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INTEGRATED MARKETING COMMUNICATIONS AND DIRECT MARKETING © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin THE COMMUNICATION PROCESS © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin THE COMMUNICATION PROCESS Communications Source Message Channel of Communication Receivers © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin THE COMMUNICATION PROCESS • Encoding and Decoding Field of experience • Feedback Response • Noise © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin THE PROMOTIONAL MIX © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin THE PROMOTIONAL ELEMENTS • Advertising • Personal Selling • Public Relations Publicity • Sales Promotion • Direct Marketing © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • The Target Audience • The Product Life Cycle • • • • Introduction Stage Growth Stage Maturity Stage Decline Stage © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Promotional tools used over the product life cycle of Purina Dog Chow © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • Product Characteristics • Stages of the Buying Decision • Prepurchase Stage • Purchase Stage • Postpurchase Stage © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The importance of promotional elements varies during the consumer’s purchase decision © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • Channel Strategies • Push Strategy • Pull Strategy © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A comparison of push and pull promotional strategies © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX • Integrated Marketing Communications © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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? © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DEVELOPING THE PROMOTION PROGRAM © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DEVELOPING THE PROMOTION PROGRAM • Identifying the Target Audience • Specifying Promotion Objectives Hierarchy of effects • Setting the Promotion Budget © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin U.S. promotion expenditures by companies in 2000 © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DEVELOPING THE PROMOTION PROGRAM • Setting the Promotion Budget • • • • Percentage of Sales Competitive Parity All You Can Afford Objective and Task © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The objective and task approach © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DEVELOPING THE PROMOTION PROGRAM • Selecting the Right Promotional Tools • Designing the Promotion • Scheduling the Promotion © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin EXECUTING AND EVALUATING THE PROMOTION PROGRAM Ideally, pretest and posttest © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DIRECT MARKETING • The Growth of Direct Marketing © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Direct marketing expenditures, sales and employment by medium © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DIRECT MARKETING • The Value of Direct Marketing Direct orders Lead generation Traffic generation • Technological, Global, and Ethical Issues in Direct Marketing © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin