Textbook Notes (368,856)
Canada (162,212)
Commerce (596)
COMM 131 (63)
Chapter 12

Comm131 - Chapter 12 Notes.docx

9 Pages
Unlock Document

COMM 131
Jacob Brower

Marketing Chapter 12: Advertising and Public Relations March 5, 2013 The Promotion Mix - Promotion Mix/Marketing Communications Mix: Specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships Advertising: Any paid for of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (mass media – television, radio, internet) Sales Promotion: Short-term incentives to encourage the purchase or sale of a product or service (discounts, rebates, coupons, contests, displays) Personal Selling: Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships (sales presentations, trade shows, incentive programs) Public Relations (PR): Building good relations with the company’s various publics by obtaining favourable publicity, building a good corporate image, and handling or heading off unfavorable rumors, stories, and events (press releases, sponsorships, special events) Direct Marketing: Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships (catalogues, websites, direct mail, mobile marketing) Integrated Marketing Communications - Mass Marketing: Selling highly standardized products to masses of consumers New Marketing Communications Landscape - Factors changing today’s marketing communications:  Consumers - Better informed and more communications empowered - Use the internet to research on their own - Easily connect with other consumers to exchange brand-related information and to create their own marketing messages  Marketing Strategies - Shifting away from mass marketing - Developing focused marketing programs to build customer relationships - Improvements in technology speed the movement to segmented marketing - Amass detailed customer information, keep track of customers needs, tailor offerings to narrowly defined groups  Communications Technology - Changes the way companies and customers communicate - On-demand television, satellite radio, downloading music, wireless networks, smartphones, social networking - Give companies exciting new media to interact with consumers - Give consumers more control over the nature and timing of messages Shifting Marketing Communications Model - Companies are doing less broadcasting and more narrowcasting - Mass media costs are rising, audiences are shrinking, ad clutter is increase, viewers are gaining control of message exposure through technology - Companies are able to reach smaller groups of consumers in more interactive ways - New model will consist of a shifting mix of traditional mass media and new, more personalized media - Challenge is to bridge the “media divide” that separates traditional creative media approaches to new interactive and digital ones Need for Integrated Marketing Communications - In the consumer’s mind, messages from different media and promotional approaches all become part of a single message about the company - Conflicting messages can confuse company images, brand positions, and customer relationships - Integrated Marketing Communications (IMC): Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products - IMC recognizes all touch points where the public may encounter the brand - IMC ties together all of the company’s messages and images Shaping the Promotion Mix Nature of Promotion Tools - Each promotion tool has unique characteristics and costs  Advertising - Reach masses of geographically dispersed buyers at low cost - Enables seller to repeat a message many times - Large-scale advertising says something positive about the seller’s size, popularity, and success - Consumers view advertised products are more legitimate - Expressive – allows company to dramatize its products through artful use of visuals, print, sound, and colour - Impersonal, cannot be as directly persuasive as salespeople - One-way communication  Personal Selling - Most effective tool for building up buyers’ preferences, convictions, and actions - Most common promotional tool for B2B marketers - Involves long-term personal interaction between decision makers from customer organization and sales representatives from the vendor - Focuses on developing customer relationships - Buyer feels a greater need to listen and respond  Sales Promotion - Coupons, rebates, contests, discounts, sales offers, etc. - Designed to attract consumer attention, offer strong incentives to purchase, dramatize product offers, encourage trial, boost sagging sales - Invite and reward quick response - Effects are often short-lived and not as effective as advertising or personal selling in building brand preference or customer relationships  Public Relations - Very believable; seem more real - Reach prospects who avoid advertisements and sales people - The message gets to the buyer as “news” rather than sales-directed communication  Direct Marketing 1. Less Public: The message is normally directed to an individual 2. Immediate: Messages can be prepared quickly 3. Customized: Messages are tailored to appeal to specific customers 4. Interactive: Allows for dialogue between marketers and consumer Promotional Mix Strategies - Push Strategy: a promotion strategy that calls for using the sales force and trade promotion to push the product through channels; the producer promotes the product to channel members who promote it to final consumers (B2B markets use push more) - Pull Strategy: a promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel (B2C markets use pull more) Advertising Setting Advertising Objectives - Advertising Objective: a specific communication task to be accomplished with a specific target audience during a specific period of time - Classified by primary purpose – to inform, persuade, or remind  Informative Advertising - Use when introducing a new product or brand - Objective is to build demand by communicating the product’s benefits - Educational purpose (ie. iPhone)  Persuasive Advertising - Important as competition increases - Objective is to build selective demand (persuade consumers that your product has more benefits than competitors)  Comparative Advertising - Company compares its brand with one or more other brands - ie. Mac vs. PC commercial - Often indirect – suggests a comparison to another brand without naming it  Reminder Advertising - Important for mature products - Helps maintain customer relationships and keep customers thinking about the product Setting Advertising Budget - Advertising Budget: the dollars and other resources allocated to a product or company advertising program 1. Affordable Method - Setting advertising budget at the level management thinks the company can afford - Small businesses - Ignores effects of advertising on sales - Places promotion last among spending priorities 2. Percentage-of-Sales Method - Setting promotion budget at a certain percentage of current or forecasted sales, or as a percentage of the unit sales price - Simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit - Wrongly views sales as a cause of promotion rather than result - Based on availability of funds rather than opportunities 3. Competitive-Parity Method - Setting promotion budget to match competitors’ outlays - Monitor competitors advertising - Competitor’s budgets represent the collective wisdom of the industry - Spending what competitors spend helps prevent promotion wars 4. Objective and Task Method - Company sets advertising budget based on what it wants to accomplish - Developing the advertising budget by: 1. Defining specific promotion objectives 2. Determining the tasks needed to achieve these objectives 3. Estimating the costs of performing these tasks - Sum of these costs is the advertising budget - Forces management to spell out relationship between dollars spent and promotion resu
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.