Lecture 9: Promotions: Engaging and Capturing Customer Value using Traditional & Digital Marketing

Question 1

Definitions

Answer 1

Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Public relations Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Personal selling Personal presentations by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships

Sales promotion Short-term incentives to encourage the purchase or sale of a product or service

**Direct marketing ** Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

Question 2

Advertising

Answer 2

Advertising Objectives & Evaluation
1) Informing – Introduce new products (McDonald’s ad for new chicken sandwich, increase in awareness?)

2) Persuading – Convince customers to choose your brand (McDonald’s ads for delivery services, sales increase?)

3) Reminder – Keep the brand top of mind (McDonald’s nostalgic ads, increase in recall rate?)

Major Advertising Decisions
1) Objective Setting – Decide if the goal is to inform, persuade, or remind

2) Budget Decisions – Allocate resources based on available funds

3) Message & Media Decisions – Tailor content for platforms and decide on the delivery method

4) Evaluation – Measure advertising effectiveness

Budget, Message, and Media Decisions
Advertising Platforms: Digital, TV, radio, newspaper, or out-of-home depending on budget and message goals.

Question 3

Public relations

Answer 3

Examples of Public Relations Activities

1) Development – Building support from donors and volunteers (e.g., Red Cross raising resources for social causes)

2) Investor Relations – Maintaining relationships with shareholders and the financial community (e.g., Singapore Airlines showcasing performance and stability)

3) Press Relations – Creating and sharing newsworthy content to attract attention or address public concerns (e.g., government addressing societal issues)

4) Product and Brand Publicity – Promoting specific products or brands using special events, media materials, or press kits

Question 4

Personal Selling

Answer 4

Salespeople Responsibilities
Recruit – Hire people who understand and can reach target customers

Train – Equip salespeople with relevant knowledge and skills

Compensate – Offer fair compensation to motivate achievement of sales goals

Prepare Sales Materials – Ensure materials accurately present products/services

CRM System – Use Customer Relationship Management to track interactions and feedback

Chatbots in Selling
Prospecting and Qualifying, Pre-Approach, Approach

Selling Process
1) Prospecting and Qualifying (Chatbots can identify leads)

2) Pre-Approach (Researching customer preferences)

3) Approach (Salesperson meets the customer)

4) Presentation and Demonstration (Highlighting features)

5) Handling Objections (Addressing concerns)

6) Closing (Guiding the purchase)

7) Follow-Up (Ensuring post-purchase satisfaction)

Question 5

Direct Marketing

Answer 5

Examples of Direct Marketing
Flyers, catalogues, digital catalogues, digital marketing, email promotions, websites, apps, and telemarketing

Targeting Methods
Cookies: Content tailored based on previous search terms.
Opt-in: Marketing efforts through sign-ups or app downloads.
Platform Targeting: Ads are personalized based on individual data.

Question 6

Sales promotion

Answer 6

Examples of Sales Promotion
Coupons
Samples (given with a purchase)
Price Packs (additional products in the pack)
Premiums (free items after purchase)
Point-of-Purchase Items (near checkout)
Refunds or Cashbacks
Lucky Draws and Online Event Promotions

Usage with Other Promotion Tools
Sales promotions are often combined with other marketing tools (e.g., advertising, direct marketing) to drive sales within a limited period

Types for Consumers
Event Marketing: Promoting brands by conducting or sponsoring events aligned with the brand’s values

Developing a Sales Promotion Program
1) Set objectives for the promotion
2) Determine incentive size and promotion tools
3) Set participation conditions
4) Promote the program
5) Define promotion length
6) Evaluate the promotion based on sales increase and brand image impact

Question 7

Public Policy Issues in Marketing

Answer 7

Spam control act
- Regulates frequency and content of marketing messages
- Irritation from receiving excessive marketing messages

Personal Data Protection Act (PDPA)
- Governs the privacy of consumer data\

Consumer Protection (Fair Trading) Act (CPFTA)
- Prevents deceptive advertising and ensures truthful communication