MAR 3023 Exam 4 Study Guide Integrated Marketing Communications Know what a Promotion is and understand what the purposes of promotion are Promotion Encouragement of the progress growth or acceptance of something Marketing Definition Communication to build and maintain relationships by informing and persuading one or more audiences Used for Influencing Informing or Persuading a potential buyer s purchasing decision Purposes of Promotion o Create Awareness o Retain Loyal Customers o Stimulate Demand o Facilitate Reseller Support o Encourage Product Trial o Combat Competitive Promotional Efforts o Identify Prospects o Reduce Sales Fluctuations Know the elements of the Promotion Mix APPS and be able to identify examples of each 1 Advertising A paid non personal communication about an organization and its products transmitted to a target audience through mass media Individuals and organizations use advertising to promote goods services ideas issues and people o Television Radio Internet Newspapers Magazines Video Games Direct Mail Outdoor Displays Signs on Mass Transit Vehicles 2 Personal Selling A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Most extensively used in the business to business market and also in the business to consumer market for high end products such as Homes Cars Electronics and Furniture o Kinesic Communication Communicating through the movement of head eyes arms hands legs or torso o Proxemic Communication Communicating by varying the physical distance in face to face interactions o Tactile Communication Communicating through touching 3 Public Relations A broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders The goal of public relations is to create and enhance a positive image of the organization Public Relations uses a variety of tools including Annual Reports Brochures Event Sponsorship and Sponsorship of Socially Responsible Programs aimed at protecting the environment or helping disadvantaged individuals Publicity Based Public Relations tools are news releases press conferences and feature articles 4 Sales Promotion 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 Coupons Know what Integrated Marketing Communications IMC is and why companies use them Integrated Marketing Communications Coordination of promotion and marketing efforts for maximum impact A major goal of integrated marketing communications is to send a consistent message to customers Can improve the efficiency and effectiveness of promotion budgets Know the difference between the Traditional Promotion Mix and IMC The Traditional Promotion Mix focuses on each aspect of Mass Advertising individually The IMC focuses on the synchronization of those aspects Ex The picture from the Chapter 17 slides Think of the Traditional Promotion Mix and the IMC as a puzzle and each aspect of Mass Advertising is a piece of the puzzle Unlike the Traditional Promotion Mix the IMC puts those pieces together Know the goals of IMC and an example 1 Consistent Message to Customers Tic Tac developed the integrated marketing campaign Shake It Up to create a more modern image for its brand The company developed a 300 foot billboard in Times Square that viewers could scan with their mobile cameras Those with the Tic Tac Viewer app on their phones would see a photo of themselves within the billboard that could then be uploaded to Facebook or Twitter 2 Coordinate Manage Promotional Efforts Through Digital Media companies can provide product information and services that are coordinated with traditional promotional activities 3 Synchronization of Promotional Elements Today a number of promotion related companies provide one stop shopping for the client seeking advertising sales promotion and public relations thus reducing coordination problems for the sponsoring company 4 Use More Precisely Targeted Promotional Tools TV Direct Mail Internet Special Interest Magazines DVDs Cell Phones Mobile Applications Outdoor Boards Database Marketing Understand the difference between a Push and a Pull Promotion Strategy and be able to identify an example of each from a scenario Push Policy Promoting a product only to the next institution down the marketing channel The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers o Trade Shows and Personal Selling Push Money An extra commission paid to retail employees to push products o AKA Spiffs Pull Policy Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel Primarily through Advertising and Sales Promotion Ex Ford Australia only produces a car when one is ordered by a customer Ex Consumers are told that if the stores don t have it then they should request that the stores begin carrying the product Understand the Communication Process and that those messages are sent through channels and know what channels are Communication Process The process that describes the exchange of information between two or more people Messages are sent through channels Letters Email In Person Channel Capacity The limit on the volume of information a communication channel can handle effectively The Channel How the communication travels from the source to the receiver 1 Nonpersonal Channels No personal contact with consumer Print Broadcast 2 Personal Channels Involves direct contact Direct Selling Salespeople 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 Know the elements of the communication process Source sender encoding information message development media decoding feedback source sender Know what each of these are parts of each and what noise is Source The person organization that has information to share Company Salesperson Celebrity have Q scores Quality Scores o Q Score considers two factors 1 Consumers level of familiarity with a name who have heard of her him 2 The number of respondents who indicate that a person program or character is a favorite o The score is calculated by dividing the two
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