Marketing Ch.17

communication

-a sharing of meaning through the transmission of information

promotion

-communication to inform, persuade, and remind consumers (either directly or indirectly) about products/brands -overall role of promotion is to stimulate demand (generate sales) and build brand equity (awareness and reinforcement) -communication to build and maintain relationships by informing an persuading one or more audiences

benefits of advertising

-extremely cost efficient (cost/person) in reaching a large audience (superbowl) -repeatable several times and in several media markets -advertising a product a certain way can add to the product's value, and the visibility an organization gains from advertising can enhance its image

limitations of personal selling

-it is an expensive form of communication ($300/sales call) -it is labor intensive/time-consuming

criticisms of promotion

-it is deceptive and unethical -raising prices (it actually lowers them) -manipulates consumers by persuading them to buy products they do not need, hence creating "artificial" needs -promotion leads to materialism -does promotion help customers enough to be worth the cost of billions of dollars for promotion -suggest that certain products should not be promoted at all (those who defend this assert that, as long as it is legal to sell a product, promoting that product should be allowed

advantages of personal selling

-more specific form of advertising -greater impact on consumers -provides immediate feedback (kinesics, proxemic, tactile)

disadvantages of advertising

-rising costs -fragmentation (in order to reach target audience, companies have to go through many outlets/channels making it more expensive) -measurements of effectiveness -rarely provides rapid feedback

promotional resources, objectives, and policies

-the size of an organization's promotional budget affects the number and relative intensity of promotional methods included in a promotion mix -an organization's promotional objectives and policies also influence the types of promotion selected

coupons distribution/redemption

-value of redeemed increased -amount redeemed decreased -interest in coupons is high particularly among millennials, students, men, and there appears to be a widening gap trend: using traditional distribution, declining face values, shrinking redemption periods and increased purchase requirements

public relations

a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders -non paid, non-personal communication in a news form about an organization or its products, or both, transmitted through a mass medium

promotion mix

a combination of promotional methods used to promote a specific product

to send a consistent message to customers

a major goal of integrated marketing communications is _______

combat competitive promotional efforts

a marketer's objective at times in using promotion is to offset or lessen the effect of a competitor's promotional or marketing programs -used most often by firms in extremely competitive consumer markets, such as the fast-food, convenience store, and cable/Internet/phone markets

advertising

a paid non personal communication about an organization and its products transmitted to a target audience through mass media -can reach an extremely large target audience or focus on a small, precisely defined segment -losing to sales promotions -includes tv and radio (broadcast), newspaper and magazines (print), billboards and signage (outdoors), yellow pages, and internet

personal selling

a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation -most extensively used in the business to business market and also in the business to consumer market for high end products such as homes, cars, electronics, and furniture

source

a person, group, or organization with a meaning it tries to share with a receiver or an audience ex: an electronics salesperson wishing to communicate the attributes of 3D TV to a buyer in the store or TV manufacturer using television ads to inform thousands of consumers about its products

viral marketing

a strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly -get users of the internet to pass on ads and promotion to others

facilitate reseller support

a two way street: producers generally want to provide support to resellers to assist in selling their products, and in turn they expect resellers to support their products

sales promotion

an activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers -Ex: free samples, games, rebates, sweepstakes, contests, premiums, and coupons -growing compared to advertising, and more money is spent on it

buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event -works best as a part of an integrated marketing communication program that also uses advertising, personal selling, sales promotion, and publicity

noise

anything that reduces a communication's clarity and accuracy -perverts message

audience fragmentation

audience split between different channels with golf fragmentation media - ex: web=million of sites

encourage product trial

becomes a considered product/brand as part of the target's evoked set (free sample, coupons, test drivers, limited free-offers, contests, games)

adoption (retain loyal customers)

cheaper than acquiring new ones -frequent-user programs (Kroger Card) -special offers

electronic word-or-mouth

communicating about products through websites, blogs, e-mail, social networks, or online forums

proxemic communication

communicating by varying the physical distance in face-to-face interactions -less obvious form ex:when a customer backs away from a salesperson, they may be displaying a lack of interest in the prod. or expressing dislike for the sales person -personal space, try to get closer and sense comfort level

