Exam 3: Chapter 18 Integrated Marketing Communications Vocab

Promotional Mix

combination of one or more communication tools used to

• inform prospective buyers about benefits of the product

• persuade them to try it

• remind them later about the benefits they enjoyed by using the product

Advertising

any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor

Personal Selling

2 way flow of communication between a buyer and seller designed to influence a person’s or group’s purchase decision

• usually face-to-face communication between sender and receiver

• controls who they are talking to and does not waste communication with people they don’t want to target

Public Relations

form of communication that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services

Sales Promotion

short-term inducement of value offered to arouse interest in buying a product or service

Direct Marketing

use direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet

Product life Cycle and Promotion Strategy

• Introduction: to inform

• Growth: to persuade

• Maturity: to remind

• Decline: to phase out

Product Characteristics

Complexity: the technical sophistication of the product and the amount of understanding required to use it

Risk: amount of risk represented by the product’s purchase, for the buyer it can be assessed in terms of financial, social, and physical risk (greater the risk, the greater the need for personal selling)

Ancillary Services: degree of service or support required after the sale

Stages of the Consumer Journey

Repurchase Stage: advertising is more helpful than personal selling because advertising informs potential customer of the existence of the product and the seller

Purchase Stage: importance of personal selling is highest

Post Purchase Stage: salesperson is still important, the more personal contact after the sale the more the buyer is satisfied

Push Strategy

directing the promotion mix to channel members to gain their cooperation in ordering and stocking the product

Pull Strategy

directing promotional mix at ultimate consumers to encourage them to ask the retailer for a product

Promotional Decision Process

• Who is the target audience?

• What are the promotion objectives, the amounts of money that can be budgeted for the promotion program, and the kinds of promotion to be used?

• Where should the promotion be run?

• When should the promotion be run?

Percentage of Sales Budgeting

allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold

Competitive Parity Budgeting

allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share

All-You-Can-Afford Budgeting

allocating funds to promotion only after all other budget items are covered

Objective and Task Budgeting

allocating funds where the company

• determines promotion objectives

• outlines the tasks to accomplish those objectives

• determines the promotion cost of performing those tasks

Direct Orders

the result of directing marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction

• AKA the customer can act right away(buy, sign up, order) based on the message

Lead Generation

result of an offer designed to generate interest in a product or service and a request for additional information

• generating leads

Traffic Generation

outcome of an offer designed to motivate people to visit a business