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The promotional element consists of communications tools, including: (5)
- advertising
- personal selling
- public relations
- sales promotion
- direct marketing
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A combination of 1 or more of the promotional elements is called:
promotional mix
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the process of conveying a message to others
communication
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communication consists of 6 elements:
- a source
- a message
- a channel of communication
- a receiver
- encoding
- decoding
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a message is conveyed by a means of a:
channel of communication
i.e. - salesperson, advertising media, etc
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the process of having the sender transform an idea into a set of symbols
encoding
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the process of having the receiver take a set of symbols, the message, and transform them into an idea
decoding
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what is needed for a message to be communicated effectively
a mutually shared field of experience between the sender and receiver
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The sender's interpretation of the response and indicates whether the message was decoded and understood is:
feedback
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extraneous factors that can work against effective communication by distorting a message or the feedback received is
noise
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3 promotional elements often used in mass selling
- advertising
- sales promotion
- public relations
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any paid form of nonpersonal communication about an organization, good, service, or idea
advertising
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does mass media advertising (TV, radio, magazing) provide an immediate feedback loop?
NO
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the two-way flow of communication between a buyer and seller, to influence a purchase decision
personal selling
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Usually face to face communication between the sender and receiver
B. personal selling
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advantages to personal selling
- can conrol to whom the presentation is made, reducing wasted coverage
- the seller can see or hear the buyers reaction and modify the message
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disadvantages of personal selling
- the flexibility, different salespeople can change the message
- the high cost -- generally the most expensive
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communication management that seeks to influence the feelings, opinions or beliefs held by customers
public relations
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a nonpersonal, indirectly paid persentation of an organization, good, or service
publicity
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advantage of publicity
credibility
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disadvantage of publicity
- lack of the users control
- could be bad publicity
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a short-term inducement of value offered to arouse interest in buying a good or service
sales promotion
(coupons, rebates, samples)
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advantage of sales promotion
short term nature, stimulates sales for their duration
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disadvantage of sales promotion
- advertising support is needed
- if conducted continuously, they lose effectiveness
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uses direct communication with consumers to generate a response in the form of an order, or a visit to a retail outlet
direct marketing
(face to face, direct mail, catalogs)
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advantage of direct marketing
being customized to match the needs of specific target markets
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has been one of the fastest-growing forms of promotion
A. direct marketing
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disadvantage of direct marketing
- requires a comprehensive and up-to-date database with info about the target market
- can be expensive and time consuming
- growing concerns about privacy
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a combination of one ore more of the promotional tools
promotional mix
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promotional tools used in the introduction stage of a products life cycle
all the promotional mix elements are used to raise awareness
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promotional tools used in growth stage of a products life cycle
advertising and personal selling
persuade customers to buy product
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promotional tools used in the maturity stage
advertising and sales promotion
to maintain existing buyers
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directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
A. push strategy
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directing its promotional mix at ultimate consumers to encourage them to ask the retailer for the product
A. pull strategy
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the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action
hierarchy of effects
- -awareness
- -interest
- -evaluation
- -trial
- -adoption
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methods used to set the promotion budget
- percentage of sales - use past sales to decide amount to spend
- competitive parity - matching a competitors absolute level of spending
- all you can afford - money spent only after all other costs are covered
- objetive and task - (the best approach) determines objectives, outlines tasks, determines costs to perform tasks
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the most popular form of direct marketing
A. direct mail
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the result of offers that contain all of the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
A. direct orders
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the outcome of an offer designed to motivate people to visit a business
A. traffic generation
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challnges faced by direct marketing
- some countries have mandatory "opt-ins"
- not all countries mail, phone, and internet are as well developed as the U.S.
- payment
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