Chapter 6 Integrated Marketing Communications – Flashcards

1.) Advertising - One-way sponsored communications directed at a target audience (market segment) 2.) Sales Promotion - Special deals offered to induce purchase (e.g., discounts, rebates, coupons, sweepstakes) 3.) Personal Selling - Two-way person-to-person communications between a vendor and current or prospective buyer 4.) Each has unique characteristics, purposes, and capabilities ***Usually used in some combination

one-way sponsored communications directed at a target audience (Market Segment)

Special deals offered to induce purchase (Discounts, rebates, coupons, and sweepstakes)

Two-way person-to-person- communications between a vendor and current or prospective buyer.

Communication objectives must speak to buyers' information needs -High versus low purchase involvement, determined by: -Perceived risk -Financial -Functional -Social -Elaboration Likelihood Model

-Showrooming -Web-rooming -Omni-channel branding -Word of mouth -Word of mouse

The risk brought on by doing business with your company compared to doing business with one of your competitors.

The Elaboration Likelihood Model claims that there are two paths to persuasion: the central path and the peripheral path. The central path is most appropriately used when the receiver is motivated to think about the message and has the ability to think about the message. If the person cares about the issue and has access to the message with a minimum of distraction, then that person will elaborate on the message. Lasting persuasion is likely if the receiver thinks, or rehearses, favorable thoughts about the message. A boomerang effect (moving away from the advocated position) is likely to occur if the subject rehearses unfavorable thoughts about the message. If the message is ambiguous but pro-attitudinal (in line with the receiver's attitudes) then persuasion is likely. If the message is ambiguous but counter-attitudinal then a boomerang effect is likely. If the receiver is motivated and able to elaborate on the message and if there are compelling arguments to use, then the central route to persuasion should be used. If the receiver is unlikely to elaborate the message, or if the available arguments are weak, then the peripheral route to persuasion should be used

go to the store to look and then go online to shop. may be looking at merchandise and price. The shopping practice of coming into retail store showrooms to check out merchandise and prices but instead buying from an online-only rival, sometimes while in the store. What term is used to describe the ethically-questionable practice of consumers buying products online after examining them in brick-and-mortar stores?

The shopping practice of using the web to check out prices and merchandise before going to a store to try to make a purchase. Going online to look at merchandise and price and then going to the store to buy it.

Using more than one communication channel to try to convey your message to your target market. (has to follow rules below) Conveying same brand, same brand reputation, same design through all channels

communication among customers and other parties, transmitting information about companies and products through online or offline personal conversations

the passing of information and opinions electronically is seeing a growing influence on purchasing decisions

a series of steps prospective customers move through, from initial awareness of a product to brand loyalty the sequence of stages a prospective buyer goes through: awareness, interest, evaluation, trial, and adoption The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption of the product

Demand for a product category rather than a specific brand

demand for a company's own brand rather than a product category demand for the buyers

Short-term incentives to encourage the purchase or sale of a product or service (Now!)

Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships

sales promotion that appeals to marketing intermediaries rather than to consumers

One in which the offering is pushed through a marketing channel in a sequential fashion, with each channel level representing a distinct target market. A push strategy concentrates on channel intermediaries, building relationships that can have long term benefits. For example, advertisements in trade journals and magazines, sales aids and contests to gain shelf space and distribution. Think of marketing to wholesalers and retailers instead of regular consumers.

Seeks to create initial interest among potential buyers, who in turn demand the offering from intermediaries, ultimately pulling the offering through a marketing channel. A pull strategy normally employs heavy end user advertising, free samples, and coupons to stimulate end user awareness and interest. Think of marketing to regular consumers instead of wholesalers and retailers.

Company Representatives and Independent Contractors

Working directly for the company taking on the company's culture, vision, and missions.

Provides management with direct control over the sales force and can ensure brand representation is done properly. For low level, sales force will be less costly b/c its variable cost will decrease. At high level, sales service agents are cheaper b/c of low fixed cost. Efforts can be directed.

Employees outside of the firm, who are hired to perform a specific job, or set of jobs, for rewards determined through a contract. Both parties agree on the type of work performed, how long work will occur, and many other facets.

No fixed cost You cannot direct the sales teams efforts, and variable costs get so high, it would be cheaper to get our own sales force.

1.) Account Relationship Management 2.) Strategy- developing message for brand 3.) Media 4.) Creative people STEPS: A) Management comes up with strategy B) Creative people encode a message in the strategy with meaning C) Media must come in and determine the cost of the median used and the median itself. D.) Works closer with customers to provide service during and after the sale to retain customers through good relationships.

1.) Sales response 2.) Viewership 3.) Number of exposures 4.) Aided, unaided recall 5.) Click throughs 6.) Social media mentions

The process by which information about an organization and its offerings is disseminated to selected markets.

This range from very flexible like personal selling to very inflexible like mass advertising and each has a unique set of characteristics and capabilities.

The practice of blending different elements of the communication mix in mutuality reinforcing ways to inform, persuade, and induce consumer action.

1.) Information Requirements In Purchase Decisions 2.) Setting Reasonable Communication Objectives 3.) Developing An Integrated Communication Mix 4.) Marketing Web Sites And Integrated Marketing Communications 5.) Communication Mix Budgeting 6.) Evaluation And Control Of The Communication Process

Awareness -> Consideration -> Preference -> Purchase

1.) The information requirements of potential buyers 2.) The nature of the offering 3.) The nature of the target markets 4.) The capacity of the organization

About 50%

This exist when: 1.) There is a favorable primary demand for a product or service category 2.) The product or service to be advertised can be significantly differentiated from its competitors 3.) The product or service has hidden qualities or benefits that can be portrayed effectively through advertising 4.) There are strong emotional buying motives involved, such as buyer's concern for health, beauty, status, or safety.

A place where information is made available to users of the Internet by the provider.

1.) Transactional Sites - Electronic storefronts 2.) Promotional Sites - Promote a company's products and services and provide information on items that can be used and place it can be purchased.

A popular term for word-of-mouth behavior.

An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail.

When sales increased, communication expenditures increase.

Attempts to maintain a balance between its communication expenditures and those of its competitors.

Expressed as a percentage of total advertising by all competitors in a market at a point in time.

Approach employed in introducing a new offering for which maximum exposure is desired.

An organization budgets communication as as a function of the objectives set for a communication program and the costs of the tasks to be performed to accomplish the objectives.

1.) Define the communication objectives 2.) Identify the tasks needed to attain the objective 3.) Estimate the costs associated with performance of these tasks.

1.) Television 2.) Radio 3.) Magazine 4.) Newspaper 5.) Outdoor (Billboard) 6.) Internet

Specific entities in which advertisements can appear. In magazines, the vehicles include Newsweek and Mechanics Illustrated.

Cost Per Thousand

The number of buyers potentially exposed to an advertisement in a particular vehicle.

The number of times buyers are exposed to an advertisement in a given time period.

Total Exposure = Reach x Frequency

NS = (NC x FC x LC) / TA NS = Number of Sales Rep NC = Number of Customers FC = Necessary Frequency of Customer Calls LC = Length of Average Customer Call TA = Average Available Selling Time Per Sales Representative