Chapter 17: integrated marketing communication and direct marketing Flashcards
IMC represents
integrated marketing communication
def. Promotional mix (alternatives)
a combination of five promotional tools, including advertising, personal selling, sales promotion, public Relations, direct selling,
What are the six elements required for communication to occur?
the act of designing marketing communication activities
- to provide a consist message across all media and all audiences
- to maximize the efficiency of the promotional budget and effective impact of communication.
six elements of communication process
- source
- message
- channels of communication
- receivers
- encoding
- decoding
- the field of experience
- response
- feedback
- noise
what is channels of communication
the means by which a message is conveyed and received by a receiver
what is encoding
the process by which the sender transforms an abstract idea to a set of symbols
what is decoding
the receiver transforms the received set of symbols, the message, to an abstract idea.
The Field of Experience
similar (or shared) knowledge and understanding for communication to work effectively. A sender and a receiver must mutually share a field of experience.
what is the most essential part of effective communication?
the mutually shared fields of experience
response
the impact of the message on the receivers knowledge, attitude & behavior.
feedback
the communication flow from the receiver back to the sender
Noise
to extraneous factors that can work against effective communicators by distracting the message or the feedback processes.
A misprint in a newspaper ad is an example of _____.
noise
def. PR
a form of communication
by which management seeks
- influence the feeling, opinion, belief of customers and prospective customers, shareholders, suppliers, employees, and other publics (stake holders)
- about the firm or its products and services.
- indirect, non-personal, paid presentation
Publicity
a non-personal, indirectly paid presentation about an organization, good, or service.
A company does not pay for space in a mass medium but attempts to get the medium to run a favourable story on the company
Sales Promotion
short-term
increase interest in buying a good or service
personal selling
a two-way flow of communication between a buyer and seller
designed to influence a person’s or organization’s decision
advertising
The advertising on television, for example,
is paid
a form of non-personal communication with masses about an organization/service/goods. The space must be bought
presented by an identified sponsor
direct marketing
promotional elements that
- direct communication with consumers
- to generate a favorable response
- in the form of an order, request for information, visit an outlet or other desired responses
Cost per contact is high with the ______________ element of the promotional mix.
personal selling
5 factors to ensure the effectiveness of an IMC program
1, the target audience
- the communication task at each stage of PLC
- the choice of promotional elements appropriate for the product characteristics
- stages of buying decisions
- channel strategies
def target audience
the target of the promotional audience (ultimate customers, intermediaries, distributors, etc.)
the communication task in stages of product life cycle: intro, groth, maturity, decline
In Introduction Stage: To Inform
In Growth Stage: To Persuade
In Maturity Stage: To Remind/reinforce
Decline Stage: limit he investment in promotion
The more ____ the product, or higher ____, the greater the emphasis on______. Similarly, the need for more _____services or post‑sales support required, the more important is ____.
complex
perceived risks
personal selling
ancillary
personal selling
3 stages of buying decision and the communication task
pre-purchase: ad— inform both product and outlet, sales promotion (reduce the risk of trial) and maybe personal selling (create experience)
purchase stage ( sales promotion, coupons—- encourage demands)
post-purchase stage (personal selling— reduce cognitive dissonance and anxiety)
2 Channel Strategies
push and pull
push strategy
the manufacturer directing the promotional mix to channel members to encourage them to order and stock the product
pull strategy
involves the manufacturer directing advertising and sales promotions to consumers to encourage them to ask retailers for the product – pulling the product through the channels.
the four factors to develop a IMC– 4 W
who: audience what :1) the promotion objectives 2) the budget of promotion program 3) promotional elements? where to run the program when: scheduling
4 methods to set a promotional budget
percentage of sales
competitive parity
all-you-can-afford
objective and task
the 6 steps to develop a promotional program
- find the target audience
- specify the objectives
- Setting the Budget
- Selecting the Promotional Tools
- Designing the Promotion
- Scheduling the Promotion
the term that describes the sequence of stages that a consumer goes through in making a buying decision
and describe this sequences and the five key words in order
Hierarchy of effects
Awareness: Recognizing and remembering the brand
Interest: Increased desire to learn more about some of the product features
Evaluation: Appraising important features
Trial: Actual purchase and use
Adoption: Through a desirable first experience attempt repeat purchase
who are the target audience
the group o prospective buyers
which is the easiest approach to set a promotional budget?
percentage of sales
which is the best approach to set a promotional budget?
objective and task
why usually not use obj & task approach?
It requires the company have a detailed plan:1) determine its promotion objectives, 2) outline the tasks to accomplish the objectives, and 3) determine the costs of performing the tasks and allocate a budget to achieve them.
How to judge the capital You should Spend on IMC?
use promotion to sales ratio and compare it with industry average and competitors’
how to find promotion to sales ratio
Total Promotional Expenditure ($) / Total Sales ($)
IMC audit is used for
assessing the company and agency capabilities for effective IMC implementation
the two parts of IMC audit
pre- and post= testing
What are the characteristics of good promotions objectives
(1) Be designed for a well-defined target audience, (2) Be measurable, and (3) Cover a specified time period.
What are the weaknesses of the percentage of sales budgeting approach?
there has to be a direct correlation between that sales and promotion.
what is pre-testing in IMC audit
each design before it is actually used allows changes and modifications which improve effectiveness.
what is post-testing in IMC audit
to evaluate the impact of each promotional tool and their contribution toward reaching the promotional objectives.
