The Eight Major Modes Of Communication

According to Kotler (2009), direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen.

Different number of channels like mail, mobile devices, web sites and TV are being used by direct marketers to reach customers. The marketers attract their customers by sending birthday cards and small premiums whenever possible. According to an article (What are Marketing Channels, 2010), a company’s success depends on how strong its marketing channels are. If the company’s marketing channels are poor, it might find it difficult to reach out to its customers and will incur loss and poor sales.

Companies that follow direct marketing technique build a strong relationship with their customers and the sales produced through this technique have shown more profitable results to the company.

Also, I understand that, with higher the number of direct marketing channels, the company’s marketers can identify a cost effective approach making their marketing strategy less visible to their competitors.

2. _____ consist(s) of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

According to Kotler (2009), sales promotion consist(s) of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

Sales promotion tools offer incentives to buy and consist of tools for consumer promotion like samples, coupons, prizes, free trials and cross-promotions. It also includes trade promotions and business and sales-force promotion. According to an online article (Sales Promotion, 2010) says that the sales promotion is directed at the end customers. It is important to know that sales promotion is as important as advertising. Consumers, resellers and sales force are targeted by sales promotion to increase business profits.

The company uses sales promotion tools to draw a stranger and quicker buyer response. Sales promotion can be used for short run effects such as to dramatize the product offers and boost sagging sales.

3. Some companies set their promotion budget to achieve share-of-voice parity with competitors. This is called the _____ method.

Some companies set their promotion budget to achieve share-of-voice parity with competitors. According to Kotler (2009), this is called competitive-parity method.

The arguments for the method are

It prevents promotional wars

The industry’s wisdom is represented by the competitors’ expenditure

However, none of the above is actually valid.

According to an online article (Jon Miles, 2008) says that competitive-parity marketing budgeting method is used by companies to match their budgets with that of their competitors’ budgets. This is done by the company by monitoring the competitor’s activities and research estimates from trade sources.

4. A program designed to promote or protect a company’s image or its individual products is called _____.

According to Kotler (2009), a program designed to promote or protect a company’s image or its individual products is called public relations and publicity.

Through these programs, the company can gain credibility and have the ability to catch the buyers off the guard. An online article (Fashion Public Relations, 2010) says that the purpose of public relations is to make sure that the company always maintains a good relationship with its employees, client, and competing business.

5. _____ is/are any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

According to Kotler (2009), advertising is/are any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising is the best cost-effective way to educate people about the company’s products and services. Large scale advertising speaks a lot about the company’s size, power and success. They give an opportunity for dramatizing the company and its products. The company also builds its long term image through advertising.

Exercises

1. Describe the eight major modes of communication in the communications mix.

The company needs to decide on the mix based on the following eight communication tools:

Advertising

Sales promotion

Events and experiences

Public relations and publicity

Direct marketing

Interactive Marketing

Word-of-mouth Marketing

Personal selling

(a) Advertising

According to Kotler (2009), advertising is any any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising is the best cost-effective way to educate people about the company’s products and services. Large scale advertising speaks a lot about the company’s size, power and success. They give an opportunity for dramatizing the company and its products. The company also builds its long term image through advertising. The qualities of advertising include public presentation (offers a kind of legitimacy to the product and suggests a standardized offering), pervasiveness (One can repeat message and compare the messages with that of the competitors) and impersonality. Also, there are relatively newer advertising media- like the advertorials -print ads that have editorial content, infomercials – TV commercials etc.

(b) Sales Promotion

According to Kotler (2009), sales promotion consist(s) of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

Sales promotion tools offer incentives to buy and consist of tools for consumer promotion like samples, coupons, prizes, free trials and cross-promotions. It also includes trade promotions and business and sales-force promotion. The company uses sales promotion tools to draw a stranger and quicker buyer response. Sales promotion can be used for short run effects such as to dramatize the product offers and boost sagging sales.

(c) Events and experiences

According to Kotler (2009), events are the company sponsored activities and programs that are created to improve and encourage daily interactions.

(d) Public relations and publicity

According to Kotler (2009), a program designed to promote or protect a company’s image or its individual products is called public relations and publicity.

Through these programs, the company can gain credibility and have the ability to catch the buyers off the guard.

(e) Direct marketing

According to Kotler (2009), direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen.

Different number of channels like mail, mobile devices, web sites and TV are being used by direct marketers to reach customers. The marketers attract their customers by sending birthday cards and small premiums whenever possible.

(f) Interactive Marketing

According to Kotler (2009), many programs are conducted directly or indirectly to raise awareness among the company’s customers. This is referred to as interactive marketing.

(g) Word-of-mouth Marketing

This type of marketing includes person-to-person oral or written communications, chat rooms and blogs that relate to using the company’s products and services.

(h) Personal selling

This is the most effective tool at the later stages of the buying process, particularly in building buyer preferences, conviction, and action. It includes face to face interactions, making presentations and procuring orders.

2. Name four common criticisms of direct marketing.

According to Kotler (2009), the direct marketers always enjoy a good relationship with their customers. However, a darker side emerges. Kotler (2009) discusses the following public and ethical issues in direct marketing.

(a) Irritation

Many people are not interested in direct marketing solicitations. The dinnertime or late night phone calls often irritate the customers. Also, poorly trained callers and computerized calls by auto-dial recorded-message players are bothersome to customers.

Unfairness

There are many cases where the direct marketers take advantage of less sophisticated buyers or prey the vulnerable and especially the elderly.

Deception and fraud

Customers are misled by direct marketers through mails. Product size and performance claims may be exaggerated. Fraudulent investment scams and phony charities are complained about to government agencies every year. By the time people become alert of these cases, the frauds flee to other locations. Also, an online article (Public and Ethical Issues in Direct Marketing, 2010) says that there are some organizations who in the name of surveys ask questions to identify donors.

