1. 2-1 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

2. 2-2 Chapter 2 Marketing Public Relations and the Marketing Communications Mix Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

3. 2-3 Chapter Objectives 1. Explain the different variations of exchange and their relationship to Marketing Public Relations (MPR). 2. List and explain the key elements in the marketing communications mix and explain how these elements work together with MPR. 3. Explain the concept of positioning and MPR’s role in shaping it. 4. Describe and differentiate between the standard and MPR communications processes. 5. Explain what a connector is and how connectors function in the MPR process. 6. Explain the two types of MPR audiences and the importance of a firm’s relationships with them. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

4. 2-4 Exchange A transaction in which a person or organization trades a definite quantity of one substance for a definite quantity of another Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

5. 2-5 Word-of-Mouth Information spread from person to person through the spoken or written word where the communication is personal, intentional, and concerns a product Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

6. 2-6 Buzz Synonymous with word-of-mouth (p. 15) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

7. 2-7 Media Mentions The spoken, written, or visual reference to a product presented through mass media or other incidence where one source has the attention of many people or organizations Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

8. 2-8 Marketing Communications Mix Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Advertising Sales Promotion Public Relations Direct Marketing Personal Selling

9. 2-9 Integrated Marketing Communication The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products (p. 16) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

10. 2-10 Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor (p. 16) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

11. 2-11 Sales Promotion Short-term incentives to encourage the purchase or sale of a product or service (p. 17) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

12. 2-12 Public Relations The function of building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events (p. 17) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

13. 2-13 Direct Marketing The use of direct mail, the telephone, direct-response television, e-mail, the Internet, and other tools to communicate directly with carefully targeted individual consumers in an attempt to obtain an immediate response and to cultivate lasting customer relationships (p. 17) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

14. 2-14 Personal Selling Personal presentation by a firm’s sales force for the purpose of making sales and building customer relationships (p. 17) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

15. 2-15 MPR works with the Marketing Communications Mix to increase effectiveness Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

16. 2-16 Viral Marketing The marketing phenomenon that facilitates and encourages people to pass along a marketing message Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

17. 2-17 Positioning The way that consumers perceive a product relative to its competitors Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

18. 2-18 Positioning example: Donuts Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Where on this perceptual map would you place your favorite donuts? Hot Not Cakey Fluffy

19. 2-19 Positioning Statement A statement describing the way that the marketers intend consumers to perceive the product relative to its competitors It should help answer these questions: ◦ What do consumers think of the product? ◦ How will consumers learn about the product? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

20. 2-20 Communication Process In the Classic Communication Process the message reaches the receiver as intended by the sender. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall SenderMessageChannelReceiver

21. 2-21 Noise Anything tangible or intangible that interferes with the transmission of a message from a sender to a receiver or with the comprehension of the message by the receiver Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

22. 2-22 Connectors Media, groups, or individuals who act as a channel for a marketing message resulting in media mentions or the creation of word-of-mouth Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

23. 2-23 MPR Communication Process The sender gives up control of the message. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall OrganizationMessageConnector Revised Message Customer/Public Feedback 1 (media) Feedback 2 (public)

24. 2-24 Audience The intended receivers of a promotional message Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

25. 2-25 Concept Case 2.1: The Falcon’s Lair Marketing Communications Mix 1. Cite some other ways The Falcon’s Lair might use MPR together with advertising and personal selling to help improve business. 2. Find an example of a real company using MPR in conjunction with one of the other elements of the marketing mix and explain what you think the company is trying to accomplish. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

26. 2-26 Concept Case 2.2: Falcon’s Lair Positioning Statement Following is a possible positioning statement for The Falcon’s Lair: The Falcon’s Lair is a premiere hiking and camping store that serves everyone from the master climber to the youth hiker. Our products are a collection of the best hiking and camping equipment available, and our staff is experienced, knowledgeable, and helpful. Our customers rely on their relationship with us to make their time hiking and camping safe and enjoyable, and they know that personal service is part of every product we sell. 1. What are the strengths and weaknesses of this positioning statement? 2. How could you improve it? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

27. 2-27 Reflection Questions 1. People commonly perceive a marketing exchange to be the trade of a good or service for money. List and describe other types of exchanges that do not include a good, a service, or money as part of the exchange. 2. Explain the five elements of the marketing communications mix. 3. Discuss how MPR is used in conjunction with the other elements of the marketing communications mix. 4. What is a positioning statement and how does it serve the marketer? 5. Describe and differentiate between the standard communications process and the MPR communication process. 6. Explain what a connector is and list several examples. 7. For each of the following industries, list as many companies or products as you can, and discuss their positioning in their respective markets: a. Fast food b. Automobiles c. Airlines d. Soft drinks e. Coffee (retail, by the cup) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

28. 2-28 Practice Portfolio Practice Portfolio 1. List some non-MPR elements of the marketing communication mix that your practice company would most likely use. Identify any areas where the company could combine conventional marketing methods with MPR. Describe how the company could achieve that goal and discuss the benefits of doing so. 2. Write a positioning statement for your practice company, meeting all of the criteria described in the chapter. 3. List the likely connectors for your practice company and divide them into media, groups, and individuals. Name actual media outlets and groups whenever possible. You may need to generalize somewhat for individuals, but provide as much detail as you can. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall