MKTG 311 1st Edition Lecture 27Outline of Last Lecture I. Ways to Enter the MarketII. Decide on the global marketing programA. Product DecisionsB. Promotion DecisionsC. Price DecisionsD. Distribution DecisionsIII. Integrated Marketing Communications (Ch. 17)IV. Traditional Forms of Communication:V. Today’s Promotion Mix: 3 Broad CategoriesOutline of Current Lecture I. Today’s Promotion Mix: 3 Broad CategoriesII. Communication Elements and ControlIII. The Communications ProcessIV. Steps in Developing the IMC PlanV. Determine the Communication ObjectivesVI. Setting the Promotion BudgetVII. Evaluate Promotion ProgramVIII. Push or Pull StrategyCurrent LectureI. Today’s Promotion Mix: 3 Broad Categories3. Direct Appeals- A direct approachMass Appeals- Advertising+ Total control over message- what it says, when it will appear and who will see it.- Costly, low credibilityPublic Relations+ Low cost, High Credibility- Lack of control over the message, target market may not see the messageSales Promotion+ Stimulates immediate trial and purchase of the product- Short term emphasis instead of building long term customer relationshipsDirect Appeals+ Customize the message to fit the needs of the target market- Expensive to maintain competitive databaseThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.II. Communication Elements and ControlAdvertising, Sales Promotion, Personal Sales, Public Relations, Word of Mouth/Social NetworkingIII. The Communications Process1. Source: An individual or an organization that is sending message. Encoding- Translation of ideas into communication.2. Message- Information that is sent by the source. Various objectives: Inform, persuade, remind, build relationship nonverbal and verbal components3. Channel of Communication- Communication used: TV, magazine, radio, social media, etc. Attributes of the product need to match the medium.4. Receive- Any individual or organization that intercepts and interprets the message, involves decoding “assigning meaning” to the message.5. Feedback: Source receives feedback from the receiver, helps to gauge effectiveness of the message and make changes.IV. Steps in Developing the IMC Plan- Identify the target audience- Marketing communications begins withV. Determine the Communication Objectives (Step 2)- Where a company lets consumer know it has a product that will fit their needs in a timely and affordable way. This is accomplished through a series of steps known as the hierarchy of effects product: - Awareness- Loyalty- Interest- Imparting Information- Evaluation- Creating desire through advertising appeals- Trial and adoption- Sales promotions get you to try the product- Adoption- Direct marketing creates the relationshipVI. Setting the Promotion Budget1. Affordable method budgeting: Used by many small business sets the promotion budget based on what the company can afford begins with revenues subtracts operating expenses and capital outlays- number denotes a portion of what is left to promotions. + Risk free, - advertising is last among spending priorities and it’s hard to do long range planning.2. Percentage of Sales Budgeting Method: Looks at what was made last year (in terms of sales) or projections of this year’s sales, then devotes a percentage of sales to promotions. – Ties sales to promotion.3. Competitive Parity Budgeting Method: Matches the firm’s promotional budget with what the competition is spending. – Assumes the same $ on promotion will yield similar results.4. Objective and Task Budgeting Method: Upfront, the firm determines its objectives and tasks, and then allocates money to achieve the objectives and tasks. + lead to great returns. – Most complexVII. Evaluate Promotion Program- Advertising: Brand awareness increase?- Public relations: Publicity?- Sales promotion: Coupons redeemed?- Personal selling: Did sales increase?VIII. Push or Pull StrategyPush Strategy- Push the product from the producer to consumer by convincing channel intermediaries to carry the product.Force: Intermediaries, wholesalers, retailersPromotion: Trade sales promotions, advertising publicity, and personal salesPull Strategy- Moves the product through the channel by increasing/ creating desire on the part of the consumer.Promotion: Consumer sales promo and