Invasion of privacy.

Every time a customer orders a product by mail or telephone, apply for a credit card, their name, address and purchasing behavior may be added to several company databases. By this marketers might know more about the customers lives and might take unfair advantage.

These issues are being addressed by direct marketers. If not, these will lead to negative consumer attitudes and lower response rates. I understand that honest and well-designed marketing plans and offers are in great need in businesses today.

3. List and discuss three elements that explain how many exposures, E, will produce a level of audience awareness, A.

According to Kotler (2009), the three elements that explain how many exposures, E, will produce a level of audience awareness, A, are reach frequency and impact. The advertiser’s task is to choose a message and a medium to carry the message. Media selection involves finding the most cost effective media to deliver the exposures to the target audience. If the advertiser seeks a product trial rate T, it will be necessary to achieve a brand awareness level of A. the next task is to find out how many exposures E will produce a audience awareness of A. the effect of exposures on audience awareness depends on the exposures’ reach, frequency and impact.

Reach (R)

According to Kotler (2009), it refers to the number of different persons or households exposed to a particular media schedule at least once during a specified time period.

Frequency (F)

According to Kotler (2009), this refers to the number of times within the specified time period that an average age person or household is exposed to the message.

Impact (I)

It is the qualitative value of an exposure through a given medium.

The relationship between reach, frequency and impact is captured by the following.

Total number of exposures, E = R * F. This is called GRP (gross rating points)

Weighted number of exposures (WE) is the multiple of reach, average frequency and average impact, WE = R * F * I.

It is important for the marketers to understand that the reach is important when introducing new products, extending existing brands into the market and frequency is important when there are many competitors, high consumer resistance or frequent-purchase cycle.

4. What are the five major decisions, known as “the five M’s” that marketing managers must make in developing an advertising campaign?

According to Kotler (2009), advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising is the best cost-effective way to educate people about the company’s products and services. Large scale advertising speaks a lot about the company’s size, power and success. They give an opportunity for dramatizing the company and its products. The company also builds its long term image through advertising. The qualities of advertising include public presentation (offers a kind of legitimacy to the product and suggests a standardized offering), pervasiveness (one can repeat message. Compare the messages of various competitors), amplified expressiveness (opportunity for dramatizing the company and its products), impersonality (audience not obligated to pay attention or respond to advertising). Also, there are relatively newer advertising media- like the advertorials -print ads that have editorial content, infomercials – TV commercials etc.

In developing an advertising program, marketers must identify the target market and the buyer’s motive first and then make the five major decisions known as the five M’s.

Mission

Money

Message

Media

Measurement

Mission: Setting advertising objectives

Prior decisions on target market, brand positioning and marketing programs are taken to set the advertising objective.

According to Kotler (2009), an advertising objective is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time.

They are of following types

Informative advertising – This type is in pioneering stage of a product category where primary demand has to be built.

Persuasive advertising – This type is important in competitive stage where the main objective is to increase demands for a brand. Comparative advertising is used in some places where there is comparison of brand attributes.

Reminder advertising – This is important for mature products. One related form in reinforcement advertising, which seeks to assure current customers that they have made the right choice.

In an article, (Clayton Reeves, 2010) says that to determine the advertising mission of the company, quantitative measures can be taken to increase awareness about the company brand among people.

(b) Money: Deciding on Budget

Advertising has a carryover effect that lasts for a very long time. It is an investment that builds of an intangible asset called brand equity. The entire advertising cost is written off in the first year. This reduces the company’s reported profits and hence limits the number of launches of new products.

Five factors to be considered when deciding the advertising budget are as follows.

Stage in product life cycle. New products normally receive large budgets to build awareness among customers.

Market share and consumer base. Companies that have high market shares require less advertising expenditure as a percent of sales.

Competition and clutter

Advertising frequency. Refers to the number of repetitions needed

Product substitutability. Refers to the fact that commodity class need heavy advertising.

(c) Message: Choosing the message

Advertising is definitely an important creative process. In the article, (Clayton Reeves, 2010) says that messages might be in the form of slogans, themes and gimmicks to attract customers. Message can be generated from the product ‘benefit’ message that should be decided as a part of developing a product concept. The messages can be implemented in any form as long as corresponds to what the company stands for.

(d) Media: Message Evaluation and selection

This refers to the media that is used to communicate the message. This can be in the form of TV, radio, telephone, person-person contact and mail. In the article, (Clayton Reeves, 2010) says that their efficiency and cost is very important and must be measured with metrics. An advertising program can be made or destroyed with the media that is chosen.

(e) Measurement: Message Execution

The effect of the program on the intended audience needs to be measured. This can be done by measuring the sales of the company for a particular time period. In the article, (Clayton Reeves, 2010) says that it is often difficult to measure the actual impact of the advertisements on the interest of the customer.

5. What are the seven design elements that effective Web sites feature? Define each of these.

According to Kotler (2009), the company must design Web sites that express the company’s mission, its purpose, history and vision. The website must attract customers and encourage repeated visits on its first viewing. Hence companies must pay close attention to context and content and constant change. The seven key design elements that effective Web sites feature are discussed below.

Context

This element refers to the layout and the design of the web pages in the web site.

Content

This refers to the text, pictures, sound and video that are included in the site.

Community

This element refers to how the site would enable user-to-user communication.

Customization

This element refers to the sites ability to tailor itself to the different users who access the site. It also allows different users to personalize or customize the site according to their needs.

Communication

This element refers to how the site would enable site-to-user, user-to-site, or two-way communication.

Connection

This design element refers to the degree that the site is linked to other sites.

Commerce

This element refers to the sites ability to enable commercial transactions.