IBP: Integrating Direct

Lesson 8: Marketing, Personal

Selling, Public Relations,
Influencer Marketing, and
Corporate Advertising
 Learning objectives

• Describe the prominent media in direct Marketing

• Explain the role of personal selling in complementing
other advertising activities
• Explain the basic strategies of public relation, Influencer
marketing and Corporate advertising

2
 Key terms

• direct marketing • public relations

• cost per inquiry (CPI) • proactive public relations
• cost per order (CPO) strategy
• mailing list • reactive public relations
• internal lists strategy
• • public relations audit
external lists
• marketing database • public relations plan
• RFM analysis • influencer marketing
• buzz marketing
• viral marketing
• corporate advertising
 CONTENTS

8.1. Integrating Direct Marketing and Personal Selling

8.2. Public Relations, Influencer Marketing, and
Corporate Advertising
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.1 The Evolution of Direct Marketing

An interactive system of marketing which uses one or more
advertising media to effect a measurable response and/or
transaction at any location.
 Common purposes of direct marketing:
– Solicit and close a sale
– Identify prospects for future contacts
– Provide in-depth information
– Seek information from consumers
– Foster brand loyalty
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.1 The Evolution of Direct Marketing

o What’s Driving Direct Marketing?
 CONVENIENCE! for today’s dual income and single parent
households.
 More liberal attitudes toward using credit.
 Greater access to toll-free calling.
 Computer technology/new media facilitate online transactions.
 More precise segmentation.
 Opportunity for relationship building.
 Cost per inquiry (CPI) and cost per order (CPO) advantages of
direct marketing.
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.2 Database Marketing

Databases are the centerpieces in direct-marketing
campaigns, take many forms, and can contain many
different layers of information about customers.
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.2 Database Marketing

o Mailing lists:
– Internal lists
– External lists
o List Enhancement
 Augmenting lists with externally provided lists
 Incorporating information from external databases
– Demographic data
– Geodemographic data
– Psychographic data
– Behavioral data
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.3 Media Applications in Direct Marketing

 Direct response advertising
 Direct Mail
 Telemarketing
 E-mail
 Other media
– Magazines
– Newspapers
– Infomercials
 Direct Mail

 Advantages
– Selective, flexible, little waste, lends itself
to testing, uses many formats
 Disadvantages
– Direct mail is expensive
► May cost 15 to 20 times more to reach a
person with a direct mail piece than with
a TV commercial
– Mail lists can be plagued with bad
addresses
– Mail delivery dates can be unpredictable

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 Ad in Context Example

Direct mail
offers some
creative
opportunities.

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 Telemarketing

 Telemarketing can be a potent tool. As with direct mail:

– Contacts can be selectively targeted.
– The impact of programs is easy to track.
– Experimentation with different scripts and delivery formats is simple and
practical.
– Telemarketing involves live constructive dialogue.

 Telemarketing shares many of direct mail’s limitations:

– Very expensive on a cost-per-contact basis.
– Names and addresses go bad as people move, so too do phone numbers - 15
percent of the numbers called are inaccurate.
– Telemarketing does not share direct mail’s flexibility in delivery options. When
you reach people in their home or workplace, you have a limited span of time to
convey information and request some response.
– Telemarketing is becoming a highly maligned practice in consumers.

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 E-Mail

 Bulk e-mail is known as “spam”

 Fraudulent email know as “phishing”
 However e-mail is an increasingly popular
tool for marketers
 Advantages
– Cheap
– Good response rates
 Netiquette suggests getting consumer
permission to send product information
 Avoid bulk e-mailings
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 Direct Response Advertising
in Other Media

 Magazines use bind-in insert cards

 Infomercial
– Long television advertisement
– Range in length from 3 to 60 minutes
– Keys to success
► Testimonials, Frequent call to actions, ensure same-day
response
► New research shows that direct response ads are the least
likely to be zapped by DVR users

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 Ad in Context Example

Magazine ads are ideal

for Direct Response
Advertising.

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PPT 19-22
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.4 Closing the Sale with Direct Marketing and/or

Personal Selling
o The Critical Role of Personal Selling
 The face-to-face communication and persuasion
process.
 Most effective with products or services that are:
– Higher priced
– Complicated to use
– Tailored/customized to users’ needs
– Offer a trade-in option
– Judged at the point of purchase
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.4 Closing the Sale with Direct Marketing and/or

Personal Selling
o Types of Personal Selling
 Order taking: accepting orders for merchandise or scheduling services;
deal with existing customers who are lucrative to a business due the low
cost of generating additional revenues from them. Order taking is the least
sophisticated of selling efforts.
 Creative selling: selling where customers rely heavily on the salesperson
for technical information, advice, and service. It is the most sophisticated
and complex selling effort.
 System selling: entails selling a set of interrelated components that fulfill
all or a majority of a customer’s needs in a particular area. System selling is
often executed by a “team” of sales people.
 The missionary salesperson: calls on accounts with the purpose of
monitoring the satisfaction of buyers and updating buyers’ needs.They
may provide product information after a purchase.
 8.1 Integrating Direct Marketing and
Personal Selling

8.1.4 Closing the Sale with Direct Marketing and/or

Personal Selling
o Customer Relationship Management
 Salespeople play a critical role in cultivating long-term
relationships with customers—which often is referred to
as a customer relationship management (CRM)
program.

