Chapter 15: Advertising, Sales Promotions, and Personal Selling Flashcards
Advertising
paid message
delivered through media
must have identifiable source
designed to inform, remind, persuade
types of ads (4)
product
institutional
advocacy
public service
AIDA model
think feel do
attention -> interest -> desire -> action
laggard effect
advertising does not always have an immediate impact
multiple exposures are often necessary
difficult to determine which exposure leads to purchase
informative advertising
early in PLC, firms use informative advertising to educate consumers about the product/service
persuasive advertising
generally occurs in growth and early maturity stages of the PLC when competition is most intense
in the alter stage of the pLC may be used to reposition an established brand
reminder advertising
after products have gained acceptance
top of the mind awareness or unaided recall (when you know something without having to be reminded)
regulatory and ethical issues in advertising
messages with an economic motivation
must be fact based
protected under the charter of rights and freedoms
publicity and public relations
publicity = free media attention
importance of PR has frown as the cost of other media has increased
digital media tools range from
websites, blogs, social media, and mobile apps
sales promotions
can be targets at either the ned user consumer of channel members
can be used in either push or pull strategies
push strategy
when we have sale promotions when the marketer pushes products so the consumer can buy it (coupons, rewards, etc.)
pull strategy
consumers ask for the product, why aren’t you carrying it?? eventually the retailer may carry it
Coupons
objective: stimulate demand
advantages: encourage retailer support and allow for direct tracing of sales
disadvantages: have low redemption rates and high costs
deals
objective: encourage trial
advantages: reduce consumer risk and retaliate against competitive action
disadvantages: may reduce perception of value
premiums
objective: build goodwill
advantages: increase perception of value
disadvantages: result in consumers who buy for the premium, not the product and have to be carefully managed
contests
objective: build goodwill
advantages: generate excitement
disadvantages: require creativity and must be monitored
sweepstakes
objective: encourage higher consumption
advantages: minimizes brand switching among existing consumers
disadvantages: sales often decline afterward
samples
objective: encourage trial
advantages: offer direct involvement
disadvantages: have high cost to the firm
loyalty programs
objective: encourage repurchase
advantages: create loyalty
disadvantages: have high cost to the firm
PDP displays
objective: increase brand trial
advantages: provide high visibility and provide in-store support
disadvantages: it is difficult to get a good location in the store and can be costly to the firm
Rebates
objective: stimulate demand
advantages: increase value perception
disadvantages: are easily copied by competitors and may just advance future sales
B2B saes promotion
discounts and allowances:
cash discounts, trade discounts, early payment, seasonal discount, bulk purchase, commission, other allowances
evaluating sales promotions using marketing metrics:
realized margin
cost of additional inventory
potential increase in sales
long term impact
potential loss from switches from more profitable items
additional sales by customers
