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Four elements of the Promotion Mix

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Personal Selling, Advertising, Public Relations, Sales Promotion

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Integrated Marketing Communications

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Coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers

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Six things that make ICM increasingly accepted

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Coordinate/manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools Consistent message to customers Use of database marketing Protect consumer privacy

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Communications

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A sharing of meaning through the transmission of information

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Source

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A person, group, or organization with a meaning it attempts to share with a receiver/audience

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Receiver

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The individual, group, or organization that decodes a coded message An audience is two or more receivers

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Coding process (Encoding)

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Converting meaning into a series of signs or symbols

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The Communication Process

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Source> Coded Message >Communications Chanel> Decoded Message>Receiver/Audience>Feedback to the Source

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Communications channel

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The medium of transmission that carries the coded message from the source to the receiver/audience

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Decoding Process

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Converting signs and symbols into concepts and ideas

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Noise

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Anything that reduces a communication's clarity and accuracy

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Feedback

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Receiver's response to a decoded message

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Promotion

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Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization positively and to accept its products

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Promotion's goal:

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to stimulate product demand and build customer relationships

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True/ False: Most organizations expend a large amount of resources on promotion

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True

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Advertising

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A paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

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Advertising is changing as _________ is changing

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mass media consumption habits

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The internet/ digital media aim at _____ audiences

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Smaller, more targeted

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Advertising is ____ and can reach _____ audiences

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Flexible, large or small

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Advantages of Advertising

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Cost-efficient when it reaches a large number of people at a low cost per person It lets the source repeat the message several times Visibility gained from advertising can enhance a firm's image

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Disadvantages of Advertising

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Absolute dollar outlay is high Rarely provides rapid feedback Difficult to measure its effect on sales Less persuasive than personal selling Generally limited time exposure

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Public Relations

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A broad set of communication efforts used to create/maintain favorable relationships between an organization and its stakeholders

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Publicity

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a non-personal communication in a news-story form about an organization, its products, or both Is transmitted through a mass medium at no charge

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Public relations should be viewed as an ongoing program during

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crisis and good times

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Public Relations tools

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Publicity Annual reports Brochures Event sponsorships Sponsorship of socially responsible programs Press releases/Conferences/Feature articles

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Personal Selling

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A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation

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Advantages of Personal Selling

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A more specific form of advertising Has a greater impact on consumers Provides immediate feedback

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Disadvantages of Personal Selling

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Expensive Labor intensive Time consuming

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Types of Interpersonal Communications

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Kinesic, Proximic, Tactile

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Kinesic

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Body language; communicating through movement of the head, eyes, arms, hands, legs, or torso

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Proximic

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Communicating by varying the physical distance between two parties in face-to-face interactions

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Tactile

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Communication through touching

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Sales Promotion

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A activity or material that acts as a direct inducement, offering adding value or incentive to resellers, salespeople, or customers

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Examples of Sales Promotion

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Free samples Games Rebates Sweepstakes Contests Premiums Coupons

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Objectives of Promotion

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Create Awareness Stimulate Demand Encourage Product Trail Identify Prospects Retain Loyal Customers Facilitate reseller support Combat Competitive Promotional Efforts Reduce Sales Fluctuations

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_______is crucial to initiating the product adoption process for new products

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Awareness

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Create Awareness for:

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For existing products, promotional efforts create increased awareness of brands, product features, image-related issues, or operational characteristics

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*Primary Demand

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Demand for a product category rather than a specific brand

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*Secondary Demand

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Demand for a specific brand

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Encourage Product Trail

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If customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to adoption

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Product Trail Techniques:

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Free samples Coupons Test drives Limited free-use offers Contests Games

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Identifying prospects

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Some promotional efforts aim to locate and identify customers who are interested in the firm's products and are most likely to buy Techniques Include: Toll Free Number, Direct Response Information form The organization should follow up with prospects

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True/False: A main goal in marketing is to maintain long-term customers

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True

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Keeping current customers is less/more costly than acquiring new customers

