Lecture Marketing (11/e): Chapter 17 – Kerin, Hartley, Rudelius

McGraw­Hill/Irwin                                                                                                                                                    Copyright  © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.

17-1


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:

LO1

Discuss integrated marketing
communication and the
communication process.

LO2

Describe the promotional mix and
the uniqueness of each component.

17-2


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:

LO3

Select the promotional approach
appropriate to a product’s target
audience, life-cycle stage, and
characteristics, as well as stages

of the buying decision and channel
strategies.

LO4

Describe the elements of the
promotion decision process.

LO5

Explain the value of direct marketing
for consumers and sellers.
17-3


GET ENGAGED…IN THE TWITTERVERSE!



Age of
Engagement

17-4


LO1



THE COMMUNICATION PROCESS

Promotional Mix
• Inform Prospective Buyers
• Persuade Them To Try
• Remind Them of the Benefits



Integrated Marketing
Communications (IMC)
17-5


FIGURE 17-1 The communication process
consists of six key elements

17-6


LO1

THE COMMUNICATION PROCESS



Communication



Source



Message



Channel of
Communication



Receivers

17-7


THE COMMUNICATION PROCESS

LO1





Field of Experience

Encoding




Feedback




Decoding



Response

Noise

Feedback Loop
17-8


LO1

The North Face Ad
Who is the source? What is the message?
How would you decode this ad?

17-9


FIGURE 17-2 The five elements of the
promotional mix

17-10


THE PROMOTIONAL ELEMENTS

LO2

ADVERTISING



Mass
Selling



Advertising

vs.



Customized
Interaction

• Paid Aspect

• Advantages

• Nonpersonal

• Disadvantages
17-11


LO2



THE PROMOTIONAL ELEMENTS
PERSONAL SELLING

Personal Selling
• Wasted Coverage

• Advantages

• Disadvantages
17-12


LO2



THE PROMOTIONAL ELEMENTS
PUBLIC RELATIONS

Public Relations

• Publicity

• Advantages

• Disadvantages
17-13


LO2



THE PROMOTIONAL ELEMENTS
SALES PROMOTION AND DIRECT MARKETING

Sales Promotion
• Advantages
• Disadvantages



Direct Marketing
• Advantages
• Disadvantages
17-14


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
17-15


MARKETING MATTERS
LO2

How Can You Reach Generation Y?
With Mobile Marketing!

17-16


LO3

IMC—DEVELOPING THE PROMOTIONAL MIX
THE PRODUCT LIFE CYCLE



Introduction Stage



Growth Stage



Maturity
Stage



Decline Stage
17-17


FIGURE 17-3 Promotional tools used over
the product life cycle of Purina Dog Chow

17-18


LO3

IMC—DEVELOPING THE PROMOTIONAL MIX
PRODUCT CHARACTERISTICS



Complexity



Risk



Ancillary Services
17-19


LO3

IMC—DEVELOPING THE PROMOTIONAL MIX
STAGES OF THE BUYING DECISION



Prepurchase Stage



Purchase Stage



Postpurchase Stage
17-20


FIGURE 17-4 How the importance of
promotional elements varies during the
stages of the consumer purchase decision
process

17-21


LO3



IMC—DEVELOPING THE PROMOTIONAL MIX
CHANNEL STRATEGIES

Push Strategy



Pull Strategy

• Direct-to-Consumer
17-22

FIGURE 17-5 A comparison of push and
pull promotional strategies

17-23


FIGURE 17-6 The promotion decision
process includes planning, implementation,
and evaluation

17-24


LO4



DEVELOPING AN IMC PROGRAM
DEVELOPING THE PROMOTION PROGRAM

The Four “W”s:
• Who is the Target Audience?
• What are the Objectives, Budget, & Tools?
• Where Should the Promotion Be Run?
• When Should the Promotion Be Run?
17-25