Page 481 - Foundations of Marketing

448 Part 6 | Promotion Decisions

Chapter Review

1. Describe the nature of integrated marketing objectives, and policies; characteristics of the target market;
communications. characteristics of the product; and cost and availability of
promotional methods. Marketers also consider whether to
Integrated marketing communications is the coordination of
use a push policy or a pull policy. With a push policy, the pro-
promotion and other marketing efforts to ensure maximum
ducer only promotes the product to the next institution down
informational and persuasive impact on customers.
the marketing channel. Normally, a push policy stresses per-
2. Examine the process of communication. sonal selling. Firms that use a pull policy promote directly to
consumers, with the intention of developing strong consumer
Communication is a sharing of meaning. The communica-
demand for the products. Once consumers are persuaded to
tion process involves several steps. First, the source translates
seek the products in retail stores, retailers go to wholesalers
meaning into code, a process known as coding or encoding.
or the producer to buy the products.
The source should employ signs or symbols familiar to the
receiver or audience. The coded message is sent through a 6. Understand word-of-mouth communication and
communications channel to the receiver or audience. The how it affects promotion.
receiver or audience then decodes the message and usually
Most customers are likely to be influenced by friends and
supplies feedback to the source. When the decoded message
family members when making purchases. Word-of-mouth
differs from the encoded one, a condition called noise exists.
communication is personal, informal exchanges of commu-
3. Understand the role and objectives nication that customers share with one another about prod-
of promotion. ucts, brands, and companies. Customers may also choose to
go online to find electronic word of mouth about products or
Promotion is communication to build and maintain relation-
companies. Buzz marketing is an attempt to incite publicity
ships by informing and persuading one or more audiences.
and public excitement surrounding a product through a cre-
Although promotional objectives vary from one organization
ative event. Viral marketing is a strategy to get consumers to
to another and within organizations over time, eight primary
share a marketer’s message, often through e-mail or online
objectives underlie many promotional programs. Promotion
videos, in a way that spreads dramatically and quickly.
aims to create awareness of a new product, a new brand, or an
existing product; to stimulate primary and selective demand; 7. Understand product placement promotions.
to encourage product trial through the use of free samples,
Product placement is the strategic location of products or
coupons, limited free-use offers, contests, and games; to
product promotions within television program content to
identify prospects; to retain loyal customers; to facilitate
reach the product’s target market. In-program product place-
reseller support; to combat competitive promotional efforts;
ments have been successful in reaching consumers as they are
and to reduce sales fluctuations.
being entertained rather than in the competitive commercial
4. Explore the elements of the promotion mix. break time periods.
The promotion mix for a product may include four major pro- 8. Examine criticisms and defenses of promotion.
motional methods: advertising, personal selling, public rela- Promotional activities can help consumers make informed
tions, and sales promotion. Advertising is paid nonpersonal purchasing decisions, but they have also evoked many criti-
communication about an organization and its products trans- cisms. Promotion has been accused of deception. Although
mitted to a target audience through a mass medium. Personal some deceiving or misleading promotions do exist, laws,
selling is paid personal communication that attempts to government regulation, and industry self-regulation mini-
inform customers and persuade them to purchase products mize deceptive promotion. Promotion has been blamed for
in an exchange situation. Public relations is a broad set of increasing prices, but it usually tends to lower them. When
communication efforts used to create and maintain favorable demand is high, production and marketing costs decrease,
relationships between an organization and its stakeholders. which can result in lower prices. Moreover, promotion helps
Sales promotion is an activity or material that acts as a direct keep prices lower by facilitating price competition. Other
inducement, offering added value or incentive for the prod- criticisms of promotional activity are that it manipulates con-
uct, to resellers, salespeople, or consumers. sumers into buying products they do not need, that it leads to a
more materialistic society, and that consumers do not benefit
5. Examine the selection of promotion mix
sufficiently from promotional activity to justify its high cost.
elements. Finally, some critics of promotion suggest that potentially
The promotional methods used in a product’s promotion mix harmful products, especially those associated with violence,
are determined by the organization’s promotional resources, sex, and unhealthy activities, should not be promoted at all.

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