17-1 Chapter 17 Integrated Marketing Communications 17-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Goals • • • • 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 17-3 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Promotion in Marketing Use communication to influence the awareness, feelings, beliefs and behavior of prospective customers 17-4 Goal of Promotion The Goal of Promotion is to Change the Pattern of Demand for a Product. 17-5 Role of Promotion in Marketing Promotion and Imperfect Competition Informing Promotion and Marketing 17-6 Persuading Reminding Promotion Methods 17-7 Personal Selling Direct presentation Face-to-face or phone Most money spent Advertising Nonpersonal Paid Sponsor Promotion Promotion Methods Sales Promotion Public Relations 17-8 Sponsored Demand stimulation Incentives Trade promotions Variety of communication efforts Contribute to generally Favorable attitudes No specific sales message Publicity Integrated Marketing Communications A strategic business process used to plan, develop, execute, and evaluate Coordinated communication with an organization’s public 17-9 IMC 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 communicate a consistent message Timed, continuous flow of information 17-10 Implementing IMC Personal Selling Sales Promotion Advertising Direct Marketing 17-11 Coordinated to accomplish objectives Public Relations Evaluating IMC Examine results Awareness of company or brand Interest in a product or brand Action: usage or responses 17-12 Barriers to IMC Departmental barriers Resistance To alternatives Marketing Communications Manager 17-13 Communication Process 17-14 Determining the Promotional Mix STRATEGIC DECISIONS Target Audience Promotion Objectives Nature of product Product Life Cycle Stage Available money 17-15 Push and Pull Strategies 17-16 Promotion Objectives Hierarchy of Objectives Awareness Knowledge Liking Preference Conviction Purchase 17-17 Nature of the Product Unit Value Degrees of Customization Presale and Postsale Service 17-18 Product Life Cycle 17-19 The Promotion Budget Percentage of Sales Following Competition 17-20 All Available Funds Task or Objective Regulation of Promotion FEDERAL Federal Trade Commission Act 17-21 Lanham Trademark Act Wheeler- Lea Amendment Trademark Law Revision Act Robinson -Patman Act Telephone Consumer Protection Act Regulation of Promotion STATE AND LOCAL Printers’ Ink Statutes Green River Ordinance PRIVATE ORGANIZATIONS Council of Better Business Bureaus 17-22 National Advertising Division Children’s Advertising Review Unit Key Terms and Concepts • • • • • • Promotion Personal selling Advertising Sales promotion Public relations Integrated marketing communications • Communication • Promotion mix • Push strategy 17-23 McGraw-Hill/Irwin • • • • Pull strategy Hierarchy of effects Viral marketing Promotional budgeting methods • Federal Trade Commission Act • Wheeler-Lea Amendment • Robinson-Patman Act Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms and Concepts • Lanham Trademark Act • Trademark Law Revision Act • Telephone Consumer Protection Act • Printers’ Ink statures • Green River ordinance 17-24 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.