Marketing Chapter 17

Communication (Process)

1) "Source" converts meaning into a series of signs or symbols ("coding process/encoding") 2) Source chooses a "communication channel" as a medium of transmission that carries the coded message 3) "Receiver" (2 or more="audience") now "decodes" the message and converts the symbols into concepts and ideas ***(When the decoded message differs from the coded message, there is "noise" present) 4) The receiver's response to the coded messages is the "feedback"

Objectives of Promotion

1. create awareness 2. stimulate demand 3. encourage product trial 4. identify prospects 5. retain loyal customers 6. facilitate reseller support 7. combat competitie promotional efforts 8. reduce sales fluctuations

criticisms and defenses of promotion

1. deceptiveness - sometimes, naiveté of children, misleading, ambiguous words 2. raises prices - no, aims to lower them 3. creates needs - no, capitalizes on them 4. materialism - values a home, controversy with younger generation 5. helps customers - yes, informs 6. harmful - no, as long as legal, allowed

Public Relations

A broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders.

Promotion Mix

A combination of promotional methods used to promote a specific product: advertising, personal selling, public relations, and sales promotion.

Communication

A sharing of meaning through the transmission of information.

Source

Begins the communication and is a person, group, or organization with a meaning it attempts to share with the audience.

Proxemic Communication

Communicating by varying the physical distance in face-to-face interactions (if customer backs away=disinterest)

Kinesic Communication

Communication through the movement of the head, eyes, arms, hands, legs, or torso (winking, nodding etc.)

Coding Process (aka encoding)

Converting meaning into a series of signs or symbols that transmit meaning.

Buzz Marketing

Is an attempt to incite publicity and public excitement surrounding a product through a creative event. (I.e. Elvis impersonator for Southwest Airlines)

Word-of-Mouth Communication

Personal informal exchanges of communication that customers share with one another about products, brands, and companies.

Pull Policy

Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel

Push Policy

Promoting a product only to the next institution down the marketing channel (ie The producer to the wholesaler/wholesalers to retailers/retailers to consumers)

Pioneer Promotion

Promotion that informs consumers about a new product (i.e. Apple -> tablet technology)

Channel Capacity

The limit on the volume of information a communication channel can handle effectively

communication channel

The medium of transmission that carries the coded message from the source to the receiver.

Product Placement

The strategic location of products or product promotions within entertainment media content to reach the product's target market

Tactile Communication

although less popular in US it is the communication through touch (handshake, arm over shoulder=trust, etc.)

Primary Demand

demand for a product category rather than for a specific brand of product through pioneer promotion

Selective Demand

demand for a specific brand.

Advertising

is a paid non-personal communication about an organization and its products transmitted to a target audience through mass media, including television, radio, the internet etc.

Personal Selling

is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation.

Viral Marketing

is a strategy to get consumers to share a marketer's message, often though email or online video, in a way that spreads dramatically and quickly.

Sales Promotion

is an activity or material that acts as a direct inducement, offering, added value or incentive for the product to resellers, salespeople, or consumers.

Noise

is anything that reduces the clarity and accuracy of the communication; it has many sources and may affect any or all parts of the communication.

Promotion

is communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization positively and accept its products.

Receiver

is the individual, group, or organization that decodes a coded message, and an Audience is two or more receivers.

Feedback

is the receiver's response to a decoded message

publicity

nonpersonal communication in news-story form about an organization or its products or both, transmitted through a mass medium at no charge

Integrated Marketing Communications

refer to the coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers.

Decoding process

signs or symbols are converted into concepts and ideas.