Exam 3 - Chapter 17 Flashcards
Integrated Marketing Communiations
coordination of promotion and other marketing efforts for maximum informational and persuasive impact (ex: Tom’s Tours)
Communication
a sharing of meaning through the transmission of information
Source
a person, group, or organization with a meaning it tries to share with a receiver or an audience
Receiver
the individual, group, or organization that decodes a coded message
Coding Process (Encoding)
converting meaning into a series of signs or symbols (bubbler? Soda? Gerber?)
Communication Channel
the medium of transmission that carries coded message from the source to the receiver (ex: Jitterbug adds through FB?? No.)
Decoding Process
converting signs or symbols into concepts and ideas
Noise
anything that reduces a communication’s clarity and accuracy – unfamiliar codes or symbols
Feedback
the receiver’s response to a decoded message
Channel Capacity
the limit on the volume of information a communication channel can handle effectively
Promotion
communication to build and maintain favorable relationships by informing and persuading one or more audiences to view an organization positively and to accept its products (***sales/advertising/public relations/ sales promotion)
8 Objectives of Promotion
create awareness, stimulate demand, encourage product trial, identify prospects, retain loyal customers, facilitate reseller support, combat competitive promotion efforts, reduce sales fluctuations
Oop Step 1
create awareness; awareness is crucial to initiating the product adoption process for new products (ex: iPad), for existing products, promotional efforts create increased awareness of brands, product features, image-related issues, operational characteristics (to deal with competition)
Oop Step 2
Stimulate Demand; primary, pioneer, and selective
Primary Demand
(when introducing a new product category); Demand for a product category rather than a specific brand
Pioneer Promoption
A way to stimulate primary demand; Promotion that informs consumers about a new product
Selective Demand
Demand for a specific brand
Oop Step 3
encourage product trial; if customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to product adoption
Oop Step 4
Identify Prospects; Certain types of promotional efforts aim to identify customers who are interested in the firm’s product and are likely potential buyers (ex: TV ads to visit website/share info; often B to B)
Oop Step 5
retain loyal customers; the primary goal of marketing is to maintain long-term customer relationships; less costly than acquiring new customers (ex: special offers for existing customers)
Oop Step 6
facilitate reseller support; Strong relationships with resellers are important to an organization’s ability to maintain a sustainable competitive advantage (ex: in store sampling/coupons)
Oop Step 7
combat competitive promotional efforts; Promotional activities may aim to offset or lessen the effect of a competitor’s promotional and/or marketing activities; used for highly competitive consumer markets
Oop Step 8
reduce sales fluctuations; a business cannot operate at peak efficiency when sales fluctuate widely (ex: holidays vs. slumps)
Advertising
paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media; highly flexible and can reach large or small audiences depending on need
Personal Selling
a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation; expensive and time consuming, but more specific and greater impact
Public Relations
a broad set of communication efforts used to create/maintain favorable relationships between organization and stakeholders (ex: publicity/annual reports/event sponsorships/brochures)
Sales Promotion
activities or materials that act as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or customers (ex: samples/contests/rebates/coupons)
Issues to Consider re: Selecting Promotion Mix
resource/objectives/ policies, characteristics of the target market, characteristics of the product, cost and availability of promotional methods, and push/pull channel polities
SPM Promotional Resources, Objectives and Policies
The size of an organization’s promotional budget affects the number and intensity of promotional methods used; Different objectives will require different promotional mixes
SPM Characteristics of the Target Market
size, geographic distribution, demographic characteristics
SPM Characteristics of the Product
business products concentrate on personal selling/sales promotion; consumer products concentrate on: Convenience goods = advertising, Durables and expensive products = personal selling; Both = public relations
Stage of the Product Life Cycle
affects decisions regarding promotion mix ex: advertising/personal selling/sales promotion to generate awareness
Distribution Intensity of Product USe
intensive = advertising/sales promotion; selective = mixes vary; exclusive = personal selling
Push Policy
Promoting a product only to the next institution down the marketing channel
Pull Policy
Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel
Importance of Word-Of-Mouth Communications
personal, informal exchanges of communication that customers share with one another about products, brands, and companies
Buzz Marketing
An attempt to incite publicity and public excitement surrounding a product though a creative event
Viral Marketing
A strategy to get consumers to share a marketer’s message, often through email or online video, in a way that spreads dramatically and quickly
Product Placement
a form of advertising that strategically locates products or product promotions within entertainment media to reach a products target market
Does Promotion create needs?
Marketing does not create needs, but makes consumers aware of needs they already have
does promotion help customers without costing too much?
Promotions inform customers about a product’s uses, features, advantages, prices, or purchase locations
