Ch 17 Integrated Mktg Communications What is promotion in Marketing One of the four elements of the marketing mix The communication link between sellers and buyers for the purpose of influencing informing or persuading a potential buyer s purchasing decision Advertising Companies have bought into the idea that advertising drives their business as competitiveness increases in the market Top advertisers 1 Proctor Gamble owns a variety of different products 2 AT T 3 General Motors 4 Comcast Promotion Mix APPS A dvertising P ersonal selling is a paid non personal communication about an organization and its products transmitted to a target audience through mass media is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation create and maintain favorable relationships between an organization and its stakeholders inducement offering added value or incentive for the product to resellers salespeople or customers free samples games rebates sweepstakes contests premiums and coupons is a broad set of communication efforts used to is an activity or material that acts as a direct S ales promotion P ublic relations Companies must consider things like budget stage in PLC the type of product target market etc before creating a promotion mix Integrated Marketing Communications IMC Coordination of promotion and marketing efforts for maximum impact All of the things they do ads PR selling direct marketing packaging should be combined together to focus on delivering one message to consumers o Ex Taco Bell teamed up with Boston Red Sox If Red Sox stole a base consumers got a free taco This was integrated through all the different promotional methods they were using to come up with a successful campaign Goals of IMC Consistent message to customers Coordinate manage promotional efforts Synchronization of promotional elements Use more precisely targeted promotional tools o Ex Coca Cola s dilemma How would you target guys with diet drinks Created a manly can with new colors used black instead of red and design Didn t use the word diet Sponsored NASCAR 2 General Promo Strategies must know Push Policy o Promoting a product only to the next institution down the marketing channel o Taking a product and pushing it down the distribution channel The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers Ex Trade shows companies hold shows to try to attract wholesalers and retailers to buy their product Push money also known as spiffs an extra commission paid to retail employees to push certain products Pull Policy direct opposite of push policy o Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel o Gets consumers excited about a product demand goes up retailer will then seek out a wholesaler for that product Ex Children s toys demand is coming directly from Communication Process consumer child The process that describes the exchange of information between two or more people Messages are sent through channels o Channels could be Letters email in person o Decision depends on type of product and type of customer This six step process starts at the top and works clockwise 1 Sender Source 2 Encode 3 Message Development 4 Media 5 Decoding 6 Feedback Repeat STEP 1 The Source information to share the person organization that has the o Company o salesperson o Celebrity have Q scores that can change over time LeBron James s Q score has fluctuated When he first entered NBA he had a high Q score When he left Cleveland for Miami the way he did it dropped to a low Q score When he won the Championship it went back up Q stands for Quality considers two factors 1 Level of Familiarity the of ppl who have heard of o Q score celebrity 2 Level of Favorability the of ppl who indicate this celebrity is their favorite The Q score is calculated by dividing the two numbers So if 50 are familiar and 10 list as a favorite the score is 20 The average is 18 o Note Q scores can be used to rate many things cartoon characters kids Products brands television programs etc STEP 2 Encoding the process of putting words thoughts messages into symbolic form in such a way that they will be understood by the receiver consumer o symbols are particularly good for this o Ex Starbucks symbol Nike Swoosh symbol McDonalds golden arch STEP 3 Message Development o The message strategy is the foundation for all marketing o It needs to be strong and consist of a positioning statement central idea or theme o After the message is developed it must be sent out to consumers using media Media STEP 4 source to the receiver o Two types o The Channel how the communication travels from the 1 Nonpersonal channels no personal contact with consumer print broadcast TV internet 2 Personal channels involves direct contact direct selling salespeople WOM Buzz marketing Buzz Marketing a subset of viral marketing wherein companies hire socially active consumers to promote products to their friends consumers are typically unaware that the person is on the firm s payroll Ex Sony Ericsson paid people to be undercover marketers to act like tourists for the purpose of promoting its digital camera phone the process of transforming the message back STEP 5 Decoding into thought Response Models o The key is for the decoded message to resemble the encoded message o Companies need to make sure the customers understood the message they are sending out o Problems can occur if there is too much Noise anything that interferes or distorts the message o Know that Decoding can go wrong o STEP 6 Feedback the receiver s response to the message o Can be difficult to assess o One way to get feedback from objective sources o Ads are rated top 100 ad campaigns of all time Ex Volkswagen s Think small 1959 ad was 1 Describe the process that receivers must go through before a desired behavior occurs Each model has three successive stages o 1 Cognitive stage the thinking stage Where the receiver becomes aware of the message o 2 Affective stage the feeling stage Where the receiver forms a liking or preference for the ad object o 3 Behavioral stage the doing stage Where the receiver acts on the preference Know this AIDA Model Developed for personal selling represents the stages a salesperson must take a customer through to induce purchase o it stands for attention interest desire action Ch 18 Advertising
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