 CRM views the relationship with buyers as a partnership

and a problem solving situation.
8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.1 Public Relations

The marketing and management communications
function that deals with a firm’s public issues.
 Objectives:
– Promote goodwill
– Promote a product or service
– Prepare internal communications
– Counteract negative publicity
– Lobby
– Give advice and counsel
 Ad in Context Example

Microsoft turned to “warm

and fuzzy” corporate
advertising to combat the
negative publicity of a
Department of Justice case
against the firm.

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8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.1 Public Relations

oTools of Public Relations
 Press releases
 Feature stories
 Company newsletters
 Interviews and press conferences
 Sponsored events
 Publicity
8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.1 Public Relations

oPublic Relations Strategies
 Proactive PR strategy
– Guided by marketing objectives
– Publicize a company and its brands
– Take an offensive rather than defensive posture
 Reactive PR strategy
– Dictated by external influences
– Focuses on problems, not opportunities
– Requires defensive measures
 Proactive Strategies

 Public relations audit

 Public relations plan
– Current situation analysis
– Program objectives
– Program rationale
– Communications vehicles
– Message content

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PPT 20-30
 Reactive Strategies

 Public relations audit

 Identification of vulnerabilities

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PPT 20-31
8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.2 Influencer Marketing

o Professional Influencer Programs
 Targeting professionals (doctors, therapists, lawyers,
accountants, etc.) with positive PR messages with goal
of having these “professionals” influence their clients
attitude toward a brand.
 “Seeding the conversation” between the professionals
and their clients.
 Tactics include trade show displays, direct mail
communications, and personal selling calls—all IBP
techniques.
 The process provides professionals with “intellectual
currency.”
8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.2 Influencer Marketing

o Peer to Peer Influencer Programs
 Targeting social networks with positive messages about a brand to pass
along through their social networks.
 The programs provide “social currency” within peer networks.
 Buzz and Viral Marketing.
– Buzz marketing is creating an event or experience that yields conversations that
include the brand.
– Viral marketing is the process of consumers marketing to consumers via:
► the Web (e.g., via blogs or forwarding YouTube links) or through personal contact.
simulated by a firm marketing a brand.
► The idea behind both buzz and viral marketing strategies is to target a handful of
carefully chosen trendsetters or connectors as your influencers, and let them spread
the word.
– Cultivating Connectors
► The sophisticated process of cultivating peer to peer influencers to positively tout a
firm’s brand.
► Procter & Gamble has enrolled 600,000 “connectors” in its Vocalpoint program—mostly
women with wide social networks.
8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.3 Corporate Advertising

 Designed to establish a favorable attitude toward a
company as a whole.
 Objectives:
– Build the image of the firm
– Boost employee morale or attract new employees
– Communicate an organization’s views
– Position the firm’s products
– Play a role in integrated brand promotion
 Ad in Context Example

Corporate advertising
features the firm rather
than one of the firm’s
brands.

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8.2 Public Relations, Influencer Marketing,
and Corporate Advertising

8.2.3 Corporate Advertising

 Types of Corporate Advertising
 Corporate image advertising: Create a favorable
predisposition toward the firm—not designed to affect sales.
 Advocacy advertising: Establish the firm’s position on
important social, political or environmental issues.
 Cause-related advertising: Features a firm’s affiliation with
an important social cause.
 Green Marketing: Corporate efforts that embrace a cause or a
program in support of the environment.
 Ad in Context Example

Drinking and driving is an

important social issue
featured in corporate cause-
related advertising.

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 Quiz 1

• Indirect marketing is an interactive, indirect system of

marketing, which uses one or more advertising media to
effect a measurable response and/or transaction at any
location.
a) True
b) False

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 Quiz 2

• Which of the following in not a way to develop an internal

mailing list?
a. review records of previous customers
b. research donors addresses from checks
c. buy a list from a broker
d. record information from inquires

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 Quiz 3

• Public relations focuses on communication that can

foster goodwill between a firm and its many constituent
groups.
a) True
b) False

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 Quiz 4

• Which of the following is not one of the objectives for

Public Relations?
a. Streamlining profits
b. Preparing internal communications
c. Counteracting negative publicity
d. Promoting goodwill

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Which parts your group has finished?
Continue with unfinished parts.

Part I: Company and product background

• History of company and product characteristic
Part II: Advertising and IBP plan
• Analyzing consumer behavior
• Segmenting the market and choose the target market
Part III: Conducting Advertising and promotion research
• Setting an Advertising and IBP plan
Part IV: Message strategy
• Designing a message for advertising and IBP plan
Part V: Media
• Choosing the right media for Advertising and IBP plan
Part VI: Intergrated Brand Promotion
• Designing the sales promotion, point-of-purchase advertising, event
sponsorship, product placement, direct Marketing, personal selling, PR,
Influencer Marketing, Corporate advertising for a specific brand.