Promotional Mix
combination of one or more communication tools including advertising, personal selling, sales promotion, public relations, and direct marketing.
Integrated Marketing Communications (IMC)
The concept of designing marketing communications programs that coordinates all promotional activities to provide a consistent message across all audiences.
Communication
process of conveying a message to others and it requires six elements:
Source, Message, Channel of Communication, a Receiver, and the Processes of Encoding and Decoding.
Source
A company or person who has information to convey
Message
The information sent by a source
Example: The information about a new cellphone
Channel of Communication
The salesperson, advertising media, or public relation tools that are used to convey messages.
Receivers
Consumers who read, hear, or see the message
Encoding
process of having the sender transform an idea into a set of symbols
Decoding
The process of having the receiver take a set of symbols, the message, and transform the symbols back to an idea.
Field of Experience
a similar understanding and knowledge they apply to the message. In order for the message to be communicated effectively, the sender and receiver must have a mutually shared Field of Experience.
Feedback Loop
Consists of a response and feedback
Response
the impact the message had on the receiver's knowledge, attitudes, or behaviors.
Feedback
the sender's interpretation of the response and indicates whether the message was decoded and understood as intended.
Pretesting
ensures that messages are decoded properly
Noise
extraneous factors that can work against effective communication by distorting a message or the feedback received.
Example: printing mistake in the newspaper that affects the meaning of an advertisement.
Advertising
Any PAID form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
Personal Selling
two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision.
Public Relations
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
Publicity
a nonpersonal, indirectly paid presentation of an organization, good, or service.
Sales Promotion
A short term inducement of value offered to arouse interest in buying a good or service
Direct Marketing
uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
Complexity
the technical sophistication of the product and hence the amount of understanding required to use it.
Risk
buyer's financial risk, social risk, and physical risk.
Ancillary Services
pertain to the degree of service or support required after the sale.
Prepurchase Stage
advertising is more helpful than personal selling. Advertising informs the potential buyer of the existence of a product and the seller. Sales promotions in the form of free samples also can play an important role to gain low-risk trial.
Purchase Stage
The importance of personal selling is at its highest whereas the impact of advertising is lowest. Sales promotion in the form of coupons, rebates, deals, displays can be very helpful in encouraging demand.
Postpurchase Stage
Salesperson is still important. The more personal contact after the sale, the most the buyer is satisfied. Advertising is still important to insure that the right decision was made. It also helps reduce postpurchase anxiety. Sales promotions such as coupo
Push Strategy
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
Pull Strategy
Directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
Hierarchy of Effects
Sequence of stages a prospective buyer goes through from initial awareness of a product to eventful action
5 Stages:
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
Awareness
the consumer's ability to recognize and remember the product or brand name
Interest
an increase in the consumer's desire to learn about some of the features of the product or brand
Evaluation
the consumer's appraisal of the product or brand on important attributes.
Trial
The consumer's actual first purchase and use of the product or brand
Adoption
through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand.
Percentage of Sales Budgeting
funds are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
Competitive parity budgeting
matching the competitor's absolute level of spending or the proportion per point of market share.
All-You-Can-Afford Budgeting
money is allocated to promotion only after all other budget items are covered.
Objective and task budgeting
the company (1) determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and (3) determines the promotion cost of performing these tasks.
Direct Orders
result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Lead Generation
the result of an offer designed to generate interest in a product or service and a request for additional information.
Traffic Generation
the outcome of an offer designed to motivate people to visit a business.