Chapter 14 Vocab Flashcards
promotion mix (marketing communications mix)
the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships
5 major promotion tools
advertising sales promotion personal selling public relations direct marketing
advertising
any paid for 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 service
personal selling
personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
public relations
building good relations with the company’s various publics by obtaining publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events
direct marketing
direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
3 marketing factors that are changing in the face of today’s marketing communications
consumers - better informed, more empowered
marketing strategies - fragmentation, no mass mkting
communications technology - less broadcasting and more narrowcasting
brand content managers
marketers who manage brand conversations with and among customers across a fluid mix of channels, both traditional and new, controlled and uncontrolled
integrated marketing communications (IMC)
carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
4 major types of media
paid
owned
earned
shared
paid media
includes promotional channels paid for by the sponsor, including traditional media and online and digital media
owned media
includes promotional channels owned and controlled by the company
earned media
includes PR media channels not directly paid for or controlled by the marketer
shared media
media shared by consumers with other consumers and brands, as well as traditional word of mouth
modern view of the communication process
managing the customer relationship over time
9 elements of communication
sender encoding message media decoding receiver response feedback noise
sender
party sending the message to another party
element of communication
encoding
process of putting thought into symbolic form
element of communication
message
set of symbols the sender transmits
element of communication
media
communication channels through which the message moves from the sender to the receiver
element of communication
decoding
process by which the receiver assigns meaning to the symbols encoded by the sender
element of communication
receiver
party receiving the message sent by another party
element of communication
response
reactions of the receiver after being exposed to the message
element of communication
feedback
part of the receiver’s response communicated back to the sender
element of communication
noise
unplanned static or distortion during the communication process
element of communication
steps in developing effective marketing communication (6)
identify the target audience determine the communication objectives design a message choose the media through which to send the message select the message source collect feedback
buyer readiness stages (6)
stages consumer normally pass through on their way to a purchase including: awareness knowledge liking preference conviction purchase
AIDA model for designing a message
the message should get Attention, hold Interest, arouse Desire, and obtain Action
elements of designing a message (2-3)
decide what to say (message content)
decide how to say it (message structure and format)
message content’s potential appeals
rational
emotional
moral
3 message structure issues
draw conclusion or leave it to audience?
present strongest arguments first or last?
present 1 or 2 sided argument?
personal communication channels
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 texting or an internet chat
world of mouth influence
personal communications about a product between target buyers and neighbors, friends, family members, associates, and other consumers
buzz marketing
cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities
nonpersonal communication channels
media that carry messages without personal content or feedback, including major media, atmospheres and events
4 common methods used to set the total advertising budget
affordable
percentage of sales
competitive party
objective and task
affordable method
setting the promotion budget at the level management thinks the company can afford
percentage of sales method
setting the promotion budget at a certain percentage of current or future forecasted sales or as a percentage of the unit sales price
competitive party method
setting the promotion budget to match competitors’ outlays
objective and task method
developing the promotion budget by:
defining specific promotion objectives
determining the tasks needed to achieve these objectives
estimating the costs of performing these tasks
push strategy
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, which in turn promote it to final consumers
pull 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
three day cooling off rule
customers who agree in their own homes, workplace, dormitory, or facilities rented by the seller on a temporary basis, to buy something costing more than $25 have 72 in which to cancel a contract or return merchandise and get their money back
