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IMC Unit 4

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IMC Unit 4

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Dany Joseph
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UNIT 4

Public Relations
Public relations describes the various methods a company uses to disseminate messages about
its products, services, or overall image to its customers, employees, stockholders, suppliers,
or other interested members of the community. The point of public relations is to make the
public think favorably about the company and its offerings. Commonly used tools of public
relations include news releases, press conferences, speaking engagements, and community
service programs.
Public relations involves two-way communication between an organization and its public. It
requires listening to the constituencies on which an organization depends as well as analyzing
and understanding the attitudes and behaviors of those audiences. Only then can an
organization undertake an effective public relations campaign.
Many small business owners elect to handle the public relations activities for their own
companies, while others choose to hire a public relations specialist. Managers of somewhat
larger firms, on the other hand, frequently contract with external public relations or
advertising agencies to enhance their corporate image. But whatever option is chosen, the
head of a company is ultimately responsible for its public relations.
DEFINITIONS OF PUBLIC RELATIONS
“Public Relations is the deliberate, planned and sustained effort to establish and maintain
mutual understanding between on organization and its publics.” - Institute of Public Relations,
USA
Public relations is communicating your organization’s messages at the right time and in
the right place to the right audience. With the proliferation of tools and technologies, we
can measure the value of those efforts and how they align with a business’ overall
mission. Marla Aaron – MRM Worldwide

PR focuses on building good relations with the company’s various publics by obtaining
favorable publicity, building a good corporate image, and handling crisis management
issues. Today, a good PR firm must be experts in use of social media. Mark Burgess –
Blue Focus Marketing
Objectives of Public Relations:
1. Creating awareness about the company, its goals, products and services where this counts.
2. Sustaining the awareness as an ongoing process, keeping in mind what the competitors are
doing, and knowing that public memory is short.
3. Striving to be accepted by the various publics. Special efforts are required to be accepted
by employees. A foreign company has its own requirements for being accepted on this soil.
4. Creating a bond of trust. In times of rumors, misinformation, etc., a company has to
establish the truth. In normal times, too, a company has to promote its reliability. Just consider
the frequent use of words like believe, trust, reliable, safe, 100%, etc. in building a company
image.
5. Getting cooperation from various quarters. A company has many publics on whom it has
to depend. Government organizations, providers of various services etc. have to be wooed in
such a way that they willingly help the company.
6. Earning recognition. It is not enough to perform feats but it is necessary to get these noticed
and talked about. Through winning awards, certifications etc. and getting these read and seen,
a company gets recognition. Having so-and-so as a client or collaborator may itself be a
recognition. This has to be publicized.

FUNCTIONS OF PUBLIC RELATIONS


• Public Relations is establishing the relationship among the two groups (organisation
and public).
• Art or Science of developing reciprocal understanding and goodwill.
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• It analyses the public perception & attitude, identifies the organisation policy with
public interest and then executes the programmes for communication with the public.

PUBLIC RELATIONS TOOLS AND ACTIVITIES

By using proven public relations (PR) tools and activities, you can promote positive attitudes
and behaviours towards your business that will help convert interested consumers into
customers.
PR tools are very cost-effective, and often give you a greater degree of control than more
broadly targeted advertising campaigns. Consider using these PR tools to build your
business's reputation.
1. Media relations
Media strategies focus on circulating messages through media channels to manage how your
business is portrayed by the media. Your media tools might include releasing media
statements and fact sheets, offering on-site media tours to encourage journalists to report
positive messages about your business, and using social media to get the attention of
journalists and track journalists who report in your market.
By developing good media contact lists and building relationships with key journalists to
pitch media releases and story ideas to, you can use local, regional or state media to:
• promote your business
• manage risks, issues or crises affecting your business.
2. Advertorials
Advertorials are advertisements in the form of news stories or reviews in newspapers.
Advertorials allow you to associate your advertising with the credibility of the newspaper.
Many businesses employ advertising or marketing professionals to help them develop TV
advertorials - which are commonly used as a form of advertising and product placement.
3. Social media
Social media lets you bypass the media and go straight to your customers. Using social
networking sites such as Facebook and Twitter allows you to follow and be followed by
journalists, drive web traffic, manage issues by responding quickly to criticisms or negative
perceptions, and increase exposure for your business brand.
4. Newsletters
Print or emailed newsletters are a good way to promote your business, communicate with
customers and keep them informed of new products and services.
Regular newsletters can strengthen your personal connections with customers and reflect your
business brand and personality. A well written newsletter offers information of value to your
customers.
5. Brochures and catalogues
'Take home' or mail-out brochures or catalogues can help keep your customers thinking about
your business and its products and services.
Properly designed brochures and catalogues give customers confidence in you and your
brand, and help drive customers to your website or store. Information contained in business
brochures and catalogues can be effectively reworked for your website, helping you do
business online.
6. Business events
Events are opportunities for business people to gain exposure for their businesses, promote
new products or services and make sure accurate information reaches targeted customers.
From a sales point of view, events are a chance to counter customer doubts and build customer
confidence. They can also help you research your market and competitors, and build your
mailing list. Make sure you go to the event prepared with marketing materials to disseminate
and a way to collect information and customer details.

