Chapter 7 Designing and Managing IMC

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Designing and

Managing
Integrated
Marketing
Communications

Presented by:
Richard T. Gacisan
2

In This Chapter, 1. What is the role of marketing communications?


We Will Address
2. How do marketing communications work?
the Following
Questions 3. What are the major steps in developing effective communications?

4. What is an integrated marketing communications program?


3

Modern marketing calls for more than developing a good product, pricing it attractively and
making it accessible. Companies must also communicate with their present and potential
stakeholders and the general public.

For most marketers, therefore, the question is not whether to


communicate but rather what to say how and when to say it,
to whom ,and how often Consumers can turn to hundreds
of cable and satellite TV channels, thousands of magazines
and newspapers, and millions of Internet pages. They are
taking a more active role in deciding what
communications they want to receive as well as how they
want to communicate to others about the products and
services they use.

To effectively reach and influence target markets,holistic marketers are creatively employing
multiple forms of communications

4

MARKETING COMMUNICATIONS

are the means by which firms attempt to inform, persuade, and remind
consumers—directly or indirectly—about the products and brands they sell.
5

Two (2) Factors


are changing the
face of today’s ○ Marketers have shifted away from mass
marketing marketing less broadcasting
communications

○ Improvements in information technology has


led to segmented marketing more
narrowcasting

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The need for Integrated marketing


communications
With IMC, the company carefully integrates and coordinates its many
communication channels to deliver a clear, consistent, and compelling message,
about the organization and its product or service.
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Marketing communication activities


contribute to brand equity and drive
sales in many ways: by creating
brand awareness, forging brand
image in consumers’ memories,
eliciting positive brand judgments or
feelings , and strengthening consumer
loyalty
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These marketing communications


The marketing activities must be integrated to
communications deliver a consistent message
mix consists of eight and achieve the strategic
positioning. The starting point in
(8) major modes of planning marketing
communication communications is a
communication audit that
profiles all interactions customers
in the target market may have
with the company and all its
products and services.

For example, someone interested in purchasing a new


laptop computer might talk to others, see television ads, read
articles, look for information
on the Internet, and look at laptops in store
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○ Kleenex allocated
Product launch it’s communication
dollars
○ 75% TV
○ 23% Print
○ 2% Online
Communications Process Models
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MACROMODEL OF THE COMMUNICATIONS
PROCESS
The Figure how a macro model with nine key factors in
effective communication. Two represent the major parties
—sender and receiver. Two represent the major tools—
message and media.
Four represent major communication functions—
encoding, decoding, response, and feed back. The last
element in the System is noise, random and competing
messages that may interfere with the intended
communication.
11 Senders must know what audiences they want to reach
and what responses they want to get. They must encode
their messages so the target audience can decode them.
They must transmit the message through media that reach
the target audience and develop feedback channels to
monitor the responses. The more the sender’s field of
experience overlaps that of the receiver, the more
effective the message is likely to be.
Communications Process Models
MICROMODEL OF CONSUMER RESPONSES 11
Micromodels of marketing communications
concentrate on consumers
specific responses to communications.

All these models assume the buyer passes through


cognitive, affective, and behavioral stages, in that
order. This “learn-feel-do” sequence is appropriate
when the audience has high involvement with a product
category perceived to have high differentiation, such as
an automobile or house. An alternative sequence, “do-
feel-learn,” is relevant when the audience has high
involvement but perceives little or no differentiation
within the product category, such as an airline ticket or
personal computer. A third sequence, “learn-do-feel,” is
relevant when the audience has low involvement and
perceives little differentiation, such as with salt or
batteries. By choosing the right sequence, the
marketer can do a better job of planning
communications.
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Maps
13

1
Identify the Target
Audience
The process must start with a clear target audience in mind:
potential buyers of the company’s products, current users,
deciders, or influencers, and individuals, groups, particular
publics, or the general public. The target audience is a critical
influence on the communicator’s decisions about what to say,
how, when, where ,and to whom.
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Category Need 
—Establishing a product or service category as necessary to
2 remove or satisfy a perceived discrepancy between a current
motivational state and a desired motivational state. A new-
Determine the to-the-world product such as electric cars will always begin
Communications with a communications objective of establishing category
Objectives need

