Lecture 8 (Promotion)

Question 1

What 5 promotional tools should be used in a companies integrated marketing communications ?

Answer 1

Advertising 
Sale promotion 
Personal selling 
Public Relations 
Direct marketing

Question 2

What is a positive and a negative of personal selling ?

Answer 2

Very expensive

Build a strong relationship with customers

Question 3

What are 2 benefits of public relations marketing tool?

Answer 3

Helps brand awareness and creditability

Inexpensive/free

Question 4

What are the 4 methods of setting the total promotion budget ?

Answer 4

Percentage of sales
Competitive parity method (match competitors)
object and task method - budget set based on specific promotion objects
Affordable method (management set price based on affordability)

Question 5

Describe the push strategy.

Answer 5

In a push strategy, the company pushes the product to a reseller who in turn push it to consumers

Question 6

Describe the pull strategy.

Answer 6

In a pull strategy, the company promotes directly to final consumers, creating a demand vacuum that pulls the product through the channel.

Question 7

What is a refutational argument with respect to message structure ?

Answer 7

The message raises a negative issue and dismiss it.

Question 8

What message structure is best used when the target audience is well educated ?

Answer 8

Two sided message

Question 9

What is the most common type of message structure ?

Answer 9

Supportive argument

Question 10

According to the Elaboration likelihood model (ELM) what route is taken under high involvement ?

Answer 10

we take a central route to persuasion – that is, we look for strong, rational arguments

Question 11

According to the Elaboration likelihood model (ELM) what route is taken under low involvement ?

Answer 11

we take a peripheral route – that is, we look for “nice” colours, “sexy” packaging, famous people’ endorsements, stimulating shopping environment