31 terms

Marketing: Chapter 18 - IMC & Direct Marketing

Promotional Mix
The mix of the following:
1. Advertising
2. Personal Selling
3. Sales Promotion
4. Public Relations
5. Direct Marketing
Why Use the Promotional Mix
1. Inform Prospective Buyers
2. Persuade them to try
3. Remind them of the benefits
Integrated Marketing Communications
The concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.
The process of conveying a message to others.
Six Parts to Communication
1. Source
2. Message
3. Channel of Communication
4. Receiver
5. Encoding
6. Decoding
A company or person who has information to convey.
The information sent by a source.
Channel of Communication
The way the message is conveyed. Person, media, or public relations.
The consumers who read, hear, or see the message.
The process of having the sender transform an idea into a set of symbols.
The process of having the receiver take a set of symbols, the message, and transform the symbols back to an idea. Receivers own frame of reference: attitudes, values, and beliefs.
Field of Experience
A similar understanding and knowledge applied to a message.
The impact the message had on the receiver's knowledge, attitudes, or behaviors.
The sender's interpretation of the response and indicates whether the message was decoded and understood as intended.
Extraneous factors that can work against effective communication by distorting a message or the feedback received.
Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
Personal Selling
The two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision.
Wasted Coverage
Communication with consumers who are not in the target audience.
Public Relations
The form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers about a company and its products or services.
A nonpersonal, indirectly paid presentation of an organization, good, or service.
Sales Promotion
A short-term inducement of value offered to arouse interest in buying a good or service.
Direct Marketing
Using 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.
Developing the Target Audience
1. Determine the Balance of the Elements
2. Coordinate the Promotional Effort
3. Assess Target Audience Characteristics
The Four W's
1. Who is the Target Audience?
2. What are the Objectives, Budget, and Tools?
3. Where should the Promotion be Run?
4. When should the Promotion be Run?
Promotion During the Product Life Cycle
Introduction - Advertising and Sales Promotion of free samples
Growth - Personal Selling and Advertising to differentiate
Maturity - Reminder Advertising, Sales Promotion of Discounts & Coupons, Direct-Mail
Decline - Little money spent on advertising
Stages of the Buying Decision
1. Prepurchase Stage - informing potential customer of product
2. Purchase Stage - things done in the store to facilitate purchase
3. Postpurchase Stage - to assure the buyer the right purchase was made
Channel Strategies
1. Push Strategy
2. Pull Strategy
Push Strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
Pull Strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
Hierarchy of Effects
1. Awareness - recognize and remember product
2. Interest - increase in desire to learn
3. Evaluation - appraisal of product based on attributes
4. Trial - actual first purchase and use of product
5. Adoption - repeated purchase or use of product based on favorable experience
Setting the Promotional Budget
1. Percentage of Sales - x% of last year's sales
2. Competitive Parity - matching the competitor's level of spending
3. All You Can Afford - money allocated after all other budget items are covered
4. Objective and Task - Determine promo objectives, Outlines tasks, Determines cost