UNIT 4 Page 2
Trade shows are an opportunity for businesses to compete in their industry and share
information with people in similar lines of work. Learn more about promoting your business
at trade shows and exhibitions.
7. Speaking engagements
Speaking at events where customers are likely to attend helps position you as a leader or
innovator in your field. As a business owner or leader, building your reputation as an expert
also builds the reputation of your business - and draws new customers.
Events are valuable promotional opportunities even if you don't have top billing as a speaker.
You will build reputation simply by having your business name or logo on the event listing,
or delivering a presentation about a new product or innovation. Additionally, they provide
valuable networking opportunities.
8. Sponsorships or partnerships
Partnerships and sponsorships are good for business. Supporting a not-for-profit cause can
help build feelings of goodwill and loyalty towards your business. Community partnerships
may involve an exchange of funds or in-kind benefits to grow a local community organisation
in return for benefits that promote your business reputation.
Partnerships can help consumers identify your brand with good business practice and good
ethics.
9. Employee relations
Your staff are ambassadors for your business and brand. Many larger businesses conduct
employee relations - building their business culture and team relationships by sharing
information, promoting involvement and instilling a sense of pride in business achievement.
This can improve teamwork, staff retention and productivity, and ensure that staff are
representing your business consistently and with the right messages.
10. Community relations
Building good relationships with members of the community where you do business helps
build customer loyalty. Find out where the customers in your community live by collecting
postcodes at point of sale.
Engaging local stakeholders and decision makers helps build your profile and level of
influence, helping you to attract more customers through word-of-mouth and ensuring your
business interests are factored into community decision making.
PUBLIC RELATIONS PROCESS
1. Listing and prioritising of information is to be disseminated:
May wish to inform the public: a) The new policy of the Government or organisation b) The
change in the existing policy c) The new scheme promoted d) The change in the existing
scheme Public Relations activity starts with identifying the message to be disseminated and
prioritised.
2. Ascertaining the existing knowledge level or understanding the perceptions of the
public:
The organisation can check a quick survey among the target group of the public to ascertain
the knowledge level of the issue for which the organisation is planning to initiate Public
Relations process and in case of the image it is essential to know whether the image is
positive, neutral or negative in terms of the assessment or in terms of the organisation or both.
3. Communication objectives and prioritise:
Based on the knowledge level or image factor, communication objectives is to be established
which is possible to evaluate and the top management approval is required. For example,
communication objective instead of using the term increasing awareness level about the
scheme, it should be specific "By 2005, in the number of families where of the scheme be
atleast one lakh" so that we can evaluate the impact.
4. Message and Media:
After choosing the objective, the content of the message need to be developed. While
developing the message we should keep in mind the media in which we are going to use for
UNIT 4 Page 3
disseminating that message. TV/Visual media may be effective for showing the
demonstrating awareness. Training media may be effective whether the recipient may wish
to keep the gap or further reference.
5. Implementation of message and media:
Based on the expected reaching level and target group, the budget is to be prepared and
message is transmitted through the appropriate media's.
6. Impact assessment:
After release of the message, it is essential to study the impact at interval by interacting with
the target group.
7. Message redesigned:
In case, the interaction of the target group reveals the message did not reach as expected the
modification in message or media need to be done and the revised message should be
disseminated.
PUBLIC RELATION OF AN ORGANISATION
Every organisation has to list out the bodies and segments of population on whom it depends
for its smooth functioning and growth.
I. Internal Public Relations
It is curious that when we say a company sometimes we mean all its employees and
sometimes only the top management or owners. For the top management, the rank and file is
a public, to be entertained and befriended as a category.
Internal PR is maintained by means of:
1. Counseling and dialogue:
Employees may have to be advised suitably to get adjusted to their jobs.
2. Self-expression forums:
Employees should have access to higher management to convey their problems and useful
ideas. The employees may express themselves through suggestion schemes.
These contribute a fund of ideas based on actual working conditions. However, it is necessary
not to promise that the suggestions would all be translated into schemes.
At the same time, good ideas need to be rewarded. If a company conducts its own slogan
contest, it may give a prize to the winning slogan and save on publicity expenditure.
3. Publications:
As seen earlier in this section, house journals help to create a family feeling in an organisation.
If a house journal is supplemented by get-togethers (of employees within a town) and camps
(of employees from different towns), a bond of cordiality is created. The publication can serve
as a base for such get-togethers and camps.
4. Free films, entertainment shows, and educative lectures:
Even in the days of overexposure to films through TV, rare and attractive films can be
screened specially for employees.
Similarly, magic shows, hypnotism shows, gymnastics show, etc. can be arranged for them.
Educative lectures, yoga and meditation camps and celebration of special days (e.g. Hindi
Day), poetry meets, etc. are some more means of solidifying employee bonds.
5. Felicitations:
Employees and their family members can be felicitated for their achievements – merit ranks,
scholarships, adventure feats, etc.
6. Inviting family members by creating occasions:
A campaign like a tree plantation drive can be used to create a good image in the outside
world and an occasion for employees’ family members to meet in informal surroundings.
Family members may also be invited for national days like the Independence Day and the
Republic Day.
II. External Public Relations
This is a wider area, with many interest groups:

