Principles of marketing: Lecture 38

MGT301
Principles of Marketing
Lecture­38


Summary
of  
Lecture­37


Supervising Salespeople
Motivating Salespeople


Evaluating Salespeople


Direct Marketing


Direct
Direct Marketing
Marketing

Breaks
Breaks
through
through ad
ad
clutter
clutter

Better
Better
targeting
targeting
reduces
reduces
waste
waste


Advantages of Direct Marketing
Factors Driving 
Direct Marketing Growth


Predictive
Predictive
Modeling
Modeling
Convenience
Convenience

Immediate
Immediate
Sales
Sales

Shrinking
Shrinking

Media
Media Audiences
Audiences

Customized
Customized
Products
Products

Fragmented
Fragmented
Markets
Markets

Price
Price
Sensitivity
Sensitivity


Forms of Direct Marketing


Face-to-Face
Selling
Online
Marketing

Telemarketing

Kiosk
Marketing

Direct
Mail

Direct-Response
TV Marketing

Catalog


Customer Databases


How Companies Use Their 
Databases ?
Identifying
Identifying Prospects
Prospects
Deciding
Deciding Which
Which Customers
Customers Should
Should
Receive
Receive aa Particular
Particular Offer
Offer
Deepening

Deepening Customer
Customer Loyalty
Loyalty
Reactivating
Reactivating Customer
Customer Purchases
Purchases


Today’s Topics
Other Marketing Applications through 
Databases 




Match profiles to cross­sell other products to 
customers



Modify marketing messages based on 
customer profiles



Reach out to customers to reinforce the 
purchase decision

 Find new customers

 Gain insight into who is purchasing products
 Improve customer service


Disadvantages


 Marketing databases can be costly and time 
consuming.



 Databases need to be carefully planned.



 Consumer privacy issues.


Integrated Direct Marketing


Direct marketing campaigns that use multiple 
vehicles and multiple stages to improve 
response rates and profits.



Marketers seek to improve response rates and 
profits by adding media and stages that 

contribute more to additional sales than to 
additional costs. 


Ethical Issues in Direct Marketing


Irritation
to
Consumers

Unfairness,
Deception,
or
Fraud

Invasion
of
Privacy


Public Relations
Building good relations with the company’s various 
publics by obtaining favorable publicity, building up 
a good “corporate image” and handling or heading 
off unfavorable rumors, stories and events.


Major functions are:
–  Press Relations 

–  Product Publicity
–  Public Affairs
–  Lobbying
–  Investor Relations
– Development


The
TheRole
Roleof
of
Public
PublicRelations
Relations

Executes
Executes
programs
programs to
to gain
gain
public
public acceptance
acceptance

Evaluates
Evaluates public
public
attitudes
attitudes

Identifies
Identifies issues
issues of
of
public
public concern
concern


The marketing function that
evaluates public attitudes, identifies areas 
within the organization that the public may be 
interested in, and executes a program of action 
to earn public understanding and acceptance.


Major Public Relations Tools


Public
Public
Service
Service
Activities
Activities

Web
Web Site
Site
News

News

Corporate
Corporate
Identity
Identity
Materials
Materials

Audiovisual
Audiovisual
Materials
Materials

Speeches
Speeches

Written
Written
Materials
Materials

Special
Special
Events
Events


Other PR Tools







 New product publicity
 Consumer education
 Event sponsorship
 Issue sponsorship
 Company websites



Press releases



Press conferences



Exclusives



Interviews



Community involvement