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IMC: Direct Marketing, Advertising and Public Relations


Direct mail can be used for all types of communication (inform, ... Some reasons for the Internet's popularity are immediacy of response, high level ... – PowerPoint PPT presentation

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Title: IMC: Direct Marketing, Advertising and Public Relations

IMC Direct Marketing, Advertising and Public
  • 04/04/05 04/06/05

Types of Direct Marketing
  • Direct mail can be used for all types of
    communication (inform, differentiate, persuade,
  • Catalogs are the most popular form of direct
    marketing. They are used to sell to both
    individual and business consumers.
  • Telemarketing (usually used to inform or sell
  • Vending machines are used for low priced,
    convenience goods like sodas, stamps
  • Direct-action advertising is used to obtain an
    immediate response from consumers (Call 1-800)

Objectives of Direct Marketing
  • Build customer relationships
  • develop and maintain continuous buyer-seller
  • Elicit a direct response or transaction
  • direct order - response in the form of an order
  • lead generation - request for further information
  • traffic generation - visit to a store or business
    for the purchase of specific good or service

Direct Marketing Benefits
  • Customers
  • Convenience
  • Control
  • Fun
  • Marketers
  • Personalization
  • Relationship building
  • Less competitive scrutiny
  • Measurable

Direct Marketing Requirements
  • Develop and maintain database(s)
  • up-to-date, accurate, relevant information
  • Technology-based interactive marketing system
  • combine computers, software, databases, and
    telecommunications technology
  • Procedure for measuring results

Direct Marketing Productivity
  • Multiple-vehicle, multi-stage campaign
  • News campaign ? Paid ad with response mechanism ?
    direct mail ? outbound telemarketing ? face-face
    sales call ? ongoing communication
  • Response compression
  • multiple media utilized within a tightly defined
    time frame can substantially increase response
  • For example, a Citibank campaign to market home
    equity loans. Instead of direct mail 800
    number, they used direct mail coupon 800
    number telemarketing print ads. This resulted
    in a 15 increase in the number of new accounts

Direct Marketing Issues
  • Customers may not be very comfortable with
    interactive technology
  • Privacy/ethical issues
  • Deceptions and fraud lower credibility
  • Success depends on ability to target effectively

  • Examine the role of direct marketing in your IMC
  • It is useful for selectively targeting consumers
    and could be very cost effective if the response
    rate is high

IMC Advertising
  • Advertising is any paid form of non-personal
    presentation by an identified sponsor
  • Types of advertising
  • Product (inform, persuade, remind)
  • Institutional (advocacy, pioneering, competitive,

Advertising strategy
  • In developing advertising, marketing managers
    usually have to decide the 5 Ms
  • Mission What is the advertising objective?
  • Message What should the message say?
  • Media Where and how should we communicate?
  • Money How much should we spend?
  • Measurement How can we evaluate the results?

Mission Advertising Objective
  • Advertising can have 3 different objectives
  • Inform Mainly creating awareness.
  • Persuade Creating or changing beliefs about
    brand attributes, changing importance of
  • Remind Mainly reinforce existing attitudes,
    maintain top-of-mind awareness (especially for
    low risk products).

Persuasion Models
  • Attitudes include beliefs (cognitive component),
    feelings (affective component) and behavior
  • Attitudes can be changed by changing any or all
    of these components
  • There can thus be three ways to change attitudes
  • Learn-feel-do (Change the cognitive component
  • Feel-learn-do (Change the affective component
  • Do-feel-learn (Change the behavior first)

Persuasion Different models
  • The learn-feel-do model
  • High involvement decision making
  • Consumers form attitudes based on ad information
  • Relates to cognitive processes
  • Examples

Persuasion Different models
  • The feel-do-learn model
  • Ads evoke feelings in consumers
  • Feelings can be product-oriented or ad-oriented
  • These feelings trigger purchase response
  • Occurs at all involvement levels
  • Relates to affective processes
  • Examples