UNIT 4 Page 4
1. Customers:
They constitute the biggest public for a company. They can be wooed by having a grievance
cell, enquiry booth, “disinterested” educational campaigns (e.g. “night brushing is vital” –
message from a toothpaste company), display of posters and pamphlets explaining schemes,
creating convenience for weaker age groups and weaker sections, etc.
2. Financiers:
The company’s shareholders, bankers, depositors, etc. like to know about the financial status
of the company.
By issuing prompt, truthful, and self-explanatory and reader- friendly financial publications
and reaching them into the hands of the financial partners, a company can earn their goodwill.
3. General public:
There is a vast group of people who are not actual consumers of the company but may be
potential consumers.
For an airline, there are many who have no plans to fly in the near future but who still view
with interest the coming into existence of a new company in this line, its standard of service,
etc.
A company can stay in the memory of the general public by doing society-useful jobs, e.g.
cleanliness campaigns, ecofriendly activities, help in disaster management, etc.
4. Institutions:
They include government departments, corporations and public bodies. They are power
centres with much capacity to do or undo.
To stay good in their eyes, a company needs to do that which appeals to an enlightened group.
It needs to project an image as a law- friendly company. A clean administration and standards
of probity in the product help to woo institutions.
Public Relations Officer
Public relations (PR) is about managing reputation. A career in PR involves gaining
understanding and support for the clients, as well as trying to influence opinion and behaviour.
PR Officer will use all forms of media and communication to build, maintain and manage the
reputation of your clients. These range from public bodies or services, to businesses and
voluntary organisations.
PR Officer will communicate key messages, often using third party endorsements, to defined
target audiences in order to establish and maintain goodwill and understanding between an
organisation and its public.PR Officer should monitor publicity and conduct research to find
out the concerns and expectations of your client organisation's stakeholders. You'll then report
and explain the findings to its management.
Role and Functions of PR Officer
The role is very varied and tasks will depend on the organisation and sector. Responsibilities
often involve:

• planning, developing and implementing PR strategies;


