Download Lessons from Chapter 10

Lessons from Chapter 10
Integrated marketing communications:

includes conveying and sharing meaning between buyers and sellers, either as
individuals, firms, or between individuals and firms.

includes the traditional elements of the promotion mix: advertising, public relations,
personal selling, and sales promotion.

refers to the strategic, coordinated use of promotion to create one consistent message
across multiple channels to ensure maximum persuasive impact on the firm's current and
potential customers.

takes a 360-degree view of the customer that considers every contact that a customer or
potential customer may have in their relationship with the firm.

can reduce or eliminate redundancies and waste in the overall promotional program.

has become widely embraced as firms struggle to adapt to fragmented audiences across a
wide variety of traditional media outlets.

typically sets goals and objectives for the promotional campaign using the AIDA
model—attention, interest, desire, and action.

can change depending on whether the firm uses a pull or push strategy with respect to its
supply chain.

varies in its emphasis on specific promotional elements depending on the nature of the
product and its stage in the product life cycle.
Advertising:

is one of the most visible and key components of promotion.

is identified as paid, nonpersonal communication transmitted through the media such as
television, radio, magazines, newspapers, direct mail, outdoor displays, the Internet, and
mobile devices.

is rapidly expanding online as consumers spend less time with traditional media.

offers many benefits because it is extremely cost efficient when it reaches a large number
of people. On the other hand, the initial outlay for advertising can be expensive.

is hard to measure in terms of its effectiveness in increasing sales.

comes in two general forms: institutional advertising—used to promote a firm's image,
ideas and culture—or product advertising—used to promote the image, features, uses,
benefits, and attributes of products.

budgets can be set using one of several approaches, including the objectives and task
approach, the percentage of sales approach, the competitive matching approach, and the
arbitrary approach.

effectiveness can be measured before, during, or after the campaign has been executed.
Consumer panels, surveys, or experimental designs may be used to evaluate a campaign
based on communication objectives.
Public relations:

is one component of a firm’s corporate affairs activities.

is the element of an IMC program that tracks public attitudes, identifies issues that may
elicit public concern, and develops programs to create and maintain positive relationships
between a firm and its stakeholders.

can be used to promote the firm, its people, its ideas, and its image; and even to create an
internal shared understanding among employees.

can improve the public's general awareness of a company and can create specific images
such as quality, innovativeness, value, or concern for social issues.

is often confused with publicity; however, publicity is more narrowly defined to include
the firm's activities designed to gain media attention through articles, editorials, or news
stories.

can involve the use of a wide variety of methods, including news or press releases,
feature articles, white papers, press conferences, event sponsorship, product placement,
and employee relations.

includes the management of unexpected and unfavorable public relations resulting from
an ethical or legal inquiry, unsafe products, accidents, or the controversial actions of
employees and executives.
Personal selling:

is paid, personal communication that attempts to inform customers about products and
persuade them to purchase those products.

is the most precise form of communication because it assures companies that they are in
direct contact with an excellent prospect.

does not come without disadvantages. The most serious drawback of personal selling is
the cost per contact.

goals are typically associated with finding prospects, informing prospects, persuading
prospects to buy, and keeping customers satisfied through follow-up service after the
sale.

has evolved to take on elements of customer service and marketing research in order to
generate repeat sales and develop ongoing relationships with customers.

and sales management activities include the development of sales force objectives,
determining the size of the sales force, recruiting and training salespeople, and
controlling and evaluating the sales force.

has been greatly impacted by technological advances, especially online sales training and
sales automation systems that push integrated customer, competitive, and product
information toward the salesperson.
Sales promotion:

involves activities that create buyer incentives to purchase a product, or that add value for
the buyer or the trade.

can be targeted toward consumers, channel intermediaries, or the sales force.

has one universal goal: to induce product trial and purchase.

is typically used in support of advertising, public relations, or personal selling activities
rather than as a standalone promotional element.

directed toward consumers:

can be initiated by any member of the supply chain, but manufacturers or retailers
typically offer them.

represents an effective way to introduce new products or promote established
brands.

can include such activities as coupons, rebates, samples, loyalty programs, pointof-purchase promotion, premiums, contests and sweepstakes, and direct mail.

directed toward the trade (business markets):

is undertaken to push products through the channel by increasing sales and
encouraging increased effort among channel partners.

uses many of the same promotional methods that are targeted toward consumers;
however, it involves a number of unique methods including trade allowances, free
merchandise, training assistance, cooperative advertising, and selling incentives
offered to an intermediary's sales force.