Promotion Flashcards
Promotion
communication used to build/maintain relationships by informing and persuading targeted
Communication
sharing of meaning between sender and receiver
Functions of promotion
informing, creating demand, persuading, reminding, assisting, supporting other mix elements, building relationships
Persuading
customers to choose one brand over another
Reminding
encouraging brand loyalty and repurchases
Communicating process
source - encoded message - medium (media) - decoded message - receiver - feedback
Source
group with meaning to be shared
Encoding
converting meaning into symbols, signs and indexes symbolic with target audience
Media
channel the message is passed through
Decoding
conversion of signs and symbols into concepts and ideas and assigning meaning
Receiver
consumer who decodes the message
Communication channel
medium of transmission that carries encoded message from source to receiver
Noise
distractions that reduce clarity of the message
Feedback
receiver’s response communicated back to source
IMC
efficient and effective coordination of promotional efforts for max info and persuasion on customers and consistent brand image
Promotional tools
advertising, PR, personal selling, sales promo, direct and digital marketing
IMC mix
paid, owned, earned, shared
Paid promotional activities
promotional activities paid for by marketer
Owned promotional activities
promotional channels owned and controlled by company
Earned promotional activities
PR media channels not directly paid for or controlled but incorporate content from interest
Shared promotional activities
by consumers for consumers - word of mouth, influencers
IMC process
process (promotion) - tools (mix) - management (IMC)
Types of integration
message (tactical) and strategic
Selecting promotional mix
resources/objectives/policies, market and product characteristics, cost/availability, push and pull, location, PLC and buyer readiness
Promotional objectives
create awareness, stimulate demand, encourage product trial, identify prospects
Push strategy
channel members focus on pushing product to market
Pull strategy
getting consumers to create demand through building excitement
Advertising
paid non personal communication about org and its products to target
Advantages of advertising
controllable, build brand image and equity, wide reach, low cost per person, connect with customer
Disadvantages of advertising
impersonal, one-way, media and production cost high, cluttered, difficult to measure effectiveness
Advertising process
objectives - budget - message +media - evaluation
Advertising objectives
move people for just aware to purchase. cognitive, affective or conative
Cognitive advertising
thoughts - ads provide info and facts
Affective advertising
emotions - ads influence attitudes and feelings
Conative advertising
motives - ads stimulate or direct desire
Buyer awareness process
aware - knowledgable - liking (ads, PR, sponsors) - preference - conviction - purchase (sales promo, personal, direct)
Creating advertising message (encoding)
copy (verbal), illustrations, art, layout, appeal
Message appeal styles
creative emphasis. rational (facts), emotional (stir emotion) or comparative (competitors)
Media types
TV, digital, direct mail, magazine, radio, outdoor
NZ Ad regulation
voluntary self regulation run and funded by industry - changes as society changes
Benefits of self advertising regulation
industry fund rather than taxpayer, flexible, no gov. interference, respond to public, free to complain
Disadvantages of advertising regulation
no enforcement and no government power to make sure people follow through
Industry COPs
COPs: direct marketing NZ, telemarketing, free to air, ISP Spam
Direct marketing COP
testimonials are current, typical and genuine, claims made are verified
Telemarketing COP
identity and purpose clearly disclosed
Free to air COP
news/factual programming are truthful and accurate
ISP SPAM COP
spam filters offered direct or prominent
PR
building positive relationships with stakeholders, not focussed on selling products but can be used to promote
Publicity
favourable/unfavourable public commentary not controlled by sponsor (earned)
PR advantages
credible, low cost, not replicable, engages and involves customers
PR disadvantages
less control, specialists required, time consuming, potentially negative
PR tools
press release, internal PR, consumer info release, speeches, lobbying (persuading gov.), corporate identity, events, media, advice..
PR objectives
intro to new products, call attention to org. , involve with community
Bad publicity
respond quick, coordinate comms, stay honest and positive, monitor public opinion
Personal selling
paid personal communication attempts to inform and persuade customers in exchange situation
Personal selling advantages
freedom to adjust message, customisable, immediate feedback, close relationship
Personal selling disadvantages
expensive, limited reach, time consuming
Salesperson
individual personal selling on behalf of an org
Sales promo
short term incentives build interest or encourage purchase for specific time
Sales promo techniques
refunds/rebates, coupons, bonus packs, contests, sweepstakes, point of purchase display, samples
Sales promo advantages
financial incentives, short term sales, excitement
Sales promo disadvantages
expense for short term gain at long term equity, shifts rather than increases sales, trade wars, overused, copied
Consumer sales promo
priced based sales promo, short term price reduction to encourage buying
Attention getting promo
contests, sweepstakes, samples, cross promo
Direct and digital marketing
interacting directly with consumers to obtain immediate response
Direct marketing
tailoring offers and content to needs and interests of individuals or segments
Types of direct marketing
direct response, direct print, telemarketing, kiosks
Digital marketing
market offerings over internet and cellular networks
Types of digital marketing
websites, online advertising, email, social media
Benefit of D+D to buyers
convenient, easy, private, interactive, immediate
Benefit of DND to sellers
low cost, efficient, fast, targeted, interactive, flexible, real time
Customer databases
organised collection of comprehensive data about individuals.
Database fields
customer data, item data, invoice data, reports
Database management
customer + item + invoice data used to make a report
Rich media
new forms of digital ads: pop ups, interstitial (clicks but can return) and superstitial (pops up on click)
Interactivity
high customer to customer and customer to company interaction
5 objectives of digital marketing
sell, serve, speak, save, sizzle
C2C communication tools
Social media and blogs
Promotional strategy
identify and understand target audience
