chapter 13: promotion Flashcards
The Promotion Mix (Marketing Communication Mix)
the specific blend of promotion tools that the company uses to:
engage consumers;
persuasively communicate customer value;
build customer relationships
Advertising
any paid form of non personal presentations and promotion of ideas, goods, or services by an identified sponsor
advertising tools
broadcast
internet
mobile
advantages of advertising
(1) consumers tend to view advertised products as more legitimate
(2) it is very expressive because you can use visuals, print, sound and colour
(3) it can build a long term image for a product
(4) it can trigger quick sales
(5) reaches masses at low cost per exposure
disadvantages of advertising
(1) its impersonal
(2) it can become very expensive
sales promotion
short-term incentives to encourage the purchase or sale of a product or service
tools of sales promotion
discounts
coupons
displays
demonstrations
advantages of sale promotions
(1) includes a wide assortment of tools
(2) attracts consumer attention
(3) offer strong incentives to purchase
(4) dramatizes product offers
(5) invited quick consumer response
disadvantages of sale promotions
effects are short-lived
personal selling
personal customer interactions by the firm’s sales force for the purpose of making sales and building customer relationships
tools of personal selling
presentations
incentive programs
advantages of personal selling
(1) communicates personally 2 ways
(2) builds preferences, convictions, and actions
(3) allows relationship building
disadvantages of personal selling
(1) requires long-term commitment to sales force
(2) most expensive promotion tool
Public Relations (PR)
building good relations with the company’s various publics by:
obtaining favourable publicity
building up a good corporate image
handling or heading off unfavourable rumours, stories, and events
tools of public relations
press releases
sponsorships
events
advantages of public relations
(1) legitimizes credibility, very believable
(2) reaches people who resist advertising
(3) dramatizes a company or product
(4) saves money when used proactively
disadvantages of public relations
tends to be used as an afterthought
Direct and Digital Marketing
engaging directly with carefully targeted individual consumers and customer communities
goal is to both obtain an immediate response and build lasting customer relationships
tools of Direct and Digital Marketing
direct mail
catalogues
online and social media
mobile marketing
disadvantages of Direct and Digital Marketing
(1) communicates more directly with targeted customers
(2) reaches customers with tailored messages
(3) creates interactivity
(4) build one-to-one relationships
disadvantages of Direct and Digital Marketing
often perceived as junk/spam mail
what are the components of the The Promotion Mix (Marketing Communication Mix)
Advertising
Sales Promotion
Personal Selling
Public Relations (PR)
Direct and Digital Marketing
what major factors are changing in the face of today’s marketing communications?
what compose the New Marketing Communications Model?
consumers
marketing startegies
digital technology
how are consumers influencing the New Marketing Communications Model?
they are better informed and more communications empowered
Rather than relying on marketer-supplied info, they have the internet, social media, and other technologies to find info
how are marketing strategies influencing the New Marketing Communications Model?
as mass markets have fragmented, marketers are shifting away from mass marketing
how is digital technology influencing the New Marketing Communications Model?
changes in digital technology are causing remarkable changes in the ways companies and customers communicate with each other
The new digital and social media have given birth to a more targeted, social, and engaging marketing communications model
what is the main differences between the old marketing strategies and the New Marketing Communications Model that summarize its factors?
no interrupting customers and force-feeding them mass messages
new media formats let marketers reach smaller communities of consumers in more interactive, engaging ways
Many marketers are now viewing themselves as brand content managers
brand content managers
creating, inspiring, and sharing brand messages and conversations with and among consumers across channnels
they can be paid, owned, earned, and shared channels
Integrated Marketing Communications (IMC)
carefully integrating and coordinating the company’s many communications channels
goal is to deliver a clear, consistent, and compelling message about the organization and its products
blend promotion tools carefully into a coordinated promotion mix
push strategy
a promotion strategy that calls for using the sales force and trade promotion to push the product through channels
The producer promotes the product to channel members, which in turn promotes it to final consumers (B2B)
pull strategy
a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product
creating a demand vacuum that “pulls” the product through the channel (B2C)
what are the 4 important decisions that must be made when developing an advertising strategy ?
