Pushing strategy promotional effort by the seller

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Pushing strategy - Promotional effort by the seller directed to members of the marketing channel rather than final users Pulling strategy - Promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel Timing affects the choice of promotional strategies Prior to the actual sale, advertising is usually more important Selling activities are more important than advertising at the time of purchase 6. How marketers budget for and measure the effectiveness of promotion. Direct sales results test - Based on the specific impact on sales revenues for each dollar of promotional spending
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Indirect evaluation - Concentrating on quantifiable indicators of effectiveness such as recall and readership Importance of Teamwork Successful implementation of IMC requires everyone involved in every aspect of promotion to function as a team Teamwork involves both in-house resources and outside vendors IMC challenges the traditional role of the outside advertising agency Promotion - Function of informing, persuading, and influencing the consumer’s purchase decision Marketing communications - Messages that deal with buyer-seller relationships Product placement - Marketer pays a motion picture or television program owner a fee to display his or her product prominently in the film or show Publicity - Nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium Electronic Direct Marketing Channels Represents almost 8 percent of total advertising spending Includes Web advertising and e-mail notices Delivers data instantly at lower costs compared to traditional programs Benefits: Deliver data instantly to direct marketers & help them track customer buying cycles quickly The most common way of establishing a promotional budget is the percentage of sales method. Task-Objective Method - develops a promotional budget based on an evaluation of the firm’s promotional objectives 3 Areas in which Promotion exerts influence - Society, Business, & the Economy Chapter 16 Advertising- Paid nonpersonal communication through various media with the purpose of informing or persuading members of a particular audience World’s leading advertisers each spend more than $3 billion annually on U.S. advertising 1. 3 major advertising objectives & the 2 basic categories of advertising. Product advertising - Nonpersonal selling of a particular good or service
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Institutional advertising - Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency o More broad than just corporate advertising Objectives o Informative advertising - Seeks to develop initial demand for a good, service, organization, person, place, idea, or cause o Persuasive advertising - Attempts to increase demand for an existing
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