MAR3023 Exam 2

Integrated Marketing Communication (IMC)

Planning a firm's communications so every promotional activity is coordinated and audiences receive a consistent message across channels.

Promotion

One element of the marketing mix used to inform, persuade, and remind prospective buyers about a product or organization.

Promotional Mix

The combination of promotional elements a firm chooses to use: advertising, personal selling, sales promotion, public relations, and direct marketing.

Three Functions of Promotion

To inform prospective buyers, persuade them to try or purchase the product, and remind them of the product.

Paid Media

Media exposure that a company pays for, such as advertising.

Owned Media

Communication outlets controlled by the company, such as its website or public relations staff.

Earned Media

Exposure created when customers or others spread a company's message without the company paying for it.

Five Traditional Promotional Mix Elements

Advertising, personal selling, sales promotion, public relations, and direct marketing.

Advertising

Paid, nonpersonal communication from an identified sponsor about an organization, good, service, or idea.

Personal Selling

Two-way communication between a customer and organizational representative designed to influence a purchase decision.

Sales Promotion

A temporary incentive offering something of value for a limited time to create interest and increase near-term sales.

Examples of Sales Promotion

Coupons, free samples, contests, rebates, and other temporary incentives.

Public Relations (PR)

A firm's effort to manage its publicity and reputation using tools such as press releases, sponsored events, lobbying, and press conferences.

Publicity

A nonpersonal presentation of a firm or product by a third party, such as a news story or editorial.

Public Relations vs. Publicity

A firm controls its public relations response but cannot directly control the publicity it receives from the media.

Direct Marketing

One-to-one communication with individual customers, often electronically, designed to produce an order, request for information, or store visit.

Examples of Direct Marketing

Catalogs, telemarketing, direct mail, marketing emails, and online marketing.

Mass Selling Elements

Advertising, public relations, and sales promotion; they reach groups of buyers at once.

Customized Interaction Elements

Personal selling and direct marketing; they tailor messages to individual prospects.

Sponsorship

A marketing tool in which a company pays to attach its name or advertisement to part of an event.

Four Criteria for Successful Sponsorship

Importance to target customers, large enough investment, activation/engagement, and linkage/fit.

Importance to Target Customers

The sponsored event should be something the target customers genuinely care about.

Large Enough Sponsorship Investment

The investment should be large enough for customers to view the sponsor as instrumental to the event.

Sponsorship Activation

Providing experiences that strengthen the connection between the event and the sponsoring brand.

Sponsorship Linkage/Fit

A natural connection should exist between the event and the sponsoring brand.

Ambush Marketing

Attempting to gain goodwill or attention from an event without paying to be an official sponsor.

Event Marketing

A company creates or owns an event rather than sponsoring someone else's event, giving it greater control.

Product Placement

Placing a branded product in a movie, television program, video game, or other entertainment to gain natural exposure.

Straight-Fee Product Placement

The brand owner pays the producer a fee to feature its product.

Barter Product Placement

A company provides a product for use in entertainment in exchange for the exposure it receives.

Cross-Promotion

A movie or show features a product while the product's company promotes the movie or show in return.

Infomercial

A commercial designed to provide extensive product information and usually end with a direct call to action.

Branded Entertainment

Entertainment content produced or sponsored by a company to attract attention to a particular brand or product.

Guerrilla Marketing

Unexpected and unconventional marketing, often outside the home, designed to attract attention and encourage sharing.

Crowdsourcing Advertising

Advertising content created or contributed by ordinary consumers rather than solely by the company.

Promotional Mix Complementarity

Different promotional tools work together so one may attract attention while another reinforces or completes the message.

Target Audience and Promotional Mix

The target audience influences which promotional elements should receive the greatest emphasis.

Product Life Cycle and Promotional Mix

Different promotional tools are emphasized at different stages of a product's life cycle.

Promotion in Introduction Stage

All promotional elements may be used; advertising creates awareness and publicity may begin.

Promotion in Growth Stage

Advertising differentiates the product while personal selling helps strengthen distribution channels.

Promotion in Maturity Stage

Sales promotions help retain loyal buyers while direct marketing maintains the customer base.

Promotion in Decline Stage

Little money is generally spent on promotion as the company phases out the product.

Product Complexity and Promotion

The more complex the product, the more important personal selling becomes.

Product Risk and Promotion

The greater the financial, social, or physical risk, the greater the need for personal selling.

