Chapter 18 Flashcards
Integrated Marketing Communications (IMC)
designing marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotion, public relations, & direct marketing - to provide a consistent message across all audiences
Promotional Mix
The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.
Promotional Mix Elements
advertising
personal selling public relations
sales promotion
direct marketing
Advertising
any paid form of nonpersonal communication about an org, product, serv, or idea by an identified sponsor
-Creates AWARENESS
-Normally must be bought/nonpersonal
Ex: Super Bowl Ads
Personal Selling
two-way flow of communication b/w a buyer & seller designed to influence a person’s/group’s purchase decision
- Face-to-face communication b/w sender & receiver
-Personal relationship - MOST EXPENSIVE
Public Relations
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, & other publics about a company & its products/servs
-Publicity
-Uses tools: special events, lobbying efforts, social media, press conferences
Publicity
nonpersonal, indirectly paid presentation of an org, product, or serv
› Comp does not pay for space in a mass medium (tv/radio) but attempts to get the medium to run a favorable story of the company
Ex: news story, editorial, product announcement
Sales Promotion
a short-term, inducement of value offered to arouse interest in buying a product/serv
-Helps get customer into your product/buy more of it
Ex: BOGOS, Coupons, rebates, samples, contests, sweepstakes
Direct Marketing
uses direct communication w/ consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
Ex: Social media/email campaigns
Ex: face-to-face selling, direct mail, catalogs, direct response advertising, online marketing
Mass Selling are used with groups of prospective buyers
Advertising, PR, Sales Promotion
Customized Interaction between a seller & prospective buyer
Personal Selling & Direct Marketing
Other IMC Tools (Non Traditional)
Sponsorships
Product Placements
Infomercials
Branded Entertainment
Guerilla Marketing
Crowdsourcing Advertising
Sponsorships
1) Needs to mean something to customer
Ex: Nascar has different colors/energy to the cars (visual interest)
2) Needs to make enough of an investment for it to stick to customers
Ex: Big FEDEX sticker on car
3) Activation: creating an experience w/ customer (vivid image)
Ex: Consumers will remember that image of the car
4) Fit
Ex: Many type of brands can advertised on the car unless it’s something extremely out of place
5) Event Marketing: events put together by brand
Ex: Red Bull’s Space Jump event
Product Placement
products are integrated as part of what you’re watching
Ex: E.T. & Reeses pieces both got great exposure
Infomercials
Long commercial that informs consumer more about what the product is doing, puts product into a lot of different situations/scenarios
Ex: FlexTape
Branded Entertainment
the act of linking the firm or product’s name (and personality) with an activity that the target audience enjoys
-creating content/show that showcases your brand, 100% you
Ex: RedBull video of guy doing crazy running in a ghost town
(Showcases RedBull spirit/daredevil)
Guerilla Marketing
innovative, unconventional, and low-cost marketing techniques aimed at obtaining maximum exposure for a product
-uses creative ways to create buzz
Ex: Pepto Bismol ad of stomach turning like a laundry mat
Crowdsourcing Advertising
New ideas advertised
Ex: Doritos asking customers to send in videos to be in SuperBowl commercial
Mix Elements Have …
Different tasks
Consistency
Complementarity
Different Tasks
Use different tools to achieve different purposes, integrate them together or serve their own purpose
Consistency
Make sure they’re consistent/all moving the same
Make sure their main focus is on the customer
Ex: Luxury store is inconsistent because it looks dirty/messy inside
Complementary
complement each other, add value to each other, work together
Two Issues to Consider When Putting Together the Promotional Mix
- The balance of the elements must be determined
- Coordinate a consistent promotional effort is necessary since the various promotional elements are often the responsibility of different departments
Target Audience
- Promotional programs directed to buyers of consumer products use mass media because the number of potential buyers is large
- Personal Selling is used at the place of purchase (retail store)
- Direct Marketing is used to encourage first-time or repeat purchases
- For Business Buyers, advertising & personal selling is important
- For intermediaries, personal selling is also important
The Product Life Cycle
the composition of the promotional mix changes over the 4 stages:
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Introduction Stage (To Inform)
informs customers to increase their level of awareness
- Publicity in magazines
- Advertising
- Salesforce calling on intermediaries
- Sales Promotion in form of free samples
Growth Stage (To Persuade)
persuades the consumer to buy the product rather than substitutes, so the marketing manager seeks to gain brand preference & solidify distribution
- Personal Selling to intermediaries
- Advertising to differentiate a product from competing brands
Maturity Stage (To Remind)
the need is to maintain existing buyers, & advertising’s role is to remind buyers of the product’s existence
- Reminder Advertising