• communicating with colleagues and key spokespeople;
• liaising with, and answering enquiries from media, individuals and other organisations,
often via telephone and email;
• researching, writing and distributing press releases to targeted media;
• collating and analysing media coverage;
• writing and editing in-house magazines, case studies, speeches, articles and annual
reports;
• preparing and supervising the production of publicity brochures, handouts, direct mail
leaflets, promotional videos, photographs, films and multimedia programmes;
• devising and coordinating photo opportunities;
• organising events including press conferences, exhibitions, open days and press tours;
• maintaining and updating information on the organisation's website;

UNIT 4 Page 5
• managing and updating information and engaging with users on social media sites such
as Twitter and Facebook;
• sourcing and managing speaking and sponsorship opportunities;
• commissioning market research;
• fostering community relations through events such as open days and through
involvement in community initiatives;
• managing the PR aspect of a potential crisis situation.

Publicity
Publicity is also a way of mass communication. It is not a paid form of mass communication
that involves getting favourable response of buyers by placing commercially significant news
in mass media. Publicity is not paid for by the organisation. Publicity comes from reporters,
columnists, and journalists. It can be considered as a part of public relations.
Publicity involves giving public speeches, giving interviews, conducting seminars, offering
charitable donations, inaugurating mega events by film actors, cricketers, politicians, or
popular personalities, arranging stage show, etc., that attract mass media to publish the news
about them.
Publicity is undertaken for a wide range of purposes like promoting new products, increasing
sales of existing product, etc. It also aimed at highlighting employees’ achievements,
company’s civic activities, pollution control steps, research and development successes,
financial performance, its progress, any other missionary activities, or social contribution.
DEFINITIONS:
1. William J. Stanton:
“Publicity is any promotional communication regarding an organisation and/or its products
where the message is not paid for by the organisation benefiting from it.”
2. Philip Kotler:
“Non-personal stimulation of demand for the product or service, or business unit by placing
commercially significant news about it in public medium or obtaining favourable presentation
of it upon radio, television, or stage that is not paid for by the sponsor.”
Characteristics of Publicity
Key characteristics of publicity have been briefly described in following part:
1. Meaning:
Publicity is not a paid form of mass communication that involves getting favourable response
of buyers by placing commercially significant news in mass media. It involves obtaining
favourable presentation upon radio, newspapers, television, or stage that is not paid for by the
sponsor.
2. Non-paid Form:
Publicity is not a paid form of communication. It is not directly paid by producer. However,
it involves various indirect costs. For example, a firm needs some amount for arranging
function, calling press conference, inviting outstanding personalities, decorating of stage,
other related costs, etc.
3. Various Media:
Mostly, publicity can be carried via newspapers, magazines, radio, or television. For example,
in case a product is launched by popular personality in a grand function, the mass media like
newspapers, television, radio, magazines, etc., will definitely publicize the event.
4. Objectives:
Sales promotion is undertaken for a wide variety of purposes. They may include promotion
of new product, pollution control, special achievements of employees, publicizing new
policies, or increase in sales. It is primarily concerns with publishing or highlighting
company’s activities and products. It is targeted to build company’s image. In a long run, it
can contribute to increase sales.
5. Control of Producer:

