Final Exam ReviewINTEGRATED MARKETING COMMUNICATIONS- Promotion: encouragement of progress, growth, or acceptance of something- How sellers influence, inform, and persuade the buyer- Promotions mix- Advertising: paid, non-personal communication through mass media- 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 Strategies1. Push Policy- Promoting a product only to the next institution down the marketing channel- Producerwholesaler, wholesalerretailer, retailersconsumers- Push money: extra commission paid to employees to pushproducts2. 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 person- Elements of Communication Process1. The Source: the person/organization that has information 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 favorite2. Encoding: process of putting a message into symbolic form to be understood by customers3. The Channel: how the communication travels from the source to the receiver - Non-personal channels: no personal contact (ex. Print, 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 message5. Feedback: the receivers response to the message- Response Models: the process that receivers must go through before a desired behavior occurs1. Cognitive Stage (“thinking”): receiver becomes aware of the message2. Affective Stage (“feeling”): receiver forms a liking for an ad/product3. Behavioral Stage (“doing”): where receiver acts on preferenceADVERTISING 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- Movies/TV/Video Games: product placement, mentions, interactivity- Newspaper/direct mail/magazines: coupons, flyers, classified ads- 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 brands1. Comparative: compares two or more brands on one or more characteristics2. Reminder: reminds customers of a brand’s characteristics/benefits3. Reinforcement: assures users they have made the rightchoice- 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 certaintimes (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 customersonce 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 userRating=House h olds tuned ¿ s h ow¿TotalU . S . House h oldsS h are= House h oldstuned ¿ sh ow¿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 itsstakeholders (ex. Starbucks, Botox, Palm)- Publicity: communication about the organization and/or its products transmitted through mass media at no charge- PR vs PublicityPUBLIC RELATIONS PUBLICITY- Long term - Short term- More control - Firm has no control over it- Designed to be positive- May be positive or negative- Less powerful - More powerfulPERSONAL 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 productSALES PROMOTION- Marketers spend 60%-75% of
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