Promotions Flashcards
promotions
the coordination of marketing communications to influence attitudes and behavior
Communication Model
Source to communications channel to receiver
Noise to source, communications channel, receiver, and feedback
Receiver to feedback
Feedback to Source
source
company or spokesperson
communications channel
magazine, newspaper, TV, radio, billboard, social media, email, etc.
receiver
consumer
noise
competing messages, lack of clarity, flow in the channels
feedback
purchase data product awareness (Tweets, likes)
Source to communications channel is encoding/decoding
encoding
Communications channel to receiver is encoding/decoding
decoding
Goals of Promotions
AIDA Awareness Interest Desire Action
Think -> Feel -> Do
awareness
aided recall-customers recognize a name that has been presented to them unaided recall (top-of-mind awareness)
lagged effect
people don’t immediately respond and buy
they think, feel, and then do
Types of promotion
Advertising Sales Promotions PR Direct Marketing Personal Selling Online/Digital Word of Mouth
Non-personal promotion
targeted to groups of people, mass media
marketers control message completely
can reinforce brand image, be persuasive, or provide factual info
contests, coupons, and other incentives designed to build interest or encourage action
Can be expensive
Public Relations
communication activities that create or maintain a positive image of a firm and its products
mostly press releases
relatively low cost
highly credible
poor message control: no guarantee that message will even reach the target
difficult to track the results
direct marketing
efforts to gain a direct response from individual customers
use database technology to target customers
track and measure results
can provide extensive information and multiple offers with a single appeal
higher cost per contact than mass appeals
postcards, catalogs, email, mobile
personal selling
direct interaction between company rep and a customer
flexible because salespeople can modify message to match customer needs
sales rep can get immediate feedback
high cost per contact
difficult to ensure message consistency between different sales representatives
online/digital
websites, blogs, social media
consumer-generated media which generates Word of Mouth or viral marketing
Integrated Marketing Communication
Process that manufacturers use to plan, develop, execute, and evaluate ads
Doing multiple things at once
Passive vs. Interactive
Interactive and offline: personal selling, sales promotions, direct marketing
Passive and offline: advertising, sales promotions, PR, direct marketing
Interactive and online: direct marketing, online marketing
Passive and online: direct marketing
IMC Plan
unifies all marketing communication tools to send a consistent, persuasive message in order to create and maintain long-term relationships with customers by satisfying their needs
- Who is the audience?
- Objectives
- Budget
- Design mix
- Evaluate-show a return on investments
- Identifying Target Audience
Who is the primary target audience for these products?
- Establish communication objectives
The Hierarchy of Effects
Communication awareness, awareness, knowledge, desire, purchase, loyalty
awareness
repetitive advertising, slogans and jingles, publicity stunts
knowledge
descriptive copy, brochures, infomercials, PR, personal selling, website
desire
status or sex appeals, celebrity endorsements
purchase
point-of-purchase displays, coupons, contests, samples
loyalty
mailing to users, licensed merchandise, product placement
- Determine and allocate Marketing Communications budget
Budget: objective and task method
Push or pull strategy
push strategy
firm moves products through the channel by convincing channel members to offer them
push product to consumer and have it available for customers to buy
drugs, pharmaceutical sales
manufacturer -> wholesaler/retailer -> consumer
pull strategy
firm mosts products through channel by building desire among consumers, convincing retailers to respond to demand
most commonly used
advertise to consumer so that the consumer wants product
cars
manufacturer-> consumer -> wholesaler/retailer -> manufacturer
- Design Promotion Mix
appeals
type: rational and emotional
Budgeting rules of thumb
% sales, competitive parity
- Evaluate the Effectiveness
Return on Investments
Communication objectives
Other measures: reach, frequency, gross rating points, Google Analytics
time and external factors can affect accuracy
Return on Investments
(Sales - promotional costs)/(Promotional costs)
Communication objectives
awareness, knowledge, attitude
Promotional objectives for each step of the product life cycle
Introduction: to inform
Growth: to persuade
Maturity: to remind
Decline: –
encoding
converting the sender’s ideas into a message that can be verbal, visual, or both
decoding
process by which receiver interprets the sender’s message
advertising
non-personal communication from an unidentified sponsor using mass media
provides marketers with total control rich and dynamic advertising images can help to build or reinforce brand image lacks credibility with cynical consumers extremely expensive passive
sales promotions
contests, coupons, and other incentives designed to build interest or encourage product purchase during a specified period
provides retailers with incentives to support a brand builds retailer and consumer excitement encourages immediate purchase and trial reaches price-sensitive consumers does not focus on building brand loyalty
Word of Mouth or viral marketing
activities that give people a reason to talk about the product
The Hierarchy of Effects
Awareness, Knowledge, Desire, Purchase, Loyalty
Alternative to ROI evaluation
look at how well communication objectives such as Awareness, knowledge, and attitude improved after the ad campaign
percentage of sales budgeting
a way to determine how much to spend on ads. They say, if you think it will increase sales to 2 million, you can spend 200,000. or something.
Competitive parity
promoting as much as your competitor
