Week 7 - Promotion and Communication

Question 1

What is Promotion?

Answer 1

The marketing activities that make potential customers, partners and society aware of and attracted to the business’ offerings

Question 2

What are marketing communications

Answer 2

Another term for promotion that refers to communicating a message to the marketplace

Question 3

What are the objectives of promotion

Answer 3

demonstrates the features and benefits of the product distinguishing from competitors’ offerings

Encourage product trials and create demand.

Increase awareness about and goodwill for the organisation
- when this is linked to product sales, this is known as caused-
related marketing

Build a relationship between the customer and brand.

Question 4

Integrated marketing communications (IMC)

Answer 4

It is the coordination of promotional efforts to maximise the communication effect.

The idea behind it is that the planning of each part in the promotion mix should be done in isolation.

Its goal is to consistently send the most effective possible message to the target market

Question 5

What is the Promotional Mix (PAPS)

Answer 5

Public relations
Advertising
Personal Selling
Sales Promotion

Question 6

Integrating promotion mix elements

Answer 6

The most effective choice and mix of promotion elements depend on
- specific goals of the marketing effort
- individual product characteristics
- Individual target market characteristics
- nature of the marketing organisation itself
- Resources and budget available for the marketer

Question 7

What is the appropriate promotion mix

Answer 7

The appropriate promotion mix is likely to change over time as each characteristic can change, causing their effectiveness to change

Question 8

What is a pull policy

Answer 8

A pull policy is an approach in which the producer promotes its product to consumers

Question 9

What is a push policy

Answer 9

A push policy is an approach in which the product is promoted to the following organisation down the marketing distribution channel

Question 10

What is advertising

Answer 10

Advertising is the transmission of paid messages about an organisation, brand or product to a mass audience

The benefit is it’s ability to reach a lot of people at a relatively low cost per person

Product advertising usually aims to demonstrate the features
and benefits of the product and to promote the product or group
of products above competitors’ products

Question 11

How to create an advertising campaign?

Answer 11

There are key steps in creating an advertising campaign
- Understand the market environment
- Know the target market
- Set specific objectives
- create the message strategy
- Allocate resources
- Select Media
- Produce the advertisement
- place the advertisement
- evaluate the campaign

Question 12

Understanding the market environment

Answer 12

Advertising cannot be viewed in isolation.

Emerging issues in the marketing environment may affect
the advertising campaign.
* Technological changes.
* Competitor actions.

Need for a situational analysis.

Question 13

Knowing the target market (audience)

Answer 13

If you are sending a message, it is important to know about
who you are sending the message to.
* Demographic factors
* Lifestyle factors.

Marketing organisations that run advertising campaigns
that are not built on knowledge of the target market set
themselves up to fail.

Question 14

Set specific objectives

Answer 14

Often objectives will be set with the sight to increase sales,
but there need to be clear, measurable communication
objectives.

Once these are correctly defined, it can facilitate later
evaluation of the campaign’s success.

Question 15

Create the message strategy

Answer 15

A main messaging approach needs creating.
* E.g., emotional vs. rational.
* Type of emotional appeals

Intimately linked to knowledge of the target market and to
the specific objectives of the advertising campaign.

A lot of research is put into understanding which strategies
are more effective.

Question 16

Allocate resources

Answer 16

Determine a budget for its advertising campaign.

Budget will be based on its financial and other resources,
the objectives of the campaign and what it expects the
return on the investment to be.

• What is the right amount of capital and labour to invest?
• Businesses can choose to:
• Match its competitors’ spend.
• Set a certain percentage of sales or revenues aside.
• Make an educated guess
• Work backwards from the objectives to determine what will be
  required to produce the appropriate advertising.

Question 17

Select Media

Answer 17

Two of the most important considerations in choosing
media are reach and frequency.
* Reach measures what proportion of the target audience is
exposed to the advertisement at least once (how many).
* Frequency measures how many times each target market
member is exposed to the advertisement (how often).

Question 18

Produce the advertisement

Answer 18

The marketing organisation must create content (based on the
message strategy) and then work out how best to present that
content.
* Small organisations may undertake the creative execution
themselves.
* Large scale organisations might contract an advertising agency.
* The creative services may include copywriting, graphic design,
illustration, scripting and photography.
* Advertisements should aim first to grab the potential customer’s
attention

Question 19

Place the advertisement

Answer 19

Involves the buying and placement of media space and time
- Monitoring effectiveness

Question 20

Evaluate the campaign

Answer 20

Advertising campaigns can be evaluated before (pre‐tests),
during and after (post‐tests) the campaign is run.

• During the campaign, its effectiveness can be monitored by
  measuring changes in sales and enquiry levels, and any
  extra publicity generated by the campaign.
• After the campaign, its effectiveness can still be measured
  through changes in sales and enquiry levels, as well as by
  conducting market research to assess the level of attention
  or awareness, such as brand recognition or brand recall

Question 21

What are some legal issues in advertising

Answer 21

While the advertising sector is largely self‐regulating, there are a
number of legal restrictions on what can be advertised and how.

• While some promotions undoubtedly stretch the truth or add
  ‘puffery’ (exaggeration), outright lying is not only illegal, but
  damaging to customer relationships.

Question 22

Attention economy

Answer 22

Attention is one of the most valuable resources in the digital
age.
* Increasing problem for advertisers.
* Consumer attention span of ~8 seconds.
* Attention, Interest, Desire, Action (AIDA) is becoming an increasingly more difficult task

Question 23

What does the term Public relations mean

Answer 23

used to describe promotional efforts designed to build and sustain good relations between an organisation and its stakeholders.

Public relations is also used reactively to counter poor publicity
or as a part of crisis management.

Question 24

Public relations approaches and methods, publicity

Answer 24

The exposure a marketing organisation receives when it obtains free coverage in the media

Positive coverage is preferred, but many marketers adhere to the old idea that ‘any publicity is good publicity

One of the highest-profile public relations tools is sponsorship

Question 25

Public relations approaches and methods, Sales promotion

Answer 25

Sales promotion offers extra value to resellers, salespeople and consumers in a bid to increase sales

The main benefit of sales promotions are to smooth out sales in periods of low demand and to facilitate retailer support

Question 26

Consumer Sales promotions

Answer 26

Sales promotion methods aimed at the consumer include:
- free sample
- premium offers
- loyalty program
- contests
- coupons
- discounts
- event sponsorships

Question 27

What is Trade sales promotion

Answer 27

aimed at business purchasers and are run by producers or industries to present products to business customers (e.g. - Conventions and Trade Show)

This is an example of a push policy

Trade sales promotion methods include the following
Trade allowances
Gifts and premium money
Cooperative advertising
Dealer listings

Question 28

Personal selling

Answer 28

the use of personal communicaton with consumers to persuade them to buy products

Personal selling is the most expensive form of promotion as it requires the full dedication of a salesperson, or sales representatives, to a customer

Question 29

Additional Forms Of Promotion:

Answer 29

Ambush marketing - The presentation of marketing messages at an event that is sponsored by an unrelated business or even a competitor

Guerrilla Marketing - Used to describe any aggressive and unconventional marketing approach simply to grab attention

Product Placement - The paid inclusion of products in movies, tv shows, video games, songs and books usually excluding any competitors

Viral Marketing - The use of electronic social networks to spread a marketing message

Permission Marketing - The broad term given to activities that are centred around obtaining customer consent to receive information and marketing materials from a company

Sponsorship - The paid association of a brand with an event or person