Mgmt 105 - Ch 13: Promotion

Promotion

The coordination of a marketer’s communication efforts to influence attitudes or behavior.

Web 3.0

A progression of the Web in which artificial intelligence becomes ubiquitous, with everyday users gaining more power over their personal information.

Marketing communication roles

• Inform consumers about new goods and services

• Remind consumers to continue using certain brands

• Persuade consumers to choose one brand over others

• Build relationships with customers

Integrated marketing communication

A strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences.

Multichannel promotion strategy

A marketing communication strategy where marketers combine traditional advertising, sales promotion, and public relations activities with online buzz-building activities.

One-to-one model

A communication model where marketers speak to consumers and business customers individually.

• Examples include: database marketing, direct marketing, personal selling, and social media

Word-of-mouth communication

When consumers provide information about products to other consumers.

Communication process

The process whereby meaning is transferred from a source to a receiver.

One-to-many model

A communication model whereby a broacdaster sends a message to a veyry arge audience.

• Examples include advertising, sales promotion, and public relations.

Many-to-many model

A communication model that describes the social media revolution that allows almost everyone to engage in a constant conversation with almost everyone else@

• Examples include buzz building and social media.

Source

An organization or individual that sends a message.

• A company or individual

Encoding

The process of translating an idea into a form of communication that will convey meaning.

• Source encodes a message, has noise

Message

The communication in perceivable form that goes from a sender to a receiver.

• Encoded by source

• Advertising, public relations, sales promotion, web pages, etc

Medium

A communication vehicle through which a message is transmitted to a target audience,

• Decoded by receivers, has noise

• Magazines, newspapers, television, radio, Internet, etc

Receiver

The organization of individual that intercepts and interprets the message.

• Decodes the message in the medium

• Consumer, gatekeeper

Decoding

The process by which a receiver assigns meaning to the message.

• Has noise

Noise

Anything that interferes with effective communication.

• Competing messages, static, interference

Feedback

Receivers’ reactions to the message.

• Purchase data, product awareness, brand loyalty

Outbound marketing

Messages that come from the organization and are intended for those who have agreed to receive them.

Inbound marketing

Messages that come to the organization from others outside.

Ethical bribe

A fancy term for an opt-in incentive to join an email mailing list.

Promotion mix

The communication elements that the marketer controls.

• Elements such as advertising, sales promotion, public relations, personal selling, and direct marketing

Advertising

A part of the promotion mix, that is the most familiar and visible element of the promotion mix. It establishes and reinforces a distinctive brand identity.

Sales promotion

A part of the promotion mix, which include programs such as contests, sweepstakes, or other incentives that marketers design to build interest in or encourage purchase of a product.

Public relations

A part of the promotion mix that describes a variety of communication activities that seek to create and maintain a positive image of an organization and its products among various products.

Hierarchy of effects

A series of steps prospective customers move through, from initial awareness of a product to brand loyalty.

• From bottom to top: awareness, knowledge, desire, purchase, loyalty

Awareness

Repetitive advertising slogans and jingles, and publicity stunts.

• The bottom of the hierarchy of effects

Knowledge

Descriptive copy, brochures, infomercials, public relations, personal selling, and websites.

• Second to bottom tier of the hierarchy of effects

Desire

Status appeal, fear appeals, and celebrity endorsements.

• Middle tier of the hierarchy of effects

Purchase

Point-of-purchase displays, coupons, contests, and samples.

• Second highest tier of the hierarchy of effects

Loyalty

Mailing to users, licensed merchandise, and brand placement.

• Top tier of the hierarchy of effects

Developing the Marketing Communication: Step 1

Determine the total marketing communication budget.

• Percentage of sales method, competitive parity method, objective-task method

Developing the Marketing Communication: Step 2

Decide on a push or pull strategy.

• Push: market to channel members

• Pull: market to end user

Developing the Marketing Communication: Step 3

Allocate the budget to a specific promotion mix.

• Traditional, digital, and support media advertising, sales promotion, social media marketing, direct marketing, personal selling, and public relations

Top-down budgeting techniques

Allocation of the promotion budget based on management’s determination of the total amount to be devoted to marketing communication.

Percentage-of-sales method

A method for promotion budgeting that is based on a certain percentage of either last year’s sales or estimates of the present year’s sales.

Competitive-parity method

A promotion budgeting method in which an organization matches whatever competitors are spending.

Bottom-up budgeting techniques

Allocation of the promotion budgets based on identifying promotion goals and allocating enough money to accomplish them.

Objective-task method

A promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotion efforts it will take to meet these goals.

Push strategy

The company tries to move its products through the channel by convincing channel members to offer and communicate about them.

• A decision made in the second step of budgeting

Pull strategy

The company tries to move its products through the channel by building desire for the products among consumers, thus convincing retailers to respond to this demand by stocking these items.

• A decision made in the second step of budgeting

TV Everywhere/authenticated streaming

The use of an Internet-enabled device, like a TV, tablet, or smartphone, to stream content from a cable or satellite provider.

Institutional advertising

Advertising messages that promote the activities, personality, or point of view of an organization or company.

Corporate advertising

Advertising that promotes the company as a whole instead of a firm’s individual products.

Advocacy advertising

A type of public service advertising where an organization seeks to influence public opinion on an issue because it has some stake in the outcome.

Purpose pandering

Occurs when brands are disingenuous in their promotion and support of social issues in that their efforts are not consistent with the brand image or organizational mission.

Public service advertisements

Advertising run by the media for not-for-profit organizations or to champion a particular cause without charge.

Retail and local advertising

Advertising that informs consumers about store hours, location, and products that are available or on sale.

Advertising campaign

A coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time.

Full-service agency

An agency that provides most or all of the services needed to mount a campaign.

