Marketing Chapter 14

The affordable method

sets the promotion budget at the level management thinks the company can afford. Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has. They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to advertising.

The competitive-parity method

sets the promotion budget to match competitors' outlays. This method encourages to spend a little more than competitors. just look at the competition and go off of what they do.

Sales promotion

includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase. a short-term incentive to encourage the purchase or sale of a product or service. AIDA: action Examples include: Discounts, Coupons, Displays, Demonstrations Best either at the beginning or at the end of the PLC (he doesn't like doing this)

Integrated marketing communications (IMC)

involves carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.The shift toward a richer mix of media and brand content approaches poses a problem for marketers. Consumers today are bombarded by brand content from a broad range of sources. But consumers don't distinguish between content sources the way marketers do. In the consumer's mind, brand content from different sources—whether it's a Super Bowl ad, in-store display, mobile app, or a friend's social media post—all become part of a single message about the brand or company. Conflicting content from these different sources can result in confused company images, brand positions, and customer relationships. All too often, companies fail to integrate their various communication channels. The result is a hodgepodge of brand content to consumers. The new world of online, mobile, and social media marketing presents tremendous opportunities but also big challenges. Marketers benefit from increased access to their customers and fresh insights into their preferences. However, marketers must manage the complexity, fragmentation choices available so it comes together in an organized way.

Buzz marketing

involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.These brand ambassadors then create buzz by sharing their experiences via blogs, tweets, Facebook updates, YouTube videos, and other social media interactions.

Personal communication

involves two or more people communicating directly with each other. • Face to face • Phone • Mail or e-mail • Texting or Internet chat

Nonpersonal communication channels

media that carry messages without personal contact or feedback, including major media, atmospheres, and events.

Rational appeal

relates to the audience's self-interest Rational appeals show that the product will produce the desired benefits. Examples are messages showing a product's quality, economy, value, or performance.

The percentage-of-sales method

sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. The percentage-of-sales method is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit.

Steps in Developing Effective Marketing Communication

Identify the target audience Determine the communication objectives Design the message Choose the media to send the message Select message source and collect feedback

Opinion leaders

Opinion leaders are people whose opinions are sought by others. Personal influence carries great weight, especially for products that are expensive, risky, or highly visible. Companies can take steps to put personal communication channels to work for them. They can create opinion leaders for their brands— people whose opinions are sought by others—by supplying influencers with the product on attractive terms or by educating them so that they can inform others. Opinion leaders are considered to be more credible. Advertising should target the opinion leaders fist so that they then by word of mouth can disseminate the message.

What are the five promotion mix tools for communicating customer value?

Public relations Advertising Direct and digital marketing Personal selling Sales promotion 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.

What are the four strategies when setting the total promotion budget?

The affordable method The percentage-of-sales The competitive-parity method The objective-and-task method

The fifth step in developing effective marketing communication is to select message source and collect feedback. What does that entail?

The message's impact depends on how the target audience views the communicator. • Celebrities = Testimonials • Athletes • Entertainers • Professionals • Health care providers Collecting feedback involves the communicator understanding the effect on the target audience by measuring behavior resulting from the content. this is a big challenge what do they think? how do they react? where are we in the AIDA process? what do we have to do to move along? are our current methods effective? After sending the message, the communicator must research its effect on the target audience. This involves asking target audience members whether they remember the message, how many times they saw it, what points they recall, how they felt about the message, and their past and present attitudes toward the product and company. The communicator would also like to measure behavior resulting from the message—how many people bought the product, talked to others about it, or visited the store. Feedback on marketing communications may suggest changes in the promotion program or in the product offer itself.

Which of the four strategies for setting the total promotion budget is actually good?

The objective-and-task method However, a different method may be appropriate depending on season, the PLC, competition (so that you can keep out competition and respond to attacks by others).

What is the challenge with advertising?

To determine are we reaching our TM and is it efficient and effective? Peter prefers that ads are simple and descriptive and not too abstract, or creative because he says people forget them so they don't do a lot of good.

The second step in developing effective marketing communication is to determine the communication objectives. What does that entail?