Brand Awareness
—Fostering the consumer’s ability to recognize or recall the brand within the
category, in sufficient detail to make a purchase. Recognition is easier to achieve
than recall—consumers asked to think of a brand of frozen entrées are more likely
to recognize Stouffer’s distinctive orange packages than to recall the brand. Brand
recall is important outside the store; brand recognition is important inside the
store. Brand awareness provides a foundation for brand equity
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Brand Attitude 
—Helping consumers evaluate the brand’s perceived ability to meet a
currently relevant need. Relevant brand needs may be negatively oriented
(problem removal, problem avoidance, incomplete satisfaction, normal
depletion) or positively oriented (sensory gratification, intellectual
Determine the stimulation, or social approval).Household cleaning products often use
Communications problem solution; food products, on the other hand, often use sensory-
Objectives oriented ads emphasizing appetite appeal

Brand Purchase Intention
—Moving consumers to decide to purchase the brand or take purchase-
related action. Promotional offers like coupons or two-for-one deals
encourage consumers to make a mental commitment to buy. But many
consumers do not have an expressed category need and may not be in the
market when exposed to an ad, so they are unlikely to form buy intentions.
In any given week, only about 20 percent of adults may be planning to
buy detergent, only 2 percent to buy a carpet cleaner, and only 0.25
percent to buy a car.
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3 ○ Message strategy
Design the ○ Creative Strategy
Communications ○ Message Source
○ Personal Communication
Channels
○ Nonpersonal Communication
channels
○ Integration
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Creative Strategy

Creative strategies
are the way marketers translate their messages into a specific
communication. We can broadly classify them as either
informational or transformational appeals.
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Message Source

○ Messages delivered by attractive or popular sources can


achieve higher attention and recall, which is why advertisers
often use celebrities as spokespeople
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NONPERSONAL (MASS) COMMUNICATIONS CHANNELS
Nonpersonal channels are communications directed to more than one person and
include advertising, sales promotions ,events and experiences, and public
4 relations. Much recent growth has taken place through events and experiences.
Companies are searching for better ways to quantify the benefits of sponsorship and
Select the Communications demanding greater accountability from event owners and organizers. They are also
Channels creating events designed to surprise the public and create a buzz. Many efforts
amount to guerrilla marketing tactic. Events can create attention, although whether
they have a lasting effect on brand awareness, knowledge, or preference will vary
considerably depending on the quality of the product, the event itself, and
its execution.

PERSONAL COMMUNICATIONS CHANNELS


Let two or more persons communicate face-to-face or person-to-audience through
a phone, surface mail, or e-mail. They derive their effectiveness from
individualized presentation and feedback and include direct and interactive
marketing, word-of-mouth marketing, and personal selling
Although personal communication is often more effective than mass 20
communication, mass media might be the major means of stimulating
personal communication. Mass communications affect personal
attitudes and behavior through a two-step process. Ideas often flow
from radio, television, and print to opinion leaders, and from these to
INTEGRATION OF less media-involved population groups. This two-step flow has several
COMMUNICATIONS implications .First, the influence of mass media on public opinion is
CHANNELS not as direct, powerful, and automatic as marketers have supposed. It
is mediated by opinion leaders, people whose opinions others seek or
who carry their opinions to others. Second, the two-step flow
challenges the notion that consumption styles are primarily influenced
by a “trickle-down” or “trickle-up” effect from mass media. People
interact primarily within their own social groups and acquire ideas
from opinion leaders in their groups .Third, two-step communication
suggests that mass communicators should direct messages specifically
to opinion leaders and let them carry the message to others
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Industries and companies vary


considerably in how much they spend
5 on marketing communi-cations.
SETTING Expenditures might be 40 percent to 45
PROMOTIONAL percent of sales in the cosmetics
BUDGET industry, but only 5 percent to 10
percent in the industrial-equipment
industry. Within a given industry, there
are low- and high-spending companies
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6
DECIDE PROMOTION
MIX

