Chapter 14 Notes

Promotional mix = the combination of one or more communication tools used to inform,
persuade, or remind prospective buyers
Integrated marketing communications = concept of designing marketing communications
programs that coordinate all promotional activities to provide a consistent message across all
audiences
Communications is the process of conveying a message to others and it requires six elements:
source, message, channel of communication, receiver and the process of encoding and decoding
Source may be a company or person who has information to convey
Message is the info sent by a source
Message is conveyed by channel of communication
Receivers: consumers who read, hear, or see the message
Encoding= process of having the sender transform an idea into a set of symbols
Decoding = process of having the receiver take a set of symbols, message, and transform the
symbols back to an idea
Feedback loop consists of a response and feedback
Response is the impact the message had on the receivers knowledge, attitudes, or behaviors
Feedback is the senders interpretation of the response and indicates whether the message was
decoded and understood as intended
Noise= includes extraneous factors that can work against effective communication by distorting
a message or the feedback received
5 promotional alternatives in communication: advertising, sales promotion, public relations,
personal selling, and direct marketing
Advertising, sales promotion and public relations use mass selling because they are used with
groups of prospective buyers
Personal selling uses customized interaction between a seller and a prospective buyer
Personal selling activities include face to face, telephone, and interactive electronic
communication
Advantages: salesperson can control to whom the presentation is made; seller can see or hear the
potential buyers reaction to the message
Disadvantage: flexibility of personal selling; no consistent communication is given to all
customers; high cost
Public relations = form of communication management 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

Publicity is key in public relations

Advantage: credibility
Disadvantage: lack of the users control over it
Sales Promotion = short term inducement of value offered to arouse interest in buying a product
or service
Offered to intermediaries and consumers
Examples of sales promotion: coupons, rebates, samples, contests, sweepstakes
Advantage: short term nature of these programs often stimulates sales for their duration
Disadvantage: only temporary and sales drop off when the deal ends
Advertising = any paid form of nonpersonal communication about an organization, product,
service, or idea by an identified sponsor
Advantage: can be attention getting, can communicate specific product benefits to prospective
buyers, company can control what to say and whom to say it to
Disadvantage: costs to produce are significant; lack of feedback makes it difficult to know how
well the message has been received
Direct Marketing = 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
Can be face to face selling, direct mail, catalogs, telephone solicitations, online marketing
Advantage: customized to match the needs of specific target markets
One of the fastest growing forms of promotion
Disadvantage: require a comprehensive and up to date database with information about the target
market; can be expensive and time consuming
Target Audience = promotional programs are directed to the ultimate consumer to an
intermediary or to both
Promotional programs directed to buyers of consumer products often use mass media because
the number of potential buyers is large
Product Life Cycle of the promotional mix
Introduction informing customers in an effort to increase their level of awareness
Growth- persuade the consumer to buy the product
Maturity- maintain existing buyers (advertising role is to remind buyers of the products
existence)
Decline-a period of phase out for the product and little money is spent in the promotional mix
Channel strategies: push or pull
Push strategy: directing the promotional mix to channel members to gain their cooperation in
ordering and stocking the product
(Personal selling and sales promotion play roles in this)
Pull strategy: directing the promotional mix at ultimate consumers to encourage them to ask the
retailer for a product

Promotion decision process

1 planning (developing the promotion program): identify the target audience, specify the
objectives, set the budget, select the right promotional tools, and design the promotion
2 implementation (executing the promotion program): pretest the promotion, carry out the
promotion
3 evaluation (assessing the promotion program): posttest the promotion, make needed changes
Hierarchy of effects: sequence of stages a prospective buyer goes through from intial awareness
of a product to eventual action
5 stages: 1 awareness- consumers ability to recognize and remember the product or
brand name
2 interest an increase in the consumers desire to learn about some of the features
of the product or brand
3 evaluation consumers appraisal of the product or brand on important
attributes
4 trial- consumers actual first purchase and use of the product or brand
5 adoption through a favorable experience on the first trial, the consumers
repeated purchase and use of the product or brand