Chapter 13: Promoting Products (Part 1)

1. The Internet has created a new marketing phenomenon called viral

marketing. Some business experts claim viral marketing is electronic
word of mouth.
2. Others claim viral marketing differs because the originator & those who
spread the message have a vested interest in recruiting others to
spread the word.
3. Ease of use of the Internet combined with other sources for electronic
communication such as text messaging makes these forms of media
ideal for viral marketing.
4. Many people delete e-mail advertisements and often spam filters
prevent people from even receiving them. In viral marketing the
message is coming from a friend, so it is opened.
5. Good communication is a crucial element in a companys efforts to
build profitable customer relationships.
6. A companys promotion mixits marketing communications mix
consists of the tools the company uses to communicate customer
value and build customer relationships persuasively.
7. The whole marketing mix must be integrated to deliver a consistent
message & strategic positioning.
8. Five major promotion tools: advertising, sales promotion, personal
selling, public relations, and direct marketing.
9. In past decades, marketers perfected mass marketing: selling highly
standardized products to consumer masses. They developed effective
mass media techniques to support these strategies.
10.
Today, no other area of marketing is changing so profoundly as
marketing communications.
11.
Several major factors are changing the face of todays marketing
communications: consumers are better informed and use the Internet
to exchange brand-related information and marketers are shifting away

from mass marketing.

12.
New communications technologies give companies new media
for interacting with targeting consumers who have more control over
the nature and timing of messages they choose to send & receive.
13.
Targeted marketing & the changing communications
environment are giving birth to a new marketing communications
model: television, magazines & other mass media are declining.
14.
Companies are doing less broadcasting and more narrowcasting.
15.
Some advertising industry experts predict a doom-and-gloom
chaos scenario in which the old mass media communications
model will collapse entirely.
16.
Consumers, especially younger ones, appear to be turning away
from the major television networks in favor of cable TV or altogether
different media.
17.
Large advertisers are shifting away from network TV to more
targeted, cost-effective, interactive media.
18.
Conflicting messages from different sources can result in
confused company images, brand positions, and customer
relationships. Mass media advertisements say one thing while a price
promotion sends a different signal.
19.
These communications often come from different parts of the
company:
* Ads are planned & implemented by the advertising department or an
agency
* Personal selling communications are developed by sales
* Specialists are responsible for public relations and promotional
events.
20.
More companies are adopting integrated marketing
communications. Under this concept the company integrates its many
communications channels to deliver a clear, consistent, and
compelling message about the organization and its brands.
21.
IMC calls for recognizing contact points where the customer may
encounter the company & its brands. Each brand contact will deliver a

message, whether good, bad, or indifferent.

22.
IMC ties together all company messages & images because
different media play unique roles in attracting, informing, and
persuading consumers.
23.
Some companies appoint marketing communications directors,
with overall responsibility for company communications efforts. It
places the responsibility in someones hands to unify the companys
image as it is shaped by thousands of company activities. The starting
point is an audit of all the potential interactions target customers may
have with the company.
24.
Target audience heavily affects what will be said; who will say
it and how, when and where it will be said.
25.
Determining the Communication Objective: the marketing
communicator must decide what response is sought, in most cases, the
purchase.
26.
The communicator needs to know where the target audience
stands in relation to the product and to what state it needs to be
moved.
27.
A target audience may be in any of six states: (1) awareness; (2)
knowledge; (3) liking;(4) preference; (5) conviction (6) purchase.
28.
Selecting Communication Channels - two broad types of
communication channels are personal and nonpersonal.
29.
Nonpersonal communication channels are media that carry
messages without personal contact or feedback media.
30.
Factors that make a source credible:
* Expertise communicators perceived authority needed to back the
claim
* Trustworthiness - how objective and honest the source appears to be
* Likability - is how attractive the source is to the audience
31.
Sales Method: Many companies set their promotion budget at a
certain percentage of current or forecasted sales

32.
Competitive Parity Method: Some companies watch competitor
advertising or get promotion spending estimates from publications or
trade associations.
33.
For hotels, restaurants & other hospitality companies, advertising
represents the largest expenditure item in their budgets.
34.
Advertising can reach masses of geographically dispersed buyers
at a low cost per exposure.
35.
Personal selling is the most effective tool at building buyer
preference, conviction, and purchase. It involves personal interaction
between two or more people, allowing each to observe the others
needs and characteristics and make quick adjustments.
36.
Sales promotion can dramatize product offers & boost sagging
sales; however, short-lived effects dont build long-run brand
preference.
37.
Public relations can reach many prospects who avoid salespeople
& advertisements. A relatively new addition is the infomercial, a hybrid
between advertising and public relations.
38.
Promotional tools vary in their effects at different stages of buyer
readiness. Advertising plays a major role in the awareness and
knowledge stages.
39.
Closing the sale is accomplished primarily with sales calls and
sales promotion. These are high-costs and should focus on later stages.
40.
Product Life-Cycle Stage: effects of promotion tools also vary
with stages of the product life cycle: introduction, growth, mature,
decline.
41.
The first step an advertising program is to set advertising
objectives based on information about
the target market, positioning, and marketing mix.
42.
If your property or service is inconsistent with the claims made,
you will probably do little more than increase the number of
dissatisfied guests.

43.
Another decision is how much will be spent for strategic and how
much for tactical advertising. Tactical advertising deals with sales
promotions and often includes price discounts.
44.
When times are tough, there is a tendency to cut the advertising
budget, which can lead to continued poor sales and the eventual
decline of the business.
45.
To gain & hold attention, todays ad messages must be better
planned: more imaginative, entertaining, and rewarding to consumers.
46.
The advertiser must decide the amount of advertisement
exposure: reach measures percentage of people exposed to the ad
campaign and frequency measures how many times the average
person is exposed to the message.
47.
The advertiser must decide how to schedule advertising over the
course of a year. Continuity means scheduling ads evenly in a given
period while pulsing is scheduling ads in bursts.
48. To spend a large advertising budget wisely, advertisers must: define

their advertising objectives, develop a sound budget, create a good

message, make media decisions, evaluate the results