kinesics communication

communicating through the movement of head, eyes, arms, hands, legs, or torso -watching body language and expressions -frequently used between a salesperson and customer ex: winking, head nodding, hand gestures, and arm motions -faciel cues

tactile communication

communicating through touching -less popular in the US than in many other countries -handshaking is a common form of tactile communication both in the US and elsewhere -arm touching -personal "touch"

coding process (encoding)

converting meaning into a series of signs or symbols

decoding process

converting signs or symbols into concepts and ideas

integrated marketing communications

coordination of promotion and other marketing efforts for maximum informational and persuasive impact

costs and availability of promotional methods

costs of promotional methods are major factors to analyze when developing a promotion mix; national advertising and sales promotion require large expenditure -despite tremendous number of media vehicles in the US, a firm may find that no available advertising medium effectively reaches a certain target market

goal of public relations

create and maintain favorable relationships between the organization and its stakeholders -create and enhance a positive image of the organization

create awareness

crucial to initiating the product adoption process

primary demand

demand for a product category rather than for a specific brand

selective demand

demand for a specific brand

reduce sales fluctuations

demand for many products varies from 1 month to another because of such factors as climate, holidays, and seasons -promotional techniques are often designed to stimulate sales during sales slumps

transmission media

ex: printed words (newspapers and magazines), broadcast media (television and radio) -tv is most common -internet is most common for 18-29 yrs old

synchronization of promotion elements

integrated marketing communications also enable __________

company hopes to educate consumers about the features of a durable good

its promotion mix may combine a moderate amount of advertising, possibly some sales promotion designed to attract customers to retail stores, and a great deal of personal selling, because this method is an efficient way to inform customers about such products

company's objective is to create mass awareness of a new convenience good

its promotion mix probably leans heavily toward advertising, sales promotion, and possibly public relations

publicity

non personal communication in news-story form about an organization or its products, or both, transmitted through a mass medium at no charge -ex: news releases, press conferences, and feature articles

create awareness, stimulate demand, encourage product trial, identify prospects, adoption (retain loyal customers), facilitate reseller support, combat competitive promotional efforts, reduce sales fluctuations

objectives of promotion

word-of-mouth communication

personal informal exchanges of communication that customers share with one another about products, brands, and companies -has a strong impact on consumers' buying proclivities -research has identified a link between WOM communication and new-customer acquisition when there is customer involvement and satisfaction -not effective in all product categories -seems to be most effective for new-to-market and more expensive products

pull policy

promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel -intended to pull the goods down through the channel by creating demand at the consumer level

push policy

promoting a product only to the next institution down the marketing channel -normally stresses personal selling

firm's objective is to produce immediate sales of nondurable services

promotion mix will probably stress advertising and sales promotion

pioneer promotion

promotion that informs consumers about a new product

identify prospects

promotional efforts aim to identify customers who are interested in the firm's product and are likely potential buyers

selecting promotion mix elements

promotional resources, objectives, and policies, characteristics of the target market, characteristics of the product, costs and availability of promotional methods, push and pull channel policies

mutually exclusive

push and pull channel policies are not ______ ________

characteristics of the target market

size, geographic distribution, and demographic characteristics help dictate the method to include in a product's promotion mix

the communication process

source to coded message to communications channel to decoded message to receiver or audience who gives feedback back to the source

stimulate demand

target segment with information that will meet their unmet needs ("rings their doorbell")

advertising, personal selling, public relations, and sales promotion, WOM

the four (5) possible elements of a promotion mix:

receiver

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

channel capacity

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

communication channel

the medium of transmission that carries the coded message from the source to the receiver

feedback

the receiver's response to a decoded message

product placement

the strategic location of products or product promotions within entertainment media content to reach the product's target market -reality programming has been a natural fit for product placements, because of the lost interchange between the participants and the product

annual reports, brochures, and event sponsorship

tools used by public relations -ex: Brawney "nation's heroes"

audience

two or more receivers

kinesics, proxemic, tactile

types of interpersonal communication feedback

characteristics of the product

whether its a business product, or consumer durable, or seasonal product, the product's price, the stage of the product life cycle it is in, intensity of market coverage, product's use

top of mind awareness (TOMA) is that important

why advertise when it is so expensive?

more expensive, less measureable

why is advertising losing to sales pormotions