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 18-6
FIGURE 18-1 The communication process

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-7

 THE COMMUNICATION PROCESS

Encoding and Decoding

Encoding
Decoding
Field of Experience

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

 THE COMMUNICATION PROCESS

Feedback
Feedback Loop
Response
Feedback
Pretesting
Noise

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

FIGURE 18-2 The promotional mix

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

 THE PROMOTIONAL ELEMENTS

Advertising
Paid Aspect
Nonpersonal Component
Personal Selling
Wasted Coverage

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

 THE PROMOTIONAL ELEMENTS

Public Relations
Public Relations
Publicity
Sales Promotion
Direct Marketing

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

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

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

 INTEGRATED MARKETING
COMMUNICATIONSDEVELOPING
THE PROMOTIONAL MIX

The Target Audience

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

 INTEGRATED MARKETING
COMMUNICATIONSDEVELOPING
THE PROMOTIONAL MIX

The Product Life Cycle

Introduction Stage
Growth Stage
Maturity Stage
Decline Stage

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

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

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-28

 INTEGRATED MARKETING
COMMUNICATIONSDEVELOPING
THE PROMOTIONAL MIX

Product Characteristics
Complexity
Risk
Ancillary Services

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

 INTEGRATED MARKETING
COMMUNICATIONSDEVELOPING
THE PROMOTIONAL MIX

Stages of the Buying Process

Prepurchase Stage
Purchase Stage
Postpurchase Stage

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

FIGURE 18-4 How the importance of
promotional elements varies during the
stages of consumers purchase decision

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-33

 INTEGRATED MARKETING
COMMUNICATIONSDEVELOPING
THE PROMOTIONAL MIX

Channel Strategies
Push Strategy
Pull Strategy
Direct-to-Consumer

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-34

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

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-35

 DEVELOPING AN IMC PROGRAM

Identifying the Target Audience

Specifying Promotion Objectives
Hierarchy of Effects
Awareness
Interest

Evaluation

Trial
Adoption

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

FIGURE 18-6 The promotion decision
process

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

 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 18-45

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

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-46

FIGURE 18-8 The objective and task
approach

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

 DEVELOPING AN IMC PROGRAM

Selecting the Right Promotional Tools

Designing the Promotion
Scheduling the Promotion

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

 DIRECT MARKETING

The Growth of Direct Marketing

The Value of Direct Marketing
Direct Orders
Lead Generation
Traffic Generation
Technological, Global, and
Ethical Issues in Direct Marketing

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

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

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

 ETHICS AND SOCIAL
RESPONSIBILITY ALERT
How Do You Like Your E-Mail? Opt-
out or Opt-in Are Your Choices

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 18-58