Promotional Mix - the Five Elements of the Promotional Mix - Review Figure 17-2 and read about them to understand payments, strengths, weakness, plus read how each is executed and key differences such as between advertising and publicity.
Mass - used with groups of prospective buyers vs. Customized interaction - between a seller and prospective buyer
Advertising - Mass - (pmt) Fees paid for space or time - (strength) efficient means for reaching large numbers of people - (weakness) high abolute costs, difficult to receive good feedback
Personal Selling - Customized - (pmt) fees paid to salespeople as either salaries or commissions - (str) immediate feedback, very persuasive, can select audience, can give complex info - (weak) extremely expensive per exposure, messages may differ between salespeople
Public relations - Mass - (pmt) no direct payment to media - (str) often most credible source in the consumer's mind - (weak) difficult to get media cooperation
Sales promotion - Mass - (pmt) wide range of fees paid, depending on promotion selected - (str) effective at changing behavior in short run, very flexible - (weak) easily abused, can lead to promotion wars, easily duplicated
Direct Marketing - Customized - (pmt) cost of communication thru mail, tele, computer - (str) messages can be prepared quickly, facilitates relationship w/ cx - (weak) declining cx response, database mgmt is expensive
Advertising involves mass media (tv, radio, magazines) and is any paid form of nonpersonal communication about an organization, service, or idea by an identified sponsor. Disadvantage of Advert. is costly and hard to gauge effectiveness of message due to lack of feedback.
Publicity is a nonpersonal, indirectly paid presentation of an organiz, product, or service. It can take the form of a news story, editorial, or prod announcement. Key diff between Ad and Pub and personal selling is the "indirectly paid" dimension. W/ publicity a company does not pay for space in a mass medium (tv, radio) but attempts to get the medium to run a favorable story on the company. An advantage of pub is credibility. Disadvantage is lack of the user's control over it. ie. company invites media for press coverage of a store grand opening or new product release, but there is no guarantee that a story will result, is positive, favorable, or who will be in the audience. Blogs, social media have added uncontrollable public discussion of any company activity (think #hateChicAFil)