Promotion 2

Question 1

Type of Promotional Tools

Answer 1

1. Advertising
2. Public relations
3. Sales promotions
4. Personal selling
5. Direct marketing
6. Online marketing

Question 2

Sales Promotions: Examples

Answer 2

Ex. Coupons, deals, contests/sweepstakes, rebates, loyalty programs, samples, POP displays, product placement

Question 3

Personal Selling: Examples

Answer 3

Ex. Face-to-face, telemarketing, AI

Question 4

Direct Marketing: Examples

Answer 4

Ex. Catalogs/mail, email, mobile marketing

Question 5

Online Marketing: Examples

Answer 5

Ex. Websites, blogs, social media

Question 6

Public Relations: Examples

Answer 6

Ex. Media coverage, handling unfavorable events, event sponsorship)

Question 7

Traditional advertising: Examples

Answer 7

Ex. Television, radio, magazines, newspapers, internet (ex. search engine advertising))

Question 8

Assessing Promotional Tools: Five Criteria

Answer 8

Five questions to ask when evaluating various promotional tools:

1. Customizability: Is the message customizable?
2. Payment Structure: What is the the cost of promotion (i.e. cost components)?
3. Strengths: What are the strengths?
4. Weaknesses: What are the weaknesses?
5. Response Measurability: Can the consumers’ response to promotion be easily measured?

Question 9

Assessing Advertising

Answer 9

1. Traditionally not customizable (Exceptions: Internet)
2. Fees paid to advertising media for space and time.
3. Efficient way of reaching large number of people. Message content can be uniform and easily controlled.
4. High fixed cost that increases with potential reach (Exception: internet such as click ads). Information overload. Decreasing viewership (shift to newer media format)
5. Customer feedback (sales response) is difficult to measure

Question 10

Assessing Public Relations

Answer 10

1. Not customizable
2. No direct payment (for traditional media coverage). Cost of sponsorship (for events)
3. Usually the most credible message in the minds of customers (media coverage)
4. Message sent to customers may not be targeted enough (builds only general goodwill). Difficult to get media cooperation.
5. Customer response is very difficult to measure.

Question 11

Assessing Sales Promotions

Answer 11

1. Mostly not easily customizable (some customizable, e.g. loyalty program)
2. Cost of advertising sales promotion (could be very low to high depending on intended reach and type of sales promotion). Cost of discount/price deals/awards.
3. Effective at stimulating purchase. Can be implemented quickly.
4. Easily copied. Risk of starting price war. If used too much, customers may buy only on “sale” (strategic buyers wait; especially for products they can stock up on)
5. Feedback (sales response) easily measured

Question 12

Assessing Personal Selling

Answer 12

1. Customizable
2. Commissions/Salary + Incentive Pay for employees (ex. sales bonus, sales contests). Cost of training.
3. Can be very persuasive. Ability to present complex information
4. Cost per customer exposure is very high. Need to invest in training as messages can differ across salespeople. Limited reach.
5. Customer response can be easily measured

Question 13

Assessing Direct Marketing (Mail, Email, Mobile)

Answer 13

1. Fairly customizable
2. Cost of buying and managing customer list and contact information. Catalog + postage (mail)
3. Messages can be prepared quickly. Messages & products can be easily targeted based on demographics.
4. Declining customer response: Junk mail.
5. Customer response (purchase) can be easily measured