Business in the Global Economy

Any form of communication used to inform, persuade, or remind

Its everywhere!Influences knowledge, beliefs, and actions about products, services or ideaspromotion

The exchange of information so there is common understanding by all participantsEffective Communication

TermWhoExampleSenderBusinessUGG ReceiverConsumerYouEncoded MessageAdvertisement(media, store display, internet)BootsDecoded MessageConsumer seeing or hearing messageDid you see it?FeedbackConsumers reactionDid you buy it?CHAPTER 312/1/2014ITB3Communication gone wrongEffective Communication

What do you see?What do you hear?Telephone game: Hunters aunt shared her secret sweet potato pie recipe with me. CHAPTER 312/1/2014ITB4Tailor Promotional messagesTarget MarketStudying Needs & Wants

Communicating through promotionEarly messages Get attentionGive simple informationLater messagesCompare the product to competing brandsHighlight advantagesAfter purchase messagesProvide reinforcement of their decisionOffer after-sale services

Personalized Promotion communicates directly with each customer using information tailored to that personMost effective form of marketing communicationMost expensiveExample: Personal Selling

Types of promotion

Personal SellingDirect, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and servicesUsually done face-to-face with each customer Often used for complex and expensive products and servicesMay require several contacts b/w the salesperson and the customer to complete the salePersonalized promotion

Mass Promotion communicates with many people at the same time with a common messageDirected to many people at the same timeNot as individualized/specific as personalized promotionMuch less expensiveExamples: TV, radio, direct mail, Internet, Billboards, etc.Types of promotionAdvertising any paid form of communication through mass media directed at identified consumers to provide information and influence their actionsDesigned to attract attention and focus consumer on a small amount of specific informationTypically do not result in an immediate saleMass productionPublicity non-paid promotional communication presented by the media rather than by the business

Public Relations an ongoing program of non-paid and paid communicationsFavorably influences public opinion

Sales Promotion activities and materialsdesigned to reinforce a companys brand and imageDirect incentive to take an actionContests, games, give-aways, etc.Mass production

A set of promotional activities designed to generate sales in the retail setting

Visual Merchandising uses visual signals to communicate in a retail settingExample: shelf labels, signs, displays at point-of-saleCould replace a salesperson for informationmerchandising