Exam 3 Book Notes

Integrated Marketing Communications (IMC)

Represents the promotion dimension of the four P's; encompasses a variety of communication disciplines- general advertising, personal selling, sales promotions, public relations, direct marketing, and electronic media - in combination to provide clarity, consistency, and maximum communicative impact.

The Sender (The communication Process)

The firm from which an IMC message originates; the sender must be clearly identified to the audience

The Transmitter (The communication Process)

An agent or intermediary with whom the sender works to develop the marketing communications;

Example: a firm's creative department or an advertising agency

Encoding (The communication Process)

Converting the sender's idea into a message, which could be verbal, visual, or both.

Ex: Home depots advertises "Amazing Father's Day Deals at 25% off"

The most important facet of encoding is what the consumer receives; they have to believe what they are being presented with.

The Communication Channel (The communication Process)

The medium- Print, broadcast, Internet - that carries the message

The Receiver (The communication Process)

The person who reads, hears, or sees and processes the information contained in the message and/or the advertisement.
The sender hopes that the message is received by the target audience

Decoding (The communication Process)

The process in which the receiver interprets the senders message

Noise (The communication Process)

Any interference that stems from the competing messages, a lack of clarity in the message, or flaw in the medium, and it poses a problem for all communication channels
Ex) Home depot may choose to advertise in the newspaper, which is not read by the target market, which greatly decreases its relevance

Feedback Loop (The communication Process)

Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly. Many Forms:

Customer's Purchase
Complaint or compliment
The redemption of a coupon or rebate

The AIDA Model

Consumers go through several steps before actually buying or taking some other action

Awareness leads to Interest, which leads to Desire, which leads to Action
At any stage the consumer makes judgements about whether to take the next step in the process

Awareness (The AIDA Model)

Brand Awareness; Refers to the customers ability to recognize or recall that the brand name is a particular type of retailer

Aided Recall (Awareness)

When consumers indicate they know the brand when the name is presented to them

Top-of-Mind Awareness (Awareness)

The highest level of awareness occurs when consumers mention a specific brand name first when they are asked about a product or service
This is built by having a memorable name, repeatedly exposing their name to the consumers, location, and sponsorships

(I)nterest (The AIDA Model)

Consumers must be persuaded that it is a product worth investigating
Marketers do so by ensuring that the ad's message includes attributes that are of interest to the target audience

(D)esire (The AIDA Model)

Move the consumers thoughts from "I like it" to "I want it"

(A)ction (The AIDA Model)

The ultimate goal of any marketing communication
This step by step process applies particularly well to high-involvement products, like a new car.

The Lagged Effect

Sometimes consumers don't act immediately after receiving a marketing communication.

It may take several viewings of the message for the consumer to grasp the full message

Advertising (Elements of an IMC strategy)

Perhaps the most visible of the IMC components

"The placement of announcements and persuasive messages in or space purchased in any mass media"
Extremely effective at creating awareness

Personal Selling (Elements of an IMC strategy)

The two-way flow of communication between buyer and seller.

Especially important in B2B sales

The cost of communicating directly with a potential customer is quite high compared to other forms of promotion

Sales Promotion (Elements of an IMC strategy)

Special incentives or excitement-building programs that encourage the purchase of a product or service.

Coupons
Rebates
Contests
Free Samples

Direct Marketing (Elements of an IMC strategy)

Marketing then communicates directly with target customers to generate a response or transaction; Has received the greatest increase in spending recently.

Examples: Telemarketing, Mail, Infomercials, Catalogs

M-Commerce (Direct Marketing)

Mobile commerce, which involves communicating with and even selling to customers through wireless handheld devices

Public Relations (Elements of an IMC strategy)

The organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image

Website (Electronic Media)

Used to build their brand image and educate customers about their products or services

Corporate Blog (Electronic Media)

Contains periodic posts on a common webpage
A well received blog can create positive word of mouth, connect customers by forming a community, increase sales because the company can respond directly to the customer's comment.

Social Shopping (Electronic Media)

A communication channel in which consumers use the Internet to engage in the shopping process by exchanging preferences, thoughts, and opinions among friends, family, and other.

