Marketing Chapter 17: Integrated Marketing Communications and Direct Marketing

promotional mix
the promotional elements: advertising, personal selling, public relations, sales promotion, direct marketing
integrated marketing communications (IMC)
the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences
communication + 6 elements
the process of conveying a message to others. requires 6 elements: a source, a message, a channel of communication, a receiver, and the process of encoding and decoding
a company or person who has information to convey
the information sent by the source
channel of communication
the medium through which the message is conveyed (salesperson, advertising, public relations tools, etc)
consumers who read, hear, or see the message
the process of having the sender transform an idea into a set of symbols
the process of having the receiver take a set of symbols (the message) and transform the symbols back into an idea
field of experience
sender and receiver must have a similar understanding and knowledge they apply to a message
feedback loop
consists of a response (impact the message had on the receiver’s knowledge, attitudes, or behaviors) and feedback (the sender’s interpretation of the response and indicates where the message was decoded and understood as intended)
extraneous factors that can work against effective communication by distorting a message or the feedback it receives (ex printing error or salesperson’s accent)
mass selling
advertising, sales promotion, public relations
customized interaction
personal selling, direct marketing (kinda)
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. Efficient for reaching large numbers of ppl but high absolute costs and difficult to receive good feedback. Can control who, what, and when
personal selling
the two-way flow of communication btwn a buyer and seller designed to influence a person’s or group’s purchase decision. Good bc get immediate feeback, very persuasive, can select audience, and can give complex info. Bad bc extremely expensive per exposure and message may vary btwn salespeople. reduces wasted coverage. There are important advantages to personal selling: (1) a salesperson can control to whom the presentation is made, reducing the amount of wasted coverage; (2) the seller can see or hear the potential buyer’s reaction to the message, resulting in immediate feedback; (3) the personal component can make the seller very persuasive; (4) the seller can select audiences; and (5) the seller can convey complex information
public relations
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. Often most credible source in customer’s mind but difficult to get media cooperation
a nonpersonal, indirectly paid presentation of an organization, product or service (ex news story, editorial, product announcement)
sales promotion
short-term inducement of value offered to arouse interest in buying a product or service (ex coupons, rebates, samples, contests, sweepstakes). Effective at changing behavior in short-term and very flexible, but easily abused, can lead to promotion wars, and easily duplicated
direct marketing
direct communication with consumers to generate a response in the form of an order, a request for further info, or a visit to a retail outlet (ex face-to-face selling, direct mail/email, catalogs, telephone calls)
the product life cycle
introduction, growth, maturity, and decline
objective: to inform
activity: all promotional mix elements
objective: to persuade customer to buy product (product differentiation?)
activity: advertising, personal selling
objective: to remind buyers of products and maintain existing buyers
activity: sales promotion, reminder advertising, direct marketing
objective: to phase out
activity: basically none
product characteristics
complexity, risk for buyer, ancillary services (degree of support/services required after sale)
stages of buying decision
prepurchase stage: advertising > PR > sales promotion > personal selling)
purchase stage: personal selling > sales promotion > PR > advertising
postpurchase stage: advertising > personal selling > sales promotion > PR
push strategy
flow of demand = flow of promotion:
manufacturer -> wholesaler -> retailer -> consumer
pull strategy
flow of promotion: manufacturer -> consumer
flow of demand: consumer -> retailer -> wholesaler -> manufacturer
promotion decision process
1. developing
2. executing
3. assessing the promotion program
developing the promotion
who, what, where, when
identify target audience, specify promotion objectives (hierarchy of effects), setting the promotion budget, selecting the right promotional tools, designing the promotion, and scheduling the promotion
hierarchy of effects
sequence of stages a prospective buyer goes through
awareness, interest, evaluation, trial, adoption
percentage of sales budgeting
funds allocated to promotion as a percentage of past or anticipated sales in terms of dollars or units sold. most common
competitive parity
matching the competitor’s absolute level of spending or the proportion per point of market share
all you can afford
money is allocated to promotion only after all other budget items are covered. often contributes to product failure for small companies
objective and task
company determines budget objectives, outlines the tasks needed to achieve the objectives, and determines promotion cost of doing those tasks. Best theoretical approach to budgeting, but ppl often skip bc it’s time consuming
direct orders
result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
lead generation
the result of an offer designed to generate interest in a product or service and a request for additional info
traffic generation
the outcome of an offer designed to motivate people to visit a business
errors in communication
(1) the source may not adequately transform the abstract idea into an effective set of symbols;
(2) a properly encoded message may be sent through the wrong channel and never make it to the receiver;
(3) the receiver may not properly transform the set of symbols into the correct abstract idea; or
(4) feedback may be so delayed or distorted that it is of no use to the sender
direct marketing strengths
the effectiveness of changing behavior in the short run and it can be adapted quickly to facilitate one-to-one relationships with customers
E-Policy Directive
EU passed to provide explicit laws for website owners

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