INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE
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Integrated Marketing Communications |
The concept of
designing marketing communications programs that coordinate all promotional
activities to provide a consistent message across all audiences.
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Concept Check |
1.
For consumer products, why is advertising emphasized more than personal
selling?
A:
There is a large number of buyers.
2.
Explain the differences between a push strategy
and a pull strategy.
A:
In a push strategy, promotion is used to move the product through the
channel by directing promotional activities at channel members.
In a pull strategy, promotion stimulates end user demand to pull the
product through the channel.
3.
Integrated
marketing communi- cations programs
provide a
_________ message across all audiences. A: consistent |
DEVELOPING THE |
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DEVELOPING THE |
FIGURE 18-6 The promotion decision process |
DEVELOPING THE |
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Hierarchy of Effects |
The sequence of stages a prospective buyer goes through from initial
awareness of a product to eventual action (either trial or adoption of the
product). The stages include
awareness, interest, evaluation, trial, and adoption.
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FIGURE 18-7 U.S. promotion expenditures by companies in 2000 |
DEVELOPING THE |
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Percentage of Sales Budgeting |
Allocating funds to advertising as a percentage of past or anticipated sales,
in terms of either dollars or units sold.
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Competitive Parity Budgeting |
Matching the competitors’ absolute level of spending or the proportion per
point of market share.
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All-You-Can-Afford Budgeting |
Allocating funds to promotion only after all other budget items are covered.
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Objective and Task Budgeting |
A budgeting
approach whereby the company (1)
determines its promotion
objectives, (2) outlines the tasks to accomplish these objectives, and (3)
determines the promotion cost of performing these tasks.
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FIGURE 18-8 The objective and task approach |
DEVELOPING THE
PROMOTION PROGRAM |
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EXECUTING AND EVALUATING
THE PROMOTION PROGRAM |
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Concept Check |
1.
What are the characteristics of good promotions
objectives?
A:
They should (1) be designed for a well-defined target audience, (2)
be measurable, and (3) cover a specified time period.
2.
What are the weaknesses of the percentage of
sales budgeting approach?
A:
It implies that sales cause promotions; may cause a lag in budgets that
are based on previous year’s figures, e.g. a low sales year would result in
low advertising the next year when it should perhaps be higher; fails to
consider the importance of promotion and company objectives.
3. How have advertising agencies changed to facilitate the use of IMC programs?
A:
Agencies such as J. Walter Thompson design integrated programs for a
company. Although many agencies
still have departments such as direct marketing, the trend is clearly toward
a long-term perspective in which all forms of promotion are integrated.
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DIRECT MARKETING |
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FIGURE 18-9 Direct marketing expenditures, sales and employment by medium |
DIRECT MARKETING |
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Direct Orders |
The result of
direct marketing offers that contain all the information necessary for a
prospective buyer to make a decision to purchase an complete the transaction.
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Lead Generation |
The result of a
direct marketing offer designed to generate interest in a product or a
service, and a request for additional information.
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Traffic Generation |
The outcome of a direct marketing offer designed to motivate people to visit a
business.
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Concept Check |
1.
The
ability to design and use direct marketing programs has increased with the
availability of __________ and _________.
A: computers/data bases 2. What are the three types of responses generated by direct marketing activities? A: Direct orders, lead generation, traffic generation
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Chapter 18 - Summary |
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News, Articles & Links
Quizzes
Multiple Choice Quiz 1
Multiple Choice Quiz 2
Interactive Exercises
PowerPoint Presentation Chapter 18 (13877.0K)
Chapter 18
Flashcards
Internet Exercises
Interactive Exercises
More Resources
Web Links
www.mbusa.com
www.gulfstreamvsp.com
www.heinz.com
www.disneyinternational.com
www.claritin.com
www.jwt.com
www.airwalk.com