Chapter 5: Promotion Flashcards
Promotion aims to
Inform
Persuade
Remind
Consumers about the products or brands
Promotion is part of the
Part of marketing mix
The promotional methods are
APPS Advertising Publicity and public relations Personal selling Sales promotion
Promotional methods are also known as
Promotion mix
Promotions can be communicated
Directly
Indirectly
Direct communication
Addresses individuals straight to the point
Indirect communication
Uses inference
Requires the person receiving to make assumptions
Promotion is used in different stages of CPDP. The general stages are
Pre-sales stage
Sales stage
The roles in promotion are
Informing
Persuading
Reminding
In informing, who does the company need to communicate to?
Business partners: help sell its products
Aka distribution intermediaries
End consumers
What information does the company need to convey?
Product details
Price
Place
Why do companies need to persuade?
Consumers have many alternatives to choose from
What does persuading do?
Make customers choose their products instead of competitors
How do companies enhance persuasion?
Luscious colors Enticing tag lines Try Presenter Appeals
What do companies remind customers about
They are still around
Still relevant to their needs
How do they remind?
Keep their brand in front of customers
Repeat key selling message
Reminding will help
Maintain brand, product awareness
Which will offset competitors marketing activity
Activities of reminding include
Advertisements: brand and tag line
Wearable merchandise
In store displays
Billboard, outdoor advertisement
The approaches to promotional activity
Personal
Mass approach
The factors that affect promotional approach can be classified under __________
The factors are
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
Items with high unit value
Are more complicated
Need more explaining
Product customization refers to
Fitting product to customers need
Products that do not require customization, they are called
Standardized products
In the introduction stage of PLC, the objective is to _____
How does the company inform?
Inform
Publicity before it is commercially available
Advertising to build awareness and interest
All promotional mix used
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
Why do companies increase distributors?
Build the distribution channel
Increase inventory levels
Retailer support
In decline stage of PLC are there any promotions made?
No.
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
The strategies of promotion are
Push
Pull
The channel of product movement involves
Produce
Wholesaler
Retailer
Consumer
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
The push strategy is directed at______
How does product move?
Middlemen
Product is pushed through the channel
What is advertising?
Mass communication that is
Paid
Non-personal
What is an advertisement about?
Good, service, idea in which the company is clearly identified
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
Ad space is ______ hence, they must ensure it ______
Expensive
Works to a certain extent
What are the two kinds of advertising?
Product
Institutional
What message does a product advertisement carry?
Features Functions Design Brand name Sales promotions
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
What is reach?
The no. of different people or households exposed to an advertisement
What is the reach for a newspaper?
The total circulation
Media and television describe their reach using?
Ratings
What do advertisers aim for in reach?
To maximize reach to target market at lowest cost
What is frequency?
The average number of times a person in the target audience is exposed to message or advertisement
Why do advertisers need higher frequency?
Consumers do not pay close attention.
With repeats exposure, they respond more favorably
What does GRP stand for?
Gross rating point
What is GRP?
It is a reference number telling the effectiveness of different media
How is GRP calculated
Multiplying reach and frequency
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
What does CPM stand for?
Cost per thousand
What is CPM about?
The cost of reaching 1000 individuals or households with the advertising message in a given medium
What are the appeals in advertising?
Rational
Fear
Sex
Humorous
In rational appeal, what do the messages suggest?
That they can better meet their
Functional
Utilitarian
Practical needs
What does rational appeal highlight about the product?
Features
Characteristics
When is rational appeal used?
When the product is complicated or technical in nature
Fear appeal uses messages that _____
Suggest consumers can avoid some negative experience if they
purchase a particular product or service /change in behavior
When does fear appeal backfire?
When audience attention is not caught
Leading them to tune out the message
In sex appeal,
Messages are used to suggest that
Product will increase attractiveness of user
What is the advantage of sex appeals
Gains attention of the audience
What is the disadvantage of sex appeal?
Little impact on how consumer think feel or act
It may distract them from the ads purpose
Humorous appeals uses messages in what manner?
Direct
Subtle
The messages of humorous appeal suggest that
Their product is more fun and exciting than competitors offerings
Where can humorous appeals be found?
