MKTG305: Ch. 18 "Integrated Marketing Communications and Direct Marketing"

McGraw Hill

promotional mix

the combination of one or more communication tools used to inform prospective buyers about the benfits of the product, persuade them to try it, and remind them later about the benefits they enjoyed by using the product

integrated marketing communications (IMC)

the concept of designing marketing communications programs that coordinate all promotional activites - advertising, personal selling, sales promotion, public relations, and direct marketing - to provide a consistent message across all audiences

communication

the process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding

source

a company or person who has information to convey during the communication process

message

consists of the information sent by a source to a receiver during the communication process

channel of communication

the means (for example, a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process

receivers

consists of consumers who read, here, or see the message sent by a source during teh communication process

encoding

the process of having the sender transform an idea into a set of symbols during the communication process

decoding

the process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process

field of experience

mutually shared understanding and knowledge that the sender and receiver apply to a message so that it can be communicated effectively during the communication process

response

in the feedback loop, is the impact the message had on the receiver’s knowledge, attitudes, or behaviors during the communication process

feedback

in the feedback loop, is the sender’s interpretation of the response, which indicates whether a message was decoded and understood as intended during the communication process

noise

consists of extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process

advertising

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

personal selling

consists of the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s, or group’s purchase decision

public relations

a form of communication management that seeks to influence the feelings, opinons, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other public about a company and its production or services

publicity

a nonpersonal, indirectly paid presentation of an organizaiton, product, or service

sales promotion

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

direct marketing

a promotion alternative that uses 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

push strategy

involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking a product

pull strategy

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

hierarchy of effects

the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, adoption (and advocacy)

percentage of sales budgeting

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

competitive parity budgeting

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

all you can afford budgeting

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

objective and task budgeting

involves allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion costs of performing these tasks

direct orders

the results of a direct marketing offer that contains all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction

lead generation

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

traffic generation

the outcome of a direct marketing offer designed to motivate people to visit a business