4.02C  Explain the nature of 
   direct marketing channels
   •  Direct Marketing: there are no channel intermediaries 
    (retailers, wholesalers) so communication happens 
    directly between the manufacturer and customer.
   • Communication channels used for direct marketing:
    • 1.  Inserts in newspapers and magazines
    • 2.  Customer care lines
    • 3.  Catalogues
    • 4.  Coupons
    • 5.  Door drops
    • 6.  Radio and TV
    • 7.  The Internet
   Advantages/Disadvantages associated 
   with direct marketing
     • Advantages:
      • The most effective way to advertise for your business
      •  Direct marketing involves direct business. So it is cost 
       beneficial for consumers, as there is no price hike due to 
       wholesalers or retailers. 
       - Marketing executives can state certainly of the exact 
       response to their products. 
       - The profit or loss can be more accurately judged
     • Disadvantages
      • Sometimes, direct mailing offends the customers and many 
       do not endorse it as they say it inhibits their private lives.
       Article Source: http://EzineArticles.com/2560926
   The Internet Impact on 
   Business
   • The Internet 
    • E-mail
    • Companies can communicate directly with customers.  Sales 
     increase, direct feedback is given
   • Importance of databases to direct marketing
    • Helps you get the most out of your money for advertising and 
     helps you get your name and business out to new customers
    • Should include the address of potential customers and 
     information about the address that is relevant to the product 
     you are offering
    • Should have accurate demographic information 
    • No sales tax on the mailing lists purchased
    • Updated weekly
   4.02D  Identify communications 
   channels used in sales promotion
    
   •  Terms to know:
     • Free-standing insert:
     • Coupons
     • Rebates
     • Push money
     • Point of sale displays
     • Trade allowances
     • Dealer loaders
     • Contests
     • Sweepstakes
     • Games
     • Loyalty programs
     • Demonstrations
     • Personal app
   Differences between advertising and 
   sales promotions
     • Advertising is a non-personal form of promotion that is 
      delivered through selected media outlets that, under most 
      circumstances, require the marketer to pay for message 
      placement.
     • Sales Promotions are short-term incentives to encourage 
      the purchase or sale of a product or service
   • Explain reasons that businesses use sales 
    promotions
     • Attempts to provide added value or incentives as well as 
      stimulate sales