Chapter 14 Flashcards
Promotion mix
The specifics blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships
What are the 5 promotional tools?
Advertising
Sales promotion
Personal selling
Public relations
Direct and digital marketing
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Sales promotion
Short term incentives to encourage the purchase or sale of a product or a service
Personal selling
The personal presentation by the firm’s sales force for the purpose of engaging customers, making sales, and building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events
Direct and digital marketing
Involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
What are the major factors that are changing the face of today’s margin communications?
Consumers are changing, they are better informed, and more communication empowered
Marketing strategies are changing, marketers are shifting away from mass marketing
Digital technology is causing changes in the ways companies and customers communicate with each other
Content marketing
Involves creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels
What are the 9 elements of communication
Sender
Encoding
Message
Media
Decoding
Receiver
Response
Feedback
Noise
What are the several steps in developing an effective integrated communications and promotion program?
Identifying the target audience
Determining the communication objectives
Designing a message
Choosing communication channels and media
Selecting the message source
Collecting feedback
What are the 4 methods used to set the total budget for advertising?
Affordable method
Percentage of sales method
Competitive parity method
Objective and task method
Affordable method
The promotion budget is set at the level management thinks the the company can afford
Percentage of sales method
The promotion budget is set at a certain percentage of current or forecasted sales or as a percentage of unit sales price
Competitive parity method
The promotion budget is set to match competitors outlays
Objective and task method
The promotion budget is developed by defining the specific promotion objectives, determining the tasks needed to achieve these objectives, and by estimating the costs of performing these tasks.
The sum of the costs is at the proposed promotion budget
What are the 2 basic promotion mix strategies
Push strategy
Pull strategy
Push strategy
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
Calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that ‘pulls’ the product through the channel
Sender
The party sending the message to another party
Econding
The prices of putting thought into symbolic form
Message
The set of symbols that the sender transmits
Media
The communication channels through which the message moves from the sender to the receiver
Decoding
The process by which the receiver assigns meaning to the symbols encoded
Receiver
The party receiving the message sent by another party
Response
The reaction of the receiver after being exposed to the message
Feedback
The part of the receiver’s response communicated back to the sender
Noise
The unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent
