1. Principles of Marketing - UNBSJ
BA 2303
Principles of Marketing - UNBSJ
Integrated Marketing Communications and Direct Marketing
Instructor – Terry Conrod

2. Learning Objectives BA 2303
Discuss integrated marketing communications and the communication process.
Describe the promotional mix and the uniqueness of each component.
Select the promotional approach appropriate to a product’s lifecycle and characteristics.
Discuss the characteristics of push and pull strategies.
Describe the elements of the promotion decision process.
Explain the value of direct marketing for consumers and sellers.

3. The communication process
BA 2303
The six elements required for communication to occur are: (1) source, (2) message, (3) channel of communication, (4) receiver, and (5/6) processes of encoding and decoding
A difficulty for Canadian companies advertising in foreign markets is that the audience does not share the same Field of Experience

4. BA 2303
Promotional mix

5. THE PROMOTIONAL ELEMENTS
BA 2303
THE PROMOTIONAL ELEMENTS
Advertising
Personal Selling
Public Relations
Publicity
Sales Promotion
Direct Marketing

6. BA 2303
Concept Check
Explain the difference between advertising and publicity when both appear on television.
Answer:
Advertising on television is any paid form of non- personal communication about an organization, good, service, or idea by an identified sponsor. The space for the advertising message normally must be bought. Publicity on the other hand, is a non-personal, indirectly paid presentation of an organization, good, or service. A company does not pay for space in a mass medium but attempts to get the medium to run a favourable story on the company.

7. Sales promotions should be offered only on a short- term basis.
Concept Check
Which promotional element should be offered only on a short-term basis?
Answer:
Sales promotions should be offered only on a short- term basis.

8. Concept Check personal selling
BA 2303
Concept Check
Cost per contact is high with the ______________ element of the promotional mix.
personal selling

9. INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
BA 2303
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
The Target Audience
The Product Life Cycle
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage

10. Promotional tools used over the product life cycle of Purina Dog Chow
BA 2303
Promotional tools used over the product life cycle of Purina Dog Chow
During the introduction stage, the main goal is to inform. During the growth stage, the main goal is to persuade. During the maturity phase, the main goal is to remind. During the decline stage, little money is normally spent on promotion.

11. INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
BA 2303
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
Product Characteristics
Stages of the Buying Decision
Prepurchase Stage
Purchase Stage
Postpurchase Stage

12. BA 2303
How the importance of promotional elements varies during the consumer’s purchase decision

13. INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
BA 2303
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
Channel Strategies
Push Strategy
Pull Strategy
Push strategy is directing the promotional mix to channel members or intermediaries to gain their co-operation in ordering and stocking a product. Pull strategy is directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product.

14. A comparison of push and pull promotional strategies
BA 2303

15. DEVELOPING THE PROMOTION PROGRAM
BA 2303
DEVELOPING THE PROMOTION PROGRAM
Who is the target audience?
What are:
(1) the promotion objectives,
(2) the amounts of money that can be budgeted for the promotion program, and
(3) the kinds of promotion to use?
Where should the promotion be run?
When should the promotion be run?

16. The promotion decision process
BA 2303
The promotion decision process

17. DEVELOPING THE PROMOTION PROGRAM
BA 2303
DEVELOPING THE PROMOTION PROGRAM
Identifying the Target Audience
Specifying Promotion Objectives
Hierarchy of effects (promotion elevates customer readiness to purchase)
Setting the Promotion Budget
Percentage of Sales
Competitive Parity
All-You-Can-Afford
Objective and Task

18. The objective and task approach
BA 2303

19. DEVELOPING THE PROMOTION PROGRAM
BA 2303
DEVELOPING THE PROMOTION PROGRAM
Selecting the Right Promotional Tools
Designing the Promotion
Scheduling the Promotion

20. EXECUTING AND EVALUATING THE PROMOTION PROGRAM
BA 2303
EXECUTING AND EVALUATING THE PROMOTION PROGRAM
Pre-test each design before it is actually used to allow for changes and modifications that improve its effectiveness.
Post-tests are recommended to evaluate the impact of each promotion and the contribution of the promotion toward achieving the program objectives.

21. What are the characteristics of good promotions objectives?
BA 2303
Concept Check
What are the characteristics of good promotions objectives?
Answer:
"Good" promotion objectives should possess these characteristics: (1) Be designed for a well-designed for a well-defined target audience, (2) Be measurable, and (3) Cover a specified time period

22. What are the weaknesses of the percentage of sales budgeting approach?
BA 2303
Concept Check
What are the weaknesses of the percentage of sales budgeting approach?
Answer:
The major weakness of the percentage of sales budgeting approach is that there has to be a direct correlation between that sales and promotion.

