Integrated Marketing Communications, & Direct Marketing

• Involves both a source (sender) and a receiver
• Begins when sender has a thought or idea and wants to share it with one or more receivers.

• Words
• Sounds
• Colors
• Space
• Themes

• Symbols
• Pictures
• Numbers
• Gestures
• Movement

• Required for transmission
• voice, gesture, newspaper, or other communication medium.

• Anything that interferes with, distorts, or slows the transmission of information.
• Message may not be received by the desired target audience.

• Interpersonal communicators get the receiver's response to a message directly.
• Mass communicators must rely on market research or sales trends

• Promotional programs are directed to
  • Ultimate consumers
  • Intermediaries
  • or both.
• Promotional programs directed to buyers of consumer products often use mass media because the number of potential buyers is large.
• Personal selling is used at the place of purchase.
• Direct marketing may be used to encourage first-time or repeat purchases.
• Combinations are a necessity for some target audiences.
• Advertising directed to business buyers is used selectively.
• Personal selling is especially important. Because such buyers often have specialized needs or technical questions.
• Personal selling is also the major promotional ingredient for intermediary

• The concept of designing marketing communications programs
• that coordinate all promotional activities–
  • advertising,
  • personal selling,
  • sales promotion,
  • public relations
  • direct marketing–
• to provide a consistent message across all audiences

• Designed for a well-defined target audience
• Measurable
• Cover a specified time period.

• Funds are allocated as a percentage of past or anticipated sales
• Advantages
  • simple
  • Provides a financial safeguard 
• Disadvantage
  • Implies that sales cause promotion. rather than the other way around.
  • Could reduce promotion budget because of a downturn in sales

• Matching the competitor’s absolute level of spending or the proportion per point of market share.
• Advantage
  • It is important to consider the competition.
• Disadvantage
  • The competition may have different promotional objectives

• Common to many small businesses
• Money is allocated to promotion after all other budget items are covered.
• Fiscally conservative
• This approach has little else to offer.

• Best approach
• Company
  • Determines promotion objectives
  • Outline the tasks to accomplish these objectives
  • Determines the promotion costs of performing these tasks.
• Advantages
  • Ties expenditure to specific objectives
  • Prioritizes tasks if costs are too high.
• Disadvantages
  • Requires experience and judgment.
  • May require extensive reworking to meet budgets

• Specify the combination of the five basic IMC tools–advertising, personal selling, sales promotion, public relations, and direct marketing.
• Promotion mix can vary
  • Simple program using a single tool
  • Comprehensive program using all forms.
• Assess the relative importance of the various tools

• Design of the promotion plays a primary role in determining the message that is communicated to the audience.
• Design activity is viewed as the step requiring the most creativity.
• Design each promotional activity to communicate the same message.

• Determine the most effective timing.
• Promotion schedule describes
  • the order in which each promotional tool is introduced
  • the frequency of its use during the campaign.
• Factors such as seasonality and competitive promotion activity can influence the schedule.

• Test-result database for comparisons 
  • Relative impact of the promotional tools
  • Execution options of promotion tools,
  • In varying situations.
• Information from the database will
  • allow informed design and execution decisions
  • Provide support for IMC activities during internal reviews by financial or administrative personnel.
• Carrying out promotion program is expensive and time consuming.
• Time to implementation is longer for higher income firms.
• Trend is toward a long-term perspective integrating all forms of promotion

• Direct marketing growth (in terms of spending, revenue generated, and employment) has outpaced total economic growth.
• Continued growth will come from
  • Number of consumers with Internet access
  • Number of businesses with websites
  • Electronic commerce offerings .

• don’t have to go to a store
• shop 24 hours
• save time
• avoid hassles with salespeople
• save money
• fun and entertaining
• Privacy
• Customer service such
  • Toll-free numbers
  • Representatives with access to information about purchase preferences
  • Overnight delivery services
  • Unconditional guarantees.

• Direct orders: From  offers with all the information necessary for a prospect to make a decision and complete the transaction.
• Lead generation: From offers designed to generate interest in a product or service and a request for additional information.
• Traffic generation: From offers designed to motivate people to visit a business.

• Databases
  • demographic, media, and consumption profiles of customers
  • Allow direct marketing to specific customers.
• Data must be
  • unbiased,
  • timely,
  • pertinent,
  • accessible, and
  • organized to lead managers to decisions
• Some data must be collected in consumers’ homes
• Other data are available from businesses.
• Technology such as optical scanners helps collect data with as little intrusion on the customer as possible.

• Global growth of direct marketing may depend on technology.
• Reliable physical delivery is necessary
• Payment is an issue.
  • Fewer consumers have credit cards,
  • Alternatives (C.O.D., bank deposits) are needed..

• Telephone calls during the dinner hour.
• SPAM - the proliferation of e-mail advertising.
• Legislatures are also taking an interest
  • input from consumers
  • input from governments
  • input from direct marketing associations.