Final Exam Review INTEGRATED MARKETING COMMUNICATIONS Promotion encouragement of progress growth or acceptance of something How sellers influence inform and persuade the buyer Promotions mix mass media Advertising paid non personal communication through Personal Selling paid personal communication to inform and persuade customers to purchase a product Public Relations broad set of communication efforts to create and maintain favorable relationships for an organization Sales Promotion Activity material as direct inducement offering added value or incentive Integrated Marketing coordination of promotion and marketing efforts for maximum impact IMC vs Traditional Promotions Mix Goals of IMC Consistent message to customers Coordinate manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools 2 Promo Strategies 1 Push Policy Promoting a product only to the next institution down the marketing channel Producer wholesaler wholesaler retailer retailers consumers Push money extra commission paid to employees to push products 2 Pull Policy Promoting product directly to consumer to develop strong demand Ex Children s toys Communication Process the process that describes the exchange of information between 2 or more people Channels messages get sent through letters email in Elements of Communication Process 1 The Source the person organization that has information person to share Company salesperson celebrity Q Scores quality consume rs level of familiarity wit h name of people w h o call t h at person a favorite 2 Encoding process of putting a message into symbolic form to be understood by customers 3 The Channel how the communication travels from the Non personal channels no personal contact ex Print source to the receiver broadcast Personal channels involves direct contact ex Direct setting buzz marketing o Buzz marketing companies hire socially active consumers to promote products to friends acquaintances 4 Decoding the process of transforming the message back into though Noise anything that interferes with the message 5 Feedback the receivers response to the message Response Models the process that receivers must go through before a desired behavior occurs 1 Cognitive Stage thinking receiver becomes aware of 2 Affective Stage feeling receiver forms a liking for an 3 Behavioral Stage doing where receiver acts on the message ad product preference ADVERTISING AND PR Advertising a paid non personal communication that is transmitted to a target audience through mass media Can influence customers purchasing behavior throughout their life times Six Point Advertising Strategy Primary Purpose Primary Benefit Target Audience Audience Reaction Company Personality Advertising Mediums interactivity classified ads Movies TV Video Games product placement mentions Newspaper direct mail magazines coupons flyers Sports soccer Nascar volleyball Advertising Pervasiveness Average American exposed to more than 3000 ads per day very difficult to get one specific message across Types of Advertising Product Advertising promotes the uses features and benefits of specific products Pioneer primary demand focuses on product category Competitive points out a brand s advantages relative to competing brands 1 Comparative compares two or more brands on one or more characteristics 2 Reminder reminds customers of a brand s characteristics benefits 3 Reinforcement assures users they have made the right choice Next Wave of Advertising Mobile Ads Advertisements sent to mobile phones Account for 2 of advertising market New Frontiers Current State A lot of advertising Clutter recall of any ad is only 10 on average Branded Entertainment recall 24 ex AXE Prank Gatorade s replay Scheduling Advertisment Continuous runs steadily throughout the year good for continuously used products Flighting runs in spurts good for seasonal products ex Swimsuits Pulsing a combination runs steadily with bursts at certain times ex Doritos in peak sport seasons Measuring Advertising Reach percent of consumers in the target audience exposed to a particular advertisement in a stated period Frequency the number of times these targeted consumers are exposed to the advertisement Effectiveness Is it more effective to touch 100 customers once or 25 customers 4 times o Krugman 1972 3 Exposures What is it What of it What is it to me o Measuring Effectiveness Pretest and Posttest recognition aided and unaided recall Nielsen Ratings Audience measurement system designed to assess the size and composition of TV audiences Used to rely on audiometer and personal diaries Now use a people meter which measures viewing habits of each individual user Rating House h olds tuned s h ow S h are House h oldstuned s h ow Total U S House h olds U S House h oldsusing TV Print Media Primary Circulation Subscribers Pass Along Readership Number of people who read the magazine after the primary subscribers ex Doctor s office magazines Total Circulation primary circulation multiplied by pass along readership Public Relations communication efforts used to create and maintain favorable relations between an organization and its stakeholders ex Starbucks Botox Palm Publicity communication about the organization and or its products transmitted through mass media at no charge PR vs Publicity PUBLIC RELATIONS Long term More control Designed to be positive Less powerful PUBLICITY Short term Firm has no control over it May be positive or negative More powerful PERSONAL SELLING AND MANAGEMENT Personal selling the use of personal communication skills to uncover needs or wants and provide solutions Way more expensive yet more effective Factors Affecting Advertising vs Personal Selling Suspect to Prospect Plan and Prepare Identify key decision makers Review account histories contact other clients Access credit histories and problems Prepare sales presentations Identify product needs Obtain relevant literature Approach referral cold canvassing repeat contact Overcoming Objectives clarify respond confirm Closing the Sale Gain commitment sales person asks prospect for a commitment about buying the product Marketers spend 60 75 of their promotional budgets on SALES PROMOTION sales promotion Push vs Pull Push using trade promotions to persuade retailers or wholesalers to carry a brand or push it to customers ex Allowances contests trials Pull focuses on promotions on customers to stimulate demand ex Samples coupons cash refunds rebates etc
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