Lecture 11 Principles of Marketing

Promotion Mix

The specific blend of advertising, sales promotion, personal selling, public relations, and direct marketing tools used to communicate customer value.

Advertising

Any paid, non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or service (e.g., discounts, coupons, displays).

Public Relations

Building good relations with the company’s publics by obtaining favorable publicity, building a positive image, and handling negative rumors.

Personal Selling

Personal presentation by the sales force to make sales and build customer relationships.

Direct Marketing

Direct connections with targeted individuals to obtain an immediate response and build long-term customer relationships (e.g., direct mail, email, telemarketing).

Integrated Marketing Communications (IMC)

Coordinating all communication channels to deliver a clear, consistent, and compelling message about the brand.

New Communications Landscape

Consumers are better informed, technology has increased channels, mass marketing is declining, and more personalized media is rising.

Sender

The party sending the message.

Encoding

Putting thought into symbolic form.

Message

The symbols the sender transmits.

Media

The communication channels through which the message travels.

Decoding

How the receiver interprets the message.

Receiver

The person who receives the message.

Response

The reaction of the receiver after seeing the message.

Feedback

The receiver’s response communicated back to the sender.

Noise

Unplanned static or distortion that affects communication.

AIDA Model

Steps for effective communication: Get Attention, Hold Interest, Arouse Desire, Obtain Action.

Rational Appeal

Appeals to the audience’s self-interest (benefits, performance, quality).

Emotional Appeal

Attempts to stir emotions (positive or negative) to motivate purchase.

Moral Appeal

Appeals to the audience’s sense of right or ethics.

Personal Communication Channel

Direct communication between individuals (face-to-face, phone, email, chat).

Word-of-Mouth Influence

Personal communication from friends, family, or opinion leaders.

Opinion Leaders

Individuals who influence others due to skills, knowledge, or personality.

Buzz Marketing

Cultivating opinion leaders to spread messages about a product.

Non-Personal Communication

Media that carry messages without personal contact or feedback (TV, print, online, atmospheres, events).

Message Source

The communicator delivering the message (celebrities, athletes, professionals).

Affordable Budget Method

Setting the promotion budget at what the company thinks it can afford.

Percentage-of-Sales Method

Setting the promotion budget as a percentage of current or forecasted sales.

Competitive Parity Method

Setting the budget to match competitor spending.

Objective-and-Task Method

Setting the budget based on objectives, tasks required, and cost estimation.

Push Strategy

Pushing the product through marketing channels by promoting to intermediaries (retailers, wholesalers).

Pull Strategy

Directing marketing to consumers to create demand that pulls the product through the channel.