Many firms encourage customers to post reviews of products they have bought or used

Online Games (Electronic Media)

A particularly successful way to reach younger customers

Community Building (Electronic Media)

Many firms operate Web Sites devoted to community building

Can be electronic or in person

Ex) REI offers hiking trips for individuals within the community that have similar hobbies

Goals (Planning for and Measuring IMC Success)

The goals both short-term and long-term should be explicitly defined and measured

Short-Term: Generating inquiries, increasing awareness, and prompting trial
Long-Term: Increasing Sales, Market Share, and Customer Loyalty

Setting/Allocating the IMC Budget (Planning for and Measuring IMC Success)

After the budget is decided upon, the company must decide how they will split up the money between different communication channels.

Objective-and-task method (Setting/Allocating the IMC Budget)

Determines the budget required to undertake specific tasks to accomplish communication objectives.

Rule of thumb methods (Setting/Allocating the IMC Budget)

Use prior sales and communication activities to determine the present communication budget.

Measuring Success Using Marketing Metrics (Planning for and Measuring IMC Success)

When measuring IMC success, the firm should examine when and how often consumers have been exposed to various marketing communications

Frequency (Measuring Success using Marketing Metrics)

How often the audience is exposed to a communication within a specific period of time

Reach (Measuring Success using Marketing Metrics)

The percentage of the target population exposed to a specific marketing communication

Gross Rating Points (Measuring Success using Marketing Metrics)

Gross Rating Points = Frequency x Reach

Web Tracking Software (Measuring Success using Marketing Metrics)

Indicated how much you time viewers spend on particular web pages and number of pages they view.

Planning, Implementing, and Evaluating IMC Programs - Using Google (Planning for and Measuring IMC Success)

Search Engine Marketing: Allows companies to be viewed by consumers by just typing in a few words

Chapter 17

Advertising, Public Relations, and Sales Promotion

Advertising

Paid form of communication delivered through media from an identifiable source.

not free
Advertising must be carried by some sort of Medium
Legally, the source of the message must be known
Advertising represents a persuasive form of communication

Steps in Planning and Executing an Ad Campaign

Identify the target audience
Set Advertising Objectives
Determine the Advertising Budget
Convey the Message
Evaluate and Select Media
Create advertisements
Asses impact using Marketing Metrics

1) Identify The Target Audience

The success of an advertising program depends on how well the advertiser can identify its target market

Advertising Plan (2) Set Advertising Objectives)

Advertising Plan: A subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation.

Pull Strategies (2) Set Advertising Objectives)

The goal is to get the customers to pull the product into the supply chain by demanding it.

Push Strategies (2) Set Advertising Objectives)

Designed to increase demand by focusing on wholesalers, distributors, or sales people.

Types of Advertising (2) Set Advertising Objectives)

Informative Advertising
Persuasive Advertising
Reminder Advertising

Informative advertising (Types of Advertising)

Communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase.

Helps at the beginning of a life cycle when the consumers have little information about the product.

Persuasive Advertising (Types of Advertising)

Motivates consumers to take action after they have attained a certain level of brand awareness
Generally occurs in the growth and early maturity stages

Reminder Advertising (Types of Advertising)

Communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in their maturity stage of the life cycle

Focus of Advertisements (2) Set Advertising Objectives)

Product focused
Institutional Advertisements
Primary Demand
Selective Demand

Product Focused (Focus of Advertisements)

Focus on informing, persuading, or reminding consumers about a specific product or service

Institutional Advertisements (Focus of Advertisement)

Inform, persuade, and remind consumers about issues related to places, politics, an industry, or corporation.

Primary Demand (Focus of Advertisement)

Generate demand for a product category or entire industry (Ex: Got Milk?)

Public service Advertising: focuses on public welfare and generally, is sponsored by non profit institutions
Social Marketing: applying marketing techniques to social issues

Selective Demand (Focus of Advertisements)

Demand for a specific brand

3) Determine the advertising budget

First, firms must consider the role that advertising plays in their attempt to meet their overall promotional objectives

Second, advertising expenditures vary over the course of the product life cycle

Third, the nature of the market and the product influences the size of advertising budgets

4) Convey the message

Consists of:

the message
the appeal

The message (4)Convey the message)

Provides the target audience with reasons to respond in the desired way

Unique selling Proposition:

The common theme or slogan in an advertisement
It communicates the unique attributes of the product and thereby becomes a snapshot of the entire campaign

The appeal (4)Convey the message)

There are Informational Appeals, and Emotional Appeals

Informational Appeals (The Appeal)

Help consumers to make decisions by offering factual information and strong arguments
Ex) Kleenex boasts about the tangible benefits its product offers

Emotional Appeals (The Appeal)

Aims to satisfy consumers' emotional desires rather than their utilitarian needs.

