Chapter 16: Integrated Marketing Communications and Direct Marketing

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Promotional Mix
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The combination of one or more of these communications tools: advertising, personal selling, sales promotion, public relations, and direct marketing.
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Integrated Marketing Communications (IMC)
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The concept of designing marketing communications programs that coordinates all promotional activities – advertising, personal selling, sales promotion, public relations, and direct marketing – to provide a consistent message across all audiences to maximize the promotional budget and impact
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Communication
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The process of conveying a message which includes 6 elements Source Message Channel Receiver Encoding Decoding
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Source
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A company or person who has information to convey.
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Message
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The information sent by the source to the receiver.
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Channel
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The means of conveying a message.
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Receiver
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Customer who reads, hears, or sees the message sent.
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Encoding
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The process of having the sending encode a message into a set of symbols.
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Decoding
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The process of having to decode the set of symbol to get the message.
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Field of Experience
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Similar understanding and knowledge; to communicate effectively, a sender and a receiver must have mutually shared fields of experience.
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Response
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The impact the message has on the receiver’s knowledge, attitude, or behaviour
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Feedback
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Communication flow from receiver to sender that helps the sender know whether the message was decoded and understood as intended.
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Noise
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Extraneous factors that can work against effective communication by distorting a message or the feedback received.
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Advertising
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Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.
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Personal Selling
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The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
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Public Relations
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Form of communication that seeks to alter the views and opinions of customers on a company or its products and services.
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Publicity
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A non-personal, indirectly paid presentation of an organization, good, or service
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Sales Promotion
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A short-term inducement of value offered to arouse interest in buying a good or service.
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Direct Marketing
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Promotional Element that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or to visit a retail outlet.
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Stages of a Product Life Cycle
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Introduction, growth, Maturity, decline
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Introduction
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Inform – Publicity, advertising, salesforce calling, free samples.
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Growth
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Persuade – Personal selling, advertising different aspects that separate it from the competition.
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Maturity
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Remind – Reminder advertising, discounts, limited personal selling, mail reminders.
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Decline
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Phase Out – Little money spent on advertising.
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Push Strategy
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Direct the promotional mix to channel members to gain their cooperation in ordering and stocking a product.
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Pull Strategy
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Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product.
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Hierarchy of Effects
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The sequence of stages a prospective buyer goes through, from initial awareness of a product to eventual action Awareness Interest Evaluation trial Adoption
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Percentage of Sales budgeting
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Allocating funds to advertising as a percentage of past or anticipated sales, in terms of either dollars or units sold
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Competitive Parity Budgeting
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Matching the competitors’ absolute level of spending or the promotion per point of market share.
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All-you-can-afford budgeting
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Allocating funds to a promotion only after tall other budget items are covered
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Objective and task budgeting
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A budget approach whereby the company determines its promotional objective, outlines the tasks to accomplish these objectives, and then determines the promotion cost of performing these tasks.
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Direct Orders
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The result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
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Lead Generation
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The result of an offer designed to generate interest in a product or service and a request for additional information.
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traffic Generation
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The outcome of an offer designed to motivate people to visit a business.
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Complexity
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refers to the technical sophistication of the product and hence the amount of understanding required to use it
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Risk
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for the buyer can be assessed in terms of financial, social, and physical
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Ancillary Services
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pertain to the degree of service or support required after the sale
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Pre-purchase Stage
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advertising is more helpful than personal selling because advertising informs the potential customer of the existence of the product and the seller
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Purchase Stage
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the importance of personal selling is highest, whereas the impact of advertising is lowest
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Post-Purchase Stage
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the salesperson is still important. In fact, the more personal contact after the sale, the more the buyer is satisfied. Advertising is also important to assure the buyer that the right purchase was made.

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