MAR3023 Marketing Exam 3 Integrated 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 objectives o 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 impact o IMC fosters long term relationships and efficient use of promotional resources o Calls for centralized messaging function so that everything a company says and does portrays a common theme positioning consists of message media and activities o 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 NASCAR o 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 demand o Build and enhance relationships with current and potential customers o Indirectly facilitate favorable relationships with interest groups regulatory agencies or society o For maximum benefit proper planning implementation control of communications Promotions decisions select promotional objectives promotions mix elements in the communication process 1 Select promotional objectives o Stimulate demand o Encourage product trial o Identify prospects o Retain loyal customers o Facilitate seller support o Combat competitive promotional efforts o Reduce sales fluctuations 2 Promotion mix o Advertising paid non personal communication about organization and its products transmitted to a o Personal selling paid personal communication that seeks to inform customers and persuade them to target audience through mass media purchase products in an exchange situation between an organization and its stakeholders o Public relations broad set of communication efforts used to create and maintain favorable relationships 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 products o APPS can overlap making it difficult to classify under one examples 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 McDonald s uses TV to tell consumers about receiving free fries advertising sales promotion Quaker Oats puts ad in magazine with coupon attached advertising sales promotion Pharmaceutical salesperson leaves free sample w physician personal selling sales promotion 3 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 programs o 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 screen o 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 competitor o Encoding characters chosen in the Mac vs PC commercials communicate something o Message Mac is cooler than PC o Media Youtube What the firm does not control o Decoding receiver assigns meaning to message encoded by the sender o Response reaction of receiver after being exposed to the message o Feedback not enough info about the receiver s response is communicated to the sender o 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 providers o 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 important o 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 dramatically o 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 promote digital camera phone Tremor company employs teens to promote products like Pantene Pringles and Covergirl Criticism defense of promotion o Some is deceptive but not all o Doesn t necessarily increase price o Marketing
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