Chapter 17: Integrated Marking Communications and Direct Marketing

question
The promotional elements consist of 5 communication tools:
answer
advertising, personal selling, sales promotion, public relations, and direct marketing
question
promotional mix
answer
combination of one or more of these communication tools
question
Integrated marketing communication
answer
designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences
question
Communication
answer
process of conveying a message to others
question
What are the six elements of communication
answer
source, a message, a channel of communication, a receiver, encoding, and decoding
question
Source
answer
company or person who has information to convey
question
message
answer
the information sent by the a source
question
channel of communication
answer
the message is conveyed by something or someone
question
receivers
answer
consumers who read, hear, or see the message
question
encoding
answer
process of having the sender transform an idea into a set of symbols
question
decoding
answer
reverse, or the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea
question
field of experience
answer
a similar understanding and knowledge they apply to the message.
question
response
answer
is the impact a message had on the receiver's knowledge, attitudes, or behaviors
question
feedback
answer
is the sender's interpretation of the response and indicates whether the message was decoded and understood as intended
question
Noise
answer
extraneous factors that can work against effective communication by distorting the message or the feedback received
question
mass selling (advertising, sales promotion, and public relations)
answer
are often said to use this because they are used with groups of prospective buyers
question
customized interaction (personal selling)
answer
between a seller and a prospective buyers
question
advertising
answer
any paid form of non personal communication about an organization, product, service, or ida by an identified sponsor
question
advantages to advertising
answer
it can be an attention getter, efficient means of reaching a large number of people
question
disadvantage of advertising
answer
high absolute cost, difficult to receive good feedback
question
personal selling
answer
the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision
question
advantages to personal selling
answer
immediate feedback, very persuasive, can select audience, and can give complex information
question
disadvantages of personal selling
answer
extremely expensive per exposure, and messages may differ between salespeople
question
wasted coverage
answer
communication with consumers who are not in the target audience
question
public relations
answer
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stock holders, suppliers, employees and other publics
question
publicity
answer
non personal, indirectly paid persecution of an organization, product, or service
question
advantages of public relations
answer
often more credible source in the consumers mind
question
disadvantage of public relations
answer
difficult to get media cooperations, no guarantee that the media coverage will be good
question
sales promotion
answer
a short-term inducement of value offered to arouse interest in buying a product or service
question
advantage to sales promotion
answer
effective at changing behavior in short run (coupons), and very flexible
question
disadvantage to sales promotion
answer
easily abused, can lead to promotion wars, and easily duplicated
question
direct marketing
answer
uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to retail outlet
question
advantages to direct marketing
answer
messages can be prepared quickly, facilitates relationship with customer
question
disadvantages to direct marketing
answer
declining customer response, and database management is expensive
question
in putting together the promotional mix a marketer must consider two issues:
answer
first the balance of elements must be determined, and coordinating a consistent promotional effort is necessary
question
promotional programs are directed to whom?
answer
the ultimate consumer and or the target audience
question
The product life cycle
answer
introduction stage, growth stage, maturity stage, and decline stage
question
what is the primary promotional objective in the introduction stage?
answer
informing consumers in an effort to increase their level of awareness
question
what is the primary promotional objective of the growth stage
answer
persuade consumers to buy the product rather than substitutes, so the marketing manager seeks to gain brand preference and solidify distribution
question
what is not in the growth stage?
answer
sales promotion, and publicity is not a factor
question
what is the primary promotional element in the growth stage?
answer
advertising
question
what is the primary promotional objective of the maturity stage?
answer
the need to maintain existing buyers, and advertising's role is to remind buyers of the product's existence
question
what is the primary promotional objective decline stage?
answer
usually a period of phaseout for the product, and little money is spent in the promotional mix
question
complexity
answer
refers to the technical sophistication of the product and hence the amount of understanding required to use it.
question
risk
answer
for the buyer can be assessed in terms of financial risk, social risk, and physical risk
question
ancillary service
answer
pertain to the degree of service or support required after the salem
question
The stages of the buying decision:
answer
prepurchase stage, purchase stage, post purchase stage
question
Prepurchase stage:
answer
advertising is more helpful than personal selling because advertising informs the potential customer of the existence of the product and the seller.