Ancillary Services and Promotion

The more post-sale support a product requires, the more important personal selling becomes.

Prepurchase Stage Promotion

Advertising creates awareness and sales promotion encourages trial.

Purchase Stage Promotion

Personal selling and sales promotion are especially important; direct marketing may shorten adoption time.

Postpurchase Stage Promotion

Advertising reassures buyers while personal selling can reduce postpurchase anxiety.

Push Strategy

A company directs promotion toward channel intermediaries so they stock and promote the product to customers.

Pull Strategy

A company promotes directly to final consumers so they demand the product from retailers and other intermediaries.

Communication

The process of conveying a message to others.

Basic Communication Model

Source, encoding, message, channel, decoding, receiver, response, feedback, and noise.

Message

What the source intends to communicate.

Source

The person, group, company, or brand sending a message.

Channel of Communication

The medium through which a message is sent, such as television, radio, print, or the internet.

Media Vehicle

A specific outlet within a communication channel, such as a particular TV station or magazine.

Receiver

The person or consumer receiving the message, usually the target market.

Field of Experience

Everything the source or receiver knows and takes for granted that affects communication.

Field-of-Experience Overlap

The more the source's and receiver's experiences overlap, the more likely the message will be interpreted correctly.

Encoding

The process by which the source turns an idea into symbols, words, images, music, or other communication.

Decoding

The process by which the receiver interprets and gives meaning to the message.

Noise

Anything that distorts or interferes with communication between the source and receiver.

Response

The actions or reactions of the receiver after decoding a message.

Feedback

Information returned to the source showing whether the message produced its intended response.

Feedback Loop

Using feedback to adjust communications and reduce noise or improve effectiveness.

Personal Source

A communication source involving direct personal contact between the source and receiver.

Impersonal Source

A communication source aimed at a group through mass media, such as advertising.

Marketer-Controlled Source

A source directly controlled by the firm, often because the firm paid for the communication.

Independent Source

A source not directly controlled or compensated by the firm.

Most Credible Type of Source

Consumers generally trust personal, independent sources more than marketer-controlled, impersonal sources.

Personal Selling as a Source

Personal and marketer-controlled.

Advertising as a Source

Impersonal and marketer-controlled.

Sales Promotion as a Source

Impersonal and marketer-controlled.

Word of Mouth as a Source

Personal and independent.

Publicity as a Source

Impersonal and independent.

Word of Mouth

Consumer-to-consumer communication about a product or company that marketers do not directly control.

Why Word of Mouth Is Powerful

It is personal and independent, making it more credible than many marketer-controlled messages.

Spokesperson

A person used by a company to communicate or endorse a product or brand.

Celebrity Endorser

A famous person used as a spokesperson to gain attention and potentially transfer positive associations to a brand.

Influencer

An internet personality, product user, or content creator who reviews or promotes products to an audience.

Paid Influencer

A marketer-controlled source because the influencer is compensated by the company.

Unpaid Influencer

A personal, independent source similar to word of mouth.

Two Main Factors of Source Effectiveness

Credibility and attractiveness.

Credibility

The extent to which people believe what a communication source says.

Two Components of Credibility

Expertise and trustworthiness.

Expertise

The extent to which the source is perceived as knowledgeable about the product or subject.

Trustworthiness

The extent to which consumers believe the source's statements are honest and unbiased.

Attractiveness

The overall appeal of an endorser, including likability and the public's affinity for the person, not just physical appearance.

Q Score

A survey-based measure of how much consumers like or recognize a potential endorser.

Message Objective

The basic goal the firm wants its promotional campaign to accomplish.

Hierarchy of Effects Model

A model proposing that consumers move through a series of mental stages on the way to purchasing a product.

Hierarchy of Effects Stages

Awareness, knowledge, liking, preference, intent, and purchase.

Awareness Stage

The consumer becomes aware that the product or brand exists.

Knowledge Stage

The consumer gains information and understanding about the product.

Liking Stage

The consumer develops favorable feelings toward the product.

Preference Stage

The consumer begins preferring the product or brand over alternatives.

Intent Stage

The consumer plans or intends to purchase.

Purchase Stage

The consumer actually buys the product.

Hierarchy of Effects Bottleneck

The stage with the greatest relative loss between adjacent stages; promotion should focus on improving that transition.

Finding the Hierarchy-of-Effects Bottleneck

Calculate the ratio of each earlier stage to the next stage; the largest adjacent ratio indicates the biggest bottleneck.