© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTEGRATED MARKETING COMMUNICATIONS AND...

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

INTEGRATED MARKETING

COMMUNICATIONS AND DIRECT MARKETING

1818CHAPTER

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Explain the communications process and its elements.

• Understand the promotional mix and the uniqueness of each component.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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• Select the promotional approach appropriate to a product’s life-cycle stage and characteristics.

• Differentiate between the advantages of push and pull strategies.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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• Appreciate the value of an integrated marketing communications approach

• Understand the value of direct marketing for consumers and sellers.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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INTEGRATED MARKETING COMMUNICATIONS MAKE MAGIC AT DISNEY

INTEGRATED MARKETING COMMUNICATIONS AND

DIRECT MARKETING

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Communications Source Message Channel of Communication Receivers

THE COMMUNICATIONS PROCESS

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• Encoding and Decoding Field of experience

• Feedback Response

• Noise

THE COMMUNICATIONS PROCESS

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Concept Check

1. What are the six elements required for communication to occur?

A: Source, receiver, message, channel of communication, encoding, and decoding

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2. A difficulty for U.S. companies advertising in international markets is that the audience does not share the same ________________.field of experience

Concept Check

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3. A misprint in a newspaper ad is an example of _____.noise

Concept Check

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• Advertising

• Personal Selling

• Public Relations Publicity

• Sales Promotion

• Direct Marketing

THE PROMOTIONAL ELEMENTS

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Concept Check

1. Explain the difference between advertising and publicity when both appear on television.

A: Advertising space is paid for; thus the company controls what is said and when. This control does not exist with publicity since the company does not directly pay for the TV coverage.

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Concept Check

2. Which promotional element should be offered only on a short-term basis?

A: Sales promotion

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3. Cost per contact is high with the ______________ element of the

promotional mix.

personal selling

Concept Check

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• The Target Audience

• The Product Life Cycle• Introduction Stage

• Growth Stage

• Maturity Stage

• Decline Stage

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING

THE PROMOTIONAL MIX

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• Product Characteristics

• Stages of the Buying Decision• Prepurchase Stage

• Purchase Stage

• Postpurchase Stage

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING

THE PROMOTIONAL MIX

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• Channel Strategies• Push Strategy

• Pull Strategy

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING

THE PROMOTIONAL MIX

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• Integrated Marketing Communications

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING

THE PROMOTIONAL MIX

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Concept Check

1. For consumer products, why is advertising emphasized more than personal selling?

A: There is a large number of buyers.

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Concept Check

2. Explain the differences between a push strategy and a pull strategy.

A: In a push strategy, promotion is used to move the product through the channel by directing promotional activities at channel members. In a pull strategy, promotion stimulates end user demand to pull the product through the channel.

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3. Integrated marketing communi- cations programs provide a _________ message across all audiences.

consistent

Concept Check

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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?

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• Identifying the Target Audience

• Specifying Promotion Objectives Hierarchy of effects

• Setting the Promotion Budget

DEVELOPING THE PROMOTION PROGRAM

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• Setting the Promotion Budget (cont)• Percentage of Sales

• Competitive Parity

• All You Can Afford

• Objective and Task

DEVELOPING THE PROMOTION PROGRAM

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• Selecting the Right Promotional Tools

• Designing the Promotion

• Scheduling the Promotion

• EXECUTING AND EVALUATING THE PROMOTION PROGRAM

DEVELOPING THE PROMOTION PROGRAM

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EXECUTING AND EVALUATING THE PROMOTION PROGRAM

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Concept Check

1. What are the characteristics of good promotions objectives?

A: They should (1) be designed for a well-defined target audience, (2) be measurable, and (3) cover a specified time period.

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Concept Check

2. What are the weaknesses of the percentage of sales budgeting approach?

A: It implies that sales cause promotions; may cause a lag in budgets that are based on previous year’s figures, e.g. a low sales year would result in low advertising the next year when it should perhaps be higher; fails to consider the importance of promotion and company objectives.

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Concept Check

3. How have advertising agencies changed to facilitate the use of IMC programs?

A: Agencies such as J. Walter Thompson design integrated programs for a company. Although many agencies still have departments such as direct marketing, the trend is clearly toward a long-term perspective in which all forms of promotion are integrated.

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• The Growth of Direct Marketing

DIRECT MARKETING

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• The Value of Direct Marketing Direct orders Lead generation Traffic generation

• Technological, Global, and Ethical Issues in Direct Marketing

DIRECT MARKETING

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1. The ability to design and use direct marketing programs has increased with the availability of __________ and _________.computers

Concept Check

databases

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Concept Check

2. What are the three types of responses generated by direct marketing activities?

A: Direct orders, lead generation, traffic generation