CH. 14 Flashcards

Business 346 with Danes at California State University - Polytechnic State University, San Luis Obispo

About this deck

By: Christiana Newcomb
Textbook:

Principles of Marketing (13th Edition)
Created: 2011-03-13
Size: 28 flashcards
Views: 37

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Promotion Mix (Marketing Communications Mix)

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. Made up of 5 elements:

1. Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

2. Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or service

3. Personal Selling

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationship

4. Public Relations

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

5. Direct Marketing

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships- the use of direct mail, telephone, direct-response television, e-mail, the Internet, and other tools to communicate directly with specific consumers

IMC (Integrated Marketing Communications)

Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

Why is there a need for integrated marketing communications (IMC)

Because all the new forms of media bombard consumers in a way that can send too many different messages to the consumer and result in confused company images. IMC aims to keep a clear clean image in the consumer mind so that the company is always perceived well.

How is the communications landscape changing?

1. Consumers are more informed and more communicative because of better technology

2. Marketing strategies are changing away from mass marketing toward focused marketing programs for better customer relationships

The Communication Process

9 elements needed to effectively communicate:

Communication Parties

1. Sender- the party sending the message to another party

2. Receiver- the party receiving the message

Communication Tools

3. Message- the set of symbols that the sender transmits (the actual ad)

4. Media- The communication channels through which the message moves from sender to receiver (ex. TV, Internet...)

Communication Functions

5. Encoding- the process of putting thought into symbolic form (using words, sounds, and illustrations to make advertisements)

6. Decoding- the process by which the receiver assigns meaning to the symbols encoded by the sender (the way a consumer interprets ads & images)

7. Response- the reactions of the receiver after being exposed to the message

8. Feedback- the part of the receiver's response communicated back to the sender

Noise

9. The unplanned static or distortion during the communication process which results in the receiver's getting a different message than the one the sender sent

Steps in Developing Effective Marketing Communication

1. Identifying the Target Audience

2. Determining the Communication Objective

3. Designing a Message

4. Choosing a Media

5. Collecting Feedback

Buyer-readiness Stages

The stages consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase

AIDA Model for effective messages

Attention (get customer attention)

Interest (hold their interest)

Desire (arouse desire)

Action (obtain action- the customer makes a purchase)

Two Broad types of Communication Channels

1. Personal

2. Nonpersonal

Personal Communication Channels

Channels through which two or more people communicate directly with each other, including face to face, on the phone, through mail or e-mail, or Internet chat

Word-of-mouth Influence

Personal communication about a product between target buyers and neighbors, friends, family members, and associates

Buzz Marketing

Cultivating opinion leaders and getting them to spread information about a product or service to others in their communities

Nonpersonal Communication Channels

Media that carry messages without personal contact or feedback, including major media, atmospheres, and events

Affordable Method

Setting the promotion budget at the level management thinks the company can afford

Percentage-of-sales Method

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

Competitive-parity Method

Setting the promotion budget to match competitors' outlays

Objective-and-task Method

Developing the promotion budget by 1. defining specific objectives 2. determining the tasks that must be performed to achieve these objectives, and 3. estimating the costs of performing these tasks. The sum of these cots is the proposed promotion budget

Push Strategy

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers

Pull Strategy

A promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel

About this deck

By: Christiana Newcomb
Textbook:

Principles of Marketing (13th Edition)
Created: 2011-03-13
Size: 28 flashcards
Views: 37

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj