Marketing Chapter 14
Promotion objectives should possess three important qualities
(1) be designed for a well-defined target audience, (2) be measurable, and (3) cover a specified time period.
sales promotion
A short-term offer designed to arouse interest in buying a product or service. -offered to intermediaries as well as to ultimate consumers. Coupons, rebates, samples, contests, and sweepstakes
receivers
Consumers who read, hear, or see the message
Which of the following statements regarding direct marketing is most accurate?
Many customers believe direct marketing saves time, is entertaining, and offers privacy.
lead generation
The result of a direct marketing offer designed to generate interest in a product or a service and a request for additional information. -Four Seasons Hotels
___ refers to the process by which the receiver takes a set of symbols and transforms them back to an idea.
decoding
In the communication process, the information sent by the source forms the ___.
message
Cost per contact is high with the ___ element of the promotional mix.
personal selling
Decline stage
phase-out for the product, and little money is spent in the promotional mix.
Maturity stage
to remind buyers of the product's existence. Sales promotion, in the form of discounts, coupons, and events, is important in maintaining loyal buyers. -to maintain existing buyers.
indirectly paid dimension
A difference between publicity and both advertising and personal selling
public relations
A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, potential customers, stockholders, suppliers, employees, and others about a company and its products or services.
five stages of the hierarchy of effects
Awareness, Interest, Evaluation, Trial, Adoption
The __________audit analyzes the internal communication network of the company; identifies key audiences; evaluates customer databases; assesses messages in recent ads, public relations releases, packaging, video news releases, signage, sales promotion pieces, and direct mail; and determines the expertise of company and agency personnel.
IMC
Introduction stage
Informing consumers in an effort to increase their level of awareness is the primary promotional objective in the introduction stage of the product life cycle. In general, all the promotional mix elements are used at this time.
Product Life Cycle
Introduction stage, Growth stage, Maturity stage, Decline stage
Promotion Budget
Percentage of sales, Competitive parity, All you can afford, Objective and task budgeting -only the objective and task method takes into account what the company wants to accomplish and requires that the objectives be specified.
direct marketing
Promotional element that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. -including face-to-face selling, direct mail, catalogs, telephone solicitations, direct response advertising , and online marketing -fastest-growing forms of promotion DISADVANTAGES -require a comprehensive and up-to-date database with information about the target market - privacy has led to a decline in response rates among some customer groups.
promotional mix
The combination of one or more of the communication tools used to (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.-advertising, personal selling, public relations, sales promotion, and direct marketing
message
The information sent by a source, such as a description of a new cellular telephone
traffic generation
The outcome of a direct marketing offer designed to motivate people to visit a business. -Home Depot uses an opt-in e-mail alert to announce special sales that attract consumers to the store
direct orders
The result of direct marketing offers that contain all the information necessary for a potential buyer to make a decision to purchase and complete the transaction. -Priceline.com will send PriceBreaker RSS alerts to people in its database
publicity
a nonpersonal, indirectly paid presentation of an organization, product, or service.
field of experience
a similar understanding and knowledge they apply to the message. -
five promotional alternatives
advertising, personal selling, public relations, sales promotion, and direct marketing.
promotional activities
advertising, personal selling, sales promotion, public relations, and direct marketing
Three of these elements that are often said to use mass selling because they are used with groups of prospective buyers.
advertising, sales promotion, and public relations
Mass selling refers to
advertising, sales promotions, and public relations activities that are used with groups of prospective buyers.
Mass selling includes which elements of the promotional mix?
advertising; sales promotion; public relations
Percentage of sales budgeting
amount of money spent on promotion is a percentage of past or anticipated sales. -common budgeting method -"our promotion budget for this year is 3 percent of last year's gross sales."
Interest
an increase in the consumer's desire to learn about some of the features of the product or brand.
advertising
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. -the space for advertising messages must be bought (paid).
behavioral targeting
collecting information about your web-browsing behavior to determine the banner and display ads that you will see as you surf the Web
feedback loop
consists of a response and feedback -made up of a response from the receiver, and feedback, the interpretation of the same by the source.
Factors such as differences in the availability of credit, the need for improved reliability and security in postal systems, and government regulations represent important challenges for __________ in the global market.
direct marketing
Which two of the following promotional alternatives benefit from a customized interaction between the seller and a prospective buyer?
direct marketing and personal selling
pull strategy
directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. -retailers order the product from wholesalers and thus the item is pulled through the intermediaries. Pharmaceutical companies- designed to encourage consumers to ask their doctor for a specific drug by name—pulling it through the channel.
push strategy
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. -personal selling and sales promotions play major roles.
pretesting
ensures that messages are decoded properly.
