Chapter 16: Integrated Marketing Communications and Direct Marketing

Promotional Mix
The combination of one or more of these communications tools: advertising, personal selling, sales promotion, public relations, and direct marketing.
Integrated Marketing Communications (IMC)
The concept of designing marketing communications programs that coordinates all promotional activities – advertising, personal selling, sales promotion, public relations, and direct marketing – to provide a consistent message across all audiences to maximize the promotional budget and impact
Communication
The process of conveying a message which includes 6 elements
Source
Message
Channel
Receiver
Encoding
Decoding
Source
A company or person who has information to convey.
Message
The information sent by the source to the receiver.
Channel
The means of conveying a message.
Receiver
Customer who reads, hears, or sees the message sent.
Encoding
The process of having the sending encode a message into a set of symbols.
Decoding
The process of having to decode the set of symbol to get the message.
Field of Experience
Similar understanding and knowledge; to communicate effectively, a sender and a receiver must have mutually shared fields of experience.
Response
The impact the message has on the receiver’s knowledge, attitude, or behaviour
Feedback
Communication flow from receiver to sender that helps the sender know whether the message was decoded and understood as intended.
Noise
Extraneous factors that can work against effective communication by distorting a message or the feedback received.
Advertising
Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.
Personal Selling
The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Public Relations
Form of communication that seeks to alter the views and opinions of customers on a company or its products and services.
Publicity
A non-personal, indirectly paid presentation of an organization, good, or service
Sales Promotion
A short-term inducement of value offered to arouse interest in buying a good or service.
Direct Marketing
Promotional Element that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or to visit a retail outlet.
Stages of a Product Life Cycle
Introduction, growth, Maturity, decline
Introduction
Inform – Publicity, advertising, salesforce calling, free samples.
Growth
Persuade – Personal selling, advertising different aspects that separate it from the competition.
Maturity
Remind – Reminder advertising, discounts, limited personal selling, mail reminders.
Decline
Phase Out – Little money spent on advertising.
Push Strategy
Direct the promotional mix to channel members to gain their cooperation in ordering and stocking a product.
Pull Strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product.
Hierarchy of Effects
The sequence of stages a prospective buyer goes through, from initial awareness of a product to eventual action

Awareness
Interest
Evaluation
trial
Adoption

Percentage of Sales budgeting
Allocating funds to advertising as a percentage of past or anticipated sales, in terms of either dollars or units sold
Competitive Parity Budgeting
Matching the competitors’ absolute level of spending or the promotion per point of market share.
All-you-can-afford budgeting
Allocating funds to a promotion only after tall other budget items are covered
Objective and task budgeting
A budget approach whereby the company determines its promotional objective, outlines the tasks to accomplish these objectives, and then determines the promotion cost of performing these tasks.
Direct Orders
The result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Lead Generation
The result of an offer designed to generate interest in a product or service and a request for additional information.
traffic Generation
The outcome of an offer designed to motivate people to visit a business.
Complexity
refers to the technical sophistication of the product and hence the amount of understanding required to use it
Risk
for the buyer can be assessed in terms of financial, social, and physical
Ancillary Services
pertain to the degree of service or support required after the sale
Pre-purchase Stage
advertising is more helpful than personal selling because advertising informs the potential customer of the existence of the product and the seller
Purchase Stage
the importance of personal selling is highest, whereas the impact of advertising is lowest
Post-Purchase Stage
the salesperson is still important. In fact, the more personal contact after the sale, the more the buyer is satisfied. Advertising is also important to assure the buyer that the right purchase was made.