Lecture 1

Question 1

What is Marketing?

Answer 1

The process of planning & executing the conception, pricing, promotion, & distribution of ideas, goods & services to create exchanges that satisfy individual & organizational objectives.

Question 2

What is the Marketing Mix (controllable variables)?

Answer 2

The 4 P’s : Product, Price, Promotion, Place.

Question 3

What is Integrated Marketing Communications (IMC)?

Answer 3

The process of using promotional tools in a unified way so that a synergistic communications effect is created.
IMC focuses on the process of using ALL forms of promotion to achieve maximum communications impact.
The growth of the IMC approach is fuelled by changes in the marketing strategies that are slowly modifying the role of the traditional advertising agency.

IMC is a strategic business process used to plan, develop,
execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.

Question 4

The goal of IMC is to

Answer 4

generate short-term financial returns and build long-term brand value.

Question 5

The Promotional Mix (Tools for IMC)

Answer 5

• Advertising
• Sales Promotion
• Personal Selling
• Publicity/Public Relations
• Direct Marketing
• Internet/Interactive Marketing

Question 6

Advertising

Answer 6

“Any paid form of non-personal communication about an
organization, product, service or idea by an identified sponsor”.
OR
“A paid, mass mediated attempt to persuade.”
*The T.V. advertising cost/1000 households reached is $14.

Question 7

Sales Promotion

Answer 7

“Marketing activities that provide short term incentives to the sales force, middlemen or the consumer to stimulate immediate sales”. Also known as ‘forcing techniques’.

Question 8

There are 2 distinct types of Sales Promotions:

Answer 8

Consumer Sales Promotion techniques.

Trade Sales Promotion techniques.

Question 9

Sales Promotion Tools: Consumer-oriented

[For end-users]

Answer 9

Events
Loyalty Programs
Bonus Packs
Refunds/Rebates
Contests/Sweepstakes
Premiums
Samples
Coupons

Question 10

Sales Promotion Tools: Trade-oriented [For resellers]

Answer 10

Coop Advertising
Trade
Shows
Training
Programs
POP Displays
Trade Allowances

Question 11

Personal Selling

Answer 11

“Form of inter-personal communication used to assist and/or persuade prospective customers to purchase the
company’s product or service”. Some companies rely almost entirely on personal selling.
(eg: Avon & Mary Kay vs. Revlon & Max Factor).

Question 12

Publicity

Answer 12

“Non-personal communications regarding an organization, product, service or idea not directly paid for by an identified sponsor”. News releases, feature articles, photographs, films, press conferences, etc.

Question 13

Public Relations

Answer 13

“The management function which evaluates public attitudes, identifies the policies & procedures of an individual or organization with the public interest, & executes a program of action to earn public understanding & acceptance”.

Question 14

Public Relations has a broader role than publicity, as its purpose is to

Answer 14

create & maintain a positive image of the company among its publics.

Question 15

Publicity Vehicles

Answer 15

Feature Articles
Press Conferences
News Releases
Special Events
Interviews

Question 16

Direct Marketing

Answer 16

“Direct communications with target customers to generate a response &/or a transaction”.
- Traditionally Direct Marketing has not always been considered part of the promotional mix.

Some companies rely primarily on Direct Marketing.
(e.g. : Amway, Tupperware, L.L. Bean, Land’s End, J. Crew, etc.)

Question 17

Direct Marketing is mainly mail-order catalogs & direct mail ….. but also includes

Answer 17

Data Based Marketing, internet selling, shopping channels, telemarketing, direct response ads, etc.

Question 18

Direct Marketing Vehicles

Answer 18

Internet Sales
Shopping Channels
Catalogs
Telemarketing
Direct Response Advertising
Direct Mail

Question 19

Interactive/Internet Marketing

Answer 19

A “back & forth” flow of information between seller & buyer where users can participate in & modify the form & content of the information they receive in real time.
Other than the internet, these also include kiosks, CD-ROMs, interactive television, etc.

Question 20

The ___ is a rapidly growing advertising medium.

Answer 20

internet

Question 21

In fact, the ___ can be used to perform & execute all the elements of the promotional mix.

Answer 21

internet