ch. 15 Marketing

connecting promotion

- Form relationships with customers & potential customers - Allow customers to share ideas, information, & feedback - Hope is for more engagement and ultimately purchases - Create brand advocates

factors affecting the promotional mix

-nature of the product -stages in the product life cycle -target market characteristics -type of buying decision -available funds -push and pull strategies

PLC and promotional strategies

1. introduction stage = inform the target audience that the product is available 2. growth stage = persuasion 3. maturity stage = persuasive and reminder advertising in response to fierce competition 4. decline stage = all promotion, especially advertising, is reduced

types of buying decision

1. routine buying decisions = advertising and sales promotion to bring attention to and remind abt product 2. neither routine nor complex = advertising and public relations to bring awareness 3. complex = personal selling

most important factor in determining the promotional mix

MONEY

desire (AIDA)

Potential customers may like the concept of a product, but then they must be persuaded that the product is the best option to fulfill their needs and wants; "I like it" to "I want it"

attention (AIDA)

The advertiser must first gain the attention of the target market because a firm cannot sell something if the market does not know the good or service exists.

interest (AIDA)

The next step is to create interest in the product.

retention

The proportion of material retained (remembered).

earned media

a category of promotional tactics based on a public relations or publicity model that gets customers talking about products or services; media coverage, word of mouth

paid media

a category of promotional tactics based on the traditional advertising model, whereby a brand pays for media space; television, instagram ads, outdoor, pay-per-click ads online

Transmission of a message requires

a channel

pull strategy

a marketing strategy that stimulates consumer demand to obtain product distribution; manufacturer promotes to customer, customer demands from retailer, retailer demands from wholesaler, wholesaler demands from manufacturer

push strategy

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise; manufacturer promotes product to wholesaler, wholesaler promotes to retailer, etc.

channel

a medium of communication—such as a voice, radio, or newspaper—for transmitting a message

AIDA concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message

owned media

a new category of promotional tactics based on brands becoming publishers of their own content in order to maximize the brands' value to customers; company website, facebook, instagram, blogs

promotional strategy

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media

personal selling

a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other

primary benefit of advertising

ability to communicate to large numbers of potential customers

Paid, nonpersonal communication through mass media such as a radio ad is an example of which component of the promotional mix?

advertising

promotional mix components

advertising, public relations, sales promotion, personal selling, social media

promotional mix components that are best at "attention" and "interest"

advertising, public relations, social media

target market characteristics

advertising, sales promotion, less personal selling; print advertising for hard to find potential customers

Which components of the promotional mix give the marketer control over the message? (Select three)

advertising, sales promotion, personal selling

noise

anything that interferes with, distorts, or slows down the transmission of information

AIDA concept stands for

attention, interest, desire, and action

If a marketer were to use public relations mainly because it's inexpensive, they are considering which factor affecting the promotional mix?

available marketing funds

nature of the product (factors affecting the promotional mix)

business and consumer products require different types of selling

promotion

communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

Integrated marketing communications (IMC) is the careful coordination of all promotional messages to ensure the marketer's messages are _______ at every point of contact with the consumer.

consistent

action (AIDA)

consumers must be motivated to take action by making a purchase

Feedback enables mass communicators to decide whether to

continue, modify, or drop a message

The main function of a marketer's promotional strategy is to

convince target customers that the goods and services offered are superior to the competition

PR people communicate with stakeholders in a company which include

customers, suppliers, stockholders, government officials, employees, and the community in which it operates

During which stage of the product life cycle is it recommended that most promotional expenses—but especially advertising—be reduced?

decline

persuasive promotion

designed to stimulate a purchase or an action; used during growth stage of PLC; emphasizes product's real and perceived competitive advantages; message often appeals to emotional needs

During which AIDA stage must the company clearly communicate their competitive advantages?

desire

content marketing

developing valuable content for interested audience members, and then using digital means to pull customers to that informative content.

interpersonal communication

direct, face-to-face communication between two or more people; ex. sales pitch

Which type of media can be low cost and effective but may make it difficult for the marketer to control the results and the message?

earned media

Newer types of sales promotion

experiential marketing and loyalty programs

Examples of traditional types of sales promotion

free samples, contests, premiums, trade shows, vacation giveaways, and coupons

Data and data analytics

help marketers figure out funding for their promotional mix tactics

advertising

impersonal, one-way mass communication about a product or organization that is paid for by a marketer; cost per contact is very low, but total cost is very high

mass communicators often use (feedback type)

indirect feedback in the form of market research, social media, or analysis of viewer responses

