The following lecturette will give you my perspective on what I think are
the key course concepts from this final week of the course.  As usual, it
truly is my objective not to restate the author's views, or merely to
summarize the readings.  Rather, I'd like to introduce some new concepts
(sometimes challenging our author's viewpoints) and hopefully, creating a
thinking and applications process/dynamic which will enhance our learning.

As we enter into our last week of dialogue, we'll continue our discussion of
Integrated Marketing Communications (IMC) focusing on Personal Selling,
Sales Promotion, and Direct Marketing.  We will close our discussion with
how to integrate the 5 IMC tools (also known as the Promotional Mix).

Personal Selling is commonly used in most organizations.  In many cases,
Personal Selling is the focal point of a company's marketing efforts (not
advisable).  We see corporations with a large outside sales force, a
nationwide network of independent contractors, or a department full of
outbound telemarketers.  The first important thing to understand about
Personal Selling is that whether it is used on the "front end" of a
marketing campaign, or as a "stand alone" primary marketing tool, (both
described above), it is expensive, dangerous, and an incorrect application
of the Personal Selling function.

When Personal Selling is used on the front end of a marketing strategy as an
unqualified first step (such as cold calling from business to business with
your bag of samples, or "dialing for dollars" with outbound telemarketing),
it is, on an exposure by exposure basis, the most expensive of all tools.
Yes, even more expensive on a per exposure basis than broadcast media
advertising.

Never use Personal Selling unless it is highly targeted to pre-qualified, or
pre-existing customers.  Pre-qualified in the sense that there have been
multiple exposures to the company "linked" together.  For example, we might
create image and awareness through the use of Advertising or P.R. and induce
trial through the use of Sales Promotion (which will be discussed later in
this lecture), and then, implement the personal selling function.

Personal Selling, is in many cases, critical to the final sale of the
marketer's product or service.  Most of the time, we prefer to buy high
ticket items from a real person (not always of course), we want our hair
done or our taxes done by someone whom we know and trust.  Personal Selling
is the focal point of the relationship in these examples.  Personal Selling
certainly becomes more and more necessary when the product or service is
either highly technical or very expensive.

It is important to note, (and this will be discussed later in the lecture)
that many traditional Personal Selling functions are being replaced by
Direct Marketing functions.  For example, many traditional retail purchases
(as we've previously discussed) are now being made via catalogues or the
internet.

Sales Promotion is something we are all very familiar with.  It comes in
many disguises such as 1.9% financing, auto rebates, buy one get one free,
and Pepsi for 99 cents per liter.  In other words, we think of Sales
Promotion as giving something away free or offering a discount price.  While
this is true, Sales Promotion also includes many "non price" promotions and
in many cases is designed to motivate a response not related to sales (it
may be used to gather database marketing information for example). An easy
way to identify a Sales Promotion is to see if ultimately the offer reduces
the marketer's profit margins (as in all the examples listed above).

Sales Promotion, when used effectively, is used on the "front end" of an IMC
campaign.  Why?  Because it is the greatest of all response motivators.  It
is best used when integrated with Advertising or Public Relations.  The
Advertising or Public Relations creates awareness of the Sales Promotion
which is designed to induce trial of the new product or service.

When we see Coke or Pepsi on sales for 99 cents per liter, (IMHO) it is an
incorrect use of Sales Promotion.  It is using Sales Promotion at the "back
end" of the IMC campaign.  Why attempt to induce trial of an already known
product or service?  It makes no sense.  It becomes nothing more than an
entry into the price war game.  Think about those 99 cent Whoppers, we've
already tried them, so the Sales Promotion does nothing but impact our
consumer behavior (and negatively I might add).  This is the biggest danger
of Sales Promotion and its incorrect use.  If it is used on the back end,
and used "stand alone" over an extended period, it not only brings about the
price war, but also creates huge declines in brand loyalty, it most
certainly negatively impacts the customer's perception of the brand.

The final IMC tool is Direct Marketing which really means two distinctly
different things.  Direct Marketing, by its purest definition (and the one
we've already discussed in class),  means to bypass traditional channels of
distribution (to go direct to customers).  It is certainly related in this
sense to the "P" of Place because going direct is a distribution channel
activity.  Traditional channels have become so clogged up with heavy
competition, price wars, battles for retail shelf space, volume rebates,
co-op advertising, and things like "no questions asked" return policies.
Today, if a marketer wants to sell their product in say; Ralphs Stores,
Walmart, Home Depot, Target, etc. they will be forced to come in at rock
bottom prices, take all returns (no questions asked), pay volume rebates,
co-op all advertising, and all the while, be on the shelf next to the store
brands which are priced significantly lower.  The power of the computer and
technology enhancements have however, made it possible for marketers to seek
new channels and go direct.  Most specifically, the use of database
marketing as a Direct Marketing tool has enabled marketers to understand
customers deeper down the funnel enabling them to go direct.  Direct
channels of distribution could be catelogues, or internet commerce.  The key
to remember about this first definition of Direct Marketing, is that when
traditional channels are bypassed it must always be enabled by database
marketing which affords us the knowledge of the customer necessary to go
direct.