UNIT 4 Page 6
Company has no control over publicity in terms of message, time, frequency, information,
and medium. It comes through mass media like radio, newspapers, television, etc. It is given
independently by the third party. It is presented as a news rather than propaganda.
6. Credibility/Social Significance:
Publicity has high degree of credibility or reliability as it comes from mass media
independently. It is given as news for social interest. It has more social significance compared
to other means of market promotion.
7. Part of Public Relations:
Publicity is a part of broad public relations efforts and activities. Public relations includes
improving, establishing, and maintaining direct relations with all publics. Publicity can help
improve public relations.
8. Costs:
Publicity can be done at much lower cost than advertising. Company needs to spend a little
amount to get the event or function publicized.
9. Effect:
Publicity message is more likely to be read, viewed, heard, and reacted by audience. It has a
high degree of believability as it is given by the third party.
10. Repetition:
Frequency or repetition of publicity in mass media depends upon its social significance or the
values for news. Mostly, it appears only once.
Importance of Publicity:
1. Publicity is an effective medium to disseminate message to the mass with more credibility.
People have more trust on news given by publicity.
2. The credibility level of publicity is much higher than advertising and other means of market
promotion. People express more trust on what the third party independently says. It appears
directly through newspapers, magazines, television, or radio by the third party. It is free from
bias.
3. It provides more information as the valuable information is free from space and time
constraints. Similarly, publicity takes place immediately. No need to wait for time or space
in mass media. It enjoys priority.
4. The firm is not required to pay for publicity. The indirect costs related to publicity are much
lower than other means of promotion.
5. It is a part of public relations. It is free from exaggeration; it carries more factual
information about company. It is more trustable. It helps establish public relations.
6. Generally, publicity covers the varied information. It normally involves name of company,
its goods and services, history, outstanding achievements, and other similar issues. The
knowledge is more complete compared to advertisement.
7. Publicity directly helps middlemen and sale persons. Their tasks become easy. Publicity
speaks a lot about products on behalf of middlemen and salesmen. Sellers are not required to
provide more information to convince the buyers.
8. It is suitable to those companies which cannot effort the expensive ways to promote the
product.
9. Publicity increases credit or fame of the company. Publicity on company’s assistance in
relief operations during flood, earthquake, draught, and other natural calamities highlights its
name and social contribution in mass media. People hold high esteem to this company.
10. Publicity can be used by non-commercial organisations/institutes like universities,
hospitals, associations of blinds or handicaps, and other social and missionary organisations.
They can publicize their noble works by the medium of publicity.
Objectives of Publicity:
Publicity is aimed at a number of objectives.
1. Building Corporate Image:
Through publicity, a company can build or improve its corporate image. People trust more on
what press reporters, columnists, or newsreaders say via mass media independently than what
UNIT 4 Page 7
the company says. Publicity highlights the company’s name and operations. It popularizes the
name of the company.
2. Economy:
It is a cost saving medium. Here, a company is not required to pay for message preparation,
buying space and time, etc. The cost involved is much lower than other means of market
promotion. Financially poor companies may opt for publicity.
3. Assisting Middlemen and Salesmen:
Publicity can help middlemen and salesmen in performing the sales-related activities
successfully. Information conveyed through publicity speaks a lot of things on behalf of
sellers. Publicity makes selling tasks much easier.
4. Information with High Creditability:
Sometimes, publicity is targeted to disseminate information more reliably. Customers do not
express doubts on what publicity appeals. Customers assign more value to information
supplied by mass media via publicity than by the advertisement.
5. Removing Misunderstanding or Bad Image:
Company can defend the product that has encountered public problems. In many cases,
publicity is aimed at removing misunderstanding or bad impression. Whatever a publicity
conveys is more likely to be believed.
6. Building Interest on Product Categories:
Publicity attracts attention of buyers. Due to more trusted news, people build interest in
various products and activities.
7. Newsworthiness Information:
Publicity publicizes the fact in an interesting ways. Publicity is eye-catching in nature. People
do not skip the news presented by publicity that more likely happens in case of advertising.
For example, when a new product is launched by the distinguished personalities like film star,
eminent artist, or cricketer in a grand function, the product becomes popular within no time
TYPES OF PUBLICITY
INEXPENSIVE PUBLICITY TECHNIQUES
POSTERS:
The essential purpose of a poster is the rapid telling of a single simple message using a limited
number of elements. Posters are viewed more rapidly than other methods of advertisement.
Their message must be strong, simple, and brief.
TABLE TENTS:
Table tents should be made of thick or heavy grade of paper that will stand firm. Table tents
can be placed in visible locations including lounges, lobby, dining hall, and on desk tops.
INVITATION:
A personal touch can be added to your publicity by distributing invitations for your program.
These can be placed in mailboxes or handed out or slipped under room doors.
CALENDAR:
A large calendar of activities located on your bulletin board or distributed individually is a
particularly effective technique. Students will have at least one consistently identifiable
source for information and activities. The smaller calendars of activities can be copied and
put into mailboxes or slid under doors.
BALLOONS:
You can write a message on the balloon or put the message on a piece of paper inside the
balloon. Balloons can be tied with string to student’s door knobs, handed out at the entrance
of the building or handed out in dining hall lines.
TICKETS:
You can purchase printed tickets or make your own. Free tickets, and invitations, can be
placed in mailboxes, handed out, or slipped under doors. A variation of the ticket concept is
to distribute coupons. The coupon might entitle the person to a prize or free refreshment item.

