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COMM 131 (63)
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Week 9
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Department
Commerce
Course
COMM 131
Professor
Ethan Pancer
Semester
Winter

Description
Week 9 Notes Chapter 12 1. ThePromotional Mix  Promotional Mix (marketing Communications Mix): blend of promotional tools the company uses to persuasively communicate customer value and build customer relationships  Advertising: paid, non-personal promotion of ideas, or goods by an identifies sponsor  Sales Promotion: short-term incentives to encourage sales  Personal Selling: personal presentation by sales force to make sales and build customer relationships  Public Relations (PR): building good relationships with the public by obtaining favourable publicity, building good corporate image, and handling unfavourable rumours, stories, and events  Direct Marketing: direct connections with carefully targeted individuals to obtain immediate response and cultivate lasting customer relationship 2. IntegratedMarketing Communications New Marketing Communications Landscape  Consumers are more informed and connecting with each other online to share their opinions  Marketing Strategies are moving away from mass marketing and towards custom-tailored marketing  Communications Technology has expanded with many new media tools to reach consumers on Shifting Market Communications Model  Companies doing less broadcasting and more narrowcasting (ex. Social media sites)  Moving away from traditional media, and towards more targeted, cost-effective, interactive, and engaging media (especially digital)  Although new forms are taking root, old forms of advertising still account for majority of promotions The Need for Integrated Marketing Communications  All forms of media a firm uses must have the same theme because the customer doesn’t distinguish between segments, to them its all the same  Integrated Marketing Communications (IMC): integrating and coordinating all communication channels to deliver a clear, consistent, and compelling message  Firms now hiring marketing communications director who can assure one message across all platforms The Nature of Each Promotional Tool  Advertising reaches large masses of geographically dispersed individuals at a low cost per exposure o TV has the widest range, reaching millions o TV commercials legitimize brands, establish them o Very expressive with colour, sound, actions o May trigger quick sales (deals) o Impersonal, no incentive to respond o TV ads require large budgets  Personal Selling extremely effective, convinces buyers, and is most common tool in B2B o Develops relationships with clients o Compelled to respond, even if it’s “no thank you” o Required long-term commitment o Extremely high cost  Sales Promotion assorted tools like coupons, rebates, contests, discounts, limited time offers o Attracts attention, offer purchase incentives, dramatize product, encourage trial, or boots sagging sales o Creates quick response, but ineffective at creating lasting customer relationships  Public Relations (PR) believable communications about brand, from news stories, features, sponsorships, and events o Reaches people who normally avoid advertisements o Should be used in combination with other efforts  Direct Marketing includes direct mail catalogues, online marketing, telephone marketing – all less public o Immediate and customized o Interactive, providing different responses based on customer feedback Promotional Mix Strategies  Push Strategy: uses sales force and trade promotion to push the product to channel members, who then promote to final consumers  Pull Strategy: spending a lot on advertising and consumer promotion to induce final consumer to buy the product, creating demand vacuum that “pulls” the product through the channel  Pull strategies are better at creating lasting customer relationships  Chosen mix strategies depend on type of product/market and product life-cycle stage  Business-to-consumer firms normally “pull”  Business-to-business firms normally “push” Chapter 13 1. Personal Selling The Nature of Personal Selling  Personal Selling: personal presentation by firm’s sales force to make sales and build customer relationship  Salespeople stereotype is wrong, the best salespeople put the customer first, are extremely good at building one-on- one relationships, and focus on finding suitable solutions for their customers  Salesperson: individual representing a company to customers by prospecting, communicating, selling, servicing, information getting, and relationship building o Positions include order takers like department store salespeople, or order getters who use creative selling and relationship building The Role of the Sales Force  Useful in complex selling situations to adapt an offer for a particular customer  Represent the company to the customer by approaching and presenting, answering questions, negotiating  Represent customers to the company talking with company and communicating customer needs and feedback  Often, customers view the salesperson as an extension of the company, so building solid relationships become even more crucial  Marketing and sales, which should work together, are often at discords, blaming each other  To help the two departments connect; o Increase communications, sit in on each other’s meetings to help understand each other o Joint assignments, coming together to create plans o Marketing-sales liaison, people in marketing who ‘live with sales force’ o Chief revenue/customer officer, high level marketing executive who looks over both marketing and sales 4. Sales Promotion  Sales Promotion: short-term incentives to encourage the purchase of a sale of a product or service  Sales promotions typically correspond with an event, and must be planned in advance  Works best in conjuncture with another element from the mix, like direct selling (flyers for sales, mailed to you) or on advertisements Rapid Growth of Sales Promotions  Used by most organizations, accounts for around 74% of marketing expenditures  Sales promotions have expanded because they are effective sales-boosting tools in the short-term, can differentiate from competitors, replace declining advertising (rising costs), and because consumers are more deal oriented Sales Promotion Objectives  Consumer Promotions: to urge short-term buying  Trade Promotions: convince to carry new items, buy ahead, or use more shelf space  Sales Force: getting more support or new accounts  Loyalty programs are a good way to use promotional sales to increase short-term sales while creating lasting customer relationships  Promotional sales can also be used to develop a relationship; “share your story and win a trip!” Major Sales Promotion Tools  Consumer Promotions: boosts customer short-term buying and enhances long-term customer relationships o Samples: most effective, but most expensive o Coupons: because of clutter, normal coupon redemption rates are down, but mobile rates are up o Rebates (cash refunds): where price reduction occurs after purchase, normally used on big-ticket items o Price Packs: bundle pricing o Premiums: extras included with regular purchase, advertising specialties/promotional products are giveaways with brand name/logo (free T-shirts) o Point of Purchase (POP) Displays o Contests and Sweepstakes o Event Marketing: creating a brand-marketing even or serving as a sole or participating sponsor of events created by others  Trade Promotions: persuades resellers to carry a brand, give it shelf space, promote it in ads, and push it to consumers o Contest, premiums, and displays may be used as trade promotions too o Straight discount o Allowances, like paying a certain amount for marketing o Free goods like extra cases of merchandise
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