Direct mail refers to the use of postal correspondence for promotional purposes. Examples include the use of newsletters, letters, postcards, brochures and catalogues sent through the post to targeted customers to keep them informed and to persuade them to make purchases. It is usually used to target specific market segments and aims to encourages customers to buy directly from the business organization.A drawback of using direct mail is the potentially high costs of administration and postage. Also, many customers regard direct mail as junk mail (spam) so a lot of the advertising materials get disposed of without customers paying attention to the marketing messages. Although direct mail is applicable to almost all businesses, the sheer amount of promotional information sent through the post can create advertising clutter, thus making it difficult for a particular advert to stand out.

Edward Bernays (1891-1995), considered as the father of public relations, defined the concept as the “management function which tabulates public attitudes, defines the policies, procedures and interest of an organisation followed by executing a program of action to earn public understanding and acceptance.”

Examples of public relations activities include:

• Publicity events

• Speeches to targeted groups and professional organizations (such as seminars and receptions)

• Talk show appearances (radio or TV)

• Books and other writings

• Direct communication (such as Newsletters or email)

• Blogs and vlogs

• Social media, such as Twitter, Instagram, TikTok, LinkedIn, and Facebook

• Working with the Press / news media.

Public relations helps to develop positive relationships with the press, media and general public. It can also be a highly cost effective method of promotion, especially if the new media provides free coverage of a positive story about the business. However, this is not always the case; some businesses use celebrities or famous people to endorse their organization or brands as a form of public relations.

Whilst many firms have specialists to communicate positive news with the press, journalists and news media often report an amended version of the story. Despite the efforts (time and money) needed to put a good story together for the press, there is no assurance that they will run the story.

Sponsorship is a BTL promotional strategy that involves a business providing financial support (the sponsor) to another organization or event. For the sponsor, there can be huge marketing advantages of being associated with the sponsored event or organization. For example, Adidas sponsors the FIFA World Cup (football or soccer), and Coca-Cola sponsors the Olympic Games. Televised broadcasts of these sporting events give Adidas and Coca-Cola exposure to a global audience. Note that the sponsors do not pay for television adverts during the event (which would be classified as above the line promotion).

Sponsorship deals can provide a long-term source of finance for organizations. For example, Arsenal Football Club in London received a €132 million sponsorship deal in 2006, lasting 15-year with Emirates Airline. In November 2012, this was extended with another £150m deal to extend shirt sponsorship until 2019 and naming rights to the Emirates Stadium until 2028. Other airlines that sponsor top football clubs include Etihad Airways (Manchester City Football Club), Qatar Airways (Barcelona Football Club) and South African Airways (Sunderland Football Club).

Which football club has the most lucrative football shirt sponsorship deal? Take a look at this website to find out...

 Take a look at this short video clip about the history of football shirt sponsorship – it is interesting to see how things have changed since the 1970s:

However, negative behaviour of the sponsor could harm the organization’s reputation. For example, Volkswagen’s heavy investment in football sponsorship deals became questionable after its emissions scandal was exposed in late 2015. According to Soccer 365, VW sponsors about 18 of the 36 football clubs in Germany’s top two leagues, including football giants Wolfsburg and Bayern Munich.

Also, sponsorship deals can be very expensive (see examples of football clubs above). A recent report in Business Insider also showed that over half of brands that people associated with Euro 2016 were not even official sponsors of Europe’s most lucrative sporting event! Read the article here.

  Click on the following hyperlink to watch a short video clip of the official sponsors of the FIFA World Cup 2022 and see how many sponsors you recognise.

 Key concept - Ethics

Discuss why the world's most valuable sports clubs, such as Real Madrid Football Club and the New York Yankees, would not want or accept sponsorship deals from tobacco companies.

 Teacher only box

Possible discussion points could include consideration of such unethical action (placing profits before people) and how this is likely to negatively affect the corporate image of the sports clubs which, directly or indirectly, promote healthy lifestyles. In addition, these sporting organizations are likely to have a young fan base, thus any association with harmful products such as tobacco would not be socially (or ethically) acceptable for the vast majority of their sporting fans.
 

Customer loyalty schemes reward those who make repurchases. Customers who are members of the loyalty programme can accumulate points to qualify for price discounts and free gifts. This BTL strategy also enables the business organization to gain access to customer data and details which can be used for direct marketing purposes (such as direct mail). The strategy can be applied to almost all businesses and industries, e.g. airline companies, cinemas, hotels, restaurants and retailers.

However, customer loyalty programmes can be expensive to operate (such as the cost of offering price discounts, the free gifts and administrative costs).

Sales promotion is a short term promotional tactic used to entice customers to buy a certain product. It is a temporary measure to boost sales using methods such as:

Sales promotion is often used to encourage customers to trial a new product or to entice them to switch from a rival brand.

The main drawback of sales promotion is that it is costly to maintain, i.e. it is only a short-term method to increase sales volume. Also, customers may come to expect or anticipate further sales promotions (thereby delaying their purchase).