MKT 7&8

• Advertising


  Any form of impersonal (one-way) paid communication in which the sponsor or company is identified
• Public relations


  The marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
• Personal selling


  A purchase situation involving a personal, paid-for communication between two people to influence each other
• Sales promotion


  All marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer purchasing and dealer effectiveness

  
• Nature of the Product

  • Characteristics of the product itself can influence the promotional mix
  • Consumer products generally require selling efforts promoted mainly through advertising to create brand familiarity
  • Television and radio advertising, consumer-oriented magazines, and the Internet and other highly targeted media are used extensively to promote consumer goods, especially nondurables
  • Sales promotion, the brand name, and the product's packaging are about twice as important for consumer goods as for business products
  • Persuasive personal selling is important at the retail level for shopping goods such as automobiles and appliances
• Product life cycle


  • Affects the promotional mix
• Target Market Characteristics


  • A target market characterized by widely scattered potential customers, highly informed buyers and brand-loyal repeat purchasers generally require a promotional mix with more advertising and sales promotion and less personal selling

  
• Type of buying decision

  • The promotional mix depends on whether it is a routine or complex buying decision
  • For routine consumer decisions, the most effective promotion calls attention to the brand or reminds the consumer about the brand
  • Advertising and sales promotion are the most productive promotion tools to use for routine decisions

  
• Available funds


  • Money, or the lack of it, may easily be the most important factor in determining the promotional mix
  • A small, undercapitalized manufacturer may rely heavily on free publicity if its product is unique
• Push or pull strategy

  • Push Strategy - Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell their merchandise
  • Pull Strategy - Stimulates consumer demand to product distribution

  
• Institutional Advertising


  Also known as corporate advertising, promotes the corporation as a whole and is designed to establish, change, or maintain the corporation's identity
• Product Advertising


  Promotes the benefits of a specific good or service<|>The product's stage in its life cycle often determines which type of product advertising is used: pioneering advertising, competitive advertising, or comparative advertising

  
• Pioneering Advertising


  Intended to stimulate primary demand for a new product or product category<|>Heavily used during the introductory stage of the product life cycle
• Competitive Advertising


  Firms use competitive or brand advertising when a product enters the growth phase of the product life cycle and other companies begin to enter the marketplace
• Comparative Advertising


  Directly or indirectly compares two or more competing brands on one or more specific attributes
• New-Product Publicity


  Instrumental in introducing new products and services<|>Publicity can help advertisers explain what's different about their new product by prompting free news stories or positive word of mouth about it
• Product Placement


  Marketers are increasingly using product placement to reinforce brand awareness and create favorable attitudes
• Consumer Education


  Some major firms believe that educated consumers are better, more loyal customers
• Sponsorships


  A company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image
• Internet Web Sites


  Used to introduce new products, promote existing products, obtain consumer feedback, post news releases, communicate legislative and regulatory information, showcase upcoming events, provide links to related sites, release financial information, interact with customers and potential customers
• Coupons


  A certificate that entitles consumers to an immediate price reduction when they buy the product
• Rebates


  Similar to coupons in that they offer the purchaser a price reduction, however the reward is not as immediate as the purchaser must mail in a rebate form and usually some proof of purchase
• Premium


  An extra item offered to the consumer, usually in exchange for some proof that the promoted product has been purchased
• Loyalty Marketing Programs


  A form of reward towards loyal consumers for making multiple purchases<|>The objective is to build long-term, mutually beneficial relationships between a company and its key customers
• Contests


  Promotions in which participants use some skill or ability to compete for prizes
• Sweepstakes


  Promotions in which winning depends on chance or luck, and participation is free
• Sampling


  Enables customers to try a product risk-free
• Point-of-purchase (P-O-P) Promotion


  Includes any promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying
• Online sales promotions


  Expanded dramatically in recent years<|>The most effective types are free merchandise, sweepstakes, free shipping with purchases, and coupons
• Advantages of Personal Selling

  • It provides a detailed explanation or demonstration of the product
  • The sales message can be varied according to the motivations and interests of each prospective customer
  • It can be directed only to qualified prospects
  • Costs can be controlled by adjusting the size of the sales force
  • Is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer
• Customer Relationship Management (CRM)

  A company wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on precisely defined customer groups<|>Focuses on understanding customers as individuals instead of as part of a group<|>Marketers make their communications more customer specific
• The Customer Relationship Management Cycle

  1. Identify customer relationship

  2. Understand interactions with current customer base

  3. Capture customer data based on interaction

  4. Store and integrate customer data using information technology

  5. Identify best customers

  6. Leverage customer information
• Social media


  Has changed the way that marketers can communicate with their brands to intimate conversations
• Social media tools


  • Social news sites
  • Media sharing sites
  • Online gaming
  • Virtual worlds
  • Social networking sites
  • Blogs
  • Review sites
  • Location based social networking sites
• Social media and mobile technology

  Social media has always been exciting because of websites and new ways to use technology<|>Now, a lot of the growth is happening on new gadgets like smartphones, netbooks, and iPads<|>These new platforms let people use popular websites from different gadgets<|>Means you don't have to be stuck at a computer to be on social media anymore<|>Has opened the door to modern mobile advertising as a viable marketing strategy
• Applications and widgets


  Developers have created millions of apps for smartphones<|>QR codes are square barcodes that when scanned with a phone take you to a website about that product<|>Web widgets are little software apps that live inside websites or social media platforms and do things like show the weather, play games, or help you share stuff with friends
• Ethics


  Often serve as the moral compass guiding social norms<|>They shape behaviors, influencing the development of societal norms that individuals adhere to voluntarily
• Laws


  Codify and institutionalize societal norms<|>They're a formal mechanism for maintaining social order and controlling behavior
• Informal and formal groups

  Informal groups like peer networks or communities play a significant role in reinforcing societal norms and values<|>Formal groups such as government bodies or organizations enforce regulations and policies that reflect societal norms, furthering mechanisms of control
• Self regulation


  Involves individuals voluntarily conforming to established norms, displaying behaviors in line with societal expectations