14. Communicating Customer Value

Question 0

The specific blend of advertising, sales promotion, public relations, personal selling and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships

Answer 0

Promotion mix (or marketing communications mix)

Question 1

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

Answer 1

Advertising

Question 2

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

Answer 2

Sales promotion

Question 3

Building good relations with the company’s various publics by obtaining favourable publicity, building up a good corporate image and handling or heading off unfavourable rumours, stories and events

Answer 3

Public relations (PR)

Question 4

Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships

Answer 4

Personal selling

Question 5

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships

Answer 5

Direct marketing

Question 6

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

Answer 6

Integrated marketing communications (IMC)

Question 7

Sender
Encoding
Message
Media
Decoding
Receiver
Response
Feedback
Noise

Answer 7

Nine elements in the communication process

Question 8

Identify a target audience
Determine a message
Design a message
Choose the media through which to send the message
Choose the message source
Collect feedback

Answer 8

Steps in developing effective marketing communication

Question 9

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

Answer 9

Buyer-readiness stages

Question 10

Channels through which two or more people communicate directly with each other including face to face, on the phone, through mail or email, or even through an Internet ‘chat’

Answer 10

Personal communication channels

Question 11

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

Answer 11

Word-of-mouth influence

Question 12

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

Answer 12

Buzz marketing

Question 13

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

Answer 13

Non-personal communication channels

Question 14

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

Answer 14

Affordable method

Question 15

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

Answer 15

Percentage-of-sales method

Question 16

Setting the promotion budget to match competitors’ outlays

Answer 16

Competitive-parity method

Question 17

Developing the promotion by defining specific objectives, determining the tasks that must be performed to achieve these objectives and estimating the costs of performing these tasks whereby the sum of these costs is the proposed promotion budget

Answer 17

Objective-and-task method

Question 18

A promotional strategy that calls for using the sales force and trade promotion to push the product through channels

The promoter promotes the product to channel members to induce them to carry the product and to promote it to final consumers

Answer 18

Push strategy

Question 19

A promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product

If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from the producers

Answer 19

Pull strategy