Foundations of Marketing Chapter 15

Integrated Marketing Communications
Coordination promotion and other marketing efforts for maximum informational and persuasive impact
Persons, groups, or organization with a meaning it tries to share with a receiver or an audience
Individual, group, or organization that decodes a coded message
Coding Process
Converting meaning into a series of signs or symbols
Communication channel
Medium of transmission that carries the coded message from the source to the receiver
Decoding Process
Converting signs or symbols into concepts and ideas
Anything that reduces a communication’s clarity or accuracy. EX. heavily accented spokesperson, or unfamiliar signs or symbols
Receiver’s response to a decoded message. Immediate during face-to-face communication, slow when mass communication is used
Channel capacity
Limit on the volume of information a communication channel can handle effectively
Communication to build and maintain favorable relationships by informing and persuading one or more audiences
What marketers strive to properly achieve in Promotion
Planning, Implementation, Coordination, Control of communications
Promotion Objective: Create awareness
– New products/extensions
– Remind customers about existing products
Promotion Objective: Stimulate Demand
-Customers may have get stalled in the evaluation stage
-Offer free samples, coupons, ect.
Promotion Objective: Identify Prospects
-“For more information” then responding with more personal responses
Promotion Objective: Retain Loyal Customers
-Frequent user programs, loyalty cards ect.
-Reinforcement/reminder advertising
Promotion Objective: Facilitate Reseller Support
-Producers want to facilitate wholesaler/retailers to their part in promotion
Promotion Objective: Reduce Sales Fluctuations
-Offer sales on out of season products
Promotion Objective: Combat Competitive Promotional Efforts
-Offer the same or better deals that competitors have to stay in the market. Not done necessarily to bring in new customers
Primary Demand
Demand for a product CATEGORY rather than a specific brand through pioneer promotion
Pioneer Promotion
Informs customers about a new product
Selective Demand
Demand for a specific brand – singling out attributes important to potential buyers
Promotional Mix
Combination of specific methods used to manage the integrated marketing communications for a particular product
Four Possible Elements of a Promotion Mix
Advertising, Personal Selling, Sales Promotion, Public Relations
Advantages of Advertising
-Cost-efficient = low cost per person
-Repeated message
-Adds to product value
-Visibility the enhances organization’s image
Disadvantages of Advertising
-Absolute dollar value can be high
-Rarely provides immediate feedback
-Difficult to measure effect on sales
-Less persuasive than personal selling
-Limited time to persuade
Personal Selling
Paid personal communication that seeks to inform customers and persuade them to purchase
Advantage of Personal Selling
-More specific form
-Greater impact on consumers
-Immediate feedback
Disadvantages of Personal Selling
-Directed to a small number of individuals
Sales Promotion
Used to introduce new product, clear out inventories, attract traffic, and to lift sales temporarily.
Public Relations
A broad set of communication efforts used to create and maintain favorable relationships
Non-personal communication in news-story form about an organization
Promotional Resource Objective:
limited budget
Personal selling; high-yield per customer
Promotional Resource Objective:
mass awareness
Advertising and Sales Promotion
Geographic Distribution: small area
Personal selling; concentrated customers
Geographic Distribution: numerous and dispersed target market
Regional or national advertising
Characteristics of: Business products
-concentrated on personal selling
-use some advertising and sales promotion
Characteristics of: Consumer products
-advertising and sales promotion=convenience goods
-personal selling=consumer durables
-public relations=both convenience goods and consumer durables
Push Channel Policy
Promoting a product only to the next institution down the marketing channel
Pull Channel Policy
Promoting a product directly to consumers
customer-retailer-wholesaler (not mutually exclusive to push policy)
Word-of-Mouth Communications
Personal informal exchanges of communication shared by customers about products, brands, and companies
(crucial for service industries)
Buzz Marketing
Attempt to incite publicity and public excitement surrounding a product through a creative EVENT
Viral Marketing
Strategy to get consumers to share a marketer’s message
-email or online video
-done in a way to spread message dramatically and quickly
Product Placement
Strategically locates products or product promotions within entertainment media content to reach the product’s target market

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