UNIT 4 Page 8
Coupons can be included on flyers or on printed schedules and this may prevent your
advertisement from falling victim to the trash can.
BILLBOARDS:
Place a large poster in the central lobby of Goodwin Hall. For a more unusual effect, make a
human billboard by hanging posters on the front and back of someone and have them walk
around.
BANNERS:
A large extension of the poster, these can be hung outside the hall or in the mailroom or in a
lobby. A bed sheet or old shower curtain will make a good size banner.
WORD OF MOUTH:
And of course, there is the time-honored word-of-mouth technique. This is perhaps the oldest,
yet most effective way to get the word out. Its effectiveness should not be
underestimated. Go door to door and personally inform people of the activity; and remind
them frequently, so that they don’t forget.
OTHER PUBLICITY TECHNIQUES
▪ Networking sites
▪ Mass e-mails
▪ Bags
▪ Bookmarks
▪ Bull Horns
▪ Bumper Stickers
▪ Computer Letters
▪ Door Hanger
▪ Door Prizes
▪ Footprints
▪ Fortune Cookies
▪ Free Tickets to events
▪ Lawn Signs
▪ Logos
▪ Painted Windows
▪ Audix Message
▪ Puzzle Pieces
▪ Sidewalk Chalk Writing
▪ Sneak Previews
▪ Stickers
▪ Teasers
▪ Bathroom stalls
▪ T-shirts
▪ Visors
▪ Mirror Signs
▪ Lollipops with messages
▪ Balloons
▪ Post Cards

Direct Marketing
Direct marketing is a form of advertising where organizations communicate directly
to customers through a variety of media including cell phone text messaging, email, websites,
online adverts, database marketing, fliers, catalog distribution, promotional letters and
targeted television, newspaper and magazine advertisements as well as outdoor advertising.
Among practitioners, it is also known as direct response.
Direct marketing is a very popular and widely used method of informing people about
products and services. It's a method of contacting customers and potential customers
personally, rather than having an indirect medium between the company and the consumer,
UNIT 4 Page 9
such as magazine ads or billboards that are seen by the general public. Direct marketing can
take many forms, including mail, telephone calls, emails, brochures, and coupons. The
information is usually very broad and meant for a general audience. Direct marketing works
best for products that have a wide appeal.

Direct marketing applies to product and service-oriented businesses, and to nonprofit


organizations. In all situations, there is no intermediary involved. Direct marketing describes
this interactive communication with the end user.

Direct marketing is not synonymous with mass marketing. The most effective direct
marketing takes place when there is a clear connection to reach the target market.

Organizations may use several ways to leverage direct marketing as they communicate with
and deliver products to their customers. This may include using a direct sales force, catalogs,
websites, email, direct mail, telemarketing, seminars, trade shows, and other “one-to-one”
techniques to communicate and sell to their customers and clients.
The Objectives of Direct Marketing

1. Raised brand awareness


A primary objective of direct marketing is to raise awareness. Even if a campaign doesn’t
lead to a sale, raised awareness is still a positive outcome. The increased awareness may well
lead to a future sale, when the prospect or existing customer is in higher need of buying the
goods or services. Here are areas in which a direct marketing campaign will raise brand
awareness:
2. Sales / lead generation
One of the main targets of a direct marketing campaign is to generate sales and leads. As
we’ve said, it’s important all parties win, so campaigns need to be fair to everybody. Here are
some ways that direct marketing campaigns generate sales and leads:

• New lead generation – A proportion of the database marketed to will naturally respond
to the campaign and by doing so generate leads for new customers
• Generating trial orders – A proportion of the database marketed to will also generate
trial orders of products and services. This is a target of many campaigns as it could lead
to regular repeat ongoing business
• Reacquiring lost customers – Some direct marketing campaigns will target past
customers considered “lost”, a good outcome would be to acquire these customers as once
again active
• Upselling, cross-selling and repeat selling – Many direct marketing campaigns aim to:
– Upsell: This aims to sell to an existing customer upgrades and add-ons to a previous buy
to make the overall relationship more profitable
– Cross-sell: This aims to sell a related product or service to an existing customer who has
previously bought another product or service from the organisation
– Repeat sale: A campaign may target repeating a previous sale. This is particularly the case
when generating:
§ Charitable donations
§ Renewals (e.g. insurance) and
§ Subscriptions (e.g. to a magazine or to a member organisation)

