AdvertisingAdvertising communicates a message to a targeted audience and generates feedback in the form of a sale or other action taken by a consumer. Show
Learning Objectives Summarize the different components that comprise an advertising campaign Key TakeawaysKey Points
Key Terms
Advertising – How Marketers Communicate to Consumers When a company pays to have a message that defines its goods or services delivered or
communicated to as many people as possible, they are said to be advertising. Effective advertising illustrates the product's value and gives consumers a reason to take action and/or buy. There are a variety of ways to promote a product. These methods are collectively referred to as Marketing Communications (MarCom) Matrix, and include direct marketing, public relations/publicity, new media, and advertising. The Anatomy of an Advertising Campaign Developing a brand character statement sets the tone of the campaign and defines what the targeted consumer group should do or
feel when they are exposed to it. The strategy addresses the message that will be communicated while creative tactics dictate how the strategy is actually implemented. Mar Com Matrix: The building blocks of successful marketing. Developing a Media PlanThe media plan is an integral part of the advertising campaign and is developed simultaneously with the creative strategy. The standard media plan has four stages:
The Advertising Business and New MediaAd Ladder: The key to successful advertising is to sell benefits, not features.
Advertising is often the only method of communication businesses use to speak to prospective consumers. Advertisements must reflect prevailing ideas by tapping into the social, cultural and moral pressures. Emerging advertising agencies often structure their business model to society's ever changing ideals. Current technology is forcing advertisers to move away from antiquated structure and practices. The growth of interactivity and open sourcing has placed power in the hands of the
consumer, giving them control over what they want to see and when they want to see it. Personal SellingMarketing impacts personal selling and improves the selling environment by increasing exposure to potential customers. Learning Objectives Discuss the different elements of personal selling Key TakeawaysKey Points
Key Terms
Personal SellingSelling, the art of persuasion, is defined as a one-on-one interaction whereby a tangible or intangible item of value is exchanged for a different item, usually with money in an amount of equal or greater value of the item being sold. Selling is part of the promotional mix. It is systematic, repetitive, and measurable. When properly analyzed, sales data will offer objections to overcome and help to predict sales patterns and projections. Personal Selling: The Marketing Hub describes relationships in the promotional mix. Understanding Customer Needs To be successful in personal sales, the salesperson must understand how to sell to the needs of a customer. Psychologist Abraham Maslow created a Hierarchy of Needs that offers useful information for personal selling. Maslow outlined five levels of need and as each level is fulfilled, a person progresses to the next one. At the most basic level, physiological and safety needs must be met with food, clothing,
and shelter, so a product that meets these basic needs has potential to sell well. However, the basic human need to consume food and liquids should not be confused with wanting a hamburger and a soft drink. The Mechanics of Personal Selling Sales capturing is defined as bringing in and closing deals. A successful personal seller must utilize aggressive sales technics that influence and control the process, presenting it as a mutually beneficial, interpersonal exchange of goods or services for equitable value. Selling Strategies The personal selling process has eight steps: The first is prospecting, which involves finding and identifying buyers who are most likely to buy the product or service. There are numerous ways to qualify leads: cold calls by telephone, email, through social networking, or personal referrals. The word "cold" refers to fact that the person receiving the call is not expecting it or has not specifically asked to be contacted by a sales
person. The Relationship between Sales and Marketing Marketing impacts personal selling and improves the selling environment by increasing exposure to potential customers. Marketing campaigns seek to drive potential customers towards sales people. Sales PromotionSales Promotion stimulates market demand, product availability and coordinates public selling, advertising and public relations. Learning Objectives Explain how sales promotion is used in the promotional mix Key TakeawaysKey Points
Key Terms
The primary objective of a sales promotion, a catch all marketing function, is to stimulate market demand, improve product availability and to coordinate public selling, advertising and public relations. A successful sales promotion is meant to prompt a targeted consumer group to show interest in the product or service, try it or ideally buy
it. They are delivered to targeted groups via media and non-media marketing communications during a pre-determined, limited amount of time. It is a component of a marketing plan's "promotional mix" that usually includes advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibition. Sales promotion cannot compensate for a poor product, a declining sales trend, ineffective advertising or can it create strong brand loyalty. Sales Promotions Have PurposeSales promotions launch new products, especially ones with perceived high risk, they create repeat customer purchase patterns, move large amounts of products quickly, counter the strategy of a competitor and can move marginal customers to make a choice. Consumer Sales Promotion Techniques Consumers attract the greatest number of sales promotion devices. Commonplace techniques include price deals that
offer a temporary price reduction while cents-off deals offer a brand at a lower price, usual as a percentage marked on the package. Price pack deals offer a certain percentage more of the product for the same price while a loss leader offers a temporary reduction on a popular product's price in to stimulate sales for other products offered. Reward programs involve collecting points, miles, or credits from purchases and then redeeming them for rewards. The purchase of
