Marketing 350 Chapter 16

IMC Effectiveness

- Because mass media advertising is used less frequently today because of its high cost and lower effectiveness in reaching some target markets, marketers can now take advantage of more precisely targeted promotional tools, such as TV, direct mail, the internet.... - Database marketing and analytics ae allowing marketers to target individual customers more precisely

IMC Elements

- Coordinating multiple marketing tools to produce this synergistic effect requires a marketer to employ a broad perspective - A major goal of IMC is to send a consistent message to customers.

Advertising Element Disadvantage

-Absolute dollar outlay can be high -Rarely provides rapid feedback -Often difficult to measure its effect on sales -Less persuasive than personal selling -Has a limited time exposure

Tools used in Public Relations

-Annual Reports -Brochures -Event sponsorships -Sponsorship of socially responsible programs -Publicity - News Releases - Press Releases - Feature Articles

Personal Selling Element Advantages

-Involves more specific communication than advertising -Has a greater impact on customers -Provides immediate feedback

Advertising Element Advantages

-Is extremely cost-efficient when it reaches a vast number of people at a low cost per person -Lets the source repeat the message several times -Visibility gained from advertising can enhance an organization's image

Promotion Mix

A combination of promotional methods used to promote a specific product

CPM: Source

A person, group, or organization with a meaning it tries to share with a receiver or an audience

CPM: Communication

A sharing of meaning through the transmission of information.

Viral marketing

A strategy to get consumers to share a marketer's message, often through e-mail or online video, in a way that spreads dramatically and quickly

Four Elements of a promotion mix

Advertising Personal Selling Public Relations Sales Promotion

Advertising Element

Advertising is paid nonpersonal communication about an organization and its products transmitted to a a target audience through mass media.

Buzz Marketing

An attempt to incite publicity and public excitement surrounding a product through a creative event

CPM: Noise

Anything that reduces a communication's clarity and accuracy

Combat Competitive Promotional Efforts

At times, a marketer's objective in using promotion is to offset or lessen the effect of a competitor's promotional or marketing programs -This type of promotional activity does not necessarily increase the organization's sales or market share, but it may prevent a sales or market share loss.

CPM: Decoding Process

Concertizing signs and symbols into concepts and ideas

CPM: Coding Process (encoding)

Converting meaning into a series of signs or symbol - when coding meaning into a message, the source must consider certain characteristics of the receiver or audience. - When coding a meaning, a source needs to use signs or symbols that the receiver or audience uses to refer to the concepts the source intends to convey.

Integrated Marketing Communications

Coordination of Promotion and other marketing efforts for maximum informational and persuasive impact on customers

Stimulate Demand: Primary Demand

Demand for a product category rather than a specific brand

Selective Demand

Demand for a specific brand - requires singling out attributes important to potential buyers -Can be stimulated by: - Differentiating the product from competing brands in the mind of potential buyers - Increasing the number of product uses and promoting them through advertising campaigns, as well as through price discounts, free samples, coupons, contests, and sweepstakes - Encouraging existing customers to use more of the product

Increase Awareness for existing products

Efforts go towards Brands Product Features Image related Issues Operational Characteristics

Personal Selling Element Disadvantage

Expensive!

Create Awareness

For an organization that is introducing a new product or a line extension, making customers aware of the product is crucial to initiating the product adoption process.

Sales Promotion Element Examples

Free Samples Games Coupons Sweepstakes Contests Rebates Premiums

Encourage Product Trial

If customers stall during the evaluation stage, marketers can use certain types of promotion--- such as free samples, coupons, test drives, or limited free-use offers, contests ..... to encourage product trial in order to move them through the product adoption process

Public Relations Element

PR is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders

Pull Policy

Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel -Example is advertising and sales promotion

Push Policy

Promoting a product only to the next institution down the marketing channel -Normally stresses personal selling

New Introductory Promotion

Promotion that informs consumers about a new product

Sales Promotion Element

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 customers

Communication Process Model

Source ===> Coded Message ===> Communications Channel ===> Decode Message ===> Receiver or Audience===> Back to source etc...

CPM: Receiver

The individual, group, or organization that decodes a coded message

CPM: Channel Capacity

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

CPM: Communications Channel

The medium of transmission carries coded messages from the source to the receiver. - Transmission media include printed words (newspapers and magazines), and digital communication

CPM: Feedback

The receiver's response to a decoded message -Can be verbal or nonverbal

Product Placement

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

CPM: Audience

Two or more receivers

Personal Selling Element

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

Product factors that influence which promotional element to use (1)

•Generally, promotion mixes for business products concentrate on personal selling, whereas advertising plays a major role in promoting consumer goods •A product's price also influences the composition of the promotion mix

Product factors that influence which promotional element to use (3)

•Intensity of market coverage is another factor affecting the composition of the promotion mix •Intensive distribution •Advertising, sales promotion •Selective distribution •Promotion mixes vary •Exclusive distribution •Personal selling

Product factors that influence which promotional element to use (2)

•The stage of a product's life cycle affects decisions regarding the promotion mix •Introduction •Advertising plus personal selling and sales promotion is used to generate awareness for both business and consumer products •Growth and Maturity • Consumer products require a heavy emphasis on advertising •Business products often call for a concentration of personal selling and some sales promotion •Decline Marketers decrease all promotional activities, especially advertising