Chapter 14: integrated marketing communications and direct marketing

field of knowledge
a similar understanding and knowledge applied to a message
age of engagement
consumers are no longer satisfied with seeing promotion they want to be a part of it.
twitter and promotion
1) tweet about something new and important.
2) campaign in real-time.
3) add a link to become involved in the announcement.
QR codes
a new form of product interaction. those square bar codes you scan with your phone to get more information
promotional mix
the combination of one or more communication tools used to
1) inform prospective buyers about the product or services benefits.
2) persuade them to try the product or service.
3) remind them about the products existence and benefits they enjoyed.
integrated marketing communication
IMC. design the marketing communications programs that coordinate all promotional activities like ads, personal selling, sales promotion, public relations, direct marketing to provide a clear message across all outlets to all audiences.
communication
process of conveying a message to others that requires six elements
the six elements of communication
1) source: any originating body that has information to convey.
2) message: formed by the information provided by the source.
3) channel of communication: a means to actually convey and deliver the message.
4) receivers: the consumers who process and interpret the message.
5) encoding.
6) decoding.
encoding and decoding
the last two elements of communication.
encoding: the sender transforms the idea into symbols.
decoding: the receiver takes symbols and message and works backwards to an idea.
errors of communication
these occur when the source has poor encoding, bad channel so it never reaches the consumer or bad decoding. poor timeliness of feedback is another problem.
feedback
the senders interpretation of responses and indicated if message was decoded and seen correctly. impact the message has on knowledge attitudes behaviors.
noise
the only extraneous factor working against communication by altering a message or feedback. could be simple or complex
mass selling
ads, sales promotions, public relations. a type of selling used on groups.
customized interaction
personal and direct selling. face to face, phone and a very interactive selling approach
advertising
any paid form of non personal communication about a product, organization, service, idea. uses mass selling and very high volume so a slow feedback loop. market research is a must.
pros and cons of advertising
Pros: garner notice, communicates specific benefits, more control over what you say and who sees it when. attributable message to a wide variety of people.
Cons: very expensive, no quick feedback so if it’s working is a crap shoot.
personal selling
two-way flow of communication between a buyer and seller often in a face to face meeting made to influence other individuals or even groups in a stage of their buying decision.
pros and cons of personal selling
pros: total control on who sees it. decreases wasted coverage in non target segments. instant feedback.
cons: to flexible kills any consistency. super expensive.
public relations
form of communication management that tries to change the feelings, opinions, beliefs of buyers, prospective buyers, shareholders, suppliers, employees about the company and it’s offerings.
publicity
the most common public relations approach. non personal and indirect method. not paid. news and editorials. indirect as you pay for PR stuff.
pros and cons of public relations
pro: credibility, people tend to belief what they hear.
cons: no control at all.
sales promotions
short term creation of value given to increase the desire to buy a product or service. used together with ads, personal selling and can be offered to intermediaries. coupons, discounts and samples.
pros and cons of sales promotions
pros: short term sales benefits.
cons: fleeting, done to much and you dilute the impact.
direct marketing
uses direct communication with buyers to make a response like an order or request for more information or even visiting a physical a location. very interactive and it’s forms are near endless
pros and cons of direct selling
pros: can be Customized to target segment and adapted quickly. growing fast.
cons: needs real time data about target segment. privacy concerns are huge.
putting together a promotion mix
1) balance between the elements affect by target segment, life cycle, product traits, buyer decision strategy and channel.
2) coordination of a consistent message.
the target audience
are you promoting to an ultimate consumer or an intermediary? to ultimate usually use mass media then personal selling at retail level. direct can encourage first times.
ads for B2B
usually very selective. personal selling is huge. sales team provide key information and support. intermediaries are motion focus. coordinate promotion by questions on mark ups.
promotion during life cycle1
1) introduction: primary inform the customer of the products existence. use all the mix elements.
