Chapter 17 Marketing #2 Flashcards
Define Promotion.
Involves communicating with consumers to let them know about the product and persuade them to buy it.
Define advertising.
Is the paid non-personal communication of information about a product through various media.
Explain the five different types of advertising.
Reminder advertising: Aim is to let consumers know that a well-known product is still around. E.g. Coca Cola
Information Advertising: Aim is to give factual information to consumers about a product. E.g. Sale starts 10am
Persuasive Advertising: Aim is to convince consumers that they must have product and it is essential to their happiness in life. E.g. Lynx Effect
Generic Advertising: Aim is to advertise the product for the entire industry e.g. “ Buy Irish”
Comparative Advertising: Aim is to show how much better the product is in comparison to competitors. E.g. Lidl and Tesco
What are the functions of advertising?
- To provide information.
- To remind customers.
- To persuade customers.
- To compete with competitors.
- To increase business profits.
Define advertising media.
Is the different places where a business can place an ad.
What are the advantages and disadvantages of Internet as an advertising medium?
+: Global audience through social media. Can use picture, sound, movement.
—: Can be copied electronically with ease. Many ignore pop up ads.
What are the advantages and disadvantages of TV as an advertising medium?
+: Customers can see product at work, large audience, schedule ads to target certain consumers.
—: Very expensive. Ignored by switching channels.
What are the advantages and disadvantages of Radio as an advertising medium?
+: Cost effective, reach local audience and targeted audiences.
—: Relies on sound only to communicate.
What are the advantages and disadvantages of Newspaper as an advertising medium?
+: Can be re-read, cheap, certain newspapers certain target market.
—: Poor quality images as opposed to TV. Ad only seen for one day.
What are the advantages and disadvantages of Magazines as an advertising medium?
+: Can be re-read, last longer than newspapers, cost effective.
—: Only written, no sound.
What are the advantages and disadvantages of Billboards as an advertising medium?
+: Longer life span greater audience.
—: Impossible to predict who will see it.
What are the advantages and disadvantages of Direct Mail as an advertising medium?
+: Personalised to consumer. Reach only target market.
—: Expensive. Customers may ignore as “Junk Mail”.
Explain the four factors that determine the advertising medium chosen.
- Media Habits of Target Audience: Use media most used by target market to reach most potential customers. E.g. toys ads between kids programmes.
- Nature of the Product-If the product needs to be seen at work, visual is best. E.g. Washing Powders
- The Message: If technical information about the product written is best. E.g. Computer Specs
- The Cost: Advertising budget determines what medium is chosen. TV is expensive and advertising locally is cheaper.
What is ASAI?
Advertising Standards Authority for Ireland regulates the advertising industry to ensure consumers are protected from false and misleading advertising. Draws up codes of advertising standards. Can request that advertisers take down ads if consumers complain in writing.
Differentiate between a misleading and an offensive ad with examples.
Offensive Ad: Hunky Dory ran ads with scantily dressed women playing sport. People complained it was demeaning to women.
Misleading Ad: L’Oreal ad ran with “lashes 60% longer” while actor wore false lashes.
Define sales promotion.
Incentives or short term offers that a business gives to encourage consumers to buy more of a product sooner than they might have done.
Explain six types of sales promotion.
Free Samples: Consumers offered a free trial of the product which encourages them to try it and buy it. E.g. SuperValu
Money-Off Vouchers: Discount off a product to encourage price-conscious consumers to buy it. E.g. Tesco money-off voucher.
Free Gifts: Free gift with every purchase. Must be attractive one that consumers want. E.g. Happy Meal Toy
Competitions: Chance to win prize motivates consumers to buy and creates attention for the product. E.g. Dairy Milk cash prize.
Loyalty Cards: Get points for every purchase. Save up for free product. E.g. Nando’s Card
Merchandising: Display products and store in an attractive and eye-catching way to attract attention and get customers to buy more. E.g. Walk past sweets to get milk.
Explain public relations.
Refers to the efforts of a business to create and maintain a positive image of the business in the minds of consumers and build a good relationship with them. Responsibility of Public Relations Officer (PRO).
What are the four functions of public relations?
- Attract publicity for new products-PR stunt to get into newspapers and media. Consumers see the stunt and become aware of the product. E.g. Michael O’Leary dressed up as a cardinal to advertise new Ryanair route to Rome
- Target certain customers-By sponsoring events that appeal to them. Helps shape attitudes and create positive reaction. E.g. Flora Women’s Mini Marathon.
- Build Image that reflects well on the company-Charitable actions that gain consumer trust and encourage them to buy from them. E.g. Ronald McDonald Charity Foundation
- Defend product that has had bad publicity-Business shares their side of things. E.g. Dominos Pizza lack of quality scandal.
Explain five PR techniques.
- Events: An occasion to attract PR such as a Roadshow, exhibition and open days.
- News Conference: Invites newspapers to announce newsworthy developments in the business such as new jobs or new product launch.
- Public Service Activities: Helps the local community so consumers feel that they care. e.g.Tesco for Schools Club
- Sponsorship: Donates money to an event or team in return for showing its brand or name.
People who enjoy event will have positive view of the brand that ran it. E.g. Aviva Stadium - Celebrity Endorsements: Celebrities are paid to endorse or be associated with a brand. Celebrities market the product through TV ads, radio or social media. Consumers buy products used by celebrities they like, increasing sales. E.g. Taylor Swift became a brand ambassador for Pepsi.
What is Personal selling?
Personal Selling: Meeting with customers face-to-face to give them personalised advice specific to their needs and build a relationship with them to get them to buy the product. This relies on a salesperson’s knowledge and expertise.
E.g. Phone Shop Assistant who are knowledgeable about the products.
Evaluate the sales promotion techniques of public relations, advertising, sales promotion and personal selling using McDonalds as an example.
Public Relations: McDonald’s set up Ronald McDonald Foundation Children’s Charity. Evaluation: Effective as target market is parents who will choose to go there if supports children.
Advertising: McDonalds has the slogan “I’m Lovin It” with Justin Timberlake song.
Evaluation: This is effective as linking with famous celebrities helps attract teenagers.
Sales Promotion: McDonalds gives free gifts with happy meal.
Evaluation: Effective as target market children would like to collect the toys.
Personal Selling: Encourages consumers to buy more.
Evaluation: Staff well trained to ask consumers if they want fries with that which increases profits.
Define place with relation to the marketing mix.
Involves deciding where the product will be available for purchase and how the product gets from manufacturer to consumer. Also called Channels of Distribution.
Explain traditional channel of distribution. With ‘diagram’.
Producer —> Wholesaler —> Retailer —> Consumer.
Producer: Makes the product and sells in large quantities to wholesaler.
Wholesaler: Buys in huge amounts off producer then sells for a profit to retailer in smaller quantities.
Retailer: The shop sells individual products to the consumer.
Consumer: Buys product for their own personal use.
