Chapter 5: Promotion Flashcards
0
Q
Promotion aims to
A
Inform
Persuade
Remind
Consumers about the products or brands
1
Q
Promotion is part of the
A
Part of marketing mix
2
Q
The promotional methods are
A
APPS Advertising Publicity and public relations Personal selling Sales promotion
3
Q
Promotional methods are also known as
A
Promotion mix
4
Q
Promotions can be communicated
A
Directly
Indirectly
5
Q
Direct communication
A
Addresses individuals straight to the point
6
Q
Indirect communication
A
Uses inference
Requires the person receiving to make assumptions
7
Q
Promotion is used in different stages of CPDP. The general stages are
A
Pre-sales stage
Sales stage
8
Q
The roles in promotion are
A
Informing
Persuading
Reminding
9
Q
In informing, who does the company need to communicate to?
A
Business partners: help sell its products
Aka distribution intermediaries
End consumers
10
Q
What information does the company need to convey?
A
Product details
Price
Place
11
Q
Why do companies need to persuade?
A
Consumers have many alternatives to choose from
12
Q
What does persuading do?
A
Make customers choose their products instead of competitors
13
Q
How do companies enhance persuasion?
A
Luscious colors Enticing tag lines Try Presenter Appeals
14
Q
What do companies remind customers about
A
They are still around
Still relevant to their needs
15
Q
How do they remind?
A
Keep their brand in front of customers
Repeat key selling message
16
Q
Reminding will help
A
Maintain brand, product awareness
Which will offset competitors marketing activity
17
Q
Activities of reminding include
A
Advertisements: brand and tag line
Wearable merchandise
In store displays
Billboard, outdoor advertisement
18
Q
The approaches to promotional activity
A
Personal
Mass approach
19
Q
The factors that affect promotional approach can be classified under __________
The factors are
A
Target market
Type of product
Geographic proximity
Type of customer: value and amount
Unit value of product: risk
Amount of product customization
Amount of pre sale and post sale service required
20
Q
Items with high unit value
A
Are more complicated
Need more explaining
21
Q
Product customization refers to
A
Fitting product to customers need
22
Q
Products that do not require customization, they are called
A
Standardized products
23
Q
In the introduction stage of PLC, the objective is to _____
How does the company inform?
A
Inform
Publicity before it is commercially available
Advertising to build awareness and interest
All promotional mix used
24
In the growth stage of PLC, the objective is to _______
Promotional mix elements used are _____
Not required in growth stage
Persuade to buy their product instead of competitor
Gain brand preference
Solidify distribution
Advertising used to stress brand differences
Personal selling on business partners (distributors)
Publicity and sales promotion
25
Why do companies increase distributors?
Build the distribution channel
Increase inventory levels
Retailer support
26
In decline stage of PLC are there any promotions made?
No.
27
Companies with large budgets should____
Because______
Companies with smaller budgets have to _____
Use a mass approach, more effective to reach out to target market
Rely on direct methods
28
The strategies of promotion are
Push
| Pull
29
The channel of product movement involves
Produce
Wholesaler
Retailer
Consumer
30
The pull strategy is directed at _______
Why?
How does the product move?
End consumers
Will motivate consumers to ask retailers for product
Retailers will request from wholesales, ordering from producer
Product is pulled through the channel
31
The push strategy is directed at______
How does product move?
Middlemen
Product is pushed through the channel
32
What is advertising?
Mass communication that is
Paid
Non-personal
33
What is an advertisement about?
Good, service, idea in which the company is clearly identified
34
By paying for the advertising ,
Space is bought for advertising message
| Company gets to control what is being said, to whom , and when it is sent
35
Ad space is ______ hence, they must ensure it ______
Expensive
| Works to a certain extent
36
What are the two kinds of advertising?
Product
| Institutional
37
What message does a product advertisement carry?
```
Features
Functions
Design
Brand name
Sales promotions
```
38
What information is in the message of an institutional advertisement?
What is not its intention?
About the Company or manufacturer
```
History
Accolades
Awards won
Interesting facts about resources
Values held by company
```
To sell a specific product
39
What is reach?
The no. of different people or households exposed to an advertisement
40
What is the reach for a newspaper?
The total circulation
41
Media and television describe their reach using?
Ratings
42
What do advertisers aim for in reach?
To maximize reach to target market at lowest cost
43
What is frequency?
The average number of times a person in the target audience is exposed to message or advertisement
44
Why do advertisers need higher frequency?
Consumers do not pay close attention.
With repeats exposure, they respond more favorably
45
What does GRP stand for?
Gross rating point
46
What is GRP?
It is a reference number telling the effectiveness of different media
47
How is GRP calculated
Multiplying reach and frequency
48
In GRP, the advertiser must consider that it
Has a balance reach, frequency and cost
| And that the number of GRP is appropriate to campaign
49
What does CPM stand for?
