Marketing Mix II - Promotion and Place Flashcards
What are the different marketing communication channels?
- Advertising
- Sales promotion
- Personal selling
- Direct database and marketing
- Public relations & publicity
- Events and experiences
- Online and social media
- Worth of mouth marketing
What is included in advertising and what are the attributes?
- Non-personal presentation of ideas, goods, or services by an identified sponsor e.g. print and broadcast advertisements, posters, packaging, symbols, brochures
Attributes include:
- Persvasiveness: repeating the message
- Expressiveness: dramatizing the content
- Impersonality: audience does not feel obliged to respond
- Geographically dispersed consumers
What is included in sales promotion and what are the attributes?
- Sort term incentives to encourage trial or purchase e.g. fairs and trade-shows, gifts and samples, coupons, low interest financing
Attributes include:
- Communication: gain attention and may lead the consumer to the product
- Incentive: they incorate something that brings value to the customer
- invitation: distinct invitations to engage in the transacion now (e.g. online promotions)
What is included in personal selling and what are the attributes?
- Face-to-face interaction with one of more pontential purchasers e.g. sales meetings, fairs and tradeshows, presentations
Attributes include:
- interaction - two way communication
- cultivation: personal selling permits various relationships e.g. personal friendship
- response: buyer feels some obligation following the sales talk
What is included in direct and database marketing and what are the attributes?
- Use of mail, phone, email, to communicate directly with or solicit response or dialogue from specific customers e.g. email, voicemail, blogs, catalogues, websites, electronic shopping
Attributes include:
- customized messages
- Up-to-date (quick message delivery)
- Interactive (message can be changed depending on the person’s response)
What is included in public relations and publicity and what are the attributes?
- Variety of programs designed to present or protect a company’s image or its individual market offerings (e.g. seminars, annual reports, donations, lobbying, company magazine)
Attributes include:
- High credibility (news and features more authentic and credible to readers than ads)
- Ability to catch buyers off guard (reaching ppl who avoid sales ppl)
- Multiplier effects: other media reporting
What is included in events and experiences and what are the attributes?
- Company-sponsored activities and programs designed to create daily or special brand-related interactions e.g. sport events, festivals, factory tours, company museum
Attributes include:
- Relevance: a well-chosen event can be seens as highly relevant as cosnumers get personally involved.
- Implicitness: Events are an indirect “soft” sell.
What is included in online and social media and what are the attributes?
- Engages customers and raise awareness e.g. websites, emails, search ads
Attributes include:
- Customizations and speed: follows user’s interest.
- Persvasiveness: multiple exposures of potential adopters to ad
- Information richness
What is included in worth of mouth (WOM and what are the attributes?
- People-to-people communications that related to experiences of consuming market offerings e.g. blogs, instagram, person-to-person
Attributes include:
- Credible - people trust others
- Personal - can be an intimate dialoque
- Timely - in the way that if often follows events or experiences
What are the 4 communication objectives?
1st order: Category needs - establishing a need for x product in the market. Make it clear that the consumer needs this product - crucial if a particular product is new to the world.
2nd order: Brand awareness - create the ability of brand recognitions (within a given cateory). Recognition is easier than recalling –> important inside the store and provides foundation for brand equity.
3rd order: Brand attitude: Evaluating the brand with respect to its ability to meet a current relevant need.
4rd order: Brand purchase intention: Instructions to purchase the brand or to take purchase-related actions.
What does detailing refer to?
Sales visits
Which marketing communication channel ranks highest in cost effectiveness when it comes to conviction, order or reorder?
- Advertising and publicity
- Sales promotion
- Personal selling
Personal selling
What are the indirect channels in pharma and biotech?
- Academic conferences?
- Peer-reviewed scientific publications?
- Key-opinion-leaders?
- Reimbursements dossier (WTF is this)
What are the direct channels in pharma and biotech?
