1. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Chapter 14: Promotion— Introduction to Integrated Marketing Communications

2. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. 14-2 Basic Promotion Methods Target Market Target Market Price Promotion Place Product Sales Promotion Sales Promotion Personal Selling Personal Selling Publicity Advertising Mass Selling Mass Selling Exhibit 14-1

3. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Aimed at Intermediaries Price deals Promotion allowances Sales contests Calendars Gifts Trade shows Meetings Catalogues Merchandising aids Aimed at Final Consumers or Users Contests Coupons Aisle displays Samples Trade shows Point-of-purchase materials Banners and streamers Trading stamps Sponsored events Aimed at Company’s Own Sales Force Contests Bonuses Meetings Portfolios Displays Sales aids Training materials 14-3 Sales Promotion Activities Exhibit 14-2

4. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Feedback ReceiverDecoding Message channel EncodingSource Noise 14-4 The Traditional Communication Model Exhibit 14-3

5. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. 14-5 Customer-Initiated Interactive Communication Noise Source’s Message Search Select a topic Message channel Receiver (Customer) Exhibit 14-5

6. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. C. Both to the right and more elastic 14-6 Promotion and the Demand Curve Exhibit 14-6 0 Price Quantity D1D1 0 Price Quantity 0 Price Quantity D2D2 D1D1 D1D1 D2D2 B. To the rightA. To be more elastic D2D2

7. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Promotion and the AIDA Model Promotion ObjectivesAdoption ProcessAIDA Model Informing Persuading Reminding Attention Interest Desire Action Awareness Interest Evaluation Trial Decision Confirmation } } { 14-7 Exhibit 14-7

8. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Encoder Decoder Common frame of reference The same message may be interpreted differently by the encoder and the decoder 14-8 Message Interpretation

9. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Push-Pull Strategies 14-9 Final Consumers Pull Business Customers Pull Promotion to Business Customers Promotion to Final Customers Promotion to Channel Members Producer’s Promotion Blend Personal Selling, Sales Promotion, Advertising, Publicity Exhibit 14-8 Wholesalers’ Promotion Push Wholesalers’ Promotion Push Retailers’ Promotion Push

10. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Time 14-10 The Adoption Curve Percent Adoption Innovators (3-5%) Early Adopters (10-15%) Early Majority (34%) Late Majority (34%) Laggards/ Nonadopters (5-16%) 0 5 20 50 90 Exhibit 14-9

11. For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited. Setting the Promotion Budget Task Method Uncommitted Resources Per Unit Match Competitors Percentage of Sales 14-11