Persuasion Different models
  • The do-feel-learn model
  • Applicable to low involvement situations
  • Low perceived risk prompts purchase response with
    little thinking
  • Relates to short-cuts people take to avoid
    intense cognitive processing
  • Examples

  • The advertising message will depend on the
    persuasion model selected as well as the specific
    communication objective
  • Usually, all advertising messages will focus on a
    single or few key points. Too many messages in
    the same ad could diffuse its impact
  • Creativity in message execution is very important

Message Types of advertisements
  • Rational
  • Emotional
  • Fear
  • Sex
  • Humor
  • Testimonials
  • Celebrity
  • Others
  • Comparative

  • There are three elements to any media objective
  • Reach refers to the total number of people you
    wish to expose to your message
  • Frequency refers to the number of times each of
    these people is exposed to your message
  • Impact is a qualitative factor that refers to the
    value of a single exposure
  • Example
  • 60 reach _at_ 3 refers to exposing at least 60 of
    your target audience at least 3 times to your

  • Higher reach/frequency objectives translate to
    higher costs (CPM)
  • Impact is dependent on your message quality as
    well as the media channel selected. Thus, the
    same message would have a different impact via TV
    and on radio.

Media Selection
  • Select your media after considering
  • Your target market media habits
  • Your product
  • Timing
  • Cost

Media vehicles
  • Television
  • Radio
  • Print
  • Internet
  • Outdoor
  • Direct mail

Media scheduling
  • Continuous or steady
  • Flighting or intermittent
  • Pulse or burst

  • I know that 50 of my advertising budget is
    wastedthe problem is that I dont know which
    50! - David Ogilvy
  • Carryover effect of advertising
  • Advertising in one time period can continue to
    affect sales over the next few time periods. The
    carryover period depends on the total impact of
    the advertising message
  • Carryover transforms advertising from an expense
    to an investment

  • There are 5 factors that you can consider while
    setting the advertising budget
  • PLC New products require larger budgets than
    established products.
  • Market share Higher market share brands usually
    require less advertising.
  • Competition and clutter Greater competition
    requires more advertising

  • Advertising frequency The complexity of the
    advertising message influences the number of
    repetitions required. The higher the number of
    repetitions required, the more it will cost
  • Product substitutability Undifferentiated brands
    require greater advertising spends to remain in
    the top-of-mind slot amongst consumers

Advertising Effectiveness
  • Depends on the advertising objective
  • Typical measures
  • recall
  • Recognition
  • brand name awareness
  • attitudes
  • buying intentions
  • Advertising sales relationship?
  • Share of voice

Advertising Effectiveness
  • Share of voice share of market ratio
  • Established brands 11 new brands 1.5-21
  • Sometime, new entrants in a marketplace may not
    have enough resources to gain a high share of
  • In such cases, creative advertising and creative
    media can make the message stand out

Some recent research
  • Ads are more effective when their message is in
    line with their surroundings.
  • People may pay greater attention to negative
    messages than positive messages.

Publicity and Public Relations
  • Publicity is non-paid commercially significant
    news or editorial comment about ideas/products/
  • Public Relations are activities aimed at
    promoting or protecting a companys image or its
  • It includes press relations, product publicity
    and lobbying
  • PR is particularly important when dealing with
    negative events

The role of the internet
  • Internet advertising has become big business
  • Promotion Trends 2000
  • Spending on web-based consumer promotions
    increased 95 to 926 million
  • The bulk of this money is diverted from
    advertising (40) and offline consumer promotions
    (21) while only 10 is additional money added to
    the IMC budget
  • Some reasons for the Internets popularity are
    immediacy of response, high level of
    customization and high accessibility to some

The role of the internet
  • The internet is also important as a source of
  • WOM/ Buzz is very common and widespread and very
    difficult to control as the source of news is
    difficult to trace
  • Example
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