Companies must allocate the marketing communications budget


over the eight major modes of communication—advertising, sales
promotion, public relations and publicity, events and experiences,
direct marketing, interactive marketing, word-of-mouth marketing,
and the sales force.
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7
Senior managers want to know the outcomes and revenues resulting from their
communications investments. Too often ,however, their communications directors supply
only inputs and expenses: press clip-ping counts, numbers of ads placed, media costs. In
Measuring Communication fairness, communications directors try to translate inputs into intermediate outputs
Results such as reach and frequency ( the percentage of target market exposed to a communication
and the number of exposures),recall and recognition scores, persuasion changes, and cost-
per-thousand calculations. Ultimately, behavior-change measures capture the real payoff.
After implementing the communications plan, the communications director must measure its
impact .Members of the target audience are asked whether they recognize or recall the
message, how many times they saw it, what points they recall, how they felt about the
message, and what are their previous and current attitudes toward the product and the
company. The communicator should also collect behavioral measures of audience
response, such as how many people bought the product ,liked it, and talked to others
about it
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○ defines as "a planning process designed to assure that all brand contacts received by a
8 customer or prospect for a product, service, or organization are relevant to that person
and consistent over time." This planning process evaluates the strategic roles of a
Implementing IMC variety of communications disciplines -- and skillfully combines these disciplines to
provide clarity, consistency, and maximum impact through the seamless integration of
messages.

Integrated marketing communications can produce stronger message consistency and help
build brand equity and create greater sales impact.
It forces management to think about every way the customer comes in contact with the
company, how the company communicates its positioning, the relative importance of each
vehicle, and timing issues .It gives someone the responsibility—where none existed before—
to unify the company’s brand images and messages as they come through thousands of
company activities MC should improve the company’s ability to reach the right customers
with the right messages at the right time and in the right place.
Managing Mass Communication:
Advertising, Sales Promotion,
Events and Experiences,
and Public Relations

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ADVERTISING
it is the activity or profession of producing advertisements for commercial products or services

Even in today’s challenging media environment, good ads can pay off. For example is the P&G
Company has always enjoyed double-digit sales gain in recent years from ads touting the efficacy
of Olay Definity Antiaging skin products and Head & Shoulders intensive treatment Shampoo.
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In developing an advertisement program, marketing managers must
always start by identifying the target market and buyer motives. Then they
can make the:

The Five Major Decisions (known as “the five Ms”)


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Setting the Objectives


The Advertising Objectives must flow from prior decisions on
target market, brand positioning, and the market program.
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Advertising the Objective (or goal) is a specific communication task and achievement level to be
accomplished with a specific audience in a specific period of time.

The advertising objective should emerge from a thorough analysis of the


current marketing situation. If the product class is mature, the company
is the market leader, and brand usage is low, the objective is to stimulate
more usage.

Classifications of 30
Advertising Objectives

(Hierarchy-of-effects)

1. Informative Advertising- aims to create brand 2. Persuasive Advertising- aims to create liking, preference,
awareness and knowledge of new products or new conviction, and purchase of a product or service.
products or new features of existing products. Persuasive advertising is highly competitive when there are
The objective is to develop initial demand for a similar products in the marketplace, and products are
good, service, organization, or cause. It is used when a competing for their share of the market. In this situation, the
new product is put on the market on when an old product winning product will differentiate itself from the
has been re-launched or update. competition and possess benefits that are superior to, or
compete strongly with, the competition. Comparative
approaches are common place, either directly or indirectly.

Classifications of 31
Advertising Objectives

(Hierarchy-of-effects)

1. Reminder Advertising– aims to stimulate repeat 1. Reinforcement Advertising- aims to


purchase of product and services. convince current purchasers that they made
 For example is the Coca-Cola is a well- the right choice.
established brand that uses reminder advertising  For example is the automobile ads often
to maintain its position in the market It brings depict satisfied customer enjoying special
back past packaging as well as advertisements features of their new car.
that go back to the beginning of the brand.
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– Four factors to consider when setting the advertising budget:

Stage in the product life cycle- New products typically merit large advertising budget to build

Deciding on the Advertising awareness and to gain consumer trial.


Budget
Market share and consumer base- high-market-share bands usually require less advertising
expenditure as a percentage of sales to maintain share.

Competition and Clutter– in a market with a large number of competitors and high advertising spending,
a brand must advertise more heavily to be heard.

Advertising frequency- the number of repetitions needed to put the brand message across to consumers has an obvious
impact on the advertising budget.
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Developing the
Advertising Campaign
 Message strategy ‒‒ or positioning of an ad.

 What ‒‒ the ad attempts to convey about the brand.


 Creative strategy ‒‒ how to ad expresses the brand claims.

