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Ch 15 - 18

marketing communications

the means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about the products and brands they sell.

8 components of marketing communications mix

1. advertising
2. sales promotion
3. events and experiences
4. public relations and publicity
5. direct marketing
6. interactive marketing
7. word-of-mouth marketing
8. personal selling


any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

sales promotion

short-term incentives to encourage trial or purchase of a product or service.

events and experiences

company-sponsored activities and programs designed to create brand-related interactions

public relations and publicity

programs promoting or protecting company or product image

direct marketing

use of mail, telephone, fax, email, or internet to communicate directly with or solicit response or dialogue from specific customers or prospects.

interactive marketing

online activities and programs to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales.

word-of-mouth marketing

people-to-people oral, written, or electronic communications related to the merits or experiences of purchasing or using products or services.

personal selling

face-to-face interaction with prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

8 steps to developing effective communications

1. identify the target audience
2. determine the objectives
3. design the communications
4. select the channels
5. establish the budget
6. decide on the media mix
7. measure the results
8. manage integrated marketing communications

4 objectives for marketing communications

1. category need
2. brand awareness
3. brand attitude
4. brand purchase intention

3 items for designing communications

1. message strategy
2. creative strategy
3. message source

message strategy

search for appeals, themes, or ideas that tie into the brand positioning and help establish points-of-parity or points-of-difference.

creative strategy

how marketers translate their messages into a specific communication, can be classified as either informational appeal or transformational appeal.

informational appeal

elaborates on attributes or benefits

transformational appeal

elaborates on a nonproduct-related benefit or image

3 factors underlying source credibility

1. expertise
2. trustworthiness
3. likability

personal communications channels

let two or more persons communicate face-to-face, person-to-audience, over the telephone, or through e-mail.

nonpersonal communications channels

directed to more than one person and include media, sales promotions, events and experiences, and publicity.

4 common methods for deciding on a budget

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

integrated marketing communications

a concept of marketing communications planning that recognizes the added value of a comprehensive plan.


any paid form of nonpersonal presentation and promotional of ideas, goods, or services identified by a sponsor.

The 5 Ms

1. mission - what are the advertising objectives?
2. money - how much can be spent?
3. message - what message should be sent?
4. media - what media should be used?
5. measurement - how should the results be evaluated?

advertsing goal (or objective)

a specific communication task and achievement level to be accomplished with a specific audience in a specific period.

informative advertising

aims to create awareness and knowledge of new products or new features of existing products.

persuasive advertising

aims to create liking, reference, conviction, and purchase.

reminder advertising

aims to stimulate repeat purchase of products.

reinforcement advertising

seeks to convince current purchasers that they made the right choice.

5 factors to consider when setting an advertising budget

1. product life cycle stage
2. market share and consumer base
3. competition and clutter
4. advertising frequency
5. product substitutability

3 steps in developing an advertising campaign

1. message generation and evaluation
2. creative development and execution
3. social-responsibility review

5 steps in choosing media to carry message

1. deciding on reach, frequency and impact
2. choosing among media types
3. selecting specific media vehicles
4. deciding on media timing
5. deciding on geographical media allocation

media selection

finding the most cost-effective media to deliver the desired number and type of exposures to the target audience.


advantages: flexibility, timeliness, good local market coverage
disadvantages: short life, poor reproduction, small audience


advantages: combines sight, sound, and motion, appealing to senses
disadvantages: high cost

Four main variable for choosing among media types

1. target audience's media habits
2. product
3. message
4. cost

place advertising (out-of-home advertising)

a broad category including many creative and unexpected forms to grab consumers' attention where they work, play, and of course, shop.

effective audience

the number of people with target audience characteristics exposed to the vehicle

effective ad-exposed audience

the number of people with target audience characteristics who actually saw the ad.

macroscheduling problem

involves scheduling advertising in relation to seasons and the business cycle.

microscheduling problem

calls for allocating advertising expenditures within a short period to obtain maximum impact.

ad continuity

exposures appear evenly throughout a given period

ad concentration

calls for spending all advertising dollars in a single period, which makes sense for products with one selling season or holiday.

ad flighting

calls for advertising for a period, followed by a period with no advertising, followed by a second period of advertising activity. Useful when funding is limited, items are seasonal, or purchase cycle is relatively infrequent.

ad pulsing

continuous advertising at low-weight levels reinforced periodically by waves of heavier activity.

communication-effect research (copy testing)

seeks to determine whether an ad is communicating effectively. Can be pretested or posttested.

sales promotion

a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of a particular product or service by consumers or the trade.

public relations

includes a variety of programs to promote or protect a company's image or individual products.