Cost per thousand
50
What is CPM about?
The cost of reaching 1000 individuals or households with the advertising message in a given medium
51
What are the appeals in advertising?
Rational
Fear
Sex
Humorous
52
In rational appeal, what do the messages suggest?
That they can better meet their
Functional
Utilitarian
Practical needs
53
What does rational appeal highlight about the product?
Features
| Characteristics
54
When is rational appeal used?
When the product is complicated or technical in nature
55
Fear appeal uses messages that _____
Suggest consumers can avoid some negative experience if they
| purchase a particular product or service /change in behavior
56
When does fear appeal backfire?
When audience attention is not caught
| Leading them to tune out the message
57
In sex appeal,
Messages are used to suggest that
| Product will increase attractiveness of user
58
What is the advantage of sex appeals
Gains attention of the audience
59
What is the disadvantage of sex appeal?
Little impact on how consumer think feel or act
| It may distract them from the ads purpose
60
Humorous appeals uses messages in what manner?
Direct
| Subtle
61
The messages of humorous appeal suggest that
Their product is more fun and exciting than competitors offerings
62
Where can humorous appeals be found?
In many product categories
| It is widespread
63
The disadvantages of humorous appeals are
Wear out quickly: boring to consumer after first few exposures
Effectiveness of humor: varies across cultures if used in global campaign
64
How many types of media are there?
9
65
What are the types of media?
```
TV
Internet, online advertising
Newspaper
Magazines
Radio
Outdoor
Direct mail
Directories
SMS/MMS
```
66
What are the common criteria to assess advantages and disadvantages of a type of media?
```
Cost
Lead time
Market coverage
Visuals capability
Perception of it
Lifespan
```
67
What is television?
A powerful and versatile medium with both audio and visual appeal
68
What are the advantages of television
It has good market coverage
| Audio+visual uses colors and creativity
69
What are the disadvantages of television?
High production cost
High up front expenditure
Extremely short life span
70
What is Internet also known as?
Online advertising
71
What is Internet?
A form of digital advertising
| Associated with websites, smartphones, Internet
72
What are the advantages of Internet advertising?
Lower cost outlay
More targeted by interest
Ability to use colour, graphics and movement
It can engage audience and turn campaign viral
73
What are the disadvantages of online advertising?
It is often perceived as junk messages
74
What is lead time?
Preparation
76
Paid directory search listings are under online advertising or directories?
Online advertising
77
What are the advantages of using newspaper?
Low cost per prospect
Intensive local coverage, no limit to quantity coverage
Fast
Higher involvement, ability to cover fine details
78
What are the disadvantages to newspapers?
High up front expenditure
No audio/video capability
Short life span
79
What are magazines?
A high involvement medium
| Due to nature of active reading
80
What are the advantages of magazines?
Low cost per prospect
Selected audience especially for special interest magazines
National coverage
High quality colour printing
Ability to print serials details in fine print
81
What is a newspaper?
A flexible medium with short lead time
82
What is the disadvantage of magazines?
Inflexible and long lead times
Market could be cluttered and fragmented
Lacks ability for video images
83
What is radio?
Low cost medium with good reach
84
What are the advantages of using radio?
Repetitions are usual
Offers segmentation opportunities
Low cost
85
What are the disadvantages of using radio
Low consumer attention
Lacks visual element
Markets may be fragmented
86
What is outdoor?
A flexible low cost medium that carries messages in the open outdoors
87
What are the advantages of outdoor?
Flexible geographical coverage
| Excellent reminder of advertising
88
What are the disadvantages of outdoor advertising
A lot of waste circulation
| Cluttering and defacing of landscape
89
What is direct mail?
Advertising to a highly targeted audience
90
What are the advantages of direct mail?
Highly targeted
| Low cost
91
What are the disadvantages of direct mail?
Difficult to find good database lists
| Often seen as junk mail
92
What are directories?
Listing of industry members or occupations with advertisements embedded
93
What are the advantages of directories?
They are highly targeted
Relevant
Low cost
94
What are the disadvantages of directories?
Large amount of waste coverage
| Low ability to use visual creativity
95
What is SMS/MMS?
A form of advertising messages sent to a highly targeted audience on their personal digital devices
96
What are the advantages of SMS?
Highly targeted
| Low cost
97
What are the disadvantages to SMS?
Difficult to find good database lists (costly to find)
| Often seen as junk
98
What is public relations?
Communications targeted at specific target audiences (stakeholders)
99
What is publicity?
Form of PR communication about an organisation or its products
Presented by the media
Not paid directly by the org.
100
What are examples of publicity?
```
News story in mass media
Interview, informal speech: endorsement by individual
Press release
Press conference
Viral marketing
```
101
What is a press release?
