Lecture Marketing (12/e): Chapter 17 – Kerin, Hartley, Rudelius

Chapter 17 - Integrated marketing communications and direct marketing. After reading chapter 17, you should be able to: Discuss integrated marketing communication and the communication process; describe the promotional mix andthe uniqueness of each component; select the promotional approach appropriate to a product’s target audience, life-cycle stage, and channel strategy

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO: LO 17-1 Discuss integrated marketing communication and the communication process LO 17-2 Describe the promotional mix and the uniqueness of each component 17­2 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 17­3 WHAT ARE THEY SAYING IN THE TWITTERSPHERE? ¡YO QUIERO TACO BELL! 17­4 THE COMMUNICATION PROCESS LO 17-1   Promotional Mix • Inform Prospective Buyers • Persuade Them To Try • Remind Them of the Benefits Integrated Marketing Communications (IMC) 17­5 FIGURE 17-1 The communication process consists of six key elements 17­6 LO 17-1 THE COMMUNICATION PROCESS  Communication  Source  Message  Channel of Communication  Receivers 17­7 THE COMMUNICATION PROCESS LO 17-1   Field of Experience Encoding   Feedback   Decoding  Response Noise Feedback Loop 17­8 MINI Paceman Ad LO 17-1 Who is the source? What is the message? How would you decode this ad? 17­9 FIGURE 17-2 The five elements of the promotional mix 17­10 FIGURE 17-5 A comparison of push and pull promotional strategies 17­23 FIGURE 17-6 The promotion decision process includes planning, implementation, and evaluation 17­24 DEVELOPING AN IMC PROGRAM LO 17-4  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? 17­25 LO 17-4 DEVELOPING AN IMC PROGRAM IDENTIFYING THE TARGET AUDIENCE  Target Audience  Behaviorial Targeting 17­26 DEVELOPING AN IMC PROGRAM LO 17-4  SPECIFYING THE PROMOTION OBJECTIVES Hierarchy of Effects • Awareness • Trial • Interest • Adoption • Evaluation 17­27 DEVELOPING AN IMC PROGRAM LO 17-4 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 17­28 FIGURE 17-7 U.S promotion expenditures of the top 10 companies 17­29 LO 17-4 USING MARKETING DASHBOARDS How Much Should You Spend on IMC? Promotion-to-Sales Ratio 17­30 LO 17-4 DEVELOPING AN IMC PROGRAM  Selecting the Right Promotional Tools  Designing the Promotion  Scheduling the Promotion 17­31 LO 17-4 EXECUTING AND ASSESSING THE PROMOTION PROGRAM  Pretesting  Posttesting  IMC Audit 17­32 DIRECT MARKETING LO 17-5  The Growth of Direct Marketing  The Value of Direct Marketing  • Direct Orders • Lead Generation • Traffic Generation Priceline Ad Technological, Global and Ethical Issues in Direct Marketing 17­33 FIGURE 17-8 Business usage and response rates of popular forms of direct marketing 17­34 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 17­35 VIDEO CASE 17 MOUNTAIN DEW: USING IMC AND SOCIAL MEDIA TO CREATE AND PROMOTE A NEW FLAVOR 17­36 FIGURE The seven stages of the DEWmocracy campaign 17­37 ... 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... Disadvantages 17 13 LO 17- 2   THE PROMOTIONAL ELEMENTS SALES PROMOTION AND DIRECT MARKETING Sales Promotion • Advantages • Disadvantages • Advantages • Disadvantages Direct Marketing 17 14 LO 17- 3 IMC—DEVELOPING... 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