The second definition of Direct Marketing is that it is equal to
Relationship Marketing.  In fact the terms Direct Marketing and Relationship
Marketing are interchangeable in my humble opinion.  Direct Marketing is
pre-qualified, timely, relevant, and highly personalized.  It is usually
directed to customers in highly individualized addressable media. It is
definitely used most often as a "back end" tool at the end of the IMC
strategy, because it is only possible when we know the customer deep down
the funnel to an individualized or customized level.  The customer has
already said "I want to play the game with you".  They have already told us
about the products and services they need and have asked us to deliver in
exchange for their loyalty.  In other words, Direct Marketing programs are
almost never geared toward "churning" in new customers, rather, to gain more
business from our best existing customers.  When I go out to my mail box, I
find tons of junk mail, but there may be a letter from the Ford dealership
where I recently purchased my truck.  The letter is individually addressed
and highly personal.  I open it because I have a pre-existing relationship
with the dealership.  The Service manager has invited me to visit their
newly completed state of the art service center and has pointed out that
since it's been three thousand miles since my last oil change, that he'll
give me one free when I visit, no waiting, (I'll have a reserved spot).  Do
you see how this is direct marketing because it is pre-qualified, personal,
timely (I need that oil change) relevant, etc.

So, let's briefly summarize what we've learned so far.  There are 5 IMC
tools which must be used in an integrated fashion to achieve measurability
and the greatest value, the greatest synergy.  The appropriate IMC mix will
be different for each company and each circumstance.  In every case, when
the tools are used stand alone (by themselves) there is waste, clutter,
declines in brand loyalty, etc.

There are tools which must be used at the beginning of an IMC strategy
(front end tools), and there are tools which are most appropriately used on
the back end of an IMC strategy. Advertising is a front end tool designed to
create image and awareness (although it can be a back end tool when the
objective is brand positioning rather than image and awareness (usually done
with Coke, Nike, or other large global marketers).   When advertising is
used stand alone, it is not measurable and therefore must be integrated with
another front end tool which will make it measurable, most often, Sales
Promotion (measurable because you can track redemption of the promotion or
response to the promotion). Sales Promotion is very very dangerous when used
alone as it will be considered a discount price promotion and lead to price
wars and great declines in the consumers perception of the product or
service, and in brand loyalty.  However, if used appropriately to induce
trial, Sales Promotion is the greatest of all response motivators.  It
should be used to induce trial or motivate response and then quickly "turned
off"  after it has accomplished the objective, and before it leads to price
wars and declines in brand loyalty.  Personal Selling is powerful and
sometimes the only way to "close the deal".  However, it must be used as a
"back end" IMC tool, otherwise, it becomes the most expensive and
inefficient tool of all.  Personal Selling is used after the relationship
has already been established and when dialogue has already taken place (It's
highly productive for example when aiming for greater shares of "existing"
customer business).  When products or services are very expensive or highly
technical, Personal Selling becomes even more necessary.

The key to utilizing these IMC tools is to achieve the proper integrated mix
and maximum synergy.  There is no magic formula, and the mix of IMC tools is
different depending on each particular situation.  Ultimately, you'll need
to use front end tools such as Advertising and P.R. to create awareness or
to maintain image.  With new products or services, you'll need to use Sales
Promotion as a front end tool to induce trial (just remember to quickly turn
it on, and then turn it off).  Personal Selling and Direct Marketing are
more relational tools, back end tools, which are used after awareness has
been created and after trial has been induced.  Most often these two back
end tools are used with our already existing customers or our highest
quality prospects who have identified themselves and said "yes, tell me
 more".

Trade shows and events are excellent examples of utilizing Integrated
Marketing Communications.

Here's an example:

Let's say I'm the President of a new and very small Contemporary Christian
Record company.  I have almost no money for advertising, and I'm so small
that most distributors aren't interested in me. What do I do?  Well, first,
I'd record all my albums in my home studio which is all digital and very
high quality (technology has made this possible at a very low cost).  Now I
decide that when a CD sells for $15.00 that I want to retain all the
revenues, which means recording all the material, publishing it,
copyrighting it, and MOST IMPORTANTLY delivering it direct to the customer
without a distributor.  How could I do this, after all, nobody knows who I
am, and I can't create awareness via advertising because it's too expensive.
Why not have a concert event, in fact, a free concert event.  Well actually,
it's not free, you do have to do one simple thing to get in and that is to
complete an information card (I absolutely must do this because it's the
beginnings of creating a proprietary database).  Because the event is free,
all the Christian radio stations and newspapers will announce the event (ah
ha, Public Relations to create awareness).  I'll also be able to get 30
minute interviews vs. 15 second spots because the event is free and might
also be for a good cause if I team up with a local charity for example.  I'
ve done a good job on the front end, creating awareness through P.R. and
motivating response through Sales Promotion (the free concert).  While
people are at the event (and if I can deliver the great music that I've
promised, people can buy hats, shirts, CD's, etc.)  At the event lots and
lots of Direct Marketing (relationship building) is going on.  Now either I
have everyone addresses (including e-mail) or they can contact me because I'
ve given them web site address and 800 phone numbers.  All sales now take
place via interactive commerce through the web site or at future concert
events.  There is continuous dialogue with these people who have identified
themselves as interested in my company and our music.  There will never be a
need for expensive advertising because from here on out, it's word of mouth,
the positive multiplier effect.  I trust this simple example gives you an
idea of the power of Integrated Marketing Communications and closes the book
on the "P" of Promotion.