Integrated Marketing Communications and Direct Marketing

Integrated Marketing Communications (IMC)
the concept of designing marketing communications programs that coordinate all promotional activities — advertising, personal selling, sales promotion, public relations, and direct marketing — to provide a consistent message across all audiences
Promotional Mix
Inform prospective buyers, Persuade them to try, Remind them of the benefits.
Promotional Elements
Advertising, Personal selling, Public relations, Sales promotion, Direct marketing
any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. a. easy to reach a large audience. b. paid by company (less credible) c. high costs d. no feedback.
Personal Selling
the two-way flow of communication between a buyer and seller designed to influence a person’s or group’s purchase decision. a. good feedback b. selective audience c. persuasive d. can convey complex info e. expensive per exposure f. may differ across sales people
Public Relations
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. a. not paid by company– most credible b. hard to get the media to cooperate
Sales Promotion
a short-term inducement of value offered to arouse interest in buying a good or service. a. changes behavior b. flexible c. easily duplicated d. can lead to wars.
Direct Marketing
uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. a. messages can be prepared quickly b. maintains relationship with customer c. low response rate d. managing databases costly
Three Product Characteristics
Complexity, Risk, Ancillary Services
the technical sophistication of the product and hence the amount of understanding needed to use it.
for the buyer, the financial, social, and physical risks
Ancillary Services
pertain to the degree of service or support required after the sale
Two Channel Strategies
Push Strategy, Pull Strategy
Push Strategy
a. Direct-to-Consumer b. Directing the promotional mix to channel members to gain their cooperation to ordering and stocking the product. c. Personal selling and sales promotions play major roles.
Pull Strategy
a. Direct promotional mix at ultimate consumers to encourage them to ask the retailer for a product. b. Direct-to-Consumer c. Common in pharmaceutical companies
Promotion Decision Process
Planning, Implementation, Evaluation
Developing the promotion program: 1. identify the target audience 2. specify the objectives 3. set the budget 4. select the right promotional tools 5. design the promotion 6. schedule the promotion
Executing the promotion program: 1. pretest the promotion 2. carry out the promotion
Assessing the promotion program: 1. posttest the program 2. make needed changes
Hierarchy of effects
the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action. Five stages: awareness, interest, evaluation, trail, adoption
the consumer’s ability to recognize and remember the product or brand name
an increase in the consumer’s desire to learn about some of the features of the product or brand
the consumer’s appraisal of the product or brand on important attributes
the consumer’s actual first purchase and the use of the product or brand
through a favorable experience on the first trial, the consumer’s repeated purchase and use of the product or brand
Promotion Objectives have what three important qualities?
1. be designed for a well-defined target audience 2. be measurable 3. cover a specified time period
Percentage of Sales Budgeting
involves allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold
Competitive Parity Budgeting
involves allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market.
All-you-can-afford Budgeting
involves allocating funds to promotion only after all other budget items are covered
Objective and Task Budgeting
involves allocating funds to promotion whereby the company — 1. determines its promotion objective 2. outlines the task to accomplish these objectives 3. determines the promotion cost of performing these tasks
Developing the IMC Program
1. Selecting the right promotional tools 2. Designing the promotion 3. Scheduling the promotion
Executing and Assessing the Promotion Program
1. IMC Audit 2. Pretesting 3. Posttesting
IMC Audit
Analyze internal communication network of the company
before design used to allow for changes and modifications that improve its effectiveness
recommended to evaluate the impact of each promotion and the contribution of the promotion toward achieving the program objectives