MKT 340 Ch14 ppt

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LO1 Discuss integrated marketing communication and the communication process.

Describe the promotional mix andthe uniqueness of each component.LO2

LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO:

Select the promotional approach appropriate to a product’s target audience, life-cycle stage, and channel strategy.

LO3

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LO4 Describe the elements of the promotion decision process.

Explain the value of direct marketing for consumers and sellers.LO5

LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 14, YOU SHOULD BE ABLE TO:

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WHAT ARE THEY SAYING IN THE TWITTERSPHERE? ¡YO QUIERO TACO BELL!

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THE COMMUNICATION PROCESSLO1

Promotional Mix

Integrated Marketing Communications (IMC)

• Inform Prospective Buyers

• Persuade Them To Try

• Remind Them of the Benefits

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FIGURE 14-1 The communication process consists of six key elements

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THE COMMUNICATION PROCESSLO1

Communication

Source

Channel of Communication

Message

Receivers

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MINI Paceman AdWho is the source? What is the message?

How would you decode this ad?

LO1

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MINI Ad

http://kerin.tv/cr6e/v14-1


FIGURE 14-2 The five elements of the promotional mix

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THE PROMOTIONAL ELEMENTSADVERTISING

LO2

MassSelling

CustomizedInteraction

Advertising

• Paid Aspect

• Nonpersonal

vs.

• Advantages

• Disadvantages

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THE PROMOTIONAL ELEMENTSPERSONAL SELLING

LO2

Personal Selling

• Wasted Coverage

• Advantages • Disadvantages

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THE PROMOTIONAL ELEMENTSPUBLIC RELATIONS

LO2

Public Relations

• Publicity

• Advantages • Disadvantages

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McDonald’s Video



THE PROMOTIONAL ELEMENTSSALES PROMOTION AND DIRECT MARKETING

LO2

Sales Promotion

Direct Marketing• Advantages

• Disadvantages

• Advantages

• Disadvantages

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IMC—DEVELOPING THE PROMOTIONAL MIXTHE TARGET AUDIENCE

Determine the Balance of the Elements

Coordinate the Promotional Effort

LO2

Assess Target Audience Characteristics

• Consumers • Businesses

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MARKETING MATTERSHow Can You Reach Today’s College Students?

With Mobile Marketing!

LO2

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Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

IMC—DEVELOPING THE PROMOTIONAL MIXTHE PRODUCT LIFE CYCLE

LO3

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FIGURE 14-3 Promotional tools used over the product life cycle of Purina Dog Chow

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Push Strategy Pull Strategy

• To Consumer

IMC—DEVELOPING THE PROMOTIONAL MIXCHANNEL STRATEGIES

LO3

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• To Channel Members


FIGURE 14-4 A comparison of push and pull promotional strategies

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FIGURE 14-5 The promotion decision process includes planning, implementation, and evaluation

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DEVELOPING AN IMC PROGRAMIDENTIFYING THE TARGET AUDIENCE

LO4

Target Audience

Behaviorial Targeting

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DEVELOPING AN IMC PROGRAMSPECIFYING THE PROMOTION OBJECTIVES

LO4

• Awareness

• Trial

• Interest

• Adoption

• Evaluation

Hierarchy of Effects

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DEVELOPING AN IMC PROGRAMSETTING THE PROMOTION BUDGET

LO4

Percentage of Sales Budgeting

Competitive Parity Budgeting

All-You-Can-Afford Budgeting

Objective and Task Budgeting

• Matching Competitors • Share of Market

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USING MARKETING DASHBOARDSHow Much Should You Spend on IMC?

Promotion-to-Sales Ratio

LO4

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DEVELOPING AN IMC PROGRAMLO4

Designing the Promotion

Selecting the Right Promotional Tools

Scheduling the Promotion

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Olympics video



EXECUTING AND ASSESSINGTHE PROMOTION PROGRAM

LO4

IMC Audit

Pre-testing

Post-testing

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Carat Video



DIRECT MARKETINGLO5

The Value of Direct Marketing

The Growth of Direct Marketing

• Direct Orders

• Traffic Generation

• Lead GenerationPriceline Ad

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DIRECT MARKETINGLO5

Technological, Global andEthical Issues

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Extensive Databases of Customer Profiles

Global Privacy IssuesAd Choices



MAKING RESPONSIBLE DECISIONSWhat Information Should Be Private”

LO5

DMAchoice

Do-Not-Call

Do Not Mail

Do Not Track

E-Privacy Directive

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http://kerin.tv/cr6e/ppt14-1


TACO BELL

VIDEO CASE 14

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Taco BellVideo Case



VIDEO CASE 14TACO BELL

1. What factors contributed to Taco Bell’s early success?

2. Which of the promotional elements described in Figure 14-2 were used by Taco Bell in its Doritos Locos Taco’s campaign?

3. How does Taco Bell ensure the continued success of the food chain?

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AN IMC FOR LAY’S STAX

IN-CLASS ACTIVITY 14-1


ICA 14-1Integrated Marketing Communications

Frito LayWeb site

Example:Integrated Marketing Communications

Plan forLay’s STAX Product Line

Lay’s STAXCommercial





AN IMC FOR ATORO SNOWTHROWER

IN-CLASS ACTIVITY 14-2


ICA 14-2Integrated Marketing Communications

Power MaxVideo

Power MaxWebsite

Example:Integrated Marketing

CommunicationsPlan for Toro

Power Max Snowthrower

Toro PowerMax Ad



http://12e.kerin.tv/ppt17-7



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.

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Integrated Marketing Communications (IMC)

Integrated marketing communications (IMC) is the concept of designing marketing communications programsthat coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.

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Communication

Communication is the processof conveying a message to others and that requires six elements:a source, a message, a channelof communication, a receiver,and the processes of encoding and decoding.

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Advertising

Advertising is any paid formof nonpersonal communicationabout an organization, good, service, or idea by an identified sponsor.

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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.

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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.

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Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service.

Publicity

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Sales Promotion

Sales promotion is a short-term inducement of value offered to arouse interest in buying a good or service.

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Direct Marketing

Direct marketing is a promotion alternative that uses direct communication with consumersto generate a response in theform of an order, a request for further information, or a visit toa retail outlet.

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Push Strategy

A push strategy involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

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Pull Strategy

A pull strategy involves directing the promotional mix at ultimate consumers to encourage themto ask the retailer for a product.

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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.

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Direct Orders

Direct orders is the result of direct marketing offers thatcontain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.

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Lead Generation

Lead generation is the result ofa direct marketing offer designed to generate interest in a productor service and a request for additional information.

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Traffic Generation

Traffic generation is theoutcome of a direct marketing offer designed to motivate people to visit a business.

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