Use the AIDA process to determine which stage we should be tailoring our message for. The target audience may be in any of six buyer-readiness stages, the stages consumers normally pass through on their way to making a purchase. These stages are awareness, knowledge, liking, preference, conviction, and purchase. Assuming that target consumers know about a product, how do they feel about it? These stages include liking, preference, and conviction. A combination of promotion mix tools are used to create positive feelings and conviction Finally, some members of the target market might be convinced about the product but not quite get around to making the purchase. To help reluctant consumers over such hurdles, companies may offer buyers special promotional prices and upgrades, and support the product with comments and reviews from customers at its Web and social media sites and elsewhere.

The first step in developing effective marketing communication is to identify the target audience. What does that entail?

Utilizing the different means of segmentation You must think about What will be said- 1 Sentence How it will be said-use creative teams When it will be said Where it will be said Who will say it-testimonial- make sure they have a good reputation A marketing communicator starts with a clear target audience in mind. The audience may be current users or potential buyers, those who make the buying decision or those who influence it. The audience may be individuals, groups, special publics, or the general public. The target audience will heavily affect the communicator's decisions on the questions shown on the slide - what, how, when, where and who?

Public relations

a very believable form of promotion that includes news stories, features, sponsorships, and events. Involves 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. Examples of public relations include press releases, sponsorships, events and Web pages. AIDA : attention Free & credible but not always what you want to communicate

Emotional appeal

an attempt to stir up positive or negative emotions to motivate a purchase Communicators may use emotional appeals ranging from love, joy, and humor to fear and guilt. Advocates of emotional messages claim that they attract more attention and create more belief in the sponsor and the brand.

Direct and digital marketing

an immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telephone marketing, online, mobile, and social media. involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. Cheaper and more efficient than advertising A kind of digital marketing is to use a multichannel approach in which they may sell things online as well as in the stores. this may provide conflicts however.--(vertical or horizontal). Direct and digital marketing includes: Direct mail Catalogs Online and social media Mobile marketing

Advertising

can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times. any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Broadcast Print Online Mobile Outdoor AIDA : interest A kind of digital marketing Sending emails is a direct marketing approach because you actually need a mailing list.

The third step in developing effective marketing communication is to design the message. What does that entail?

create emotions and identification *a picture of someone using the thing ***EYES **Lips 3 things in message: 1. USP 2. Brand Logo/ brand name 3. Picture that connects the above 2 The message should be focusing on the communication objective- one of the stages in the AIDA process. The message shouldn't be so creative that the audience cannot discern what the advertisement is for. Effectiveness should be a higher priority. Having defined the desired audience response, the communicator then turns to developing an effective message. Ideally, the message should use the the AIDA model framework. In practice, few messages take the consumer all the way from awareness to purchase, but the AIDA framework suggests the desirable qualities of a good message.

The objective-and-task method

develops the promotion budget by specific promotion objectives and the costs of tasks needed to achieve these objectives. This method is the only actually good one. it asks the question; did we reach the objectives? we can then start persuading the finance peeps that marketing isn't a cost but rather is an investment. can be very expensive. Nowadays we should spend less to reach the same objectives on advertising because we can do it right-- for example digitally.

Moral appeal

directed to an audience's sense of what is right and proper Moral appeals are often used to urge people to support social causes, such as a cleaner environment or aid to the disadvantaged.

Personal selling

the most effective method at certain stages of the buying process, particularly in building buyers' preferences, convictions, actions, and developing customer relationships. the personal interaction by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships. Most expensive PM tool but should not be always avoided because it provides valuable 2 way communication and customization along with the possibility for feedback. 1 visit of personal selling costs $500 -so you better make it worth it -should just be used occasionally Personal selling includes: Sales presentations Trade shows Incentive programs

when should we use a testimonial?

when they have a good image when our brands dont differentiate much the brand then takes on the attributes of the testimonial and appeals to emotion B to B cares about attributes, not testimonials

The fourth step in developing effective marketing communication is to choose the media to send the message. What does that entail?

where does the target audience spend time and get information? narrowcasting emails endorsements personal communication opinion leaders buzz Marketing non-personal communication choose when and where