1. Integrated Marketing Communications Intro to Marketing Chapter 15

2. Objectives of Promotion Informing, persuading, and influencing the consumer’s purchase decision Integrated Marketing Communications Coordinating all promotional activities Media advertising, direct mail, personal selling, sales promotion & public relations To produce a unified, customer-focused promotional message

3. The Communications Process An effective message should: Attract the receiver’s attention Achieve an understanding by both the receiver and the sender Suggest a method to satisfy the receiver’s needs AIDA Concept – steps that a person goes through when making a purchase A – ttention I – nterest D – esire A - ction

4. Objectives of Promotion Provide Information to consumers Increase demand Differentiate a product Accentuate a products value Show how a product will make life better Stabilize sales Sales are not uniform throughout the year

5. Promotional Mix Personal Selling Non-Personal Selling Advertising Paid, non-personal communication through various media Product Placement Sales Promotion Displays, shows, demonstrations, non-recurrent selling efforts Direct Marketing Includes direct mail, phone, infomercials Publicity & PR News, not paid for, press releases Guerilla Marketing Innovative low cost way to reach the market using a unique approach

7. Promotional Mix

8. Sponsorships Occurs when an organization provides cash or in-kind resources to an event or activity Purchases two things: Exposure Image

9. Direct Marketing Growing rapidly Interactive electronic media, direct mail, telemarketing, infomercials, & direct response advertising International direct marketing has grown – internet Databases are important

10. Direct Mail Sales letters, postcards, leaflets, folders, booklets, catalogs Advantages Can select a narrow target market, intensive coverage, personalized response rates are measurable Disadvantages High cost, dependence on quality of mailing list, junk mail

11. Catalogs Speigel, LL Bean, Lands End, & Eddie Bauer depended on catalog sales for years, then moved into retail stores & web pages. CD ROM catalogs Display 3 dimensional views

12. Telemarketing Phone Most frequently used form of direct marketing Inexpensive, get immediate response, personalized Predictive dialers skip busy signals & answering machines, waits for human voice

13. Direct Marketing via Broadcast Channels Brief direct response ads on TV or radio encourage viewers to respond immediately Home Shopping Channels QVC & HSN Work best for $20-$50 range Infomercials 30 minute or longer product commercials Usually air on non-prime-time slots or less expensive cable channels

14. Electronic Web Advertising E-mail Auction sites Kiosks Provide instant delivery

16. Pulling & Pushing Strategies Pulling Strategy Effort by the seller to stimulate final user demand Pushing Strategy Effort by the seller to channel members to motivate them to carry the product.

17. Budgeting Most effective is to increase promotional expenditures until each dollar of promotion expense is matched by a dollar of profit. Percentage of sales is the most common

18. Measuring the Effectiveness Direct sales results Indirect Recall Electronic media Hits on the web