PSYC 2390 Lecture Notes - Lecture 1: Promotional Mix, Lead Generation, Direct Marketing
4 Jul 2018
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Direct marketing: promotional element that uses direct communication with consumers to
generate a response in the form of an order, a request for further information, or a visit to a retail
outlet.
Product characteristics
• Complexity: the amount of understanding required to use a product.
• Risk: financial, social, and physical risks.
• Ancillary: degree of service and support required after the sale.
Push strategy: directing the promotional mix to channel members to gain their cooperation in
ordering and stocking a product.
Pull strategy: directing the promotional mix at ultimate consumers to encourage them to ask the
retailer for the product.
Hierarchy of effects: the sequence of stages a prospective buyer goes through, from initial
awareness of a product to eventual action.
• Awareness: consumer’s ability to recognize and remember the product
• Interest: increase in consumer’s desire to learn about some of the features of the product
• Evaluation: consumer’s appraisal of the brand on important attributes
• Trial: consumer’s first purchase and use of product
• Adoption: repeated purchase through favourable experience
Percentage of sales budgeting: allocating funds to advertising as a percentage of past or
anticipated sales, in terms of either dollars or units sold.
Competitive parity budgeting: matching the competitors’ absolute level of spending or the
proportion per point of market share.
All-you-can-afford budgeting: allocating funds to promotion only after all other budget items
are covered.
Objective and task budgeting: a budgeting approach whereby the company determines its
promotion objectives, outlines the tasks to accomplish these objectives, and determines the
promotion cost of performing these tasks.
Direct orders: the result of offers that contain all the information necessary for a prospective
buyer to make a decision to purchase and complete the transaction.
Lead generation: the result of an offer designed to generate interest in a product or service and a
request for additional information
Traffic generation: the outcome of an offer designed to motivate people to visit a business.
Document Summary
Direct marketing: promotional element that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. Product characteristics: complexity: the amount of understanding required to use a product, risk: financial, social, and physical risks, ancillary: degree of service and support required after the sale. Push strategy: directing the promotional mix to channel members to gain their cooperation in ordering and stocking a product. Pull strategy: directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product. Hierarchy of effects: the sequence of stages a prospective buyer goes through, from initial awareness of a product to eventual action. Percentage of sales budgeting: allocating funds to advertising as a percentage of past or anticipated sales, in terms of either dollars or units sold.
