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Marketing Junior Year > Chapter 11: Group Promotion > Flashcards

Chapter 11: Group Promotion Flashcards

1
Q

the set of marketing communication activities designed to inform and persuade important groups of people, primarily customers; informative and persuasive communication reasonably related to the organization’s marketing activities

A

promotion

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2
Q

T or F: In relation to promotion, customers can be anyone the company wants to exchange with.

A

True

(ex: a small local jewelry store may promote itself to expensive watch brands, such as Rolex, to become an exclusive authorized Rolex dealer. The retailer also would promote locally to its retail customers)
(we focus this chapter on promotional activities directed at customers.)

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3
Q

________ should be created with the intention of communicating with customers

A

Promotion

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4
Q

What are the 8 main elements of the general model of communication?

A
  1. Sender
  2. Receiver
  3. Message
  4. Encoding
  5. Channel
  6. Decoding
  7. Feedback
  8. Noise
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5
Q

Which main element of the general model of communication does this describe:
the initiator of a communication; initiates the communication with a specific intention

A

sender

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6
Q

Which main element of the general model of communication does this describe:
the intended target audience for a communication

A

receiver

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7
Q

Which main element of the general model of communication does this describe:
the content of a communication

A

message (created by encoding)

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8
Q

Which main element of the general model of communication does this describe:
The sender’s creation of a specific message format for communication; transmission

A

encoding

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9
Q

Which main element of the general model of communication does this describe:
the delivery option chosen for a communication; the message is sent via a _______;

A

channel

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10
Q

Fill in the blanks of this with which main element of the general model of communication it pertains to:
A restaurant (_______) might post a message stating its location off the upcoming exit on a billboard (_______) along the interstate to attract morning commuters (________)

A

sender; channel; receivers

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11
Q

Which main element of the general model of communication does this describe:
Receiver’s interpretation of a communication message; reception, interpreting the message based on what the receiver thinks the message means

A

decoding

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12
Q

After decoding in the general model of communication, ideally the sender would get some type of ________

A

feedback

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13
Q

Which main element of the general model of communication does this describe:
a report of the customer’s experience which helps the company monitor customer perceptions and improve to better meet customer expectations.

A

feedback

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14
Q

In relation to the general model of communication:
Unfortunately, communication attempts, especially marketing communications, are often plagued by _______—anything that interferes with the communication process, which ______ the communication or potentially impacts the ________ of the communication.

A

noise; disrupts; effectiveness

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15
Q

If you are watching your favorite sports team, you often see ads during breaks in the action. However, you might not see the entire ad (or any of the ad) if you decide to get something to eat during the break or someone texts you or you are arguing over a call the official just made with a friend. This is an example of how ________ has a negative effect on the general model of communication.

A

noise

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16
Q

T or F: Noise can occur anywhere in the communication process.

A

True

(ex: sender gets distracted when encoding the message during creation; the message itself gets worded in a way that isn’t clear; the channel could offer distractions such as other ads during the commercial break in the sporting event or competing popup ads on the website; the decoding process could be interrupted by outside interference such as your friend commenting on her/his experience with the brand or something not related to the product/brand at all; even feedback can be interfered with by noise)

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17
Q

the collection of tools available to marketers who engage in promotional activities. These include advertising, personal selling, sales promotion, public relations, and direct marketing (as well as digital media communications).

A

promotion mix

(marketing managers use a variety of tools to promote)

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18
Q

T or F: relying on a single tool from the promotion mix to communicate with customers is often effective.

A

False; should use multiple tools not just one

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19
Q

Marketing managers look for ways to combine the promotion tools to develop _______ among them so that the mix works better than individual tools alone. Capturing these synergies requires that managers coordinate the tools into an _______ ________ _________ strategy

A

synergies; integrated marketing communications (IMC)

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20
Q

The practice of coordinating and integrating promotional efforts into single, unified, and compelling messaging strategies; ways to combine tools to develop synergies
among them so that the mix works better than individual tools alone

A

integrated marketing communications (IMC)

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21
Q

All promotion tools are targeted, but some tools target groups, while others target individuals with personalized communication messages.
Out of the 5 main categories of promotion (promotion mix), which fall under group tools and which fall under personalized tools?

