Marketing 351 Chapter 14

Moral appeal

appeals are directed to the audience's sense of what is "right" and "proper." They are often used to urge people to support social causes such as a cleaner environment, better race relations, equal rights for women, and aid to the disadvantaged.

Atmosphere

are designed environments that create or reinforce the buyer's leanings toward buying a product.

Events

are staged occurrences that communicate messages to target audiences.

Non personal channels

communication channels are media that carry messages without personal contact or feedback Major media atmospheres events

Major Media

include print media, broadcast media, display media, and online media.

Push Strategy

involves "pushing" the product through distribution channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotions) toward channel members to induce them to carry the product and to promote it to final consumers.

Buzz Marketing

involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities

Media

is the communications channels through which the message moves from sender to receiver

Feedback

is the part of the receiver's response communicated back to the sender

Decoding

is the process by which the receiver assigns meaning to the symbols

Encoding

is the process of putting thought into symbolic form

Message

is the set of symbols the sender transmits

Noise

is the unplanned static or distortion during the communication process, which results in the receiver's getting a different message than the one the sender sent

Emotional Appeal

ppeals attempt to stir up either negative or positive emotions that can motivate purchase. • positive emotional appeals such as love, pride, joy, and humor. • negative emotional appeals, such as fear, guilt, and shame

Budgeting

AFFORDABLE % OF SALES COMPETITIVE PARITY OBJECTIVE-TASK

Promotion Mix

Advertising Sales Promotion selling Public Relations Direct Marketing

6 step buyer-readiness stages

Awareness Knowledge Liking Preference Conviction Purchase

public relations

Building good with the company's publics through favorable publicity, a good corporate image, and effective handing of unfavorable news. Press Releases, sponsorship, damage control. Public relations is very believable—news stories, features, sponsorships, and events seem more real and believable to readers than ads do. Public relations can reach many prospects that avoid salespeople and advertisements—the message gets to the buyers as "news" rather than as a sales-directed communication. Marketers tend to underuse public relations or to use it as an afterthought

Consumers are changing

Consumers are better informed and more communications and empowered

Direct Marketing

Gain an immediate response and lasting relationship with target customers. Use of direct mail, telephone, direct-response television, email, and internet to reach carefully targeted customers. Direct marketing is less public: The message is normally directed to a specific person. It is also immediate and customized. Messages can be prepared very quickly and can be tailored to appeal to specific consumers. Direct marketing is interactive: It allows a dialogue between the marketing team and the consumer, and messages can be altered depending on the consumer's response

Product life cycle

Introduction growth maturity decline

Receiver

Is the party receiving the message sent by another party

Sender

Is the party sending the message to another party

Marketing strategies are changing

Marketers are shifting away from mass marketing and are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micro markets

Competitive parity method

Other companies use the competitive-parity method, setting their promotion budgets to match competitors' outlays. They monitor competitors' advertising or get industry promotion spending estimates from publications or trade associations, and then set their budgets based on the industry average. Unfortunately, there are no grounds for believing that the competition has a better idea of what the company should be spending on promotion than does the company itself.

Percentage of sales method

Other companies use the percentage-of-sales method, setting their promotion budget at a certain percentage of current or forecasted sales. The percentage-of-sales is simple to use but it wrongly views sales as the cause of promotion rather than as the result.

Advertising

Paid non-personal presentation and promotion of ideas, goods, or services by an identifies sponsor. Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat the message many times. However, advertising is impersonal and cannot be as directly persuasive as can company salespeople. For the most part, advertising can carry on only a one-way communication with the audience, and the audience does not feel that it has to pay attention or respond. In addition, advertising can be very costly.

Personal Selling

Personal Presentation by the sales force used to enhance sales and customer relationships. Flexible but high cost per contact. Personal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers' preferences, convictions, and actions. The effective salesperson keeps the customer's interests at heart in order to build a long-term relationship. However, a sales force requires a longer-term commitment than does advertising—advertising can be turned on and off, but sales force size is harder to change. Personal selling is also the company's most expensive promotion tool. U.S. firms spend up to three times Personal

Rational Appeal

Relate to the audience's self-interest. they show that the product will produce the desired benefits

Communication process

Sender Encoding Message Receiver Media Decoding Feedback Noise

Sales Promotion

Short-term incentives used to encourage the purchase of a product or service. Programs such as contests, coupons or other incentives used to build interest in or encourage purchase of a product. Sales promotion includes a wide assortment of tools— coupons, contests, cents-off deals, premiums, and others— all of which have many unique qualities. They attract consumer attention, offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales. Sales promotions invite and reward quick response. Sales promotion effects are often short-lived.

Affordable method

Some firms set the promotion budget at the level they think the company can afford. Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has. Unfortunately, this method of setting budgets completely ignores the effects of promotion on sales. It tends to place advertising last among spending priorities, even in situations in which advertising is critical to the firm's success.

Message structures

The first is whether to draw a conclusion or leave it to the audience. Recent research suggests that in many cases, rather than drawing a conclusion, the advertiser is better off asking questions and letting buyers come to their own conclusions. The second message structure issue is whether to present the strongest arguments first or last. Presenting them first gets strong attention but may lead to an anticlimactic ending. The third message structure issue is whether to present a one-sided argument (mentioning only the product's strengths) or a two-sided argument (touting the product's strengths while also admitting its shortcomings).

Develop Effective Messages

The message should get Attention, hold Interest, arouse Desire, and obtain Action (a framework known as the AIDA model). • In putting the message together, the marketing communicator must decide what to say (message content) and how to say it (message structure and format).

Objective and task method

The most logical budget-setting method is the objective-and- task method, whereby the company sets its promotion budget based on what it wants to accomplish with promotion. The advantage of the objective-and-task method is that it forces management to spell out its assumptions about the relationship between dollars spent and promotion results. But it also is the most difficult method to use. Often, it is hard to figure out which specific tasks will achieve stated objectives.

Determining the communication objectives

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. o The communicator must first build awareness and knowledge.

Need for IMC

Under this concept the company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands. IMC builds brand identity and strong customer relationships by tying together all of the company's messages and images. Brand messages and positioning are coordinated across all communication activities and media.

Pull Strategy

Using a pull strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product. If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers. Thus, under a pull strategy, consumer demand "pulls" the product through the channels. Most large companies use some combination of both.

Personal Channels

Word-of-mouth Opinion leadership Buzz

Developing effective communication

identify target audience set communications objectives design the message choose the media select message source