3. Provide ROI that is measurable


Naturally, as a result of all of the increased sales discussed above, any organisation would
want to attain an ROI and even better one that is measurable:

UNIT 4 Page 10
• Increased profitability – Following the campaign, sales and profits should grow. Direct
marketing has a good track record in providing the increased profitability targeted
• Verifiable results – Tracking and monitoring techniques can be put in place to measure
the outcome of projects. For example:
– Marketing postcode: Use of a postcode which is only used to monitor postal responses from
a specific marketing campaign
– PURL: A personalised URL, which is only used to monitor campaign responses
– Telephone prompt: For telephone orders a telemarketing operative could ask “How did you
hear about us?” and the response monitored as a part of the measuring process
Types of Direct Marketing
The most common forms of direct marketing are:
• Internet marketing
• Face-to-face selling
• Direct mail
• Catalogs
• Telemarketing
• Direct-response advertising
• Kiosk marketing
1. Internet Marketing

The Internet has revolutionized direct marketing for promoting the sale of products and
services to targeted audiences. Access to the Internet provides users with services in four
basic areas:
• Information
• Entertainment
• Shopping
• Individual and group communication

Online channels can eliminate geographic considerations. With this capability people around
the world have the same access as the person across the street. Many businesses that can sell
their products and services through downloading, or who can economically ship those
products, have discovered an entirely new way to market.

The Internet makes direct marketing easier, more targeted, more flexible, more responsive,
more affordable, and potentially more profitable than ever. Virtually every business should
seriously consider the Internet as a part of their marketing mix and determine if it is a viable
fit for their direct marketing efforts.
2. Face-to-Face Selling

The most traditional direct marketing involves the in-house sales force personally contacting
potential and established consumers. Examples of organizations that use face-to-face selling
include:
3. Direct Mail

Direct mail is described as sending information about a special offer, product or sale
announcement, service reminder, or some other type of communication to a person at a
particular street or electronic address. Historically direct mail has existed in the form of
printed materials, but CDs, audio tapes, video tapes, fax mail, email, and voice mail are also
used in direct mail campaigns. For example, America Online experienced a highly successful
campaign through mailing out CD-ROMs to prospective customers. Direct mail permits high
target-market selectivity; it can be personalized, it is flexible, and it allows early testing and
response measurement to take place. A highly selective and accurate mailing list often
determines the success of direct mail efforts to enhance response rates and control costs.

UNIT 4 Page 11
4. Catalogs

Product catalogs are another version of direct mail where the catalogs are the communication
tool. The most common use of this approach involves featuring a variety of products that
target the needs of a specific audience who have shown a propensity to order from catalogs.
An increasing number of business-to-business marketers are sending catalogs on CD-ROM
to prospects and customers. The average U.S. household receives more than 50 catalogs each
year, ranging from general merchandise to specialty goods.
5. Telemarketing

The process of contacting people on a qualified list to sell services over the phone has grown
in popularity to the point that the average household receives 19 telemarketing calls each year.
Successful telemarketing campaigns depend on a good calling list, an effective script and
contact structure, and well-trained people that are compensated and rewarded for making calls
that result in sales.

The telecommunications industry, for example, has used telemarketing extensively to attempt
to increase their market share.
6. Direct-Response Advertising

Direct-response advertising is communicating with potential buyers through television, radio,


magazines, and newspapers. The prospective consumer watches, hears, or reads about the
product or service and initiates a call to a toll-free number to place their order. Television, for
example, offers a wide range of exposure, from a 30-second commercial to a 60-minute
infomercial.
7. Kiosk Marketing

Customer order machines, versus vending machines that actually provide products, are
another form of direct marketing. Stores place computer terminals to order from the entire
line of products not available in the retail store.

Your bank’s automatic teller machines (ATMs) placed in convenient and high traffic areas
are another example of kiosk marketing. A combination of these direct marketing techniques
may offer the optimal revenue generating solution.

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