2) growth: persuade to purchase with information and promotion. ads of points of difference. personal to lock-in the channel of distribution.
3) maturity: keep current buyers. remind you of existence. sales promos help keep loyalty.
4) decline: usually next to no promotion spend here.
generation y
digital natives. grown up with the technology. uses multiple channels at once. have fast and simple messages and honest communication on value while encouraging multi tasking.
push strategy
manufacturers direct the promotion mix to channel members to gain cooperation in ordering and stocking products. uses personal and sales promotions. sales man call on the guys to increase orders and sales promotions are to increase demand. get channel members to push it to customers.
pull strategy
common when inventory is tough. use the promotion mix at ultimate customer to encourage then to ask a retailer for a product. ask for it buy name in the grocery aisle.
identify the target audience
the first step in developing the promotion mix. who are your prospects. identified by primary and secondary information. the more you know about them better you can alter your mix. you could use behavioral targeting got collect information on web-browsing to deeming what ads you see.
specify promotion objectives
the second step of developing a promotion mix. customers respond in a hierarchy of effects or a string of stages a prospective buyer goes through from becoming aware of a product to action or trial and adoption. focus on one stage
types of promotion objectives
1) awareness: consumer can recognize and remember the product.
2) interest: a desire to know more about the product.
3) evaluation: assess a product or brands on key traits.
4) trial: the first real use of the products.
5) adoption: repeat purchases are striven for.
needs of promotion objectives
1) designed for a well defined target market.
2) be measurable.
3) cover a very specific time period.
set the promotion budget
the third stage of developing a promotion mix. how much to spend to reach objectives.
1)
types of budget setting
1) percentage of sales: spend on a percentage of past or estimates of sales. common.
2) competitive parity: budgeting match rivals absolute costs of spending. proportional to market share.
3) objective and task: best method for budgets. determine the promotion objectives. outline tasks to reach objectives. determine the promotional costs of each alternative.
select the right the promotion tool
the fourth stage of developing a promotion mix. Now that you have a budget specify which of the five tools you want to use. requires an analytically approach and experience. may vary from one tool to a combination of them. assess the relative importance of each tool.
design the promotion
the fifth stage of the promotion mix. central stage. ad used to see how the target is suppose to perceive. personal selling relies on skills of salesman. sales promotions has very specific inducements. public relations seen in news and direct marketing depends on written, verbal, electronic means of distribution.
how to design the promotion
way the promotion is communicated. needs creativity. insight on consumer behavior as alternative are endless. IMC needs to make all promotion designs have a consistent message.
schedule the promotion
the sixth stage of setting the promotion mix. timing can be everything. the schedule is the order of using the tools and the frequency of using them. used to generate investment, bring you to purchase areas, encourage repeats. effected by seasonality and competitive promotion.
testing your promotion
always pre test to improve effectiveness. post test to see the impact and the value deed.
data and IMC
all promotional programs should have database of information to compare relative impact of promotion tools. allows informed design and execution decisions. implementation is long and expensive some are trying to total communicators solutions trend toward integration.
IMC audit
a process to design and use the program. analyzes internal communication network and identifies key audiences and evaluated data bases and assess message in recent times.
types of direct marketing
direct mail, catalogs, tv, telemarketing, direct sales, direct response modes.
growth of direct marketing
has come about becomes of increasing interest in customer relationship management. appealing to be able to customize communication. the ability to use methods with a superior databases and new types of printing. email is on the rise.
value of direct marketing
the level of use shows value. benefits stated include convenience, 24 hours, time saving, no hassles, save money, fun and more privacy.
direct orders
from direct marketing and is all needed information for a buyer to decide to purchase and complete the transaction.
lead seperation
direct marketing designed to generate interest in a product or service and request for additional information.
traffic generation
direct marketing designed to motivate revisiting a business.
direct marketing ethics
databases now have huge consumer profiles. many countries restrict it and hurts privacy.