A

Group Tools:
1. Advertising
2. Sales Promotion
3. Public Relations

Personalized Tools:
1. Personal Selling
2. Direct Marketing

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22
Q

T or F: Marketers use digital media and technology for communication as well, but these tools also encourage participation, so they have a broader role than communication.

A

True

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23
Q

In the integrated marketing communication strategy, what must follow the promotion and communications strategy (which follows the overall marketing or brand strategy)?

a) brand messaging strategy and communication channel selection and support
b) digital media and technology and promotion mix
c) brand messaging strategy and target customers
d) promotion mix and target customers

A

a) brand messaging strategy and communication channel selection and support

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24
Q

What are the 5 main categories of promotion (promotion mix)?

A
  1. Advertising
  2. Sales Promotion
  3. Public Relations
  4. Personal Selling
  5. Direct Marketing
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25
Q

Which main category of promotion (promotion mix) does the following describe:
Promotion to an individual consumer that includes an offer, information to justify purchase, and a method for customers to respond.

A

Direct marketing

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26
Q

Which main category of promotion (promotion mix) does the following describe:
Any selling activity that involves direct interaction between buyer and seller.

A

Personal Selling

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27
Q

Which main category of promotion (promotion mix) does the following describe:
Any paid, non-personal communication to an audience

A

Advertising

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28
Q

Which main category of promotion (promotion mix) does the following describe:
Short-term incentives designed to persuade customers to make a purchase or speed their decision process.

A

Sales promotion

(ex: Buy One Get One Free, flash sales, free trials, contests, coupons)

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29
Q

Which main category of promotion (promotion mix) does the following describe:
The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public
interest, and executes a program of action (and communication) to earn public understanding and acceptance

A

Public Relations

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30
Q

What does the general model of communication have to do with group promotion?

A

serves as a framework to ensure the message about a product/ service is effectively communicated to the target audience through various channels, while considering factors like the group’s dynamics and how to best tailor the message to resonate with them

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31
Q

Describe how advertising (a main category of promotion) is in regards to the following:
1. Personalization (low/high)
2. Noise (low/high)
3. Lead Time (short/depends/long)
4. Measurability (low/high)
5. Feedback (low/high/mixed)
6. Cost per customer (low/high)

A
  1. low
  2. high
  3. long
  4. low
  5. low
  6. low
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32
Q

Describe how public relations (a main category of promotion) is in regards to the following:
1. Personalization (low/high)
2. Noise (low/high)
3. Lead Time (short/depends/long)
4. Measurability (low/high)
5. Feedback (low/high/mixed)
6. Cost per customer (low/high)

A
  1. low
  2. high
  3. depends
  4. low
  5. low
  6. low
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33
Q

Describe how sales promotion (a main category of promotion) is in regards to the following:
1. Personalization (low/high)
2. Noise (low/high)
3. Lead Time (short/depends/long)
4. Measurability (low/high)
5. Feedback (low/high/mixed)
6. Cost per customer (low/high)

A
  1. low
  2. high
  3. depends
  4. high
  5. mixed
  6. high
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34
Q

Describe how personal selling (a main category of promotion) is in regards to the following:
1. Personalization (low/high)
2. Noise (low/high)
3. Lead Time (short/depends/long)
4. Measurability (low/high)
5. Feedback (low/high/mixed)
6. Cost per customer (low/high)

A
  1. high
  2. low
  3. short
  4. high
  5. high
  6. high
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35
Q

Describe how direct marketing (a main category of promotion) is in regards to the following:
1. Personalization (low/high)
2. Noise (low/high)
3. Lead Time (short/depends/long)
4. Measurability (low/high)
5. Feedback (low/high/mixed)
6. Cost per customer (low/high)

A
  1. high
  2. low
  3. short
  4. high
  5. mixed
  6. low
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36
Q

model that explains how advertising can affect customer behavior by moving customers through a series of stages from awareness to action.

