Parts of the communication process
Sender, encoding, message, media, decoding, receiver, response, feedback, noise
How do the parts of the communication process translate into marketing promotions
For the message to be effective, the senders encoding process must mesh with the receivers decoding process
What must marketers understand to communicate with customers
Identify a target audience
determine the communication objectives
design a message
choose the media outlet to send the message
select the message source
collect feedback
Explain why the KFC ad on Walking dead could have been potentially troubling
if the ad is followed by the wrong thing or if it is seen at an inconvenient time, it can change the way people feel about the product or brand
5 main categories of the promotion mix
advertising
sales promotion
personal selling
public relations
direct and digital marketing
A part of the promotion mix that is non-personal presentation
advertising
A part of the promotion mix that is limited time offer on product
Sales promotion
A part of the promotion mix that is personal presentation of the firms sales force for the purpose of engaging customers marketing sales and building customer relations
Personal selling
A part of the promotion mix that building good relationships with the company customers
Public relations
A part of the promotion mix that is engaging directly with carefully targeted individual customers and consumer communities to obtain immediate response and build lasting customer relationships
Direct and Digital Marketing
Methods of promotion budgeting
Affordable
Percentage of sales
Competitive Parity
objective - and - task
Setting promotional budget at the level management thinks the company can afford
Affordable method
What are the deficiencies of the Affordable method of promotion budgeting
ignores the effects of promotion sales
places promotion last among spending priorities
leads to uncertain annual promotion budget which makes long term planning difficult
can result in overspending on advertising but more often under spending
Setting the promotion budget at a certain percentage of the the current or forecasted sales as a percentage of the unit sales price
percentage of sales method
setting promotion budget to match competitors outlays
Competitive parity method
Developing the promotion budget by
1. defining specific promotion activites
2. determining the tasks needed to achieve those obj
3. estimating the costs of performing these tasks
the sum of these is the purposed budget
objective- and - task method
Which promotion budgeting method is most representative of the marketing concept
Objective-and-task
Producer directs marketing activities toward channel member to introduce them to carry the product and promote it to final customers
Push strategy
What is an example of push strategy
John Deere don't advertise themselves they get Home Depot to
Producer directs its marketing activities toward final customers to induce them to buy the product
Pull strategy
What is an example of pull strategy
Old spice sold by retailers like CVS and Walmart not manufacturer themselves
Carefully integrating and coordinating the company many communication channels to deliver a clear, consistent, and compelling message about the organization and its products
Integrated Marketing Communication IMC
What are the two things that IMC helps a firm obtain
Clarity(Clear and consistent message)
Synergy(across their channels)
How is the overall use of promotion changing
-Customers are better informed ( we don't rely on marketer - applied info thanks to internet)
- marketing strategies are changing(shifting away From mass marketing to programs that build closer relationships
-advances in technology (changing how customers
What does advertising spending fluctuate with
overall economic growth
GDP
What does the fluctuation of advertising spending tell us about a firms view of it
As the economy moves, it changes how companies advertise
if the economy dips, companies withdraw ads
What is AIDA
Attention
Interest
Desire
Action
Do all advertisements have to have all of the AIDA parts to be good
No, but it has to have a call to action
using all parts of the AIDA helps make good advertising but doesn't need every part
What are the different types of advertising appeals
Rational
Moral
Emotional
SEX
Can you identify an appeal based on seeing an ad
usually
What happens if fear, humor, and sex appeals do not have a link with why someone buys a product
it won't encourage purchase within a short time frame afterward
What is reach
number of different people exposed to an ad
What is frequency
Average number of times a person is exposed to an ad
What is CPM
cost per 1000 impressions
how much were paying to reach 1000 people
How is CPM calculated
cost of ad/ audience size x 1000
Is a Super Bowl ad considered a good buy
yes, for large companies who can afford it
Why may the Super Bowl be considered a bad buy
Waste: number of people that your ad gets of that aren't in your target market
What is the percentage of advertising spending is generally considered wasted
about half 50%
marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience - with the objectives of driving profitable customer action
content marketing
impressions gained through paid media
Paid media
Impressions gained through media
owned media
Impressions gained through others media
Earned Media
What is inbound marketing
Earning a customers attention
What is outbound Marketing
traditional, finds customers and grabs their attention in a specific moment
Components of the Hubspot model
attract (strangers to visitors)
convert and engage (visitors to leads)
close (build trust) (leads to customers)
delight (customers to promoters)
A promotional strategy that encourages individuals to forward marketer-initiated messages to other via email social media websites
viral marketing
What kind of tie must viral marketing pass between in order to be successful
word of mouth/amount of people that are talking about the product or company
strong ties
What is STEPPS
Social currency
triggers
emotions
public
practical value
stories
(STEPPS) people care about how they look to others
strong ties have access to valuable info and makes you look like an insider
Social currency
(STEPPS) the extent your message gets tied to something periodically in a routine are more likely to share
Triggers
(STEPPS) extent that it produces some kind of emotion other than sadness
Emotions
(STEPPS)people have a public piece to it and catch on
Public
(STEPPS) extent that it will solve problems
Practical Value
(STEPPS) anecdotes ex Wendys twitter
Stories
Why didn't Starbucks have to advertise for their first 25 years of existence
Huge social currency
recognizable logo and cups
used all the STEPPS
Is there a difference between SMM and traditional advertising in terms of amount of mistakes
traditional advertising has less mistakes because of all the approvals it has to acquire
SMM has more mistakes
Why can't firms avoid SMM
because conversation has already started they can't stop it all they can do is help it or ignore it
Can you combine appeals
yes
can appeals such as fear sex humor go to far?
Sex can go to far some say you can take an appeal such has humor or fear too far bu this is not true
What is the bandwagon appeal
everyone else is buying this, you should too
What are the strengths and weaknesses of advertising
Pro: reach
Con: costly
What are the strengths and weaknesses of sales promotion
Pro: purchasing incentive
Con: bad for branding
What are the strengths and weaknesses of personal selling
Pro: customizable
Con: Costly
What are the strengths and weaknesses of direct digital
Pro: customizable
Con:low response
What are the strengths and weaknesses of public relations
Pro: credibility
Con: lack of control
what is breakage
revenue gained by retailers through unredeemed, expired or lost gift cards