Week 9 Flashcards
Promotional Mix is and use to: (3)
is a combination of one or more communication tools used to:
1. inform
2. persuade
3. remind
5 elements of promotional mix
- advertising
- personal selling
- public relation
- sales promotion
- direct marketing
advertising is
any paid form of nonpersonal communication about an organization, productive, service
advertising
institutional advertisement and product advertisement
institutional advertisement: build goodwill or an image for an organization (reputation)
product advertisement: focuses on selling product/service
creating advertising messages
- message content: what the ad will say or communicate
- message execution: different types of appeal -> fear, sex, humorous
select the advertising media + factors to consider
where to place the ad
factors to consider:
- media habits of the target audience
- complexity of message
- product attributes may require certain media
- cost
Advertising
declining on media timing:
factor to consider (3)
scheduling approaches (3)
declining on media timing:
factor to consider (3)
- buyer turnover
- purchase frequency
- forgetting rate
scheduling approaches (3)
- continues (steady)
- flighting (intermittent)
- pulse (burst)
sales promotion is
kinds of sales promotion (9)
short-term inducement of value offered to arouse interest in buying a product or service
public relations is
roles (4)
advantages
publicity tools (2)
a form of communication management that seeks to influence the feelings held by customers about a product or service
advantages: more believable, soft selling
roles:
- evaluate public attitudes and opinions
- identifies issues of public concern
- executes programs to grain the public acceptance
- create visibility for the company and products
public tools: method of obtaining a nonpersonal presentation of an organization
- new release: announcement regarding changes in the company
- new conference: representatives of the media are all invited to an informal meeting
personal selling is
when does it worok
consist a two way flow of communication between a buyer and seller, often in a face to face encounter
when does it work?
- products are complex
- high involvement purchase
- media do not provide an effective link
direct marketing
direct communication with consumers
3 forms of product advertisements
- pioneering (information)
- competitive (persuasive)
- reminder
7 steps in developing an ad program
- identify the target audience
- specify the advertising objectives
- setting the advertising budget
- designing the advertisement
- selecting the right media
- other media alternatives
- scheduling the advertising
3 types of agency
full service - does everything
limited service/special - specializes in one aspect
in house - provides range of services, depending on the company needs
posttest (5)
- aided recall (starch test): percentage of those who remember seeing a specific ad, saw or read any, ads copy, at least half of the ad
- unaided recall:
- attitude test: changes of consumer’s attitude
- inquiry tests: offering additional product information
- sales tests: controlled experiments and consumer purchase task
basic terms of media buyers
- reach
- rating
- frequency
-gross rating points (GRPs)
- reach: the number of people exposed to an ad
- rating:
- frequency: percentage of households that are tuned to a particular show
-gross rating points (GRPs): reach X frequency
media planner must
- balance reach, frequency, and cost
- obtain the appropriate number of GRPs to achieve an advertising campaign’s objective
pretest
- portfolio test: test copy alternative
- jury test: ad copy to a panel of consumers and rate it
- theater test: invited to watch a new show which test commercial are shown
Cost per thousand formula
(cost of ad : audience size) x 1000
increasing value of promotion
- build long term relationships
- self regulation
trade oriented sales promotion (3)
- allowances and discounts (merchandise, case and finance allowances)
- cooperative advertising
- training of distributors salesforce
4 institutional advertisements
- advocacy
- pioneering
- competitive
- reminder
integrated marketing communications (IMC)
concept of designing a communication program that coordinate all promotional activities to provide a consistent message across audiences
communication requires 6 elements
- communication
- source
- message
- channel of communication
- receivers
- feedback loop
messages go through these steps
- encoding - sender transform idea to symbol
- decoding - symbol to idea according to their own reference (attitude, values, beliefs)
- field of experience
- response
- feedback
- noise
advantage of using advertising
- attention getting
- product benefits to prospective buyers
- firm controls what it said and to whom
- also when and implies how often it sent
- pretest to make sure capture the attention and market segment will decode it
disadvantages of using advertising
- cost to produce
- lack of direct feedback
personal selling
- two way flow communication buyer and seller
- face to face
- designed to influence a person’s or group purchase decision
advantages of personal selling
a. control to whom presentation is made
b. reduce wasted coverage
c. sales person can see potential buyers reaction and modify the message if the feedback is unfavorable
disadvantages of personal selling
a. flexibility - different people can change the message
b. on a cost per contact basis, the most expensive element
public relation tools
- publicity
- special events
- lobbying efforts
- annual reports
- press conferences
- social media
- image management
IMC - developing the promotional mix
value of direct marketing
- direct orders (all information for a buyer to make a decision to purchase)
- lead generation (generate interest in a product or service and a request for additional information)
- traffic generation (motivate people to visit a business)
benefits of a direct marketing
- dont have to go tostore
- shop 24hours
- save time and money
- receive unconditional guarantees
- avoid hassles with salespeople
- have more fun and privacy
- receive excellent customer service
developing IMC program
- selecting the right promotional tools
- designing the promotion
- scheduling the promotion