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1. Television Ads- television is generally acknowledged as the most powerful advertising medium and reaches a broad
spectrum of consumer at low cost per exposure.

1. Print Ads- Print media offer a stark contrast to broadcast media.


Because readers consume them at their own pace, magazines and newspapers can provide detailed product
information and effectively communicate user and usage imagery.

1. Radio Ads- is a pervasive medium. Radio is a particularly effective medium in morning.


Perhaps radio’s main advantages is flexibility‒‒stations are very targeted, ads are relatively inexpensive to produce
and place, and short closing allow for quick response. The obvious disadvantages of radio are its lack of visual images and
the relatively passive nature of the consumer processing that results.
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Deciding on Reach,
Frequency, and
Impact
Media Selection- is finding the most cost-effective media to
deliver the desired number and type of exposures to the target
audience.
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 What do we mean by the desired number of exposures? The advertisers seeks a


specified advertising objective and response from the great audiences

 Reach (R). the number of different persons or households exposed to a particular media schedule at least once
during a specified time period.

 Frequency (F). the number of times within the specified time period that an average person or household is
exposed to the message.

 Impact (I). the qualitative value of an exposure through a given medium (thus a food ad will have a higher impact
in Bon Appetit than in Fortune magazine)
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Macroscheduling decision- refers to season and business cycle.

Microscheduling decision- calls for allocating advertising expenditures


Deciding on Media Timing & within a short period to obtain maximum impact.
Allocation

 Continuity. Means exposures appear evenly throughout given


period.
 Concentration. Calls for spending all the advertising dollars in a
single period.
 Flighting. Calls for advertising during a period, followed by a
period with no advertising, followed by a second period of
advertising activity.
 Pulsing. Is a continuous advertising at low-weight levels, reinforced
periodically by waves of heavier activity.
Sales Promotion

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Sales Promotion

a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly


short term, designed to stimulate quicker or greater purchase of particular product or services
by consumers or the trade.

Sales Promotion includes tool for:

 Consumer promotion
 Trade promotion
 Business and Sales force promotion

 
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Purpose of sales Promotion

Sellers use incentive-type promotions to attract new triers, to reward loyal customers, & to increase the
repurchase rates of occasional users. Price promotions usually build short-term volume that is not
maintained, but it enables manufacturers to adjust to short-term variations in supply & demand.
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Advertising vs Promotion

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• Major Decisions in Sales Promotion


– Establishing Objectives
– Selecting Consumer-Promotion Tools
• Manufacturer promotions
• Retailer promotions
• Major Consumer-Promotion Tools:
– Samples; coupons; cash refund offers (rebates); price packs (cents-off
deals); premiums (gifts); frequency programs; prizes (contests,
sweepstakes, games); patronage awards; free trials; product warranties;
tie-in promotions; cross promotions; point-of-purchase (p-o-p) displays
and demostration
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– Selecting Trade-Promotion Tools


• Major Trade-Promotion Tools:
Price-Off (off-invoice or off-list)
– Allowance
– Free Goods
– Selecting Business and Sales-Force Promotion Tools
• Major Business-and Sales-Force-Promotion Tools:
– Trade Shows and Conventions
– Sales Contests

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Developing the Program


• Incentive Considerations
• Size of incentive
• Conditions for participation
• Duration of promotion
• Distribution vehicle

– Presenting, Implementing, Controlling, and Evaluating the Program


• Lead time
• Sell-in time
Events and Experiences
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• Events Objectives
– To identify with a particular target market or lifestyle
– To increase awareness of company or product name

– To create or reinforce perceptions of key brand image associations


– To enhance corporate image
– To create experiences and evoke feelings

– To express commitment to the community or on social issues


– To entertain key clients or reward key employees
– To permit merchandising or promotional opportunities

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• Major Sponsorship Decisions


– Choosing events
– Designing sponsorhip programs
– Measuring sponsorship activities
• Direct tracking of sponsorship-related promotions (Web data, call center data, online
event statistics, other consumer engagements)
• Qualitative research (on-site/in-market, pre/post, and participant/nonparticipant,
using a proprietary model for brand equity transfer and subsequent impact on
purchase intent)
• Quantitative analysis (analytics to link sponsorship to brand awareness, sales, and
retention and to optimize tactics in sponsorship activation that maximize ROI)
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• Creating Experiences
– "The idea is not to sell something, but to demonstrate how a brand can enrich a
customer's life.“
– Inviting prospects and customers to visit their headquarters and factories.
Public Relations
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Public Relations

