CLEP Principles of Marketing Study Notes

To remind remind them about its availability 3

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to remind - remind them about its availability . 3. Promotion Budget – 4 Ingredients of Promotion Mix: 1. Advertising - a paid form of nonpersonal communication about a company or its products that reaches the target audience through a mass medium. I nvolves using a mass medium such as television, radio, newspapers, magazines, direct mail , etc. The cost per person reached through advertising is low compared to personal selling, but it has less persuasive impact. 2. Personal Selling - involves informing customers and persuading them to purchase products through personal communication . Can include telemarketing, door-to-door salesmen , etc.. The cost per person reached through personal selling is much higher than advertising, but it often has a greater impact and provides immediate feedback . 3. Publicity - nonpersonal communication in news story form about an organization or its products, that is transmitted through a mass medium at no charge. Publicity is similar to Advertising in that it is a form of nonpersonal communication through a mass medium about the company or its products. However, unlike advertising, the company does not pay to have it transmitted, and it cannot always be controlled ; publicity can be good as well as bad. Examples of publicity are magazine and news stories about new products or changes in an organization. 4. Sales Promotion - activity or material that offers added value, or incentive for a product. Examples of sales promotions include coupons , bonuses, and contests used to enhance the sales of a product. "Sales promotion" should not be confused with "promotion." Promotion includes Sales Promotion, as well as Advertising, Personal Selling, and Publicity. Communication , used in the context of promotion, is the transmission of information. Communication process can be broken down into 5 steps : 1. A Source for the Message - Process begins with a source . A source is a person, group, or organization that has a meaning it is trying to share . 2. An Encoded Message- convert the meaning being conveyed into a series of signs that represent ideas or concepts or symbols. Usually, an organization will encode the meaning in a combination of words and pictures . To share meaning, the signs need to be familiar to the audience; for example, the language should be one that the receiver understands. 3. A Medium of Transmission - to share a coded meaning with the receiver or audience, a source must select a medium of transmission. Anything that carries the message from the source to the receiver; i.e. a person's voice, a letter, television, radio, etc. source sends an encoded message via a medium of transmission to a receiver. 4. A Decoded Message - Receiver then decodes the message, or converts the signs in the encoded message into concepts and ideas.
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