation
and Effectiveness
 ADVERTISING
STRATEGY
Target Audience

Advertising
Objectives

Advertising
Budget

Creative
Strategy

Advertising Media and

Programming
Schedules

Implement and Evaluate

Strategy Effectiveness
 Alternative Levels for
Setting Advertising
Objectives
Increasing Uncertainty
About Impact on
Purchasing Behavior

Type of Objective

• Exposure

• Awareness

• Attitude
Change

• Sales

• Profit

Increasing Difficulty
of Measurement
Budget Determination

OBJECTIVE AND TASK

METHOD HAS A STRONGER
SUPPORTING LOGIC THAH
THE OTHER METHODS.

Budget
Determination

Media/ Creative
Scheduling Strategy
 CREATIVE STRATEGY
The creative strategy is guided by the
market target and the positioning
strategy.

Product Distributio Price Promotio

n n

Advertising
(How to communicate
intended positioning
to buyers and others
influencing the
purchase.)

Provide a unifying
concept that binds Creative
together the various Strategy
parts of the
advertising campaign.
MEDIA / SCHEDULING
DECISIONS

 Television
 Radio
 Magazines
 Online
 Website
 Outdoor
 Factors Influencing
Media Decisions

Access to
the target
audience
Favorable
access to
cost

Unfavorable
access to cost

Cost of
reaching the
target group(s)
Role of the Advertising
Agency
Target Audience

Advertising
Objectives

Advertising
Budget

Creative
Strategy Advertising
Agency
Advertising Media
and Programming

Evaluate the Effectiveness

of the Strategy
 ADVERTISING STRATEGY
IMPLEMENTATION AND
EFFECTIVENESS
Decide how to measure
effectiveness before
implementing the strategy.
Assign responsibility for
tracking performance.
Assessing the quality of
advertising is important.
Exposure to advertising is
not a very sensitive measure
of effectiveness.
 Rating
Services

Test Sales and

Marketing Expense Analysis
MEASURING
ADVERTISING
EFFECTIVENESS

Controlled Recall
Tests Tests
 SALES PROMOTION
STRATEGY
SALES PROMOTION consists of
various incentives, mostly short
term, intended to stimulate
quicker and/or greater purchase
of particular goods/services by
end-user consumers or value
chain organizations.

The strategy process is similar to

the design of advertising
strategy.
 Sales Promotion
Activities and Targets
Activities include trade shows,
specialty advertising, contests,
displays, coupons, recognition
programs, and free samples.

SALES
PROMOTION
TARGETS

Consumer Salespeopl
Buyers e
Business Value
Buyers Chain
Marketing Strategy Implementation and Control

4 The marketing plan

4 Implementing the plan

4 Strategic evaluation and control

 The Marketing Plan

▪ How the marketing plan guides

implementation
▪ Contents of the marketing plan
▪ Managing the planning process
Marketing Strategy Overview

MARKET
TARGET(S)

PROGRAM
OBJECTIVES POSITIONING
STRATEGY
Marketing Planning Relationships

MARKETING
STRATEGY

Annual
Marketing
Plan Implementation

Evaluation

Revision

Annual
Marketing
Plan
 Implementing the Plan

▪ Implementation process
▪ Improving implementation
▪ Internal marketing
▪ A comprehensive approach to improving implementation
▪ Internal strategy-structure Fit
▪ Developing a market orientation
▪ The role of external organization
The Implementation Process

Activities
to be
implemente
d

How Responsibility
implementation for
will be done implementation

Time and
location of
implementation
Improving Implementation

Skilled
Implementers

Effective Organizational
Communications Design

Improving
Implementation

Internal
Marketing Incentives
Comprehensive Approach to
Improving Implementation

Financial
Measures

Learning
BALANCED
and SCORECARD Customer
Innovation Measures
Measures
MANAGEMENT
CONTROL
SYSTEM
Internal
Business
Process
Measures
 Strategic Evaluation and Control

▪ Customer relationship management

(CRM)
▪ Overview of evaluation activities
▪ The strategic marketing audit
Strategic Marketing Evaluation and
Control
Conduct strategic
marketing audit

Select performance
criteria, measures, and metrics

Obtain and
analyze information

Assess
performance
and take
necessary
action