Chapter 13

Promotion–
Introduction to
Integrated Marketing
Communication

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 At the end of this presentation, you
should be able to:
1. know the advantages and disadvantages of the
promotion methods a marketing manager can use in
strategy planning.
2. understand the integrated marketing communications
concept and why firms use a blend of different
promotion methods.
3. understand the importance of promotion objectives.
4. know how the traditional communication process
affects promotion planning.
5. understand how customer-initiated interactive
communication is different.
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13-2
 At the end of this presentation, you
should be able to:
6. know how typical promotion plans are blended
to get an extra push from wholesalers and
retailers, as well as help from customers in
pulling products through the channel.
7. understand how promotion blends typically vary
over the adoption curve and product life cycle.
8. understand how to determine how much to spend
on promotion efforts.
9. understand important new terms.
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13-3
 Promotion and Marketing Strategy
Planning (Exhibit 13-1)

CH 13: CH 14: CH 15:

CH 16: Publicity:
Promotion Intro Personal Advertising,
Promotion Using
to Integrated Selling and Publicity, &
Owned, Earned,
Marketing Customer Sales
and Social Media
Communications Service Promotion

Promotion Managing Effective Blending

methods promotion communication promotion

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 Personal selling—flexibility is its
strength

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 Several Promotion Methods Are
Available
Personal Selling

Mass Selling
Different
Methods of
Promotion Advertising Publicity

Sales Promotion

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 Someone Must Plan, Integrate, and Manage
the Promotion Blend
Advertising
Sales Managers
Managers

Integrated
Marketing
Communications

Marketing Sales Promotion

Managers Managers
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 Which Method to Use Depends on
Promotion Objectives
Informing

Persuading

Reminding

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 Reminding May Be Enough

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 Objectives drive promotion

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 Relation of Promotion Objectives, Adoption
Process, and AIDA Model(Exhibit 13-2)

Promotion Adoption AIDA Model

Objectives Process

Informing { Awareness
Interest
Attention
Interest

}
Evaluation
Persuading Desire
Trial

}
Decision
Reminding Action
Confirmation

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 The Traditional Communication
Process (Exhibit 13-3)
Source Feedback

Encoding
Noise
Message
channel

Decoding

Receiver

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 This Same Message May Be Interpreted
Differently(Exhibit 13-4)

Encoder

Common
frame of
reference
Decoder

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 Checking Your Knowledge
Ron Popeil has been a pioneer in the use of direct-response
television “infomercials.” Over the years his infomercials have
promoted many products, including the Showtime Rotisserie
Barbecue, a food dehydrating machine, and the world-famous “Veg-
O-Matic.” The chief advantage of the infomercial is that it provides
plenty of time to describe and demonstrate a product’s benefits in
detail. The choice of the infomercial is related mainly to the
_________ element of the communication process.

A. message channel
B. encoding
C. decoding
D. feedback
E. noise
13-14
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 Encoding and Decoding

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 Feedback

Integrated Direct-
response Promotion

Targeted Direct-
response Promotion

Outbound
Promotion
Model
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 A Model of Customer-Initiated Interactive
Communication (Exhibit 13-5)
Receiver
(customer)

Source’s
Search
message Noise

Select a Message
topic channel

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 Ethical Issues in Promotion

Source credibility

Promotion
frequently
dances on Exaggerated claims
ethical
boundaries

Invading consumer
privacy

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 Pushing in the Channel Focuses Promotion at
Intermediaries (Exhibit 13-6)
Producer’s promotion blend
Personal selling, sales promotion, advertising,
and publicity

Promotion to channel members

Wholesalers’ Wholesalers’
Promotion
Promotion promotion promotion
to final
to business push push customers
customers

Retailers’
promotion
push

Business Final
customers consumers
request (pull)
Customers request (pull)
product product
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 An Example of Pushing and Pulling

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 Checking Your Knowledge
Fido, Inc. is a producer of dog food and is getting ready to introduce
a new brand. The firm’s marketing research department learns that a
competitor is planning to launch another brand about two weeks after
Fido’s launch. Fido’s marketing department quickly mails a set of
dated coupons to several thousand consumers in a purchased database
of dog owners, encouraging them to ask for the new Fido brand in
their favorite store and to stock up on the new brand using the
coupons. This is an example of:

A. pulling.
B. noise.
C. pushing.
D. encoding.
E. decoding.
13-21
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 The Adoption Curve (Exhibit 13-7)

Innovators Early Early Late Laggards or

(3–5%) adopters majority majority nonadopters
(10–15%) (34%) (34%) (5–16%)
Percent adoption

90

50

20
5
Time

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 Opinion Leaders Matter

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 Stimulating Adoption of an Image

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 Promotion Varies Over the Life Cycle

“This new “Our brand is “Our brand is Reminder:

idea is good” best” better, really” “Stick with
our brand.”
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 Setting the Promotion Budget

Percentage of Sales

Task Method

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 Key Terms
1. promotion 11. integrated marketing
2. personal selling communications
3. mass selling 12. AIDA model
4. advertising 13. communication process
5. publicity 14. source
6. sales promotion 15. receiver
7. sales managers 16. noise
8. advertising managers 17. encoding
9. public relations 18. decoding
10. sales promotion 19. message channel
managers 20. pushing

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 Key Terms

21. pulling
22. adoption curve
23. innovators
24. early adopters
25. early majority
26. late majority
27. laggards
28. nonadopters
29. primary demand
30. selective demand
31. task method
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