Promotional Strategy - Exam 1
Terms
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- Defenition of IMC
- Integrated Marketing Communications is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. The IMC includes all business-to-business, channel, customer, external communications and internal communications. In short, it is an effort to coordinate – in a consistent, cohesive and coherent manner – the elements of the “Promotions P†of the Marketing Mix.
- The Communication Process
- Sender Encoding Transmission Device Decoding Reciever Feedback (Noise Everywhere)
- The 4 stages of an IMC system
- After the 4 P's (promotion) -Advertising -Promotion -PR -Sales
- Brand Parity
- When consumers believe certian brands offer the same benefits. -Consumers will purchace based on a group of brands -Base purchacing decisions on other things
- Scrambled Merchandising
- retailer adds goods and services that are unrelated to each other and to the firm's original business. (CVS, Stop and Shop example)
- Tangable Components of a Corporate Image
- 1. Goods and services sold. 2. Retail outlets where product is sold. 3. Factories where product is produced. 4. Advertising, promotions, and other forms of communications. 5. Corporate name and logo. 6. Employees
- Intangable Components of a Corporate Image
- 1. Corporate, personnel, and environmental policies. 2. Ideals and beliefs of corporate personnel. 3. Culture of country and location of the company. 4. Media reports.
- Roles of a Corporate Image
- 1. Consumer perspective. Provides assurance regarding purchase decisions Reduces search time in purchase decisions Psychological reinforcement and social acceptance 2. Business-to-business perspective. Reduces buyer’s sense of risk Surrogate for quality 3. Company perspective. Extension of positive consumer feelings to new products Ability to charge a higher price Enhance consumer loyalty Ability to attract quality employees Draw more favorable ratings by financial observers
- Product Mix Concept
- Mini, Inspiron, Studio, XPS, Alienware Vostro, Latitude, Optiplex, Precision
- Benefits of Strong Branding
- Can charge higher prices Facilitates greater channel power with retailers and wholesalers Gets the company additional retail shelf space Serves as a protective barrier against consumer switching Prevents erosion of market share
- Family Brands
- A group of related products sold under one name
- Brand Extension
- THe use of an established brand name on products not related to the core brand
- Flanker Brand
- The development of a new brand sold in the same category as another product
- C0-Branding
- Offering two or more brands in a single marketing offer
- Ingredient Branding
- THe placement of one brand within another brand
- Coopertive Branding
- THe joint venture of two or more brands into a new product or service.
- Complementary Branding
- The marketing of two brands together for co-consumption
- Private Brands
- Propriatary brands marketed by an organization and sold within the organizations outlets.
- Positioning
- Relative to competetors, 1. THe products standing relative to the competetion 2. How the product is percieved by consumers Helps prevent brand cannabilism
- Consumer Purchacing Process
- Problem Recognition Information Search Evaluation of Alternatives Purchace Decision Postpurchace evaluation
- Attitude
- a mental position taken toward a topic, person or event that influences the holder’s feelings, perceptions, learning processes and subsequent behaviors.
- 3 Components of Attitude
- Affective- feelings or emotions about the object, topic or idea  Cognitive- mental images, understandings or interpretations of the person, object of issue.  Conative- individual’s intentions, actions or behavior.
- Atttitude Sequence
- Cognitive Affective Conative (most common) Affective Conative Cognitive (ads that appeal first to emotion) Conative Cognitive Affective (low involvement purchases)
- Role of Satisfaction
- If satisfied, straight rebuy - if the product meets his/her expectations then the consumer is satisfied - to the extent that there is a gap between expectations and actuality, then the consumer is dissatisfied.
- Traditional Factors affecting consumer buying
- Demographics Heredity Family life cycle (e.g., being single vs. newlyweds vs. first families vs. empty nest vs. remaining partner) Life changing events (e.g., buying first home) Cultural environment Social environment (e.g., influence of peer network) Situational environment (e.g., weather, major news event)
- More Recent Factors affecting consumer buying
- Age and Gender Complexity Individualism and its Result: Mass Customization Active, Busy Lifestyles Stress and Cocooning Changes in Family Units Pleasure Pursuits Emphasis on Health
- Business Buying
- Buy for production, operation, or resale. Purchase installations, raw materials, and semi-finished materials. Buy based on specifications and technical data. Use buying teams. teams Use competitive bidding and negotiation. negotiation Derive demand from final consumer.
- Derived Demand
- the quantity of the items organizational consumers purchase is often based on the anticipated level of demand by their subsequent customers for specific goods and services (EX SUV's and gas)
- Buying Center
- the group of people that makes the purchasing decisions for businesses. It consists of: Users Buyers Influencers Deciders Gatekeepers (Roles often overlap)
- Factors affecting B2B buying decision
- What personalities are at work in the buying center? What are the perceived roles in the buying center? What is each player’s motivation? What role does power play in the buying center? What is the buying center’s general attitude toward risk? What is the overall level of cognitive involvement? Are there various objectives at play and politics at work in the buying center?
- Promotions Opportunity Analysis
- hatprocess by which marketers identify target audiences for the goods and services produced by the company.
- Promotions Opportunity Analysis Must...
- 1) determine which promotional opportunities exist for the company and 2) identify the characteristics of each target audience so a coherent communication message can reach it.
- 5 steps in the Promotions Opportunity Analysis
- 1. Conduct a communications marketing analysis. 2) Establish objectives. 3) Create a budget. 4) Prepare a promotional strategy. 5) Match tactics with strategy.
- Market Segments
- The individuals or businesses within the segment are homogenous The market segment is different from the population as a whole and distinct from other market segments. The market segment is large enough to be financially viable to target with a separate marketing campaign. The market segment must be reachable through some type of media or marketing communications method.
- Segmenting the Consumer Market
- ⬢ Demographics ⬢ Psychographics ⬢ Generations (Gen Y, X, Young Boomers, Older Boomers, Seniors) ⬢ Geographic ⬢ Geodemographics ⬢ Benefits (advantages consumers receive from a product) ⬢ Usage (heavy, light purchasers, seasonal purchasers)
- Segmenting the B2B market
- ⬢ Industry (SIC code) ⬢ Size of business ⬢ Geographic location ⬢ Product usage ⬢ Customer value