Chapter 17: Integrated Marking Communications and Direct Marketing

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

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