Chapter 17 integrated marketing communications Macro Promotions 1 Promotions mix a Advertising is a paid non personal communication about an organization and its products transmitted to a target audience through mass media b Personal selling is a paid personal communication that seeks to inform customers and persuade them to purchase products in exchange situation c Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders d 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 2 IMC coordination of promotion and marketing efforts or maximum impact Instead of having all of these efforts like PR and advertising loosy goosey everything fits together and works because of each other It s more effective to keep throwing the same message down different channels than different messages across these channels a The goals of this include consistent message to customers coordinate manage promotional efforts synchronization of promotional elements and use more precisely targeted promotional tools 3 Push pull a Push policy i Promoting a product only to the next institution down the marketing channel ii The producer promotes the product to wholesalers the wholesalers promote it to retailers and the retailers promote it to consumers iii To get this down the supply chain target the next member of the chain b Pull policy i Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel ii Children s toys iii Ford Australia only produces a car when one is ordered by a customer dell did the same thing 4 Communication process the process that describes the exchange of information between two or more people a Messages are sent through channels like letters email and in person b Elements in the communication process are sender source encoding information message development media decoding and feedback i The source the person organization that has information to share Company salesperson celebrity have q scores 1 Q quality scores considers 2 factors consumers level of familiarity with a name and the number of respondents who indicate that a person program or character is a favorite ii Encoding the process of putting words thoughts messages into symbolic form in such a way that they will be understood by the receiver customer Symbols are particularly good for this iii The channel how the communication travels from the source to the receiver 2 types nonpersonal with no personal contact with consumer personal channels involving direct contact iv Buzz marketing a subset of viral marketing wherein companies hire socially active consumers to promote products to their friends relatives and acquaintances v Decoding the process of transforming the message back into thought The key is for the decoded message to resemble the encoded message Problems can occur if there is too much noise which is anything that interferes with or distorts the message vi Feedback the receivers response to the message Can be difficult to assess One way to get feedback from objective sources 5 Response models occurs a Describe the process that receivers must go through before a desired behavior b Each model has three successive stages i Cognitive stage the thinking stage Where the receiver becomes aware of ii Affective stage the feeling stage Where the receiver forms a liking or the message preference for the ad object iii Behavioral stage the doing stage Where the receiver acts on the preference c AIDA Model developed for personal selling represents the stages a salesperson must take a customer through to induce purchase Attention interest desire action Promotion one of the four elements of the marketing mix The communication link between sellers and buyers for the propose of influencing informing or persuading a potential buyer s purchasing decision Chapter 18 Advertising and PR What is 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 Advertising mediums o Movies TV and video games Product placement mentions and interactivity o Newspaper direct mail magazines coupons flyers classified ads o Sports soccer nascar volleyball Advertising pervasiveness o The average american is exposed to more than 3000 ads per day Types of advertising Product advertising o Promotes the uses features and benefits of specific products Pioneer primary demand o Focuses on a product category o Got milk beef Advocacy advertising conveys a firms position on a public issue Competitive points out a brand s advantage relative to competing brands o Three types characteristics Comparative compares two or more brands on one or more Reminder reminds customers of an established brand s characteristics and benefits Reinforcement assures current users they have made the right choice device o The next wave of advertising Mobile ads advertisements sent to mobile phones or other wireless First mobile ad was sent in 2000 Now accounts for 2 of the advertising market New frontiers in advertising Current state of advertising with all the advertising clutter recall of a typical ad is only 10 Scheduling advertising Continuous runs steadily throughout the year good for continuously used products Flighting runs in spurts Heavy none Good for seasonal products Pulsing a combination Runs steadily but with bursts at certain times 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 Is it more effective to touch 100 customers once of 25 customers 4 times Curiosity recognition decision Not until the 3rd time you reach them that they decide how they feel about what s being advertised Measuring advertising advertisement Advertising effectiveness Krugman 1972 o Exposure 1 what is it o Exposure 2 what of it o Exposure 3 what is it s Measuring advertising effectiveness Pretest posttest o Pretest o Post test Evaluation performed before a campaign begins Consumer jury test Evaluation of advertising effectiveness after the
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