Chapter 14 Flashcards
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
Promotion mix (marketing communications mix)
Any paid form of nonpersonal 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 or a service.
sales promotion
Personal presentation by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.
personal selling
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
public relations
Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Direct and digital marketing
Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.
content markeing
Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Integrated marketing communications (IMC)
The stages consumers normally pass through on their way to a purchase: awareness, knowledge, liking, preference, conviction, and, finally, the actual purchase.
Buyer-readiness stages
Channels through which two or more people communicate directly with each other, including face-to-face, on the phone, via mail or email, or even through an internet “chat.”
Personal communication channels
The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.
Word-of-mouth influence
Cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities.
buzz marketing
Media that carry messages without personal contact or feedback, including major media, atmospheres, and events.
Nonpersonal communication channels
Setting the promotion budget at the level 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 budget
by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Objective-and-task method
A promotion strategy that 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.
Push strategy
A promotion strategy that 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.
pull strategy
