(4) Direct Marketing Drawbacks (a) Consumers must place orders without viewing or touching the actual product (can see picture of it though). (b) To offset this difficulty, Direct Marketers must offer liberal return policies. (c) Catalogs and some direct mail can be costly. (i) they have to be prepared long in advance of their use and (ii) any adjustments to price or new product additions can be announced only through supplementary catalogs or brochures. (5) Direct Marketing Advantages (a) can provide shopping convenience in addition to low prices. c) Four Factors Related to Physical Facilities: i) Location (1) Central Business District (2) Regional Shopping Centers (a) Anchor Stores (3) Community Shopping Center (4) Strip Location (5) Power Center ii) Size iii) Store Design iv) Product Layout 221
d) The Wheel of Retailing (Figure 16-9, text page 464) III. Institution al Change in Retailing a) Shakeout from overbuilding (especially in the recent recession!) b) Adapting to Consumer Trends c) “Bricks and Clicks” i) Website ii) Kiosks 222
Chapter 17 Integrated Marketing Communications and Direct Marketing I. Introduction – Effective Promotion a. The GEICO example i. Founded _________________ ii. Targeted ___________________________________ and Military non-comms iii. Used “direct marketing” with no ________________ Used direct mail and telephone sales for 60 years iv. 1994-95 decided to ________________________________; and so needed to expand its marketing v. 1995 spent ____________ on national TV, radio, & print vi. 1996 ______________ bought the company vii. By 2006 the ad budget was more than ________________ viii. The Problem - consumers had trouble ___________________________GEICO ix. The “Fix” 1. The original ad a. Ad ran in 1999 b. Was to be a temporary campaign c. It did not fit with the traditional, serous insurance ads of the time d. The company was flooded with calls and letters asking to see more of the gecko!! e. GIECO, a 15 minute call could save you 15% or more on car insurance 223
2. The “next” campaign wanted to draw in younger consumers and wanted consumers to realize that using GEICO.com is simple. So easy even _______________ 3. …and a joint partnership, fun approach: II. What is Promotion? a. Promotion is _______________ i. Recall that one criteria for a good market segment is that it is ____________ ii. Promotion is one way that we reach the segment. III. The Promotional Mix a. Promotion is one of the P’s in the Marketing Mix i. We also use the term “mix” to refer to the elements used by marketers ii. The Promotional Mix consists of the tools marketers use to accomplish the organization’s communications objectives b. The traditional roles of the promotion mix include: i. _______________ prospective buyers about the benefits of the product ii. _____________________ them to try it iii. ________________________ them later about the benefits they enjoyed by using the product To which we add: iv. to ___________________________ with consumers c. ___________ goals include to: i. Communicate customer value ii. Build a brand/company image
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