1. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-1 Chapter Sixteen Promoting Products Using Interactive and Integrated Marketing Communications

2. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-2 Change & Promotion Mix  Definition- Promotion  Promotion Mix  Integrated Marketing Communication (IMC)  Change  Technology  Build Relationships  Interactivity

3. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-3 Factors That Affect The Promotion Mix  Type of Product  Stage in the Product Life Cycle  Target Market Characteristics  Actions of Competitors  Available Funds

4. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-4 Components of Integrated Marketing  Advertising  Corporate Communication  Crisis Communication  E-Commerce  Event Marketing  Internal Communication  Issues Management  Marketing  Multimedia  Public Relations  Sales Promotion  Strategic Planning  Web Design

5. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-5 Objectives of Integrated Marketing  Build Brand Equity  Provide Information  Manage Demand & Build Sales  Differentiate Products  Influence Perceptions, Attitudes, & Buyer Behavior

6. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-6 Total Direct Advertising Expenditures In billions *Projected Source: Source: The Direct Marketing Association

7. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-7 Figure 16.3 Advertising Expenditure by Media

8. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-8 Advertising Today  Persuasive Communication  Infomercials  Internet  Global Advertising

9. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-9 Century’s Top Ad Jingles  “You deserve a break today”  “Be all you can be”  “Pepsi-Cola hits the spot”  “Mm Mm good!”  “See the USA in your Chevrolet”  “I wish I were an Oscar Mayer wiener”  “Double your pleasure, double your fun”  “Winston tastes good like a cigarette should”  “It’s the real thing”  “A little dab’ll do ya” Source: Source: Advertising Age

10. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-10 Favorite Budweiser Advertising Slogans 1899 King of Bottled Beers America’sSocialCompanion 19371943 Food’s Favorite Companion 1947 It lives with good taste everywhere 1953 When you know your beer… it’s bound to be Bud 1971 When you say Budweiser, you’ve said it all 1993 Proud to be your Bud

11. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-11 Do Blatantly Sexy Ads Turn You Off? Source: Source: USA Today

12. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-12 Amount Spent On... Internet Advertising = $1.92 Billion Outdoor Advertising = $1.58 Billion Source: Source: CIO Web Business, 1/1/1999

13. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-13 Internet Advertising- 2004  Will reach $22 billion in the U.S.  The rest of world will spend $10.8 billion.  $27 billion (10% of all U.S. ad spending) will be siphoned from traditional media  Hardest hit: newspapers and direct mail Source: Source: CIO Web Business, 10/1/1999

14. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-14 Steps in Personal Selling Prospect/QualifyProspect/Qualify PreapproachPreapproach ApproachApproach PresentationPresentation ObjectionsObjections CloseClose Follow-upFollow-up

15. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-15 Public Relations Steps  Listen  Change/Develop  Inform Publicity  Free  More Effective Than Ad  Believable  No Control  No Repetition

16. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-16 Sales Promotion  Internal & External  Sampling  Word-Of-Mouth  Viral Marketing/Swag  Technology  Testimonials

17. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-17 Tips on Issuing Coupons  Coupons can be used as a “Thank you for buying” or a “Stop and try us.”  The value must be enough to attract customers.  Use coupon promotions sparingly.  Get professional help to get maximum exposure.  Color-code your coupons for different groups that use them.

18. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-18 Top Celebrity Endorsers Celebrity Candice Bergen Bill Cosby Kathi Lee Gifford Cindy Crawford Jerry Seinfield Cybil Shepherd Product (s) SprintJell-O Carnival Cruise Lines Revlon, Pepsi American Express L’Oreal

19. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-19 Top Sports Endorsers Athlete Micheal Jordan Tiger Woods Arnold Palmer Andre Agassi Endorsements $ 47.0 Million $ 24.0 Million $ 16.0 Million $ 14.0 Million Source: Source: Fortune Magazine

20. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-20 Promotional Strategies Push Strategy Pull Strategy Promotion Distribution Retail Store Customer Promotion

21. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. 16-21 Building IMC IMC  Gather Data & Maintain Database  Respond Quickly To Adjust Policies & Procedures  Provide Accessible Information