A

hierarchy of effects model

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37
Q

The hierarchy of effects model:
a. What are the 5 stages that people pass through in this model?
b. Which two stages are cognitive variables, which represent the “thinking” parts of the hierarchy of effects?
c. Which two stages are emotional/affective variables, which represent the “feeling” parts of the hierarchy of effects?
d. Which stage is the behavioral variable, which is the “doing” part of the hierarchy of effects?

A

a. Awareness, Knowledge, Liking, Preference, Action
b. Awareness and knowledge
c. Liking and preference
d. Action

38
Q

What are the 3 types of promotional objectives that are listed in the hierarchy of effects model?

A
  1. Communication
  2. Sales
  3. Non-sales behaviors
39
Q

Which variable(s) are used in communications objectives?

A

Cognitive and affective variables

40
Q

Which variable(s) are used in sales and non-sales behavioral objectives?

A

Behavioral variables

41
Q

T or F: Variables for non-sales behavioral objectives include store traffic counts, phone inquiries, contest entries, website hits, and social media likes, among others. Non-sales behavioral objectives allow marketers to measure results that eventually could lead to sales.

A

True

42
Q

What are the 4 methods of promotion budgeting?
Which ones are easier?
Which one is the hardest?

A
  1. Intuition and instinct (easier)
  2. Percentage of sales (easier)
  3. Competitive response (easier)
  4. Objective and task (hardest)
43
Q

Match each description to the method of promotion budgeting it pertains to:
a. Promotional budgets are set based on predictions of what competitors will spend.
b. Managers base promotional budgets on “gut instinct.”
c. Promotion budgets set as a percentage of prior year sales or predicted coming year sales
d. Promotion budgets are set based on promotional activities objectives

A

a. competitive response
b. intuition and instinct
c. percentage of sales
d. objective and task

44
Q

What is the advantage (1) and disadvantage (1) of the “Intuition and Instinct” Promotional Budgeting Method?

A

Advantage
- Saves time and effort

Disadvantage
- Can be wasteful and undisciplined

45
Q

What is the advantage (1) and disadvantage (1) of the “Percentage of Sales” Promotional Budgeting Method?

A

Advantage:
- Simplicity, especially in stable markets

Disadvantage:
- Assumes sales produce promotion, not that promotion produces sales

46
Q

What is the advantage (1) and disadvantage (1) of the “Competitive Response” Promotional Budgeting Method?

A

Advantage:
- Simplicity and responsiveness to competitive environment

Disadvantage:
- bases important budgetary decisions on actions of competitors

47
Q

What is the advantage (1) and disadvantages (2) of the “Objective and Task” Promotional Budgeting Method?

A

Advantage:
- budgets are based on goals and are independent of prior expenditures or competitors

Disadvantages:
- vulnerable to overspending
- time-consuming process that draws on management time

48
Q

What does the relationship of advertising spending to GDP tell us about how companies view promotion? **

A

When GDP increases, advertising spending increases as well, and vice versa.
This tells us that when the economy is doing well, companies spend more on marketing/promotion, which means that businesses are often using percentage of sales as their budgeting technique.

49
Q

Which method of promotion budgeting is most representative of of the marketing concept?

A

Objective and task

(bc it’s philosophy is focusing on customers as resource and investments)

50
Q

What are 7 examples of sales promotions? Which is questionable (put start next to)?

