14. Communicating Customer Value Flashcards
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
Promotion mix (or marketing communications mix)
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor
Advertising
Short-term incentives to encourage the purchase or sale of a product of service
Sales promotion
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
Public relations (PR)
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
Personal selling
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Direct marketing
Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent and compelling message about the organisation and its products
Integrated marketing communications (IMC)
Sender Encoding Message Media Decoding Receiver Response Feedback Noise
Nine elements in the communication process
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
Steps in developing effective marketing communication
The stages consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction and purchase
Buyer-readiness stages
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’
Personal communication channels
Personal communication about a product between target buyers and neighbours, friends, family members and associates
Word-of-mouth influence
Cultivating opinion leaders and getting them to spread information about a product or service to others in their communities
Buzz marketing
Media that carry messages without personal contact or feedback, including major media, atmospheres and events
Non-personal communication channels
Setting the promotion budget at the level which management thinks the company can afford
Affordable method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
Percentage-of-sales method
Setting the promotion budget to match competitors’ outlays
Competitive-parity method
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
Objective-and-task method
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
Push strategy
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
Pull strategy
