Topic 11: Sales Promotion, Direct Marketing & Personal Selling

Question 1

Sales Promotion

Answer 1

Activities hat offer extra value or incentives to the sale force, distributors, or ultimate consumer to create a immediate sale.

• extra incentive to buy
• targeted to different parties
• a tool to speed up sales
• complements other IMC activities in brand building

Question 2

Limited Quantity vs Time

Answer 2

Sale promotions are scarcity messages, framed as:

• limited time
• limited quantity

Both accelerate purchase by increasing willingness to buy now and reducing further search. Limited quantity increases purchase intention more, due to competitiveness.

Question 3

Consumer-Orientated Sales Promotion

Answer 3

1. identify target audience
2. determine sale promotion objectives
   - obtain trail and repurchase
   - increase consumption
   - defend current customers
   - target specific market segments
   - enhance IMC and build brand equity
3. check objectives are SMARTT

Question 4

Types of Promotion

Answer 4

• sampling (example to trial)
• coupons (vouches)
• premiums (an item offered, free or cost-price as an extra incentive for customers)
• bonus pack
• promotional products
• loyalty programs
• events
• contests and sweepstakes
• refunds and rebates

Question 5

Direct Marketing

Answer 5

A system of marketing by which an organisation communicates directly with customers to generate response or transaction.

• direct communication
• uses any medium
• response builds database

Question 6

Direct Marketing Techniques

Answer 6

• direct selling
• direct email
• catalogue campaign
• telemarketing
• SMS
• direct response advertising
• electronic home shopping
• electronic interactive marketing

Question 7

One-Step Approach: Direct Marketing

Answer 7

Medium is used to obtain an order.
Generates an immediate sale.
For example, direct response TV, and online orders.

Question 8

Two-Step Approach: Direct Marketing

Answer 8

Medium is used for inquiry and to qualify prospects.
Follow up with a second medium to complete the sale.
also know as permission marketing.

Question 9

Personal Selling

Answer 9

Assist and persuade via a person-to-person communication process. (direct, personal, real time)

Communication process is known as DYADIC COMMUNICATION.