Transcript Chapter 15
CHAPTER INTEGRATED MARKETING COMMUNICATIONS AND DIRECT MARKETING WHAT IS PROMOTION? Communication by marketers that informs, reminds, and persuades potential buyers of a product in order to influence an opinion or elicit a response. PROMOTIONAL MIX Advertising Elements of the Promotional Mix Personal Selling Public Relations Sales Promotion Direct Marketing ADVERTISING Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. PUBLICITY Public information about a company, good, or service appearing in the mass media as a news item. It is NOT paid for by the marketer, and the company is not identified as the source of the information. TRADITIONAL ADVERTISING MEDIA Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards E-media PERSONAL SELLING the two-way flow of communication between a buyer and seller, often in face-to-face encounter, designed to influence a person’s or group’s purchase decision. PUBLIC RELATIONS The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance. SALES PROMOTION Marketing activities-other than personal selling, advertising and public relations-that stimulate consumer buying and dealer effectiveness. GOAL is to enhance and speed up the effectiveness of the other three. SALES PROMOTION TOOLS Free samples Contests Premiums Trade Shows Popular Tools for Consumer Sales Promotion Vacation Giveaways Coupons DIRECT MARKETING direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. INTEGRATED MARKETING COMMUNICATIONS A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. I can send it out, but how do I know what was received ? THE COMMUNICATION PROCESS The process by which we exchange or share meanings through a common set of symbols. Noise Source Encoding Message Message Channel Feedback Channel Decoding Message Receiver Criteria for Selecting Media Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility The promotional mix FACTORS EFFECTING MEDIA CHOICE Nature of the Product Promotional Funds Target Market Factors Type of Buying Decision Stage in PLC Push or Pull Strategy These are much like the factors that affect your distribution choice FIGURE 15-3 Promotional tools used over the product life cycle of Purina Dog Chow A comparison of push vs pull promotional strategies Setting the Promotion Budget % of Sales Budgeting – last year’s sales sets this year’s budget Competitive Parity Budgeting – do like your competitors All-You-Can-Afford Budgeting – promo when all other costs are covered Objective and Task Budgeting – best method; set current objectives & divide current funds Push Strategy A push strategy consists of directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. Pull Strategy A pull strategy consists of directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product. IN-CLASS ACTIVITY 15-1 AN IMC FOR A TORO SNOWTHROWER Toro Power Max News Release (Page 1) Toro Power Max Radio Ad Click to Play Radio Ad Toro Power Max Point-of-Purchase Kit (1) Brochure & Holder Feature Card Buying Power Finance Poster Hanging Mobile Chute Wobbler Toro Power Max Point-of-Purchase Kit (2) Counter Mat Indoor/Outdoor Banner Loop Video Coop Ad