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88 Cards in this Set
- Front
- Back
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Promotion
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Function of informing, persuading, and influencing the consumer’s purchase decision
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Marketing communications
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Messages that deal with buyer-seller relationships
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Integrated marketing communications (IMC)
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Coordination of all promotional activities to produce a unified, customer- focused promotional message
Teamwork involves both in-house resources and outside vendors challenges the traditional role of the outside advertising agency |
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Figure16.1 - Integrated Marketing Communications (IMC)
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Role of Databases in Effective IMC Programs |
The Internet allows companies to gather information faster and organize it easily
Direct sampling is a frequently used method to obtain customer opinions |
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Sender
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Source of the message communicated to the receiver
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Message
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Communication of information, advice, or a request by the sender to the receiver
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An effective message does three things
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Gains the receiver’s attention
Achieves understanding by both sender and receiver Stimulates receiver’s needs and suggests appropriate methods of satisfying them |
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AIDA
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Steps through which an individual reaches a purchase decision: attention, interest, desire, and action
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Encoding
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Translating a message into understandable terms
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Decoding
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Receiver’s interpretation of a message
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Relating Promotion to the Communication Process
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Feedback
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Receiver’s response to a message
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Noise
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Interference at some stage in the communication process
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Channel
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Medium through which a message is delivered
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Promotional mix
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Subset of the marketing mix in which marketers attempt to:
Achieve the optimal blending of the elements of personal and nonpersonal selling to achieve promotional objectives |
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Personal Selling
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Interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyer
Oldest form of promotion Currently, nearly 15 million people in the U.S. have careers in personal sales and related occupations |
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Non Personal Selling: Advertising
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Any paid, nonpersonal communication about a business good
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Non Personal Selling:Product placement
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Marketer pays a motion picture owner a fee to display his or her product prominently in the film or show
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Non Personal Selling:Sales promotion
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Marketing activities that stimulate consumer purchasing and dealer effectiveness
Does not include personal selling, advertising, guerrilla marketing, and public relations |
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Non Personal Selling:Trade promotion
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Sales promotion geared to marketing intermediaries
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Non Personal Selling:Direct marketing
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Use of direct communication to a consumer or business recipient designed to generate a response in the form of:
An order Lead generation Traffic generation |
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Non Personal Selling:Public relations
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Firm’s communications and relationships with its various publics
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Nonpersonal Selling: Publicity
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Nonpersonal stimulation of demand for a good by unpaid placement of significant news
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Guerrilla marketing
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Unconventional, innovative, and low-cost techniques to get consumers’ attention
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Promotional Mix Elements: A Comparison
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Sponsorships
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Relationship in which an organization provides funds to an event in exchange for a direct association with that event
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Sponsor purchases:
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Access to the event’s audience
The image associated with the activity |
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How Sponsorship Differs from Advertising
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Cost-effectiveness
Sponsor’s degree of control versus that of advertising Nature of the message |
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Product advertising
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Nonpersonal selling of a particular good or service
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Institutional advertising
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Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency
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Informative advertising
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Seeks to develop initial demand for a good, service, organization, person, place, idea, or cause
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Persuasive advertising
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Attempts to increase demand for an existing good, service, organization, person, place, idea, or cause
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Reminder advertising
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Reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public
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Advertising Objectives in Relation to Stage in the Product Lifecycle
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Comparative advertising
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Emphasizes messages with direct or indirect promotional comparisons between competing brands
Used by firms whose products are not market leaders Advertising by market leaders seldom acknowledge existence of competing products |
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Advertising Strategies: Celebrity testimonials
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Can improve product recognition
A celebrity who endorses too many products may create marketplace confusion |
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Retail advertising
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Advertising by stores that sell goods or services directly to the consuming public
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Cooperative advertising
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Retailer shares advertising costs with a manufacturer or wholesaler
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Interactive Advertising
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Two-way promotional messages transmitted through communication channels
Induce message recipients to participate actively in the promotional effort Provides information throughout the purchase and consumption processes |
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Creating an Advertisement
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Must create effective ads that increase sales and enhance the organization’s image
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An ad needs to accomplish:
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Educating consumers about product featuresEnhancing brand loyalty
Improving consumer perception of the brand |
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Elementsof the Advertising Planning Process
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Advertising campaign
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Series of different but related ads that use a single theme and appear in different media within a specified time period
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Advertising Appeals
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Fear appeals
Humor in advertising messages Ads based on sex Shock Advertising |
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Developing and Preparing Ads Goals:
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Gain attention and interest
Inform or persuade Lead to purchase or other desired action After conceiving an idea, ads must be refined from rough sketch to finished layout |
