Transcript IPPTChap014m - Cal State LA
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO:
LO1 LO2
Discuss integrated marketing communication and the communication process.
Describe the promotional mix and the uniqueness of each component.
LO3
Select the promotional approach appropriate to a product’s target audience, life-cycle stage, and channel strategy.
14-2
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO:
LO4 LO5
Describe the elements of the promotion decision process.
Explain the value of direct marketing for consumers and sellers.
14-3
GET ENGAGED…IN THE TWITTERVERSE!
14-4
LO1
THE COMMUNICATION PROCESS
•
Inform Prospective Buyers
•
Persuade Them To Try
•
Remind Them of the Benefits
Integrated Marketing Communications (IMC)
14-5
FIGURE 14-1
The communication process consists of six key elements
14-6
LO1
THE COMMUNICATION PROCESS
Source
Message
Channel of Communication
Receivers
14-7
LO1
THE COMMUNICATION PROCESS
Field of Experience
Encoding
Decoding
Noise
Feedback
Response
Feedback Loop
14-8
LO1
The North Face Ad Who is the source? What is the message?
How would you decode this ad?
14-9
FIGURE 14-2
The five elements of the promotional mix
14-10
LO2
THE PROMOTIONAL ELEMENTS ADVERTISING Mass Selling vs.
Customized Interaction
•
Paid Aspect
•
Nonpersonal
•
Advantages
•
Disadvantages
14-11
LO2
THE PROMOTIONAL ELEMENTS PERSONAL SELLING
•
Wasted Coverage
•
Advantages
•
Disadvantages
14-12
LO2
THE PROMOTIONAL ELEMENTS PUBLIC RELATIONS
•
Advantages
•
Disadvantages
14-13
LO2
THE PROMOTIONAL ELEMENTS SALES PROMOTION AND DIRECT MARKETING
•
Advantages
•
Disadvantages
•
Advantages
•
Disadvantages
14-14
LO2
IMC —DEVELOPING THE PROMOTIONAL MIX THE TARGET AUDIENCE
Determine the Balance of the Elements
Coordinate the Promotional Effort
Assess Target Audience Characteristics
•
Consumers
•
Businesses
14-15
LO2
MARKETING MATTERS How Can You Reach Generation Y?
With Mobile Marketing!
14-16
LO3
IMC —DEVELOPING THE PROMOTIONAL MIX THE PRODUCT LIFE CYCLE
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
14-17
FIGURE 14-3
Promotional tools used over the product life cycle of Purina Dog Chow
14-18
LO3
IMC —DEVELOPING THE PROMOTIONAL MIX CHANNEL STRATEGIES
•
Direct-to-Consumer
14-19
FIGURE 14-4
A comparison of push and pull promotional strategies
14-20
FIGURE 14-5
process includes planning, implementation, and evaluation The promotion decision
14-21
LO4
DEVELOPING AN IMC PROGRAM IDENTIFYING THE TARGET AUDIENCE
Target Audience
Behaviorial Targeting
14-22
LO4
DEVELOPING AN IMC PROGRAM SPECIFYING THE PROMOTION OBJECTIVES
•
Awareness
•
Interest
•
Trial
•
Adoption
•
Evaluation
14-23
LO4
DEVELOPING AN IMC PROGRAM 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
14-24
LO4
USING MARKETING DASHBOARDS How Much Should You Spend on IMC?
Promotion-to-Sales Ratio Promotion-to-Sales Ratio (%) =
Total Promotion Expenditures ($)
Total Sales ($)
100
14-25
LO4
DEVELOPING AN IMC PROGRAM
Selecting the Right Promotional Tools
Designing the Promotion
Scheduling the Promotion
14-26
LO4
EXECUTING AND ASSESSING THE PROMOTION PROGRAM
Pretesting
Posttesting
IMC Audit
14-27
LO5
DIRECT MARKETING
The Growth of Direct Marketing
The Value of Direct Marketing
Priceline Ad
Technological, Global and Ethical Issues in Direct Marketing
14-28
LO5
MAKING RESPONSIBLE DECISIONS What Information Should Be Private”
Do-Not-Call
Do Not Mail
E-Privacy Directive
Do Not Track DMA
14-29
VIDEO CASE
14 MOUNTAIN DEW: USING IMC AND SOCIAL MEDIA TO CREATE AND PROMOTE A NEW FLAVOR
14-30
FIGURE 1
The seven stages of the Dewmocracy 2 campaign
14-31
VIDEO CASE 14 MOUNTAIN DEW
1.
What changes in the environment provided the opportunity for the Dewmocracy approach?
14-32
VIDEO CASE 14 MOUNTAIN DEW
2.
Which of the promotional elements described in Figure 14-2 are used by Mountain Dew in its Dewmocracy 2 campaign?
14-33
VIDEO CASE 14 MOUNTAIN DEW
3.
What are some of the different ways Mountain Dew can assess the success of its campaign?
14-34
Promotional Mix
The
promotional mix
is the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.
14-35
Integrated Marketing Communications (IMC) Integrated marketing communications (IMC)
is the concept of designing marketing communications programs that coordinate all promotional activities — advertising, personal selling, sales promotion, public relations, and direct marketing —to provide a consistent message across all audiences.
14-36
Communication
Communication
and decoding.
is the process of conveying a message to others and that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding 14-37
Advertising
Advertising
sponsor.
is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified 14-38
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.
14-39
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.
14-40
Publicity
Publicity
is a nonpersonal, indirectly paid presentation of an organization, good, or service.
14-41
Sales Promotion
Sales promotion
or service.
is a short-term inducement of value offered to arouse interest in buying a good 14-42
Direct Marketing
Direct marketing
a retail outlet.
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 14-43
Push Strategy
A
push strategy
involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
14-44
Pull Strategy
A
pull strategy
involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
14-45
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.
14-46
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.
14-47
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.
14-48
Traffic Generation
Traffic generation
to visit a business.
is the outcome of a direct marketing offer designed to motivate people 14-49