question
purchase stage
answer
the importance of personal selling is highest, and advertising is lowest. Social media can play an important role in the final decision
question
post purchase stage
answer
the salesperson isn important, advertising is important to assure the buyer that the right purchase was made.
question
Channel Strategies
answer
push and pull strategy
question
push strategy
answer
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
question
what plays major roles in the push strategy?
answer
personal selling and sales promotion
question
pull strategy
answer
directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product
question
a good example of a pull strategy would be pharmaceutical companies using direct to customer prescription drug advertising and using the consumer to ask for a drug directly, thus pulling the medicine through the channel
answer
question
Development of the promotion program focuses on the four Ws, which are?
answer
who is the target audience, what are the promotional objectives, the amounts of money that can be used for budgeted for the promotional program, and the kinds of promotion used. where should the promotion run, when should the promotion run
question
The first step in developing the promotion program involves identifying the target audience which is
answer
the group of prospective buyers toward which a promotion program will be directed
question
hierarchy of effects
answer
the sequence of stags a prospective buyer goes through from initial awareness of a product to eventual action
question
what is the sequence in the hierarchy of effects
answer
awareness, interest, evaluation, trial, an adoption
question
the third step in developing the promotional program is setting a budget which
answer
difficult because there is no precise way to measure the exact results of spending promotion dollars
question
percentage of sales budgeting
answer
fun are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
question
competitive parity budgeting
answer
matching the competitor's absolute level of spending or the proportion per point of market share
question
all you can afford budgeting
answer
money is allocated to promotion only after all other budget items are covered
question
objective and task budging
answer
the company determines it promotion objectives, outlines the tasks it will undertake to accomplish those objectives, and determines the promotion cost of performing those task.
question
once a budget has been determined, the combination of the five basic IMC tools- advertising, personal selling, sales promotion, pr, and direct marketing- can be specified
answer
question
the central element of a promotion program is what?
answer
the promotion itself
question
once the design of each of the promotional program elements is complete, what happens?
answer
is is important to determine the most effective timing of their use
question
direct orders
answer
are the result of offers ate contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
question
lead generation
answer
is the result of an offer designed to generate interest in a product of service and request for additional information
question
traffic generation
answer
outcome of an offer designed to motivate people to visit a business.
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question
The promotional elements consist of 5 communication tools:
answer
advertising, personal selling, sales promotion, public relations, and direct marketing
question
promotional mix
answer
combination of one or more of these communication tools
question
Integrated marketing communication
answer
designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences
question
Communication
answer
process of conveying a message to others
question
What are the six elements of communication
answer
source, a message, a channel of communication, a receiver, encoding, and decoding
question
Source
answer
company or person who has information to convey
question
message
answer
the information sent by the a source
question
channel of communication
answer
the message is conveyed by something or someone
question
receivers
answer
consumers who read, hear, or see the message
question
encoding
answer
process of having the sender transform an idea into a set of symbols
question
decoding
answer
reverse, or the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea
question
field of experience
answer
a similar understanding and knowledge they apply to the message.
question
response
answer
is the impact a message had on the receiver's knowledge, attitudes, or behaviors
question
feedback
answer
is the sender's interpretation of the response and indicates whether the message was decoded and understood as intended
question
Noise
answer
extraneous factors that can work against effective communication by distorting the message or the feedback received
question
mass selling (advertising, sales promotion, and public relations)
answer
are often said to use this because they are used with groups of prospective buyers
question
customized interaction (personal selling)
answer
between a seller and a prospective buyers
question
advertising
answer
any paid form of non personal communication about an organization, product, service, or ida by an identified sponsor
question
advantages to advertising
answer
it can be an attention getter, efficient means of reaching a large number of people
question
disadvantage of advertising
answer
high absolute cost, difficult to receive good feedback
question
personal selling
answer
the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision
question
advantages to personal selling
answer
immediate feedback, very persuasive, can select audience, and can give complex information
question
disadvantages of personal selling
answer
extremely expensive per exposure, and messages may differ between salespeople
question
wasted coverage
answer
communication with consumers who are not in the target audience
question
public relations
answer
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stock holders, suppliers, employees and other publics
question
publicity
answer
non personal, indirectly paid persecution of an organization, product, or service
question
advantages of public relations
answer
often more credible source in the consumers mind
question
disadvantage of public relations
answer
difficult to get media cooperations, no guarantee that the media coverage will be good
question
sales promotion
answer
a short-term inducement of value offered to arouse interest in buying a product or service
question
advantage to sales promotion
answer
effective at changing behavior in short run (coupons), and very flexible
question
disadvantage to sales promotion
answer
easily abused, can lead to promotion wars, and easily duplicated
question
direct marketing
answer
uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to retail outlet
question
advantages to direct marketing
answer
messages can be prepared quickly, facilitates relationship with customer
question
disadvantages to direct marketing
answer
declining customer response, and database management is expensive
question
in putting together the promotional mix a marketer must consider two issues:
answer
first the balance of elements must be determined, and coordinating a consistent promotional effort is necessary
question
promotional programs are directed to whom?
