Chapter 12 - Promotion Mix Flashcards
What is a promotion mix and what other name do we give it?
Specific blend of promotion tools used by companies to persuasively communicate customer value and build customer relationships.
Marketing communications mix
What are the 5 promotion tools?
- Advertising
- Sales promotion
- Personal selling
- Public relations (PR)
- Direct and digital marketing
What is advertising?
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
What is sales promotion?
Short-term incentives to encourage purchase or sale of a product or service.
What is public relations?
Building good relations and corporate image with the company’s publics using publicity, and handling unfavorable events.
What is personal selling?
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
What is direct marketing?
Direct communications with targeted individuals to obtain an immediate response and lasting customer relationships.
What factors are changing the face of today’s marketing communications?
Changing consumers
Changing marketing strategies
Advancements in digital technology
What is integrated marketing communications (IMC)?
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.
Why do we need integrated marketing communications?
Conflicting messages from different sources or promotional approaches can confuse company or brand images
The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently
What determines the overall communications mix?
Determined by the nature of each promotion tool and the selected promotion mix strategy
What are the two promotion strategies?
Push strategy: involves “pushing” the product through marketing channels to final consumers.
Producer –> Retailers and wholesalers –> consumers
Pull strategy: producer directs its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.
What are the 4 steps in developing an advertising program?
- Setting objectives
- Setting the budget
- Developing the advertising strategy
- Evaluating advertising campaigns
Expand on the setting objectives step?
Advertising objectives can be classified by primary purpose:
- Inform
– Introducing new products
- Persuade
– Becomes more important as competition increases
– Comparative advertising - Remind
– Most important for mature products
What are the 4 methods for setting the budget?
- Affordable method
- Percentage-of-sales method
- Competitive-parity method
- Objective-and-task method (most logical)
Expand on the developing the advertising strategy step?
Accomplishes the company’s advertising objectives
Creating ad messages:
- Breaking through the clutter
- Merging advertising and entertainment
- Message and content strategy
- Message execution
- Consumer-generated content
Select advertising media:
- Decide on level of reach, frequency, impact and engagement
- Choose among the major media types by considering:
– Consumer media habits, nature of the product, types of messages, and costs
- Select specific media vehicles
Decide on media timing
What are some creative executive styles?
Slice of Life
Lifestyle
Fantasy
Mood or Image
Musical
Testimonial Evidence or Endorsement
Personality Symbol
Technical Expertise
Scientific Evidence
What are the main advertising media types?
Newspapers
Television
Direct Mail
Digital, mobile, and social media
Magazines
Outdoor
Radio
Expand the evaluating advertising effectiveness step?
Return on advertising investment: Net return on advertising investment divided by the costs of the advertising investment
Advertisers should regularly evaluate
- Communication effects
- Sales and profit effects
What are the 6 public relations functions?
Press Relations
Product and brand Publicity
Public Affairs
Lobbying
Investor Relations
Development
What are the role and impact of public relations?
Strong impact on public awareness at a lower cost than advertising
Power to engage consumers and make them part of the brand’s story, inject them in daily conversations
Limited and scattered use
Powerful brand-building tool
What are the main major public relations tools?
News
Corporate Identity Materials
Special Events
Written Materials
Audiovisual Materials
Public Service Activities
Who are the sales promotion targets?
Final buyers—Consumer promotions
Retailers and wholesalers—Trade promotions
Business customers—Business promotions
Members of the sales force—Sales force promotions
What factors have contributed to the rapid growth of sales promotion?
Product managers view promotion as an effective short-run sales tool.
Competitors use sales promotion to differentiate their offers.
Advertising efficiency has declined.
Sales promotions help attract today’s more thrift-oriented consumers.
What are the 3 types of sales promotions and their objectives?
Consumer promotions:
- To urge short-term customer buying or boost customer-brand engagement
Trade promotions:
- To get retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space
Business promotions:
- To generate business leads, stimulate purchases, reward customers, and motivate salespeople
Name some of the consumer promotion tools?
Samples
Coupons
Rebates
Price packs
Premiums
Event marketing
Contests
Point-of-purchase
What are the 5 steps in developing the sales promotion program?
- Size of the incentive
- Conditions for participation
- Promotion and distribution of the actual sales promotion program
- Length of the promotional program
- Evaluation
What is the role of the sales force in personnel selling?
Links the company with its customers
Coordinates marketing and sales
Prospecting and communicating
Selling and servicing
Gathering information and building relationships
What are the 7 steps in the personal selling process?
- Prospecting and qualifying
- Preapproach
- Approach
- Presentation and demonstration
- Handling objections
- Closing
- Follow-up
What are some factors of the growth of direct and digital marketing?
Fastest-growing form of marketing
Direct marketing becoming more Internet-based
Direct marketing claims a surging share of marketing spending and sales:
- Includes online display and search advertising, video, social media, mobile, email
Who and what are the benefits of direct and digital marketing to buyers?
Buyers:
- Convenient, easy, and private
- Easy buyer-seller interaction
- Quick access to products and relevant information
- Brand engagement and community
Sellers:
- Low-cost, efficient, and speedy
- Build close, personalized, interactive, one-to-one customer relationships
- Greater flexibility
What are the two types of direct and digital marketing?
- Digital and social media marketing
- Traditional direct-marketing
What is Digital and social media marketing?
Using digital marketing tools to engage consumers anywhere, anytime via their digital devices
What is digital age?
Changing customers’ notions of convenience, speed, price, product information, service, and brand interactions
What is Omni-channel retailing?
Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
What is online marketing?
Marketing via the Internet using company Web sites, online ads and promotions, email, online video, and blogs
What is online advertising?
Appears while consumers are browsing online
What is email marketing?
Sending highly targeted, highly personalized, relationship-building marketing messages via email
Spam: Unsolicited, unwanted commercial email messages
What is viral marketing?
Videos, ads, and other marketing content that customers seek out or pass along to friends
What are blogs and other online forums and their benefits/limitations?
Online journals of narrowly defined topics where people and companies post their thoughts and other content
Benefits: A fresh, original, personal, and inexpensive way to enter into consumer online conversations
Limitations: Cluttered, difficult to control and largely a consumer-controlled medium
What is social media marketing?
Independent and commercial online communities where people congregate, to socialize and share messages, opinions, pictures, videos, and other content
Marketers engage social media in two ways:
- Using the existing ones
- Setting up their own
What are the advantages and challenges of social media marketing?
Advantages:
- Targeted and personal
- Interactive
- Immediate and timely
- Cost effective
- Engagement and social sharing capabilities
Disadvantages:
- Effective usage uncertain
- Difficult to measure results
- Largely user controlled
What is mobile marketing?
Promotional content delivered to consumers through their mobile devices
Engages customers anywhere, anytime during the buying and relationship-building processes
What are some public policy issues in direct and digital marketing?
Irritation, Unfairness, Deception, and Fraud
Consumer Privacy
A Need for Action
What is integrated marketing communication?
Coordinate across different promotion mix elements to achieve the promotion objectives
Factors affecting the promotion mix:
- Objectives (e.g., Target Audience, Pull vs. Push)
- Unique nature of individual promotion mix elements
- Nature of the product
- Stages in the Product Life Cycle
- Stages in the Consumer Problem Solving Process
- Promotion Budget
What is integrated social media marketing?
Large companies design social media efforts that blend with and support other elements of a brand’s marketing strategy and tactics.
Firms that use social media effectively create brand-related social sharing, engagement, and customer community.