Involves a variety of programs designed to promote &/or protect a company’s image or its
individual products. Marketing managers & PR do not always talk the same language, bottom-line
oriented vs. preparing & disseminating communications. Many companies are turning to
marketing public relations (MPR), playing a role in: Assisting I the launch of new products,
assisting in repositioning a mature product, building interest in a product category, influencing
specific target groups, defending products that have encountered public problems, & building e.g.
corporate image in a way that projects favorably on its products. MPR is found to be effective in
building awareness & brand knowledge for both new & established products.
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• Major Decisions in Marketing PR


– Major Tools in Marketing PR:
• Publications
• Events
• Sponsorship
• News
• Speeches
• Public service activities
• Identity media
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• Establishing the Marketing Objectives


– MPR can:
• Build awareness
• Build creditability
• Hold down promotional cost
• Choosing Messages and Vehicles
– Event Creation

• Implementing the Plan and Evaluating Results


Managing Personal
Communications:
Direct and
Interactive Marketing,
Word of Mouth, and
Personal Selling

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What is Direct Marketing?

Direct marketing is the use of consumer-direct channels to


reach and deliver goods and services to customers without
using market middlemen.
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Direct Marketing Channels

Direct mail

Catalogs

Telemarketing

Other direct response


Constructing a Direct-Mail Campaign
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Establish objectives

Select target prospects

Develop offer elements


Test elements

Execute

Measure success
RFM Formula for 57

Selecting Prospects

Recency
Recency

Frequency
Frequency

Monetary
Monetary value
value
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Elements of the Offer Strategy

Product
Offer
Medium
Distribution method
Creative strategy
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Components of the Mailing

Outside envelope
Sales letter
Circular
Reply form
Reply envelope
Public Issues in Direct Marketing

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Irritation

Unfairness
Deception/fraud

Invasion of privacy

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Interactive Marketing

Interactive marketing is a one-to-one marketing practice that centers on individual customer and


prospects’ actions. Interactive marketing involves marketing initiatives that are triggered by
customers’ behaviors and preferences; for this reason, it is a major shift from traditional campaign-
based marketing efforts. A customer-centric strategy, interactive marketing involves reacting to
customer actions and striving to meet their expectations and demands.
In order for marketers to pull off successful interactive marketing efforts, they must have access to
advanced technology that delivers complete, 360-degree views of customers.
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Types of Interactive Marketing 

• Interactive Storytelling – Marketers can seize opportunities to be as dynamic with


content as possible; this may mean adding an animation or infographic to a blog post or
creating native ads rooted in storytelling that incorporated mixed media elements. Break
up long-form posts and advanced landing pages with text divisions, video and audio clips,
and interactive components that allow sharing and discovering more information.

• Personalized Content – Use advanced technology to gain insights into customers’


demographics, geographic data, lifecycle information, and more to deliver personalized,
relevant content and offers. When you know as much as you can about your customers
as individuals, you can create the most meaningful experiences for them. Customers
will relate to the content more fully when it is personalized appropriately, and they will
be more apt to interact with the content by sharing it.
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• Layered Information – Educating customers has become a top priority for
marketers, and interactive marketing is a smart way to 
layer in information for consumers by delivering detailed content in increments.
Marketers have the ability to tell brand stories by providing snippets of
information in easy-to-read quick takes and then delivering more detailed,
informative content in other layers to audience members who want to know as
much about a topic as possible.

• Two-Way Interaction – Two-way interaction initiatives are at the heart of


interactive marketing because they give consumers a vehicle for active
participation. For example, interactive tools such as quizzes, calculators,
branching content, games, and interactive videos provide a more powerful
experience for the audience. 

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How to Set Up Interactive
Marketing

1. Identify the triggers that can lead to an interactive marketing event. The best way to do this is through
surveys and analyzing data. 

2. Determine the marketing event for the trigger. When the consumer does X, what do you want to
happen? Recommend Y? Ask if they want fries? 

3. Set up your system. Online, this requires tech know-how to set up a


program that will take the data input and delivers an output. Face-to-face, you can develop your "sales
system" to include responses to certain questions or purchases your client/customer asks.

