T8 - promotion

Question 1

Communication process (4)

Answer 1

1. message encoded, sent by sender or source
2. sent via message channel or medium
3. received by target audience
4. they decode the message and respond via feedback

Question 2

What is integrated marketing communications (IMC)?

Answer 2

Coordination of promotional efforts to maximise the communication’s effectiveness

Question 3

Main components of the promotion mix (4)

Answer 3

1. advertising
2. public relations
3. sales promotion
4. personal selling

Question 4

Advertising

• pros
• cons

Answer 4

Transmission of paid messages to a mass audience

• wide reach
• low cost per person
• can be specific in targeting
  = hard to measure effectiveness
  = limited personalisation of the message

Question 5

Public relations

Answer 5

Communications aimed at creating/maintaining relationships with its stakeholders

Stakeholders:

• customers
• suppliers
• owners
• employees
• media
• can result in word of mouth
• low/no cost
• credible
  = customers are cynical about business motivations
  = really bad if the PR campaign does not go well due to the additional exposure

# publicity
# media release
# sponsorship
# charitable donations or acts

Question 6

Sales promotion

Answer 6

Offer extra value to resellers, salespeople and consumers to try and increase sales

• smooth out sales in periods of low demand
• facilitate retailer support
  = can lose effectiveness if overused
  = can be easily copied
  = public cynical about whether they are getting a deal or not

# free samples
# premium offers (bonuses for buying)
# loyalty programs
# contests
# coupons
# discounts
# rebates
# event sponsorships
# point of purchase promotions (eg. signs, banners, free tastings)

Question 7

Personal selling

Answer 7

Personal communication efforts that seek to persuade consumers to buy products

• message can be very personalised and tailored
• can adjust to feedback immediately
  = expensive
  = limited reach
  = labour intensive
  = viewed cynically by consumers

Question 8

Pull policy
vs
Push policy

Answer 8

Pull
- producer promotes its products to consumers
- generates demand upward through marketing distribution channel
> consumer researches product

Push
- product promoted to wholesaler, which in turn promotes to retailer who promotes to consumers
- B2B relationship
- moves down the channel of distribution
> consumer told about product at the store

Question 9

Personal selling model (INPLCF)

Answer 9

• info
• needs
• product
• leverage
• commitment/close
• follow-up

Question 10

Ambush marketing

Answer 10

Make consumers think that they are officially linked with an event when they are not - grab the attention away from the official sponsors

Question 11

Guerilla marketing

Answer 11

Aggressive/unconventional marketing approach where they aim to grab attention of consumers while they are unaware

• flash mobs

Question 12

Permission marketing

Answer 12

Customer consents to receive information and marketing material