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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:
LO 17-1
LO 17-2
Discuss integrated marketing
communication and the
communication process.
Describe the promotional mix and
the uniqueness of each component.
17-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:
LO 17-3
Select the promotional approach
appropriate to a product’s target
audience, life-cycle stage, and
characteristics, as well as stages
of the buying decision and channel
strategies.
LO 17-4
Describe the elements of the promotion
decision process.
LO 17-5
Explain the value of direct marketing for
consumers and sellers.
17-3
WHAT ARE THEY SAYING IN THE
TWITTERSPHERE? ¡YO QUIERO TACO BELL!
17-4
LO 17-1

THE COMMUNICATION PROCESS
Promotional Mix
• Inform Prospective Buyers
• Persuade Them To Try
• Remind Them of the Benefits

Integrated Marketing
Communications (IMC)
17-5
FIGURE 17-1 The communication process
consists of six key elements
17-6
LO 17-1
THE COMMUNICATION PROCESS

Communication

Source

Message

Channel of
Communication

Receivers
17-7
THE COMMUNICATION PROCESS
LO 17-1


Field of Experience
Encoding


Feedback


Decoding

Response
Noise
Feedback Loop
17-8
MINI Paceman Ad
LO 17-1
Who is the source? What is the message?
How would you decode this ad?
17-9
FIGURE 17-2 The five elements of the
promotional mix
17-10
LO 17-2
THE PROMOTIONAL ELEMENTS
ADVERTISING

Mass
Selling

Advertising
vs.

Customized
Interaction
• Paid Aspect
• Advantages
• Nonpersonal
• Disadvantages
17-11
LO 17-2
THE PROMOTIONAL ELEMENTS
PERSONAL SELLING

Personal Selling
• Wasted Coverage
• Advantages
• Disadvantages
17-12
LO 17-2
THE PROMOTIONAL ELEMENTS
PUBLIC RELATIONS

Public Relations
• Publicity
• Advantages
• Disadvantages
17-13
LO 17-2
THE PROMOTIONAL ELEMENTS
SALES PROMOTION AND DIRECT MARKETING

Sales Promotion
• Advantages
• Disadvantages

Direct Marketing
• Advantages
• Disadvantages
17-14
LO 17-3
IMC—DEVELOPING THE PROMOTIONAL MIX
THE TARGET AUDIENCE

Determine the Balance of the
Promotional Elements to be Used

Coordinate the Promotional Effort

Assess Target Audience
Characteristics
• Consumers
• Businesses
17-15
MARKETING MATTERS
LO 17-3
How Can You Reach Today’s
College Students? With Mobile Marketing!
17-16
FIGURE 17-3 The product life cycle illustrates
how promotional objectives and activities
change over the four stages
17-17
LO 17-3
IMC—DEVELOPING THE PROMOTIONAL MIX
THE PRODUCT LIFE CYCLE

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage
17-18
LO 17-3
IMC—DEVELOPING THE PROMOTIONAL MIX
PRODUCT CHARACTERISTICS

Complexity

Risk

Ancillary Services
17-19
LO 17-3
IMC—DEVELOPING THE PROMOTIONAL MIX
STAGES OF THE BUYING DECISION

Prepurchase Stage

Purchase Stage

Postpurchase Stage
17-20
FIGURE 17-4 The importance of promotional
elements varies during the stages of the
consumer purchase decision process
17-21
LO 17-3
IMC—DEVELOPING THE PROMOTIONAL MIX
CHANNEL STRATEGIES

Push Strategy

Pull Strategy
• Direct-to-Consumer
17-22
FIGURE 17-5 A comparison of push and pull
promotional strategies
17-23
FIGURE 17-6 The promotion decision process
includes planning, implementation, and
evaluation
17-24
LO 17-4
DEVELOPING AN IMC PROGRAM
THE PROMOTION DECISION PROCESS

The Four “W”s:
• Who is the Target Audience?
• What are the Objectives, Budget, & Tools?
• Where Should the Promotion Be Run?
• When Should the Promotion Be Run?
17-25
LO 17-4
DEVELOPING AN IMC PROGRAM
IDENTIFYING THE TARGET AUDIENCE

Target Audience

Behaviorial Targeting
17-26
LO 17-4
DEVELOPING AN IMC PROGRAM
SPECIFYING THE PROMOTION OBJECTIVES

Hierarchy of Effects
• Awareness
• Trial
• Interest
• Adoption
• Evaluation
17-27
LO 17-4
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
17-28
FIGURE 17-7 U.S. promotion expenditures of
the top 10 companies
17-29
LO 17-4
USING MARKETING DASHBOARDS
How Much Should You Spend on IMC?
Promotion-to-Sales Ratio
17-30
LO 17-4
DEVELOPING AN IMC PROGRAM

Selecting the Right
Promotional Tools

Designing the Promotion

Scheduling the Promotion
17-31
LO 17-4
EXECUTING AND ASSESSING
THE PROMOTION PROGRAM

Pretesting

Posttesting

IMC Audit
17-32
LO 17-5
DIRECT MARKETING

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
17-33
FIGURE 17-8 Business usage and response
rates of popular forms of direct marketing
17-34
LO 17-5
MAKING RESPONSIBLE DECISIONS
What Is the Future of Your Privacy?

Do-Not-Call

Do Not Mail

E-Privacy Directive

Do Not Track
Ad Choices
17-35
VIDEO CASE 17
MOUNTAIN DEW: USING IMC AND SOCIAL MEDIA
TO CREATE AND PROMOTE A NEW FLAVOR
17-36
FIGURE 1 The seven stages of the
DEWmocracy 2 campaign
17-37