Promotions Management (Ch 1-4)

six core elements

- advertising - direct marketing - sales promotion - publicity/PR - personal selling - interactive marketing

receiver/comprehension

- can the receiver comprehend the ad? - marketers must know their target market to make their messages clear and understandable - the more marketers know about the target market, the more they see which words, symbols and expressions their customers understand

promotions management

- coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services pr promote an idea - communication occurs across the marketing mix, BUT most of an organization's communications with the marketplace take place as part of a carefully planned and controlled promotional program

consumer oriented sales promotions

- couponing - sampling - premiums - rebates - sweepstakes - point-of-purchase materials

promotional program situational analysis -- external analysis

- customer behavior analysis - market segmentation and target marketing - market positioning

**considerations about FCB grid

- grid positions reported are averages for product categories - consumers can respond to brands as well as product categories - consumers can be clustered based on how they evaluate a purchase decision

trade oriented sales promotions

- price deals - sales contests - trade shows

promotional program situational analysis -- internal analysis elements

- promotions department capabilities - ability to implement promotional program with internal resources - agency evaluation and selection

channel/presentation

- which media will increase presentation? - the important point is how well a media vehicle reaches the marketer's target audience

source/attention

- who will be effective in getting consumers attention? - marketers deal with the volume of ads/getting lost by using sources who will attract the target audience's attention--actors, athletes, rock stars, or models

communication objective pruposes

1. facilitate communication and coordination--well documented, approved objectives guide the actions of all parties involved and serve as a common base for all issues related to the promotional program and the intended outcome(s) of its execution 2. guide development of the IMC plan--all phases of a firm's promotional strategy and tactics should be based on the established objectives, including creative, and media decisions as well as direct-marketing, PR/publicity, and/or sales promotion 3. determine metrics for measurement and evaluation--benchmarks against whether the success or failure of the promotional campaign to determine what the marketing communication efforts accomplished--should demonstrate a Return on Investment whenever possible

FCB grid

Foote, Cone, and Belding Grid -- an advertising planning model -- this addresses (1) why do people buy products (2) how important are these producers to people? (3) are people paying attention to your messages

similarity

Resemblance between the source and recipient of the message

message

a communication containing information or meaning that a source wants to convey to a receiver

IMC plan

a document that that provides the framework for developing, implementing, and controlling an organization's IMC program -- elements of this plan includes: situation analysis (E-level), promotional program situation analysis, communication objectives, communication strategies and tactics, financial and operational plan, metrics and control

direct source

a spokesperson who delivers a message and/or endorses a product or service

slice-of-life commercials

advertiser starts by showing an event or predicament that consumers often see/experience -- this establishes a bond of similarity

direct marketing

allows organizations to communicate directly with target customers to generate a response and or a transaction -- database management -- direct selling -- telemarketing -- direct-response advertising (mail, online, broadcast, print media)

situation analysis (marcom)

an account of where the company (or the brand) has been, its current position in the market, where it intends to go, and how the 'promotions' element of the four Ps can help drive it there -- the base of this information will be contained in the marketing plan -- elements of it: 1. examination of the overall marketing plan and objectives. 2. role of 'promotions' within the plan. 3. competitive analysis. 4. environmental influences

likability

an affection for the source as a result of physical appearance, behavior, or other personal traits

advertising

any paid form of non-personal communication about an organization, product, service, or idea by an intended sponsor -- cost effective way to reach large numbers -- ideal for brand building -- B2B advertising is done primarily in business magazines and trade publications for advertising

applying trustworthiness

audience has to believe the source -- finding celebrities trustworthy is always difficult -- trustworthy sources often hesitate to endorse a product because of potential impact on reputation and image

applying similarity

communicator and receiver should have similar needs, goals, interest, and lifestyles for the message to be best understood -- this is also created when the consumer feels empathy for the person in the commercial

applying expertise

companies use many techniques to convey a source's expertise -- sales personnel are trained in the product line, which increases customer's perception of their expertise -- spokespeople are also chosen because of their knowledge, expertise, and experience in a particular product or service area

message appeals

comparative, fear, and humor

E poll market research

conduct ongoing consumer surveys to gauge the popularity and marketability of celebrities by surveying consumers and having them rate celebrities on 46 personal attributes -- this is then published each year which includes a spokesperson index

financial operational plans

details how much the IMC plan will cost -- how the money will be allocated across different media, geographic markets, resources, partnerships, and time periods -- the amount the plan allocates the marketing communications should be sustained by an anticipated return on investment

comparative appeal

directly or indirectly naming competitors -- became popular after FTC began advocating its use in 1972 -- useful for new brands to establish themselves -- used by brands with small market place

indirect source

doesn't actually deliver a message but draws attention to and/or enhances the appearance of the ad

fear appeals

evokes an emotional response and arouse individuals to take steps to remove the threat -- some stress physical dangers if actions aren't taken and other threaten disapproval or social rejection

2. affective (feeler)

feeling and high involvement - based on psychological (self esteem, ego based) - highly involved feeling--purchase requires reflection first, ego and self esteem push the buy - hierarchy of effects: feel, learn, do - strategy: form connections, classical conditioning, emphasis on emotions, impact, large space, and image based