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Creating Interactive Ads
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Advergames
Missiles Keyword ads Adware Social network advertising Narrowcasting |
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Television
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Mass coverage
Powerful impact on viewers, repetition of messages Flexibility, and prestige |
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Radio Advantages&Disadvantages
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Advantages
Ability to reach people while they drive because they are a captive audience Benefits include low cost, flexibility, and mobility Disadvantages Highly segmented audiences, The temporary nature of messages A minimum of research information compared with television |
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Newspapers Advantages&Disadvantages
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Advantages
Flexible Intensive coverage for ads Can refer back to newspaper ads Disadvantages Hasty reading Relatively poor reproduction quality |
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Magazines Advantages&Disadvantages
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Consumer magazines and business magazines
Advantages The ability to reach precise target marketsQuality reproduction Long lifePrestige associated with some magazines Disadvantage Lack flexibility |
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Direct mail Advantages&Disadvantages
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Advantages
Ability to segment large numbers of prospective customers Flexible Detailed information Personalization Disadvantages High cost per reader Reliance on the quality of mailing listsConsumers’ resistance |
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Outdoor advertising : Traditional
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Billboards and painted displays
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Outdoor advertising : Transit advertising
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Ads placed inside and outside buses, subway trains, commuter trains, and stations
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Interactive Media
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Internet and social media sites
Augmented reality - Virtual imaging can be incorporated into real-time video on a mobile phone |
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Other Advertising Media
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Total Immersion’s D’Fusion system
Ads appear on T-shirts, on store flooring, in printed programs of live theater productions, and as previews on movie DVDs |
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Media Scheduling
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Setting the timing and sequence for a series of advertisements
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Influenced by a variety of factors
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Seasonal sales patterns
Repurchase cycles Competitors’ activities |
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Nonmarketing public relations
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A company’s messages about general management issues
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Marketing public relations (MPR)
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Focused public relations activities that directly support marketing goals
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Publicity
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Nonpersonal stimulation of demand for a good by unpaid placement of significant news
Many consumers consider news stories more credible than advertisements |
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Cross-Promotion
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Marketing partners share the cost of a promotional campaign that meets their mutual needs
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Ethics and Promotional Strategies
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Advertising to children
Insertion of product messages in media programs without full disclosure Use of cookies in online advertising |
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Puffery
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Exaggerated claims of a product’s superiority
Use of subjective or vague statements that may not be literally true The Uniform Commercial Code standardizes sales and business practices throughout the United States |
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Ethics in Public Relations
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Issues include performing services for companies that produce unsafe products
The Public Relations Society of America’s Code of Professional Standards prohibits: Promoting products or causes widely known to be harmful |
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Marketers create a promotional mix by:
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Blending advertisingPersonal sellingSales promotionPublic relations
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Nature of the Market
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Market’s target audience
Personal selling can be highly effective if the market has a limited number of buyers Type of customer |
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Nature of the Product
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Consumer products rely more on advertising than business products
Personal selling is important for shopping products Personal and nonpersonal selling are important in the promotion of specialty items |
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Introduction
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Nonpersonal and personal selling
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Growth and maturity
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Advertising and personal selling
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Maturity and early
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Reduction in advertising and sales promotion
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Price
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Advertising dominates for low-unit-value products
Personal selling involves high per-contact costs A real barrier in implementing any promotional strategy is the size of the promotional budget |
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Funds Available for Promotion
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Percentage-of-sales method
Fixed-sum-per-unit method Meeting competition method Task-objective method |
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Evaluating Promotional Effectiveness
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Direct sales results test
Indirect evaluation |
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Measuring Advertising Effectiveness
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Cost per thousand impressions (CPM)
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By measuring promotional effectiveness:
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Organizations can evaluate different strategiesPrevent mistakes before spending money on specific programs
Improve their promotional programs |
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Media research
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Assesses how well a particular medium delivers a message
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Message research
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Tests consumer reactions to an advertisement’s creative message
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Pretesting
Posttesting |
Readership tests
Unaided recall tests Inquiry tests |
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Split runs
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Allow advertisers to test two or more ads at the same time
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Measuring Public Relations Effectiveness: The simplest and least costly method:
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Whether the target audience received messages directed to them
Count the number of media placements and gauge the extent of media coverage Conduct focus groups, interview opinion leaders |
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Evaluating Interactive Media: Hits
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User requests for a file
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Evaluating Interactive Media: Impressions
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Number of times a viewer sees an ad
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Evaluating Interactive Media: Click-throughs
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User clicks ad for more information
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Evaluating Interactive Media: View-through
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Measures response over time
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Evaluating Interactive Media: Cost per impression
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Relates the cost of an ad to every thousand people who view it
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Evaluating Interactive Media: Cost per response (click-through)
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Relates the cost of an ad to the number of people who click it
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Evaluating Interactive Media: Conversion rate
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Percentage of visitors to a Web site who make a purchase
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