Chapter 13 Flashcards
What is a promotion mix?
Consists of a specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that a company uses to engage consumers, persuasively communicate customer value, and build customer relationships
What are the five major promotion tools?
- Advertising
- Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor - Sales promotion
- Short-term incentives to encourage a purchase or sale of a product or service - Personal selling
- Personal customer interactions by a firm’s sales force for the purpose of making sales and building customer relationships - Public relations
- Building good relations with a company’s various publics by obtaining favourable publicity, building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events - Direct and digital marketing
- Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
What are the several major factors changing the face of today’s marketing communications?
- Consumers are changing
- Better informed & more communications empowered - Marketing strategies are changing
- Marketers are shifting away from mass marketing - Sweeping advances in digital technology are causing remarkable changes in the ways companies and customers communicate with each other
What are brand content managers?
Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels
What is paid media?
Includes promo channels paid for by a sponsor
What is owned media?
Includes promo channels owned and controlled by a company
What is shared media?
Includes media shared by consumers with other consumers
What is integrated marketing communications?
A company clearly integrates its many communications channels to deliver a clear, consistent, and compelling message about an organization and its brand
True or false: consumers tend to view advertised products as more legitimate
TRUE
What is personal selling?
Involves a personal interaction between two or more people. Each person can observe the other’s needs and characteristics and make quick adjustments
What is sales promotion?
Includes a wide assortment of tools with unique qualities such as coupons, contests, discounts, premiums, etc
What is direct marketing?
Directed to a specific customer or customer community
What is a push strategy?
Involves “pushing” a product through marketing channels to final consumers
What is a pull strategy?
A producer directs its marketing activities toward final consumers to induce them to buy a product
Who uses push and pull strategies?
Some industrial-goods companies use only push strategies and some direct marketing companies use only pull strategies. Business-to-consumer companies usually pull more and b-to-b marketers tend to push more
What four important decisions must marketing management make when developing an advertising program?
Setting advertising objectives, setting an advertising budget, developing an advertising strategy, and evaluating advertising campaigns
What is an advertising objective?
A specific communication task to be accomplished with a specific target audience during a specific period of time
What is informative advertising?
Used heavily when introducing a new product category and its objective is to build primary demand
What is persuasive advertising?
Becomes more important as competition increases. A company’s objective is to build selective demand
What is comparative advertising?
A company directly or indirectly compares its brand with one or more other brands
What is reminder advertising?
Important for mature products and helps maintain customer relationships and keep consumers thinking about a product
What is an advertising budget?
Dollars and other resources allocated to a product or company advertising program
What are the four common methods used to set a total budget for advertising?
- Affordable method
- Percentage of sales method
- Competitive parity method
- Objective and task method
What is an affordable method?
Setting a promotion budget at a level management thinks a company can afford
What is a percentage of sales method?
Setting a promotion budget at a certain percentage of current or forecasted sales
What is a competitive parity method?
Setting promotion budgets to match competitors outlays
What is an objective and task method?
A company sets a promotion budget based on what it wants to accomplish with a promotion
What is an advertising strategy?
A company accomplishes its advertising objectives
What are two major elements of an advertising strategy?
Creating advertising messages and selecting advertising media
What is Madison & Vine?
Represents merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages
What is branded entertainment?
Involves making a brand an inseparable part of some other forms of entertainment
What is the most common form of branded entertainment?
Product placement
What is the first step in creating effective advertising messages?
Message strategy. A general message that will be communicated to consumers
Explain execution styles of messages?
- Slice of life
- Style shows one or more typical people using a product in a normal setting - Lifestyle
- Style shows how a product fits in a particular lifestyle - Fantasy
- Style creates fantasy around a product or use - Mood or image
- Style builds a mood or image around a product or service such as beauty, love, intrigue, or serenity - Musical
- Style shows people or cartoon characters singing about a product - Personality symbol
- Style creates a character that represents a product - Technical expertise
- Style shows a company’s expertise in making a product - Scientific evidence
- Style presents survey or scientific evidence that a brand is better or better liked than one or more other brands - Testimonial evidence or endorsement
- Style features highly believable or likeable source endorsing a product
What are the major steps in advertising media?
- Determining the reach, frequency, impact, and engagement
- Choosing among major media types
- Selecting specific media vehicles
- Choosing media timing
What is reach?
It is a measure of a percentage of people in a target market who are exposed to an ad campaign during a given period of time
What is frequency?
A measure of how many times an average person in a target market is exposed to a message
What are the two questions a company must address in developing advertising strategies and programs?
- How will a company organize its advertising function- who will perform which advertising tasks?
- How will a company adapt its advertising strategies and programs to complexities of international markets
What is an advertising agency?
A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs
What is a press relations or press agency?
Creating and placing news worth information in news media to attract attention to a person, products, or service
What is product publicity?
Publicizing specific products
What are public affairs?
Building and maintaining national or local community relationships
What is lobbying?
Building and maintaining relationships with legislators and government officials to influence legislation and regulation
What are investor relations?
Maintaining relationships with shareholder and others in a financial community
What is development?
Working with donors or members of non-profit organizations to gain financial or volunteer support
What are some tools that public relations uses?
News and special events
