MAR3023- Marketing Exam 3Integrated Marketing Communication (Ch. 17)• Promotion definition: encouragement of the progress, growth, or acceptance of something; furtherance• Marketing definition of promotion: communication link between sellers and buyers for the purpose of influencing, informing, and persuading a potential buyer’s purchasing decision (1/4 elements of marketing mix)• Current promotion environment: most US expenditures spent on sales promotion, then advertising in US• Traditional approach to advertising and promotion (old approach):o Marketing and promotional functions (PR, sales promotion, media advertisement, packaging) are planned and managed separately with different budgets, views of the market, and goals/objectiveso Lacks coordination/consistency • Integrated marketing communication (contemporary approach): o Coordination of promotion & marketing efforts for consistency and a unified image in the market place o Major goal of IMC is to send a consistent message to customers for maximum impacto IMC fosters long term relationships and efficient use of promotional resourceso Calls for centralized messaging function so that everything a company says and does portrays a common theme/positioning- consists of message, media, and activitieso Forces managers to pay attention to all of the various communication channels within the firm• Examples of IMC:o Target men by using manly color/design, avoid the word “diet”, sponsor NASCARo Same concept for having all around good qualities to hire (outfit, mannerisms, how you speak)o “A great ad campaign will make a bad product fail faster. It will get more people to know it’s bad.”- Bill Bernbach (marketing industry legend) • Role of promotion:o Stimulate product demando Build and enhance relationships with current and potential customerso Indirectly facilitate favorable relationships with interest groups, regulatory agencies, or societyo For maximum benefit- proper planning, implementation, & control of communications • Promotions decisions: select promotional objectives, promotions mix, elements in the communication process1. Select promotional objectiveso Stimulate demando Encourage product trialo Identify prospectso Retain loyal customerso Facilitate seller supporto Combat competitive promotional effortso Reduce sales fluctuations2. Promotion mixo Advertising: paid, non-personal communication about organization and its products transmitted to a target audience through mass mediao Personal selling: paid, personal communication that seeks to inform customers and persuade them to purchase products in an exchange situationo Public relations: broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders o Sales promotion: activity or material that acts as a direct inducement offering added value or incentive for the product to resellers, salespeople, or customers (ex: free sample, games, rebates, sweepstakes, contests, premiums, or coupons) o Push/pull policy (not mutually exclusive) in communication between producer and media: Push policy: producer promotes product to next institution down the marketing channel Pull policy: firm promotes directly to consumers with intention of developing stronger consumer demand for the productso APPS can overlap making it difficult to classify under one- examples: McDonald’s uses TV to tell consumers about receiving free fries- advertising/sales promotion Toyota salesperson tells customers about the quality of Michelin tires- personal selling CNN has story about Energizer’s latest ad and features commercial- publicity-based PR Quaker Oats puts ad in magazine with coupon attached- advertising/sales promotion Pharmaceutical salesperson leaves free sample w physician- personal selling/sales promotion3. Elements in the communication process (notion of transmission of information)o Source/sender: person or organization that has info to share (company/salesperson)o Encoding: process of putting words, thoughts, messages into symbolic form in such a way that they will be understood by the receiver/consumer (ex: symbols like golden M or Nike swoosh) Celebrity Q(quality) score= % favorite/% familiar TVQ score: rates broadcast TV programso Promotional message: to grab attention, excite interest, create desire, prompt action (AIDA)o Media: cross screen engagement (ex: laptops, phones, gaming consoles, TV)- 90% of media interaction is screen based, 38% of daily media interaction occurs on phone- trying to add film as another screeno Decoding: process of transforming message back into thought- key is for decoded message to resemble the encoded message- noise: anything that interferes w/distorts the message Unintended decoding: ex: “Touch Woody- the Internet Pecker”o Feedback: receiver’s response to the message (can be difficult to assess) Channel capacity: each communication channel is limited to the volume of info it can effectively handle and is determined by the least efficient component of the communication process• What the firm controls: o Sender: buy a Mac instead of PC competitoro Encoding: characters chosen in the Mac vs. PC commercials communicate somethingo Message: Mac is cooler than PCo Media: Youtube• What the firm does not control:o Decoding: receiver assigns meaning to message encoded by the sendero Response: reaction of receiver after being exposed to the messageo Feedback: not enough info about the receiver’s response is communicated to the sendero Noise: unplanned static or distortion during communication process• Word of mouth: passing info verbally (like recommendations) in an informal, person to person manner rather than by media or advertising- not affective in all product categories/particularly important for service providerso Negative WOM: stronger than positive and sometimes doesn’t feedback to firm o E-WOM: communicating about products through websites, blogs, emails, or online forums; becoming increasingly importanto Viral marketing: strategy to get consumers to share a marketer’s message, often through email or online videos, in a way that spreads quickly and dramaticallyo Buzz marketing: an attempt to incite publicity and public excitement surrounding a product through a creative event (sometimes refers to socially active consumers hired to create buzz) Sony Ericsson used undercover marketers to act as tourists to
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