Exam 4 Flashcards
Promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
Promotional Strategy
A plan for the optimal use of the elements of promotion (promotional mix)
Competitive Advantage
The set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
Communication
The process by which meanings are exchanged or shared through a common set of symbols
Interpersonal communication
Direct, face-to-face communication between 2 or more people
Mass communication
Communicating a concept or message to large audiences
Main goals of promotion
Informing
Persuading
Reminding
Connecting
Informing and its PLC stage
Seeks to convert an existing need into a want OR to stimulate interest in a new product
Introduction
Persuading and its PLC stage
Designed to stimulate a purchase or action
Growth
Reminding and its PLC stage
Used to keep the product and brand name in the public’s mind
Maturity
Connecting
Form relationships with customers and potential customers
Goal – lead customer engagement with products, and ultimately lead to purchases
The Promotional Mix and its 5 elements
The combination of promotional tools used to reach the target market and fulfill the organization’s overall goals
Advertising
Public relations
Personal selling
Sales promotion
Digital & social media
Advertising and its advantages
Any form of impersonal paid communication in which the sponsor or company is identified
Advantages:
- Ability to communicate to a large number of people at one time
- Cost/contact low, total cost normally high
- Can be microtargeted to small groups of potential customers
Public relations and its advantages
Marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
Advantages:
- Maintain positive image
- Educate public about company’s goals/objectives
- Introduce new products
- Support sales effort
- Increasingly respond to customer-generated communications
Publicity
Public information about a company, product, service, or issue appearing in the mass media as a news item
Sales Promotion and its advantages
Consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness (other than personal selling, advertising, and PR)
Short-run tool used to stimulate immediate increases in demand
- Improve effectiveness of other promo mix elements, especially advertising and personal selling
Personal selling
A purchase situation involving a personal, paid-for communication between 2 people in an attempt to influence each other
Content Marketing
Developing valuable content for interested audience members, then using digital marketing, search engine optimization, paid search, and display advertising to pull customers to the company’s website or social media channel so that audiences can learn about the brand or make a purchase
Social Media
Promotion tools used to facilitate conversations and create engagement and other interactions among people online
AIDA Concept
Attention (Gaining attention of customers by using a friendly greeting, loud volume, bold headlines, movement, bright colors, etc.)
Interest (Illustrated how the product’s features will satisfy the consumer’s needs)
Desire (Convince customers that their company is the best solution to the customer’s problem)
Action (Used after desire to motivate purchase)
Integrated Marketing Communication
The careful coordination of all promotional messages for a product or service to ensure the consistency of messages at every point at which a company has contact with the consumer
Factors affecting the promotional mix:
Nature of the product
Stage in PLC
Target market characteristics
Type of buying decision
Available funds
Push/Pull strategy
Push strategy
Marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell particular merchandise
Producer –> Retailer
Pull strategy
A marketing strategy that stimulates consumer demand to obtain product distribution
Producer –> Consumer
Advertising
An impersonal, mass communication about a product or organization that is paid for by a marketer
Institutional advertising
A form of advertising designed to enhance a company’s image rather than promote a particular product
Designed to establish, change, or promote the corporation’s identity as a whole
Advocacy advertising
A form of institutional advertising in which an organization expresses its views on controversial issues or responds to media attacks
Product advertising
A form of advertising that touts the benefits of a specific good or service
Pioneering advertising and its stage of PLC
A form of product advertising designed to stimulate primary demand for a new product or product category
Introductory stage
Competitive advertising and its stage of PLC
A form of product advertising designed to influence demand for a specific brand
Growth stage of PLC
Comparative advertising and its PLC stage
A form of product advertising that compares 2 or more specifically named or shown competing brands on one or more specific attributes
Products with slow growth or strong competition
Advertising objective
A specific communication task that a campaign should accomplish for a specified target audience during a specific period
Advertising appeal
a reason for a person to buy a product
Unique Selling Proposition
A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
Major types of media and their relative advantages & disadvantages
Newspaper
Advantages:
- Geographic flexibility
- Timeliness
Disadvantages:
- Distractions from competing ads and news stories
Magazine
Advantages:
- Traditional medium that continues to be successful
Disadvantages:
- Cost/contact high relative to other media
Radio
Advantages:
- Selectivity & audience segmentation
- Large out-of-home audience
- Low unit & production costs
- Timeliness
- Geographic flexibility
TV
Advantages:
- Wide/diverse market reach
- Can narrowcast to target markets
Disadvantages
- Can be very expensive, especially for network & popular cable channels
Internet
Advantages:
- All kinds of different advertisements
- Programming advertising
- Using technology to match audiences and websites with marketers seeking to purchase advertising
Advergaming
Placing advertising messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue
Outdoor
- Flexible and low-cost
Main media considerations
Cost/contact
Cost/click
Reach
Gross Ratings Points (GRP)
Frequency
Audience selectivity
Flexibility
Noise level
Life span
Media fragmentation
Public relations
The element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
Public relations tools
New product publicity
Product placement
Consumer education
Sponsorship
Experiential marketing
Company websites
Crisis management
The coordinated effort to handle the effects of unfavorable publicity, ensuring fast and accurate communication in times of emergency
Sales Promotion
Marketing communication activities in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value
Trade sales promotion
Promotion activities directed to members of the marketing channel, such as wholesalers/retailers
Consumer sales promotion
Promotion activities targeted to the ultimate consumer market
Trade sales promotion tools
Trade allowance
Push money
Consumer sales promotion tools
Coupons
Rebates
Premiums
Loyalty marketing programs
Contests & sweepstakes
Sampling
Point of Purchase Promotion
Personal selling
A purchase situation involving a personal, paid-for communication between 2 people in an attempt to influence each other
Relationship/consultative selling
A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
Steps in the sales process
- Generating leads
- Qualifying leads
- Approaching the customer and probing needs
- Developing and proposing solutions
- Handling objections
- Closing the sale
- Following up
Lead generation
Identification of the firms and people most likely to buy the seller’s offerings
Price
That which is given up in an exchange to acquire a good or service
3 main price objectives:
Profit-oriented
Sales-oriented
Status Quo
Profit maximization
Setting prices so that total revenue is as large as possible relative to total costs
Satisfactory profits
A reasonable level of profits, consistent with the level of risk an organization faces
Target Return on Investment (ROI)
Measures management’s overall effectiveness in generating profits with available assets
Market share
A company’s product sales as a percentage of total sales for that industry
Volume/Sales Maximization
Rather than strive for market share, companies try to maximize sales and ignores profits, competition, and marketing environment as long as sales are rising
Status Quo
Seeks to maintain existing prices or to meet the competition’s prices
Elasticity of demand
Consumer’s responsiveness or sensitivity to changes in price
