class 12 Flashcards
what is promotion
communicating product and service information to target customers and other stakeholders of the firm
what is the promotional mix
the mix of different kinds of promotion elements (e.g., advertising, personal selling, public relations, sales promotion, direct marketing) used to meet marketing goals
what is advertising (promotional element)
One-way non-personal communication about a product or organization that is paid by the organization (e.g., TV, print, outdoor, in-store, digital)
could be an online ad, product placement
what are the pros and cons of advertising
Advantages: reaches large audience, control over messaging
Disadvantages: costs can be high, small immediate effect on sales, lack of direct feedback
what is personal selling (promotional element)
Two-way flow of communication between buyer and seller, designed to influence the buyer’s purchase intentions
what are the pros and cons of personal selling
Pros: provide detailed and customzed info, get immediate feedback and can modify the message, build relationships with customers
Cons: not effective in reaching large numbers of people, expensive on a per contact basis, potential inconsistency in messages
what is public relations (promotional element)
Creating a positive image for an organization or product/service via publicity (e.g., press releases, sponsorship, events, crisis management). Many companies used PR to communicate with the news media
pros and cons of public relations
Pros: seen as trustworthy, reach mass audience
Cons: limited control over the public messaging
sales promotion (promotional element )
A short-term inducement of value offered to arouse interest in buying a good or service (e.g., discounts, coupons, free samples)
pros and cons of sales promotion
Pros: effective in short term sales increase, boost stire or website traffic, easier to track
Cons: sales drop off when deals end, can harm brand image
direct marketing (promotional element)
Any form of direct communication with the consumer designed to drive sales or interest (e.g., catalogs, email, telephone, brand social media pages)
pros and cons of direct marketing
Pros: customization, quick modification, cheaper than personal selling and advertising, interpersonal communication, easier to track and measure
Cons: declining consumer response, data management can be expensive
setting the promotion budget
Setting the promotion budget’
Set budget as a % of sales
Set budget to match (or beat) competition
Objectives and tasks method
What end goal do you have in mind
Determine what you need to spend to reach that goal
push vs pull strategy
Push Strategy:
In a push strategy, a manufacturer focuses its promotional efforts on channel members to convince them to carry its product (pushes the product through distribution channels to end consumers)
Pull Strategy:
pull strategy: promotional efforts are directed at consumers to build demand for products that may convince retailers to carry them
Ex: consumers who see TV or print ads may approach local retailers and ask them to stock these products
push–> manufacter wants the retailer or wholesaler to promote the product
pull–> directly go to the consumer by promoting it
what is the integrated marketing communications (IMC)
designing market communications programs that integrate and coordinate promotional mix to provide a clear and constsnrt message to audience
ensuring that all aspects of the promotional mix (advertising, personal selling, direct marketing…) are all aligned and have the same image