A
  1. Coupons
  2. Premiums
  3. Bonus packs
  4. Sampling
  5. Contests/sweepstakes
  6. Price-off deals
  7. Sponsorships *
51
Q
  1. What are the two goals of sales promotions?
  2. How do these goals conflict?
  3. Can these goals work together?
A
  1. 1.) Short-term: behavior now (more this goal) and 2.) Long-term: brand loyalty
  2. How they conflict: short-term promotions can undermine a brand’s value and image long-term
  3. Yes; if properly designed, every sales promotion tool has the potential to build short-term excitement and long-term consumer engagement and relationships (ex: Chipotle doing a promotion for national avocado day. It makes sense and reinforces their brand message which in turn can create brand loyalty)
52
Q

T or F: rather than creating only short-term sales or temporary brand switching, sales promotions should help to reinforce the product’s position and build long-term customer relationships.

A

True

53
Q

T or F: Promotions should be run on a regular, periodic, predictable basis.

A

False; should be ran sporadically (not all the time), or else it can create consumer adaptation

54
Q

Sales promotions are good at encouraging behavior but they…
1. Can _______ a brand’s value and image.
2. Create ______ _______ (that is, waiting for promotions).
3. Are still viable from a long-term perspective if _____ ____ and created in ways to _________ the brand.

A
  1. undermine
  2. consumer adaptation
  3. thought out; reinforce
55
Q

Advertising can do whatever we want (ex: ask forgiveness). But often, what are the 2 things advertising does?

How does this contrast with what Sergio Zyman and the book says?

A
  1. Build the brand (awareness and image)
  2. Drive the purchase decision process (stage 1-5)

Sergio Zyman says the SOLE/ONLY purpose of marketing is to sell to more people, more often, and at higher prices. So, he wasn’t big on brand building/ the long-term things; he believed marketing is more for the short-term effect.

56
Q

Which is more open-ended (you can do more with it): Sales promotions or advertising?

A

Advertising

57
Q

It’s (easy/hard) to drive behavior from sales promotions and it’s (easy/hard) to drive behavior from advertisements.

A

easy; hard

(to drive behavior, ads have to link to why people should buy– link to that purchase decision process)

58
Q

According to the book, ads should:
1. Grab _________
2. Stimulate _________
3. Be capable of ________ ________.

A
  1. attention (duh, this is the given; “the price of admission”)
  2. relevance (awareness and purchase)
  3. multiple executions
59
Q

What are the different types of advertising execution styles/appeals? (2 big categories)

A
  1. Rational (ex: straight sell, demonstration, testimonial, endorsements, comparative, slice of life)
  2. Emotional (ex: fear, humor, sexual desire, awe, love, this is not an exhaustive list)
60
Q

T or F: Emotion is a super powerful thing for ads and is used a lot.

A

True

61
Q

T or F: Every ad can fit under the categories of rational or emotional.

A

False; a lot can, but not all (it’s just based on their creativity)

62
Q

If you can incorporate ______, a commonly used emotion into your adverstising, it can be very powerful.

A

fear

63
Q

T or F: Every appeal needs to connect to the product in a meaningful way. (so like if you’re trying to drive behavior/purchasing, your ad should connect to reasons people purchase).

A

True

(“Whether advertising creative is funny, witty, moving, or dramatic matters little if it doesn’t deliver the intended message and convey the advertised brand’s benefits”)

64
Q

An ad that showed how people chose Dunkin over Starbucks in a blind taste test is a type of rational ad, which was a ________ ad.

A

comparative

65
Q

T or F: You should not have a fear appeal that is too strong (idea being that if you freak people out, they won’t pay attention to your ad).

A

FALSE!!! If you can create real fear in people, this is very powerful.

(ex: apple watch commercial linking to 911 calls, the no speeding commercial with the two guys)

66
Q

T or F: If an advertising is too ridiculous and over the top, it will not be successful and people won’t pay attention. (You can go too far with humor)

A

False!!! This is not true IF the humor in the ad can link to reasons why people should buy.

In fact, the more funny it is, the more likely it will be shared, and then the more likely it will have an effect in the market.

