CH 13

Factors that make the message source credible:

- Expertise: the degree to which the communicator appears to have the authority needed to back the claim - Trustworthiness: how objective and honest the source appears to be - Likability: how attractive the source is to the audience

Characteristics of 5 promotion mix

- advertising - sales promotion - personal selling - public relations - direct marketing

4 Promotion budget methods

1) affordable method 2) percentage of sales method 3) competitive parity method 4) objective and task method

6 steps in developing effective communication

1) identifying the target audience 2) determining the communication objective 3) designing the message 4) selecting communication channels 5) selecting message source 6) collecting feedback

5 major decisions in advertising

1) objective setting 2) budget decisions 3) message decisions 4) media decisions 5) campaign evaluation

Sales Promotion

• An assortment of tools, coupons, contests, cents-off deals, premiums, etc. • They attract consumer attention and provide info that may lead the consumer to buy the product Says "buy it now" vs. advertising's "buy our product" • Used to create a stronger and quicker response • Its effects are usually short lived and are not effective in building long run brand preference

Media decisions

• Deciding on reach, frequency, and impact • Choosing among major media types • Selecting specific media vehicles • Deciding on media timing

Message decisions

• No matter how big the budget, advertising can succeed only of advertisements gain attention and communicate well • To gain and hold attention, advertising messages must be better planned, more imaginative, more entertaining, and more emotionally engaged

Public Relations

• One advantage is believability • News stories, features, and events seem more real and believable to readers than do ads • Can dramatize a company or product

Advertising

• Product is standard and legitimate • Allows seller to repeat a message many times • Can be used to build a long-term image for a product and also stimulate quick sales • Can reach masses of geographically dispersed buyers at a low cost per exposure • Advertising is impersonal and can't be persuasive as a company salesperson • Only one-way communication with the audience • Can be costly

Objective setting

• Should be based on info about the target market, positioning, and marketing mix • Advertising can be classified by their aim: - Informative advertising - Persuasive advertising - Reminder advertising

Immediate & customized direct marketing

prepared very quickly and tailored to appeal specific consumers

Infomercial

A hybrid between advertising and public relations • Companies provide stories on videotape for use on television during periods of light viewing • Provide enough info to keep the attention of viewers, combined with a "soft" approach to product or brand advertising

Direct Marketing

Carefully targets individual consumers to both obtain and immediate response and cultivate lasting customer relationships: the use of direct mail, telephone, direct-response television, email, Internet, etc.

Collecting feedback

Communicator must research its effect on the target audience. Involves asking the target audience: - Whether they remember the message - How many times they saw it - What points they recall - How they felt about the message - Their past and present attitudes toward the product and company Also like to measure behavior resulting from the message: - How many people bought a product, talked to others about it, or visited the store

Campaign evaluation

Measure: • Sales effect • Awareness effect • Communication effect

Selecting communication channels

Personal communication channel: 2 or more people communicate directly with each other face to face, on the phone, mail or email, internet chat Nonpersonal communication channels: Include media, atmospheres, and events

Promotion budget methods: Affordable method

Setting a promotion budget at what they think the company can afford

Promotion budget methods: Percentage of sales method

Setting their promotion budget at a certain percentage of current or forecasted sales, or they budget a percentage of the sales price

Promotion budget methods: Competitive parity method

Setting their promotion budgets to match competitors' outlays

Designing the message

Should get attention, hold interest, arouse desire, and obtain action Must solve three problems: - What to say (message content) - How to say it (message structure) - How to say it symbolically (message format)

Selecting message source

The message's impact on the audience is also affected by how the audience views the sender

Promotion budget methods: Objective and task method

The most logical budget setting method Develop their promotion budgets by: (a) defining specific objectives (b) determining tasks that must be performed to achieve these objectives (c) estimating the costs of performing them

Budget decisions

The role of advertising is to affect demand for a product Company wants to spend the amount needed to achieve the sales goal 4 commonly used methods for setting promotional budget are also used when determining the advertising budget • stage in the product life cycle • competition and clutter • advertising frequency • product differentiation

Frequency

a measure of how many times the average person in the target market is exposed to the message

Reach

a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

Determining the communication objective

a. Once a target audience has been identified, the marketing communicator must decide what response is sought b. In most cases the final response is purchase, but purchase is the result of a long process of consumer decision making

Identifying the target audience

a. The target audience heavily affects the communicator's decision on what will be said, how it will be said, when it will be said, where it will be said, and who will say it b. Managers need to understand their target markets before they can communicate with them

Interactive direct marketing

allows a dialogue between marketing team and the consumer

Nonpublic direct marketing

directed to a specific person

Personal Selling

• The most effective tool at certain stages of the buying process, particularly in building buyer preference, conviction, and purchase • Involves personal interaction between two or more people, allowing each to observe the other's needs and characteristics and make quick adjustments • The effective salesperson keeps the customer's interests at heart to build a long-term relationship • A sales force requires a longer-term company commitment than advertising • Personal selling is the company's most expensive promotion tool