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Time (Lead Time)– the lag from ordering an item until it is received and ready for use/sale•Dependability– the consistency of replenishment
•Communication– a two-way link b/n buyer and seller that helps in monitoring service and anticipating future needsChapter 18: IMC and Direct Marketing•Six Elements of Communication Process: source, message, channel of comm, receiver, encoding, and decoding•Five elements of promotional mix oAdvertising – efficient for reaching large numbers of people, but has high costsoPersonal Selling – immediate feedback and very persuasive, but very expensiveoPublic Relations – most credible source for consumers, but hard to get media cooperationoSales Promotion – flexible and effective in short run, but abused, duplicated, and can lead to promotional warsoDirect Marketing – prepared quickly and strengthens buyer/seller relationship, but expensive and has declining customer response•Promotional Mix Thru Product Life CycleoIntro: to inform (advertising, sales promotion)oGrowth: to persuade (personal selling)oMaturity: to remind (direct mail, sales promo in forms of discounts/coupons/events)oDecline: to phase out (little money spent on promo)•Promotion Decision ProcessoPlanning (Developing the promo program): identify target audience, set objectives/budgets, design/schedule promoImplementation (Executing the promo program): pretest and carry out promooEvaluation (Assessing the promo program): posttest the promo and make changesChapter 19: Advertising, Sales Promotion and Public Relations•Advocacy Ads– state position of company on an issue•Pioneering Institutional Ads – announcements a/b what a company is, what it can do, or where it’s located•Competitive Institutional Ads– promote advantages of a product class over another; used in markets where different classes compete for same buyers•Reminder Institutional Ads – bring company’s name to consumer’s attention again•Developing the advertising program: Identify Target Audience, Specify Advertising Objectives, Set Advertising Budget, Design Ad•Media Alternatives: oTV (large audiences, sight/sound/motion; high cost for short ads)oRadio (low cost, sound/humor; no visual element, short exposure)oMagazines (long life; high cost, takes time to place ad)oNewspaper (cheap, saved, flexible; short life, compete for attention)oYellow Pgs (24/7; hard to keep up-to-date)oInternet (video/audio, interactive; effectiveness uncertain, large files/time for load)oOutdoor (cheap; message must be short and simple)oDirect Mail (complex/personal info; poor image [junk mail], expensive)•Post-testing the AdvertisingoAided Recall – determines how consumer was exposed (reading, viewing, listening)oUnaided Recall – “What ads do you remember seeing?”
oAttitude Tests – after ad campaign, consumers’ attitudes (and changes) are measuredoInquiry Tests – additional info/samples/premiums are offeredo