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Integrated Marketing Communications
Chapter Fifteen Integrated Marketing Communications 1
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Objectives Discuss the basic purposes of promotion
Define the major elements of promotion Describe a basic model for communication Explain the communication hierarchy Explain how the elements of promotion support each other Identify general promotional strategies Classify budgeting approaches Discuss & provide examples of promotional campaigns
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Promotion Promotion: Inform Remind Applied marketing communication
Persuade Remind 2
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Communication Media Mass Media Personal Media Interactive Media 6
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The Promotional Mix Effectively blending & integrating & uniting elements Goal: Coordinated, systematic, & harmonious The Perfect Promotional Mix 14
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The Elements of Promotion
Personal selling: Person-to-person dialogue Purpose: To persuade buyer to accept a point of view
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The Elements of Promotion
Advertising Informative or persuasive message carried by a non-personal medium
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The Elements of Promotion
Publicity: Message not paid for by sponsor Public Relations: Management of publicity
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The Elements of Promotion
Sales Promotion: Induce buyers to purchase in specific timeframe
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Communication: Exchanging information and conveying meaning to others
Goal: Common understanding
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Communication Process
Noise Source Encoding Message Channel Decoding Receiver Feedback
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Communication Process
Encoding: process by which the sender translates the idea to be communicated into a message
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Communication Process
Channel: vehicle through which a message is sent Examples: Magazines TV Radio
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Communication Process
Decoding: process where receiver interprets the message
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Hierarchy of Communications Effects
Purchase Conviction Preference Liking Knowledge Awareness Brand ignorance 20
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Relative Importance of Advertising and Personal Selling
Pretransaction: Information to aid recognition and understanding Information to create positive feeling
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Relative Importance of Advertising and Personal Selling
Transaction: Persuasion
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Relative Importance of Advertising and Personal Selling
Post-transaction: Reminder and reassurance
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Push Strategy Supplier promotes product to intermediaries to PUSH the product through distribution channel Wholesaler Product flow Information($) Retailer Product flow Information($) Consumer Product flow Information($) Manufacturer
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Pull Strategy Supplier promotes product to ultimate consumer aiming to stimulate demand and PULL the product through the channel Consumer Information($) Manufacturer Wholesaler Retailer Product flow
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Determining Promotional Budgets
Objective and task Percentage-of-sales Comparative-parity Marginal approach All-you-can-afford Method Combination Cooperative promotion 23
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Promotional Campaigns
Image building: Symbolic value Personality Lifestyle Creating impression
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Promotional Campaigns
Product Differentiation: Set apart from competition Solving consumer problems USP
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Promotional Campaigns
Luxurious Sporty Positioning: Consumer perception Relative to competition Fast Slow
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Promotional Campaigns
Direct Response: Direct, measurable response Order Inquiry
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Review Discuss the basic purposes of promotion
Define the major elements of promotion Describe a basic model for communication Explain the communication hierarchy Explain how the elements of promotion support each other Identify general promotional strategies Classify budgeting approaches Discuss & provide examples of promotional campaigns
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