Chapter 17 Integrated Marketing Communications MAR3023

Promotion
Encouragement of the progress, growth, or acceptance of something; furtherance.
In Marketing: Promotion
One of the four elements of the marketing mix. The communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer’s purchasing decision.
Example of promotion:
Remembering your favorite TV ad.
U.S. advertising and sales promotion:
Have risen significantly since 1980.
Proctor and Gamble
Of the top ten advertisers proctor and gamble spend the most money advertising.
AT&T
Spend by far the most money on advertising their brand, next comes Verizon, then Chevrolet.
Advertising:
Is a paid, non-personal communication about an organization and its products transmitted to target audience through mass media.
Personal Selling:
is a paid, personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation.
Public Relations:
is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders.
Sales Promotion:
is an activity or material that acts as a direct inducement offering added value or incentive for the product to resellers, salespeople, or customers, free samples, games, rebates, sweepstakes, contests, premiums, and coupons.
APPS
Advertising, Personal Selling, Public Relations, Sales Promotion
Integrated Marketing Communications:
Coordination of promotion and marketing efforts for maximum impact.
Integrated Marketing Communications example:
Jimmie Johnson wins a race on a Sunday in the outback race car, then you will get a free bloom and onion that next Monday.
Traditional Promotion Mix:
Fits together like a puzzle.
Goals of Integrated Communications: IMC
Consistent message to customers
Coordinate/manage promotional efforts
Synchronization of promotional elements
Use more precisely targeted promotional tools
Targeting guys for diet drinks:
Make can more manly, sponsor sporting events
Push Policy
Promoting a product only to the next institution down the marketing channel. Producer promotes the product to wholesalers, who promote it to retailers, who promote it to consumers. (Trade show and personal selling)
Push Money: “Spiffs”
Extra Commission paid to retail employees to push products
Pull Policy:
Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel.
Pull Policy Example:
Children’s toys such as a kid whining and screaming to his parent for the toy. (Ford Australia only produces a car when one is ordered by a customer; dell did the same thing.
Communication Process:
The process that describes the exchange of information between two or more people. (Messages that are sent through channels, letters, email, in person.)
Elements of Communication:
Source
Encoding
Message Development
Media
Decoding
Feedback
Source:
Person/Organization that has information to share.
Company
Salesperson
Celebrity – Have “Q -Scores”
Q Scores:
(Quality) 2 factors:
-Consumers level of familiarity with a name % who have heard of him/her.
– The number of respondents who indicate that a person or character is a favorite.
– The score is calculated by dividing the two numbers.
– Some argue that Q is better than Nielson.
Encoding:
Process of putting words, thoughts, messages into symbolic form in such a way that they will be understood by the receiver/consumer.
-symbols are particularly good for this: such as the McDonalds golden arches or the Nike symbol.
The Channel:
how the communication travels from the source to the receiver.
Non-personal Channels:
no personal contact with consumer, print broadcasting Billboards.
Personal Channels:
involves direct contact, direct selling, salespeople
WOM
“Buzz Marketing”
Buzz Marketing:
Subset of “Viral Marketing” wherein companies hire socially active consumers to promote products to their friends, relatives, and acquaintances. (Consumers are typically unaware that the person is on the “payroll”
Buzz Marketing ex:
Tremor: PG company that uses teens 13-19 to promote their products.
Decoding:
process of transforming the message back into thought. Key is for the decoded messages to resemble encoded messages. Problems occur if there is too much NOISE!
Decoding gone wrong ex:
Panasonics new web browser “Touch Woody – the internet pecker.”
Feedback:
Final piece of communications process. Receivers response to the message. Can be difficult to assess, one way to get feedback from objective sources
Ad age rates the top 100 campaigns: Volkswagon’s “Think Small” campaign (1959) was #1
Response Models:
the process that receivers must go through before a desired behavior occurs.
Cognitive stage:
the thinking stage where the receiver becomes aware of the message
Affective stage:
the feeling stage where the receiver forms a liking or preference for the ad object
Behavioral Stage:
the “doing” stage where the receiver acts on the preference.
AIDA Model:
developed for personal selling represents the stages a salesperson must takes a customer through to induce purchase attention – interest(Cognition) – desire (Affect) – action (Behavior).