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less

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Retention techniques of maintaing loyal customers

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Frequent-user programs Special offers for existing customers Online communications Customer-only events Sweepstakes

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Strong relationships with resellers are important to an organization's ability to maintain:

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a sustainable competitive advantage

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Various promotional methods to facilitate reseller suport

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Resellers view promotion as a form of support Share promotional expense Special offers/buying allowances

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Promotional activities may aim to______ the effect of a competitor's promotional and marketing programs --This type of promotional activity does not necessarily increase sales or market share --An Example: "This is our State"

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offset or lessen

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A _____ is often used by firms in highly competitive consumer markets

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combative promotional objective

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A business cannot operate at peak efficiency when: Examples: Holidays Seasonal products

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sales fluctuate rapidly

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_____are often designed to stimulate sales during slumps.--An Example is "Butterball.come" a website for recipes during the holidays

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Promotional activities

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Selecting Promotion Mix Elements

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Resources & objectives Characteristics of the target market Characteristics of the product Cost and availability of promotional methods Push and pull channel policies

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Promotional Resources, Objectives, and Policies

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The size of an organization's promotional budget affects the number and intensity of promotional methods used

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Characteristics of a target market

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Size Geographic Distribution Demographic Characteristics

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Size

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Often drives which promotional elements are chosen Small target markets often rely on personal selling

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Geographic Distribution

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Personal selling is feasible when customers are concentrated in a small area Dispersed customers often best reached with advertising

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Demographic Characteristics

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Age, income, education, etc. will affect consumers' media consumption patterns and are important considerations when developing the promotion mix

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Business products concentrate on:

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Personal selling Sales promotion

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Consumer products concentrate on

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Convenience goods = advertising Durables and expensive products = personal selling Both = public relations

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___ and ____ use are important factors of Characteristics of Products

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Product price and product

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Intensive distribution

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Advertising, sales promotion

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Selective distribution

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Promotion mixes may vary

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Exclusive distribution

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Personal selling

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National advertising/Sales promotion

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Have higher expenses but low cost per individual

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International promotion

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Can be difficult because of lack of promotional channels

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Personal selling

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Is dependent on recruiting and hiring qualified salespeople

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Push Policy

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Promoting a product to the next institution down the marketing channel

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Pull Policy

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Promoting a product directly to consumers in order to develop strong consumer demand

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Is it possible for organizations to use both the push policy and the pull policy at the same time?

answer

Yes

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Word-of-mouth (WOM) communication:

answer

Personal, informal exchanges of communication that customers share with one another about products, brands, and companies

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Most customers are likely to be influenced by ____ when making purchases

answer

friends and family members

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_____is becoming increasingly important and Is most effective for new-to-market and expensive products

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Effective WOM communication

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*Buzz marketing

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An attempt to incite publicity and public excitement surrounding a product through a creative event

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*Viral marketing

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A strategy to get consumers to share a marketer's message, often through email or online video, in a way that spreads dramatically and quickly

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Product Placement

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A form of advertising that strategically locates products or product promotions within entertainment media to reach a product's target market

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____ have become a successful method of reaching consumers

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In-program product placements

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Product Placement

answer

Has become more important as more consumers bypass advertisements through DV-R, TiVo, and the Internet and is Increasing in popularity internationally

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utilized product placement in the movie The Social Network

answer

GAP

question

*A website talked about in class where you can look up the most popular brands/ which movies these brands were shown in through "product placement"

answer

Brand Channel.com

question

*A website talked about in class that shows the most recent viral videos and how many hits they received. (An example of "Viral Marketing"

answer

Visible Measures.com

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Point of purchase displays

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Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made.

question

Talked about in class - demand- an example of something everyone has to have

answer

Milk mustache

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Talked about in class- Things you see that make you want to buy the product

answer

Jennifer Anniston- Smart Water Energizer Bunny- batteries

question

*Talked about in class- A well known marketing icon that failed within the first year due to weak fundamentals

answer

The puppet dog from Pets.com

Principles of Marketing- Chapter 16 – Flashcards

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