Chapter 14 Flashcards
Promotion mix (marketing communications mix)
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or a service.
Personal selling
Personal presentation by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.
Public Relations (PR)
Building good relations with the company’s various public by obtaining favorable publicity, building a good corporate image, and creating favorable events, stories, and other marketing content.
Direct and digital marketing
Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Integrated marketing communications (IMC)
Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Five As
The five customer journey stages on the path from awareness of a brand to advocating it to others: awareness, appeal, ask, act, and advocacy.
Personal communication channels
Channels through which two or more people communicate directly with each other, including face-to-face, on the phone, via mail or email, or even through an internet “chat”.
Word-of-mouth influence
The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.
Buzz marketing
Cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities.
Nonpersonal communication channels
Media that carry messages without personal contact or feedback, including major media, atmospheres, and events.
Affordable method
Setting the promotion budget at the level management thinks the company can afford.
Percentage-of-sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
Competitive-parity method
Setting the promotion budget to match competitors’ outlays.
Objective-and-task method
Developing the promotion budget by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Push strategy
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.
Pull strategy
A promotion strategy that calls for spending a lot on consumer advertising, promotion, and other content to induce final consumers to engage with and buy the product, creating a demand vacuum that “pulls” the product through the channel.
