Transcript Direct Marketing

1
Integrated Marketing Communications
Chapter Objectives
• To review the various elements of the promotional mix:
advertising, sales promotion, public relations, direct
marketing, Internet marketing, and personal selling.
• To introduce the concept of integrated marketing
communications (IMC) by considering its evolution,
growth, importance, and a broader view.
• To examine how various marketing and promotional
elements must be coordinated to communicate
effectively with the IMC perspective.
• To summarize a model of the IMC planning process and
examine the steps in developing a marketing
communications program.
© 2005 McGraw-Hill Ryerson Limited
Promotion
• “Coordination of all seller-initiated
efforts to set up channels of information
and persuasion to sell goods and
services or to promote an idea.”
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
Publicity/Public
Relations
Personal Selling
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
© 2005 McGraw-Hill Ryerson Limited
Advertising
• Non-personal communication
– Highly pervasive form of promotion 
best known, most widely discussed.
– Used to create brand images and
symbolic appeals for a company or
brand.
– Ability to strike a responsive chord with
consumers.
© 2005 McGraw-Hill Ryerson Limited
Classifications of Advertising
National
National Advertising
Advertising
Retail/Local Advertising
Primary vs. Selective
Demand Advertising
Consumers
Business-to-Business Advertising
Professional Advertising
Trade Advertising
© 2005 McGraw-Hill Ryerson Limited
Organizations
An Example of “B-to-B” Advertising
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
© 2005 McGraw-Hill Ryerson Limited
Direct Marketing
• Communication directly with target
consumers to generate a response or
transaction.
© 2005 McGraw-Hill Ryerson Limited
Direct Marketing is Part of IMC
Direct
Mail
Direct
Response
Advertising
Internet
Sales
Direct
Marketing
Shopping
Channels
Telemarketing
Cataloging
Catalogs
© 2005 McGraw-Hill Ryerson Limited
Bose Uses Direct Response Advertising
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
© 2005 McGraw-Hill Ryerson Limited
Internet Marketing
• Interactive media allow two-way
communication.
• Users can participate in and modify the
form and content of information they
receive.
© 2005 McGraw-Hill Ryerson Limited
Using the Internet as an IMC Tool
The
Internet
Educates or
Informs
Customers
Obtains
Customer
Database
Information
A Persuasive
Advertising
Medium
Communicates
and Interacts
With Buyers
A Sales Tool
or an Actual
Sales Vehicle
Provides
Customer
Service and
Support
© 2005 McGraw-Hill Ryerson Limited
Builds and
Maintains
Customer
Relationships
American Airlines Encourages Customers to
Do It All Online
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
© 2005 McGraw-Hill Ryerson Limited
Sales Promotion
• Activities providing extra value or
incentive to sales force or consumer.
• Activities can be consumer-oriented
or trade-oriented.
© 2005 McGraw-Hill Ryerson Limited
Sales Promotion Tools
Coupons
Trade
Allowances
Samples
Premiums
Contests/Sweepstakes
POP Displays
Events
Training
Programs
Trade
Shows
Coop
Advertising
Consumer-oriented
Trade-oriented
For end-users
For resellers
Refunds/Rebates
Bonus Packs
Loyalty Programs
© 2005 McGraw-Hill Ryerson Limited
Various Uses of Sales Promotion
Introduce New
Products
Combat
Competition
Enhance
Personal Selling
Get Existing
Customers to
Buy More
Sales
Promotion
Tie In
Advertising &
Personal Selling
Attract New
Customers
Maintain Sales In
Off Season
Increase Retail
Inventories
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
Publicity/Public
Relations
© 2005 McGraw-Hill Ryerson Limited
Public Relations
• Evaluating public attitudes, identifying
policies and procedures of individuals or
organizations, and executing a program
of action to gain public understanding
and acceptance.
© 2005 McGraw-Hill Ryerson Limited
Publicity
• Non-personal communications
regarding an organization, product,
service, or idea.
• Idea reaches public in a form not
directly paid for by the company.
• More credible to consumers than other
forms of promotion.
© 2005 McGraw-Hill Ryerson Limited
Publicity Vehicles
Feature
Articles
News
Releases
Interviews
Publicity
Vehicles
Press
Conferences
Special
Events
© 2005 McGraw-Hill Ryerson Limited
Advertising Versus Publicity
Factor
Advertising
Publicity
Control
Great
Little
Credibility
Lower
Higher
Reach
Measurable
Undetermined
Frequency
Schedulable
Uncontrollable
Cost
High/Specific
Low/Unspecified
Flexibility
High
Low
Timing
Specifiable
Tentative
© 2005 McGraw-Hill Ryerson Limited
Public Relations Tools
Publicity
Vehicles
Community
Activities
Special
Publications
Corporate
Advertising
Public Affairs
Activities
Cause-related
Marketing
Special Event
Sponsorship
© 2005 McGraw-Hill Ryerson Limited
DuPont Uses Public Relations to Enhance Its Corporate Image
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
Publicity/Public
Relations
Personal Selling
© 2005 McGraw-Hill Ryerson Limited
Personal Selling
• Person-to-person communication.
