1 MAR3023 Basic Marketing Concepts Final Purple what he stresses Integrated Marketing Communications What is a promotion Textbook Definition Communication to build and maintain relationships by informing and persuading one or more audiences Brady s Definition encouragement of the progress growth or acceptance of something furtherance What is the purpose of promotion Promotion is one of the four elements of the marketing mix The communication link between sellers and buyers for the purpose of a influencing potential buyer s purchasing decision or persuading informing Promotion Mix a combination of promotional Integrated Marketing Communications IMC Textbook Definition The coordination of promotion and other marketing efforts for maximum informational and persuasive impact Brady s Definition When companies coordinate all of their promotional messages to create one voice in how they approach customers methods used to promote a specific product Why do companies use IMC Everything companies do within their promotional efforts from the sales promotions and advertisements that they run to the PR and selling they do focuses on delivering one efficient message to consumers Advertising is a paid non personal communication about an organization and its products transmitted to a target audience through mass media Examples television radio the Internet newspapers magazines video games direct mail outdoor displays and signs on mass transit vehicles Personal Selling is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Traditional Promotion Mix Know the difference between IMC and Traditional Promotion Mix Historically companies would think differently about 2 Kinesic Communication communicating through the movement of head eyes arms hands legs or torso Proxemic Communication communicating by varying the physical distance in face to face interactions through touch Tactile Communication communicating Public Relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders 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 Examples free samples games rebates sweepstakes contests premiums and coupons the different channels they were using to get messages to consumers they would look at all of the promotional efforts some listed below separately which would result in their messages actually being counterproductive IMC takes all of the promotional efforts and fits them neatly together so that they re really coordinated and consumers understand the message they re getting from the firm Also those same messages are consistent among whatever channel the consumer interacts with All of it fits together so the whole is better than just some of the parts Media Advertising Publicity Point of Purchase Sales Promotion Packaging Direct Response Interactive Marketing Direct Marketing Public Relations and Special Events Goals of IMC o 1 Consistent message to customers o 2 Coordinate manage promotional o 3 Synchronization of promotional efforts elements 3 o 4 Use more precisely targeted promotional tools Example Coca Cola introducing Coke Zero they were selling diet drinks to guys with the Tab pink can mainly attracting women made the Coke Zero can a guy s color black had men come in to look and help pick the packaging design and didn t use the word diet diet vs zero They also sponsored NASCAR 2 General Promotional Strategies that companies can use to approach marketing communications for customers Know differences between examples of Push Pull Policy Push Policy when companies promote a product only to the next institution pushing them down the marketing channel The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers Examples o Trade shows where companies try to attract retailers and wholesalers to be interested in their product personal selling an extra commission paid to employees to push products o Push Money aka spiffs Pull Policy promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel pretty much the opposite of Push Policy where companies are promoting directly to consumers trying to create consumer demand to the point where it s actually the consumers that pull the product through the marketing channel Where the consumers get so excited about products that they ask retailers specifically about them and when the retailers get asked enough about a specific product they go out and find a manufacturer for that product so they can meet consumer requests Examples o Children s Toys Toy manufacturers try to get kids excited about toys so they 4 annoy their parents about it until their parents get tired of hearing about it that they go out and buy that toy specifically Communication Process The process that describes the exchange of information between two or more people describes the process that companies use to get messages to consumers What is considered a channel Messages are sent through channels Letters email in person internet or TV ad Elements of the Communication Process NOISE anything that interferes with or distorts the message 1 Sender Source process starts at the top with the Sender Source that has the information they want to convey to the end receiver could be a company salesperson or even a celebrity Q Scores Every celebrity has a Q score and it helps companies determine which celebrities 5 are going to command the most money to endorse a particular product o Q stands for quality there are two factors that are considered to calculate a Q score 1 Consumers level of familiarity with a name of who has heard of him her 2 The number of respondents who indicate that a person program or character is a favorite The score is calculated by dividing the two numbers 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 the sender encodes and formats the information they have so that it can be sent down the channel encoding done by creating an ad or writing it down symbols are particularly good The Channel how the communication travels from the source to the receiver 2 Types of Channels o Non personal Channels no personal o
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