Distribution of a written story for publicity to the media
102
What is a press conference?
Release of information to a selected group (usually correspondents) through a speech
103
What is viral marketing?
Sending a message (story or ad) by digital means (email, social media) to a selected group of customers or influential members of company's target market.
Gets forwarded to friends and colleagues spreading from one person to person
104
Why is it called viral marketing?
It spreads like a virus
105
What are examples of public relation activities?
```
Favourable news presentations of a product or organisation
Sponsorships of charity
Sporting or cultural events
Lobbying
Company newsletters
Annual reports
```
106
What are the benefits of PR and publicity?
Lower cost than advertising or personal selling
Greater credibility than advertising (from independent 3rd party)
Can result in increased readership: consumers conditioned to ignore advertising. But they read editorial material or news
More info can be presented in editorial material than in standard ad
Events can attract attention, better than ad
107
What are the drawbacks of PR and publicity?
Marketer loses control over message: no guarantee media will actually public the piece of publicity
Publicity is not free: indirect costs (press expenses) , hiring of PR agencies/running of PR department
108
What is personal selling?
Presentation of a product to a prospective customer by a representative of the selling organisation
109
When is personal selling effective?
Market is concentrated geographically: in a few industries or over a few large customers
Product has high unit value, technical in nature and requires demonstration
Sales often involves trade-in (physical presence)
Product in introductory stage (explanation and pushing)
Company does not have enough money to ad in mass media
110
What are the salesperson skills required in personal selling?
Organising ability: plan scheduled, activities, priorities
Consulting skills; working with customers to discover needs and offering a solution
Communication skills: bring messages effectively and efficiently across in a F2F meeting/telephone/email/writing to current or prospective customers
Problem solving skills: diagnose customers issues and provide solution to trouble-shoot technical problems
Credibility: develop trust of customers managers,peers. Requires knowledge, reliability, accuracy and commitment
111
What are the approaches to personal selling?
```
Traditional F2F personal selling
Telemarketing
Team selling
Systems selling
Relationship selling
Online selling
```
112
What is traditional face to face personal selling?
An individual salesperson making direct contact with a prospective or current buyer
Engaging in 2 way communication
Understand needs of buyer
Inform them about the company, brand or products (benefit, features, specifications, pre post sales service)
113
What is telemarketing?
Use of telecommunications equipment and database systems
Locate
Communicate with
Sell to customers
114
What is team selling?
A group of people from diff departments
Brought together to meet the need of a particular customer (another org.)
Share knowledge skills and experiences
Provide comprehensive set of solution to buying org.
115
What is systems selling?
Selling a total package of goods and services
Includes core product, installation, training, maintenance, spare parts, and financing
Better meet needs
116
What is relationship selling?
Involves the development of mutually beneficial relationship with customers over extended period
Pays more attention to need of buyer
Repeat sales (lower selling costs)
More profitable than 1 off sales
117
What is online selling?
Using websites as a key component in integrated selling
Pop up instant chats
Sales representative offers advice over the Internet to prospective buyer based on preferences
118
What is sales promotion?
Activities intended to stimulate customer demand, Motivate middlemen
in the short term through inducement of value offered
Arouse interest in buying a good or service
119
What does promotion affect advertising and personal selling?
Supplement advertising
| Coordinate personal selling
120
What are the common types of sales promotions?
```
Coupons
Dead
Gifts
Premiums
Contests
Sweepstakes
Samples
Continuity/ loyalty programs
POP displays
Rebates
```
121
What are coupons?
Use of a cut out (from newspaper ad, magazine ad, or flyer) entitled the user to a discount/price off a product
122
What are deals?
The use of a special price on a product for a specified period.
Discount
Price off
Bundle of products at a lower total price
123
What are gifts?
Giving away of merchandise that is otherwise sold at particular prices by the company for free with specific purchases
124
What are premiums?
Giving away of merchandise for free
Not marketed by the company
With specific purchases by customer
125
What are contests?
Competition
| Consumers make use of skills to win specific prizes
126
What are sweepstakes?
Use of lucky draw
| Consumer may enter to win specific prizes based on luck
127
What are samples
The use of a limited qty
| Or free trial of the product
128
What are loyalty programs?
System of rewards based on continuous purchase
| Gain loyalty points which can be accumulated and converted into something of value
129
What are pop displays?
Use of attractive visual materials near the point where products are on display
To appeal to customers
130
What are examples of POP displays?
```
Standees
Wobblers
LCD screens: static displays, video presentation
Banner ads
Posters
```
131
What are rebates?
% return the customer would get
Based on amount purchase
Sum of money back in subsequent purchase
132
What has to be kept in mind for promotional mix?
```
Target audience
Stage of products life cycle
Characteristics of products
Decision stage of buyer
Channel of distribution
```
