Chapter 18 Notes

Integrated Marketing Communications and Direct Marketing

Chapter 18

The Communication Process

• Requires Six Elements: a source, a message, a channel of communication, a receiver, and a process of

encoding and decoding.

Promotional Mix

• Advertising: paid, nonpersonal communication

• Personal Selling: the two-way flow of communication between a buyer and seller

• Public Relations: a form of communication that seeks to influence the feelings and opinions of customers and stakeholders

• Sales Promotion: a short-term inducement of value offered to arouse interest in buying.

• Direct Marketing: uses direct communication with consumers to generate a response

Promotional Mix

Promotional Mix Considerations

• Promotional Mix Decisions are based on:1. The Target Audience

2. The Product Life Cycle

3. Product Characteristics

4. Stages in the Buying Decision

5. Channel Strategies

Developing the Promotional Program

1. Who is the target audience?

2. What are (1) the promotional objectives, (2) the amount of money that can be budgeted, and (3) the kinds of promotion to use?

3. Where should the promotion be run?

4. When should the promotion be run?

Identify the Target Audience

• The group of prospective buyers toward which a promotion program is directed. – What is your target market’s lifestyle

attitudes, and values?

Specify Promotional Objectives

• Awareness: The consumer’s ability to recognize and remember the product or brand name.

• Interest: An increase in the consumer’s desire to learn about some of the features of the product or brand.

• Evaluation: The consumer’s appraisal of the product or brand on important attributes.

• Encouraging Trial: The consumer’s actual first purchase and use of the product or brand.

• Build Loyalty: the consumer’s repeated purchase and use of the product or brand.

Setting Promotional Budget

• Percentage of Sales: funds are allocated to promotion as a percentage of past or anticipated sales.

• Competitive Parity: matching competitor’s absolute level of spending.

• All You Can Afford: money is allocated only after all other money is allocated.

• Objective and Task: the company determines objectives, outlines the tasks to accomplish, determines the promotional costs of performing tasks.

Where and When?Evaluation

• Scheduling the Promotion:

• Evaluation: – Pretests and Postests

Direct Marketing

• Forms: direct mail and catalogs, television, telemarketing, direct selling, direct response advertising, online

marketing. • Growth: Technology has helped Direct Marketing grow.

The Value of Direct Marketing

• Direct Marketing Responses– Direct Orders: the result of offers that

contain all the information necessary for a prospective buyer to make a decision to purchase.

– Lead Generation: the result of an offer designed to generate interest in a product and request additional information.

– Traffic Generation: the result of an offer designed to motivate people to visit a business.

Tech, Global, and Ethical Issues

• Technology: – Databases make it easer to target customers. – Optical Scanners make collecting data less

obtrusive.

• Global: – Direct Marketing systems are less developed in

other countries due to lack of communication channels and payment methods.

• Ethics: – privacy, annoyance, spam