Promotion Flashcards
What is the shift from seller to buyer initiative?
- At the beginning of the buyer/seller relationship it is often the “traditional” seller initiative that causes them to purchase the products
- After the development of the relationship and after the post-purchase experience, the purchases are mostly buyer initiative (reverse marketing)
What is the international communication process?
(Sender > Message) > (Channel Medium > Receiver) > Feedback [looped] with interference from Noise
What are the factors influencing the communication situation?
- language differences
- economic differences
- sociocultural differences
- legal/regulatory differences
- competitive differences
What are the primary two-way communication tools?
- personal selling
- direct marketing
What are the primary one-way communication tools?
- advertising
- public relations
- sales promotion
- exhibitions trade shows
What are major international advertising decisions?
Objective setting > budget decisions > Message and Media decisions > agency selection > advertising evaluation
What is the affordable budget approach?
Set at a level that management thinks that can afford, ex. percentage of sales
What are the advantaged of an affordable budget approach?
- guarantees equality among markets
- easy to justify
- guarantees only what is affordable is spent
What are the disadvantages of an affordable budget approach?
- based on historical performance
- ignores necessity to increase spending when sales are declining
- does not consider goals
- fails to address relationship between advertising and sales
What is the competitive parity budget approach?
Duplicates the amounts spent on advertising by major rivals
- difficult to determine
- not always right for the company
What is the objective and task budget approach?
Determines the advertising by defining specific objectives and then determining tasks needed to attain the objectives
- cost-benefit analysis
- need good knowledge of local market
- only 20% of North American and UK companies use it
What is USP?
Unique selling proposition
What is ESP?
Emotional selling proposition
What is AIDA?
It is how to make a great copy for ads, emails, and web sites
- Attention (BOLD statements, effective headlines)
- Interest (offer them something they want, use YOU)
- Desire (create a future for the reader)
- Action (tell them to act NOW)
What are the four media decisions?
- Reach
- Frequency
- Impact
- GRPs
What is reach?
The number of people exposed, total proportion of the market exposed to at least one ad in a given time period in a given medium
What is frequency?
Average number of times within a given time frame that each potential customer is exposed to the same ad
What is impact?
The compatibility between the medium and the message
What is GRP
Reach x Frequency
Based on costs per 1000 impressions
What is the most trusted form of advertisement?
Word of mouth
What are the 6 types of mass media?
- TV
- Internet
- Newspaper
- Radio
- Outdoor
- Magazines
What are the two different agency decisions for international companies?
- Use different national/local agencies
- Use an international agency with domestic overseas offices
Why should you chose a national agency?
- supports national subsidiary
- investment in existing brand best handles nationally
- closer to marketplace
- personalized service and greater creativity
- diversity of ideas
Why should you choose a pan-European agency?
- reflects the new European reality
- economies of scale in new product development and branding
- uniformity of treatment across Europe
- resources and skill of major agency
- easier to manage one agency group
What are the types of sales promotions?
- discounts
- catalogs/brochures
- coupons
- samples
- gifts
- competitions
What is a sales promotion?
It is a short term effort directed primarily to the consumer and/or retailer to achieve specific objectives
What leads to the expansion of sales promotion activities?
- greater retail competition
- higher levels of brand awareness
- improved retail technology
- greater integration of promotional mix in media campaigns
What are the factors leading to the expansion of international direct marketing activities?
- development in mailing technology
- escalating costs of other forms of promotion
- increasing availability of quality lists
- developments in information technology
- increasing availability throughout developed world of interactive television facilities
What are the four types of sales force organizational structures?
- combination
- geographic
- customer
- product
What is a combination sales force org structure?
large sales volume in large developed markets with distinct language/cultures + flexibility + lower travel expenses
What is a customer sales force org structure?
Broad product lines + market/customer knowledge
What is a geographic sales force org structure?
Distinct language/cultures and a single product line in underdeveloped markets + clear/simple + cultivate local businesses + lower travel expenses
What is a product sales force org structure?
Established market with broad product lines + product knowledge
What are the challenges in international advertising?
- creativity
- implementation (budgets, clear product management, etc.)
What do you need to understand in international standardization of promotion?
- customers do not conform to national boundaries
- company is seeking to build brand image
- economies of scale can be achieved
- creative ideas and special expertise can be exploited
What do you need to understand in international adaptation of promotion?
- adapt to fit local markets, personal selling
- too much standardization results in inappropriate communication
- more and more complicated with internet marketing