a product can also enter a buyer in a contests, sweepstakes, or online games. Price Deals: Co-promotional sales, or price deals, involve two different products. Sales Promotion: Mail-in or online rebates offer give money back to customers on products or services. Point-of-sale displays are in-store sales promotion techniques. Aisle interrupters or signs jut into the aisle from the shelf, hanging signs
called danglers sway with consumer traffic, product dump bins stimulate curiosity, glorifiers elevate products for better visibility, wobblersigns draw attention and lipstickboards convey product information written in crayon. Trade Sales Promotion TechniquesWholesalers, retailers and other organizational groups are offered a wide array of sales promotion devices such as trade allowances or short term incentives to encourage retailer to stock up on a product, dealer loaders incentivizing product purchase and display, trade contests for selling the most product, point-of-purchase displays to create impulse buying and spiffs or bonus commissions on certain products and trade or functional discounts paid to distribution channel members for conducting sales and special events. Sales Promotion Techniques at the RetailRetailer sales promotion devices are regularly rolled out for new marketing initiatives. For example "buy one, get one free, three for two, buy quantity and receive a lower price or percentage discounts on specific days of the week. Public RelationsPublic relations is the management of a message between an individual or organization and the public. Learning Objectives Describe the different aspects of public relations and its primary functions within the promotional mix Key TakeawaysKey Points
Key Terms
Core Elements Public relations is the management of a message between an individual or organization and the public that can be contracted on an hourly, monthly, annual, or "in-house" fee basis. Its primary purpose is to
persuade stakeholders to adopt a certain point of view about a project or product. Simply put, public relations manages communication between an organization and the public. It is communicated through the media in the form of publicity events, speaking opportunities, press releases including video and audio news releases, newsletters, blogs, social media, press kits, and outbound communication to members of the press. The media is not paid to publish the information.
Who Is the Public?The public is defined as the totality of a group. The public includes people who look, think, and act the same as well as those who do not. When planning a public relations campaign the marketer should consider who would be most and least likely to interact with the message and what the dialogue would sound like. What Public Relations Can DoThe response to public relations activities should lend itself to analysis and trending, to predict consequences, to guide executive decisions, and used to trigger planned programs of action. The ideal end results of public relations is for the information to serve both the source and the public interest. Modern Public Relations The delivery of public relations messages is shifting from traditional media channels to online media such as social media releases, search engine optimization, content publishing, blogs, microblogs, podcasts, and video. Social media has increased the speed of breaking news and created greater time constraints on response times to current events. Edward Bernays: Bernays, known as the "Father of Public Relations," managed public relations for World War I. Effective Public RelationsDepending on the message, some public relations must harmonize with state laws and be reviewed by an attorney to ensure compliance. It must follow a plan of action and aim at goals that are clearly defined. It must be clear to be useful. Its administrators must understand their role and responsibilities. It should build strong relationships and partnerships. Its effectiveness should be measurable with established benchmarks to make sure that the program has achieved the desired goal or objective. Audience TargetingThe public relations program's target audience must be identified so that the message can be tailored to suit them. Sometimes the interests of differing audiences necessitate the creation of several distinct but complementary messages. All audiences or publics are stakeholders, groups or individuals that can affect or be affected by the actions of the business as a whole, but not all stakeholders are audiences. MessagingMessaging constructs a consistent and specific story around a P.R. event or project. It eliminates contradictory or confusing information that will instill doubt in a purchasing choice or other decisions that have an impact on the marketer. Brands aim to have the same problem statement, industry viewpoint, or brand perception shared across sources and mediums. SpinSpin polishes and colors the truth by selectively presenting facts that support a desired position and can sway public opinion. It is sometimes seen as a derogatory but is commonly used in public relations campaigns. Negative PRNegative public relations, also called dark public relations (DPR), is a process of destroying or discrediting. Dirty secrets, misleading facts, or legitimate claims figure heavily into the equation. Its use can be moral and ethical when the information protects or informs the public of danger. Business Disciplines and Public Relations
Social MediaSocial media as a marketing tool is versatile, far-reaching, fast, inexpensive, fosters brand awareness, and can improve customer service. Learning Objectives Illustrate how social media can be used in the promotional mix Key TakeawaysKey Points
Key Terms
Social MediaSocial media enables individuals and communities to co-create, share, and modify content in an interactive, Internet-based environment. Social media marketing refers to the process of gaining website traffic through social networking sites. It is driven by word of mouth. Results come from earned, as opposed to paid media. As a marketing tool, social media is distinct from industrial or traditional media, is versatile, far-reaching, fast, relatively inexpensive, fosters brand awareness, and improves customer service. Different Types of Social MediaLimited only by the imaginations of Internet Web designers, social media offers marketing vehicles, such as magazines, forums or discussion sites, weblogs, social blogs, microblogs, instant messaging, email, crowdsourcing distributed to a specific group of people, photographs or pictures, articles, video, and wikis or collaborated websites allowing additions, modifications, and deletions. Others include social networks, subscribed episodic audio, video, PDF or ePub podcasts downloaded or streamed, online telephonic services, and social bookmarking services that enable users to add, annotate, edit, and share bookmarked Web documents for future use and more. Social Media Functionality