67
Q

T or F: You can go too far with sex appeal in advertisements.

A

Kind of true, because people can boycott you if you show too much sexual objective (so yes, true)

68
Q

T or F: Sexual desire appeals work if you’re trying to get attention and build awareness. But, if you’re not trying to build awareness anymore, it’s not giving people a reason to buy, therefore it doesn’t work.

A

True

(sex can build brand awareness and get attention, but sex doesn’t sell— ex: Michael B. Jordan commercial with Alexa got them a lot of attention, but didn’t change their market share)

69
Q

For advertisements, cost per customer is very (low/high) compared to personal selling, direct marketing, and sales promotions.

A

low

70
Q

the % of target market exposed to an ad.

A

reach

71
Q

the average # of times the target audience sees an ad.

A

frequency

72
Q

As reach increases, frequency (increases/decreases).

Therefore, reach and frequency have a (positive/inverse) relationship to one another.

A

decreases; inverse

73
Q

T or F: The greater the reach, the more likely your ad will have underexposure because it will be more expensive to run.

A

True

74
Q

A metric which tells you the total number of times an advertisement is seen by members of a target audience.

A

gross impressions

75
Q

How do you calculate gross impressions?

A

Gross Impressions = rating x target population x number of ads run

76
Q

a metric that tells you the average number of times members of a target audience are exposed to a commercial or other traditional advertisement

A

average frequency

77
Q

How do you calculate average frequency?

A

Average Frequency = Gross impressions / target population

78
Q

a metric that measures schedule intensity; It is the product of reach and average frequency.

A

Gross ratings points (GRP)

79
Q

How do you calculate Gross Ratings Points (GRP)?

A

GRP = Reach x average frequency

80
Q

The cost of reaching 1,000 people. The metric can be used to measure the relative cost efficiency of different media.

A

Cost per Thousand (CPM)

81
Q

What are the 2 ways you can calculate Cost per Thousand (CPM)?

A
  1. CPM = (Cost of Ad/ Audience Size) x 1,000
  2. CPM= Cost of Ad / Audience Size / 1,000
82
Q

The super bowl ad is a (great/horrible) buy according to CPM perspective.

A

great

(IF you can afford the upfront cost obviously and if you’re running multiple, you have to pay for these too)

83
Q

T or F: The greater the audience size, the more it can drive CPM down.

A

True

(which is why the super bowl is a great buy according to CPM bc the audience size is so large that even though it costs 6.5 million, the CPM is low because of how many people it reaches)

84
Q

When people outside the target audience are exposed to advertising messages not intended for them or when the target audience itself is overexposed or underexposed to the advertising message; is difficult to quantify

A

advertising waste coverage

(ex: happens with the Superbowl. From the waste perspective, you have to be careful with Superbowl buy)

85
Q

The (broader/narrower) the market the more likely your going to have waste.

A

broader

86
Q

Do the majority of marketing communication attempts fail or not?

A

They fail

(Which emphasizes the need to create relevant, targeted communications and measure results)

87
Q

Achieving desired levels of reach and frequency relies on effective _______ _______.

A

media selection

88
Q

What are the “three simple questions” for effective media selection?

A
  1. Who is the target of the message?
  2. Where will the product be advertised?
  3. What timing will be used?

(explaining #3: sometimes advertising isn’t spread evenly over time, but may be run in bursts or in periods of rising and falling intensity. ex: holiday commercials when demand is high for christmas trees)

89
Q

Group promotion has a ________ effect.
a. insignificant
b. lagged
c. immediate
d. exaggerated

A

b. lagged

90
Q

What do constant and regular sales promotions do to a brand?
a. Sales promotions decrease the value of a brand.
b. Sales promotions have no overall effect because they both increase and decrease brand value.
c. Sales promotions increase the value of a brand.

A

a. Sales promotions decrease the value of a brand.

Marketing Junior Year (11 decks)

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