BUS M 300 Lecture 13 Outline of Last Lecture I Personal Selling II Types of Selling III Forms of Personal Selling IV Stages in personal Selling V The Follow Up VI The Sales Management Process VII Sales Plan Formulation VIII Sales Plan Implementation Outline of Current Lecture IX Integrated Marketing X What is promotion XI Push vs Pull Strategy XII Determine and Allocate the Total Promotion Budget XIII Direct Marketing Current Lecture EXAM THREE HAS BEEN MOVED TO THURSDAY APRIL 10 Integrated Marketing These 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 o IMC is comprised of advertising sales promotion personal selling direct marketing and public relations o Communicating with customers is a critical part of a firm s Customer Relationship Management program The communication process is called Integrated Marketing communications or promotion o Integrated Marketing IMC is a cross functional process for establishing relationships with customers and other stakeholders using messages from the marketer o IMC should be designed to inform and persuade the consumer be integrated or cross functional because many people and departments help create and maintain relationships through communications the messages are coordinated to speak with one voice target a variety of different audiences customers employees shareholders and suppliers What is Promotion o Promotion the coordination of a marketer s communication efforts to influence attitudes or behavior o Promotion and its goals It all depends on where the product is in the product life cycle Push vs Pull Strategy o Push strategy Company producer Tries to Move Products Through the Channel by Convincing Channel Members to Offer feature or display those products Retailer specific Focus is on the specific retail establishment Advertising info is directed at the retailer o Pull strategy Company Producer Tries to Build Desire for Products Among Consumers Who go to Retailers to find These Items Advertising info is direct at the consumer Focus is on the industry as a whole Encourages consumers to ask retailer for the product Determine and Allocate the Total Promotion Budget o Top Down Budgeting Techniques Establish the overall amount the organization wishes to spend on promotion activities then divide this amount up among advertising public relations and other promotional departments Percentage of Sales method is the most common technique used by companies o Bottom Up Budgeting Techniques Identify the overall promotional goals then allocate the promotional budget to accomplish these goals Objective task method is the most commonly used technique A firm defines the specific communication goals if hopes to achieve such as increasing by 20 the number of consumers who are aware the firms brand Direct Marketing o Direct Marketing is one of the fasted growing IMC tools used today o Direct marketing adds value for consumers More than 68 of the US population has purchased products by phone or by mail o Adds value for seller by providing direct orders lead generation and traffic generation