Topic 8 - Marketing Promotions Flashcards
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service
Personal selling
Personal customer interactions by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships
Public relations
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Direct and digital marketing
Engaging directly with carefully targeted
individual consumers and customer communities to both obtain an immediate
response and build lasting customer relationships
Promotion mix (marketing communications mix)
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships
A company’s total promotion mix consists of ____
the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to engage consumers, persuasively communicate customer value, and build customer relationships. The five major promotion tools are advertising, sales promotion, personal selling, public relations, and direct and digital marketing.
What are the five promotional tools?
Advertising, sales promotion, personal selling, public relations, and direct and digital marketing
What elements of the product communicate something to the buyers?
design, price, shape, color, venue in which it is sold
Although the promotion mix is the company’s primary engagement and communications activity, _____
the entire marketing mix - promotion, as well as product, price, and place - must be coordinated for greatest impact
What factors are changing the face of today’s marketing communications?
First, consumers are changing. In this digital, wireless age, consumers are better informed and more communications empowered. Second, marketing strategies are changing. As mass markets have fragmented,
marketers are shifting away from mass marketing. More and more, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. Finally, sweeping advances in digital technology are causing remarkable changes in the ways companies and customers communicate with each other.
As the marketing communications environment shifts, so will the role of marketing communicators. How so?
Rather than just creating and placing “TV ads” or “print ads” or “Facebook display ads,” many marketers now view themselves more broadly as content marketing managers. As such, they create, inspire, and share brand messages and conversations with and among customers across a fluid mix of paid, owned, earned, and shared communication channels. These channels include media that are both traditional and new, and controlled and not controlled
Content marketing
Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.
What are the four major types of media used by content marketing managers?
Paid media, owned media, earned media, shared media
Paid media
promotional channels paid for by the marketer, including traditional
media (such as TV, radio, print, or outdoor) and online and digital media (paid search ads, Web and social media display ads, mobile ads, or e-mail marketing).
Owned media
promotional channels owned and controlled by the company, including company Web sites, corporate blogs, owned social media pages, proprietary brand communities, sales forces, and events.
Earned media
PR media channels, such as television, newspapers, blogs, online
video sites, and other media not directly paid for or controlled by the marketer but that include the content because of viewer, reader, or user interest.
Shared media
media shared by consumers with other consumers, such as social
media, blogs, mobile media, and viral channels, as well as traditional word-of-mouth.
integrated marketing communications (IMC)
Under this concept, the company carefully integrates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Integrated marketing communications (IMC)
Carefully integrating and
coordinating the company’s many communications channels to deliver a clear,
consistent, and compelling message about the organization and its products.
Encoding
The process of putting thought into symbolic form −for example,
McDonald’s ad agency assembles words, sounds, and illustrations into a TV advertisement that will convey the intended message.
Message
The set of symbols that the sender transmits −the actual McDonald’s
ad.
Media
The communication channels through which the message moves from
the sender to the receiver −in this case, television and the specific television programs that McDonald’s selects.
Decoding
The process by which the receiver assigns meaning to the symbols encoded by the sender −a consumer watches the McDonald’s commercial and interprets the words and images it contains.
Receiver
The party receiving the message sent by another party −the customer
who watches the McDonald’s ad
Response
The reactions of the receiver after being exposed to the message −any
of hundreds of possible responses, such as the consumer likes McDonald’sbetter, is more likely to eat at McDonald’s next time, hums the “i’m lovin’ it” jingle, or does nothing
Feedback
The part of the receiver’s response communicated back to the sender −
McDonald’s research shows that consumers are either struck by and remember
the ad or they write or call McDonald’s, praising or criticizing the ad or its
products.
Noise
The unplanned static or distortion during the communication process,
which results in the receiver getting a different message than the one the sender sent −the consumer is distracted while watching the commercial and misses its key points.
For a message to be effective ______
the sender’s encoding process must mesh with the
receiver’s decoding process. The best messages consist of words and other symbols
that are familiar to the receiver
The more the sender’s field of experience overlaps
with that of the receiver, ____
the more effective the message is likely to be
What are the key factors in good communication?
Senders need to know what audiences they wish to reach and what responses they want. They must be good at encoding messages that take into account how the target audience decodes them. They must send messages through media that reach target audiences, and they must develop feedback channels so that they can assess an audience’s response to the message. companies must be prepared to “flip” the communications process −to become good receivers of and responders to messages sent by consumers.
What are the steps in developing effective marketing communication?
: Identify the target
audience, determine the communication objectives, design a message, choose the
media through which to send the message, select the message source, and collect
feedback.
In identifying the target audience, the marketing communicator starts with ____
having a clear target audience in mind. For example, current users or potential buyers, those who make buying decisions or those who influence buying decisions.
Identifying the target audience: Who is the audience?
The audience may be individuals, groups, special publics, or the general public
The target audience will ____
heavily affect the communicator’s decisions on what will be said, how it will be said, when it will be said, where it will be said, and who will say it.
Once the target audience has been defined, marketers must ___
determine the desired response. In many cases they will seek a purchase response. Purchase may result after a lengthy consumer decision making process (it won’t happen for a while until the consumer decides on the purchase).
In determining the communications objectives, the marketing communicator needs to know ____
where the target audience now stands and to what stage it needs to be moved.
