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Marketing > Chapter 5: Promotion > Flashcards

Chapter 5: Promotion Flashcards

0
Q

Promotion aims to

A

Inform
Persuade
Remind

Consumers about the products or brands

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1
Q

Promotion is part of the

A

Part of marketing mix

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2
Q

The promotional methods are

A 
APPS
Advertising
Publicity and public relations 
Personal selling
Sales promotion
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3
Q

Promotional methods are also known as

A

Promotion mix

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4
Q

Promotions can be communicated

A

Directly

Indirectly

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5
Q

Direct communication

A

Addresses individuals straight to the point

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6
Q

Indirect communication

A

Uses inference

Requires the person receiving to make assumptions

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7
Q

Promotion is used in different stages of CPDP. The general stages are

A

Pre-sales stage

Sales stage

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8
Q

The roles in promotion are

A

Informing
Persuading
Reminding

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9
Q

In informing, who does the company need to communicate to?

A

Business partners: help sell its products
Aka distribution intermediaries

End consumers

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10
Q

What information does the company need to convey?

A

Product details
Price
Place

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11
Q

Why do companies need to persuade?

A

Consumers have many alternatives to choose from

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12
Q

What does persuading do?

A

Make customers choose their products instead of competitors

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13
Q

How do companies enhance persuasion?

A 
Luscious colors
Enticing tag lines 
Try 
Presenter 
Appeals
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14
Q

What do companies remind customers about

A

They are still around

Still relevant to their needs

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15
Q

How do they remind?

A

Keep their brand in front of customers

Repeat key selling message

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16
Q

Reminding will help

A

Maintain brand, product awareness

Which will offset competitors marketing activity

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17
Q

Activities of reminding include

A

Advertisements: brand and tag line
Wearable merchandise
In store displays
Billboard, outdoor advertisement

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18
Q

The approaches to promotional activity

A

Personal

Mass approach

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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

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20
Q

Items with high unit value

A

Are more complicated

Need more explaining

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21
Q

Product customization refers to

A

Fitting product to customers need

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22
Q

Products that do not require customization, they are called

A

Standardized products

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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

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24
Q

In the growth stage of PLC, the objective is to _______

Promotional mix elements used are _____

Not required in growth stage

A

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

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25
Q

Why do companies increase distributors?

A

Build the distribution channel
Increase inventory levels
Retailer support

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26
Q

In decline stage of PLC are there any promotions made?

A

No.

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27
Q

Companies with large budgets should____
Because______

Companies with smaller budgets have to _____

A

Use a mass approach, more effective to reach out to target market

Rely on direct methods

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28
Q

The strategies of promotion are

A

Push

Pull

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29
Q

The channel of product movement involves

A

Produce
Wholesaler
Retailer
Consumer

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30
Q

The pull strategy is directed at _______

Why?

How does the product move?

A

End consumers

Will motivate consumers to ask retailers for product

Retailers will request from wholesales, ordering from producer

Product is pulled through the channel

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31
Q

The push strategy is directed at______

How does product move?

A

Middlemen

Product is pushed through the channel

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32
Q

What is advertising?

A

Mass communication that is
Paid
Non-personal

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33
Q

What is an advertisement about?

A

Good, service, idea in which the company is clearly identified

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34
Q

By paying for the advertising ,

A

Space is bought for advertising message

Company gets to control what is being said, to whom , and when it is sent

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35
Q

Ad space is ______ hence, they must ensure it ______

A

Expensive

Works to a certain extent

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36
Q

What are the two kinds of advertising?

A

Product

Institutional

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37
Q

What message does a product advertisement carry?

A 
Features
Functions
Design
Brand name 
Sales promotions
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38
Q

What information is in the message of an institutional advertisement?

What is not its intention?

A

About the Company or manufacturer

History 
Accolades 
Awards won
Interesting facts about resources 
Values held by company

To sell a specific product

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39
Q

What is reach?

A

The no. of different people or households exposed to an advertisement

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40
Q

What is the reach for a newspaper?

A

The total circulation

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41
Q

Media and television describe their reach using?

A

Ratings

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42
Q

What do advertisers aim for in reach?

A

To maximize reach to target market at lowest cost

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43
Q

What is frequency?

A

The average number of times a person in the target audience is exposed to message or advertisement

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44
Q

Why do advertisers need higher frequency?

A

Consumers do not pay close attention.