- Advertisements in newspapers and magazines
- Direct to concumer advertising
- Websites
- Sales visits (detailing)
Describe the “historic” relevance of detailing and current situation is?
- Detailing (salesforce) have been crucial previously in the promotion for pharma
- During the visit the salesforce could “detail” the properties of the drug and leave samples.
- The relative importance has been declining due to emerging technologies, new channels, decreased access to physicians, increasing important of payers in the decision-making process (de-centralized vs decentralized pay systems)
What are the principles of direct to consumer advertising of drugs?
- Creating pull-effect for prescription-based medical drugs
- Advertising in printed media and broadcast media such as tv
- a dollar spent on DTC leads to additional sales of up to 6 dollars (DeFrank et al. 2020)
- Permitted in the US and NZ
Drop some arguments for having DTC!
- Earlier symptom recognition, improving treatment outcomes
- improving compliance with drugs
- Risk information may lead to better recognition of adverse effects
- empowers patient to take care of their own health, encouraging active partnership
Drop some arguments against DTC
- It’s insane..
Nah for real. according to the slides: - Creating inappropriate demand for medicines
- Exaggerates disease risks and promote anxiety
- May disrupt therapeutic alliance between doctors and patients
- Wasting doctors time to clarify misperceptions from ad(s)
What are the nature and benefits of public relations?
- Indirect pull-marketing: Creating and maintaining a positive image of the company and its offerings
- Targets a broader range of stakeholders
- Can enhance scientific and business credibility e.g. by leveraging scientific peer-reviews findings
- Specific tools such as press releases, diseases awareness campaigns etc
- Multiplication effects: External media may pick up news and further distribute it
What is the definition of a brand?
A brand is a name, term, sign, symbol or design with the intention of identifying goods and services of one seller or group and to differentiate them from those of competition.
- Brands are about perception.
- They constitute a quality signal to consumers
- Are protected through trademarks
- exist in both corporate and product-level brands
What are the sources of brand equity?
- Brand awareness: Brand recognition and brand rec-all. Benefits
- Brand image: Brand attributes: descriptive features,
What are the criteria for choosing brand elements?
- Brand building: memorable, meaningful(credible/positive association) and likeable
- Brand defending: transferable (can element introduce new products in the same or different categories), adaptable (can element be adapted and updated), protectable (can it be trademarked)
What are the main characteristics of trademarks?
- Prevents use by others similar or identical to the protectec sign
- initially 7 years, can be infinite
- use obligation
- Words, logos, personal names, sound marks, colors, 3-D config
What does the Place of the 4 Ps refer to?
- Bringing the product to the customer
- Location where product/service is offered
- Indirect sales / distribution channels: intermediaties as primary contact with end user or bundling
- Considerations: sales cycle, nr of potential custoemrs, unit price, complexity of procurement decision
What are the channels of product-delivery?
Going from high value-add of sale to low:
Direct sales:
- Sales force
- Value-added partners
Indirect sales
- Value-added partners
- Distributors
- Retail stores
Direct marketing channels:
- Retail stores
- Telemarketing
- Internet
What are the different roles of intermediaries?
- Selling and promoting
- Bulk breaking: achievig nsavings by customers by buying large qunatities and breaking bulk into smaller units
- Assortment building: intermediaries select items and build assortments that customers needs
- Warehousing: WS hold inventories, thereby reducing invetory costs and risks to suppliers and customers
- Organize financial flows associated with product purchases
- Collect market informtion
What are the 4 micro models of consumer responses to marketing communication?
- AIDA model: Attention –> interest –> desire –> action
- Hierarchy-of-effects model: Awareness – > knowledge –> liking –> preference –> convictions –> purchase
3.Innovation-adoption model: Attention –> interest –> evaluation –> trial –> adoption - Communications model: Exposure –> reception –> cognitive response –> attitude –> intention –> behavior
What is brand equity?
A marketing term that desribed the brand value
