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1. Advertising
2. Sales Promotion
We now view communications as the management of the customer buying process over time. To
communicate effectively marketers need to understand the fundamental elements underlying
effective communications. Sender and receiver are two elements that represent the major
parties; message and media represent communication tools; encoding, decoding, response and
feedback represent communication functions; and noise is random and competing messages. For the
message to be effective, the senders encoding process must mesh with the receivers decoding
process.
The sender's task is to get his message through to the target audience. These are potential
problems:
1. Selective audience - people are bombarded by too many messages, so hard to get their
attention
2. Selective distortion - people twist message to hear what they want. Add things that are not
there (amplification) and ignore things that are there (leveling)
1. The greater the monopoly of communication source, the greater the recipient's change or
effect in favor of the source.
2. Communication effects are greatest when message is in line with receiver's existing
opinions, beliefs, and dispositions. -> resonate
3. Communication can produce the most effective shifts on unfamiliar, peripheral issues,
which do not lie at the center of the recipient's value system. -> new
4. Communication is more likely to be effective where the source is believed to have expertise,
high status, or likeability. -> expert
5. The social context group or reference group will mediate the communication and influence
whether or not the communication is accepted.
Image Analysis - need to assess the audience's current image (the set of beliefs,
ideas, and impressions that a person holds regarding an object. People's attitudes
and actions toward an object are highly conditioned by that object's image) of your
company or products
Familiarity scale—Never Heard of, Heard of Only, Know a Little Bit, Know a Fair
Amount, Know Very Well.
Semantic Differential – a tool used to research the specific content of its image.
This involves the following steps.
Response hierarchy model - different models for consumer response stages. All the models assume
that the buyer passes through responses in listed order (see page 611, figure 20-4 for model).
3. Designing the Message - after defining desired audience response, develop an effective
message. The message should gain attention, hold interest, arouse desire, and elicit action.
1. Message Content - what to say to the target audience. In determining the best message,
want appeal, theme, idea or unique selling proposition.
Stimulus Ambiguity - Best ads ask questions and let audience to reach conclusions.
One sided arguments - only praise product. Work best with audiences that are
initially predisposed to the communicator's position.
3. Message Format - how to say it symbolically. Also physical format of message, i.e.:
headlines, copy, illustration, color, and sounds are all important.
4. Message Source - who should say message. Messages delivered by attractive or popular
sources achieve higher attention and recall.
Selecting The Communication Channels - must select effective channels of communication. There
are two types of communication channels:
2. Create opinion leaders by supplying certain people with the product on attractive terms
Promotions
1. Affordable method - What the company can afford. Ignores role of promotion as an
investment.
2. Percentage of Sales method - Poor because views sales as determiner of promotion rather
than a result. Leads to budget set by the availability of funds rather than by market
opportunities.
3. Competitive parity method - achieves share of voice parity with their competitors. Should
not base your spending on competitors spending, doesn't make sense.
4. Objective and Task method - most desirable method. Develop budget by defining specific
objectives, tasks that must be performed to achieve objectives, and the costs of the
respective tasks.
Deciding on Promotion Mix - distributing the total promotion dollars between these promotional
tools:
Amplified expressiveness - dramatize the product and the company through art,
color and sound
Infomercials
2. Sales Promotion - diverse. Offer three distinctive benefits. Use sales promotions to create a
stronger and quicker response. Effects are useful for short run strategy.
Communication - gain attention and usually provide info that leads consumer to
product
High credibility - news stories and features add authenticity and credibility
4. Personal Selling - most cost effective tool at later stages of the buying process. Three
distinctive benefits:
Response - makes buyer feel obligated to listen to sales talk, even if response is a
polite 'no thank you'
5. Direct marketing - there are different forms, but they all share these characteristics:
Factors in setting the promotion mix - must consider several factors when setting promotion mix
1. Type of Product Market - promotional tool utilization varies between consumer and
business markets. Business markets concentrate on personal selling, while consumer
markets concentrate on advertising. However, advertising can help business markets:
awareness building
efficient reminding
lead generation - ads and brochures can generate leads for sales
reassurance - reminds customer how to use product and reassure them about
purchase
increased stock position - persuade dealers to take more stock and devote more
shelf space to product
enthusiasm building
missionary selling - sales reps can sign up more dealers to carry company's brands
Push strategy - involves manufacturer marketing activities (sales force and trade promotion)
directed at channel intermediaries. Goal is to induce the intermediary to order and carry the
product and promote it to end users. Appropriate where there is low brand loyalty in a category,
brand choice is made in the store, product is an impulse item or product benefits are well
understood.
Pull strategy - involves marketing activities (advertising and consumer promotion) directed at end
users. Purpose is to induce them to ask intermediary for the product and thus induce the
intermediary to order the product from the manufacturer. Appropriate when there is high brand
loyalty and high involvement in the category, people perceive differences between brands, and
people choose the brand before they go to the store.
Company Market Rank - top ranking brands derive more benefit from advertising than sales
promotion
Measuring the Promotion's Results - after implementing the promotional plan, communicator
must measure its impact on the target audience. Collect feedback from audience about recognizing
or recalling the message, how many times they saw it, what points they recall, how they felt about
the message, and their previous and current attitudes toward the product and company. Should
also collect behavioral measures of audience's response, such as how many people bought the
product, liked it, and talked to other about it.