Marketing an Introduction Chapter 12

Promotion Mix (Or marketing communications mix)
The specific blend of promotion tools that the company use to persuasively communicate customer value and build customer relationships
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Sales Promotion
Short-term incentives to encourage the purchase or sale of a product or service
Personal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
Public Relations
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Direct Marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Integrated marketing communications (IMC)
Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
Push Strategy
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers
Pull Strategy
A promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel
Advertising Objective
A specific communication task to be accomplished with a specific target audience during a specific period of time. The overall advertising goal is to help build customer relationships by communicating customer value
Advertising Budget
The dollars and other resources allocated to a product or company advertising program
Affordable Method
Setting the promotion budget at the level management thinks the company can afford
Percentage of sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
Competitive parity method
Setting the promotion budget to match the competitors’ outlays
Objective and task method
Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget
Advertising Strategy
The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media
Madison and Vine
A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages
Creative Concept
The compelling “big idea” that will bring the advertising message strategy to life in a distinctive and memorable way
Execution Style
The approach, style, tone, words, and format ised for executing an advertising message
Advertising Media
The vehicles through which advertising messages are delivered to their intended audiences
Return on advertising investment
The net return on advertising investment divided by the costs of the advertising investment
Advertising Agency
A marketing services firm that assists companies in planning, preparing, implementing , and evaluating all or portions of their advertising programs