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 and the 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