Marketing Exam 3 – Ch. 18 (Integrated Marketing Communications and Direct Marketing)

Five Promotional Element Alternatives
1. Advertising
2. Personal Selling
3. Sales Promotion
4. Public Relations
5. Direct Marketing
A combination of one or more of the communication tools.
Promotional Mix
Uses of Communication Tools
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.
Designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.
Integrated Marketing Communications (IMC)
The process of conveying a message to others.
Communication.
Six Elements of Communication
1. Source
2. Message
3. Channel of Communication
4. Receiver
5. Encoding
6. Decoding
A company or person who has information to convey.
Source
The information sent by a source, such as description of a new cellular source.
Message
Means through which a message is conveyed, such as a salesperson, advertising media, or public relations tools.
Channel of Communication
Consumers who read, hear, or see the message.
Receivers
The process of having the sender transform an idea into a set of symbols.
Encoding
The process of having the receiver take a set of symbols, the message, and transform them back into an idea.
Decoding
A similar understanding and knowledge that the sender and receiver apply to the message.
Field of Experience
A line in the communication process diagram that links the response and feedback.
Feedback Loop
The impact the message has on the receiver’s knowledge, attitudes, or behaviors.
Response
The sender’s interpretation of the response, which indicates whether the message has been decoded and understood as intended.
Feedback
Extraneous factors the can work against effective communication by distorting a message or the feedback received.
Noise
Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.
Advertising
Advertising involving mass media which are non-personal and do not have an immediate feedback look as does personal selling
Non-Personal Advertising
The two-way flow of communication between a buyer and seller, designed to influence a purchase decision.
Personal Selling
Communication with consumers who are not in the target audience.
Wasted Coverage
A form of communication management that seeks to influence the feelings, opinions, or beliefs held by consumers about a company’s products or services.
Public Relations
A non-personal, indirectly paid presentation of an organization, good, or service.
Publicity
A short-term inducement of value offered to arouse interest in buying a good or service.
Sales Promotion
Direct communication with consumers to generate a response in the form of an order, a request for further information.
Direct Marketing
Introduction Stage Promotional Objective
To Inform
Growth Stage Promotional Objective
To Persuade
Maturity Stage Promotional Objective
To Remind
Decline Stage Promotional Objective
None. Little money spent on promotion.
Three characteristics of a product to consider in order to achieve the proper blend of the promotional mix
1. Complexity
2. Risk
3. Ancillary Service
The technical sophistication of a product.
Complexity
The degree of service or support required after the sale.
Ancillary Service
Stages of the Buying Decision
1. Pre-purchase
2. Purchase
3. Post-Purchase
Channel Strategies
1. Push Strategy
2. Pull Strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
Push Strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product.
Pull Strategy
Four W’s to Develop Promotion Program
1. Who is the target audience
2. What are:
– The promotion objectives
– The amounts of money that can be budgeted for the promotional program
– The kinds of promotion used
3. Where should the promotion run
4. When should the promotion run
The group of prospective buyers toward which a promotion program is directed.
Target Audience
The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action.
Hierarchy of Effects
Five Stages of the Hierarchy of Effects
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
The consumer’s ability to recognize and remember the product or brand name.
Awareness
An increase in the consumer’s desire to learn about some of the features of the product or brand.
Interest
The consumer’s appraisal of the product or brand on important attributes.
Evaluation
The consumer’s actual first purchase and use of the product or brand.
Trial
Through favorable experience on the first trial, the consumer’s repeated purchase and use of the product or brand.
Adoption
Methods used to set the promotion budget
1. Percentage of Sales
2. Competitive Parity
3. All You Can Afford
4. Objective and Task
Matching the competitor’s absolute level of spending or the proportion per unit of market share.
Competitive Parity
When money is allocated to promotion only after all other budget items are covered.
All You Can Afford
When the company
– determines its promotion objectives
– outlines the tasks to accomplish these objectives
– determines the promotion cost of performing these tasks
Objective and Task
The result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Direct Orders
The result of an offer designed to generate interest in a product or service and a request for additional information.
Lead Generation
The outcome of an offer designed to motivate people to visit a business.
Traffic Generation