Integrated Marketing Communications and Direct Marketing

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Integrated Marketing Communications (IMC)
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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
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Promotional Mix
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Inform prospective buyers, Persuade them to try, Remind them of the benefits.
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Promotional Elements
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Advertising, Personal selling, Public relations, Sales promotion, Direct marketing
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Advertising
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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.
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Personal Selling
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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
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Public Relations
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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
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Sales Promotion
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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.
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Direct Marketing
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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
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Three Product Characteristics
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Complexity, Risk, Ancillary Services
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Complexity
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the technical sophistication of the product and hence the amount of understanding needed to use it.
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Risk
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for the buyer, the financial, social, and physical risks
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Ancillary Services
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pertain to the degree of service or support required after the sale
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Two Channel Strategies
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Push Strategy, Pull Strategy
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Push Strategy
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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.
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Pull Strategy
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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
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Promotion Decision Process
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Planning, Implementation, Evaluation
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Planning
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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
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Implementation
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Executing the promotion program: 1. pretest the promotion 2. carry out the promotion
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Evaluation
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Assessing the promotion program: 1. posttest the program 2. make needed changes
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Hierarchy of effects
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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
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Awareness
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the consumer’s ability to recognize and remember the product or brand name
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Interest
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an increase in the consumer’s desire to learn about some of the features of the product or brand
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Evaluation
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the consumer’s appraisal of the product or brand on important attributes
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Trial
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the consumer’s actual first purchase and the use of the product or brand
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Adoption
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through a favorable experience on the first trial, the consumer’s repeated purchase and use of the product or brand
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Promotion Objectives have what three important qualities?
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1. be designed for a well-defined target audience 2. be measurable 3. cover a specified time period
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Percentage of Sales Budgeting
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involves allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold
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Competitive Parity Budgeting
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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.
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All-you-can-afford Budgeting
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involves allocating funds to promotion only after all other budget items are covered
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Objective and Task Budgeting
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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
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Developing the IMC Program
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1. Selecting the right promotional tools 2. Designing the promotion 3. Scheduling the promotion
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Executing and Assessing the Promotion Program
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1. IMC Audit 2. Pretesting 3. Posttesting
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IMC Audit
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Analyze internal communication network of the company
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Pretesting
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before design used to allow for changes and modifications that improve its effectiveness
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Posttesting
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recommended to evaluate the impact of each promotion and the contribution of the promotion toward achieving the program objectives

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