4. Assess. Is it working? Is your interactive marketing system it leading to more sales? Are you getting
complaints? Use the data to tweak your system.

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What is Word of Mouth Marketing?

Word of mouth marketing (WOMM), also called word of mouth advertising, is the social media era’s
version of simple word of mouth.
• Traditionally, word of mouth marketing was spread from one person to another based on
recommendation.
• Modern word of mouth marketing describes both targeted efforts and naturally occurring instances
where users share their satisfaction with a brand.
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Word of Mouth Marketing Statistics


• Nielsen report that 92% of consumers believe suggestions from friends and family more
than advertising.

• Beyond friends and family, 88% of people trust online reviews written by other consumers
as much as they trust recommendations from personal contacts.

• And 74% of consumers identify word of mouth as a key influencer in their purchasing


decisions.

• But only 33% of businesses are actively seeking out and collecting reviews.

• Despite that fact that a little, can do a lot. When specific case studies were analyzed,
researchers found a 10% increase in word-of-mouth (off and online) translated into a sales
lifts between 0.2 – 1.5%.

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Word of Mouth Strategies

1. Set up word of mouth triggers.


This means giving your customers something memorable. An experience, thought or
feeling they can’t get anywhere else.

2. Use visual triggers.


You could create a website so stunning and unique that people just have to share it.
But navigation, ease-of-use and conversions should always be your first point of
call.

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Word of Mouth Strategies


3. Do or create something unique.

It could be that you market your business in a way that’s totally different to
anyone else in your space. Or that you take an old product and sell it in a
completely new way.

4. Emotional provocation.

This can be done via taking something you believe in and tying your company brand
closely to it on your social commerce networks, your website and anywhere you can
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Personal Selling

Personal selling uses in-person interaction to sell products and services. This type of


communication is carried out by sales representatives, who are the personal connection
between a buyer and a company or a company’s products or services. Salespeople not
only inform potential customers about a company’s product or services, they also use
their power of persuasion and remind customers of product characteristics, service
agreements, prices, deals, and much more. In addition to enhancing customer
relationships, this type of marketing communications tool can be a powerful source of
customer feedback, as well

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Common Personal Selling Techniques

• Sales presentations: in-person or virtual presentations to inform prospective customers about a


product, service, or organization
• Conversations: relationship-building dialogue with prospective buyers for the purposes of
influencing or making sales
• Demonstrations: demonstrating how a product or service works and the benefits it offers,
highlighting advantageous features and how the offering solves problems the customer encounters
• Addressing objections: identifying and addressing the concerns of prospective customers, to
remove any perceived obstacles to making a purchase
• Field selling: sales calls by a sales representative to connect with target customers in person or via
phone

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• Retail selling: in-store assistance from a sales clerk to help customers find, select, and
purchase products that meet their needs

• Door-to-door selling: offering products for sale by going door-to-door in a neighborhood

• Consultative selling: consultation with a prospective customer, where a sales representative


(or consultant) learns about the problems the customer wants to solve and recommends
solutions to the customer’s particular problem

• Reference selling: using satisfied customers and their positive experiences to convince
target customers to purchase a product or service
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• Product situation: Personal selling is relatively more effective and


economical when a product is of a high unit value, when it is in the
When to Use Personal introductory stage of its life cycle, when it requires personal attention to
Selling match consumer needs, or when it requires product demonstration or after-
sales services.
• Market situation: Personal selling is effective when a firm serves a small
number of large-size buyers or a small/local market. Also, it can be used
effectively when an indirect channel of distribution is used for selling to
agents or middlemen.
• Company situation: Personal selling is best utilized when a firm is not in a
good position to use impersonal communication media, or it cannot afford to
have a large and regular advertising outlay.
• Consumer behavior situation: Personal selling should be adopted by a
company when purchases are valuable but infrequent, or when competition is
at such a level that consumers require persuasion and follow-up.
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How IMC Supports Personal Selling


As with any other marketing communication method, personal
selling must be evaluated on the basis of its contribution to the
overall marketing mix. The costs of personal selling can
be high and carry risks, but the returns may be just as high. In
addition, when personal selling is supported by other elements
of a well-conceived IMC strategy, it can be very effective
indeed.
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CASE

Currently, DTI under the SME Development Division is


focusing on E-commerce.
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❤ THANK YOU ❤

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