Chapter 16: Promotion
personal selling sales promotion public relations advertising
4 elements of the promotion mix
resources, objectives, policies characteristics of target market characteristics of product cost and availability of promo methods push and pull channel policies
5 selecting promotion mix elements
public relations
a broad set of communication efforts used to create/maintain favorable relationships between organization and stakeholders
product placement
a form of promotion that strategically locates products or product promotions within entertainment media to reach a product's target market
publicity
a non-personal communication in a news-story form about an organization, its products, or both
advertising
a paid non-personal communication about an organization and its products transmitted to a target audience through mass media
personal selling
a paid personal communication that seeks to inform customers and persuade them to purchase products
source
a person, group, or organization with a meaning it tries to share with a receiver or an audience
communications
a sharing of meaning through the transmission of info
viral marketing
a strategy to get consumers to share a marketer's message, often through email or online video, in a way that spreads dramatically and quickly
sales promotion
activities or materials that act as a direct inducement, offering, added value or incentive for the product to resellers, salespeople, or customers
can be targeted to specific individuals has greater impact on consumers provides immediate feedback
advantage of personal selling
cost-efficient when it reaches a large number of people lets source repeat the message several times visibility gained from advertising can enhance a firm's image
advantages of advertising
buzz marketing
an attempt to incite publicity and public excitement surrounding a product though a creative event
noise
anything that reduces communication's clarity and accuracy
personal selling and sales promotion
business products concentrate on ...
size geographic distribution demographic characteristics
characteristics of target market
promotion
communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization positively and to accept its products
convenience goods (= advertising) durables and expensive products (= personal selling and advertising) both (= public relations)
consumer products concentrate on ...
coding process (encoding)
converting meaning into a series of signs or symbols
decoding process
converting signs and symbols into concepts and ideas
integrated marketing communication
coordination of promotion and other marketing efforts for max informational and persuasive impact
primary demand
demand for a product category rather than a specific brand
selective demand
demand for a specific brand
absolute dollar outlay can be high rarely provides rapid feedback difficult to measure its effect on sales less persuasive than personal selling generally limited time exposure
disadvantages of advertising
stimulate product demand and build customer relationships
goal of promotion
expensive labor intensive time consuming
limitation of personal selling
create awareness stimulate demand encourage product trial identify prospects retain loyal customers facilitate reseller support combat competitive promo efforts reduce sales fluctuations
objectives of promotion
pull policy
promoting a product directly to consumers with the intention to develop strong consumer demand for products
push policy
promoting a product to the next institution down the marketing channel
feedback
receiver's response to a decoded message
receiver
the individual, group, or organization that decodes a coded message
channel capacity
the limit on the volume of info a channel can handle effectively
communication channel
the medium of transmission that carries coded message from the source to the receiver
the number and intensity of promo methods
the size of an organization's promo budget affects ...