1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Integrated Marketing Communications & Direct Marketing 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 17, you should be able to : LO2 LO1 LO3 Discuss integrated marketing communication and the communication process. Describe the promotional mix and the uniqueness of each component. Select the promotional approach appropriate to a product’s target audience, lifecycle stage, and characteristics, as well as stages of the buying decision and channel strategies.

3. Integrated Marketing Communications & Direct Marketing 1-3 LEARNING OBJECTIVES (LO) After reading Chapter 17, you should be able to : LO5 LO4 Describe the elements of the promotion decision process. Explain the value of direct marketing for consumers and sellers.

4. Maxi-Peel Making Waves in Personal Healthcare Opening Story – Maxi-Peel 1-4

5. 1-5 Integrated Marketing Communications & the Communication Process LO1 The Communication Process Encoding, Decoding, Feedback & Noise  Encoding Encoding  Decoding Decoding  Field of Experience Field of Experience  Feedback Loop  Feedback Feedback  Response Response  Noise Noise

6. 1-6 Integrated Marketing Communications & the Communication Process LO1 FIGURE 17-1 FIGURE 17-1 The communication process consists of six key elements

7. 1-7 The Promotional Mix LO2 The Communication Process Encoding, Decoding, Feedback & Noise

8. 1-8 The Promotional Mix LO2 Promotional Elements Advertising  Mass Selling  Customized Interaction  Advertising Advertising Paid Aspect Nonpersonal Component vs. Advantages Disadvantages

9. 1-9 The Promotional Mix LO2 Promotional Elements Personal Selling  Personal Selling Personal Selling Wasted Coverage Advantages Disadvantages

10. 1-10 The Promotional Mix LO2 Promotional Elements Public Relations  Public Relations Public Relations Publicity Advantages Disadvantages

11. 1-11 The Promotional Mix LO2 Promotional Elements Sales Promotion & Direct Marketing  Sales Promotion Sales Promotion  Direct Marketing Direct Marketing Advantages Disadvantages Advantages Disadvantages

12. 1-12 The Promotional Mix LO2 IMC Developing the Promotional Mix  Determine the Balance of the Elements  Coordinate the Promotional Effort

13. 1-13 Selecting the Appropriate Promotional Approach LO3 The Target Audience Promotional Approach  Ultimate Consumer  Intermediary (e.g. retailer, wholesaler, or industrial distributor)

14. 1-14 Selecting the Appropriate Promotional Approach LO3 Marketing Matter Reaching Generation & With Mobile Marketing

15. 1-15 Selecting the Appropriate Promotional Approach LO3 The Product Life Cycle Promotional Approach  Introduction Stage  Growth Stage  Maturity Stage  Decline Stage

16. 1-16 Selecting the Appropriate Promotional Approach LO3 FIGURE 17-3 FIGURE 17-3 Promotional tools used over the product life cycle of Purina Dog Chow

17. 1-17 Selecting the Appropriate Promotional Approach LO3 Product Characteristics Promotional Approach  Complexity  Risk  Ancillary Services

18. 1-18 Selecting the Appropriate Promotional Approach LO3 Stages of the Buying Decision Promotional Approach  Prepurchase Stage  Purchase Stage  Postpurchase Stage

19. 1-19 Selecting the Appropriate Promotional Approach LO3 FIGURE 17-4 FIGURE 17-4 How the importance of promotional elements varies during the stages of the consumer purchase decision process

20. 1-20 Selecting the Appropriate Promotional Approach LO3 Channel Strategies Promotional Approach  Push Strategy Push Strategy  Pull Strategy Pull Strategy

21. 1-21 Selecting the Appropriate Promotional Approach LO3 FIGURE 17-5 FIGURE 17-5 A comparison of push and pull promotional strategies

22. 1-22 Elements of Promotion Decision Process LO4 Developing an IMC Program The Promotion Decision Process  Specifying Promotion Objectives  Identifying the Target Audience Hierarchy of Effects  Evaluation  Interest  Awareness  Trial  Adoption

23. 1-23 Elements of Promotion Decision Process LO4 FIGURE 17-6 FIGURE 17-6 The promotion decision process includes planning, implementation, and evaluation

24. 1-24 Elements of Promotion Decision Process LO4 Developing an IMC Program Setting the Promotion Budget  Percentage of Sales Budgeting Percentage of Sales Budgeting  Competitive Parity Budgeting Competitive Parity Budgeting  All-You-Can-Afford Budgeting All-You-Can-Afford Budgeting  Objective and Task Budgeting Objective and Task Budgeting Matching Competitors Share of Market

25. 1-25 Elements of Promotion Decision Process LO4 FIGURE 17-7 FIGURE 17-7 Advertising expenditures of selected Asian companies in 2006

26. 1-26 Elements of Promotion Decision Process LO4 Using Marketing Dashboards How much to spend on IMC? Promotion-to-Sales Ratio

27. 1-27 Elements of Promotion Decision Process LO4 Developing an IMC Program The Promotion Decision Process  Designing the Promotion  Selecting the Right Promotional Tools  Scheduling the Promotion

28. 1-28 Elements of Promotion Decision Process LO4 Developing an IMC Program The Promotion Decision Process  IMC Audit  Pretesting  Posttesting

29. 1-29 The Value of Direct Marketing for Consumers & Sellers LO5 Direct Marketing Value for Consumers & Sellers  The Value of Direct Marketing  Technological, Global and Ethical Issues in Direct Marketing  The Growth of Direct Marketing Direct Orders Traffic Generation Lead Generation

30. 1-30 The Value of Direct Marketing for Consumers & Sellers LO5 FIGURE 17-8 FIGURE 17-8 Business use and response rates of popular forms of direct marketing