5 functions performed by PR departments

1. press relations
2. product publicity
3. corporate communications
4. lobbying
5. counseling

marketing public relations (MPR)

support corporate or product promotion and image making


the task of securing editorial space, as opposed to paid space, in print and broadcast media to promote, a product, service, idea, place, person, or an organization.

3 major items for MPR

1. establishing the marketing objectives
2. choosing messages and vehicles
3. implementing and evaluating the plan

direct marketing

the use of consumer-direct channels to reach and deliver goods and services to customers without marketing middlemen

5 elements of a direct mail campaign

1. objectives
2. target markets and prospects
3. offer elements
4. testing elemnets
5. measuring success: lifetime value


a limited area on the web, managed and paid for by an external advertiser/company, designed to supplement a primary site.

buzz marketing

generates excitement, creates publicity,and conveys new relevant brand-related information through unexpected or even outrageous means.

viral marketing

another form of word-of-mouth that encourages consumers to pass along company-developed products and services or audio, video, or written information to other online.

6 positions of sales representatives

1. deliverer
2. order taker
3. missionary
4. technician
5. demand creator
6. solution inventor

6 major steps in effective selling

1. prospecting and qualifying
2. preapproach
3. presentation and demonstration
4. overcoming objections
5. closing
6. follow-up and maintenance

direct sales force

consists of full or part-time paid employees who work exclusively for the firm.

contractual sales force

consists of manufacturers reps, sales agents, and brokers who earn a commission based on sales.

5 step workload approach to sales force size

1. group customers into size classes by annual sales volume
2. establish call frequencies for each customer class
3. multiply the number of accounts in each class size by the call frequency to arrive at total workload
4. determine the average number of calls a sales rep can make per year
5. divide the total of annual calls made by a rep to see how many reps are needed.

global industry

competitors' strategic positions in major geographic or national markets are fundamentally affected by their overall global positions

global firm

operates in 2 or more countries and captures advantages not available to purely domestic competitors.

5 Major decisions in international marketing

1. deciding whether to go abroad
2. deciding which markets to enter
3. deciding how to enter the market
4. deciding on a marketing program
5. deciding on a marketing organization

5 modes of entry into foreign markets

1. indirect exporting
2. direct exporting
3. licensing
4. joint ventures
5. direct investment

standardized marketing mix

keeps costs low, allows for brand image consistency, and enables the firm to leverage ideas quickly and efficiently.

adapted marketing mix

where the marketing program is adjusted to each target market.

straight extension

introduces the product in the foreign market w/o any change, a successful strategy with cameras, consumer electronics, and many machine tools that can be costly in the long run.

product adaptation

alters the product to meet local conditions or preferences.

product invention

consists of creating something new, in one of two forms
1) backward invention - reintroducing earlier product forms that are well adapted to a foreign countries needs
2) forward invention - creating a new product to meet a need in another country

communication adaption

changing marketing communication programs for each local market

dual adaptation

if a company adapts both the product and the communications

price escalation problem

when a company sells abroad it must add the cost of transportation, tariffs, importer margin, wholesaler margin and retailer margin.

gray market

branded products are diverted from the normal or authorized distribution channels in the country of prodcut origin or across international borders.

country-of-origin perceptions

distinct attitudes and beliefs about brands or products from a particular country.

6 ways modern marketing deparments are organized

1. functional
2. geographic
3. product or brand management
4. market
5. matrix
6. global

marketing implementation

the process that turns marketing plans into action assignments and ensures that they accomplish the plan's stated objectives.

4 types of necessary marketing control

1. annual-plan control
2. profitability control
3. effiency control
4. strategic control

marketing audit

a comprehensive, systematic, independent, and periodic examination of a company's marketing environment, objectives, strategies, and activities to identify problems and opportunities and to recommend improvements.

6 components examined in a marketing audit

1. macroenvironment and task environment
2. marketing strategy
3. marketing organization
4. marketing systems
5. marketing productivity
6. marketing function

cause-related marketing

links the firms contributions to a designated cause with a customers engaging directly or indirectly in revenue-producing transactions with the firm.

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