Chapter 17

Integrated Marketing
Communications
and
Direct Marketing
Fundamentals of Marketing
Instructor - Clyde Rupert

Integrated Marketing
Communications

- The Promotional Elements

- Developing the Promotional
Mix
- Developing an IMC Program
2

Integrated Marketing
Communications

The Promotional Elements

- Advertising
- Personal Selling
- Public Relations
- Sales Promotion
- Direct Marketing
3

IMC The Promotional

Elements

A paid form of nonpersonal communication

(TV, Print, Radio)

Paid Aspect

Page Four Color Ad in TIME

$ 339,400
4

IMC The Promotional

Elements

Two-way (generally face-to-face) flow of

communication between buyer and seller.

IMC The Promotional

Elements

Indirect form of payment for publicity

(News Story, Editorial, Product
Announcement)

IMC The Promotional

Elements

Short term inducement of value used to

get a quick burst of sales (Coupons,
sweepstakes, contests)

IMC The Promotional

Elements

Direct communication with consumers to

generate a response. (Catalogs, Direct
Mail, Online Marketing)

IMC Developing the

Promotional Mix
The Combination of one or more of
these elements.
Is called the PROMOTIONAL MIX
Its used to :
Inform Prospective Buyers
Persuade Them To Try
Remind Them of the Benefits
When fully balanced across all
audiences it becomes :
An Integrated Marketing
Communication
9

IMC Developing the

Promotional Mix

- Developing the Promotional

Mix

Determine the Balance of the Elements to be used on:

- The Target Audience
- The Product Life Cycle
- The Product
Characteristics
- The Stages of the Buying
Process
- The Channel Strategies10

IMC Developing the

Promotional Mix
For the Target
Audience:
Determine the Balance of the Elements
to be used
Coordinate the Promotional Effort
Assess Target Audience
Characteristics

Consumers

Businesses
11

IMC Developing the

Promotional Mix

To Inform
ObjectiveRemind
Publicity in
Magazines

To Persuade
To Phase Out
Direct Mail
Personal
Selling
Reminders
to
Salesforce
Intermediarie Discounts,
calls
s
Coupons &
Activities
on
Events
Intermediarie Advertising
s
to
Limited
12

To
Little Money
Spent on
Promotion

IMC Developing the

Promotional Mix

Product Characteristics :
Complexity
- The more complex
the more personal
selling required
Risk
- Financial, Social, Physical
Risk
the more personal
selling required
Ancillary Services
- The amount of service
after the sale the more
personal selling required

13

IMC Developing the

Promotional Mix

Stages in the Buying

Process:

Prepurchase Stage
- Advertising more helpful than
personal selling

Purchase
Stage
- Personal
Selling highest
here
Postpurchase Stage
- Advertising AND Personal Selling
needed here
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IMC Developing the

Promotional Mix

15

Channel Strategies

16

Developing an IMC
Program
The Four
Ws:
Who is the Target Audience?

What are the Objectives, Budget, & Tool

Where Should the Promotion Be Run?
When Should the Promotion Be Run?
17

Developing an IMC
Program

18

Developing an IMC Program Budgets

All-you-can-afford: A firm first allocates funds for every
element of marketing except promotion; whatever funds
are left are placed in the promotion budget.
Competitive Parity: A companys promotion budget is
based upon matching the competitors absolute level of
spending or the proportion per point of market share.
Percentage-of-sales: A company allocates its promotion
dollars as a percentage of past or anticipated sales.
Objective-and-task: A company outlines its promotional
goals, determines the activities needed to satisfy those
goals, and then establishes the appropriate budget.