GB214 Marketing Chapter 8

AOR (Agency of Record) Relationship
A relationship where the client pays a monthly retainer fee to an agency for creative services
Promotion
The coordination of a marketer’s communication efforts to influence attitudes or behavior
Integrated Marketing Communication (IMC)
A strategic business process that markers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences
Multichannel Promotional Strategy
A marketing communication strategy where they combine traditional advertising, sales promotion, and public relations activities with online buzz-building activities
Word-of-Mouth Communication
When consumers provide information about products to other consumers
Communication Model
The process whereby meaning is transferred from a source to a receiver
Encoding
The process of translating an idea into a form of communication that will convey meaning
Source
An organization or individual that sends a message
Message
The communication in physical form that goes from a sender to a receiver
Medium
A communication vehicle in physical form that goes from a sender to a receiver
Receiver
The organization or individual that intercepts and interprets the message
Decoding
The process by which a receiver assigns meaning to the message
Noise
Anything that interferes with effective communication
Feedback
Receivers’ reactions to the message
Promotion Mix
The major elements of marketer-controlled communication, including advertising, sales promotion, public relations,personal selling, and direct marketing
Mass Communication
Relates to television, radio, magazines, and newspapers
Advertising
Nonpersonal communication from an identified sponsor using the mass media
Groundswell
A social trend in which people use technology to get the things they need from each other, rather than from traditional institutions like corporations
Buzz
Word-of-mouth communication that customers view as authentic
Viral Marketing
Marketing activities that aim to increase brand awareness or sales by consumers passing a message along to other consumers
Stealth Marketing
Any practice designed to deceive people about the involvement of marketers in a communication
Shilling
Pay people to talk about (or promote) a product without disclosing that they are working for the company; impersonate a customer
Infiltration
Use fake identities in an online discussion to promote a product; take over a Web site, conversation, or live event against the wishes or rules set by the propreitor
Comment Spam
Use automated software (“bots”) to post unrelated or inappropriate comments to blogs or other online communities
Defacement
Vandalize or damage property to promote a product
Spam
Send bulk or unsolicited e-mail or other messages without clear, voluntary permission
Falsification
Knowingly disseminate false or misleading information
Brand Ambassadors or Brand Evangelists
Loyal customers of a brand recruited to communicate and be salespeople with other consumers for a brand they care a great deal about
Social Media
Internet-based platforms that allow users to create their own content and share it with others who access their sites
Social Networks
Sites used to connect people with other similar people
Twitter
A free microblogging service that lets users post short text messages with a maximum of 140 characters
Virtual Worlds
Online, highly engaging digital environments where avatars live and interact with other avatars in real time
Avatars
Graphic representations of users of virtual worlds
Virtual Goods
Digital products bought and sold in virtual worlds that don’t exist in the real world
Product Review Sites
Social media sites that enable people to post stories about their experiences with products and services
Geospatial Platforms
Digital applications that integrate sophisticated GPS technology to enable users to alert friends of their exact whereabouts via their mobile phones
Hierarchy of Effects
A series of steps prospective customers move through, from initial awareness of a product to brand loyalty
Top-Down Budgeting
Allocation of the promotion budget based on management’s determination of the total amount to be devoted to marketing communication
Percentage-of-Sales Budgeting Method
A method for promotion budgeting that is based on a certain percentage of either last year’s sales or on estimates of the present year’s sales
Competitive-Parity Budgeting Method
A promotion budgeting method in which an organization matches whatever competitors are spending
Bottom-Up Budgeting Techniques
Allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them
Objective-Task Method
A promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotion efforts it will take to meet these goals
Push Strategy
The company tries to move its products through the channel by convincing channel members to offer them
Pull Strategy
The company tries to move its products through the channel by building desire for the products among consumers, thus convincing retailers to respond to this demand by stocking these items
AIDA Model
The communication goals of attention, interest, desire, and action