Chapter 17 provides knowledge of integrated marketing communications and direct marketing. This chapter 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.
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved 17-1 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO: LO1 Discuss integrated marketing communication and the communication process LO2 Describe the promotional mix and the uniqueness of each component 17-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO: LO3 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 LO4 Describe the elements of the promotion decision process LO5 Explain the value of direct marketing for consumers and sellers 17-3 GET ENGAGED…IN THE TWITTERVERSE! Age of Engagement 17-4 LO1 THE COMMUNICATION PROCESS Promotional Mix • Inform Prospective Buyers • Persuade Them To Try • Remind Them of the Benefits Integrated Marketing Communications (IMC) 17-5 FIGURE 17-1 The communication process consists of six key elements 17-6 LO1 THE COMMUNICATION PROCESS Communication Source Message Channel of Communication Receivers 17-7 THE COMMUNICATION PROCESS LO1 Field of Experience Encoding Feedback Decoding Response Noise Feedback Loop 17-8 LO1 The North Face Ad Who is the source? What is the message? How would you decode this ad? 17-9 FIGURE 17-2 The five elements of the promotional mix 17-10 Personal Selling Personal selling consists of the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision 17-55 Public Relations Public relations is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services 17-56 Publicity Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service 17-57 Sales Promotion Sales promotion is a short-term inducement of value offered to arouse interest in buying a good or service 17-58 Direct Marketing Direct marketing is a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet 17-59 Push Strategy A push strategy involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product 17-60 Pull Strategy A pull strategy involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product 17-61 Hierarchy of Effects The hierarchy of effects is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product) The stages include awareness, interest, evaluation, trial, and adoption 17-62 Percentage of Sales Budgeting Percentage of sales budgeting involves allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold 17-63 Competitive Parity Budgeting Competitive parity budgeting involves allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share Also called matching competitors or share of market 17-64 All-You-Can-Afford Budgeting All-you-can-afford budgeting involves allocating funds to promotion only after all other budget items are covered 17-65 Objective and Task Budgeting Objective and task budgeting involves allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks 17-66 Direct Orders Direct orders is the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction 17-67 Lead Generation Lead generation is the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information 17-68 Traffic Generation Traffic generation is the outcome of a direct marketing offer designed to motivate people to visit a business 17-69 ... READING CHAPTER 17, YOU SHOULD BE ABLE TO: LO1 Discuss integrated marketing communication and the communication process LO2 Describe the promotional mix and the uniqueness of each component 17- 2... Try • Remind Them of the Benefits Integrated Marketing Communications (IMC) 17- 5 FIGURE 17- 1 The communication process consists of six key elements 17- 6 LO1 THE COMMUNICATION PROCESS Communication... Disadvantages 17- 13 LO2 THE PROMOTIONAL ELEMENTS SALES PROMOTION AND DIRECT MARKETING Sales Promotion • Advantages • Disadvantages Direct Marketing • Advantages • Disadvantages 17- 14 LO2 IMC—DEVELOPING