Creates a bond between the brand and the consumer

Ex) Nivea lotion creates a sexual emotion with the slogan "it makes the difference between going out and staying in"

5) Evaluate and Select Media

Media Planning
Media Mix
Media Buy
Mass and Niche Media
Choosing the right medium
Determining the Advertising Schedule

Media Planning (5) Evaluate and Select Media)

Refers to the process of evaluating and selection of the media mix

Media Mix (5) Evaluate and Select Media)

The combination of media used and the frequency of advertising in each medium

Media Buy (5) Evaluate and Select Media)

The actual purchase or airtime or print pages

Generally the largest expense in the advertising budget

Mass and Niche Media (5) Evaluate and Select Media)

Mass Media: Includes national newspapers, magazines, radio, and television; Ideal for reaching large numbers of anonymous members
Niche Media: More focused and generally used to reach narrow segements

Choosing the right medium (5) Evaluate and Select Media)

Each individual medium has its own special benefits

Determining the Advertising Schedule (5) Evaluate and Select Media)

Specifies the timing and duration of advertising
Three types of schedules: Continuous, Flighting, and Pulsing

Continuous (Determining the Advertising Schedule)

Runs steadily throughout the year and therefor is suited to products and services that are consumed continually at relatively steady rates

Flighting (Determining the Advertising Schedule)

Implemented in spurts, generally functions for products whose demand fluctuates, such as tennis racquets

Pulsing (Determining the Advertising Schedule)

Maintains a base level of advertising but increasing advertising intensity during certain periods.

IKEA boosts their advertisements in August before school

6) Create Advertisements

Often the execution style of the ad will determine the medium used

7) Asses impact using Marketing Metrics

Pre-testing
Tracking
Post-Testing

Pre-Testing (7) Asses impact using Marketing Metrics)

Testing before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

Tracking (7) Asses impact using Marketing Metrics)

Monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running

Post-Testing (7) Asses impact using Marketing Metrics)

The evaluation of the campaign's impact after it has been implemented

Advertisers asses the sales and/or communication impact

Regulatory and Ethical Issues in Advertising

Regulation of advertising involves a mix of formal laws and informal restrictions designed to protect consumers from deceptive practices.

The line between what is legal and illegal is more difficult to discern when it comes to puffery.

Puffery: the legal exaggeration of praise, stopping just short of deception, lavished on a product

Public Relations

Involves managing communications and relationships to achieve various objectives, such as building and maintaining a positive image of the firm.

Cause related marketing (Public Relations)

Commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit.

Ex) A shoe company that is partnered with a service organization in Argentina

Event Sponsorship (Public Relations)

Occurs when corporations support various activities, usually in the cultural or sports and entertainment sectors

Sales Promotion

Special incentives for excitement building programs that encourage consumers to purchase the product

Types: Coupons, Deals, Premiums, Contests, Sweepstakes, Loyalty Programs, Point-of-purchase displays, Rebates, Product Placement

Coupons (Sales Promotion)

Mainly used by supermarkets but other retailers will use them to lure customers away from competitors

Deals (Sales Promotion)

A short term price reduction that can take several forms, such as buy-one-get-one-free
Encourages customers to try the product simply because of the discount

Premiums (Sales Promotion)

Offers an item for free or bargain price for performing some type of action, such as buying or sampling

Contests (Sales Promotion)

A brand sponsored competition that takes some sort of skill

Sweepstakes (Sales Promotion)

Completely based on luck, or lack there of

Loyalty Programs (Sales Promotion)

Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.

