Topic 04-Promotional Decisions Flashcards
Elements of the Promotional Mix (10)
1) Sales Promotion
2) Advertising
3) Product Placement
4) Direct Marketing
5) PR
6) Event Sponsorships
7) Publicity
8) Personal Selling
9) Point of Purchase
10) Digital
Definition: Advertising
- Reaches masses of buyers at al low cost per exposure
- Builds long term image
- Can trigger quick scales
- Impersonal and lacks of the direkt persuasiveness of the sales perople
Definition: Product Placement
As the name suggests, product placement consists of a company placing a certain product in a movie, series or publication where the actors are seen using the product in one way or another.
Definition: Direct Marketing
Direct Markeing is targetet on individual customer or customer groups . That contains sending catalogues, letters, mails, text messages etc. A direct, individual contact is supposed to be established. But the direct marketing is not personalized.
ex.: furniture shop
Definition: PR (Public Relations)
- Highly connected with the image of the company
- PR involves word-of-mouth promotion and is often free or extremely low cost
- the customers are made to feel good about buying the product because the business supports a good cause, leading to the customers telling their friends and family about it.
Definition: Event Sponsorships
This can often be a win-win situation as a local team or event could profit off a big company whilst the company gets its name out there at the same time.
Definition: Publicity
Publicity can be both good or bad, but usually consists of creating a media hype about the product/service, leading to other peopple talking about the company once again being free promotion.
Definition: Personal Selling
- Involves 1-on-1 sales with a salesman to customer approach
- building customer-salesman relationship
- Customer can be persuaded
- For example this could be a car salesman in a car dealership. This approach allows all kinds of customer relationships to spring up, whilst the buyer feels a greater need to listen and respond even though it has to be said that this is the most expensive promotion tool.
Definition: Point of Purchase
Point of Purchase takes advantage of the consumer being at the store or at the place where they planned to purchase something else, but are lured in by other advertisements (at the counter for example).
Definition: Digital
This approach is becoming ever more important in the emerging digital world and consists of social media marketing, banners on websites or in-app advertisements.
- economical
- customizable and believable
Definition: Integrated marketing communications
This concept focuses on being consistent with one’s marketing, so that the same thing is said on every medium. Although this can be incredibly hard to achieve, it should be seen as a goal for most businesses.
Stages of the basic communication model (6) + 1
1) Sender (Ad Agency, Marketing Dep.)
2) Encode (the idea gets converted into ads, words and pictures)
3) Choose message channel (in-stoer, TV, Radio, Website, etc.)
4) Decode (receiver has to decode/interprete the message)
5) Arrives at reciever (customer or consumer)
6) Reciever gives feedback (to sender)
Interference Noise around (friends, other ads, other)
->marketing has to catch the customer
Types of media (3) + explanation
1) Paid media
- traditional avertising (print, TV, radio, mail, display…)
2) Owned media
- corporate web site, blog, Facebook page, Instagram, campaign microsite…)
3) Earned media
- word of mouth, Comments on FB Twitter. review sites, forums
Lead customers through these stages (7)
1) Unawareness
2) Awareness
3) knowledge
4) Liking or Disliking
5) Preference
6) Conviction
7) Purchase
3 models for communication between marketers and consumers
1) One-to-many (Advertising, sales promotion, PR)
2) One-to-one (Database marketing, direct marketing, personal selling)
3) Many-to-many (Publicity, digital)
1. Listening
2. Sharing
3. Serving
4. Engaging
5. Educating
