Flashcards in Chapter 11: Promotion Strategy Deck (48):
What are the 5 main ways to promote (promotion mix)?
2. Sales Promotions
3. Personal Selling
4. Public Relations
5. Direct Marketing
What is PUSH STRATEGY?
Pushes products through the channel of distribution (wholesalers and retailers) to stock their product. (Personal selling and trade promotions work well here)
What is PULL STRATEGY?
Producers direct their marketing activities toward the final consumer to encourage them to ask retailers (channel members) for the product.
What two points can marketers agree on about Push vs Pull?
1. Image-building mass media advertising and public relations are examples of pull marketing.
2. Price-oriented trade promotions and price discounts are examples of push marketing.
What is the danger of push marketing?
In a world of incentives, consumers become more sensitive to prices, low-cost producers are handed a competitive advantage and profitability may be driven out.
What is the benefit of pull marketing?
It is an important way to build brand equity and long-term competitive advantage.
Ad campaign seek to achieve one or more of what 3 objectives?
1. Cognitive - Build awareness
2. Affective - Gain interest and liking
3. Behavioral - Stimulate Action
What is the AIDA model?
Attention Interest Desire Action
What 3 questions can measure the effectiveness of an ad in (1) building awareness and (2) creating interest (affective)?
1. What percentage of people can remember the ad and product being advertised?
2. What percentage of people remembering the product can also remember the brand?
3. What percentage of people remembering the product and brand can also remember the key benefit?
What are the 5 elements of the CREATIVE BRIEF that is presented to ad agencies?
1. Brand Legacy
2. Copy Strategy
3. Executional Considerations
4. Profiles of Key Customer Groups
5. Profiles of Key Competitors
What 4 terms should be identified in COPY STRATEGY?
Reason to Believe
What are the 3 EXECUTIONAL CONSIDERATIONS?
1. Strategic Goals
2. Tactical Goals
3. Execution Style
What 3 considerations are made in MEDIA BUYING?
1. CPM - Cost-Per-Thousand Impressions
2. GRP - Gross Rating Points
3. TRP - Target Rating Points
Define CPM (cost-per-thousand impressions)
Refers to how many opportunities the general public has to view a particular ad.
Define GRP (gross rating points)
GRP is reach X frequency.
Reach is the percentage of all households with tvs that have an opportunity to view an ad over the course of the media plan.
Frequency is the number of opportunities a typical reached household has to view the ad over the course of a media plan.
Define TRP (Target rating points)
The percentage of GRP that is part of the target market.
What element of advertising gets an ad watched?
What are SALES PROMOTIONS?
Short-term incentives to encourage product trial by new customers and to increase repeat purchases by existing customers. (Buy NOW)
What are the 2 types of sales promotions?
1. Value-Added Promotion
2. Price-Off Promotion
What are examples of VALUE-ADDED PROMOTIONS and what are they best at?
Contests, sweepstakes, self-liquidating premiums, samples.
Best at building brand loyalty, defining brand personality, and introducing new complementary products to brand champions.
Have the potential for dramatically increasing sales. (Monopoly at McDonalds)
What are the disadvantages of PRICE-OFF PROMOTIONS? When should this method be used?
They can undermine brand equity and trade temporary increases in market share for permanent decreases in sales margins.
They should be used on products that are consumed faster when there is more of it around (coke).
What are CAUSE-RELATED PROMOTIONS?
These promotions allow customers to support a good cause with purchasing a product they need.
What are TRADE PROMOTIONS?
When marketing managers offer buying incentives to retailers rather than consumers. (Free product displays, free merchandise, etc).
It is often needed when trying to encourage large retailers to stock manufacturer's products (push strategy).
What are the 4 most common trade allowances?
1. Reducing unit price for larger quantities purchased
2. Offering eye-level or end of-aisle shelf space
3. Highlighting the product with in-store ads
4. Having employees actively promote the product
What is CO-OP advertising?
When manufacturers offer advertising dollars to retailers that include their products in weekly sales circulars.
What is PERSONAL SELLING?
Two-way communication between a buyer and seller, designed to influence a purchase decision and develop customer relationships.
High-cost, complex products and services that require demonstration are great candidates for personal selling.
What are ORDER TAKERS? (type of salesmen)
Work in retail sales, inbound phone sales. Little training, low salary.
What are ORDER GETTERS? (type of salesmen)
Ability to close sales, find new customers, and increase repeat purchases. Extensive sales training. (Paid on commission)
What are RETAIL SALESPEOPLE? (type of salesmen)
Have many other functions besides selling. Little training, low salary.
What are MISSIONARY SALESPEOPLE? (type of salesmen)
Usually travel to meet with potential customers to hand out literature and describe products (not closers).
What are TECHNICAL SALESPEOPLE? (type of salesmen)
Generally part of a business-to-business team. Explain technical innovations and how they can enhance a customer's business operations.
What are SERVICE SALESPEOPLE? (type of salesmen)
Work with business-to-business customers after the sale is complete. Arrange for training, follow-up purchases, maintain positive relationship.
What are the 7 basic steps of every sale engagement?
1. Prospecting and Qualifying
4. Presentation & Demonstration
5. Handling Objections
What is PROSPECTING AND QUALIFYING?
Identifying potential customers and assessing ability to pay.
What is the PREAPPROACH?
Researching the potential customer (needs, position, etc) to determine how their products may add value.
What is the APPROACH?
The first formal contact with a potential customer. Usually directed at building relationships. First impressions.
A sale can't be won with a good approach, but it can be lost with a bad one.
What is PRESENTATION AND DEMONSTRATION?
Grouped into 3 categories:
1. Scripted Presentation (memorized)
2. Formula Presentation (specific questions, specific answers)
3. Satisfaction Presentation (uncover needs and propose solutions)
What is HANDLING OBJECTIONS?
Acknowledging (but not stumbling or lingering on) push back or raised customer questions. Attempt to push forward with positive explanations.
What is CLOSING?
Gives potential customer purchasing opportunity. Usually done in "summary-of-the-benefits" manner.
What is FOLLOW UP?
Allows for customer questions, review special arrangements, and reinforcement of the purchase being good.
What are the 6 determinants of salesperson performance?
1. Aptitude (native ability/talent)
2. Personal Characteristics (physical traits, education, experience)
3. Skill Level (proficiencies)
4. Role perceptions (understanding job description, role)
5. Motivation (desire, effort)
6. Organizational & Environmental Factors (Company's competitive strength)
What is PUBLIC RELATIONS?
Activities designed to manage the public image of a person, organization, and/or brand. (Canon + Ron Howard)
What is DIRECT MARKETING?
Focuses on direct communication with consumers to encourage a direct response for a purchase, request for information, or to visit a website. (Direct mail, telemarketing, catalog, tv shopping)
Why the shift to INTEGRATED MARKETING COMMUNICATIONS?
As time and technology move on and television programming and other entertainment options become more numerous and fragmented, the effectiveness of mass media advertising decreases.
What is INTEGRATED MARKETING?
Emphasis on coordinating all aspects of marketing communications. It focuses on the 4 C's instead of the 4 P's.
What are the 4 C's of integrated marketing?
1. Consumer rather than product
2. Cost rather than price
3. Convenience rather than place
4. Communication rather than promotion
True or false? Consumers move in steps from one mental state to the next before eventually deciding to purchase a particular product?