• Includes research, creating of ad copy and art, media selection, and production of the final messages.

Limited-service agency

An agency that provides one or more specialized services, such as media buying or creative development.

Interactive/digital agency

A limited-service agency that provides a variety of services for digital marketing.

• Includes the creation of websites, design and implementation of SEO strategies, creation of articles for online publications, and creation of online email and social media strategies.

In-house agency

A company team that handles that company’s marketing activities using an agency model.

Programmatic advertising/ad buying

The use of algorithms and software to buy digital advertising, thus providing greater efficiency, control, and cost savings.

Account executive

A member of the account management department who supervises the day-to-day activities of the account and is the primary liaison between the agency and the client.

Account planner

A member of the account management department who combines research and account strategy to act as the voice of the consumer in creating effective advertising.

• Should become intimately familiar with the consumer and to translate what customers are looking for to the creative teams who create the ads

Creative services

The agency people who dream up and produce the ads.

• Include the creative director, copywriters, and art director

Research and marketing services

The advertising agency department that collects and analyzes information that will help the account executive develop a sensible strategy and assist creatives in getting consumer reactions to different versions of ads.

Media planner

Agency personnel who determine which communication vehicles are the most effective and efficient to deliver the ad.

Drip pricing

The illegal practice of advertising one price and then, by the time the sale is completed, presenting a total on which additional hidden fees have “dripped.”

Corrective advertising

Advertising that clarifies or qualifies previous deceptive advertising claims.

Puffery

Claims made in advertising of product superiority that cannot be proven true or untrue.

Greenwashing

A practice in which companies promote their products as environmentally friendly when in truth the brand provides little ecological benefit.

Pinkwashing

A practice in which companies promote their products or themselves as LGBTQ+ advocates or promote breast cancer awareness without making a positive contribution to breast cancer research or cessation.

Cultural consultants

Professionals who ensure the authentic and respectful portrayal of a culture in mediated content.

Algospeak

Words, phrases, and emojis that have developed as a result of social media users’ tactics to sidestep content moderation algorithms on social media.

Develop an Advertising Campaign: Step 1

Understand the target audience.

Develop an Advertising Campaign: Step 2

Establish message and budget objectives.

• Advertising objectives should be consistent with the overall communication plan

Develop an Advertising Campaign: Step 3

Create the ads.

• This is where the sender of a message encodes the idea into a physically perceivable form: the message

Creative strategy

The process that turns a concept into an advertisement.

Creative brief

A guideline or blueprint for the marketing communication program that guides the creative process.

Advertising appeal

The central idea or theme of an advertising message.

Unique selling proposition

An advertising appeal that focuses on one clear reason why a particular product is superior.

Reminder advertising

Advertising aimed at keeping the name of a brand in people’s minds to be sure consumers purchase the product as necessary.

Teaser/mystery ads

Ads that generate curiosity and interest in a to-be-introduced product by drawing attention to an upcoming ad campaign without mentioning the product.

Execution format

The basic structure of the message, such as comparison, demonstration, testimonial, slice of life, and lifestyle.

Lifestyle advertising

Ads that show a person attractive to the target market in an appealing setting with the advertised product as “part of the scene,” implying that the person who buys it will attain the lifestyle.

Tonality

The mood or attitude the message conveys.

• Straightforward, humorous, dramatic, romantic, seductive, apprehensive, or fearful

Fear appeals

Advertisements that highlight the negative consequences of not using a product by either focusing on physical harm or social disapproval.

Sonic/audio branding

Strategic use of sound to express a brand’s identity.

• Includes tones, voices, jingles

Develop an Advertising Campaign: Step 4

Pretest what the ads will say.

• Helps advertisers minimize mistakes by getting consumer reactions to ad messages before they appear in media.

Develop an Advertising Campaign: Step 5

Choose the media types and media schedule.

Media planning

The process of developing media objectives, strategies, and tactics for use in an advertising campaign.

Develop an Advertising Campaign: Step 6

Evaluate the advertising.

Posttesting

Research conducted on consumers’ responses to actual advertising messages they have seen or heard.

Unaided recall

A research technique that asks whether a person remembers seeing an ad during a specified period without giving the person the name of the brand.

Aided recall

A research technique that uses clues to prompt answers from people about advertisements they might have seen.

Attitudinal measures

A research technique that probes a consumer’s beliefs or feelings about a product before and after being exposed to messages about it.

Upfront TV ad pricing

The practice of buying and selling national TV advertising time for the entire broadcast year.

• Allows advertisers to lock in pricing and get the best time slots.

Reach/rating

The percentage of the target market that will be exposed to the media vehicle.

Gross rating points

A measure used for comparing the effectiveness of different media vehicles.

• (media reach)*(frequency)

Cost per thousand

A measure used to compare the relative cost-effectiveness of different media vehicles that have different exposure rates.

• The cost to deliver a message to 1000 people or homes.

Brand placement/embedded marketing

The placement of brands, logos, jingles, or a product itself into entertainment venues.

Branded entertainment/content

A form of promotion in which marketers integrate products into the storylines of entertainment venues.

Native advertising

An execution strategy that mimics the content of the medium where the message appears.

Support media

Media such as directories or out-of-home media that may be used to reach people who are not reached by mass-media advertising.

Owned media

Media channels such as publications, websites, blogs, Facebook, and Snapchat accounts, that are owned and thus controlled by a brand.

Paid media

Traditional media such as print and broadcast as well as Internet media placements for which an advertiser pays to be included.

Earned media

Word-of-mouth or buzz using social media where the advertiser has no control. Media may be controlled by consumers or other stakeholders.

Ad/click fraud

The use of automated browsers to falsify the number of views of click-throughs the advertisers must pay for.