Chapter 15 Flashcards
To build good customer relationships, is it enough to just develop a good product, price it attractively, and make it available to target customers?
No, companies must also engage consumers and communicate their value propositions to customers, and what they communicate should not be left to chance
How can companies make sure what they communicate isn’t left to chance?
All communications must be planned and blended into carefully integrated programs.
What is a crucial element in a company’s efforts to engage customers and build profitable customer relationships?
Good communication
What is a promotion mix (marketing
communications mix?
The specific blend of promotion
tools that the company uses to
persuasively communicate
customer value and build
customer relationships.
What are the 5 major promotion tools?
- Advertising
- Sales promotion
- Personal selling
- Public relations (PR)
- Direct and digital marketing
What is advertising?
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
What is sales promotion?
Short-term incentives to encourage the purchase or sale of a product or a service.
What is personal selling?
Personal presentation by the firm’s
sales force for the purpose of engaging customers, making sales,
and building customer relationships.
What is public relations (PR)?
Building good relations with the company’s various publics by obtaining favourable publicity,
building up a good corporate image, and handling or heading off unfavourable rumours, stories, and
events.
What is 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 specific promotional tools used to communicate with customers in advertising?
Broadcast, print, online, mobile,
outdoor, and other forms
What are the specific promotional tools used to communicate with customers in sales promotion?
Discounts, coupons, displays, demonstrations, and events
What are the specific promotional tools used to communicate with customers in personal selling?
Sales presentations, trade shows, and
incentive programs
What are the specific promotional tools used to communicate with customers in public relations?
Press releases, sponsorships, events, and webpages
What are the specific promotional tools used to communicate with customers in direct and digital marketing?
Direct mail, email, catalogues, online and social media, mobile marketing, and more
What elements, beyond promotion tools, contribute to marketing communication?
The product’s design, its price, the shape and colour of its package, and the stores that sell it—all communicate something to buyers
What is the primary activity for engaging and communicating with customers?
The promotion mix is the primary engagement and communication activity.
What part of the marketing mix must be coordinated for the biggest impact on the message to customers?
The entire marketing mix - promotion and product, price, and place—must be coordinated for greatest impact.
What does the concept of integrated marketing communications suggest?
That the company must blend the promotion tools carefully into a coordinated promotion mix
How does a company determine what mix of promotion tools to use?
Companies within the same industry differ greatly in the design of their promotion mixes.
Ex. Mary Kay spends mostly on personal selling and direct marketing, whereas CoverGirl spends heavily on consumer advertising
What is the nature of each promotion tool like?
Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix.
What are the characteristics/benefits of advertising?
- Can reach masses of geographically dispersed buyers at a low cost per exposure
- Enables the seller to repeat a message many times
What is a form of advertising that can reach huge audiences?
Television: 103+ million people watched the 2018 Super Bowl, and as many as 26 million avid fans tuned in each week for the 2018 season of This Is Us. A popular TV ad’s reach can be extended through online and social media.
Clash of Clans Super Bowl ad got 100+ million views on TV and 82 million on Youtube
What form of advertising should companies use when they want to reach a mass audience?
TV
Beyond its reach, how can large-scale advertising say something positive about the seller’s size, popularity, and success?
Because of advertising’s public
nature, consumers tend to view advertised products as more legitimate.
How is advertising very expressive?
It allows the company to dramatize its products through the artful use of visuals, print, sound, and colour.
What’s an example of a company that uses ads to build up a long-term image for a product?
Coca-Cola
What is an example of a company using ads to trigger quick sales?
When Canadian Tire advertises weekend specials
What are the drawbacks of advertising?
- Is impersonal and lacks direct persuasiveness
- Can carry on only a one-way communication with an audience
- Can be very costly
Why is mass media advertising impersonal and lacks direct persuasiveness?
Although it reaches many people quickly, mass-media advertising is impersonal and lacks the direct persuasiveness of company salespeople.
What is the effect of advertising only carrying a one-way communication with an audience?
Audience does not feel that it has to pay attention or respond
How can advertising be very costly?
Although some advertising forms—such as newspaper, radio, or online advertising—can be done on smaller budgets, other forms, such as network TV advertising, require very large budgets
What is an example of a very expensive TV advertisement?
90-second Amazon Echo “Alexa Loses Her Voice” Super Bowl ad cost US$14.9 million for media time alone—more than US$165 000 per second—not counting the costs of producing the ad
How is personal selling the most effective tool in particular stages of the buying process?
Particularly in building up buyers’ preferences, convictions, and actions.
What is the benefit of personal selling involving personal interaction between two or more people?
Each person can observe the other’s needs and characteristics and make quick adjustments
What kinds of customer relationships can emerge from personal selling?
Ranging from matter-of-fact selling relationships to personal friendships. An effective salesperson keeps the customer’s interests at heart to build a long-term relationship by solving a customer’s problems
What kind of attentiveness can personal selling evoke from the buyer?
With personal selling, the buyer usually feels a greater need to listen and respond, even if the response is a polite “No, thank you.”
What are the drawbacks of personal sellling?
Sales force requires a longer-term commitment than does advertising
Why does the sales force in personal selling requires a longer-term commitment than does advertising?
- Advertising can be turned up or down, but the size of a sales force is harder to change
- Company’s most expensive promotion tool
How is personal selling a company’s most expensive promotion tool?
Costing companies on average $600 or more per sales call, depending on the industry. Firms spend up to 3x as much on personal selling as they do on advertising.
What are the benefits of sales promotion?
- Wide assortment of tools with many unique qualities
- Invite and reward quick response
How can the wide of assortment of tools in sales promotion be beneficial?
Attract consumer attention, engage consumers, offer strong incentives to purchase, and can be used to dramatize product offers and boost sagging sales
What is the difference between advertisement and sales promotion?
Advertising says, “Buy our product,” sales promotion says, “Buy it now.”
What are the drawbacks of sales promotion?
Effects can be short-lived, however, and often are not as effective as advertising or personal selling in
building long-run brand preference and customer relationships