Marketing Ch. 15

control continuum

(High to low) -Advertising: we ultimately get to give the yes or no for our message -Sales promotion: contests, different events and opportunities for attention -Personal selling: you can control what you say to customers but each message varies -Public relations: we don't know how the media will portray us -Word of mouth: customers have more faith in word of mouth b/c they believe those people have no reason to give false info

understand the hierarchy of effects concept

(Top-Bottom) -Awareness: consumer's ability to recognize and remember the product -Interest: increase in consumer's desire to learn about some features of the product -Evaluation: consumer's appraisal of the brand on important attributes -Trial: consumer's first purchase and use of the product -Adoption: through a favorable experience on first trial, the consumer's repeated purchase and use of the product

process of decoding

(reverse) the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea

What are marketers trying to accomplish through promotion (informing, persuading, reminding, and building relationships)?

-Informing (Publicity in magazines, Advertising, Salesforce promotion in form of free samples) -Persuading (Personal selling to intermediaries, Advertising to differentiate a product from competing brands) -Reminding (Reminder advertising, Sales promotion in form of discounts, coupons, and events, Limited personal selling, Direct-mail reminders) -Building Relationships (Little money spent on promotion)

understand how the promotion mix changes over the four life-cycle stages

-Introduction: to inform (publicity in magazines, advertising, salesforce calling on intermediaries, sales promotion in form of free samples) -Growth: to persuade (personal selling to intermediaries, advertising to differentiate a product from competing brands) -Maturity: to remind (reminder advertising, sales promotion in form of discounts, coupons, and events, limited personal selling, direct-mail reminders) -Decline: to phase out (little money spent on promotion)

understand the process of developing an IMC program

-Planning: developing the promotion program (identify the target audience, specify the objectives, set the budget, select the right promotional tools, design the promotion, schedule the promotion) -Implementation: executing the promotion program (pretest the promotion, carry out the promotion) -Evaluation: assessing the promotion program (posttest the promotion, make needed changes)

examples of hierarchy of effects concept

1. Nationwide Paint Ad: awareness, went viral, captures attention of people who see it, people begin to do research and hopefully adopt 2. Orvis (pet brand): pay to vote for dog cancer contest; money goes to charity rather than Orvis, but Orvis name gets spread as the cause gets supported

what are important characteristics of IMC?

Begins with the customer, Creates a single unified voice, Seeks to develop relationships, Involves 2-way communication, Generates a continuous stream of communication,Measures results based on actual feedback

ethical concerns in direct marketing

Both global and domestic markets face challenging ethical issues today · Concerns about privacy have led to various attempts to provide guidelines that balance consumer and business interests · There are more growing concerns about Web "tracking" tools used by direct marketers to segments consumers and match them with advertising

understand the communication process (and the components that comprise the process)

Communication is the process of conveying a message to others that requires six elements: source, message, channel of communication, receiver, process of encoding, process of decoding

what is integrated marketing communications (IMC)?

Designing marketing communications programs that coordinate all promotional activities to assure a consistent message at every contact point where a company meets the consumer · media advertising · personal selling · sales promotion · public relations · direct marketing · social media IMC is a plan for optimal use of the elements of promotion which is customer-focused

global concerns in direct marketing

Direct marketing faces several challenges and opportunities in global markets today · Many countries have requirements for a mandatory "opt-in" o Potential customers must give permission to be included on a list for direct marketing solicitations · Many countries do not have as developed mail, telephone, and internet systems as does the U.S. (The need for improved reliability and security in these countries has Slowed the growth of direct mail and Caused a dramatic growth of mobile phone penetration which in turn has created an opportunity for direct mobile marketing campaigns) · Payment is a main use for global direct marketers (Availability of credit cards and credit varies throughout the world which creates a need for alternatives such as cash on delivery, bank deposits, and online payment accounts)

technological concerns in direct marketing

Information technology and databases are key elements in any direct marketing program · Databases are the result of organizations' efforts to create profiles of customer's s that direct marketing tools, such as email and catalogs, can be directed at specific customers · Some data that are needed to use direct marketing include lifestyles, media use, and demographics · Other types of data are best collected from the businesses where the purchases are made include price, quantity, and brand · Many businesses are beginning to match their customer records with Facebook profiles, Twitter following behavior, and Google search activity

push example

Product Displays - manufacturer then sell to retailer who then are responsible for selling the products

What comprises the promotion P (promotion mix) of the marketing mix?

Promotion is any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response

consumer generated media

Social media makes it easier for consumers to connect with each other (have a bigger impact)

understand why direct marketing is growing so quickly

The increasing interest in customer relationship management is reflected in the dramatic growth of direct marketing · The ability to customize communication efforts and create one-to-one interactions is appealing to most marketers · Uses direct communication with consumer to generate a response in the form of an order, a request for further information, or a visit to a retail location. · Face-to-face (example: in-home parties), direct mail, catalogs, telephone, direct response advertising, and online communications · Fastest growing form of promotion.

paid media

advertising, personal selling, direct marketing, sales promotion

5 main elements to the promotion mix

advertising, sales promotion, public relations, personal selling, and direct marketing (social media is incorporated in all elements)

owned media

brands publish own context to maximize brand value

source

company or person who has info to convey

receiver

consumers who hear, see or read the message

pull example

iPhone X - Apple markets the phone to customers who then buy the phone from Verizon

message

info sent by the source

pull strategy

manufacturer promotes to consumer, consumer demands product from retailer, retailer demands product from wholesaler, wholesaler demands product from manufacturer (all steps are orders to manufacturer)

push strategy

manufacturer promotes to wholesaler, wholesaler promotes to retailer, retailer promotes to consumer, consumer buys from retailer (first 2 steps orders to manufacturer)

earned media

public relations/publicity model

channel of communication

salesperson, advertising media, PR tools

understand the importance of customer relationship management to direct marketing

the increasing interest in CRM is reflected in the dramatic growth of direct marketing. The ability to customize communication efforts and create one-to-one interactions is appealing to most marketers, particularly those with IMC programs, b/c it leads to more favorable attitudes from the recipients

process of encoding

the process of having the sender transform an idea into symbols

Public Relations

· A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services · Many tools are used to maintain a good image including: Special events, Lobbying efforts, Annual reports, Press conferences, Social media, Image management · Publicity - a nonpersonal, indirectly paid presentation of an organization, product or service (News story, editorial, or product announcement) · Advantage of publicity is credibility (Most effective when consumers lack prior knowledge of the product or service) · There is a lack of users control with publicity (No guarantee that the publicity will be positive)

Direct Marketing

· A promotional alternative that uses direct communication with customers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet · The communication can come in many forms: Face-to-face selling, Direct mail, Catalogs, Telephone solicitations, Direct response advertising, Online marketing · Consists of interactive communication · Has the means of being able to be customized to match the specific needs to target markets · Messages can be developed and adapted quickly to facilitate one-on-one relationships with customers · Has several disadvantages: Require a comprehensive and up-to-date database with information about the target market, Growing concern about privacy led to a decline in response rates among some customer groups

Sales Promotion

· A short-term inducement of value offered to arouse interest in buying a product or service (Examples: coupons, rebates, samples, contests, and sweepstakes) · Used in conjunction with advertising or personal selling · Advantages for sales promotions include short-term stimulation of sales for their duration · Sales normally drop after the sale or promotion ends (Advertising support is needed to convert the customer who tried the product because of sales into a long-term buyer) · Promotions will lose their value if they are used too much

advertising

· Any paid form of nonpersonal communication about and organization, product, service, or idea by an identified sponsor · Space for advertising normally must be bought, the only exception is a PSA which is donated · The target market must be able to actually see the medium chosen and that the message will be understood · Many advantages come along with advertisements: Attention-getting, Communicates specific product benefits to prospective buyers, A company can control what they say, when their ad airs and who sees their ad, Everyone gets the same message

personal selling

· The two-way flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision · Advantages to personal selling: Can control whom the presentation is made so only the target market gets communicated to, The seller can see or hear potential buyer's reactions to the message (If the reaction is unfavorable, then the salesperson can modify the message) · A disadvantage is flexibility (Each salesperson can change the message so there is not consistent communication to all customers) · Another disadvantage is the high cost (highest of the five elements)