There are six ways social media functions: a). collaborative–Wikipedia, blogs, and microblogs, such as Twitter; b) content communities (e.g.,YouTube); c) social networking sites (e.g., Facebook); d) virtual game worlds (e.g.,World of Warcraft; e) virtual social worlds (e.g.,Second Life); and f. voice-over IP or online telephone services. All can be consolidated into one profile via aggregation platforms. All can be woven into a marketing plan rich with sales promotions, public relations outlets,
advertising, and other elements of the "promotional mix." Search Engine and Keyword Optimization Search engine ranking, content quality, or the relevancy to search terms, backlinks and links have emerged as effective social media marketing tools. Strategic and Focused Social media used as a marketing tool provides useful and valuable measureable data on trends, consumer interaction, feedback, public opinion, brand activity, and customer buying habits. Its reach is precise and easily aimed at a targeted audience. Automated
information technologies, that are indigenous to social media platforms, optimize the production of goods and the delivery of services. Social Media Impacts Traditional AdvertisingThe Internet has overtaken television as the largest advertising market, as banner and pop-up ads showcase a vast array of products and services. QR codes, facilitated by mobile social media, online and in tandem with print advertising deliver extensive product and service information with a simple scan of a cell phone. Social Media Technology: Social media platforms continue to grow at an astounding rate. Internet and social media leaks frequently impact traditional advertising as ads often appear online earlier than they are scheduled to premiere and go viral. They are seen more quickly and by more users
without the time delays of traditional advertising methods. Social Media and Confidential Information The speed at which information spreads on the Internet has a downside. In 2010, the top three incidents faced by organizations involved sharing too much information in public forums, loss or exposure of confidential information, and an increased exposure to litigation. Legal damage is capable of devastating a business. Direct MarketingDirect marketing goes direct to customers via telephone, mail, fax, TV, radio, online, magazines, newspapers or face-to-face. Learning Objectives Distinguish direct marketing tactics from mass marketing tactics Key TakeawaysKey Points
Key Terms
Direct marketing allows businesses and nonprofit organizations to advertise and market directly to customers via a variety of print and electronic mediums. Direct marketing campaigns focus on the consumer, statistical data generated via outreach and the accountability of the marketer. The message is based upon a "call to action" delivered directly to predisposed consumers. Direct Marketing PopularityIn 2010, direct marketing accounted for 8.3% of the total U.S. gross domestic product. The industry employs approximately 1.4 million people directly and another 8.4 million in related jobs and businesses. Commercial and nonprofit businesses spent approximately $150 billion on marketing, accounting for more than half of all U.S. advertising expenditures for the year. Characteristics of Direct MarketingDirect marketing targets individual members of defined consumer groups. It distinguishes itself from mass marketing by virtue of the distance between the manufacturer and the ultimate end user, seeking to deliver a specific "call to action" to consumers. Reduced mail cost and the elimination of "brick and mortar" retail stores have helped to decrease the cost of direct marketing campaigns. The practice also attempts to establish a personal relationship with the customer because of direct purchases and customer service on a "first name" basis. Direct marketing has cleared the way for a number of competitors to enter markets on a global level and has increased product offerings to fill niche markets. Customer ConnectionToll-free 1-800 numbers, loyalty marketing programs, magazine subscription cards, mail order catalogues, and credit card rewards programs laid the foundation for direct marketing's success. In addition, improvements in traditional delivery techniques and the introduction of new technologies have accelerated this growth. Customers can now buy products without contact from a salesperson. Product information is delivered directly and impersonally. Questions can be answered through toll-free numbers, FAQ pages on websites or via email. Types of Direct Marketing Tools There are many different direct marketing tools, including direct mail, telemarketing, couponing, direct response TV and radio, face-to-face selling, community campaigns, and grassroots campaigns. The Benefits and Shortcomings of Direct Marketing Techniques Direct marketing response is track-able and measurable regardless of the delivery medium. It provides valuable and reliable consumer and sales data, as well as clear, quantifiable success metrics for analysis. Direct Marketing: Companies can engage in marketing outreach through direct marketing. A mailed letter is an example of direct marketing. Licenses and AttributionsCC licensed content, Shared previously
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What includes advertising personal selling sales promotion public relations and direct marketing?The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives.
What are the roles of advertising direct marketing and public relations?What are the roles of advertising, direct marketing, and public relations when a company engages in a promotional mix? Advertising and direct marketing create awareness of a business's product, while public relations help cultivate a favorable image and brand recognition.
Which market strategy uses advertising personal selling and publicity methods?Promotional strategy is the plan for using the elements of promotion—advertising, public relations, sales promotion, personal selling, and social media—to meet the firm's overall objectives and marketing goals.
What are three elements of the promotional mix?Three of the five promotional elements—advertising, sales promotion, and public relations—are often said to use mass selling. Mass selling refers to the promotional element that reaches out to groups of prospective buyers, rather than making individual contact with each potential buyer.
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