23. BA 2303
Concept Check
How have advertising agencies changed to facilitate the use of IMC programs?
Answer:
There has been a rise in the number of advertising agencies in response to the need for IMC programs. In addition, some of the largest agencies are adopting "total communications solutions" approaches.

24. DIRECT MARKETING The Growth of Direct Marketing
BA 2303
DIRECT MARKETING
The Growth of Direct Marketing
The Value of Direct Marketing
Direct orders
Lead generation
Traffic generation
Technological, Global, and Ethical Issues in Direct Marketing

25. BA 2303
Concept Check
The ability to design and use direct marketing programs has increased with the availability of ___________________ and the _________.
customer databases
Internet

26. The fastest growing direct market medium in Canada is the __________.
BA 2303
Concept Check
The fastest growing direct market medium in Canada is the __________.
Internet

27. BA 2303
Concept Check
What are the three types of responses generated by direct marketing activities?
Answer:
The three types of responses generated by direct marketing activities are: (1) Direct orders, (2) Lead generation, and (3) Traffic generation

28. BA 2303
Communication
(1) The process of conveying a message to others, which requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. (2) Online, the dialogue that unfolds between a website and its users.

29. BA 2303
Source
A company or person who has information to convey.

30. BA 2303
Message
The information sent by a source to a receiver in the communications process.

31. Channel of Communication
BA 2303
Channel of Communication
The means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver.

32. BA 2303
Receivers
Consumers who read, hear, or see the message sent by a source in the communications process.

33. BA 2303
Encoding
The process of having the sender transform an abstract idea into a set of symbols.

34. BA 2303
Decoding
The process of having the receiver take a set of symbols, the message, and transform them back to an abstract idea.

35. BA 2303
Field of Experience
Similar understanding and knowledge; to communicate effectively, a sender and a receiver must have a mutually shared field of experience.

36. BA 2303
Response
(1) In behavioural learning, the action taken by a consumer to satisfy a drive. (2) In the feedback loop, the impact the message had on the receiver’s knowledge, attitudes, or behaviours.

37. BA 2303
Feedback
The communication flow from receiver back to the sender that helps the sender know whether the message was decoded and understood as intended.

38. BA 2303
Noise
Extraneous factors that can work against effective communication by distorting a message or the feedback received.

39. BA 2303
Advertising
Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.

40. BA 2303
Personal Selling
The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.

41. BA 2303
Public Relations
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.

42. BA 2303
Publicity
A non-personal, indirectly paid presentation of an organization, good, or service.

43. BA 2303
Sales Promotion
A short-term inducement of value offered to arouse interest in buying a good or service.

44. BA 2303
Direct Marketing
Promotional element 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.

45. BA 2303
Promotional Mix
The combination of one or more of the promotional elements a firm uses to communicate with consumers. The promotional elements include: advertising, personal selling, sales promotion, public relations, and direct marketing.

46. BA 2303
Push Strategy
Directing the promotional mix to channel members to gain their co-operation in ordering and stocking a product.

47. BA 2303
Pull Strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product.

48. Integrated Marketing Communications
BA 2303
Integrated Marketing Communications
The concept of designing marketing communications programs that co-ordinate all promotional activities to provide a consistent message across all audiences.

49. BA 2303
Hierarchy of Effects
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.

50. Percentage of Sales Budgeting
BA 2303
Percentage of Sales Budgeting
Allocating funds to advertising as a percentage of past or anticipated sales, in terms of either dollars or units sold.

51. Competitive Parity Budgeting
BA 2303
Competitive Parity Budgeting
Matching the competitors’ absolute level of spending or the proportion per point of market share.

52. All-You-Can-Afford Budgeting
BA 2303
All-You-Can-Afford Budgeting
Allocating funds to promotion only after all other budget items are covered.

53. Objective and Task Budgeting
BA 2303
Objective and Task Budgeting
A budgeting approach whereby the company (1) determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and (3) determines the promotion cost of performing these tasks.

54. BA 2303
Direct Orders
The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase an complete the transaction.

55. BA 2303
Lead Generation
The result of a direct marketing offer designed to generate interest in a product or a service, and a request for additional information.

56. BA 2303
Traffic Generation
The outcome of a direct marketing offer designed to motivate people to visit a business.