answer
the ultimate consumer and or the target audience
question
The product life cycle
answer
introduction stage, growth stage, maturity stage, and decline stage
question
what is the primary promotional objective in the introduction stage?
answer
informing consumers in an effort to increase their level of awareness
question
what is the primary promotional objective of the growth stage
answer
persuade consumers to buy the product rather than substitutes, so the marketing manager seeks to gain brand preference and solidify distribution
question
what is not in the growth stage?
answer
sales promotion, and publicity is not a factor
question
what is the primary promotional element in the growth stage?
answer
advertising
question
what is the primary promotional objective of the maturity stage?
answer
the need to maintain existing buyers, and advertising's role is to remind buyers of the product's existence
question
what is the primary promotional objective decline stage?
answer
usually a period of phaseout for the product, and little money is spent in the promotional mix
question
complexity
answer
refers to the technical sophistication of the product and hence the amount of understanding required to use it.
question
risk
answer
for the buyer can be assessed in terms of financial risk, social risk, and physical risk
question
ancillary service
answer
pertain to the degree of service or support required after the salem
question
The stages of the buying decision:
answer
prepurchase stage, purchase stage, post purchase stage
question
Prepurchase stage:
answer
advertising is more helpful than personal selling because advertising informs the potential customer of the existence of the product and the seller.
question
purchase stage
answer
the importance of personal selling is highest, and advertising is lowest. Social media can play an important role in the final decision
question
post purchase stage
answer
the salesperson isn important, advertising is important to assure the buyer that the right purchase was made.
question
Channel Strategies
answer
push and pull strategy
question
push strategy
answer
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
question
what plays major roles in the push strategy?
answer
personal selling and sales promotion
question
pull strategy
answer
directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product
question
a good example of a pull strategy would be pharmaceutical companies using direct to customer prescription drug advertising and using the consumer to ask for a drug directly, thus pulling the medicine through the channel
answer
question
Development of the promotion program focuses on the four Ws, which are?
answer
who is the target audience, what are the promotional objectives, the amounts of money that can be used for budgeted for the promotional program, and the kinds of promotion used. where should the promotion run, when should the promotion run
question
The first step in developing the promotion program involves identifying the target audience which is
answer
the group of prospective buyers toward which a promotion program will be directed
question
hierarchy of effects
answer
the sequence of stags a prospective buyer goes through from initial awareness of a product to eventual action
question
what is the sequence in the hierarchy of effects
answer
awareness, interest, evaluation, trial, an adoption
question
the third step in developing the promotional program is setting a budget which
answer
difficult because there is no precise way to measure the exact results of spending promotion dollars
question
percentage of sales budgeting
answer
fun are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
question
competitive parity budgeting
answer
matching the competitor's absolute level of spending or the proportion per point of market share
question
all you can afford budgeting
answer
money is allocated to promotion only after all other budget items are covered
question
objective and task budging
answer
the company determines it promotion objectives, outlines the tasks it will undertake to accomplish those objectives, and determines the promotion cost of performing those task.
question
once a budget has been determined, the combination of the five basic IMC tools- advertising, personal selling, sales promotion, pr, and direct marketing- can be specified
answer
question
the central element of a promotion program is what?
answer
the promotion itself
question
once the design of each of the promotional program elements is complete, what happens?
answer
is is important to determine the most effective timing of their use
question
direct orders
answer
are the result of offers ate contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
question
lead generation
answer
is the result of an offer designed to generate interest in a product of service and request for additional information
question
traffic generation
answer
outcome of an offer designed to motivate people to visit a business.