Advertising and Promotion — CH. 1

Personal Selling
a seller attempts to assist and/or persuade people to purchase the companies product or to act on an idea. – Involves direct contact between buyer and seller where the seller can see or hear the buyer’s reaction → telephone sales, Mary Kay cosmetics, AVON.
Public Relations
to establish and maintain a public image of a company among the public — uses publicity and other tools → community activities, fund-raising events, sponsorships
publicity
Not directly paid for or run under identified sponsor – it’s a news story, editorial, or announcement to a mass audience. – sometimes unfavorable, high credibility/low cost – Charlie Sheen
sales promotion
Marketing activities that provide extra value or incentives to the sales force, retailers, and consumer. → can stimulate immediate sales. sampling
interactive media
allow for a back and forth flow of information where users can participate and modify the form and content of the information they receive. – Advertising is a two-way communications process now because now consumers can comment back to company.
→ Internet, kiosks, interactive television, cell phones, mobile devices
Two categories of Sales Promotion
a. Consumer oriented sales promotion: targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, etc.

b. Trade-oriented sales promotion – Promotional/merchandising allowances, price deals, sales contests, trade shows – targeted to wholesalers, distributors, and retailers

advertising
any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. → No immediate feedback from the audience, which is what makes it inpersonal. – you can’t talk back to a commercial
direct marketing
communicating directly with target customers to generate a response or a transaction.
→Direct mail, catalogs, direct response ads, telemarketing, direct selling, database management, shopping channels, Internet sales — encourages people to buy
Direct response Advertising
A form of advertising for a product or service that elicits a sales response directly from the advertiser
Promotional Mix
tools used to accomplish a company’s communications objectives:

1. advertising
2. direct marketing
3. sales promotion
4. publicity/public relations
5. personal selling
6. Internet/interactive media

promotion
the coordination of all seler-initiated efforts to set up channels of information and persuasion to sell goods and services to promote an idea
integrated marketing communications
book definition: business process used to develop, execute and evaluate coordinated, measurable, and persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences.

***The goal is to generate both short-term financial returns and build long-term brand and shareholder value.

Power-point: Series of ads and promotions that communicate a central theme or idea → Might include advertising, direct response advertising, sales promotion, PR, Internet advertising, etc.

marketing mix
the controllable elements of marketing

1. product
2. place
3. promotion
4. price

customer relationship management
programs which involve the systematic tracking of consumers preferences and behaviors and modifying the product or service offer as much as possible to meet individual needs and wants
mass customization
a process whereby a company makes a product or delivers a service in response to a particular customers needs in a cost-effective way
relationship marketing
an company’s effort to make a long-term, cost effective link with individual customers for mutual benefit
value
the customer perception of all the benefits of a product or service weighed against the costs of acquiring and consuming it
marketing
the activities set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
exchange
trade of something of value between the two parties such as a product or service for money

–> the core phenomenon domain for the study of marketing

integrated marketing communications management
process of planning, executing, evaluating, and controlling, the use of various promotional mix elements to effectively communicate with a target audience
superior customer value
includes quality products and services that are competitively priced, convenient to purchase, delivered on time, and supported by excellent customer service
integration
new advertising, orchestration, seamless communication
brand identity
name, logo, symbols, design, packaging, and performance of a product or any type of association that first come to mind when someone thinks of a brand
traditional advertising vs. IMC
1. A shift of marketing budget going from media advertising (tv, radio, newspaper,etc) to other forms of promotion – particularly consumer- and trade- oriented sales promotions.

2. Movement away from relying on advertising-focused approaches, which emphasize mass media such as TV and magazines to solve communications problems – Companies are now turning to lower-cost, more targeted communication tools such as event marketing and sponsorships, direct mail, sales promotion, and the Internet to develop their marketing communications strategies.

3. Shift in marketplace power from manufacturers to retailers –

4. Demands for greater accountability from advertising agencies and changes in the way agencies are compensated – companies are moving toward incentive-based systems whereby compensation of their ad agencies is based on sales, market share, and profitability.

5. Rapid growth of the internet – changing how companies do business and the way they communicate and interact with customers

audience contact perspective
consider all the potential ways of reaching a target audience and presenting the company/brand in a favorable manner
marketing plan
a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line or a brand
internal analysis
assesses the relevant areas involving the product/service and the firm itself
steps of a marketing plan
1. review marketing plan
2. analysis of promotional program situation
3. analysis of communication process
4. budget determination
5. develop integrated marketing communication program
6. integrate and implement marketing communications strategies
7. monitor, evaluate, and control integrated marketing communications program
external analysis
focus’s on factors such as characteristics of the firms customers, market segments, positioning strategies, and competitors

-> customer buying patterns, decision processes, factors influencing purchase decisions

communications objectives
refer to what the firm seeks to accomplish with its promotional program
marketing objectives
defined in terms of specific, measurable, outcomes such as sales volume, market share, profits, or return on investment. – Good marketing objectives are quantifiable – always note the time frame for accomplishing the goal. – MUST be realistic and attainable

EXAMPLE : To increase sales by 10 percent in the small-business segment of the market during the next 12 months”

sales objectives
major objective of most sales promotion programs is to generate short-term increases in sales.
creative strategy
the basic appeal and message the advertiser wishes to convey to the target audience
media strategy
determining which communications channels will be used to deliver the advertising message to the target audience