The third stage in the hierarchy of effects is __________.
evaluation
For the message to be communicated effectively, the sender and receiver must have a mutually shared ____.
field of experience
Noise
includes extraneous factors that can work against effective communication by distorting a message or the feedback received. -can be a simple error, printing mistake, words or pictures that fail to communicate the message clearly. -occurs when a salesperson's message is misunderstood by a prospective buyer **accent, slang, when communication style makes hearing and understanding difficult.
direct response advertising
is an important form of direct marketing
Competitive parity budgeting
matches the competitor's absolute level of spending or the proportion per point of market share.
source
may be a company or person who has information to convey.
The all-you-can afford method of promotion budgeting has been criticized for
not being based on the promotion-sales relationship nor on promotion objections.
In the percentage of sales method of promotion budgeting, funds are allocated to promotion as a percentage of either ____ sales.
past or anticipated
Developing, executing, and assessing the promotion program helps and organization by
prescribing a strategic approach that improves promotion decisions.
The first decision in executing the promotion program is to __________.
pretest the promotion
Pharmaceutical companies historically marketed only to doctors. More recently, they have spent millions of dollars to advertise prescription drugs directly to consumers. These pharmaceutical companies are using a __________ strategy.
pull
Promotion
represents the fourth element in the marketing mix. -consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing.
Which of the following are benefits consumers reports regarding their experiences with direct marketing?
saving time and money, 24 hour shopping, avoids hassle with sales people, fun and entertaining, more privacy than in-store shopping.
During the planning stage of an IMC program, a firm will identify the target audience, specify the advertising objectives, __________, select the right promotional tools, and design the promotion.
set the budget
integrated marketing communications (IMC)
the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences. -a key element in a company's customer experience management strategy.
Awareness
the consumer's ability to recognize and remember the product or brand name.
Trial
the consumer's actual first purchase and use of the product or brand.
Evaluation
the consumer's appraisal of the product or brand on important attributes.
response
the impact the message had on the receiver's knowledge, attitudes, or behaviors.
Which of the following is NOT an extraneous factor that can work against effective communication?
the message is considered too ordinary
Decoding
the process of having the receiver take a set of symbols, the message, and transform the symbols back to an idea. -performed by the receivers according to their own frame of reference: their attitudes, values, and beliefs. -essential to communication.
Encoding
the process of having the sender transform an idea into a set of symbols. -essential to communication.
strategic marketing process
the promotion decision process is divided into (1) developing (2) executing (3) assessing the promotion program
The two promotional strategies used by a manufacturer to assist in moving a product through the channel of distribution are known as
the push strategy and the pull strategy
feedback
the sender's interpretation of the response and indicates whether the message was decoded and understood as intended.
hierarchy of effects
the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action -
personal selling
the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. Unlike advertising, personal selling is usually face-to-face communication between the sender and receiver. -include face-to-face, telephone, and interactive electronic communication. uses customized interaction between a seller and a prospective buyer ADVANTAGES-control whom the presentation is made, reducing the amount of wasted coverage, seller can see or hear the potential buyer's reaction to the message. DISADVANTAGE-flexibility of personal selling
Adoption
through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand.
Growth stage
to persuade the consumer to buy the product. Advertising is used to communicate brand differences, and personal selling is used to solidify the channel of distribution.
channel of communication
-The message is conveyed by means of a -salesperson, advertising media, or public relations tools
All you can afford budgeting
-allows money to be spent on promotion only after all other budget items—such as manufacturing costs—are covered. -Common to many businesses
Direct marketing
-has many forms and utilizes a variety of media -direct mail and catalogs, television home shopping, telemarketing, and direct selling -E-mail has become the most popular form of direct marketing. -Indicator-level of use
nonpersonal
-mass media (such as TV, radio, and magazines), which are nonpersonal and do not have an immediate feedback loop as does personal selling.
Objective and task budgeting
-the company (1) determines its promotion objectives, (2) outlines the tasks to accomplish those objectives, and (3) determines the promotion cost of performing those tasks. -The best approach to budgeting
communication
-the process of conveying a message to others and it requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.