Test 3 Flashcards
Definition of IMC
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
4 things: Marketing, Advertising, Public Relations, & Sales
The role of promotion in the marketing mix
The marketer communications the promotional mix (advertising, PR, sales promo, personal selling) to the consumer. This is the promotional strategy
4 Elements of the promotional mix
Advertising, PR, Sales Promotion, Personal Selling
Advertising
Mass communication sponsored by organizations to promote products and services
Public Relations
The management of communication to influence opinion and build relationships between an organization and its publics.
Sales Promotion
Short-term incentives that stimulate sales and consumer demand.
Personal Selling
Selling that involves direct communication and interaction between a salesperson and a customer
Traditional Advertising Media
Television, Radio, Newspapers, Magazines, Books, Direct mail, Billboards, Transit cards
New Advertising Media
Internet, Banner ads, Viral marketing, E- mail, Interactive video
5 Goals of PR
- maintain a positive image
- educate the public about the company’s objectives
- introduce new products
- support the sales effort
- generate favorable publicity
Goals of Promotion
Informing, Reminding, and Persuading the Target Audience
AIDA Concept
Attention, Interest, Desire, Action
Attention
Gain attention of target market
Interest
Create interest in product
Desire
Consumer desires to purchase the product
Action
Consumer purchases the product
Advertising: AIDA
Attention: Very effective
Interest: Very effective
Desire: Somewhat effective
Action: Not effective
Public Relations: AIDA
Attention: Very effective
Interest: Very effective
Desire: Very effective
Action: Not effective
Sales Promotion: AIDA
Attention: Somewhat effective
Interest: Somewhat effective
Desire: Very effective
Action: Somewhat effective
Personal Selling: AIDA
Attention: Somewhat effective
Interest: Very effective
Desire: Very effective
Action: Very effective
6 Factors Affecting the Choice of Promotional Mix
- Nature of the product
- Stage in the product life cycle
- Target market factors
- Type of buying decision
- Promotion funds
- Push or pull strategy
Promo vs. Advertising
Advertising = reason to buy
Sales promotion = incentive to buy
Value Concept
-Ratio of benefits acquired vs. cost of acquisition
What Sales Promotion Can Do
- Reinvigorate sales of a mature brand
- Neutralize competitive promotions
- Obtain a trial usage of a product
- Encourage repeat purchases
- Increase product usage
- Cross-sell, bundle and up-sell
- Reinforce advertising programs
What Sales Promos Can’t Do
- Give consumers a compelling long-term reason to buy
- Stop declining sales of an unpopular product
- Compensate for bad advertising
- Compensate for an ineffective sales force
Planning Promotions for a Loyal Customer
- Loyalty marketing
- Bonus packs
Planning Promotions for a Competitor’s Customers
- Sampling
- Sweepstakes, contests, premiums
Planning Promotions for Brand Switchers
- Price-lowering promotion
- Trade deals
Planning Promotions for Price Buyers
- Coupons, price-off packages, refunds
- Trade deals
Pull
Consumer promotion - pull the product sales through consumer demand
Push
Trade promotion - push the product sales through the marketing channel
Promo Risks
- Undermines published prices
- Conditions consumers to purchase only when incentives are offered
- May not increase sales
- Brand image lowered
- Competitive response
- Reduced profitability
5 Key Questions of Consumer Promotions
- What’s the goal of your promotion?
- Who is your primary target audience?
- What is your promotion budget?
- What type of promotion will work best?
- How will you evaluate your promotion?
6 types of Consumer Promotions
- Coupons and Rebates
- Premiums
- Loyalty Marketing Programs
- Contests and Sweepstakes
- Sampling
- Point-of-Purchase Promotion
Coupon
A certificate that entitles consumers to an immediate price reduction
Rebate
A cash refund given for the purchase of a product during a specific period
Premium
An extra item offered to the consumer, usually in exchange for some proof of purchase
Frequent Buyer Program
A loyalty program in which loyal consumers are rewarded for making multiple purchases
Contest
Promotions that require skill or ability to compete for prizes
Sweepstakes
Promotions that depend on chance or luck, with free participations
Sampling
A promotional program that allows the consumer the opportunity to try a product or service for free
Point of Purchase
Promotional display in retail location
Trade Sales Promotions Definitions
- Incentives offered to resellers to encourage them to buy more products and promote them more aggressively
- Marketing strategies to build demand among resellers
Trade Sales Promotions’ 7 Goals
- Gain new distributors
- Strengthen relationships with current distributors
- Influence resellers to promote products
- Influence reseller purchases and inventory
- Avoid permanent price reductions
- Coordinate efforts with consumer promotions
- Defend market share from competitors
5 Reseller Considerations
- Consumer demand
- Inventory costs
- Risk of failure
- Competitive advantage
- Margin improvement
6 types of Trade Sales Promotions
- Trade Allowances
- Push Money
- Training
- Free Merchandise
- Store Demonstration
- Conventions & Trade Shows
- Alternative marketing strategies
- Buzz Marketing
- Guerrilla Marketing
- Lifestyle Marketing
- Experiential Marketing
- Product Placement
Buzz Marketing
- Word-of-mouth marketing
- More powerful than paid advertising
Guerrilla Marketing
- Unconventional and creative
- Good for limited budget
- Consumer interaction
Lifestyle Marketing
- Connects with consumers’ hobbies and entertainment choices
- Establishes common ground between brand and consumer
Experiential Marketing
- Combine direct marketing, field promotions, sales promotions
- Create unique consumer experience with your brand
- Engagement, sampling, special events, hands-on experience
Product Placement
-Planned insertion of product into movie, television program, or other medium
4 Types of Alternative Media Venues
- Mobile phone advertising
- Video game advertising
- Cinema advertising
- Others - parking lots, bus wraps, kiosks, bags, menus, etc
What percentage of purchase decisions are made in retail stores?
60
What percentage do each of these influence purchase decisions? In-store, Print, TV?
In-Store: 52
Print: 24
TV: 14
5 Point of Purchase strategies
- Integrate brand’s image into the display
- Integrate display with other advertising and promotions
- Make the display dramatic to get attention
- Make it easy to assemble and stock
- Track purchase results using bar codes
4 Benefits of Brand Communities
- Affirms buying decision
- Social identity and bonding
- Swap stories and advice
- Feedback and new ideas
Bonus (4)
- Payment for achievement of specific sales objectives
- Allows marketer to establish goals
- Can be paid as bonus or commission
- Pay for performance reduces risk
Sales Meetings (5)
- Reward performance
- Launch new products
- Provide training
- Motivate sales force
- Build culture of high-performance