- Setting Advertising Objectives
- Setting the Advertising Budget
- Developing Advertising Strategy
- Evaluating Advertising Effectiveness
- Setting Advertising Objectives
what does this do?
what type of advertising does it include?
a specific communication task to be accomplished with a specific target audience during a specific period of time
goal is to inform, persuade, or remind
informative advertising
persuasive advertising
comparative (attack) advertising
reminder advertising
informative advertising
used to build primary demand
persuasive advertising
The objective is to build selective demand
when do you use informative advertising?
used heavily when introducing a new product category
when does persuasive advertising become more important?
becomes more important as competition increases
comparative (attack) advertising
when a company directly or indirectly compares its brand with one or more other brands
reminder advertising, what are the positives?
helps maintain customer relationships and keep consumers thinking about the product
for what type of products is reminder advertising important?
important for mature products
what are the 4 common methods toast the advertising budget (2)
affordable method
percentage-of-sales method
competitive-parity method
objective-and-task method
affordable method of setting an advertising budget
setting the promotion budget at the level management thinks the company can afford
what is a con of the affordable method of setting an advertising budget
places promotion last among spending priorities
percentage-of-sales method of setting an advertising budget
setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
pros of the percentage-of-sales method of setting an advertising budget
(1) simple to use
(2) helps management think about the relationships between promotion spending, selling price, and profit per unit
cons of the percentage-of-sales method of setting an advertising budget
(1) wrongly views sales as cause of promotion rather than as the result
(2) budget varied year to year
therefore long-term planning is difficult
competitive-parity method of setting an advertising budget
setting the promotion budget to match competitors’ outlays
Objective-and-Task Method of setting an advertising budget
developing the promotion budget by:
(1) defining specific objectives
(2) determining the tasks that must be performed to achieve these objectives
(3) estimating the costs of performing these tasks
The sum of these costs is the proposed promotion budget
what are the two steps of developing and advertising strategy (3)
STEP 1: Creating advertisement messages
STEP 2: Selecting advertising media
what are important factors influence the creation of advertising messages?
Advertising clutters
Madison and Vine
Message strategy
Message execution
consumer generated content (if you want to)
what is an advertising clutter
the high volume of commercial messages that the average consumer is exposed to on a daily basis
why are advertising clutters not working anymore?
consumers have more power over ad
increasingly, they are choosing not to watch ads
Madison & Vine
represents the merging of advertising and entertainment
goal is to break through the clutter and create new avenues for reaching customers with more engaging messages
includes branded entertainment (brand integration)
what is the goal of merging advertising and entertainment (advertainment)
make ads so entertaining, or so useful, that people will want to watch them
Branded entertainment (brand integration)
making the brand an inseparable part of some other form of entertainment
ex: the hosts of Breakfast Television Montreal having a Tim Hortons mug
what is the importance of the Message Strategy?
People will engage only if they believe they will benefit from doing so
Advertising appeals should be meaningful, believable, and distinctive
us a creative concept
creative concept (Big Idea) of the message strategy
will bring an advertisement message strategy to life in a distinctive and memorable way
Message Execution
“big” idea must turn into an actual ad execution
what are the styles of message execution?
Slice of life: typical, “real” people
Lifestyle
Fantasy
Mood/image
Musical
Personality Symbol (Mr. Clean)
Technical Expertise
Scientific Evidence
Testimonial evidence or endorsement
technical expertise presented in the message execution
how good they are at their craft (how good they are at brewing beer)
Scientific Evidence presented in the message execution
used to show that the brand is better than other brands
what are the 4 major steps of electing an advertising media?
- determining reach, impact, frequency, and engagement
- choosing among major media types
- selecting specific media vehicles
- Deciding on media timing (scheduling advertisements)
selecting specific media vehicles
specific media within each general media type
ex: Hockey Night in Canada
Deciding on media timing (scheduling advertisements)
Can be continuous, seasonal, or pulsing
pulsing
scheduling as unevenly over a given time period
what must you do when evaluating the advertising effectiveness (4)
Measure the Return on Advertising Investment
Measure pre and post communication effect
Measure sales and profits effect
Measuring the Return on Advertising Investment
the net return on advertising investment divided by the costs of the advertisement investment
what are the functions that public relations perform
Press relations or press agency
Product publicity
Public affairs
Lobbying
Investor Relations
Development
Press relations or press agency functions
creating and placing newsworthy information in the news media to attract attention to a person, product, or service
Product publicity functions
publicizing specific products
Public affairs functions
building and maintaining national or local community relationships
Lobbying functions
building and maintaining relationships with legislators and government officials
goal is to influence legislations and regulation
Investor Relations functions
maintaining relationships with shareholders and other in the financial community
Development functions
working with donors or members of nonprofit organizations to gain financial or volunteer support
Why Use PR?
PR can have a strong impact on public awareness at a much lower cost than advertising ca
how to use PR
News
Speeches Special events
Written materials
Audiovisual materials
Corporate identity materials (stationary) WOM
Company website
