Download The promotional mix

THE COMMUNICATION PROCESS
• Promotional Mix
• Integrated Marketing Communications
(IMC)
• Communication
• Source
• Message
• Channel of Communication
• Receivers
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-6
FIGURE 18-1 The communication process
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-7
THE COMMUNICATION PROCESS
• Encoding and Decoding
 Encoding
 Decoding
 Field of Experience
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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THE COMMUNICATION PROCESS
• Feedback
 Feedback Loop
 Response
 Feedback
 Pretesting
• Noise
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-10
FIGURE 18-2 The promotional mix
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-15
THE PROMOTIONAL ELEMENTS
• Advertising
 Paid Aspect
 Nonpersonal Component
• Personal Selling
 Wasted Coverage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-16
THE PROMOTIONAL ELEMENTS
• Public Relations
 Public Relations
 Publicity
• Sales Promotion
• Direct Marketing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-18
FIGURE 18-A Factors that influence the use
of promotional tools
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-23
INTEGRATED MARKETING
COMMUNICATIONS—DEVELOPING
THE PROMOTIONAL MIX
• The Target Audience
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-24
INTEGRATED MARKETING
COMMUNICATIONS—DEVELOPING
THE PROMOTIONAL MIX
• The Product Life Cycle
 Introduction Stage
 Growth Stage
 Maturity Stage
 Decline Stage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-27
FIGURE 18-3 Promotional tools used over
the product life cycle of Purina Dog Chow
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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INTEGRATED MARKETING
COMMUNICATIONS—DEVELOPING
THE PROMOTIONAL MIX
• Product Characteristics
 Complexity
 Risk
 Ancillary Services
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-30
INTEGRATED MARKETING
COMMUNICATIONS—DEVELOPING
THE PROMOTIONAL MIX
• Stages of the Buying Process
 Prepurchase Stage
 Purchase Stage
 Postpurchase Stage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-32
FIGURE 18-4 How the importance of
promotional elements varies during the
stages of consumer’s purchase decision
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-33
INTEGRATED MARKETING
COMMUNICATIONS—DEVELOPING
THE PROMOTIONAL MIX
• Channel Strategies
 Push Strategy
 Pull Strategy
• Direct-to-Consumer
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-34
FIGURE 18-5 A comparison of push and pull
promotional strategies
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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DEVELOPING AN IMC PROGRAM
• Identifying the Target Audience
• Specifying Promotion Objectives
 Hierarchy of Effects
• Awareness
• Interest
• Evaluation
• Trial
• Adoption
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-41
FIGURE 18-6 The promotion decision
process
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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DEVELOPING AN IMC PROGRAM
• Setting the Promotion Budget
 Percentage of Sales Budgeting
 Competitive Parity Budgeting (Matching
Competitors or Share of Market)
 All-You-Can-Afford Budgeting
 Objective and Task Budgeting
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-45
FIGURE 18-7 U.S. promotion expenditures
by companies in 2003
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-46
FIGURE 18-8 The objective and task
approach
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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DEVELOPING AN IMC PROGRAM
• Selecting the Right Promotional Tools
• Designing the Promotion
• Scheduling the Promotion
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 18-55
FIGURE 18-9 Direct marketing expenditures,
sales, and employment by medium
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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ETHICS AND SOCIAL
RESPONSIBILITY ALERT
How Do You Like Your E-Mail? “Optout” or “Opt-in” Are Your Choices
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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