M2 - 07 PROMOTION POLICY Flashcards
define Marketing Communications Mix
a companies total promotioal mix is also called its marketing communication mix. This is a Mix of - 1 - Personal Selling 2- Direct Marketing, 3 - Advertising, 4 - Sales Promotion 5 - and Public Relations used by any Organization to pursue its Marketing Objectives. (promotion policy)
define IMC
Integrated Marketing Communications
- Concept under which a Company Integrates and Coordinates its Company Communications and Communication Channels to deliver a Clear, Consistent and Compelling message about the Organization and its Products.
- Integrated marketing communications is an approach used by organizations to brand and coordinate their marketing efforts across multiple communication channels. As marketing efforts have shifted from mass advertising to niche marketing, companies have increasingly used IMC to develop more cost-effective campaigns that still deliver consumer value.
Why is IMC getting more and more important?
recent shifts towards one to one marketing, information advances, and technology innovation have forced marketers to adopt a richer, but more fragmented media and promotion mixes to reach their diverse markets. to prevent chaos in this new environment, companies are adopting IMC so the company can work out the roles each promotional tool will play and to the extent they will be used.
- Research and Improved Media led to Consumer Knowledge
• Consumer Knowledge led to Market Segmentation
• Segmentation led to Segmented Message (Promises) and Vehicles
• Segmented Messages and Vehicles led to Specialized Marketers
• Specialized Marketers may lead to Inconsistent Messages: RISK!!
what are the different ways of setting a Communication Budget?
1 - Affordable Method
• Spend as much as you can afford
2 - Percentage-of-sales Method
• So you sell, so you get…
3 – Competitive-parity Method
• Monkey see, monkey do
4 – Historic record Method
• What my ancestors did
5 – Objective-and-Task Method
• If my grandmother had wheels, she’d be a bicycledefine PUSH STRATEGY
Using Promo Tools to force the Product through the Distribution Channel, starting from the Origin (Producer) and through its consecutive layers.
or
A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase.
- “Taking the product to the customer”
describe how using the personal selling tool in the promo mix can persuasively communicate customer value.
the Personal Presentation of the Offering by the firm’s Sales Force, for making sales and building Customer Relationship can increase customer value. This is controlled by sales force management.
Personal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships.
define sales force management
analyzing, planing, implementing, and controlling sales force activities.
describe how using the sales promotion tool in the promo mix can persuasively communicate customer value.
Promotional tools are Marketing Activities create short term simulation for Consumer purchases and/or improve retailer or middlemen effectiveness and co-operation. Goals of this communication tool include increasing revenue and cash flow, attracting new customers and clearing out extra inventory.
-consumer promotions, business promotions, trade promotions…
give an example of a price promotion a company would use to stimulate consumers.
Price promotions are a major category of sales promotions where companies reduce the selling price of a product or service to entice customers to buy.
- Coupons and Cash refunds Offers
- Price Packs / bulk sales
- point of purchase discount
describe how using the advertising tool in the promo mix can persuasively communicate customer value.
Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
The basic objectives of advertising is to inform [brand knowledge- uses, availability, price], to remind [brand awareness], and persuade possible customers [brand preference].
this is done by creating an advertising message strategy and a media strategy.
describe the qualities a an advertising message strategy should have.
the first step in creating effective advertising is to plan a message strategy- the general message that will be communicated to consumers. in order to get a reaction from consumers, a message strategy should emphasis consumer benefit.
next, advertisers must develop a creative concept [the compelling big idea that will bring the advertising strategy to life in a distinctive and memorable way.
what does the creative concept of an advertising message strategy have to do with advertising appeals?
the creative concept will drive the choice of specific appeals used in an advertising campaign. appeals should be:
- meaningful
- believable
- distinctive
- tell how the product is better than the competing brands.
so that the customer truly believes they will benefit from a product
describe the 4 qualities a an advertising media strategy should have.
a media strategy should 1 - define reach, frequency, and impact of target 2 - choose among major media types 3 - select specific media vehicles 4 - chose media timing
what are the benefits and limitations of using television in an advertising promotion
+ good mass-market coverage, low cost per exposure, combine sight, sound and motion, appealing to the senses
– high absolute costs, high clutter, fleeting exposure, less audience selectivity
define reach [step 1 in media strategy]
Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.
