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| Question | Answer |
| Communication process | "Communication is the process of establishing commonness or oneness of though between a sender and receiver" Schramm |
| Communications model | Encoding: the way the message is framed Channel the way the message is delivered; lots of possibilities The way the message is interpreted by the receiver (decoding); dependent on receiver’s perceptions Feedback is the response given to the sender; could be satisfactory indicating understanding, desired action or unsatisfactory making the sender go through the loop again Noise is all stuff going on while the message is being send and received; e.g. physical noise; distractions etc In designing effective communications, marketers have to be aware of the factors identified in this model |
| Key elements of communications | *The target audience- who we are aiming at; consider their needs, readiness to buy and response stage * communications objectives- what we are trying to achieve *the message- content, structure and format *the ways the tools of the mix are used and combined *feedback (evaluation)- measurement |
| The promotional mix | Tools that the company uses to communicate persuasively customer value and build customer relationships (Kotler). |
| Elements/ techniques of promotional mix | Advertising = non-personal presentation and promotion Sales promotions = short term incentives to encourage purchase Public relations is building good relations with the company’s various publics Personal selling is personal presentation Direct marketing is direct connections with carefully targeted individual consumers both to obtain a immediate response and to cultivate lasting customers |
| Buyer stage promotional mix | AIDA- Awareness / interest / desire / action Interest and desire separate things- spark someone’s interest but doesn't necessarily mean they desire something It's about taking the customer on a journey |
| Push vs Pull communication | B2C business has to consider its use of a push or pull strategy in marketing communications with B2B intermediaries Push strategy- focuses on communications activity with channel members and incentivises each member to sell on quickly to the next with communication flowing from member to member. Here personal selling and trade promotions are important Pull strategy focuses on communication activity with the consumer through advertising, sales promotions and point of sales to pull product through the chain |
| Types of advertising | DRIP- Differentiate / Inform / Remind / Persuade Examples: John Lewis targets- DRIP Macmillian- targets AIDA |
| Buyer readiness / response | Buyers go through stages of response to communications: awareness- knowledge- liking- preference- conviction- purchase Buyer readiness stages categorise consumers in terms of how close they are to making a purchase or a decision. |
| PR- Publics | General Financial Media Internal Commercial Authority |
| PR objectives / techniques | To develop and maintains corporate goodwill To develop and maintain suitable relationships Techniques: Advertising Press relations Events |
| Media selection | Broadcast- print= outdoor- digital- instore- other Timing Competitive environment Target audience Geographic focus Budget Campaign objectives |
| Ad and disad of PR vs Advertising | Ad: Credibility Reach Cost Disad: Uncontrollability Key advantage of advertising in terms of controllability |
| Personal Selling | Interpersonal communication tool which involves face to face activities undertaken by individuals, often representing an organisation, in order to inform, persuade or remind an individual or group to take appropriate action as required by the sponsor’s representative (Fill) Extensively used in B2B markets |
| Personal selling ad/ disad | Ad: Impact- greater chance of engaging prospect than advert Precision-Targeting, can offer specific information that the prospect wants because interactive Cultivation- develop personal relationships. And build long lasting relationships. Disad: Cost- labour intensive and therefore costly Labour and time intentsive |
| Sales representative tasks | Monitoring competition Maintaining relationships Persuasion Information gathering Informing customers |
| Sales promotion example | Chicago town pizzas- Discover the codes in special edition Deep Dish pizzas. Enter 5 codes to claim a Slice Sabre or 9 codes for a Super Slice Sabre ( fancy pizza cutter) Pot noodle spinning fork- designed to reposition pot noodle brand |
| Sales promotion definition | Range of tactical marketing techniques designed within a strategic marketing framework to add value Used now to encompass relationship and franchise building techniques e.g: tesco clubcard |
| Manufacturers trade promotions to channel members | Ad: * increase stock levels *gain more and better shelf space *new product launch *counter competition Here a manufacturer of a product has to incentivise the intermediaries in the channel of distribution to purchase his product and to sell it on to the next stage of the channel Sales promotions to intermediaries or TRADE promotions are very effective for these types of PUSH objectives |
| Retailer sales promotions….to consumers | Ad: Increase store traffic Increase amount of purchase Increase store loyalty Retailers compete to for consumer’s business as manufacturers compete amongst themselves for retailers business So retailers such as supermarkets will run sales promotions too Store cards come into play as they provide a way to create tailored sales promotions for individual customers through rolling offers and coupons |
| Manufacturer sales promotions…to consumers | Ad: Encourage trial Expand usage Attract new consumers Manufacturers clearly need the support of retailers but they also need to stimulate demand and interest with consumers using a PULL communication strategy. |
| Consumer promotions | Wide range: coupons, price packs, point of purchase displays, competitions, samples. premiums COUPONS: linked to loyalty schemes eg. Tesco clubcard, via mail, at point of sale, in press. PRICE PACKS: money off products, indicated on product or shelf eg. BOGOF PREMIUMS: goods offered with purchsed good eg. McDonalds Happy Meals Competitions: Caution required, sound planning |
| Direct marketing | Connecting directly with carefully targeted segments of individual consumers, often on a one-to-one, interactive basis. Kotler 2013 |
| Key elements of Direct Marketing | Personalised or customised message- to provoke a change in behaviour The communication is direct and designed to solicit a response through a call to action Use of detailed databases Immediate response (call to action) Use of a variety of media Measurability |
| Forms of direct marketing | Direct Marketing is a marketing system and communication technique based on individual customers – its about knowing customers and focusing on them rather than just ‘selling’ your product Forms: *catalogue marketing *telemarketing *online marketing *direct mail marketing |
| Media types | Direct Mail Telephone Email Direct response press adverts |
| Direct marketing strengths / drawbacks | Strengths: Can be highly targeted intimate Responsive Measurable Drawbacks: Viewed as intrusive Can be expensive Negative connotations – ‘downmarket’ A good database needs good management |
| Use in the promotional mix | DM can be used at different stages in the relationship with the customer Initiation – the stage of winning a customer for the first time can be problematic. DM can be used to target prospects based on existing customer profiles or on bought list to acquire customers for the first time. Often the DM approach is combined with advertising and sales promotions to overcome the resistance that might be experienced on first purchase Most direct marketing is used for building the relationship with existing customers. Why? Because the organisation has information on the customer purchasing history, potentially on preferences, likes and dislikes and may even have given permission to be directly contacted with specific details of relevant offers The customer is likely to have confidence in the supplier and respond positively Finally, combination selling involves using contact information gathered through other promotional activities e.g. competitions in sales promotions to build a database or mailing list for DM purposes |
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