1. Marketing Communications & Direct Marketing
Chapter 16

2. The Communication Process
Sender
Message
Channel of communication
Receivers
Encoding process
Decoding process
Discuss all aspects, including: sender, receiver, channel of communication, encoding and decoding, field of experience (similar understanding and knowledge), response (impact of message on receiver’s knowledge, attitudes, or behaviors), feedback (sender’s interpretation of the response).

3. Promotional Elements Advertising Personal Selling Public Relations
Example: Commercials
Advantages
Disadvantages
Personal Selling
Public Relations
Annual reports
Publicity
Adv.: Can reach a large # of people, can control message easier
Disadv: Expensive costs, hard to get feedback
PS- 2-way flow of information designed to influence a purchase
Adv.: Easier to modify the message
Disadv.: Expensive, what if get wrong salespeople?
PR- Seeks to influence beliefs or opinions held by stakeholders
Publicity- Nonpersonal, indirectly paid presentation of a company, good, or service
Adv.: Credibility
Disadv.: Lack of control (message, audience, times ran)

4. Promotional Elements Sales Promotion Direct Marketing Example: Coupons
Advantages
Disadvantages
Direct Marketing
Direct mail, catalogs
Sales Promotion: A S-T inducement of value offered to arouse interest in buying a good or a service
Advantage:S-T can stimulate sales
Disadv.: Temporary if S-T; if long-tern, lose effectiveness
DM- Direct communication with consumers to get them to place an order, ask or more info, or visit a retail outlet
Adv.: Interactive, custom presentations
Disadv.: Need up-to-date database (time and cost), privacy issues

5. Promotional Mix The Target Market The Product Life Cycle
Product Characteristics
Complexity
Degree of risk
Ancillary services
TM- B2C- Mass marketing; B2B- Trade journals; Intermediaries- Personal selling
Intro- Make them aware of product
Growth- Buy instead of substitutes. Personal selling to get channels; advertising- brand loyalty
Maturity- Remind customers of product; Promotions (price cuts, coupons); Direct Marketing (Mailings)

6. Promotional Mix Stages of Buying Decision Channel Strategies
Prepurchase stage
Purchase stage
Postpurchasing
Channel Strategies
Push
Pull
Prepurch- Advertising (info); sales promotion (coupons)
Purchase- Sales promotion (displays, rebates)
Postpurch- Personal contact and advertising (assurance).
Push- Direct promotions at channel members
Pull- aim at customers, they buy from retailers, who need more stock from warehouses, etc.

7. Marketing Program Developing the Program Executing the Program
Evaluating the Program

8. Developing the Program
Identify the Target Audience
What Should the Program Accomplish?
Hierarchy of effects
Setting the Promotion Budget
Percentage of sales
Competitive parity
All you can afford
Objective and task
HoE- Awareness, Interest, Evaluation, Trial, Adoption
% sales- Easy; but if sales dip then you will lose money.
Comp. parity- Look at competition
All you can afford- Leftovers
Objective and task- Looks at goals and what needs to be done to reach them

9. Developing the Program
Select Promotional Tools
What combination?
Designing the Promotion
Example: Advertising and humor
Scheduling the Promotion

10. Executing and Evaluation
Posttests
Databases

11. Direct Marketing 2001 Expenditures: $205 billion
2001 Revenues: $1.9 trillion
2005 Revenues: $2.7 trillion

12. Direct Marketing Value Issues Consumers Sellers Technological Global
Ethical
Consumers- Stay at home; cheaper; 24-hour; more private than store;
Sellers: Direct orders (Contain all info buyers need to purchase); lead generation (Result of an offer designed to generate interest and request more info); traffic generation (outcome of an offer designed to motivate people to visit business
Tech- Dbs
Global- Not everyone has developed telephone and internet access
Ethical- Privacy