2011byTheMcGrawHillCompanies,Inc.Allrightsreserved.
LEARNING McGrawHill/IrwinCopyright OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
LO1
LO2
Discuss integrated marketing communication and the
communication process.
Describe the promotional mix and
the uniqueness of each component.
18-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
LO3
Select the promotional approach appropriate to a products
target audience, life-cycle stage, and characteristics, as well
as stages
of the buying decision and channel strategies.
LO4
Describe the elements of the promotion decision process.
LO5
Explain the value of direct marketing for consumers and
sellers.
18-3
INTEGRATED MARKETING COMMUNICATIONS USHERS IN THE AGE OF
ENGAGE
18-4
THE COMMUNICATION PROCESS
LO1
Promotional Mix
Persuade Them To Try
Inform Prospective Buyers
Remind Them of the Benefits
Integrated Marketing
Communications (IMC)
18-5
FIGURE 18-1 The communication process consists of six key
elements
18-6
LO1
THE COMMUNICATION PROCESS
Communication
Source
Message
Channel of
Communication
Receivers
18-7
LO1
THE COMMUNICATION PROCESS
Field of Experience
Encoding
Feedback
Decoding
Response
Noise
Feedback Loop
18-8
LO1
Hummer Print Ad
Who is the source? What is the message?
How would you decode this ad?
18-9
FIGURE 18-2 The five elements of the promotional mix
18-10
THE PROMOTIONAL ELEMENTS
LO2
ADVERTISING
Mass
Selling
Advertising
Paid Aspect
Nonpersonal
Component
vs.
Customized
Interaction
Advantages
Disadvantages
18-11
THE PROMOTIONAL ELEMENTS
LO2
PERSONAL SELLING
Personal Selling
Wasted Coverage
Advantages
Disadvantages
18-12
THE PROMOTIONAL ELEMENTS
LO2
PUBLIC RELATIONS
Public Relations
Publicity
Advantages
Disadvantages
18-13
LO2
THE PROMOTIONAL ELEMENTS
SALES PROMOTION AND DIRECT MARKETING
Sales Promotion
Advantages
Disadvantages
Advantages
Disadvantages
Direct Marketing
18-14
IMCDEVELOPING THE PROMOTIONAL MIX
LO2
THE TARGET AUDIENCE
Determine the Balance of the Elements
Coordinate the Promotional Effort
Assess Target Audience
Characteristics
Consumers
Businesses
18-15
LO3
IMCDEVELOPING THE PROMOTIONAL MIX
THE PRODUCT CYCLE
Introduction LIFE Stage
Growth Stage
Maturity Stage
Decline Stage
18-16
FIGURE 18-3 Promotional tools used over the product life cycle of
Purina Dog Chow
18-17
IMCDEVELOPING THE PROMOTIONAL MIX
LO3
PRODUCT CHARACTERISTICS
Complexity
Risk
Ancillary Services
18-18
LO3
IMCDEVELOPING THE PROMOTIONAL MIX
STAGES OF THE BUYING DECISION
Prepurchase Stage
Purchase Stage
Postpurchase Stage
18-19
FIGURE 18-4 How the importance of promotional elements varies
during the stages of the consumer purchase decision process
18-20
LO3
IMCDEVELOPING THE PROMOTIONAL MIX
CHANNEL STRATEGIES
Push Strategy
Pull Strategy
Direct-to-Consumer
18-21
FIGURE 18-5 A comparison of push and pull promotional strategies
18-22
FIGURE 18-6 The promotion decision process includes planning,
implementation, and evaluation
18-23
DEVELOPING AN IMC PROGRAM
LO4
DEVELOPING THE PROMOTION PROGRAM
The Four Ws:
Who is the Target Audience?
What are the Objectives, Budget, & Tools?
Where Should the Promotion Be Run?
When Should the Promotion Be Run?
18-24
DEVELOPING AN IMC PROGRAM
LO4
SPECIFYING THE PROMOTION OBJECTIVES
Hierarchy of Effects
Awareness
Trial
Interest
Adoption
Evaluation
18-25
DEVELOPING AN IMC PROGRAM
LO4
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
18-26
FIGURE 18-7 U.S. promotion expenditures of the top 10 companies
18-27
LO4
USING MARKETING DASHBOARDS
How Much Should You Spend on IMC?
Promotion-to-Sales Ratio
Total Promotion Expenditures ($)
100
Total Sales ($)
Promotion-to-Sales Ratio (%) =
18-28
LO4
DEVELOPING AN IMC PROGRAM
Selecting the Right
Promotional Tools
Designing the Promotion
Scheduling the Promotion
18-29
LO4
EXECUTING AND ASSESSING
THE PROMOTION PROGRAM
IMC Audit
Pretesting
Posttesting
18-30
DIRECT MARKETING
LO5
The Growth of Direct Marketing
The Value of Direct Marketing
Lead Generation
Direct Orders
Traffic Generation
Technological, Global and
Ethical Issues in Direct Marketing
18-31
FIGURE 18-8 Business usage and response rates of popular forms
of direct marketing
18-32