What is an IMC strategy and what is at the heart of it o IMC Coordination of all promotional activities to produce a unified customer focused promotional message The customer is at the heart of marketing communications The Communication Process What do encoding decoding feedback and noise refer to in regards to promotional strategy o Encoding Translating a message into understandable terms o Decoding Receiver s interpretation of a message o Feedback Receiver s response to a message o Noise Any stimulus that distracts a receiver from receiving a message Understand what the AIDA Concept is o Steps through which an individual reaches a purchase decision o A Attention attract the attention of the customer o I Interest raise customer interest by focusing on and demonstrating advantages and benefits o D Desire convince customers that they want and desire the product or service and that it will satisfy their needs o A Action lead customers towards taking action and or purchasing Know the five objectives of Promotion all promotional tools and be able to recognize examples o Provide information goal is to inform the market about the availability of a product o Increase demand o May increase primary demand the desire for a general product category o May increase selective demand the desire for a specific brand o Differentiate the product product differentiation occurs when consumers regard a firm s products as different in some way from those of competitors o Accentuate the product s value greater value helps justify a higher price in the marketplace marketers must choose their words wisely when creating messages that accentuate their product s value o Stabilize sales can stabilize variations in demand o Marketer pays a motion picture or television program owner a fee to display his or her product Understand what is meant by product placement prominently in the film or show Understand what Guerrilla Marketing refers to o Unconventional innovative and low cost techniques to attract consumers attention Understand what Sponsorship is and what Ambush Marketing refers to o Sponsorships organizations provide money or in kind resources to an event or activity in exchange for a direct association with that event or activity Know what Direct Marketing refers to and what all it includes o Use of direct communication to a consumer or business recipient designed to generate a response in the form of o An order o A request for further information o A visit to a place of business to purchase specific goods or services Know the factors that influence the Optimal Promotional Mix Refer to table looking at Choice of using Personal Selling vs Advertising Know the difference between pushing and pulling promotional strategies o Pulling promotional effort by the seller to stimulate final user demand which then exerts o Pushing strategy promotional effort by the seller directed to members of the marketing pressure on the distribution channel channel rather than final users Advertising and Public Relations Know who the biggest spenders are in Advertising both companies and industries Know the difference between informative persuasive and reminder objectives of advertising and goals of each o Informative advertising Seeks to develop initial demand for a good service organization person place idea or cause o Persuasive advertising Attempts to increase demand for an existing good service organization person place idea or cause o Reminder advertising Reinforces previous promotional activity by keeping the name of a good service organization person place idea or cause before the public Know and understand the various Advertising strategies including comparative celebrity testimonials retail and cooperative advertising o Comparative advertising Emphasizes messages with direct or indirect promotional comparisons between competing brands o Used by firms whose products are not market leaders o Advertising by market leaders seldom acknowledge existence of competing products o Supported by the FTC why o Keeps marketplace competitive o Keeps consumers informed o Keeps prices low o Celebrity testimonials o Can improve product recognition o Can reach consumers of various ethnic groups o A celebrity who endorses too many products may create marketplace confusion o Can not control the celebrity o Retail advertising Advertising by stores that sell goods or services directly to the consuming public o Source message and shopping experience seem to affect consumer attitudes toward these advertisements wholesaler o Cooperative advertising Retailer shares advertising costs with a manufacturer or o Interactive Advertising Two way promotional messages transmitted through communication channels that induce consumers to participate actively in the promotional effort o Web and e marketing text message Facebook twitter aps etc o Creates dialogue between marketers and shoppers providing more materials at the users request what they see o Challenge to gain and hold consumers interest in an environment where they control Know the various advertising appeals that are used and advantages disadvantages o Fear appeals o Imply or state that incorrect buying decisions could lead to bad consequences o Can backfire if consumers find fear ads too strong or not credible o Humor in advertising messages o Seeks to create a positive mood related to a good or service o Some advertisers believe humor distracts from brand and product features o Ads based on sex o Immediately attract the consumer s attention o Do not appeal to everyone Know the elements of a print ad o Four major elements of print advertisement Headline Body Copy Illustration Signature Understand the importance of Media Selection and advantages and disadvantages of each Understand what media scheduling is concerned with and what reach frequency and Gross rating point indicate o Setting the timing and sequence for a series of advertisements o Influenced by a variety of factors o Seasonal sales patterns o Repurchase cycles o Competitors activities o Effectiveness is measured in three ways o Reach Number of people exposed to an advertisement o Frequency Number of times an individual is exposed to an advertisement o Gross rating point GRP The product of the reach times the frequency Know what role public relations plays and the difference between Non marketing and Marketing P R o Firm s communications and relationships with its various publics including customers employees stockholders suppliers