What are the 6 buyer-readiness stages?
awareness, knowledge, liking, preference, conviction, and purchase
Buyer-readiness stages
The stages consumers normally pass through on their way to a purchase: awareness, knowledge, liking, preference, conviction, and, finally, the actual purchase
The marketing communicator’s target market may be totally unaware of the product, know only its name, or know only a few things about it. Thus, ____
the marketer must first build awareness and knowledge
Personal communication channels
Channels through which two or more people
communicate directly with each other, including face to face, on the phone, via mail or e-mail, or even through an Internet “chat.”
Word-of-mouth influence
Personal communications about a product between target buyers and neighbors, friends, family members, and associates.
Buzz marketing
Cultivating opinion leaders and getting them to spread information
about a product or a service to others in their communities.
Nonpersonal communication channels
Media that carry messages without personal contact or feedback, including major media, atmospheres, and events
Affordable method
Setting the promotion budget at the level management thinks
the company can afford.
percentage-of-sales method
Setting the promotion budget at a certain percentage
of current or forecasted sales or as a percentage of the unit sales price.
Competitive-parity method
Setting the promotion budget to match competitors’
outlays
objective-and-task method
the company sets its promotion budget based on what it wants to
accomplish with promotion. This budgeting method entails (1) defining specific
promotion objectives, (2) determining the tasks needed to achieve these objectives,
and (3) estimating the costs of performing these tasks. The sum of these costs is the
proposed promotion budget.
advantages and challenges of the objective-and-task method
it forces management to
spell out its assumptions about the relationship between dollars spent and
promotion results. But it is also the most difficult method to use. Often, it is hard to
figure out which specific tasks will achieve the stated objectives.
Objective-and-task method
Developing the promotion budget by (1) defining
specific promotion objectives, (2) determining the tasks needed to achieve these
objectives, and (3) estimating the costs of performing these tasks. The sum of these
costs is the proposed promotion budget.
push strategy
involves “pushing” the product through marketing channels to final consumers. The
producer directs its marketing activities (primarily personal selling and trade
promotion) toward channel members to induce them to carry the product and
promote it to final consumers.
pull strategy
the producer directs its marketing activities (primarily
advertising, consumer promotion, and direct and digital media) toward final
consumers to induce them to buy the product.
Push strategy
A promotion strategy that calls for using the sales force and trade
promotion to push the product through channels. The producer promotes the
product to channel members who in turn promote it to final consumers.
Pull strategy
A promotion strategy that calls for spending a lot on consumer
advertising and promotion to induce final consumers to buy the product, creating a
demand vacuum that “pulls” the product through the channel.
Define the five promotion mix tools for communicating customer value.
A company’s total promotion mix −also called its marketing communications mix −
consists of the specific blend of advertising, personal selling, sales promotion, public
relations, and direct and digital marketing tools that the company uses to engage
consumers, persuasively communicate customer value, and build customer
relationships. Advertising includes any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor. In contrast, public
relations focuses on building good relations with the company’s various publics.
Personal selling is personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships. Firms use sales promotion to
provide short-term incentives to encourage the purchase or sale of a product or
service. Finally, firms seeking immediate response from targeted individual
customers use direct and digital marketing tools to engage directly with customers and
cultivate relationships with them.
Discuss the changing communications landscape and the need for integrated
marketing communications
The explosive developments in communications technology and changes in
marketer and customer communication strategies have had a dramatic impact on
marketing communications. Advertisers are now adding a broad selection of
more-specialized and highly targeted media and content −including online, mobile,
and social media −to reach smaller customer segments with more-personalized,
interactive messages. As they adopt richer but more fragmented media and
promotion mixes to reach their diverse markets, they risk creating a communications
hodgepodge for consumers. To prevent this, companies are adopting the concept of
integrated marketing communications (IMC). Guided by an overall IMC strategy, the
company works out the roles that the various promotional tools and marketing
content will play and the extent to which each will be used. It carefully coordinates
the promotional activities and the timing of when major campaigns take place.
Outline the communication process and the steps in developing effective marketing
communications.
The communication process involves nine elements: two major parties (sender,
receiver), two communication tools (message, media), four communication functions
(encoding, decoding, response, and feedback), and noise. To communicate
effectively, marketers must understand how these elements combine to
communicate value to target customers.
In preparing marketing communications, the communicator’s first task is to identify
the target audience and its characteristics. Next, the communicator has to determine
the communication objectives and define the response sought, whether it be
awareness, knowledge, liking, preference, conviction, or purchase. Then a message should
be constructed with an effective content and structure. Media must be selected, both
for personal and nonpersonal communication. The communicator must find highly
credible sources to deliver messages. Finally, the communicator must collect feedback
by watching how much of the market becomes aware, tries the product, and is
satisfied in the process.
Explain the methods for setting the promotion budget and factors that affect the
design of the promotion mix
The company must determine how much to spend for promotion. The most popular
approaches are to spend what the company can afford, use a percentage of sales,
base promotion on competitors’ spending, or base it on an analysis and costing of
the communication objectives and tasks. The company has to divide the promotion
budget among the major tools to create the promotion mix. Companies can pursue a
push or a pull promotional strategy −or a combination of the two. The best specific
blend of promotion tools depends on the type of product/market, the buyer’s
readiness stage, and the PLC stage. People at all levels of the organization must be
aware of the many legal and ethical issues surrounding marketing communications.
Companies must work hard and proactively at communicating openly, honestly, and
agreeably with their customers and resellers.
