Promotion 1 (Lecture #19) Flashcards
def. promotion
communicating product and service information to
target customers and other stakeholders of the firm
def. promotional mix
the mix of different kinds of promotion elements (e.g., advertising, personal selling, public relations, sales promotion, direct marketing) used to meet marketing goals
def. advertising
One-way non-personal communication about a product or organization
that is paid by the organization (e.g., TV, print, outdoor, digital, in-store)
advantages of advertising
- reaches large audience
* control over messaging
disadvantages of advertising
- costs can be high
- small immediate effect on sales
- lack of direct feedback
def. personal selling
Two-way flow of communication between buyer and seller, designed to influence the buyer’s purchase intentions
advantages of personal selling
- provide detailed and customized information
- get immediate feedback and can modify the message
- build relationships with customers
disadvantages of personal selling
- not effective in reaching large numbers of people
- expensive on per contact basis
- potential inconsistency in message
def. public relations
Creating a positive image for an organization or product/service via
publicity (e.g., press releases, sponsorship, events, crisis management)
advantages of public relations
- seen as trustworthy (not directly from customer)
* reach mass audience
disadvantages of public relations
- limited control over the public messaging
* can be expensive to create something worth covering
def. sales promotion
A short-term inducement of value offered to arouse interest in buying a
good or service (e.g., discounts, coupons, free samples)
advantages of sales promotions
- effective in short-term sales increase
- boost store or website traffic
- easier to track
disadvantages of sales promotions
- sales drop off when deals end
* can harm brand image
what are some sales promotions
- sample
- coupons
- point-of-purchase displays
- premiums
- contests
- loyalty programs
- rebates
def. sample
small amount of a product given to consumers to try for free
def. coupons
provide an immediate price reduction off an item and the amount of the coupon is reimbursed to the retailer by the manufacturer
def. point-of-purchase displays
in-store displays designed to encourage consumers to buy products immediately
def. premiums
something consumers get for free or a small handling charge with proof of purchase
def. contests
sales promotions that people enter or participate in order to win a prize
def. loyalty programs
marketing efforts that reward the frequent purchase and consumption of an offering
def. rebates
a promotion whereby part of the purchase price of an offering is refunded to a customer after the customer completes a form and sends in the proof of purchase (sales receipt)
def. direct marketing
Any form of direct communication with the consumer designed to drive sales or interest (e.g., catalogs, email, telephone, brand social media pages
advantages of direct marketing
•Customization, quick modification (e.g., online, social media) •Cheaper than personal selling and advertising •Interpersonal communication •Easier to track and measure
disadvantages of direct marketing
- Declining consumer response
* Data management can be expensive
Campaign: What do we want to achieve?
objective
campaign: who should we talk to?
target
campaign: what should we say?
message
campaign: what channels do we use?
media
campaign: how much should we spend?
budget
campaign: did our campaign work?
evaluation
what is the promotional objective related to the introduction stage of the product life cycle?
to inform
what is the promotional objective related to the growth stage of the product life cycle?
to persuade
what is the promotional objective related to the maturity stage of the product life cycle?
to remind
what is the promotional objective related to the decline stage of the product life cycle?
to phase out
What promotional tools can help inform consumers?
-PR, ads, free samples
what promotional tools can help persuade consumers?
ads, personal selling
what promotional tools can help remind consumers?
discounts, coupons, direct marketing
what promotional tactics are useful during awareness and interest stages?
mass media (ads, PR)
what promotional tactics are useful during desire and action stages?
-personal selling, sales promotions
What are the three strategies to set the promotion budget?
- set budget as a % of sales
- set budget to match (or beat) competition
- “objectives and tasks” method
- what end goal do you have in mind? (e.g., +50% in awareness)
- determine what you need to spend to reach that
goal
what are some different ways to evaluate your campaign?
- day-after recall (for TV ads)
- sales changes
- A/B testing
- physiological testing
what do you have to remember with regards to evaluating a marketing campaign?
-have to plan for this before you start the campaign
describe integrated marketing communications (IMC)
-designing market communications programs that integrate and coordinate promotional mix to provide a clear and consistent message to audience
what are key things to remember when designing a promotional mix?
- Align your promotions with your positioning (STP) and with the rest of the marketing mix
- A great promotions campaign is a key element of a marketing plan (but not all of it)
- Define mission and metrics before spending any $$$ on advertising/promotions
