1. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-6 THE COMMUNICATION PROCESS Promotional Mix Integrated Marketing Communications (IMC)Integrated Marketing Communications (IMC) Communication Source Message Channel of Communication Receivers

2. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-7 FIGURE 18-1 FIGURE 18-1 The communication process

3. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-8 THE COMMUNICATION PROCESS Encoding and Decoding  Encoding Encoding  Decoding Decoding  Field of Experience Field of Experience

4. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-10 THE COMMUNICATION PROCESS Feedback  Response Response  Feedback Feedback Noise  Pretesting  Feedback Loop

5. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-15 FIGURE 18-2 FIGURE 18-2 The promotional mix

6. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-16 THE PROMOTIONAL ELEMENTS Advertising  Paid Aspect  Nonpersonal Component  Wasted Coverage Personal Selling

7. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-18 THE PROMOTIONAL ELEMENTS Public Relations  Public Relations Public Relations  Publicity Publicity Sales Promotion Direct Marketing

8. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-23 FIGURE 18-A FIGURE 18-A Factors that influence the use of promotional tools

9. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-24 INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX The Target Audience

10. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-27 INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX The Product Life Cycle  Introduction Stage  Growth Stage  Maturity Stage  Decline Stage

11. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-28 FIGURE 18-3 FIGURE 18-3 Promotional tools used over the product life cycle of Purina Dog Chow

12. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-30 INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX Product Characteristics  Complexity  Risk  Ancillary Services

13. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-32 INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX Stages of the Buying Process  Prepurchase Stage  Purchase Stage  Postpurchase Stage

14. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-33 FIGURE 18-4 FIGURE 18-4 How the importance of promotional elements varies during the stages of consumer’s purchase decision

15. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-34 INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX Channel Strategies  Push Strategy Push Strategy  Pull Strategy Pull Strategy Direct-to-Consumer

16. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-35 FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies

17. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-41 DEVELOPING AN IMC PROGRAM Identifying the Target Audience  Hierarchy of Effects Hierarchy of Effects Awareness Interest Specifying Promotion Objectives Evaluation Trial Adoption

18. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-42 FIGURE 18-6 FIGURE 18-6 The promotion decision process

19. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-45 DEVELOPING AN IMC PROGRAM Setting the Promotion Budget  Percentage of Sales Budgeting Percentage of Sales Budgeting  Competitive Parity Budgeting (Matching Competitors or Share of Market) Competitive Parity Budgeting (Matching Competitors or Share of Market)  All-You-Can-Afford Budgeting All-You-Can-Afford Budgeting  Objective and Task Budgeting Objective and Task Budgeting

20. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-46 FIGURE 18-7 FIGURE 18-7 U.S. promotion expenditures by companies in 2003

21. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-47 FIGURE 18-8 FIGURE 18-8 The objective and task approach

22. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-48 DEVELOPING AN IMC PROGRAM Selecting the Right Promotional Tools Designing the Promotion Scheduling the Promotion

23. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-55 DIRECT MARKETING The Growth of Direct Marketing  Direct Orders Direct Orders The Value of Direct Marketing  Lead Generation Lead Generation  Traffic Generation Traffic Generation Technological, Global, and Ethical Issues in Direct Marketing

24. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 18-56 FIGURE 18-9 FIGURE 18-9 Direct marketing expenditures, sales, and employment by medium

25. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin ETHICS AND SOCIAL RESPONSIBILITY ALERT How Do You Like Your E-Mail? “Opt- out” or “Opt-in” Are Your Choices Slide 18-58