BUS 343 Chapter Notes - Chapter 12: Alternative Media, Product Placement, Geico Advertising Campaigns

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BUS 343 - Chapter 12 Notes: Marketing Communications
THE PROMOTION MIX
Promotion Mix/Marketing Communications Mix - the specific blend of promotion tools that
the company uses to persuasively communicate customer value and build customer relationships
5 major promotion tools:
- 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 product or
a service
- Personal Selling - personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships
- Public Relations (PR) - building good relations with the company’s various publics by
obtaining favourable publicity, building up a good corporate image, and handling or
heading off unfavourable rumours, stories, and events
- Direct Marketing - direct connections with carefully targeted individual consumers to
both obtain an immediate response and cultivate lasting customer relationships
- Each category involves specific promotional tools
- The entire marketing mix - promotion, product, price, and place must be coordinated for
greatest communication impact
INTEGRATED MARKETING MIX
- Large companies invest millions/billions on mass-media advertising
The New Marketing Communications Model
- Consumers are changing - they are better informed and more communications
empowered
- Rather than relying on marketer-supplied information, they can seek out information on
their own
- They even create their own marketing messages
- Marketing Strategies are changing - focused marketing programs are designed to build
closer relationships with customers in narrowly defined micromarkets instead of having
mass marketing
- Communications technology - causing remarkable changes in the ways in which
companies and customers communicate with each other (smartphones, ipads)
- Less broadcasting, more narrowcasting - more specialized and highly-targeted media to
reach smaller customer segments with more personalized, interactive messages
- There are predictions that old mass-media communications model will eventually become
obsolete; costs are rising, audiences and shrinking
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- Increasingly, some programs, ads, and videos are being produced only for internet
viewing
- But right now, mass media still captures a large portion of the promotion budgets
- Gradual blending of new and traditional media
The Need for Integrated Marketing Communications
- Conflicting messages from these different sources can result in confused company
images, brand positionings, and customer relationship
- Often, companies fail to integrate their various communications channels
- 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
- Each brand contact will deliver a message, whether good, bad, or indifferent
- The company’s goal should be to deliver a consistent and positive message to each
contact
- A marketing communications director has the responsibility for the company’s
communication efforts - creates better consistency
SHAPING THE OVERALL PROMOTION MIX
The Nature of Each Promotion Tool
Advertising
- can reach masses of geographically dispersed buyers at a low cost per exposure; repeat
messages many time
- Consumers tend to view advertised products as more legitimate
- Very expressive - can dramatize
- Can use it to build up up a long-term image, but can also trigger quick sales
- Downsides: it can be impersonal, not directly persuasiveness, one-way communication,
can be very costly
Personal Selling
- building up buyers’ preferences, convictions, and actions
- personal interaction
- can make quick adjustments to personalize
- Downsides: sales force requires a longer-term commitment; can’t just fire people; also
most expensive
Sales Promotion
- Attract consumer attention, offer strong incentives to purchase
- Downsides: short-lived, not as effective as advertising or personal selling in building
long-run brand preference and customer relationships
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Public Relations
- It’s believable - more real to readers than advertisements
- It tends to be underused
Direct Marketing
- Less public - directed at specific persons
- Immediate and customized - messages can be prepared very quickly and can be tailored to
appeal to specific consumers
- Interactive - allows a dialogue between marketing team and consumer
Promotion Mix Strategies
- Push or pull 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 in turn promote it to final consumers
- 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
- Most large companies use a combination of both
ADVERTISING
- A wide range of non-profit organizations, professionals, and social agencies also use
advertising to promote their causes
- Advertising is a good way to inform and persuade, whether the purpose is to sell or to
encourage people in a developing nation to use birth control
Setting Advertising Objectives
- Advertising objective - a specific communication task to be accomplished with a
specific target audience during a specific period of time
- Aim is to inform, persuade, or remind
- Informative advertising - used heavily when introducing new-product category; build
demand
- Persuasive advertising - more important as competition increases; build selective demand
- Comparative advertising (attack advertising) - company directly or indirectly
compares its brand with one or more other brands; can lead to ad wars
- Reminder advertising - for mature products; help maintain customer relationships and
keep consumers thinking about the product
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Document Summary

Bus 343 - chapter 12 notes: marketing communications. Promotion mix/marketing communications mix - the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. 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 product or a service. Personal selling - personal presentation by the firm"s sales force for the purpose of making sales and building customer relationships. Public relations (pr) - building good relations with the company"s various publics by obtaining favourable publicity, building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events. Direct marketing - direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. The entire marketing mix - promotion, product, price, and place must be coordinated for greatest communication impact.

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