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

2. Describe the promotional mix and the uniqueness of each component.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO:
Discuss integrated marketing communication and the communication process.
LO1
LO2
Describe the promotional mix and the uniqueness of each component.
Select the promotional approach appropriate to a product’s target audience, life-cycle stage, and channel strategy.
LO3
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3. Describe the elements of the promotion decision process.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO:
LO4
Describe the elements of the promotion decision process.
LO5
Explain the value of direct marketing for consumers and sellers.
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4. GET ENGAGED…IN THE TWITTERVERSE!
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5. THE COMMUNICATION PROCESS
LO1
Promotional Mix
Inform Prospective Buyers
Persuade Them To Try
Remind Them of the Benefits
Integrated Marketing Communications (IMC)
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6. FIGURE 14-1 The communication process consists of six key elements
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7. THE COMMUNICATION PROCESS
LO1
Communication
Source
Message
Channel of Communication
Receivers
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8. THE COMMUNICATION PROCESS
LO1
Field of Experience
Encoding
Decoding
Noise
Feedback
Response
Feedback Loop
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9. The North Face Ad Who is the source. What is the message
The North Face Ad Who is the source? What is the message? How would you decode this ad?
LO1
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10. FIGURE 14-2 The five elements of the promotional mix
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11. THE PROMOTIONAL ELEMENTS
ADVERTISING
LO2
Mass Selling
Customized Interaction
vs.
Advertising
Paid Aspect
Advantages
Nonpersonal
Disadvantages
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12. THE PROMOTIONAL ELEMENTS
PERSONAL SELLING
LO2
Personal Selling
Wasted Coverage
Advantages
Disadvantages
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13. THE PROMOTIONAL ELEMENTS
PUBLIC RELATIONS
LO2
Public Relations
Publicity
Advantages
Disadvantages
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14. THE PROMOTIONAL ELEMENTS SALES PROMOTION AND DIRECT MARKETING
LO2
Sales Promotion
Advantages
Disadvantages
Direct Marketing
Advantages
Disadvantages
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15. IMC—DEVELOPING THE PROMOTIONAL MIX
THE TARGET AUDIENCE
LO2
Determine the Balance of the Elements
Coordinate the Promotional Effort
Assess Target Audience Characteristics
Consumers
Businesses
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16. MARKETING MATTERS How Can You Reach Generation Y? With Mobile Marketing!
LO2
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17. IMC—DEVELOPING THE PROMOTIONAL MIX
THE PRODUCT LIFE CYCLE
LO3
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
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18. FIGURE 14-3 Promotional tools used over the product life cycle of Purina Dog Chow
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19. IMC—DEVELOPING THE PROMOTIONAL MIX
CHANNEL STRATEGIES
LO3
Push Strategy
Pull Strategy
Direct-to-Consumer
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20. FIGURE 14-4 A comparison of push and pull promotional strategies
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21. FIGURE 14-5 The promotion decision process includes planning, implementation, and evaluation
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22. DEVELOPING AN IMC PROGRAM IDENTIFYING THE TARGET AUDIENCE
Behaviorial Targeting
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23. DEVELOPING AN IMC PROGRAM SPECIFYING THE PROMOTION OBJECTIVES
Hierarchy of Effects
Awareness
Trial
Interest
Adoption
Evaluation
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24. DEVELOPING AN IMC PROGRAM SETTING THE PROMOTION BUDGET
Percentage of Sales Budgeting
Competitive Parity Budgeting
Matching Competitors
Share of Market
All-You-Can-Afford Budgeting
Objective and Task Budgeting
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25. USING MARKETING DASHBOARDS How Much Should You Spend on IMC?
LO4
Promotion-to-Sales Ratio
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26. DEVELOPING AN IMC PROGRAM
Selecting the Right Promotional Tools
Designing the Promotion
Scheduling the Promotion
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27. EXECUTING AND ASSESSING THE PROMOTION PROGRAM
LO4
Pretesting
Posttesting
IMC Audit
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28. The Growth of Direct Marketing
LO5
The Growth of Direct Marketing
The Value of Direct Marketing
Direct Orders
Priceline Ad
Lead Generation
Traffic Generation
Technological, Global and Ethical Issues in Direct Marketing
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29. MAKING RESPONSIBLE DECISIONS What Information Should Be Private”
LO5
Do-Not-Call
Do Not Mail
E-Privacy Directive
Do Not Track
DMA
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30. MOUNTAIN DEW: USING IMC AND SOCIAL MEDIA TO CREATE AND PROMOTE A NEW FLAVOR
VIDEO CASE 14
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31. FIGURE 1 The seven stages of the Dewmocracy 2 campaign
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32. VIDEO CASE 14
MOUNTAIN DEW
1. What changes in the environment provided the opportunity for the Dewmocracy approach?
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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?
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34. VIDEO CASE 14
MOUNTAIN DEW
3. What are some of the different ways Mountain Dew can assess the success of its campaign?
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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.
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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 marketing—to provide a consistent message across all audiences.
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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.
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38. Advertising
Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
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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 person’s or group’s purchase decision.
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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.
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41. Publicity
Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service.
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42. Sales Promotion
Sales promotion is a short-term inducement of value offered to arouse interest in buying a good or service.
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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.
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44. Push Strategy
A push strategy involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
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45. Pull Strategy
A pull strategy involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
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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.
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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.
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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.
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49. Traffic Generation
Traffic generation is the outcome of a direct marketing offer designed to motivate people to visit a business.
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