As senders, marketers attempt to

inform, persuade, and remind the target market to take actions compatible with the need to promote the purchase of goods and services

Promotion can perform one or more of four tasks, sometimes simultaneously:

inform, persuade, remind, connect with the target audience

Communication can be divided into two major categories:

interpersonal and mass

decoding

interpretation of the language and symbols sent by the source through a channel

During which stage of the product life cycle is it recommended that a marketer use advertising or public relations to raise awareness of its product?

introduction

More current methods of personal selling

involve developing a relationship between a salesperson and a buyer.

A company or organization is a sender when

it executes an advertisement, press release, or social media campaign; ex. social media influencers

A basic principle of encoding is that what the sender says is not what matters,

it is what the receiver hears.

distortion

loss of accuracy of the intended message

As receivers, marketers

marketers listen to the target market in order to develop the appropriate messages, adapt existing messages, and spot new communication opportunities.

sales promotion

marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness

A company runs an ad on social media. This is an example of which type of communication?

mass communication

competitive advantage

one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors

Today, promotional tactics can be categorized according to media type:

paid, earned, owned media

Which component of the promotional mix is conducted person-to-person with the buyer and may take place face-to-face, over the telephone, or by online video?

personal selling

Which type of promotional goal focuses on a call to action for the consumer?

persuading

Traditional methods of personal selling

planned presentation to one or more prospective buyers for the purpose of making a sale.

marketing mix

product, place (distribution), promotion, price

A plan for the optimal use of the elements of promotion is a _______.

promotional strategy

publicity

public information about a company, product, service, or issue appearing in the mass media as a news item

Holding a press conference to communicate with various stakeholders of the firm is an example of which component of the promotional mix?

public relations

A consumer listening to radio advertisement is an example of which component of the communications process?

receiver

Which type of promotional goal is usually used during the maturity phase of a product's life cycle to maintain market share?

reminding

Distributing coupons is an example of which component of the promotional mix?

sales promotion

Which component of the promotional mix includes marketing activities that provide a short-term incentive to buy and is usually used in combination with other forms of promotion?

sales promotion

promotional mix components that are best at "desire" and "action"

sales promotion, personal selling

informative promotion

seeks to convert an existing need into a want, or to stimulate interest in a new product; used during early stages of PLC

communication process

sender, encoding the message, message channel (noise in here), decoding the message, receiver, feedback loop (receiver to sender)

If a marketer were to run ads so they could reach a large audience that is dispersed over a big geographic area, they are considering which factor affecting the promotional mix?

target market characteristics

Reception can be high or low, depending on

the amount of noise

integrated marketing communications (IMC)

the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every point at which a company has contact with the consumer

promotional mix

the combination of promotional tools—advertising, public relations, personal selling, sales promotion, and social media—that are used to reach the target market and fulfill the organization's overall goals

mass communication

the communication of a concept or message to large audiences; not very effective at targeting; ex. magazine ad

communication space and brand message is now increasingly controlled by

the consumer

encoding

the conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs

public relations

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance

as a general rule, as costs and risks for purchasing a product or service go up,

the more important personal selling becomes

sender

the originator of the message in the communication process

receiver

the person who decodes a message; can be multiple receivers especially in marketing

communication

the process by which we exchange or share meaning through a common set of symbols

selective exposure

the process whereby a consumer notices certain stimuli and ignores others

feedback

the receiver's response to a message

In relation to advertising, marketing budgets are shifting away from

traditional communication media and more toward digital options (such as social media).

If a marketer chooses advertising over personal selling because their product is a routine and simple purchase, they are considering which factor affecting the promotional mix?

type of buying decision

these days, without IMC, promotional messages are

uncoordinated and, therefore, wasteful, inefficient, and ineffective.

reminder promotion

used to keep the product and brand name in the public's mind; used during maturity stage; assumes audience has already been persuaded on how good it is; suppose to trigger a memory that leads to a purchase

Reception occurs when

when the message is detected by the receiver and enters his or her frame of reference.

The proper promotional mix is the one that management believes

will meet the needs of the target market and fulfill the organization's overall goals

Digital platforms and social media have had an impact on the communication model in two major ways:

−Consumers are now able to become senders (as opposed to only brands being senders). −The feedback channel is no longer as impersonal and numbers driven as it once was.