Chapter 14

Question 1

Promotion mix

Answer 1

The specifics blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

Question 2

What are the 5 promotional tools?

Answer 2

Advertising

Sales promotion

Personal selling

Public relations

Direct and digital marketing

Question 3

Advertising

Answer 3

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

Question 4

Sales promotion

Answer 4

Short term incentives to encourage the purchase or sale of a product or a service

Question 5

Personal selling

Answer 5

The personal presentation by the firm’s sales force for the purpose of engaging customers, making sales, and building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events

Question 6

Direct and digital marketing

Answer 6

Involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

Question 7

What are the major factors that are changing the face of today’s margin communications?

Answer 7

Consumers are changing, they are better informed, and more communication empowered

Marketing strategies are changing, marketers are shifting away from mass marketing

Digital technology is causing changes in the ways companies and customers communicate with each other

Question 8

Content marketing

Answer 8

Involves creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels

Question 9

What are the 9 elements of communication

Answer 9

Sender

Encoding

Message

Media

Decoding

Receiver

Response

Feedback

Noise

Question 10

What are the several steps in developing an effective integrated communications and promotion program?

Answer 10

Identifying the target audience

Determining the communication objectives

Designing a message

Choosing communication channels and media

Selecting the message source

Collecting feedback

Question 11

What are the 4 methods used to set the total budget for advertising?

Answer 11

Affordable method

Percentage of sales method

Competitive parity method

Objective and task method

Question 12

Affordable method

Answer 12

The promotion budget is set at the level management thinks the the company can afford

Question 13

Percentage of sales method

Answer 13

The promotion budget is set at a certain percentage of current or forecasted sales or as a percentage of unit sales price

Question 14

Competitive parity method

Answer 14

The promotion budget is set to match competitors outlays

Question 15

Objective and task method

Answer 15

The promotion budget is developed by defining the specific promotion objectives, determining the tasks needed to achieve these objectives, and by estimating the costs of performing these tasks.

The sum of the costs is at the proposed promotion budget

Question 16

What are the 2 basic promotion mix strategies

Answer 16

Push strategy

Pull strategy

Question 17

Push strategy

Answer 17

Calls for using the sales force and trade promotion to push the product through channels

The producer promotes the product to channel members who in turn promote it to final consumers

Question 18

Pull strategy

Answer 18

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

Question 19

Sender

Answer 19

The party sending the message to another party

Question 20

Econding

Answer 20

The prices of putting thought into symbolic form

Question 21

Message

Answer 21

The set of symbols that the sender transmits

Question 22

Media

Answer 22

The communication channels through which the message moves from the sender to the receiver

Question 23

Decoding

Answer 23

The process by which the receiver assigns meaning to the symbols encoded

Question 24

Receiver

Answer 24

The party receiving the message sent by another party

Question 25

Response

Answer 25

The reaction of the receiver after being exposed to the message

Question 26

Feedback

Answer 26

The part of the receiver’s response communicated back to the sender

Question 27

Noise

Answer 27

The unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent