Advertising and Promotion

Question 1

1. What are the effects of advertising?

Answer 1

Change in negative opinions and reinforces positive attitude

Question 2

1.1. What are the major types of Advertising?

Answer 2

a) Institutional: enhance company’s image. Uses Advocacy to express opinion of controversial topics.
b) Product: touts benefits of product. Pioneering (in-depth info/ Intro Stage), Competitive (demand for brand/ Growth Stage), Comparative (strong competition/ Maturity Stage).

Question 3

1.2. What are the steps for creative decisions in advertising?

Answer 3

1. Identify product’s benefits - sell benefits.
2. Develop advertising appeals - profit, health, admiration, convenience, pleasure, environment.
3. Execute message in style form - lifestyle, fantasy, testimonial, humorous, image, scientific, demonstration, musical.

Question 4

1.3. What are the media Decisions?

Answer 4

1. Choice of Medium
2. Factors affecting Media Mix selection - cost per contact/click, reach, frequency - attention, involvement, distractions.
3. Scheduling - Continuous (steadily), Flighted (heavy every other month), Pulsing (combine Cont. and Flig.), Seasonal (when prod likely to be used).

Question 5

2. What are the functions of Public Relations?

Answer 5

• Press relations
• Product publicity
• Corporate communication
• Crisis management.
• Public affairs.
• Lobbying.
• Employee and investment relations

Question 6

2.1. What are the tools of Public Relations?

Answer 6

• New Product Publicity
• Consumer education
• Product placement
• Sponsorship
• Experimental marketing
• Company websites

Question 7

3. What are the targeted markets of Sales Promotion? State tools and benefits/trends.

Answer 7

1. Trade Sales - directed to members of marketing world.
   Tools: training, free merchandise, store demonstrations, conventions.
   Benefits: gain new distributors, improve relations, retailer support.
2. Consumer Sales - ultimate consumer market
   Tools: coupons, premiums, loyalty programs, sampling.
   Trends: increased use of internet.

Question 8

3.1. What are the different types of consumers in Sales Promotion? What are the goals with each one?

Answer 8

1. Loyal - reinforce and increase bond
2. Competitor’s - break loyalty
3. Brand Switchers - buy your brand more often
4. Price Buyers - get them to buy your low prices or added value.