MKTG 3433 1st EditionFinal Exam Study Guide Chapters: 16-19Chapter 16: Integrated Marketing Communication, Advertising, and Public Relations1. Integrated Marketing Communications (IMC): coordination of all promotional activities to produce a unified, customer focused promotional messagea. Consumers receive many marketing messages all dayi. The customer is at the heart of marketing communications1. IMC begins with their wants or needs and then works in reverse tothe product, brand, or organizationii. IMC looks at the elements of the promotional mix through the CONSUMER VIEWPOINTb. Importance of Teamworki. Teamwork involves both in house resources and outside vendorsii. Successful implementation of IMC requires everyone involved in every aspect of promotion to function as a teamiii. IMC challenges the traditional role of the outside ADVERTISING AGENCYc. Role of Databases in Effective IMC Programsi. The internet allows companies to gather information faster and organize it easilyii. DIRECT SAMPLING is a frequently used method to obtain customer opinionsiii. The ability to acquire huge data poses a new challenge2. The Communication Processa. An effective message does three things:i. Gains the receiver’s ATTENTIONii. Achieves understanding by both RECEIVER and SENDERiii. Stimulates receiver’s needs and suggests appropriate methods of satisfying themb. AIDA: steps through which an individual reaches a purchase decisioni. Encoding: translating the message into understandable terms and transmitting it through a channelii. Decoding: receiver’s interpretation of the messageiii. Feedback: the receiver’s responseiv. Noise: things that interfere with the transmission of the message and reduce its effectiveness3. Promotional Mixa. Non-Personal VS. Personal Sellingi. Personal Selling: interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyer1. Oldest form of promotionii. Non-Personal Selling: promotion that includes advertising, product placement, sales promotion, direct marketing, public relations, and guerilla marketing – all conducted without being face-to-face with the buyer1. Advertising: paid, non-personal communication through various media about a business firm, not for profit , product, or idea by a sponsor intended to inform or persuade members of a particular audiencea. Usually regarded as one of the most important forms of non-personal selling2. Product Placement: form of promotion in which a marketer pays amotion picture or TV program owner a fee to display a product prominently in the film or show3. Sales Promotion: marketing activities other than personal selling, advertising, guerilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness4. Direct Marketing: the use of direct communication to a consumer or business recipient designed to generate a response in the form of an order, a request for further information, or a visit to a place of business to purchase specific goods or services5. Public Relations: firm’s communications and relationships with its various publics6. Guerilla Marketing: unconventional, innovative, and low cost marketing techniques to get consumers’ attention in unusual waysa. Buzz Marketing: works well to reach college students and young adultsi. Campus Ambassadors: students who can promote abusinessb. Viral Marketing: internet marketing4. Advertisinga. Objectivesi. Informative Advertising: seeks to develop initial demand for a good, service, organization, person, place, idea or causeii. Persuasive Advertising: attempts to increase demand for an existing good,service, organization, person, place, idea, or causeiii. Reminder Advertising: reinforces previous promo activity by keeping the name of a good, service, organization, person, place, idea, or cause before the publicb. Strategiesi. Comparative Advertising: emphasizes messages with direct or indirect promotional comparisons between competing brands1. Used by firms whose products are not market leadersii. Celebrity Testimonials1. Can improve product recognitioniii. Retail Advertising: advertising by stores that sell goods or services directlyto the consuming public1. Comparative Advertising: retailer shares advertising costs with a manufacturer or wholesaler5. Public Relationsa. PR VS. Publicityi. Promotion: communication link between buyers and sellers; the function of informing, persuading, and influencing a consumer’s purchase decision1. Value of PR:a. 2 Reasonsi. Generating Revenueii. Saving Moneyii. Publicity: nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium1. Who are Publics?a. Linked to environment in four ways:i. Enabling: government/regulatoryii. Functional: provide inputs1. EX: Board of directorsiii. Normative: similar organizationsiv. Diffused: individuals not part of the organization1. EX: Consumers who don’t buy or use the productsb. Agenda Setting: process through which increased media focus on a topic raises the salience of that issue relative to others in the mind of the consumeri. First Level: media focuses on certain issues and attempt to frame those issues in a way that maximize attention and interest1. Agenda is influenced by outside forcesii. Second Level: process through which the media presents a particular story by selecting specific themes, phrases, images and sources to tell a storyChapter 17: Personal Selling and Sales Promotion1. Personal Selling Vs. Advertisinga. Personal Selling: interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyeri. A primary component of a firm’s promotional mix when one or more of the well defined factors are presentii. Salespeople focus on satisfying the customer’s needs before, during, and after sales are made.1. Salespeople must be able to:a. Focus on a customer’s situation and needs and create solutions that meet those needsb. Follow through and stay in touch before, during, and after a salec. Know the industry and have a firm grasp of their firms and their competitors’ abilitiesd. Exceed their customers’ expectations, even if it means going above and beyond the call of duty2. Sales Channelsa. Over-the-Counter Selling: personal selling conducted in retail and some wholesale locations in which