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26 Cards in this Set
- Front
- Back
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Promotional Mix |
the combination of one or more of the following communication tools: advertising, personal selling, sales promotion, public relations, direct marketing |
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Promotional Mix purposes (3) |
1. inform prospective buyers about the benefits of the product 2. persuade them to use it 3. remind them later about the benefits they enjoyed by using the product
In the past, different branches were in change of different elements. today they coordinate all promotional messages in order to send a consistent message across to all audiences. their system is referred to as "integrated marketing communications (IMC)" |
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Communication (6) |
The process of conveying a message to others. Requires six elements 1. Source: the company or person who has info to convey 2. Message: the info sent by the source 3. Channel of communication: the way the message is conveys like salesperson, advertising media, PR tools 4. Receivers: the those who hear, read or see the message 5. Encoding: the process of having the sender trandorm an idea into a set of symbols 6. Decoding: the reverse: or the process of having the receiver take the set of symbols, the message, and transform the symbols in to an idea |
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Errors in Communication |
can happen in several ways. source may not adequately transform the abstract idea into an effective set of symbols, a properly encoded message may be sent through the wrong channel and never reach the intended recipients. the reveicer may not properly decode the set of symbols into the correct idea. or feedback may be so delayed or distorted that it is of no use to the sender |
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Field of experience |
in order for messages to be communicated effectively, the sender and receiver must have a shared FIELD OF EXPERIENCE: a similar understanding and knowledge they apply to the message. some message problems occur when US companies take messages to another countries. |
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Feedback |
Feedback: the sender's interpretations of the response (response: the impact the message had on the receivers knowledge, attitudes or behaviors). Feedback indicates whether the message was decoded and understood as intended. Chap. 18 rviews approaches called pretesting which ensures that messages were properly decoded |
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Noise |
includes extraneous factors that can work against effective communication by distorting a message or the feedback received. Noise can be a printing mistake or the use of pictures that fails to communicate message clearly. Nose can occur because of a salesperson's accent, slang, communication style, etc. |
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Promotional Elements: Advertising |
paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. PAID aspect is important. NONPERSONAL= no immediate feedback loop. Advertising allows company to control what is said, to some extent, who it is sent to, when and how often it is sent.
disadvantages: expensive and lack of direct feedback |
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Personal selling |
the two way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. Usually face to face
advantages: salesperson can control who the presentation is made to, reducing the amount of wasted coverage (wasted coverage: communication with consumers who are not the target audience), It is personal so they can hear and see reaction, modify message
Disadvantages: different salespeople might change the message, harder to get consistency. high cost of personal selling |
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Public Relations |
a form of communication that seeks to influence the feelings, opinions, or belief held by customers, stockholders, suppliers, employers, etc.
Publicity: nonpersonal, indirectly paid presentation of an organization, product or service. can be a news story, editorial or product accouncement.
with publicity, a company fdoes not pay for space but attempts to get the medium to run a favorable story on the company
Advantage: credibility. when you read a favorable review there is a tendency to believe it because these businesses cannot pay for favorable reviews
disadvantage: lack of user[s control. a company can invite the media to cover it but there is no guarantee of a story, that it will be positive, that it will be read by the target market |
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Sales Promotion |
a short term inducement of value offered to arouse interest in buying a product or service. Used in conduction with advertising and personal selling. in the form of coupons, rebates, samples, contests, sweepstakes.
advantages: short-term nature often stimulates sales for their duration. Offering value may increase store traffic from consumers who are not store-loyal
disadvantages: cannot be sole strategy of campaign because gains are temporary, and sales drop at the end of the deals. ad support is necessary to convert customers into long-term buyers. some customers delay purchases until coupons offered, or question products value. fed government regulates some sales promotions.
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Direct marketing |
uses direct communication with consumers to generate a response in the form of an order, a request for more info or a visit to a retail outlet
can take many forms: face to face selling, direct mail, catalogs, telephone solicitations, direct response ads, online marketing
like personal selling can interactive communication. advantage of being customized and adapted quickly to improve one on one communication
disadvantages: requires up to date datable about target market which can be expensive and time consuming. growing concern over privacy issues |
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Promotion: Product Life Cycle |
Introduction Stage: informing consumers. All promo mic elements used. Advertising is important to build awareness and interest
Growth Stage: primary objective is to persuade the consumer to buy the product rather than substitutes, so the marketing manager seeks to gain brand preference and solidify distribution. Sales promo isles important and publicity not a factor. Primagy promo: Advertising, stressing brand differences. Personal selling
Maturity stage: the need to maintain existing buyers and advertising to remind buyers of product's existence. Sale promo in discounts and coupons is important. Maintaining loyal buyers. Sponsoring events helps maintain loyalty. Direct marketing used to maintain existing customers and repeat purchases. Price cuts and discounts can also help increase sales.
