marketing lecture 9 (promotion 1)

Question 1

promotion

Answer 1

the communication by marketers that informs, persuades, and reminds potential buyers of a product to influence their opinion or elicit a response

Question 2

promotional strategy

Answer 2

marketers –> promotional mix (advertising, public relations, sales promotion, personal selling, direct marketing) –> competitive advantage –> customers

Question 3

integrated marketing communications (IMC)

Answer 3

the concept of desigining marketing communications programs that coordinate all promotional activities to provides a consistent message across all audiences

Question 4

steps in developing effective communication

Answer 4

channel of communication (message, noice) –> decode (field of experience) –> receiver –> response –> feedback –> source –> encode (field of experience) –> channel of communication

Question 5

promotional elements that has to be balanced

Answer 5

1. target audience characteristics
2. PLC
3. product characteristics
4. stages of buying decision
5. channel strategies

Question 6

target audience characteristics

Answer 6

• promotional strategies can be directed to ultimate consumers, an intermediary, or both
• promotional strategies to reach ultimate consumers :
  1. mass media to reach large numbers of potential buyers
  2. personal selling at place of purchase (retail stores)
  3. direct marketing to encourage first-time or repeat purchases
  4. combination to reach some target market (omnichannel marketing)

Question 7

PLC

Answer 7

product life stage : promotional objectives : promotional activities
1. introduction : to inform : publicity on magazine, advertising, salesforce calling on intermediaries, sales promotion using free samples
2. growth : to persuade : personal selling on intermediaries, advertising to differentiate products from competing brands
3. maturity : to remind : reminder advertising, limited personal selling, sales promotion using coupons, discounts, and events, direct mail reminder
4. decline : to phase out : little money on promotion

Question 8

product characteristics (promotional element)

Answer 8

1. complexity : refers to the technical sophistication of a product and hence the level of understanding needed to use it –> more complicated requires more personal seling and less advertising
2. purchase risk to buyers : refers to financial, social, and pyshical risk –> advertising can help, but the bigger the risk, more personal selling is needed
3. ancillary services : the services provided after the purchase –> advertising is to establish the seller’s reputation, direct marketing shows that products can be customized towards needs, personal selling build buyer’s confidence and shows evidence of customer service

Question 9

stages of the buying decision

Answer 9

prepurchase : purchase : postpurchase
1. personal selling –> high, higher, high
2. sales promotion/direct marketing –> medium, higher, medium
3. advertising –> very high, very low, very high
4. public relations –> high, lower, lowerr

Question 10

channel strategies

Answer 10

1. push strategy –> manufacturer (flow of demand stimulation & flow of promotion, personal selling directed to intermediaries) –> wholesaler –> retailer –> customers
2. pull strategy –> manufacturer (flow of promotion, advertising directly to customers) –> customers –> retailers –> wholesaler –> manufacturer

Question 11

steps in developing an IMC program

Answer 11

1. identify the target audiences
2. specifying the promotion objectives
3. set a promotion budget
4. selecting the right promotional tools
5. designing the promotion
6. scheduling the promotion

Question 12

identifying the target audience (IMC)

Answer 12

• the senders need to understand the target audience to be able to formulate the message
• the receivers will have to transform the message back into thought
• the sender have to understand how the receivers transform the meaning and even uses receiver’s language to present the message
• determines :
  1) what will be said
  2) how it will be said
  3) when it will be said
  4) where it will be said
  5) who will say it

Question 13

specifying promotion objectives (IMC)

Answer 13

• marketers seek purchase response that is a result of the customer decision making process
  –> awareness –> interest –> evaluation –> trial –> adoption

Question 14

setting the promotion budget (IMC)

Answer 14

based on :
- percentage of sales : allocate promotion budget based on percentage of past sales or anticipated sales, either on dollar or unit sold
- competitive party : allocate promotion budget by matching with competitor’s promotion budget and proportion on point of market share
- all you can afford : allocate promotion bduget after all other budget item are covered
- objectives and tasks : allocate promotion budget by determining promotion objectives. create a task outline to accomplish these objectives. then determine the budget to accomplish these tasks

Question 15

selecting the right promotional tools

Answer 15

• direct marketing : payment for the medium of conversation
• advertising : for time and space
• personal selling : payment to the sales people
• public relations : no direct payment to media
• sales promotion : based on how big the promotion is

Question 16

designing the promotion

Answer 16

• advertising : consists of the copy and artwork for the target audience
• personal selling : depends on the characteristics and skills of the salesperson
• direct marketing : depends on the verbal, written, or electronical form of the delivery
• sales promotion : activities that are involved in the inducement
• public relations : based on the tangibles such as news releases

Question 17

scheduling the promotion

Answer 17

after the design of the promotional elements are done, it is important to determine the right time to use it effectively
- the promotion schedule describes :
1) in what order each of the promotional tool is introduced
2) the frequency of usage of each tool in the campaign

Question 18

direct marketing

Answer 18

• consists of direct connections with carefully targeted individual customers
• tailor marketing communications and offers based on narrowly defined segments or even individual customers
• fastest growing form of marketing is the digital direct marketing

Question 19

forms of direct marketing

Answer 19

• mobile phone marketing
• telephone marketing
• catalog
• direct mails
• direct-response television marketing

Question 20

database for direct marketing

Answer 20

the success for direct marketing is on a large part tied with the ability of doing one-to-one marketing

database is key
- make a list of all customers and or potential customers
- spesific information about customers and or prospects to implement more effective and efficient marketing communication

Question 21

value of direct marketing

Answer 21

• direct orders : are the result of a direct marketing offer that includes all the necessary information needed by prospective buyers to make the decision to purchase and complete the transaction
• lead generation : is the result of a direct marketing offer that generates interest in the product/service and elicits a request for additional information
• traffic generation : is a result of a direct marketing offer that pushes prospective buyers to visit the business