Chapter 12 Flashcards
Promotion mix (marketing communications mix)
Specific blend of promotion tools:
- advertising
- sales promo
- personal selling
- public relations (PR)
- direct and digital marketing
Promotional mix objectives
- Inform prospective buyers about the benefits of the product
- Persuade them to try it
- Remind them later about the benefits they enjoyed by using the product
Factors changing today’s marketing communications
Changing consumers- better informed and more empowered consumers
Changing marketing strategies- more focus on narrowly defined micro markets
Advancements in digital technology- brand websites, email, blogs, streaming content, social media, online communities
Traditional media dominance declining- TV, magazines, newspapers
Now highly targeted media to engage smaller communities with more personalized/interactive content
Content marketing managers
Create, inspire and share brand messages and conversations
Integrated marketing communications
Refers to carefully integrating and coordinating the company’s many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands
Advertising
- reach masses of buyers at low cost per exposure
- builds long term image for product
- triggers quick sales
- public nature and viewed as legitimate
- very expressive visuals, print, sound, color
- impersonal and lacks direct persuasiveness of salespeople
Personal selling
- personal interaction between two or more people
- allows all kinds of customer relationships to spring up
- buyer feels greater need to listen and respond
- most expensive promo tool
Sales promotion
- wide assortment of tools with unique qualities
- attracts attention and offers incentives to purchase
- used to dramatize product offers and boost sales
- invites and rewards quick response but has short lived effects
Public relations
- believable to readers
- can dramatize a company or product
- reaches many prospects
- effective and economical when well thought out
Direct and digital marketing
- more targeted and interactive
* immediate and personalized
Advertising
Any paid form of non personal communication about an organization, product, service, or an idea by an identified sponsor
Disadvantages
- very expensive
- lack of direct feedback
Personal selling
Consists of two way flow of communication between buyer and seller, often face to face, designed to inflict purchase decision
Disadvantages
-very expensive and messaging may differ from sales rep to sales rep
Public relations
Communication management that seeks to influence feelings, opinions, or beliefs
Publicity- non personal, indirectly paid presentation of an organization, product, or service
Ex. Not paying for ad space but trying to get media to run a favorable story
Disadvantages:
-hard to control media and type of coverage
Sales promo
Examples- coupons, rebates, sweepstakes, contests
Disadvantages:
- easily duplicated, can lead to promotion wars
- if done too often (coupon) customers will come to expect it and wait for it
Direct marketing
Examples- face to face selling, direct mail, catalogs, telephone solicitations, direct response ads on TV
Disadvantages:
-expensive and time consuming, declining response
Push strategy
Using sales force and trade promotion to push the product through channels
Pull strategy
Spending a lot of consumer advertising and promotion to induce final consumer to buy product, creating demand vacuum that pulls product through channel
Advertising objective
Specific communication task to be accomplished with a specific target audience during specific period of time
Informative advertising
Used heavily when introducing new product category
Persuasive advertising
More important as competition increases. Can also be competitive advertising- directly or indirectly compares to competitive brands
Reminder advertising
Important for mature products; helps maintain customer relationships and keep consumers thinking about the product
Methods of setting advertising budget
Advertising budget- refers to dollars and other resources allocated to a product or company advertising program
Affordable method- sets the promotion budget at the level management thinks the company can afford
Percentage of sales method- sets promo budget at certain percentage or forecasted sales as a percentage of the unit sales price
Competitive-parity method- sets promo to match competitors’ outlays
Objective and task method- involves developing promo budget by defining specific objectives, determining the tasks that must be performed to achieve these objectives and estimating the costs of performing these tasks
Advertising strategy
Strategy by which company accomplishes its advertising objectives
Two major elements- creating advertising messages and selecting advertising media
Madison & Vine
Represents merging of and eating and entertainment to create new avenues for reaching customers with more engaging messages
Advertainment
Make ads so entertaining that people will want to watch them
Brand integrations (brand entertainment)
Involve making the brand an inseparable part of some other form of entertainment or content
Creating effective advertising messages
- Plan message strategy- general message that will be communicated to consumers
- Develop big idea that will bring message strategy to life in distinctive and memorable way
Message can be presented in various message execution styles
Media selection
Advertising media- vehicles through which advertising messages are delivered to their intended audiences
Steps:
- Determining reach, frequency, impact and engagement
- Choosing among major media types
- Selecting specific media vehicles- paid, earned, owned
- Choosing media timing
Types of major media types
Tv, digital mobile and social media, newspapers, direct mail, magazines, radio, outdoor
Return on advertising investment
Net return on advertising investment divided by costs of the advertising investment
Should regularly evaluate
•communication efforts
•sales and profit effects
Organizing for advertising
Small firms may use sales department staff
Large companies may have their own advertising departments
Advertising agency- assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs
International advertising decisions
•Degree of adaptation •Standardization benefits -lower advertising costs -greater global advertising coordination -more consistent worldwide image •Standardization drawbacks -ignores the fact that country markets differ in their cultures, demographics, and economic conditions
Public relations
- promotes products, people, ideas, organizations, and nations
- builds good relations with consumers, investors, media, and communities
- rebuilds interest in commodities for trade associations
Functions of PR
- press relations or press agency- creating and placing newsworthy information in the news media to attract attention to a person, product, or service
- product publicity- publicizing specific products
- public affairs- building and maintaining national or local community relationships
- lobbying- building and maintaining relationships with legislators and government officials to influence legislation and regulation
- investor relations- maintaining relationships with shareholders and others in the financial community
- development- working with donors or members of nonprofit organizations to gain financial or volunteer support