Point-of-Purchase displays (Sales Promotion)

Merchandise displays located at the point of purchase, created impulse buys

Rebates (Sales Promotion)

A portion of the purchase price is returned to the customer after the rebate form is filled out

Product Placement (Sales Promotion)

Placing a product on a TV show or a movie to build awareness and image

Using Sales Promotion Tools

When discounting the price, the company has to be careful because some customers will simply shift their future needs to the present to acquire the discounted price

Cross Promoting (Using Sales Promotion Tools)

When two or more firms join together to reach a specific target market
Ex) Burger King ran ads with three different companies

Motts Strawberry applesauce to attract healthier consumers; Star wars memorabilia to attract collectors and fans etc.

Chapter 18

Personal Selling & Sales Management

The Personal Selling Process

Generate and Qualify leads
Pre-Approach
Sales Presentation and overcoming reservations
Closing the sale
Follow-up

1. Generate and Qualify leads (The Personal Selling Process)

Generate and qualify leads
leads = potential customers --> asses their potential

Don't judge a book by its cover, Assess their potential (can they pay for product?)
ex: internet, trade shows, cold calls, telemarketing

2. Pre-approach (The Personal Selling Process)

Occurs prior to meeting customer for the first time
Conduct additional research and develop plans for meeting with customer --> goals for the meeting, practice with role play

3. Sales Presentation and overcoming reservations (The Personal Selling Process)

Face to Face meeting
Beginning is key, salesman establishes where customer is in the buying process
Ask customer questions to assess needs, after gaining understanding for customer they can apply knowledge to help customer and handle reservations

4. Closing the sale (The Personal Selling Process)

Obtaining commitment from the customer to make a purchase
An unsuccessful close one day can mean laying groundwork for future successful closes

5. Follow-up (The Personal Selling Process)

With relationship selling the sale is never really over
Customers attitudes after the sale become the basis for how they will purchase in the future
Solidify customer relationship; Five service quality dimensions: Reliability, Responsiveness, Assurance, Empathy, Tangibles.

Reliability (Follow-up)

The salesperson and the supporting organization must deliver the right product or service on time

Responsiveness (Follow-up)

The sales person and support group must be ready to deal quickly with any issue

Assurance (Follow-up)

Customers must be assured through adequate guarantees that their purchase will perform as expected

Empathy (Follow-up)

The sales person and support group must have a good understanding of the problems the customer has

Tangibles (Follow-up)

The tangible offer a signal that the product is high quality, even though the packaging has nothing to do with the product's performance

Sales Management (Managing the Sales Force)

Involves the planning, direction, and control of personal selling activities

Sales Force Structure (Managing the Sales Force)

Company Sales Force: Comprised of people who are employee of the selling company
Independent agents (Manufacturers representatives): Sales people who sell a manufacturer's products on an extended contract basis but are not employee of the manufacturer

Sales Person Duties (Managing the Sales Force)

Order getting
Oder Taking
Sales Support
Combination duties

Order Getting (Sales Person Duties)

An order getter is a sales person whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale

Order Taking (Sales Person Duties)

An order taker is a sales person whose primary responsibility is to process routine orders or reorders or re-buys for products

Sales Support (Sales Person Duties)

Enhance and help with the overall selling effort

Ex) Geek Squad at Best Buy offers technical support

Combination Duties (Sales Person Duties)

Some individuals will fill a combination of these roles

Recruiting and Selecting Sales People

The most important activity in the recruitment process is to determine exactly what the sales person will be doing and what personal traits and abilities a person should have to do the job well.

Personality Traits (Recruiting and Selecting Sales People)

Personality
Optimism
Resilience
Self-Motivation
Empathy

Sales Training

On-the-job training programs are excellent for communicating selling and negotiation skills because managers observe the sales trainees in real life situations
Online training programs have revolutionized the way training happens in many firms

Financial Rewards (Motivating and Compensating Sales People)

Sales people's compensation usually has several components; A bulk of any compensation is made up of salary, commission, or a combination of the two

Salary
Commission
Bonus
Sales Contest

Bonus (Financial Rewards)

Payment made at a management's discretion when the sales person attains a certain goal

Sales Contest (Financial Rewards)

Short-Term incentive designed to elicit a specific response from the sales force

Ex) Car Sales: Whoever sells the most new cars this month will receive $1000

Non-financial Rewards (Motivating and Compensating Sales People)

They should have high symbolic value, as plaques, pens, or rings do
Free trips or days off are also effective

Exam 3 Book Notes

Marketing 3000 with Poor at University of Missouri- Columbia

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