Textbook Notes (368,125)
Canada (161,663)
Commerce (596)
COMM 131 (63)

Week 9

5 Pages
Unlock Document

COMM 131
Ethan Pancer

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
More Less

Related notes for COMM 131

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.