Chapter 9
Outline the Chapter.
As you read the chapter, make notes about each of the following:
 | Model of Communication |
| Promotional Mix |
| Advertising |
| Sales Promotion |
| Public Relations |
| Direct Marketing |
| Regulation of Promotional Activities |
Define each key
term you find.
Summarize each term in your own words. List the important points for each
term. Give a "real life" example of each term.
(hover your mouse over the word for a popup definition)
1. Define elements of the promotion mix.
| Personal selling is person-to-person communication in which a
seller informs and educates prospective customers and attempts to persuade them to
purchase the company's products or services. Advertising involves either mass communication via newspapers, magazines, radio, television, and other media (e.g., billboards, bus stop signs) or direct-to-consumer communication via direct mail. Publicity, like advertising, is non-personal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company that enjoys the publicity. Sales promotion consists of all marketing activities that attempt to stimulate quick buyer action, or, in other words, attempt to promote immediate sales of a product (thereby yielding the name sales promotion). Point-of-purchase communications include all signs—displays, posters, signs, shelf cards, and a variety of other visual materials—that are designed to influence buying decisions at the point of sale. Sponsorship marketing is the practice of promoting the interests of a company and its brands by associating the company with a specific event (e.g., a golf tournament) or a charitable cause (e.g., the Leukemia Society). |
2. Discuss the communication process.
| Communication takes place when understanding is achieved.
The sender encodes (thinks) the message and it is sent through media (oral, written,
nonverbal - print, broadcast) to the sender who decodes (puts meaning) the message. Noise
is any interference with understanding the communication. The hierarchy-of-effects illustrates the progress of marketing communications through awareness, interest, desire, action (AIDA). Face-to-face communication (as compared to mass communication) is the most successful since feedback is immediate. An example of face-to-face is personal selling. Marketing communications represent the collection of all elements in an organization's marketing mix that facilitate exchanges by establishing shared meaning with an organization's customers or clients. All marketing variables communicate with customers: the product itself communicates through its size, shape, brand name, and package design. Price communicates by suggesting savings, a deal, or indicating quality, luxury, and prestige. Retail outlets, and other aspects of distribution, also have significant communications value for consumers. |
3. Analyze the determinants of the promotion mix.
| The promotion mix is like a team consisting of players who bring different abilities to the team and perform different but mutually reinforcing roles. In order to optimize an organization's communications effort, a company must integrate all of its communications to customers. Integrated marketing communications, or IMC, can be thought of as the coordination of advertising, publicity, sales promotion, point-of-purchase communications, sponsorship marketing, and personal selling with each other and with other elements of a brand's marketing mix. |
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Ask:
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4. Define the promotion management process.
| Promotion management is the practice of coordinating the various
promotional mix elements and entails the following activities: (1) setting objectives for each of the promotional elements in terms of what they are intended to accomplish (e.g., increase brand awareness by 20%), (2) establishing budgets that are sufficient to support the objectives, (3) designing specific programs (e.g., advertising campaigns) to accomplish objectives, and (4) evaluating performance and taking corrective action when results are not in accordance with objectives. |
5. Define the advertising management process. (See the video "WB Doner & Co.)
| Advertising informs, persuades, reminds, adds value, and assists other company efforts. Advertising strategy entails objective setting, budgeting, message strategy, and media strategy. |
6. Discuss the various forms of budgeting for advertising.
| In order to employ the profit-maximization rule for budget setting, the
advertising decision maker must know the advertising-sales response function for every
brand for which a budgeting decision will be made. The two most pervasive heuristics in use by both industrial advertisers and consumer-goods advertisers are the percentage-of-sales and objective-and-task methods. |
7. Define effective techniques and tactics of advertising.
| Frequently employed techniques include: *Informational ads (such as automobile ads in the classified pages of a newspaper) *Humor (e.g., Little Caesar pizza ads) *Sex appeals (e.g., Calvin Klein ads) *Celebrity endorsements (e.g., Michael Jordan, Candice Bergman, or Shaquille O'Neal); *Various emotional appeals (e.g., nostalgia, romance, or excitement) *Animation (e.g., Levi commercials) The techniques used to persuasively advertise products are limited only by advertisers' creativity and ingenuity. Effective advertising satisfies the following considerations:
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8. Analyze the process of media selection.
| selecting the target audience |
| specifying media objectives |
| selecting media categories and vehicles |
| buying media |
9. Define public relations.
| Public relations (PR), is that aspect of promotion management uniquely suited to fostering goodwill between a company and its various publics. |
10. Discuss direct marketing communications. (See Lillian Vernon.)
| Direct marketing is one of the major growth areas in business. It includes direct-response, direct mail, telemarketing, direct selling, and database marketing. Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. Niche marketing can be fully realized by targeting promotional efforts to a company's best prospects (based on past product-category purchasing behavior), and who can be identified in terms of specific geographic, demographic, and psychographic characteristics. Growing numbers of marketers are making heavy investments in database marketing. |
11. Define sales promotion strategies.
| We define sales promotion as the use of any incentive by a manufacturer to induce the trade (wholesalers and retailers) or consumers to buy a brand and to encourage the sales force to aggressively sell it. The incentive is additional to the basic benefits provided by the brand and temporarily changes its perceived price or value. It includes consumer promotions and trade-oriented promotions. Sales promotion uses push-oriented strategy. |
12. Analyze point-of-purchase strategies.
| P-O-P items include various types of signs, mobiles, plaques, banners, shelf tapes, mechanical mannequins, lights, mirrors, plastic product reproductions, checkout units, full-line merchandisers, wall posters, motion displays, and other materials. Interactive displays are computerized units that allow consumers to ask and have questions answered pertaining to their product-category needs. The video merchandising center (VMC) displays and sells entire product lines through audio and video presentations. |
13. Discuss sponsorship marketing. (See MCI.)
| Sponsorships involve investments in events or causes for the purpose of achieving various corporate objectives: increasing sales volume, enhancing a company's reputation or a brand's image, increasing brand awareness, and so on. It includes events and cause-related. |
Answer the Discussion Questions.
- Recall to mind a popular consumer brand that is frequently advertised on television (e.g., Coke, Toyota, Gillette). What are the advertiser’s objectives for this costly and extensive promotion?
- An advertiser is dismayed when the message that a consumer receives from a carefully planned advertisement is entirely different from the advertiser’s intentions. What factors (noise) can lead to this undesirable outcome?
- Discuss methods that an advertiser can use to establish feedback for determining whether an advertising campaign is working effectively.
- A manufacturer of a popular washing detergent decided to change the emphasis of its promotional strategy from pull to push. What promotional mix changes should the manufacturer adopt? Develop two promotional mix budgets, using percentage figures only, showing the old-budget and the new budget.
- Marketers generally feel that money spent on advertising is an investment in the company and in company brands. Explain the value of advertising that leads marketers to this conclusion.
- The pink bunny campaign for Energizer batteries easily remembered by many consumers. What features of this campaign make it memorable?
- What interrelated activities must be accomplished to establish a successful media strategy?
- The marketing manager for Limited, Inc., a women’s clothing chain, has turned to an advertising campaign to bolster sagging store sales. What are the strengths and weaknesses of using television for this campaign?
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