- Sales Promotions in forms of discounts, coupons, & sponsoring events is important to maintain loyal buyers
- Limited Personal Selling
- Direct-Mail Reminders
Decline Stage (To Phase Out)
a period of phaseout for the product
- Little money is spent on promotion
Three Product Characteristics That Should be Considered:
Complexity
RIsk
Ancillary Services
Complexity
the technical sophistication of the product & hence the amount of understanding required to use it
- The more complex the product, the greater the emphasis on personal selling
Risk
degree of risk represented by the product’s purchase. Can be assessed in terms of financial risk, social risk, & physical risk
Ancillary Services
pertain to the degree of service or support required after the sale
Stages of the Consumer Journey
- pre-purchase
- purchase
- post-purchase
Prepurchase Stage
Uses Advertising & Sales Promotion
- Advertising informs the potential customer of the existence of the product & the seller
- Sales Promotion in the form of free samples gains low-risk trial
Purchase Stage
Uses Personal Selling & Sales Promotion
- The importance of personal selling is highest, whereas the impact of advertising is lowest
- Sales Promotion in the form of coupons, deals, point-of-purchase displays, & rebates encourage demand
- Social Media plays important role in final decision by delivering promotions & giving consumers control of the process
Postpurchase Stage
Uses Personal Selling, Advertising, Sales Promotion
-Advertising assures buyer that right purchase was made
- Advertising & Personal Selling reduce buyer’s postpurchase anxiety
- Sales Promotion in the form of coupons & direct marketing reminders can help encourage repeat purchases from satisfied first-time buyers
2 Channel Strategies
push strategy
pull strategy
Push Strategy
directing the promotional mix to channel members to gain their cooperation in ordering & stocking the product
- Personal selling & sales promotion play major roles
- By pushing the product through the channel, the goal is to get channel members to push it to their customers
Ex: Ford provides support & incentives for its Ford Dealers. It gives incentives to reward dealers for meeting sales goals
Pull Strategy
directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
Ex: Print ad for Otezla says, “Ask your doctor about Otezla”
The Promotion Decision Process Is Divided Into
- developing
- executing
- assessing the promotion program
Development Focuses on the 4 W’s
- Who is the target audience?
- What are (1) the promotion objectives, (2) the amounts of money that can be budgeted for the promotion program, & (3) the kinds of promotion to be used?
- Where should the promotion be run?
- When should the promotion be run?
Development Steps (Planning)
- Identify the Target Audience
- Specify Objectives
- Set the Budget
- Selecting the Right Promotional Tools
- Designing the Promotion
- Scheduling the Promotion
Target Audience
the group of prospective buyers toward which a promotion program will be directed
Specify Objectives
decision must be reached on what the promotion should accomplish
› Consumers respond in terms of a customer path/hierarchy of effects
Hierarchy of Effects
the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action
Five Stages of Hierarchy of Effects
- Awareness
- Interest
- Evaluation
- Trial
- Adoption
Awareness
the consumer’s ability to recognize & remember the product/brand name
Interest
an increase in the consumer’s desire to learn about some of the features of the product/brand
Evaluation
the consumer’s appraisal of the product/brand on important attributes
Trial
the consumer’s actual first purchase & use of the product/brand
Adoption
through a favorable experience on the first trial, the consumer’s repeated purchase & use of the product/brand
Promotion Objectives Should Possess Three Important Qualities
they should (1) be designed for a well-defined target audience, (2) be measurable, (3) cover a specified time period
Set the Budget
comp must decide how much to spend
Methods Used to Set Promotion Budget
- percentage of sales
- competitive parity
- all you can afford
- objective and task
Percentage of Sales Budgeting
funds are allocated to promotion as a percentage of past/anticipated sales, in terms of either dollars/units sold
Ex: “Our promotion budget for this year is 3 percent of last year’s gross sales”
Competitive Parity Budgeting
matching the competitor’s absolute level of spending or the promotion per point of market share
All You Can Afford Budgeting
money is allocated to promotion only after all other budget items are covered
Ex: I ask the controller how much they can afford to give us this year. She says a million and a half. Later, the boss comes to me & asks how much we should spend, I say “a million and a half”
Objective & Task Budgeting
the company (1) determines its promotion objectives, (2) outlines the tasks it will undertake to accomplish those objectives, & (3) determines the promotion cost of performing those tasks
*Best approach to budgeting
Selecting the Right Promotional Tools
an analytical approach & experience are important in this step
- The specific mix can vary from a simple program using a single tool to a comprehensive program using all forms of promotion
Designing the Promotion
plays primary role in determining the message that’s communicated to the audience
-requires most creativity
Scheduling the Promotion
