ch 11 (unit 3) Flashcards
what is an external communication that is paid for by the seller and promotes a product to potential customers?
- personal selling
- sales promotion
- advertising
- public relations
- advertising
what is a function of public relations?
- promote positive brand image
- manage publicity
- build trust
- all of these
- all of these
in which stage of personal selling do you obtain the sale?
- pre-approach
- close
- approach
- close
the various means by which promotional messages are communicated to the public using words, speech and pictures is called __.
- advertising media
- promotions
- personal selling
- mediums
- advertising media
which of the following is an example of out of home advertising?
- social media
- billboards
- magazines
- television
billboards
true or false: running last-minute ads is typically an option in magazines
false
the number of people who are exposed to an ad, either by viewing a visual ad or hearing an audio ad are called __
- impression
- frequency
- reach
- none of these
reach
what is it called when advertising reaches people who are not part of the target market and are not potential customers
- cost per thousand impressions
- waste coverage
- non-coverage
- both waste and non-coverage
waste coverage
what are some practical ways to add emotions into promotional messages?
- music
- images
- lighting
- all of the above
all of the above
what are some examples of sales promotions used to encourage short-term sales?
- coupons
- contests
- gift premiums
- all of these
all of these
A marketer seeks to
Communicate in a way that the customer understands
Promotion
is the means of communicating with the customers and has the following characteristics:
Promotions use…
External communication
Persuasive communication
It involves external communication, which means the marketer is sending a message to those outside of the company instead of to company employees.
It typically involves persuasive communication, such as influencing a customer to make a purchase decision.
This is the key goal in promotion
How to communicate that you exist and the value that you provide.
The promotional mix
Sales promotion
Public relations
Personal selling
Direct marketing
Advertising
sales promotion
Sales promotion: a short-term, external promotion designed to influence immediate purchase
Examples of sale promotions:
Coupons
Free samples
Frequent-user program
Gift premium
Contests
public relations
Public relations: the practice of managing the spread of information between an individual or an organization and the public (Grunig)
Examples of public relations tools
Drafting and distributing press releases
Speaking at events as a company representative
Giving back to the community
Creating publications/newsletters
Communicating with the public during a crisis
personal selling
Personal selling: frontline interaction between a company representative and a potential buyer designed to influence a purchase decision
benefits:
The upside for personal selling is the ability to completely customize it for each customer and each purchase situation. A salesperson can develop a customized sales presentation for each prospect. The salesperson is also able to address any objections directly and immediately. However, the downside of this is the potential expense. It doesn’t work well to promote a product to the masses as doing so would require a large sales force and huge budget.
Personal selling works best for products with a high enough selling price (and profit margin) to cover the cost of the sales employees.
direct marketing
Direct marketing: a promotional effort wherein the seller communicates with the potential customer using media such as direct mail or telemarketing with the goal of receiving a direct response from the customer (as opposed to selling in a retail location)
benefits:
Direct marketing such as direct mail allows a marketer to reach and communicate directly with customers. There is also usually a way for the consumer to respond to the direct marketing, such as an opportunity to communicate back to the company and purchase.
advertising
Advertising: external communication that is paid for by the seller and promotes a product to potential customers
benefits of sales promotions
Balances demand against available inventory or capacity
Effectiveness can be measured
Promotional costs vary with volume
Reduces risk of initial trial
key functions of public relations
Key functions of public relations:
Promote goodwill and build trust
Lobby for the good of the company
Promote positive brand image
Manage publicity
Maintain investor relations
personal selling stages
- Prospecting: looking for potential customers, vetting potential customers
- Preapproach: researching the prospect, determining the best mode of action
- Approach: contacting prospect, gaining his or her attention, setting up a meeting
- Presentation: presenting information and benefits to the prospect, addressing any objections
- Close: obtaining the sale
- Follow-up: ensuring purchase satisfaction
advertising functions
INFORM
Advertising can let the customer know that the product exists, which is especially useful in the introduction stage of the product life cycle.
PERSUADE
Advertising can also have a persuasive element. This is especially helpful in the evaluation of alternatives stage of the buyer behavior process where customers are aware of the product but have not made a purchase decision.
REMIND AND REINFORCE
Advertising can serve to simply remind customers that the product exists. This works well when there is high brand awareness of the product among the target market. An example of this would be Coca Cola. Most ads about Coca Cola do not inform consumers or persuade them as to the product benefits; they simply remind customers that Coca Cola exists.
advertising
Advertising is external communication that is paid for by the seller and promotes a product to potential customers
It includes running ads on television, radio and in print
Categories of advertising media
Broadcast
Print
Out-of-home
Digital
trends in ad spending
Increasing Internet Ad spending
Increasing Mobile Ad spending
Decreasing Newspaper Ad Spending
reach
number of people who are exposed to an ad either by viewing a visual ad or hearing an audio ad.
To remember the concept of reach, picture reaching your arm out as far as you can. How many people can you reach?
impression
one exposure of a person to an ad; an ad being emitted or displayed once.
For example, one ad impression could mean that a television ad was played in front of one person.
frequency
the average number of times members of a defined market saw an advertisement
If a market has a frequency of three during an ad campaign, this means the members of that market were exposed to the ad an average of three times each. To obtain a frequency calculation, take the total number of impressions in a market and divide it by the number of people.
effective frequency
represents the minimum number of times that a person needs to be exposed to an ad for it to “make a difference” or for the customer to take an action and respond to the commercial
CPM: represents cost per thousand impressions
cpm - cost per thousand impressions
Cost per thousand impressions (CPM) ($) = (advertising costs ($) / impressions generated) x 1,000
waste coverage
Waste coverage: advertising that reaches people who are not part of the target market and who are not potential customers
SUCCESS model explanation
Clutter defines the noise from competing messages the consumers receive
The SUCCESs Model focuses on cutting through the promotional clutter to help a message stand out and be impactful
Success model
SIMPLE
Keep the message simple. Choose one takeaway or one attribute to promote. That’s it. Don’t overload the consumer with a million reasons why they should purchase. Give them ONE message.
UNEXPECTED
The unexpected stands out. Create an element in the ad that is surprising or even catches people off guard.
CONCRETE
Put tangible to the intangible to make it concrete. Give examples to bring what you’re saying to life. Show things visibly.
CREDIBLE
Use claims that are credible. Instead of saying, “We do great work,” find a way to show people how you do great work. Who are your well-known clients? Whom did you help? What recognition or certifications have you received? What statistics can you use?
EMOTIONAL
Attach emotions to what you’re describing in the promotional message.
STORIES
People remember stories. There is a reason that parables and allegories are so effective: people connect with them. If you want people to remember a message, portray it with a story.
ad campaign
A series of advertisement messages that share a common idea and theme and run for a limited amount of time
ad campign steps
- Clarify the specific purpose behind the campaign: to inform, to persuade or to remind
- Set goals and objectives before the campaign so that you can measure whether or not objectives were met
- Decide what advertising medium or media to use
- Decide what content to include and what format to use
- Decide what time of year, month, week and maybe even time of day to run the ad
- Decide on the length of the campaign and how many ads to run
- Check to see what goals and objectives have been met
integrated marketing communications (imc)
When all pieces of the promotional mix work cohesively to promote the product
aida model
AIDA model: a well-known theory of how consumers decide on a product. The marketing funnel.
Attention
Interest
Desire
Action
aida model
AIDA model: a well-known theory of how consumers decide on a product. The marketing funnel.
Attention
Interest
Desire
Action
