Marketing chp. 14

elements of the promotion mix

advertising, sales promotion, public relations, personal selling, direct marketing


any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response

factors affecting promotional mix

-nature of the product
-product life cycle
-target market characteristics
-type of buying decision
-funds available
-pull or push strategy

control continuum

-amount of control the marketer has over the message getting out to customers
advertising--> sales promotion--> personal selling--> public relations--> word of mouth

hierarchy of effects

sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action

hierarchy of effects when getting customers to adopt our product

-awareness: consumer's ability to recognize and remember the product (nation wide paint ad, Orvis dog)
-interest: increase in consumer's desire to learn about some features of the product
-evaluation: consumer's appraisal of the brand on important attribu

consumer touch points

used to designate when, where, and how a customer or prospective buyer comes in contact with a brand or brand message

integrated marketing communications (IMC)

-concept of designing marketing communications programs that coordinate all the promotional activities (advertising, personal selling, sales promotion, PR, and direct marketing) to provide a consistent message across all audiences
-plan for optimal use of

characteristics of IMC program

-begins with customer
-creates a single unified voice
-seeks to develop relationships
-involves 2 way communication
-measures results based on actual feedback


-conveying the message to others
-6 elements: source, message, channel of communication, receiver, encoding, decoding
-field of experience between sender and receiver must exist for effectiveness (a similar understanding and knowledge to apply to the mess

communication process

-shift from one way to customer-controlled, customized, many-to-many communication

customer generated media

social media--> easier for consumers to connect with one another--> big impact

paid media

advertising, personal selling, direct marketing, sales promotions

earned media

PR/publicity model

owned media

brands publish own content to maximize brand value


process of having a sender transform an idea into a set of symbols


-having the receiver take a set of symbols, the message, and transform the symbols into an idea
-performed by receivers

feedback loop

-response: impact the message had on the receiver's knowledge, attitude, and behavior
-feedback: sender's interpretation of the response and indicates whether the message was decoded and understood as intended
-pretesting ensures that messages are decoded


extraneous factors that can work against effective communication by distorting a message of the feedback received (simple error (typo), misunderstanding of a message (accents, slang, anything that makes hearing difficult)


-paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
-involves mass media (TV, radio...) which are nonpersonal and do not have an immediate feedback loop
-can be attention getting and communicat

personal selling

-2-way flow of communication between a buyer and seller designed to influence a one's purchase decision
-usually face-to-face between buyer and seller
-can control to whom (reducing amount of wasted coverage/people not in target market)
-seller can see bu

public relations

-seeks to influence the feelings, opinions, or beliefs held by publics about a company and its product/services
-tools include special events, lobbying, annual reports, press conferences, social media, image management, publicity
-usually credible; works


nonpersonal, indirectly paid presentation of an organization, product, or service--> INDIRECTLY PAID (attempts to get the medium to run favorable story)

sales promotion

-short-term inducement of value offered to arouse interest in buying a product or service
-used in conjunction with advertising or personal selling
-offered to intermediaries and ultimate consumers
-ex: coupons, rebates, samples, contests, sweepstakes

direct marketing

-uses direct communication with consumers to generate a response in the form of an order, a request for further info, or a visit to a retail outlet
-ex: face-to-face selling, direct mail, catalogs, telephone solicitations, direct response ads, online

promotional mix at introduction stage

-primary promotional objective: provide info to consumers to increase their level of awareness
-all promotional mix elements are used here
-ex: publicity in magazines, ads, salesforce calling intermediaries, promos in form of free samples

promotional mix at growth stage

-primary promotional objective: persuade the consumer to buy the product
-advertising is used to communicate brand differences
-personal selling is used to solidify the channel of distribution
-ex: personal selling to intermediaries, ads to differentiate

promotional mix at maturity stage

-primary promotional objective: maintain existing buyers (remind)
-advertising is used to remind buyers of products existence
-sales promotion is used to maintain loyal buyers in the form of discounts, coupons, and events
-ex: limited personal selling, di

promotional mix at decline stage

-primary promotional objective: phase out period for product
-little money is spent on promotional mix

what are marketers trying to accomplish through promotion?

1) inform prospective buyers about the benefits of the product
2) persuade them to ry it
3) remind them later about the benefits they enjoyed by using the product
4) build relationships

push strategy

-manufacturers directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product
-mainly personal selling and sales promos directed to intermediaries
-get channel members to push product to their customers

pull strategy

-manufacturers send communications directly to end customer
-customer has demand (asks retailer for product)
-mainly advertising directed to consumers
-manufacturer promotes to customer, who requests from retailer, who demands from wholesaler, who demands

many companies use...

both pull and push strategies

planning stage of IMC program

-identify target audience (same as that of the product)
-specify objectives (hierarchy of effects)
-set budget]
-select the right promotional tools
-design the promotion
-schedule the promotion

process of developing an IMC program

-planning: developing the promotion program
-implementation: execute the promotion program
-evaluation: assess the promotion program

implementation stage of IMC program

-pretest the promotion
-carry out the promotion

evaluation stage of IMC program

-posttest the promotion
-make needed changes

behavioral targeting

collecting info about your web-browsing behavior to determine the banner and display ads that you will see as you surf the web

methods to setting promotion budget

-percentage of sales
-competitive parity (matching that of competitors)
-all you can afford (after all costs have been covered)
-objective and task--> best method (determine promotion objectives, outline tasks to accomplish objectives, determine cost of p

reason for growth of direct marketing

-increasing interest in CRM
-ability to customize communication efforts an create one-to-one interactions is appealing
-has increased with availability of customer info databases and new printing technologies

technological, global, ethical concerns in direct marketing

-opt in and opt out (consumers must give permission to be included on list for solicitations and can opt out too)
-mail, telephone, and internet systems may not be as developed as in the US
-availability of credit/credit cards varies throughout the world

direct marketing and CRM

-more personalized communications (insurance company knows its me when I call from cell)
-companies sending you catalogs based on interests and past transactions, and customizing coupons inside (addressing them to specific customers)