4. self-satisfaction (reactor)

feeling and low involvement - sensory gratification--low level emotional satisfaction - social model, peer orientation - low involvement thinking--purchase of pleasure products driven by quick personnel or peer-led satisfaction - hierarchy of effects: do, feel, learn - strategy: attention, emphasize personal satisfaction, social interaction, place at point of purchase

persuasion matrix

helps marketers see how each controllable elements interacts with the consumer's response process

destination

included because the initial message recipient may pass on information to others, such as friends or associates

source attractiveness

includes similarity, familiarity, and likability

credibility

infleunces recipient's attitude/bahvior through internalization

power

influences through compliance

attractiveness

influences through identification

internalization

information from a credible source influences beliefs, opinions, attitudes, and/or behavior through a process known as internalization, which occurs when the receiver adopts the opinion of the credible communicator since he or she believes information from this source is accurate

familiarity

knowledge of the source through exposure

source attributes

marketers try to select individuals whose traits will maximize message influence -- Herbet Kelman developed three basic categories of source attributes (credibility, attractiveness, power)

sales promotion

marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales -- it's consumer oriented (targets the end user) -- also it's trade oriented (targets intermediates)

promotion

marketing communications used to make the offer known to prospective customers and persuade them to move forward on accepting the offer

metrics and controls

monitoring, evaluating, and controlling the promotional program -- determine how well the IMC program is meeting communication objectives and helping the firm accomplish its overall marketing goals and objectives -- using sales as a metric doesn't account for profit margin-plus it could be a bad product which isn't the marketers fault

publicity/PR

non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship -- usually comes in the form of a news story, editorial, or announcement - including: press releases, press conferences, feature articles, photographs, films, or video news releases

source factors

person involved in communicating a marketing message--directly or indirectly

personal selling

person-to-person communication in which a seller attempts to assist and or persuade prospective buyers to purchase the company's product or service or to act on an idea -- one on one interaction gives the marketer flexibility to modify their message according to feedback from the prospective buyer

identification

receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior -- unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system----the receiver may maintain the attitudinal decision or behavior only as long as it is supported by the source or the source remains attractive

marketing defined

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

independent variables

the controllable components of the communication process

integrated marketing communication (IMC)

the coordination and integration of all marketing communication tools, avenues, and sources in a company into a seamless program designed to maximize the impact on customers and other stockholders -- covers all of a firm's business to business, marketing channel, customer focused and internally directed communications

source credibility

the extent to which the recipient sees the source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information -- two important dimensions: expertise and trustworthiness

communication objectives

the guiding force for development of the overall marketing communications strategy and the objectives for each promotional-mix area -- details what the IMC intends to accomplish, stated in terms of the nature of the message to be communicated or what specific communication effects are the be achieved -- this may include creating awareness or knowledge about a product and its attributes or benefits, creating an image, or developing favorable attitudes, preferences, or purchase intentions -- elements include: 1. analyze receivers response process. 2. analyze source, message, and channel factors. 3. establish communication goals and objectives

channel

the method or medium by which communication travels from a sender to a receiver

receiver

the person or persons wit whom the sender of a message shares thoughts or information

communication strategies and tactics

the plan of execution -- a detailed description of how, when and where the company will effectively communicate with consumers in its target markets to reach its marketing objectives -- this is the most involved and detailed step of the promotional planning process -- decisions have to be made regarding the role and importance of each element of the promotional mix and how they coordinate with one another -- elements include: 1. for each tool in the promotional mix you set objectives, determine budget, craft a message, and develop strategy. 2. create a calendar for the timing of every part of the plan

compliance

the receiver accepts the persuasive influence of the source in hopes of obtaining a favorable reaction -- receiver may show public agreement but may not have internal commitment to the position -- this may be superficial and might only last as long as perceived control lasts

source

the sender, person, group or organization of the message

promotional program situational analysis

the state of promotions focuses on the factors that influence, or are relevant to the development of a promotional strategy -- it includes an external analysis of the market and an internal analysis of the firms product/service offerings and its capabilities

dependent variables

the steps a receiver goes through in being persuaded--message presentation, attention, comprehension, yielding, retention, behavior

1. informative (thinker)

thinking and high involvement - based on economic or rational person - solving problems - highly involved thinking--purchase requires info first - hierarchy of effects: think, feel, do - strategy: information based, demonstration, long copy

3. habit formation (doer)

thinking and low involvement - operant conditioning (learning by doing, habitual behavior, reminder) low involvement thinking--purchase of practical goods based on routine/habit - hierarchy of effects: do, learn, feel - instrumental conditioning: behavior, consequences, likelihood of behavior inc or dec - strategy: creative and reinforce habits, remind consumers, place at point of purchase, radio ads

interactive marketing

two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time -- includes: interactive storytelling, personalized content, calculators, online quizzes, games, search, apps

humor appeals

usually best known and remembered

message/yielding

what type of message will create favorable attitudes or feelings?

source power

when the source can actually administer rewards and punishments -- this can only happen if the source is perceived as being able to administer positive or negative sanctions to the receiver (perceived control) and the receiver must think the source cares whether the receiver conforms (perceived concern)