Basic Marketing

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A Global Managerial Approach

Eleventh Canadian Edition

Wong Shapiro Perreault McCarthy

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Chapter Thirteen
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Promotion Introduction to Integrated Marketing Communications

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For use only with this text. 2004 McGraw-Hill Ryerson, All Rights Reserved

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When we finish this chapter, you should

Know the advantages & disadvantages of the promotion methods a marketing manager can use in strategy planning.

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Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. Understand the importance of promotion objects. Know how the communication process affects promotion planning.
2004 McGraw-Hill Ryerson, All Rights Reserved

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When we finish this chapter, you should

Understand how new customer-initiated interactive communication is different.

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Understand how direct-response promotion is helping marketers develop more targeted promotion blends. Know how typical promotion plans are blended to get an extra push from intermediaries and help from customers in pulling products through the channel.
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When we finish this chapter, you should

Understand how promotion blends typically vary over the adoption curve and the product life cycle.

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Understand how to determine how much to spend on promotion efforts.

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Exhibit 13-1

Several Promotion Methods Are Available

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Exhibit 13-2

Sales Promotion Tries to Spark Immediate Interest

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Who is Involved in Integrated Communications?

Sales Managers Sales Managers Advertising Advertising Managers Managers

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Integrated Marketing Communications

Marketing Marketing Managers Managers

Sales Promotion Sales Promotion Managers Managers

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Exhibit 13-3

Which Methods to Use Depends on Promotion Objectives

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Informing is Educating

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Reminding May Be Enough

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Exhibit 13-4

Promotion Objectives Relate to the Adoption Process and AIDA Model

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Interactive Exercise: AIDA

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Exhibit 13-5

Promotion Requires Effective Communication

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Exhibit 13-6

Encoding & Decoding Depend on a Common Frame of Reference

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Encoding and Decoding

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Exhibit 13-5

The Message Channel and Noise Are Important Too

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Exhibit 13-6

The Customer May Initiate the Communication Process

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Integrated Direct-Response Promotion Is Very Targeted

More Than More Than Direct Mail Direct Mail Target Directly Target Directly With a Database With a Database

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Ethical Concerns Ethical Concerns

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Exhibit 13-8

Pushing the Product Down the Channel

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Other Promotional Elements of Pushing

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Exhibit 13-8

Pulling the Product Through the Channel

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An Example of Pulling

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Exhibit 13-9

Adoption Processes Can Guide Promotion Planning

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Promotion Blends Vary Over the Life Cycle

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This new idea is good

Our brand is best

Our brand is better really

Lets tell those who still want our product

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Nature of Competition Affects Promotion

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Setting the Promotion Budget

Percentage of Sales Percentage of Sales

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Matching the Competition Matching the Competition Budgeting by Sales Unit Budgeting by Sales Unit Budgeting from Budgeting from Uncommitted Resources Uncommitted Resources Task Method Task Method
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Key Terms
Adoption curve Advertising Advertising managers AIDA model Communication process Decoding Direct marketing Early adopters Early majority Encoding Innovators Integrated marketing communications Laggards (nonadopters) Late majority Mass selling Message channel Noise Personal selling Primary demand

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Key Terms
Promotion Public relations Publicity Pulling Pushing Receiver Sales managers Sales promotion Sales promotion managers Selective demand Source Task method

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