Marketing Final Study Guide Essay

Chapter 11-Advertising, Integrated Marketing Communications, and the Changing Media Landscape 1. Integrated Marketing Communications (IMC) and the New Media Integrated Marketing Communications: Approach designed to deliver one consistent message to buyers across an organization’s promotions. TV, Radio, magazines, Internet, Phones Mobil Marketing: Marketing Media that is available in different places such as cell phones or on forms of transportation * Magazines, newspapers and televisions compete with internet, texting, mobile phones, blogs, YouTube, Facebook, and twitter. Out-of-home advertising: Billboards, moveable promotions that are displayed in a broad range of public spaces including tray tables on airplanes, the inside of subways, trains, buses, and even in bathroom stalls. * As the media landscape changes, the money organizations spend on different types of communication will change as well 2. The Promotion (communication) mix Promotion or Communication Mix: Communication tools that may include advertising, sales, promotions, public relations and publicity, personal selling, and direct marketing. Advertising: A message that is paid for and sent to large groups of the population at one time with an identified organization or brand (product or service) being promoted * Advantages and disadvantages: Radio, magazines, newspapers are portable. Radios have many stations and are driving when listening. TV people get up or turn the station. Vehicle: the specific means, such as a particular magazine or a specific television show, within a medium to reach a selected target market. Personal Selling: An interactive, personal, paid promotional approach between a buyer and a seller. (e.g. interviewing for a job, pampered chef, Mary Kay) Public Relations (PR): The process of creating a positive image for a company, an offering, or a person via publicity. Sales promotion: Other forms of promotions (coupons, contests, rebates, mail-in-offers) not included as a component of a communication mix. Trade promotions: Sales promotions aimed at businesses in business-to-business marketing. (e.g. trade shows, sponsorships, event marketing, and special incentives given to retailers, such as extra money, in-store displays, and prizes to market particular products and services) Direct Marketing: Delivering personalized promotional materials directly to individual consumers. Materials may be delivered via mail, catalogs, Internet, e-mail, or telephone, or in person. * Benefits: ability to target a specific set of customers, measure the return on investment, and test different strategies before implementing to all targeted consumers. Disadvantage: Intrusive and many consumers ignore the attempts to reach them Telemarketing: A form of direct marketing that involves contacting people by phone. Do Not Call Registry: Established by the Federal Trade Commission (FTC) in 2008, the service prevents organizations from calling any phone numbers registered with the FTC Direct Mail: A form of direct marketing that is mailed to consumers. It can be personalized and ask consumers to make a certain response. Catalogs are often part of direct mail campaigns. Call to action: In direct marketing, requesting consumers to make a specific response such as a purchase or a call for more information. Direct Response Advertising: Direct marketing that includes an offer and a call to action (e.g. â€Å"Call now and receive a bonus package,† internet provides the preferred direct-response medium because it is less expensive.) 3. The Promotion Mix, Communication, and Buyers’ Perceptions. Factors that Influence Selection of Promotion Mix * Budget Available: the budget available to market a product determines what elements of the promotion mix are utilized. Affects a promotion’s reach and frequency. Reach: The number of people exposed to a message Frequency: How often people are exposed to a message * Stage in the product life cycle: affects the type and amount of the promotion used. Products in intro. stage needs more promotional dollars. * Type of product and type of purchase decision: technical- personal selling to understand features. Advertising used to sell convenience goods and routine purchase items since customers are familiar with the product. * Target Market Characteristics and consumers’ readiness to purchase: organizations must understand how ready different target markets are to make purchases * Consumers’ Preferences for various media: Research is done to find out how consumers want to be reached * Regulations, competitors, and environmental factors: regulations can affect the type of promotion used (e.g. In U.S. tobacco products can’t be advertised on TV) Strength of economy has an impact- weak economy organizations use sales promotions such as coupons (associated risk is consumers may start to expect coupons) * Availability of Media: Plan promotions based on media availability. Crisis or Disasters can cut TV promotion slots. * Push versus Pull strategy: Many manufactures use both strategies Push Strategy: A strategy in which businesses are the target of promotions to products get â€Å"pushed† through their marketing channels and sold to consumers. (e.g. displays in retail outlets for new products) Pull Strategy: A strategy in which consumers are targeted with sales promotions such as coupons, contests, games, rebates, mail-in offers. (e.g. manufacturer promotes on TV and places coupons in the newspaper causing wholesalers and retailers to buy their product to meet consumer demand) Encode: Senders must translate or convert benefits and value of a product or service into a message for the message channel selected. Decode: Receivers interpret messages. Interference (noise): Any distractions or noise that senders and receivers face during the transmission of a message. (e.g. poor reception, poor print quality, problems with a server, low battery) Feedback: Means of telling sellers you saw their information and wanted to try their product.