Exam 4 Review MARK 3321 Principles of Marketing Instructor Dr Yiyi Li MARK 3321 Exam 4 Review 1 Key Terms Interpersonal communication direct face to face communication between two or more people 1 2 Mass communication the communication of a concept or message to a large audience through a mass medium images or videos 3 Encoding the conversion of ideas and thoughts into a message in the form of words signs 4 Decoding the interpretation of the language and symbols sent by the source through a channel 5 Integrated marketing communications IMC the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer Institutional advertising a form of advertising designed to enhance a company s image rather than promote a particular product 6 7 Advocacy advertising a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks 8 Advertising appeal a reason for a person to buy a product 9 Advertising campaign a series of related advertisements focusing on a common theme slogan and set of advertising appeals 10 Media planning the series of decisions advertisers make regarding the selection and use of media allowing the marketer to optimally and cost effectively communicate the message to the target audience 11 Cooperative advertising an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer s brand 12 Infomercial a 30 minute or longer advertisement that looks more like a television talk show than a sales pitch 13 Public relations the element in the promotional mix that evaluates public attitudes identifies issues that may elicit public concern and executes programs to gain public understanding and acceptance 14 Publicity the effort to capture media attention often initiated through press releases that further a corporation s public relations plans 15 Product placement a public relations strategy that involves getting a product service or company name to appear in a movie television show radio program magazine newspaper video game video or audio clip book or commercial for another product on the Internet or at special events 1 Exam 4 Review MARK 3321 Principles of Marketing Instructor Dr Yiyi Li 16 Sponsorship a public relations strategy in which a company spends money to support an issue cause or event that is consistent with corporate objectives such as improving brand awareness or enhancing corporate image 17 Crisis management a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event 18 Price that which is given up in an exchange to acquire a good or service 19 Market share a company s product sales as a percentage of total sales for that industry 20 Status quo pricing a pricing objective that maintains existing prices or meets the competition s prices 21 Dynamic pricing the ability to change prices very quickly often in real time 22 Markup pricing the cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for 2 Knowledge and Application CH15 Marketing Communications 15 1 The elements of the promotional mix The elements of the promotional mix include advertising public relations sales promotion personal selling and social media Advertising is a form of impersonal one way mass communication paid for by the source Public relations is the function of promotion concerned with a firm s public image Sales promotion is typically used to back up other components of the promotional mix by stimulating immediate demand Personal selling is a purchase situation involving a personal paid for communication between two people in an attempt to influence each other In this dyad both the buyer and the seller have specific objectives they wish to accomplish Social media are promotion tools used to facilitate conversations among people online Finally paid media is based on the traditional advertising model whereby a brand pays for media space 15 2 Four goals of promotion 1 Informing to convert an existing need into a want or to stimulate interest in a new product More prevalent during the early stages of the product life cycle Important for promoting complex and technical products such as automobiles computes and investment services The main goal when the product enters the growth stage Emphasizes competitive advantages and often appeals to emotional needs 2 Persuading to stimulate a purchase or an action 3 Reminding to keep the product and brand name in the public s mind Used most frequently during the maturity stage e g soda car dealers 2 Exam 4 Review MARK 3321 Principles of Marketing Instructor Dr Yiyi Li In hopes customers become brand advocates themselves 4 Connecting to form relationships with customers through social media platforms 15 3 Types of media Paid media a category of promotional tactic based on the traditional advertising model whereby a brand pays for media space Traditionally paid media has included television magazine outdoor radio or newspaper advertising Paid media also includes display advertising on websites pay per click advertising on search engines paid ads on Facebook and Instagram etc Earned media a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services Owned media a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands value to customers Owned media includes the company s websites as well as its official presence on Facebook Twitter YouTube channels blogs and other digital platforms 15 4 The AIDA concept and its relationship to the promotional mix The AIDA model outlines the four basic stages in the purchase decision making process which are initiated and propelled by promotional activities 1 attention the advertiser must first gain the attention of the target market 2 interest create interest in the product 3 desire show how product features will satisfy customer needs and 4 action a special offer or strong closing sales pitch may drive the consumer to purchase the product This model proposes that consumers respond to marketing messages in a cognitive thinking affective feeling and conative doing sequence It shows that although advertising does have an impact in the later stages it is most useful in gaining