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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 LO1 Discuss integrated marketing communication and the communication process. Describe the promotional mix and the uniqueness of each component. LO2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO: Select the promotional approach appropriate to a products target audience, life-cycle stage, and channel strategy. LO3 14-2

3 LO4 Describe the elements of the promotion decision process. Explain the value of direct marketing for consumers and sellers. LO5 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO: 14-3


5 THE COMMUNICATION PROCESS LO1 Promotional Mix Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) Inform Prospective Buyers Persuade Them To Try Remind Them of the Benefits 14-5

6 FIGURE 14-1 FIGURE 14-1 The communication process consists of six key elements 14-6

7 THE COMMUNICATION PROCESS LO1 Communication Source Channel of Communication Message Receivers 14-7

8 Encoding Decoding Field of Experience Feedback Loop Feedback Response Noise THE COMMUNICATION PROCESS LO1 14-8

9 The North Face Ad Who is the source? What is the message? How would you decode this ad? LO1 14-9

10 FIGURE 14-2 FIGURE 14-2 The five elements of the promotional mix 14-10

11 THE PROMOTIONAL ELEMENTS ADVERTISING LO2 Mass Selling Customized Interaction Advertising Paid Aspect Nonpersonal vs. Advantages Disadvantages 14-11

12 THE PROMOTIONAL ELEMENTS PERSONAL SELLING LO2 Personal Selling Wasted Coverage Advantages Disadvantages 14-12

13 THE PROMOTIONAL ELEMENTS PUBLIC RELATIONS LO2 Public Relations Publicity Advantages Disadvantages 14-13

14 THE PROMOTIONAL ELEMENTS SALES PROMOTION AND DIRECT MARKETING LO2 Sales Promotion Direct Marketing Advantages Disadvantages Advantages Disadvantages 14-14

15 IMCDEVELOPING THE PROMOTIONAL MIX THE TARGET AUDIENCE Determine the Balance of the Elements Coordinate the Promotional Effort LO2 Assess Target Audience Characteristics Consumers Businesses 14-15

16 MARKETING MATTERS How Can You Reach Generation Y? With Mobile Marketing! LO2 14-16

17 Introduction Stage Growth Stage Maturity Stage Decline Stage IMCDEVELOPING THE PROMOTIONAL MIX THE PRODUCT LIFE CYCLE LO3 14-17

18 FIGURE 14-3 FIGURE 14-3 Promotional tools used over the product life cycle of Purina Dog Chow 14-18

19 Push Strategy Pull Strategy Direct-to-Consumer IMCDEVELOPING THE PROMOTIONAL MIX CHANNEL STRATEGIES LO3 14-19

20 FIGURE 14-4 FIGURE 14-4 A comparison of push and pull promotional strategies 14-20

21 FIGURE 14-5 FIGURE 14-5 The promotion decision process includes planning, implementation, and evaluation 14-21


23 DEVELOPING AN IMC PROGRAM SPECIFYING THE PROMOTION OBJECTIVES LO4 Awareness Trial Interest Adoption Evaluation Hierarchy of Effects 14-23

24 DEVELOPING AN IMC PROGRAM SETTING THE PROMOTION BUDGET LO4 Percentage of Sales Budgeting Competitive Parity Budgeting All-You-Can-Afford Budgeting Objective and Task Budgeting Matching Competitors Share of Market 14-24

25 USING MARKETING DASHBOARDS How Much Should You Spend on IMC? Promotion-to-Sales Ratio LO4 14-25

26 DEVELOPING AN IMC PROGRAM LO4 Designing the Promotion Selecting the Right Promotional Tools Scheduling the Promotion 14-26


28 DIRECT MARKETING LO5 The Value of Direct Marketing Technological, Global and Ethical Issues in Direct Marketing The Growth of Direct Marketing Direct Orders Traffic Generation Lead Generation Priceline Ad 14-28

29 MAKING RESPONSIBLE DECISIONS What Information Should Be Private LO5 DMA Do-Not-Call Do Not Mail Do Not Track E-Privacy Directive 14-29


31 FIGURE 1 FIGURE 1 The seven stages of the Dewmocracy 2 campaign 14-31

32 VIDEO CASE 14 MOUNTAIN DEW 1. What changes in the environment provided the opportunity for the Dewmocracy approach? 14-32

33 VIDEO CASE 14 MOUNTAIN DEW 2. Which of the promotional elements described in Figure 14-2 are used by Mountain Dew in its Dewmocracy 2 campaign? 14-33

34 VIDEO CASE 14 MOUNTAIN DEW 3. What are some of the different ways Mountain Dew can assess the success of its campaign? 14-34

35 Promotional Mix The promotional mix is the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product. 14-35

36 Integrated Marketing Communications (IMC) Integrated marketing communications (IMC) is the concept of designing marketing communications programs that coordinate all promotional activities advertising, personal selling, sales promotion, public relations, and direct marketingto provide a consistent message across all audiences. 14-36

37 Communication Communication is the process of conveying a message to others and that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. 14-37

38 Advertising Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. 14-38

39 Personal Selling Personal selling consists of the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a persons or groups purchase decision. 14-39

40 Public Relations Public relations is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. 14-40

41 Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. Publicity 14-41

42 Sales Promotion Sales promotion is a short-term inducement of value offered to arouse interest in buying a good or service. 14-42

43 Direct Marketing Direct marketing is a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. 14-43

44 Push Strategy A push strategy involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. 14-44

45 Pull Strategy A pull strategy involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product. 14-45

46 Hierarchy of Effects The hierarchy of effects is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). The stages include awareness, interest, evaluation, trial, and adoption. 14-46

47 Direct Orders Direct orders is the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. 14-47

48 Lead Generation Lead generation is the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information. 14-48

49 Traffic Generation Traffic generation is the outcome of a direct marketing offer designed to motivate people to visit a business. 14-49

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