Exam 4 Review Lecture 1 Integrated Marketing Communications Promotion Encouragement of the progress growth or acceptance of something furtherance In Marketing Promotion 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 Promotion Mix o Advertising is a paid non personal communication about an organization and its products transmitted to a target audience through mass media o Personal selling is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation o Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders o Sales promotion is an activity or material that acts as a direct inducement offering added value or incentive for the product to resellers salespeople or customers free samples games rebates sweepstakes contests premiums and coupons Integrated Marketing Communications Coordination of promotion and marketing efforts for maximum impact traditional is not as integrated o Like how taco bell advertised a free taco for every stolen base from the Boston Red Soxs Posters hot sauce etc Goals of IMC o Consistent message to customers o Coordinate manage promotional efforts o Synchronization of promotional elements o Use more precisely targeted promotional tools Push policy o Promoting a product only to the next institution down the marketing channel o The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers Trade shows and personal selling Push money also known as spiffs An extra commission paid to retail employees to push products o Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel Consumers will ask retailer for product Pull policy o Children s toys o Ford Australia only produces a car when one is ordered by a customer Dell did the same thing Communication Process o The process that describes the exchange of information between two or more people Messages are sent through channels letters email in person o Elements of the communication process Source sender encoding information message development media decoding feedback The Source the person organization that has information to share o Company o Salesperson o Celebrity have Q scores Q Score Q stands for quality considers two factors o Consumers level of familiarity with a name who have heard of her him o The number of respondents who indicate that a person program or character is a favorite o The score is calculated by dividing the two numbers o Some argue that Q is better than Nielsen 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 The Channel how the communication travels from the source to the receiver o Two types 1 Nonpersonal channels no personal contact with consumer 2 Personal channels involves direct contact Print broadcast Direct selling Salespeople WOM Buzz marketing a subset of viral marketing wherein companies hire socially active consumers to promote products to their friends relatives and acquaintances Consumers are typically unaware that the person is on the payroll Response Models Describe the process that receivers must go through before a desired behavior occurs o Each Model has three successive stages 1 Cognitive stage the thinking stage Where the receiver becomes aware of the message 2 Affective stage the feeling stage Where the receiver forms a liking or preference for the ad object 3 Behavioral stage the doing stage Where the receiver acts on the preference Lecture 2 Advertising A paid form of nonpersonal communication that is transmitted to a target audience through mass media o Effective advertising can influence customers purchasing behavior throughout their lifetimes o Most organizations even nonprofits engage in advertising Six Point Advertising Strategy o Primary Purpose What is the primary purpose of our ad o Primary Benefit What unique benefit can we offer customers o Secondary Benefit What other key benefits will customers receive from our products or services o Target Audience At whom what market segments are we aiming this ad o Audience Reaction What response do we want from our audience o Company Personality What image do we want to convey in our ads Types of Advertising Product Advertising o Promotes the uses features and benefits of specific products Pioneer primary demand Focuses on a product category o Got Milk Beef Advocacy Advertising o Conveys a firm s position on a public issue WE I D Competitive points out a brand s advantages relative to competing brands Papa Johns Dominos Porsche Comparative Reminder Reinforcement Next Wave of Advertising o Mobile ads advertisements sent to mobile phones or other wireless devices o First mobile ad was sent in 2000 o Now accounts for 2 of the advertising market New Frontier in Advertising o Current State of Advertising With all the advertising clutter recall of a typical ad is only 10 o Advertainment o Branded Entertainment Recall of a branded entertainment episode is 24 AXE Prank Ad o Unilever which owns Axe paid 50 000 to the University of Maryland for Collegehumor com to host the prank In return the company was allowed to stream this video on its website and in conjunction with its brand that targets young males Axe Scheduling Advertising Continuous runs steadily throughout the year o Good for continuously used products Flighting runs in spurts o Heavy none o Good for seasonal products Pulsing a combination Runs steadily but with bursts at certain times Measuring Advertising Reach The percentage 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 Better to reach 25 customers 4 times than 100 customers once Nielson Ratings An audience measurement system designed to assess the size and composition of TV audiences Since there are an estimated 116 000 000 television households in the U S One ratings point represents 1 of that number 1 16 million households Nielsen now also produces commercial ratings that measure commercial viewership adjusted for DVR
View Full Document
Unlocking...