describes the order in which each promotional tool is introduced & the frequency of its use during the campaign
Executing the Promotion Program (Implementation)
-pretest the promotion
-carry out the promotion
Assessing the Promotion Program
(Evaluation)
-posttest the promotion
-make needed changes
Promotion is ______
Communication
Communication
the process of conveying a message to others that requires six elements: a source, message, channel of communication, receiver, & the process of encoding and decoding
Source
a company or person who has information to convey during the communication process
Ex: Company, Spokesperson, Microinfluencers
Types of Sources
Personal/Marketer Controlled
Impersonal/Marketer Controlled
Personal/Independent
Impersonal/Independent
Personal/Marketer Controlled
Salespeople: companies employees (hire/train), creates relationship w/customers
Impersonal/Marketer Controlled
Company Advertising/Sales Promotions: company putting ad in Super Bowl, not being delivered 1 on 1, just to whoever happens to be watching the Super Bowl
Personal/Independent
Word of Mouth/Friends: Not controlled by company, trust more less biased, 1 on 1
*Going to trust the most
Ex: Friend tells me I’m going to love a Stanley
Impersonal/Independent
Publicity/Newspapers: people will decide what they say about your company, not controlled by you
Source Factors
credibility
expertise
trustworthiness
attractiveness
Encoding
the process of having the sender transform an idea into a set of symbols
(how you want to communicate this)
Ex: verbal/written
Message
the information sent by a source to a receiver during the communication process
Message Factors
objectives
strategy
tactics
Objectives
what you want to communicate/what are you trying to accomplish
Strategy
what you do from there/what are some of the areas you really want to pinpoint
Tactics
very detailed how/ how are you going to deliver that particular message
Objective Formulation
Hierarchy of effects
Three Possible Strategies
- Increase attribute rating
- Increase attribute importance
- Introduce a new attribute
Tactics
types of appeals
Informational
Comparative
Image
Fear
Humor
Sex
Informational Appeal
produces a lot of information, can be dry or fun
Ex: FlexTape
Ex: Vivitrol ad w/ so much info is too much to consume/uninteresting
Comparative Appeal
compares product to another brand
Ex: Coors comparing other beers/ saying that their beer does not taste like water
Ex: Sargento comparing its cheese protein amounts to other snacks/categories
Image Appeal
aspirational, creates an image in your mind of ohh wow if only, dream, one day I’ll own this/be like this
Ex: Porsche ad saying “honestly now, did you spend your youth dreaming about someday owning a Nissan or a Mitsubishi (ad is about dreaming)
Fear Appeal
scared, creating too much fear can have a counterside & can make consumer avoid the product
Ex: Subaru commercial: guy’s life flashed before his eyes before he was about to get into an accident
Humor Appeal
Being funny, is effective when it’s fun
Ex: Nissan funny commercial about break pads
Sex Appeal
suggest to the audience that the product will increase the attractiveness of the user
Ex: Calvin Klein Jeremy White campaign
Channel of Communication
the means (salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process
-Medium
Decoding
the reverse, or the process of having the receiver take a set of symbols, the message, & transform them back to an idea
(How consumer receives it, consumers thoughts/experience w/brand)
Receivers
consumers who read, hear, or see the message sent by a source during the communication process
Field of Experience
a mutually shared understanding/knowledge that the sender & receiver apply to the message so that it can be communicated effectively during the communication process
Ex: KFC made a mistake when “finger-lickin’ good” slogan was translated into Mandarin Chinese as “eat your fingers off”!
Feedback Loop
consists of a response and feedback
Response
the impact the message had on the receiver’s knowledge, attitudes, or behaviors
Feedback
the sender’s interpretation of the response & indicates whether the message was decoded & understood as intended
Noise
includes extraneous factors that can work against effective communication by distorting a message or the feedback received
direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling
-one on one
Direct marketing offers a variety of benefits
consumers don’t have to go to the store, shop 24 hrs a day, buying direct saves time, avoid hassles w/salespeople, save money, more privacy
What are the three types of responses generated by direct marketing activities?
direct orders, lead generation, traffic generation
direct orders
the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
Ex: Online retailer asks customers to create a list of their favorite brands & then sends them message/link to make the purchase when the brands go on sale
Lead Generation
the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information
Ex: Four Seasons Hotels now sells private residences in several of its properties & sends direct mail to prospective residents asking them to request additional info on the phone or through website
Traffic Generation
the outcome of a direct marketing offer designed to motivate people to visit a business
Ex: Home Depot uses an opt-in email alert to announce special sales that attract customers to the store