Decline stage: little money spent in promo mic. rate of decline is rabip as the product is replaces by an improved or lower costing product, rate can be slow if there is a loyal group of customers. |
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Product Characteristics |
proper promo mix also depends on the type of product. three specific characteristics to consider: complexity, risk and ancillary
complexity: technical sophistication of the product and the amount of understanding required to use it. The more complex, the more emphasis on personal selling
risk: financial risk, social risk, physical risk. although advertising helps, high risk needs personal selling
Ancillary services: the degree of service or suppert required after the sale. Advertising the company helps with re[uration, direct marketing can be used to show how product can be customized for consumers needs. again, personal se;ling is essential for buyer confidence |
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Stages of the buying decision |
Prepurchase stage: advertising informs. sales promo helps with low-risk trial.
purchase stage: importance of personal selling is highest, advertising impact is lowest. sales prop helps, social media important
post purchase stage: the salesperson is still important: more contact, more customer satisfaction. advertising and personal selling reduce post purchase anviety
sale promo and direct marketing reminders encourage repeat purchases.
pr plays a low role |
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Channel Strategies: Push and Pull |
Push Strategy: flood the market with your product. Sakespeople call on wholesalers to encourage orders and provide sale s assistance.
Pull Strategy: make consumers ask retailers for product. seeing demand from ultimate consumers, retailers order the product from wholesalers and tus the item is pulled through the intermediaries
"ask your doctor if Setia is right for you"
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Development of the promotion program (4 ws) |
1. who is the target audience? 2. what are 1. the promotion objectives, 2. the amount of money budgeted, 3. the kinds of promotions used? 3. Where should the promotion be run? 4. When should the promotion be run? |
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1. Target Audience |
the group that the promo program will be directed towards. more the firm knows about demographics, interests, preferences, media use, purchase behavior- the easier to develop a promo program
Profile basef on age, gender and income in specific tv programs
behavioral tartgeting: collecting info about web-browsing behavior to determine the display ads you see on the web |
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2. Specifying promotion objectives |
HIERARCHY OF EFFECTS: the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (trial or adoption). 5 stages 1. awareness 2. interest 3. evaluation 4. trial 5. adoption
for a new product- these apply to the product category, for new brand in established product category- these apply to the grand
often objective of promo campaign focuses on one particular stage
no matter what: 1. be designed for a well-defined target audience 2. be measurable 3. cover a specified time period |
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3. Setting the promotion Budget: percentage of sales |
this approach, funds are allocated to promotion as a percentage of past or anticipated sales in terms of dollars or units sold. The advantage: its simple and provides a ginancical safeguard by tying the promo budget to sales
downfall: implies that sales cause promotion. a company may reduce promotion because of sales downturn which is when promo is needed most |
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Setting the promotion budget: Competitive Parity budget |
matching the competitor's absolute level of spending or the proportion per point of market share. this approach is also known as matching competitors or share of market. it is important to consider competition in budgeting. Competitor's budget level should not be the only determining factor, the two company's might have different objectives |
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setting the promotion budget: all you can afford |
common in small busineses- this is using the money for promotion after all the other budget items are covered. fiscally conservative, this approach has issues: using this the company acts as though it doesn't know anything about promo-sales relationships or promo objectives |
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setting the promotion budget: objective and task |
best budgeting approach. the company 1. determines its promo objectives 2. outlines tasks it will undertake to reach said objective and 3. determine the promo cost of performing those tasks.
this methods takes into account what company wants and requires. all the strength of other methods are ties to objectives
difficulty: the judgement required to determine the tasks needed. |
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designing the promotion |
advertising: advertising copy and the artwork personal selling: characteristics and skills of salesperson sales promo actives: details of inducments PR: tangible elements like new releases |
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scheduling the promotion |
seasonality and competitive promo activity can have an influence |
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Direct Marketing |
Value of direct marketing measured in terms of repsonses
direct orders: the result of offers that contain all info necessary for a prospective buyer to make a decision to purchase and complete a transaction
lead generation: the result of an ofer designed to generate interest and a request for more info.
traffic generation; the outcome of an offer designed to motivate people to visit a business |
