Class Intro 13

Promotion - Introduction to Integrated Marketing Communications

WSJ: PepsiCo Overhauls Strategy

Personal Selling

Mass Selling: Advertising versus Publicity

Sales Promotion

targeted at consumers: contests, coupons, aisle displays, samples, trade shows, point of purchase, banners, frequent buyer programs, sponsored events

targeted at wholesalers and retailers: price deals, promotion allowances, sales contests, trade shows, meetings, catalogs, merchandise aids, videos

targeted at company's own sales force: contests and bonuses, meetings, sales aids, training materials

Promotional Objectives

to inform; to pursuade; or to remind

Adoption Model: Awareness; Interest; Evaluation; Trial; Decision; Confirmation

AIDA Model: Attention; Interest; Desire; Action

Traditional Communications Process

Source > Encoding > Message Channel > Decoding > Receiver > Feedback to Source (noise within the system)

Encoding and Decoding can create noise, depend on common frames of reference.

Integrated Direct Response Promotion

Very Targeted; More than just Direct Mail; Tied to Database, consumer behavior; Ethical Concerns

Customer-Initiated Interactive Communication

Receiver (customer) > Search > Message Channel > Select a Topic > Source's Message > Receive (noise)

Free information; Book example

Push Strategies: Promotion targeted to intermediaries to push product through

Pull Stratgeies: Promotion targeted to consumers to build demand and pull product through the channels

Adoption Process Impacts Promotion Selection

Innovators; Early Adoptors; Early Majority; Late Majority; Laggards and Non Adoptors

Life Cycle Stage Impacts Promotion Selection

Introduction, stimulate primary demand; Growth, promote individual brand; maturity; decline

Promotional Budget

Percent of Sales

Task Objective

A Number