For use only with Perreault and McCarthy texts. © 2006 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER THIRTEEN CHAPTER THIRTEEN Promotion – Introduction to Integrated Marketing Communications

1. Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning. 2. Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. 3. Understand the importance of promotion objectives. 4. Know how the communication process affects promotion planning. 5. Understand how direct-response promotion is helping marketers develop more targeted promotion blends. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin When we finish this lecture you should

6. Understand how new customer-initiated interactive communication is different. 7. Know how typical promotion plans are blended to get an extra push from middlemen and help from customers in pulling products through the channel. 8. Understand how promotion blends typically vary over the adoption curve and product life cycle. 9. Understand how to determine how much to spend on promotion efforts. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin When we finish this lecture you should

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Several Promotion Methods Are Available Exhibit 13-1

Videos © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sales Promotion Tries to Spark Immediate Interest Exhibit 13-2

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A Free Sample – of Technology +

Sales Managers Sales Promotion Managers Advertising Managers © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Someone Must Plan, Integrate, and Manage the Promotion Blend Marketing Mangers Integrated Marketing Communications

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Which Method to Use Depends on Promotion Objectives

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Reminding May Be Enough

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Promotion Objectives Relate to the Adoption Process and AIDA Model Exhibit 13-3 (Chapter 5 )

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: AIDA

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Promotion Requires Effective Communication Exhibit 13-4

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Encoding & Decoding Depend on a Common Frame of Reference Exhibit 13-5

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Encoding and Decoding

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Message Channel and Noise Are Important Too Exhibit 13-4

Target Directly With a Database More Than Direct Mail Integrated Direct-Response Promotion Is Very Targeted © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethical Concerns

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Customer May Initiate the Communication Process Exhibit 13-6

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin How Typical Promotion Plans Are Blended and Integrated Exhibit 13-7

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Other Promotional Elements of Pushing +

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Pulling – Demand Pulls the Product through the Channel Exhibit 13-7

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An Example of Pulling +

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Adoption Processes Can Guide Promotion Planning Exhibit 13-8

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Stimulating Adoption of an Image

“This new idea is good” “Our brand is best” “Our brand is better, really” “Let’s tell those who still want our product” © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Promotion Blends Vary Over the Life Cycle

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Nature of Competition Requires Different Promotion +

Budgeting from Uncommitted Resources Budgeting by Sales Unit Matching the Competition Percentage of Sales Setting the Promotion Budget © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Task Method Usually the best approach

Promotion Personal selling Mass selling Advertising Publicity Sales promotion Sales managers Advertising managers Public relations Sales promotion managers © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms Integrated marketing communications AIDA model Communication process Source Receiver Noise Encoding Decoding Message channel Pushing

Pulling Adoption curve Innovators Early adopters Early majority Late majority Laggards Nonadopters Primary demand Selective demand Task method © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms