© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-6

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 18-7

FIGURE 18-1 FIGURE 18-1 The communication process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-8

THE COMMUNICATION PROCESS

• Encoding and Decoding

Encoding

Decoding

Field of Experience

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-10

THE COMMUNICATION PROCESS

• Feedback

Response

Feedback

• Noise

Pretesting

Feedback Loop

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-15

FIGURE 18-2 FIGURE 18-2 The promotional mix

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-16

THE PROMOTIONAL ELEMENTS

• Advertising

Paid Aspect

Nonpersonal Component

Wasted Coverage

• Personal Selling

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-18

THE PROMOTIONAL ELEMENTS

• Public Relations

Public Relations

Publicity

• Sales Promotion

• Direct Marketing

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-23

FIGURE 18-A FIGURE 18-A Factors that influence the use of promotional tools

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-24

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING

THE PROMOTIONAL MIX

• The Target Audience

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-27

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 18-28

FIGURE 18-3 FIGURE 18-3 Promotional tools used over the product life cycle of Purina Dog Chow

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-30

INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING

THE PROMOTIONAL MIX

• Product Characteristics

Complexity

Risk

Ancillary Services

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-32

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 18-33

FIGURE 18-4 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 18-34

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 18-35

FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-41

DEVELOPING AN IMC PROGRAM

• Identifying the Target Audience

Hierarchy of Effects

• Awareness

• Interest

• Specifying Promotion Objectives

• Evaluation

• Trial

• Adoption

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-42

FIGURE 18-6 FIGURE 18-6 The promotion decision process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-45

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 18-46

FIGURE 18-7 FIGURE 18-7 U.S. promotion expenditures by companies in 2003

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-47

FIGURE 18-8 FIGURE 18-8 The objective and task approach

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-48

DEVELOPING AN IMC PROGRAM

• Selecting the Right Promotional Tools

• Designing the Promotion

• Scheduling the Promotion

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-55

DIRECT MARKETING

• The Growth of Direct Marketing

Direct Orders

• The Value of Direct Marketing

Lead Generation

Traffic Generation

• Technological, Global, andEthical Issues in Direct Marketing

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-56

FIGURE 18-9 FIGURE 18-9 Direct marketing expenditures, sales, and employment by medium

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ETHICS AND SOCIAL RESPONSIBILITY ALERT

How Do You Like Your E-Mail? “Opt-out” or “Opt-in” Are Your Choices

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