In many product categories
It is widespread
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
How many types of media are there?
9
What are the types of media?
TV Internet, online advertising Newspaper Magazines Radio Outdoor Direct mail Directories SMS/MMS
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
What is television?
A powerful and versatile medium with both audio and visual appeal
What are the advantages of television
It has good market coverage
Audio+visual uses colors and creativity
What are the disadvantages of television?
High production cost
High up front expenditure
Extremely short life span
What is Internet also known as?
Online advertising
What is Internet?
A form of digital advertising
Associated with websites, smartphones, Internet
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
What are the disadvantages of online advertising?
It is often perceived as junk messages
What is lead time?
Preparation
Paid directory search listings are under online advertising or directories?
Online advertising
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
What are the disadvantages to newspapers?
High up front expenditure
No audio/video capability
Short life span
What are magazines?
A high involvement medium
Due to nature of active reading
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
What is a newspaper?
A flexible medium with short lead time
What is the disadvantage of magazines?
Inflexible and long lead times
Market could be cluttered and fragmented
Lacks ability for video images
What is radio?
Low cost medium with good reach
What are the advantages of using radio?
Repetitions are usual
Offers segmentation opportunities
Low cost
What are the disadvantages of using radio
Low consumer attention
Lacks visual element
Markets may be fragmented
What is outdoor?
A flexible low cost medium that carries messages in the open outdoors
What are the advantages of outdoor?
Flexible geographical coverage
Excellent reminder of advertising
What are the disadvantages of outdoor advertising
A lot of waste circulation
Cluttering and defacing of landscape
What is direct mail?
Advertising to a highly targeted audience
What are the advantages of direct mail?
Highly targeted
Low cost
What are the disadvantages of direct mail?
Difficult to find good database lists
Often seen as junk mail
What are directories?
Listing of industry members or occupations with advertisements embedded
What are the advantages of directories?
They are highly targeted
Relevant
Low cost
What are the disadvantages of directories?
Large amount of waste coverage
Low ability to use visual creativity
What is SMS/MMS?
A form of advertising messages sent to a highly targeted audience on their personal digital devices
What are the advantages of SMS?
Highly targeted
Low cost
What are the disadvantages to SMS?
Difficult to find good database lists (costly to find)
Often seen as junk
What is public relations?
Communications targeted at specific target audiences (stakeholders)
What is publicity?
Form of PR communication about an organisation or its products
Presented by the media
Not paid directly by the org.
What are examples of publicity?
News story in mass media Interview, informal speech: endorsement by individual Press release Press conference Viral marketing
What is a press release?
Distribution of a written story for publicity to the media
What is a press conference?
Release of information to a selected group (usually correspondents) through a speech
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
Why is it called viral marketing?
It spreads like a virus
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
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
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
What is personal selling?
Presentation of a product to a prospective customer by a representative of the selling organisation
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
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
What are the approaches to personal selling?
Traditional F2F personal selling Telemarketing Team selling Systems selling Relationship selling Online selling
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)
What is telemarketing?
Use of telecommunications equipment and database systems
Locate
Communicate with
Sell to customers
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.
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
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
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
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
What does promotion affect advertising and personal selling?
Supplement advertising
Coordinate personal selling
What are the common types of sales promotions?
Coupons Dead Gifts Premiums Contests Sweepstakes Samples Continuity/ loyalty programs POP displays Rebates
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
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
What are gifts?
Giving away of merchandise that is otherwise sold at particular prices by the company for free with specific purchases
What are premiums?
Giving away of merchandise for free
Not marketed by the company
With specific purchases by customer
What are contests?
Competition
Consumers make use of skills to win specific prizes
What are sweepstakes?
Use of lucky draw
Consumer may enter to win specific prizes based on luck
What are samples
The use of a limited qty
Or free trial of the product
What are loyalty programs?
System of rewards based on continuous purchase
Gain loyalty points which can be accumulated and converted into something of value
What are pop displays?
Use of attractive visual materials near the point where products are on display
To appeal to customers
What are examples of POP displays?
Standees Wobblers LCD screens: static displays, video presentation Banner ads Posters
What are rebates?
% return the customer would get
Based on amount purchase
Sum of money back in subsequent purchase
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
