Lecture 8 - Direct Marketing and Sales Promotion

Question 1

what are some elements of the promotion mix

Answer 1

• sales promotion
• direct marketing
• personal selling
• digital marketing

Question 2

what is direct marketing

Answer 2

• an interactive form of marketing which uses one or more advertising media to affect a measurable response or transaction at any point

Question 3

factors that led to the growth of direct marketing

Answer 3

• expansion of postal service
• consumer credit cards
• tech advancements

Question 4

what are the objectives of direct marketing

Answer 4

• to seek a behavioural response
• to build an image
• to maintain customer satisfaction
• to inform customers in an interactive but direct way

Question 5

what are the 2 direct marketing approaches

Answer 5

• one step approach = medium used directly to obtain order
• two step approach = uses more than one medium
  – first effort = screen potential buyers
  – second effort = generates the response

Question 6

what is a lead generation program

Answer 6

• often called a two step approach. The 1st step generates the lead, the 2nd/3rd/4th step closes the sale

Question 7

what is an order generation program

Answer 7

• often called a one step approach. When the person responds, it is to directly purchase the product

Question 8

ways of direct marketing

Answer 8

• direct mail
• email
• tv adverts
• telemarketing

Question 9

what is repetitive person to person selling

Answer 9

Salesperson visits the buyer’s location to sell frequently purchased products

Question 10

what is non repetitive person to person selling

Answer 10

Salesperson visits the buyer’s location to sell infrequently purchased products

Question 11

what are party plans

Answer 11

Salesperson offers products to groups of people through parties and demonstrations

Question 12

what are the advantages of direct marketing

Answer 12

• targeted and personalised communication
• measurable
• cost-effective
• build relationships
• flexibility

Question 13

what are the disadvantages of direct marketing

Answer 13

• intrusive
• requires a target list
• costly
• limited reach
• compliance

Question 14

what are sales promotions used for

Answer 14

• encourage customers to try a new product
• build awareness and brand loyalty
• increase purchases by current customers

Question 15

what are some benefits of sales promotion

Answer 15

• leads to feedback from the marketplace which helps identify needs and problems
• helps develop long term partnerships with customers
• differentiate from competition

Question 16

2 types of sales promotion

Answer 16

• trade promotions
• consumer promotions

Question 17

types of trade promotions

Answer 17

• promotional allowances
• cooperative advertising
• slotting allowances
• trade shows and conventions

Question 18

types of consumer promotions

Answer 18

• coupons
• premiums (low cost items given to consumers at a discount, builds product loyalty)
• deals