• Seller encourages prospective buyers to
purchase company’s product/service or
to act on an idea.
• Direct contact between buyer and seller
gives communication flexibility to
marketer.
© 2005 McGraw-Hill Ryerson Limited
Participants in the Promotional Process
Figure 1-3
© 2005 McGraw-Hill Ryerson Limited
Integrated Marketing Communications
• IMC coordinates various promotional
elements and marketing activities which
communicate with a firm’s customers to
provide clarity, consistency, and
maximum communications impact.
• Evolved as companies realized the need
for strategic integration of promotional
tools.
© 2005 McGraw-Hill Ryerson Limited
Traditional Approach to Marketing
Communications
Point of
Purchase
Special
Events
Publicity
Media
Advertising
Public
Relations
Direct
Marketing
Sales
Promotion
Packaging
Direct
Response
Interactive
Marketing
© 2005 McGraw-Hill Ryerson Limited
Contemporary IMC Approach
Packaging
Sales
Promotion
Point of
Purchase
Publicity
Interactive
Marketing
Media
Advertising
Direct
Marketing
Direct
Response
Public
Relations
Special
Events
© 2005 McGraw-Hill Ryerson Limited
Reasons for the Growth of IMC
Planning Efficiency and
Effectiveness
Consumer Adoption of
Technology and Media
Innovative Marketing
Practices
Shifting of marketing
dollars
Movement from
advertising focus
Growth of the Internet
Growth of database
marketing
Shift in power
© 2005 McGraw-Hill Ryerson Limited
Importance of IMC
Consumer’s Point of
View
• IMC helps link
elements of
promotional
campaign to clearly
and accurately
represent the brand.
Relationship
Marketing
• Allows marketers to
create, maintain, or
enhance long-term
relationships with
customers or
stakeholders.
• More cost-effective
to retain customers
than acquire new
ones.
© 2005 McGraw-Hill Ryerson Limited
Dell Focuses on Building a Relationship With
Customers
© 2005 McGraw-Hill Ryerson Limited
A Broader View of IMC
• IMC can be expanded to consider all
sources of brand or company contact by
customer.
• A total marketing communications
strategy recognizes how ALL marketing
activities communicate with customers.
• Everything the company says and does
needs to communicate a common
theme.
© 2005 McGraw-Hill Ryerson Limited
IMC and Branding
2003 Brand Value
Brand Identity is a
combination of factors:
Name, logo, symbols,
design, packaging,
product or service
performance, and
image or associations
in the consumer’s
mind.
IMC plays a major role
in the process of
developing and
sustaining brand
identity and equity.
(Billions of Dollars)
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10. Mercedes
© 2005 McGraw-Hill Ryerson Limited
$70.5
$65.1
$51.8
$42.3
$31.1
$29.4
$28.0
$24.7
$22.2
$21.4
Communication Role of Product Decisions
• Product planning involves portraying
the product as a bundle of benefits for
consumers.
• Product Symbolism
– What a product or brand means to
consumers.
– What consumers experience by
purchasing or using the product.
© 2005 McGraw-Hill Ryerson Limited
Product Symbolism
© 2005 McGraw-Hill Ryerson Limited
Brand Equity
• Added value resulting from product’s
image, customer attachment to
product, and impressions of product
differentiation.
© 2005 McGraw-Hill Ryerson Limited
Packaging is More Than a Container
© 2005 McGraw-Hill Ryerson Limited
Communication Role of Price Decisions
• Economic cost to
consumers for all
product benefits
combined.
• Advertising and
promotion reinforce
consumer’s belief
that product’s
benefits or qualities
accurately indicates
the price decisions.
© 2005 McGraw-Hill Ryerson Limited
Communication Role of Distribution
Decisions
Marketing Channels
• Interdependent organizations involved
in making product or service available.
• Distribution strategy should take into
account the communication objectives –
has an impact on IMC program.
• What messages are conveyed by selling
a product at Holt Renfrew instead of
Wal-Mart?
© 2005 McGraw-Hill Ryerson Limited
Promotional Management
• “Coordinating the promotional mix
elements to develop a controlled,
integrated program of effective
marketing communications.”
© 2005 McGraw-Hill Ryerson Limited
Promotional Management: Melitta Coffee
Campaign
Figure 1-5
© 2005 McGraw-Hill Ryerson Limited
Review the IMC Plan
1. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program
4. A program for implementing the strategy
5. A process for monitoring and evaluating performance
© 2005 McGraw-Hill Ryerson Limited
IMC Planning Model
Review of Marketing Plan
Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Advertising
Sales
Promotion
PR/
Publicity
Personal
Selling
Direct
Marketing
Internet/
Interactive
Advertising
Objectives
Sales
Promotion
Objectives
PR/
Publicity
Objectives
Personal
Selling
Objectives
Direct
Marketing
Objectives
Internet/
Interactive
Objectives
Message
Strategy
Sales
Promotion
Strategy
PR/
Publicity
Strategy
Personal
Selling
Strategy
Direct
Marketing
Strategy
Internet/
Interactive
Strategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
© 2005 McGraw-Hill Ryerson Limited