With repeats exposure, they respond more favorably

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45
Q

What does GRP stand for?

A

Gross rating point

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46
Q

What is GRP?

A

It is a reference number telling the effectiveness of different media

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47
Q

How is GRP calculated

A

Multiplying reach and frequency

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48
Q

In GRP, the advertiser must consider that it

A

Has a balance reach, frequency and cost

And that the number of GRP is appropriate to campaign

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49
Q

What does CPM stand for?

A

Cost per thousand

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50
Q

What is CPM about?

A

The cost of reaching 1000 individuals or households with the advertising message in a given medium

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51
Q

What are the appeals in advertising?

A

Rational
Fear
Sex
Humorous

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52
Q

In rational appeal, what do the messages suggest?

A

That they can better meet their
Functional
Utilitarian
Practical needs

53
Q

What does rational appeal highlight about the product?

A

Features

Characteristics

54
Q

When is rational appeal used?

A

When the product is complicated or technical in nature

55
Q

Fear appeal uses messages that _____

A

Suggest consumers can avoid some negative experience if they

purchase a particular product or service /change in behavior

56
Q

When does fear appeal backfire?

A

When audience attention is not caught

Leading them to tune out the message

57
Q

In sex appeal,

A

Messages are used to suggest that

Product will increase attractiveness of user

58
Q

What is the advantage of sex appeals

A

Gains attention of the audience

59
Q

What is the disadvantage of sex appeal?

A

Little impact on how consumer think feel or act

It may distract them from the ads purpose

60
Q

Humorous appeals uses messages in what manner?

A

Direct

Subtle

61
Q

The messages of humorous appeal suggest that

A

Their product is more fun and exciting than competitors offerings

62
Q

Where can humorous appeals be found?

A

In many product categories

It is widespread

63
Q

The disadvantages of humorous appeals are

A

Wear out quickly: boring to consumer after first few exposures
Effectiveness of humor: varies across cultures if used in global campaign

64
Q

How many types of media are there?

A

9

65
Q

What are the types of media?

A 
TV
Internet, online advertising
Newspaper 
Magazines 
Radio
Outdoor 
Direct mail
Directories 
SMS/MMS
66
Q

What are the common criteria to assess advantages and disadvantages of a type of media?

A 
Cost 
Lead time 
Market coverage
Visuals capability 
Perception of it 
Lifespan
67
Q

What is television?

A

A powerful and versatile medium with both audio and visual appeal

68
Q

What are the advantages of television

A

It has good market coverage

Audio+visual uses colors and creativity

69
Q

What are the disadvantages of television?

A

High production cost
High up front expenditure
Extremely short life span

70
Q

What is Internet also known as?

A

Online advertising

71
Q

What is Internet?

A

A form of digital advertising

Associated with websites, smartphones, Internet

72
Q

What are the advantages of Internet advertising?

A

Lower cost outlay
More targeted by interest
Ability to use colour, graphics and movement

It can engage audience and turn campaign viral

73
Q

What are the disadvantages of online advertising?

A

It is often perceived as junk messages

74
Q

What is lead time?

A

Preparation

76
Q

Paid directory search listings are under online advertising or directories?

A

Online advertising

77
Q

What are the advantages of using newspaper?

A

Low cost per prospect
Intensive local coverage, no limit to quantity coverage
Fast
Higher involvement, ability to cover fine details

78
Q

What are the disadvantages to newspapers?

A

High up front expenditure
No audio/video capability
Short life span

79
Q

What are magazines?

A

A high involvement medium

Due to nature of active reading

80
Q

What are the advantages of magazines?

A

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
Q

What is a newspaper?

A

A flexible medium with short lead time

82
Q

What is the disadvantage of magazines?

A

Inflexible and long lead times
Market could be cluttered and fragmented
Lacks ability for video images

83
Q

What is radio?

A

Low cost medium with good reach

84
Q

What are the advantages of using radio?

A

Repetitions are usual
Offers segmentation opportunities
Low cost

85
Q

What are the disadvantages of using radio

A

Low consumer attention
Lacks visual element
Markets may be fragmented

86
Q

What is outdoor?

A

A flexible low cost medium that carries messages in the open outdoors

87
Q

What are the advantages of outdoor?

A

Flexible geographical coverage

Excellent reminder of advertising

88
Q

What are the disadvantages of outdoor advertising

A

A lot of waste circulation

Cluttering and defacing of landscape

89
Q

What is direct mail?

