Chapter 11 Other integrated marketing communication tools

Is mass marketing due for a cataclysmic shakeout? Absolutely. A new form of marketing is changing the landscape, and it will affect Interruption Marketing as significantly as the automobile affected the makers of buggy whips. S. Godin, Permission Marketing: Turning Strangers into Friends, and Friends into Customers, Simon and Schuster, New York, 1999, p. 39.

Objectives By the end of this chapter, you should: have developed an understanding of the major integrated marketing tools other than advertising be able to develop effective strategies for sales promotion, publicity, direct marketing and personal selling, as part of the marketing strategy development process.

The strategic marketing planning process Situation analysis Situation analysis Problems & opportunities Problems & opportunities Marketing objectives Marketing objectives Marketing strategies Marketing strategies Budget Implementation Evaluation & control Evaluation & control Marketing strategies – Other IMC tools sales promotion publicity and public relations direct marketing personal selling

A holistic process Marketing objectives Corporate objectives Financial objectives Marketing objectives Performance objectives Marketing strategies Higher-level strategies Business position Product-market strategies Marketing mix strategies Target markets Consumer positioning Product strategies Pricing strategies Distribution strategies IMC strategies + additional 3Ps for service providers People, process management and physical asset strategies

Sales promotion (SP) (1) The role of sales promotion End-user promotions Trade promotions Internal promotions Communication response models (Chapter 9) provide a basis for determining the role that SP can effectively play as part of the overall IMC mix. Draw on the checklist of potential objectives and strategies provided in this chapter (Chapter 11) for end-user, trade and internal promotions.

Sales promotion (SP) (2) The role of sales promotion End-user promotions Trade promotions Internal promotions End-user SP objectives may: be aimed at current users be aimed at a competitor’s users be aimed at regular switchers be aimed at non-category users consist of general objectives. End-user strategies include: methods for reducing prices the provision of a reward the provision of information.

Sales promotion (SP) (3) The role of sales promotion End-user promotions Trade promotions Internal promotions Trade promotion objectives range from building customer loyalty to increasing sales volume, or from encouraging resellers to stock new items to providing resellers’ staff with product knowledge. Trade promotion methods include buying allowances, buy-back allowances, cooperative advertising, count and recount, dealer loaders, dealer listing, free goods, merchandise allowances, push money and sales contests.

Sales promotion (SP) (4) The role of sales promotion End-user promotions Trade promotions Internal promotions Internal promotional objectives involve incentives to improve customer service, to inform staff, to motivate staff, and to provide a range of incentives for the sales force. Techniques include incentive programs, contests and conferences.

Publicity and public relations Publicity, or marketing public relations (MPR), is directed at end users or prospective buyers of the organisation’s products or services. Public relations (PR) is directed at corporate audiences such as: –financial organisations –internal customers –government organisations –commercial organisations –overseas organisations –the general public.

Publicity tools The main tools include: media publicity publicity via entertainment events and sponsorships personal appearance educational efforts controlled media.

Direct marketing (1) Direct marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable response. Fact Book on Direct Marketing, Direct Marketing Association, New York, 1987, p. viii.

Direct marketing (2) Media for direct marketing includes: direct mail (postal and non-postal) catalogues telemarketing broadcast media print media Internet (WWW and ).

Personal selling (1) The changing personal selling environment involves: big business a transition from one-to-one to many-to-many an emphasis on customer service and relationship marketing the reduction of sales-force numbers the use of technology an emphasis on results boundary spanning the market orientation of the sales force service marketing.

Personal selling (2)