Chapter 8: Promotional Strategies Flashcards
What is promotion?
all activities that communicate a product’s value and persuade customers to choose it over other options.
What is integrated marketing communications?
a promotional strategy that coordinates promotion-mix elements to provide clear, consistent messages.
Ex: A company uses similar themes in TV ads, social media, and emails to maintain brand consistency
What are the four elements of the promotion mix?
1) Advertising (paid, nonpersonal communication)
2) Sales Promotion (short-term incentives)
3) Personal Selling (direct interaction with a salesperson)
4) Public Relations (building positive relationships with stakeholders)
What is advertising?
Advertising is nonpersonal communication about goods, services, or ideas, paid for by an identified sponsor
What are the three main categories of advertising?
1) Informative: Builds initial demand; used in the introduction stage.
Ex: Ads for new technology products explaining features
2) Persuasive Advertising: Increases demand; used in the growth stage.
Ex: Comparative ads for smartphones
3) Reminder Advertising: Reinforces previous messages; used in the maturity stage.
Ex: Ads for established brands like Coca-Cola
What are all the types of advertising tools/media? And what are each of their advantages/disadvantages?
1) Television Advertising
• Advantages:
- Sight, sound, & motion, appeals to senses
- Shows products in use
• Disadvantages:
- Cost to create & buy time
- DVRs
- Customers leaving traditional TV
2) Internet Advertising
• Advantages: growing, with more options for advertisers
• Disadvantages: ignore banner ads or have negative associations, can be intrusive and delay content loading
3) Print Advertising
• Advantages:
- Newspapers: Small businesses advertise locally, run ads in specific section
- Magazines: Target specific audiences with particular magazines, have long shelf life
• Disadvantages:
- Newspapers: Shrinking audience and competition for attention within newspaper
- Magazines: Long lead time to place ad, hard to control placement
4) Radio & Podcast Advertising
• Advantages:
- Cost-effective
- Segmentation based on geography and format/program/subject
• Disadvantages:
- Audio only
- Easy to change channels and skip ads
- Satellite radio
- Other listening options like MP3
5) Outdoor Advertising: Billboards, arena signs, skywriting, ads on buildings, buses and cars
• Advantages:
- Flexibility in location
- Cost-effective
- Technology improving
• Disadvantages:
- Short exposure time
- Wasted coverage on non-target market members
6) Nontraditional Advertising: such as Video games, ticket stubs, mobile advertising, podcasts
• Advantages:
- Growing opportunities, new vehicles
- Can be very targeted
• Disadvantages:
- Can be very un-targeted
What is narrowcasting?
Narrowcasting targets a small, specific audience based on demographics or interests
- Ex: Ads for golf equipment shown on golf channels.
What is product placement?
Product placement promotes products through appearances in TV shows or movies. Ex: Ross drinking Coca-Cola in a Friends episode
What is sales promotion?
Sales promotion includes tools to encourage quick, frequent purchases.
What are all the types of Sales Promotions? Give an example for each.
1) Coupons: discount on product
Ex: $20 off next Home Depot purchase of $200 or more
2) Rebates: Consumers get money back after purchase (mail in receipt); Marketers like them because they are often not redeemed
Ex: Menards
3) Samples: “Try before you buy”; expensive, but powerful
Ex: Costco
4) Contests: consumers compete & demonstrate skill to win
Ex: Doritos Super Bowl Ad
5) Sweepstakes: entry is only requirement
Ex: Danimals
Important Note: Both (Contests & Sweepstakes) can be expensive, legal, & regulatory issues
6) Premiums: promotional item given as incentive
Ex: McDonald’s Happy Meal toy
7) Loyalty Programs: earn points & benefits for doing business with same company
Ex: Starbuck Points
What is personal selling?
a two-way communication between a buyer and a seller, paid for by the seller, to influence a purchase decision
Ex: Car dealership interactions with customers
What is public relations (PR)?
promoting positive relationships between a company and its stakeholders, often through publicity and crisis management
What is publicity?
gaining unpaid media attention to promote a product or company
What is crisis management in PR?
involves addressing negative events with honesty, openness, and direct communication to maintain trust.
What are promotional metrics?
measure the effectiveness of a strategy, including tests pre- and post-launch, recognition tests, unaided/aided recall, and revenue per ad dollar.
