Chapter 18 Notes


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  • Decoding is dependent on a person’s frame of reference. For the message to be conveyed properly, the sender and receiver must have a mutually shared field or experience—similar understanding and knowledge. (Different Cultures) Feedback: Was the message decoded correctly. (Pretesting) Noise : Extraneous factors that can work against effective communication by distorting a message or the feedback received.
  • Promotional Mix: One or more of the promotional elements a company chooses to use. Advertising: Television, radio, newspaper Personal Selling: retail, business to business Public Relations: events, annual reports, services, press releases. Sales Promotion: coupons, rebates, samples, sweepstakes Direct Marketing: direct mail, catalogs, telephone solicitation,
  • The balance of items must be determined. Must coordinate a consistent program. Integrated Marketing Communication: (IMC) everything and every department needs to work together.
  • Chapter 18 Notes

    1. 1. Integrated Marketing Communications and Direct Marketing Chapter 18
    2. 2. The Communication Process <ul><li>Requires Six Elements: a source, a message, a channel of communication, a receiver, and a process of encoding and decoding. </li></ul>
    3. 3. Promotional Mix <ul><li>Advertising: paid, nonpersonal communication </li></ul><ul><li>Personal Selling: the two-way flow of communication between a buyer and seller </li></ul><ul><li>Public Relations: a form of communication that seeks to influence the feelings and opinions of customers and stakeholders </li></ul><ul><li>Sales Promotion: a short-term inducement of value offered to arouse interest in buying. </li></ul><ul><li>Direct Marketing: uses direct communication with consumers to generate a response </li></ul>
    4. 4. Promotional Mix
    5. 5. Promotional Mix Considerations <ul><li>Promotional Mix Decisions are based on: </li></ul><ul><ul><ul><li>The Target Audience </li></ul></ul></ul><ul><ul><ul><li>The Product Life Cycle </li></ul></ul></ul><ul><ul><ul><li>Product Characteristics </li></ul></ul></ul><ul><ul><ul><li>Stages in the Buying Decision </li></ul></ul></ul><ul><ul><ul><li>Channel Strategies </li></ul></ul></ul>
    6. 6. Developing the Promotional Program <ul><li>Who is the target audience? </li></ul><ul><li>What are (1) the promotional objectives, (2) the amount of money that can be budgeted, and (3) the kinds of promotion to use? </li></ul><ul><li>Where should the promotion be run? </li></ul><ul><li>When should the promotion be run? </li></ul>
    7. 7. Identify the Target Audience <ul><li>The group of prospective buyers toward which a promotion program is directed. </li></ul><ul><ul><li>What is your target market’s lifestyle attitudes, and values? </li></ul></ul>
    8. 8. Specify Promotional Objectives <ul><li>Awareness: The consumer’s ability to recognize and remember the product or brand name. </li></ul><ul><li>Interest: An increase in the consumer’s desire to learn about some of the features of the product or brand. </li></ul><ul><li>Evaluation: The consumer’s appraisal of the product or brand on important attributes. </li></ul><ul><li>Encouraging Trial: The consumer’s actual first purchase and use of the product or brand. </li></ul><ul><li>Build Loyalty: the consumer’s repeated purchase and use of the product or brand. </li></ul>
    9. 9. Setting Promotional Budget <ul><li>Percentage of Sales: funds are allocated to promotion as a percentage of past or anticipated sales. </li></ul><ul><li>Competitive Parity: matching competitor’s absolute level of spending. </li></ul><ul><li>All You Can Afford: money is allocated only after all other money is allocated. </li></ul><ul><li>Objective and Task: the company determines objectives, outlines the tasks to accomplish, determines the promotional costs of performing tasks. </li></ul>
    10. 10. Where and When? Evaluation <ul><li>Scheduling the Promotion: </li></ul><ul><li>Evaluation: </li></ul><ul><ul><li>Pretests and Postests </li></ul></ul>
    11. 11. Direct Marketing <ul><li>Forms: direct mail and catalogs, television, telemarketing, direct selling, direct response advertising, online marketing. </li></ul><ul><li>Growth: Technology has helped Direct Marketing grow. </li></ul>
    12. 12. The Value of Direct Marketing <ul><li>Direct Marketing Responses </li></ul><ul><ul><li>Direct Orders: the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase. </li></ul></ul><ul><ul><li>Lead Generation: the result of an offer designed to generate interest in a product and request additional information. </li></ul></ul><ul><ul><li>Traffic Generation: the result of an offer designed to motivate people to visit a business. </li></ul></ul>
    13. 13. Tech, Global, and Ethical Issues <ul><li>Technology: </li></ul><ul><ul><li>Databases make it easer to target customers. </li></ul></ul><ul><ul><li>Optical Scanners make collecting data less obtrusive. </li></ul></ul><ul><li>Global: </li></ul><ul><ul><li>Direct Marketing systems are less developed in other countries due to lack of communication channels and payment methods. </li></ul></ul><ul><li>Ethics: </li></ul><ul><ul><li>privacy, annoyance, spam </li></ul></ul>