Chapter 14: Communicating Customer Value: Integrated Marketing Communications Strategy

Question 0

Advertising

Answer 0

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

Question 1

Promotion Mix (or Marketing Communications Mix)

Answer 1

The specific blend of promotion tools that the company used to persuasively communicate customer value and build customer relationships.

Question 2

Sales Promotion

Answer 2

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

Question 3

Personal Selling

Answer 3

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

Question 4

Public Relations (PR)

Answer 4

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

Question 5

Direct Marketing

Answer 5

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

Question 6

Integrated Marketing Communications (IMC)

Answer 6

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

Question 7

Buyer-Readiness Stages

Answer 7

The stages consumers normally pass through on their way to making a purchase, including awareness, knowledge, liking, preference, conviction, and the actual purchase.

Question 8

Personal Communication Channels

Answer 8

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 an internet “chat.”

Question 9

Word-of-Mouth Influence

Answer 9

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

Question 10

Buzz Marketing

Answer 10

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

Question 11

Nonpersonal Communication Channels

Answer 11

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

Question 12

Affordable Method

Answer 12

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

Question 13

Percentage-of-Sales Method

Answer 13

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

Question 14

Competitive-Parity Method

Answer 14

Setting the promotion budget to match competitors’ outlays.

Question 15

Objective-and-Task Method

Answer 15

Developing the promotion budget by-
1. Defining specific promotion objectives,
2. Determining the tasks needed to achieve these objectives
3. Estimating the costs of performing these tasks.
The sum of these costs is the proposed promotion budget.

Question 16

Push Strategy

Answer 16

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.

Question 17

Pull Strategy

Answer 17

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 channels.