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Chapter 12

COMM 131 Chapter Notes - Chapter 12: Mentos, Mobile Marketing, Investor Relations

Course Code
COMM 131
Ethan Pancer

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Chapter 12: Communicating Customer Value: Advertising and Public Relations
The Promotional Mix
Also called the marketing communications mix, it consists of the specific blend of
promotion tools that the company uses to persuasively communicate customer value
Advertising: Any paid form of non-personal presentation and promotion of ideas, goods,
or services by an identified sponsor
Sales Promotion: Short-term incentives to encourage the purchase or sale of a p/s
Personal Selling: Personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships
Public Relations: Building good relations with the org’s various publics by obtaining
favourable publicity, building up good corporate image, & heading off unwanted rumors
Direct Marketing: Direct connection with carefully targeted individual consumers to both
obtain an immediate response and cultivate lasting customer relationships
Integrated Marketing Communications
The New Marketing Communications Landscape
Consumers are changing better informed (internet reviews), more empowered
Marketing strategies are changing building focused marketing programs designed to
build closer relationships with consumers in more narrowly defined micro-markets
o Marketers can track customer needs and tailor offers directly to those needs
Changes in communication technology are causing changes in the ways that companies
and customers communicate with each other
o On demand TV, wireless and cellular networks, social networking, and
smartphones give companies new media for interacting with customers
The Shifting Marketing Communications Model
The new digital media gave birth to a new marketing communications model
o Using more-specialized and highly targeted media to reach smaller market
segments with more personalized interactive messages
o Social Media marketing, Mobile marketing, and RSS Feeds
The dominance of TV, magazines, and other mass media is declining, but still important
The Need for Integrated Marketing Communications
To a consumer, messages from different media and promotional approaches all become
part of a single message about the company
o Conflicting messages from different sources can result in confused company
images, brand positions, and customer relationships
IMC: Carefully integrating and coordinating the company’s many communication
channels to deliver a clear, consistent, and compelling message about the org and it p’s
Each contact point will deliver a message, it must be consistent and positive message

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Shaping the Overall Promotional Mix
The Nature of Each Promotional Tool
Can reach masses of geographically dispersed buyers at a low-cost per exposure and
enables the seller to repeat a message many times
Because of advertising is public, customers view advertised products as more legitimate
Since advertising is expressive, it allows the company to dramatize its products through
visuals, print, sound, and colour and can be used to build up a long-term brand image
Although it reaches people quickly, it is impersonal and cannot be as directly persuasive,
it also only carries one-way communication and can be very costly
Personal Selling
Focuses on developing relationships with customers & attempting to solve their problems
o Long term personal interaction
The sales force required for personal selling is very costly and the personal selling
process is very long and time consuming
Sales Promotion
Promotions including coupons, rebates, contests, discounts, etc. designed to:
o Attract customer attention, offer strong incentives to purchase, dramatize product
offers, encourage trial, or boost sagging sales quick response, not long-term
Public Relations
A very believable message that gets to the buyers as “news” rather than as a sales
directed communication ex. News stories, sponsorships, events
Can also dramatize a company of product very economical, usually little/no cost
Direct Marketing
Many forms direct mail and catalogues, online marketing, telephone marketing, etc.
Less public the messages is more marketed toward an individual
Immediate and customized messages can be prepared quickly and can be tailored to
appeal specific consumers
Interactive it follows a dialogue between the marketing team and the consumer, and
messages can be altered based on consumers’ responses
Promotion Mix Strategies
Push Strategy: A promotion strategy that calls for using a sales force and trade promotion
to push the product through channels
o Producers promote to channel members, who then promote to final consumers
Pull Strategy: A promotion strategy that calls for spending a lot on advertising and
consumer promotion to induce final customers to buy the product
o Creates a demand vacuum that “pulls” the product through the channel
Most businesses use a combination of the two strategies
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