Download Lecture 20

Managing Integrated Marketing
Communications (IMC)
Relationship Building: DM,
Personal Selling and Sales
Promotion
Lecture 20
Introduction
• Once a market offering is developed to meet target
market needs, intended customers must be informed
of the offering.
Integrated marketing communications (IMC) comprises:
– advertising
– sales promotions
– personal selling
– direct selling, and
– public relations
Sales Promotion
• Sales promotions are marketing activities that
stimulate consumer purchases and improve retailer
or middlemen effectiveness and cooperation.
• Examples:
– Discounts
– In store demo’s
– Samples
– Coupons
– Contests, Sweepstakes etc.
Public Relations
• Creating good relationships with the
popular press and other media to
help companies communicate
messages to their publics—
customers, the general public, and
governmental regulators—is the role
of public relations (PR).
• Management of unfavourable
rumours, stories and events.
Direct Marketing
Trends within DM:
- Database Marketing: DB marketers build and
maintain a pool of data on current and prospective
customers and communicate with them using a
vairety of media. It is popular due to its cost efficiency.
- Three components of DM:
- Interactive Marketing
- One or More Advertising Media (Dell: using mass and
dm)
- Measurable Response
Relevance to IMC
• Best way to build a DATABASE which can
be used for future purposes as well.
• E.g. Microsoft CRM
• People like to view themselves as unique
and not part of any particular segment.
Through DM, companies can send
discrete meesages to individual customers
and prospects.
Types of DM
1.
2.
3.
Personal Direct Selling: Peterson and Thomas define
DS as… “face to face selling from a fixed retail
location”.
Telemarketing: includes selling and prospecting by
telephone, answering phone inquiries and providing
sales-related services to callers.
Direct Response Advertising: advertising that asks the
reader, viewer or listener to provide straight feedback
to the sender. Any medium can be used but most
common are direct mail, catalogues, magazines and
TV. (Refer to pg 440 in textbook)
Personal Selling
• Best marketing tool for Relationship
Building.
• Employs use of “Human Interaction”.
• .. “interpersonal communication process
by which a seller ascertains and then
satisfies the needs of a buyer to the
mutual long-term benefit of both parties.”
Types of Personal Selling
• CLASS ACTIVITY: Divide into groups of 56 and choose ONE Personal Selling
activity EACH.
Advantages of Personal Selling
• Its personal nature which makes it more
persuasive.
• Facilitates instant feedback.
• Time effective: the sale does not have to be
made that very day. The relationship can be
established first and then a sale can follow
through.
• One of the major tasks of personal selling is to
gain distribution for new products e.g., Industrial
Products. STORAGE CRAFT
Drawbacks of Personal Selling
• Labour Intensive
• High Costs
• First impression may be the last
impression
Role of Personal Selling in IMC
1.
2.
3.
4.
Gathering Information
Disseminating Information
Fulfilling Orders
Building Relationships: may be more
service oriented.
Role of Sales Promotion in IMC
• SP is a direct inducement that offers extra
incentives anywhere along the marketing
route to enhance or accelerate the
product’s movement from producer to
consumer.
• May encompass the “RELEVANCE” or
“RESONANCE” factors.
SNAPPLE: Sales Promotion
Southwest Airlines
• Southwest Airlines served drinks to
passengers in plastic glasses with plastic
cockroaches in them.
• Is this RESONANCE or RELEVANCE?
Nokia Sales Promotion
• Nokia launched one of its largest pan-European sales
promotion campaigns using a sponsorship collaboration
with Kylie Minoque that offered consumers exclusive
access to one of the world’s best known pop stars.
• The campaign sees the Nokia 5310 and 5610
XpressMusic handsets offered as exclusive Nokia Kylie
handsets, featuring pre-loaded, exclusive video and
music content. Consumers also have the opportunity to
download the full album and additional content from a
promotional website, in addition to giving consumers the
opportunity to win “meet and greet” tickets to one of the
dates on the Kylie X Tour 2008.
Positive and Negative Effects of SP
• POSITIVE: added value, maximizes sales
volume, builds short term market volume,
may attract customers from competing
brands.
• NEGATIVE: excessive promotion may
reduce profitability, overemphasis on price
destroys brand equity, may lead to a price
war.
Sales Promotion Strategies
• PUSH
• PULL
Class Activity
• Choose ANY THREE examples of Sales
Promotions which have caught your
attention.
• Justify your selection by citing your
reasons for classing it as a Sales
Promotion.