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17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

17-3 Chapter Goals McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Role of promotion Forms of promotion Concept of integrated marketing communications How the process of communicating relates to effective promotion Key consideration in developing a promotion mix alternative promotional budgeting methods Major types of promotion regulation

17-4 Promotion in Marketing Use communication to influence the awareness, feelings, beliefs and behavior of prospective customers Use communication to influence the awareness, feelings, beliefs and behavior of prospective customers

17-5 Goal of Promotion The Goal of Promotion is to Change the Pattern of Demand for a Product.

17-6 Role of Promotion in Marketing Promotion and Imperfect Competition Promotion and Imperfect Competition Promotion and Marketing Promotion and Marketing Persuading Informing Reminding

17-7 Promotion Methods Personal Selling Advertising Direct presentation Face-to-face or phone Most money spent Nonpersonal Paid Sponsor Promotion

17-8 Promotion Methods Sales Promotion Public Relations Sponsored Demand stimulation Incentives Trade promotions Variety of communication efforts Contribute to generally Favorable attitudes No specific sales message Publicity

17-9 Integrated Marketing Communications A strategic business process used to plan, develop, execute, and evaluate Coordinated communication with an organization’s public

17-10 IMC Elements Awareness of audience’s information sources Understanding of audience’s knowledge and beliefs Mix of promotional tools linked to common goal Promotional effort coordinated to communicate a consistent message Timed, continuous flow of information

17-11 Implementing IMC Coordinated to accomplish objectives Advertising Sales Promotion Personal Selling Public Relations Direct Marketing

17-12 Evaluating IMC Action: usage or responses Interest in a product or brand Examine results Awareness of company or brand

17-13 Barriers to IMC Departmental barriers Marketing Communications Manager Resistance To alternatives

17-14 Communication Process

17-15 Determining the Promotional Mix STRATEGIC DECISIONS Available money Product Life Cycle Stage Nature of product Promotion Objectives Target Audience

17-16 Push and Pull Strategies

17-17 Promotion Objectives Hierarchy of Objectives Purchase Conviction Preference Liking Knowledge Awareness

17-18 Nature of the Product Degrees of Customization Presale and Postsale Service Unit Value

17-19 Product Life Cycle

17-20 The Promotion Budget Percentage of Sales Task or Objective Following Competition All Available Funds

17-21 Regulation of Promotion Federal Trade Commission Act Trademark Law Revision Act Lanham Trademark Act Wheeler- Lea Amendment Robinson -Patman Act Telephone Consumer Protection Act FEDERAL

17-22 Regulation of Promotion STATE AND LOCAL Green River Ordinance National Advertising Division Printers’ Ink Statutes Council of Better Business Bureaus Children’s Advertising Review Unit PRIVATE ORGANIZATIONS

17-23 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Promotion Personal selling Advertising Sales promotion Public relations Integrated marketing communications Communication Promotion mix Push strategy Pull strategy Hierarchy of effects Viral marketing Promotional budgeting methods Federal Trade Commission Act Wheeler-Lea Amendment Robinson-Patman Act

17-24 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Lanham Trademark Act Trademark Law Revision Act Telephone Consumer Protection Act Printers’ Ink statures Green River ordinance