Marketing 311 – Chapter 17

Promotional Mix
Combo of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it (3) remind them later about the benefits they enjoyed by using the product
Integrated Marketing Communications
Concept of designing marketing communications that coordinates all promotional activities to provide a consistent message across all audiences
Communication
Process of conveying a message to others that require six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding
Source
A company or person who has information to convey during the communication process
Message
Information sent by a source to a receiver during the communication process
Channel of Communication
The means of conveying a message to a receiver during the communication process (advertising media, public relations tools)
Receivers
Consists of consumers who read, hear, or see the message sent by a source during the communication process
Encoding
The process of having the sender transform an idea into a set of symbols during the communication process
Decoding
The process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process
Field of Experience
A mutually shared understanding and knowledge that the sender and receiver apply to a message so that it can be communicated effectively during the communication process
Response
The impact the message had on the receivers knowledge, attitudes, or behaviors during the communication process
Feedback
The senders interpretation of the response, which indicates whether a message was decoded and understood as intended during the communication process
Noise
Extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process
Advertising
Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
Personal Selling
Two way flow of communication, between a buyer and seller, often in a face to face encounter, designed to influence a persons or groups purchase decision
Public Relations
A form of communication management they seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
Publicity
A nonpersonal indirectly paid presentation of an organization, product, or service
Pull Strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
Sales Promotion
A short term inducement of value offered to arouse interest in buying a product or service
Direct Marketing
A promoting alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, of a visit to a retail outlet
Push Strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
Hierarchy of Effects
Sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption.
Percentage of Sales Budgeting
Allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold
Competitive Parity Budgeting
Allocating funds to promotions by matching the competitors absolute level of spending or the proportions per point of market share
All You Can Afford Budgeting
Allocating funds to promotion only after all other budget items are covered
Objective and Task Budgeting
Allocating funds to promotion whereby the company: (determines its promotion objectives; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks
Direct Orders
The result of a direct marketing offer that contains all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
Lead Generation
The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information
Traffic Generation
The outcome of a direct marketing offer designed to motivate people to visit a business