A

Advertising to a highly targeted audience

90
Q

What are the advantages of direct mail?

A

Highly targeted

Low cost

91
Q

What are the disadvantages of direct mail?

A

Difficult to find good database lists

Often seen as junk mail

92
Q

What are directories?

A

Listing of industry members or occupations with advertisements embedded

93
Q

What are the advantages of directories?

A

They are highly targeted
Relevant
Low cost

94
Q

What are the disadvantages of directories?

A

Large amount of waste coverage

Low ability to use visual creativity

95
Q

What is SMS/MMS?

A

A form of advertising messages sent to a highly targeted audience on their personal digital devices

96
Q

What are the advantages of SMS?

A

Highly targeted

Low cost

97
Q

What are the disadvantages to SMS?

A

Difficult to find good database lists (costly to find)

Often seen as junk

98
Q

What is public relations?

A

Communications targeted at specific target audiences (stakeholders)

99
Q

What is publicity?

A

Form of PR communication about an organisation or its products

Presented by the media
Not paid directly by the org.

100
Q

What are examples of publicity?

A 
News story in mass media
Interview, informal speech: endorsement by individual 
Press release
Press conference 
Viral marketing
101
Q

What is a press release?

A

Distribution of a written story for publicity to the media

102
Q

What is a press conference?

A

Release of information to a selected group (usually correspondents) through a speech

103
Q

What is viral marketing?

A

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
Q

Why is it called viral marketing?

A

It spreads like a virus

105
Q

What are examples of public relation activities?

A 
Favourable news presentations of a product or organisation
Sponsorships of charity 
Sporting or cultural events
Lobbying 
Company newsletters 
Annual reports
106
Q

What are the benefits of PR and publicity?

A

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
Q

What are the drawbacks of PR and publicity?

A

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
Q

What is personal selling?

A

Presentation of a product to a prospective customer by a representative of the selling organisation

109
Q

When is personal selling effective?

A

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
Q

What are the salesperson skills required in personal selling?

A

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
Q

What are the approaches to personal selling?

A 
Traditional F2F personal selling
Telemarketing
Team selling
Systems selling
Relationship selling
Online selling
112
Q

What is traditional face to face personal selling?

A

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
Q

What is telemarketing?

A

Use of telecommunications equipment and database systems

Locate
Communicate with
Sell to customers

114
Q

What is team selling?

A

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
Q

What is systems selling?

A

Selling a total package of goods and services

Includes core product, installation, training, maintenance, spare parts, and financing

Better meet needs

116
Q

What is relationship selling?

A

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
Q

What is online selling?

A

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
Q

What is sales promotion?

A

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
Q

What does promotion affect advertising and personal selling?

A

Supplement advertising

Coordinate personal selling

120
Q

What are the common types of sales promotions?

A 
Coupons
Dead
Gifts
Premiums
Contests
Sweepstakes
Samples
Continuity/ loyalty programs
POP displays
Rebates
121
Q

What are coupons?

A

Use of a cut out (from newspaper ad, magazine ad, or flyer) entitled the user to a discount/price off a product

122
Q

What are deals?

A

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
Q

What are gifts?

A

Giving away of merchandise that is otherwise sold at particular prices by the company for free with specific purchases

124
Q

What are premiums?

A

Giving away of merchandise for free
Not marketed by the company
With specific purchases by customer

125
Q

What are contests?

A

Competition

Consumers make use of skills to win specific prizes

126
Q

What are sweepstakes?

A

Use of lucky draw

Consumer may enter to win specific prizes based on luck

127
Q

What are samples

A

The use of a limited qty

Or free trial of the product

128
Q

What are loyalty programs?

A

System of rewards based on continuous purchase

Gain loyalty points which can be accumulated and converted into something of value

129
Q

What are pop displays?

A

Use of attractive visual materials near the point where products are on display
To appeal to customers

130
Q

What are examples of POP displays?

A 
Standees
Wobblers
LCD screens: static displays, video presentation 
Banner ads
Posters
131
Q

What are rebates?

A

% return the customer would get
Based on amount purchase
Sum of money back in subsequent purchase

132
Q

What has to be kept in mind for promotional mix?

A 
Target audience
Stage of products life cycle
Characteristics of products
Decision stage of buyer
Channel of distribution

Marketing (9 decks)

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