MK Chapter 16

Question 1

Information Flows are important in Integrated Marketing Communications (IMC)

Answer 1

Information about customers and marketing environment forces —–> IMC Plan —-> Customers —–> Feedback

Question 2

The communication Process

Answer 2

Source –> coded message –> medium of transmission –> decoded message –> receiver or audience –> feedback –> source

Question 3

The role of promotion

Answer 3

• Communication to build and maintain relationships by informing and persuading one or more audiences
• Overall role of promotion is to stimulate demand by
• building and enhancing customer relationships.
• focusing customers on information about company activities and products.
• promoting programs that help selected groups to build goodwill.
• sponsoring special events that generate positive promotion of an organization and its brands.

Question 4

Possible objectives of Promotion

Answer 4

• create awareness
• stimulate demand
• encourage product trial
• identify prospects
• retain loyal customers
• facilitate reseller support
• combat competitive promotional efforts
• reduce sales fluctuations

Question 5

The four possible elements of a promotion mix

Answer 5

A combination of promotional methods used to promote a specific product

- Advertising
- Personal selling    
- Public relations
- Sales promotion

Question 6

Advertising

Answer 6

• A paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

Question 7

Personal Selling

Answer 7

A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation

Question 8

Public Relations

Answer 8

A broad set of communication efforts used to create and maintain favorable relationships between the organization and its stakeholders

Question 9

Sales Promotion

Answer 9

An activity or material that acts as a direct inducement, offering added value or incentive for the product, to resellers, salespeople, or consumers

Question 10

Selecting Promotion Mix Elements

Answer 10

• Promotion Resources, Objectives, and Policies
• Characteristics of the Target Market
• Costs and Availability of Promotional Methods
  
  • seem large, but cost per individual may be small
• Push and Pull Channel Policies
• Characteristics of the Product
• Word-of-mouth communication has a strong impact on consumers’ buying proclivities.

Question 11

Promotion Resources, Objectives, and Policies

Answer 11

• A limited promotional budget affects the number and types of promotion mix components affordable to a firm.
• Objectives and policies influence the types of promotion selected.

Question 12

Characteristics of the Target Market

Answer 12

Market size, geographic distribution, and demographics help dictate the choice of promotion mix elements.

Question 13

Criticisms and Defense of Promotion

Answer 13

Is Promotion Deceptive?
Does Promotion Increase Prices?
Does Promotion Create Needs?
Does Promotion Help Customers Without Costing Too Much?
Should Potentially Harmful Products Be Promoted?
Do promotions encourage materialism?

Question 14

Product Placement

Answer 14

Strategic location of products or product promotions within tv programs or movies to reach the product’s target market.
-Examples: Oprah’s favorite things

Question 15

Word-of-mouth communication has a strong impact on consumers’ buying proclivities.

Answer 15

• Buzz marketing and viral advertising are marketers’ attempts to take advantage of word-of-mouth communications

Question 16

Push Policy

Answer 16

promoting a product only to the next institution down the marketing channel

Question 17

Pull Policy

Answer 17

promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel

Question 18

Benefits of Advertising

Answer 18

• Extremely cost efficient (cost per person) in reaching a large audience
• Repeatable several times and in several media markets
• Adds value to a product and enhances a firm’s image

Question 19

Limitations of Personal Selling

Answer 19

• Is an expensive form of advertising

- Is labor intensive and time consuming

Question 20

Advantages of Personal Selling

Answer 20

• Is a more specific form of advertising
• Has greater impact on consumers
• Provides immediate feedback (kinesic, proxemic, and tactile communications)

Question 21

Publicity

Answer 21

is a nonpersonal communication in a news story form about an organization or its products, or both, transmitted through a mass medium for free

Question 22

Buzz marketing

Answer 22

is an attempt to create a trend or acceptance of a product through word-of-mouth

Question 23

Viral advertising

Answer 23

is a strategy to get users of the Internet to pass on ads and promotions to others