Promotional Marketing Exam #1

Human communication process model
Source (sender), Encoding, Message, Channel, Decoding, Receiver, Response, Feedback
IMC
integrated marketing communications
Definition of IMC
Strategic business process that is generated for both short-term financial returns and build long-term brand and shareholder value.
Definition of brand
name, term, sign, symbol, design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitions
Definition of brand equity
intangible asset of added value or the goodwill that results from the favorable image, impressions or differentiation, and strength of consumer attachment to a brand.
Positive outcomes of brand equity
1. achieving a higher market share
2. increasing brand loyalty
3.being able to charge premium prices
4. earning a revenue premium
Brand association
images and symbols associated with a brand or a brand benefit. example: the nike swoosh
Brand awareness
whether a brand comes to mind when consumers think about a particular product category
when using IMC to build long-term brand value, focus on…
1. enhancing brand awareness
2. creating and maintaining favorable, strong, and unique associations
Marketing objectives
Refer to what is about to be accomplished by the overall marketing program. They are often stated in terms of sales, market share, or profitability.
Communication objectives
Refer to what the firm seeks to accomplish with its promotional program. They may include creating awareness or knowledge about a product and its attributes or benefits; creating an image; or developing favorable attitudes, preferences, or purchase intentions.
Promotional mix
advertising, sales promotion, publicity/PR, personal selling, direct marketing, interactive/internet marketing
Advertising classification
Consumers: national, retail/local, primary/ selective demand
Organizations: business-to-business, professional, trade
Sales promotion definition
marketing activities that provide extra value or incentives to the sales force, retailers, and ultimate consumer
Consumer-oriented
couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials. Encourages immediate purchases
Trade-oriented
Promotional/merchandising allowances, price deals, sales contests, trade shows. Wholesalers, distributors, retailers
Publicity
-a news story, editorial, or announcement to a mass audience
-high credibility and low cost
-sometimes unfavorable
-not always under company control
PR
Management Function:
-evaluates public attitudes
-identifies items of public interest
-executes a program of action to earn public understanding and acceptance

Primary objectives:
-Establish and maintain a positive image of the company among various publics

What are market opportunities?
-there are favorable demand trends
-customer needs are not being satisfied
-the company can compete effectively
Competitive advantage
something special a firm does or has that gives it an edge over competitors

Direct competition vs. indirect competition

The target marketing process
1. identifying markets with unfulfilled needs
2. Determining market segmentation
3. selecting markets to target
4. positioning
Market segmentation
dividing up a market into distinct groups that have common needs and will respond similarly to a marketing action
consumer behavior
the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.
consumer decision making process
motivation, perception, attitude formation, integration, learning
ways to change attitudes
1. change beliefs about an important attribute
2. change perceptions of the value of an attribute
3. add a new attribute to the attitude formation mix
4. change perceptions or beliefs about a competing brand