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Page 1: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-1

Page 2: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-2

Integrated Marketing

Communications

Chapter 17Chapter 17Chapter 17Chapter 17

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 3: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-3

Chapter GoalsChapter GoalsChapter GoalsChapter Goals

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Role of promotion• Forms of promotion• Concept of integrated marketing communications• How the process of communicating relates to

effective promotion• Key consideration in developing a promotion mix• alternative promotional budgeting methods• Major types of promotion regulation

Page 4: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-4

Promotion in MarketingPromotion in Marketing

Use communication to influencethe awareness, feelings,

beliefs and behaviorof prospective customers

Use communication to influencethe awareness, feelings,

beliefs and behaviorof prospective customers

Page 5: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-5

Goal of PromotionGoal of Promotion

The Goal of Promotion is to Change the Pattern of Demand for a Product.

Page 6: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-6

Role of Promotion in MarketingRole of Promotion in Marketing

Promotion and

Imperfect Competition

Promotion and

Imperfect Competition

Promotion and

Marketing

Promotion and

MarketingPersuading

Informing

Reminding

Page 7: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-7

Promotion MethodsPromotion Methods

Personal Selling

Advertising

Direct presentationFace-to-face

or phoneMost money spent

NonpersonalPaid

SponsorPromotion

Page 8: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-8

Promotion MethodsPromotion Methods

Sales Promotion

Public Relations

SponsoredDemand stimulation

IncentivesTrade promotions

Variety of communication effortsContribute to generally

Favorable attitudesNo specific sales message

Publicity

Page 9: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-9

Integrated Marketing Integrated Marketing CommunicationsCommunications

A strategic business process

used to plan, develop, execute, and evaluate

Coordinated communication

with an organization’s public

Page 10: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-10

IMC ElementsIMC Elements

Awareness of audience’s information sources

Understanding of audience’s knowledge and beliefs

Mix of promotional tools linked to common goal

Promotional effort coordinated to communicatea consistent message

Timed, continuous flow of information

Page 11: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-11

Implementing IMCImplementing IMC

Coordinated to accomplish

objectives

Coordinated to accomplish

objectives

Advertising SalesPromotion

PersonalSelling

PublicRelations

DirectMarketing

Page 12: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-12

Evaluating IMCEvaluating IMC

Action: usage or responses

Interest in a product orbrand

Examine resultsExamine results

Awareness of companyor brand

Page 13: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-13

Barriers to IMCBarriers to IMC

Departmentalbarriers

MarketingCommunications

Manager

ResistanceTo alternatives

Page 14: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-14

Communication ProcessCommunication Process

Page 15: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-15

Determining the Promotional MixDetermining the Promotional Mix

STRATEGIC DECISIONS

Available money

Product Life Cycle Stage

Nature of product

Promotion Objectives

Target Audience

Page 16: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-16

Push and Pull StrategiesPush and Pull Strategies

Page 17: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-17

Promotion ObjectivesPromotion Objectives

Hierarchy of Objectives

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Page 18: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-18

Nature of the ProductNature of the Product

Degrees of Customization

Presale andPostsale Service

Unit Value

Page 19: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-19

Product Life CycleProduct Life Cycle

Page 20: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-20

The Promotion BudgetThe Promotion Budget

Percentageof

Sales

Taskor

Objective

FollowingCompetition

AllAvailable

Funds

Page 21: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-21

Regulation of PromotionRegulation of Promotion

FederalTrade

CommissionAct

TrademarkLaw Revision

Act

Lanham Trademark

Act

Wheeler- LeaAmendment

Robinson-Patman

Act

TelephoneConsumerProtection

Act

FEDERAL

Page 22: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-22

Regulation of PromotionRegulation of Promotion

STATE AND LOCALSTATE AND LOCAL

GreenRiver

Ordinance

NationalAdvertising

Division

Printers’ Ink

Statutes

Council ofBetter

BusinessBureaus

Children’sAdvertising

ReviewUnit

PRIVATE ORGANIZATIONSPRIVATE ORGANIZATIONS

Page 23: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-23

Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Promotion

• Personal selling

• Advertising

• Sales promotion

• Public relations

• Integrated marketing communications

• Communication

• Promotion mix

• Push strategy

• Pull strategy

• Hierarchy of effects

• Viral marketing

• Promotional budgeting methods

• Federal Trade Commission Act

• Wheeler-Lea Amendment

• Robinson-Patman Act

Page 24: 17-1. 17-2 Integrated Marketing Communications Chapter 17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved

17-24

Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Lanham Trademark Act

• Trademark Law Revision Act

• Telephone Consumer Protection Act

• Printers’ Ink statures

• Green River ordinance