Page 369 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 343

LEARNING OBJECTIVE 1
Explain the concept of integrated marketing promotion.
Integrated marketing promotion means that a company will consider the role of integrated marketing promotion The
all relevant promotion alternatives when developing the promotion mix, employ consideration of all relevant promotion
alternatives when developing a
those that provide the best opportunity for achieving the company’s promotion
promotion mix, employing those that
objectives, and then coordinate the activities required to put into motion the provide the best opportunity for
agreed-on promotion mix. For example, for advertisers marketing books, NewsMax, achieving the company’s promotion
objectives, and coordinating the
a news and opinion magazine containing advertising, offers an integrated promo-
activities required to put into motion the
tional effort, consisting of a variety of promotion options. An ad for a book or pub- agreed-on promotion mix
lishing house that runs in the magazine will reach 300,000 readers and the hosts of
every major radio and television talk show. Additionally, NewsMax.com has 6 mil-
lion visitors per month, and it offers options of banner headline ads and side links.
Other promotion options include e-mail campaigns that can be directed to 200,000
opt-in subscribers and run as advertorials; a public relations network that can
secure guest appearances for a book’s author or editor on CNN, Fox News, MSNBC,
and most radio talk shows; and NewsMax’s online store, which streamlines the
order process for interested customers.

reality Choose any of the icon companies—Sony, DaimlerChrysler, or
CH ECK McDonald’s—and indicate the different ways you are aware of that
company uses to promote its products.

Advertising
advertising Nonpersonal
Advertising is nonpersonal communication through media for which payment is communications through media for
made. The major types of media and the percentage of total media expenditures which payment is made
($233 billion) for each in 2001 are shown in Exhibit 10.1. direct mail A type of advertising that
uses personal letters, booklets, and
Direct mail, which allows for the greatest selectivity in reaching a target market, brochures to reach very specific market
led all media in advertising expenditures (19.3 percent). Personal letters, booklets, segments
and brochures can reach very
specific market segments. For Business papers 2.1% Billboards 2.1% EXHIBIT 10.1
example, a letter soliciting the Internet 2.6%
Percentage of Advertising
purchase of a new book about
Magazines 4.7% Expenditures Accounted for
growing roses could be directed Direct
Yellow Pages by Various Media Sources
to retired men who have an avid 6.0% mail Source: “2002 Marketing Fact Book,”
19.3%
interest in gardening and who Marketing News, July 8, 2002, p.15.
Cable
live in the Southeast. The names television
6.9%
and addresses of these individu- Newspapers
Radio 19.1%
als can be obtained from list bro-
7.7%
kers who have available hun-
dreds of different lists. The most Miscellaneous Broadcast
television
severe limitations in using direct 12.9% 16.7%
mail are the public’s distaste for
junk mail and the difficulty in
getting and maintaining good mailing lists. The latter problem was encountered by
a firm that purchased a list of 2000 contractors located in the Southwest. Six hun-
dred of them proved to be invalid. They were returned with such notations from the
post office as “addressee no longer here” and “addressee unknown.”
Newspapers (19.1 percent of total advertising expenditures) offer a flexible
means of advertising. They can be chosen to cover a local market or several urban
centers. Since almost everyone reads newspapers, they are an effective means of

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