Chapter 12 - Promotion Mix

Question 1

What is a promotion mix and what other name do we give it?

Answer 1

Specific blend of promotion tools used by companies to persuasively communicate customer value and build customer relationships.

Marketing communications mix

Question 2

What are the 5 promotion tools?

Answer 2

1. Advertising
2. Sales promotion
3. Personal selling
4. Public relations (PR)
5. Direct and digital marketing

Question 3

What is advertising?

Answer 3

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Question 4

What is sales promotion?

Answer 4

Short-term incentives to encourage purchase or sale of a product or service.

Question 5

What is public relations?

Answer 5

Building good relations and corporate image with the company’s publics using publicity, and handling unfavorable events.

Question 6

What is personal selling?

Answer 6

Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.

Question 7

What is direct marketing?

Answer 7

Direct communications with targeted individuals to obtain an immediate response and lasting customer relationships.

Question 8

What factors are changing the face of today’s marketing communications?

Answer 8

Changing consumers
Changing marketing strategies
Advancements in digital technology

Question 9

What is integrated marketing communications (IMC)?

Answer 9

The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Question 10

Why do we need integrated marketing communications?

Answer 10

Conflicting messages from different sources or promotional approaches can confuse company or brand images

The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently

Question 11

What determines the overall communications mix?

Answer 11

Determined by the nature of each promotion tool and the selected promotion mix strategy

Question 12

What are the two promotion strategies?

Answer 12

Push strategy: involves “pushing” the product through marketing channels to final consumers.

Producer –> Retailers and wholesalers –> consumers

Pull strategy: producer directs its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.

Question 13

What are the 4 steps in developing an advertising program?

Answer 13

1. Setting objectives
2. Setting the budget
3. Developing the advertising strategy
4. Evaluating advertising campaigns

Question 14

Expand on the setting objectives step?

Answer 14

Advertising objectives can be classified by primary purpose:
- Inform
– Introducing new products

• Persuade
  – Becomes more important as competition increases
  – Comparative advertising
• Remind
  – Most important for mature products

Question 15

What are the 4 methods for setting the budget?

Answer 15

1. Affordable method
2. Percentage-of-sales method
3. Competitive-parity method
4. Objective-and-task method (most logical)

Question 16

Expand on the developing the advertising strategy step?

Answer 16

Accomplishes the company’s advertising objectives

Creating ad messages:
- Breaking through the clutter
- Merging advertising and entertainment
- Message and content strategy
- Message execution
- Consumer-generated content

Select advertising media:
- Decide on level of reach, frequency, impact and engagement
- Choose among the major media types by considering:
– Consumer media habits, nature of the product, types of messages, and costs
- Select specific media vehicles
Decide on media timing

Question 17

What are some creative executive styles?

Answer 17

Slice of Life
Lifestyle
Fantasy
Mood or Image
Musical
Testimonial Evidence or Endorsement
Personality Symbol
Technical Expertise
Scientific Evidence

Question 18

What are the main advertising media types?

Answer 18

Newspapers
Television
Direct Mail
Digital, mobile, and social media
Magazines
Outdoor
Radio

Question 19

Expand the evaluating advertising effectiveness step?

Answer 19

Return on advertising investment: Net return on advertising investment divided by the costs of the advertising investment

Advertisers should regularly evaluate
- Communication effects
- Sales and profit effects

Question 20

What are the 6 public relations functions?

Answer 20

Press Relations
Product and brand Publicity
Public Affairs
Lobbying
Investor Relations
Development

Question 21

What are the role and impact of public relations?

Answer 21

Strong impact on public awareness at a lower cost than advertising
Power to engage consumers and make them part of the brand’s story, inject them in daily conversations
Limited and scattered use
Powerful brand-building tool

Question 22

What are the main major public relations tools?

Answer 22

News
Corporate Identity Materials
Special Events
Written Materials
Audiovisual Materials
Public Service Activities

Question 23

Who are the sales promotion targets?

Answer 23

Final buyers—Consumer promotions
Retailers and wholesalers—Trade promotions
Business customers—Business promotions
Members of the sales force—Sales force promotions

Question 24

What factors have contributed to the rapid growth of sales promotion?

Answer 24

Product managers view promotion as an effective short-run sales tool.
Competitors use sales promotion to differentiate their offers.
Advertising efficiency has declined.
Sales promotions help attract today’s more thrift-oriented consumers.

Question 25

What are the 3 types of sales promotions and their objectives?

Answer 25

Consumer promotions: - To urge short-term customer buying or boost customer-brand engagement Trade promotions: - To get retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space Business promotions: - To generate business leads, stimulate purchases, reward customers, and motivate salespeople

Question 26

Name some of the consumer promotion tools?

Answer 26

Samples Coupons Rebates Price packs Premiums Event marketing Contests Point-of-purchase

Question 27

What are the 5 steps in developing the sales promotion program?

Answer 27

1. Size of the incentive 2. Conditions for participation 3. Promotion and distribution of the actual sales promotion program 4. Length of the promotional program 5. Evaluation

Question 28

What is the role of the sales force in personnel selling?

Answer 28

Links the company with its customers Coordinates marketing and sales Prospecting and communicating Selling and servicing Gathering information and building relationships

Question 29

What are the 7 steps in the personal selling process?

Answer 29

1. Prospecting and qualifying 2. Preapproach 3. Approach 4. Presentation and demonstration 5. Handling objections 6. Closing 7. Follow-up

Question 30

What are some factors of the growth of direct and digital marketing?

Answer 30

Fastest-growing form of marketing Direct marketing becoming more Internet-based Direct marketing claims a surging share of marketing spending and sales: - Includes online display and search advertising, video, social media, mobile, email

Question 31

Who and what are the benefits of direct and digital marketing to buyers?

Answer 31

Buyers: - Convenient, easy, and private - Easy buyer-seller interaction - Quick access to products and relevant information - Brand engagement and community Sellers: - Low-cost, efficient, and speedy - Build close, personalized, interactive, one-to-one customer relationships - Greater flexibility

Question 32

What are the two types of direct and digital marketing?

Answer 32

1. Digital and social media marketing 2. Traditional direct-marketing

Question 33

What is Digital and social media marketing?

Answer 33

Using digital marketing tools to engage consumers anywhere, anytime via their digital devices

Question 34

What is digital age?

Answer 34

Changing customers’ notions of convenience, speed, price, product information, service, and brand interactions

Question 35

What is Omni-channel retailing?

Answer 35

Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

Question 36

What is online marketing?

Answer 36

Marketing via the Internet using company Web sites, online ads and promotions, email, online video, and blogs

Question 37

What is online advertising?

Answer 37

Appears while consumers are browsing online

Question 38

What is email marketing?

Answer 38

Sending highly targeted, highly personalized, relationship-building marketing messages via email Spam: Unsolicited, unwanted commercial email messages

Question 39

What is viral marketing?

Answer 39

Videos, ads, and other marketing content that customers seek out or pass along to friends

Question 40

What are blogs and other online forums and their benefits/limitations?

Answer 40

Online journals of narrowly defined topics where people and companies post their thoughts and other content Benefits: A fresh, original, personal, and inexpensive way to enter into consumer online conversations Limitations: Cluttered, difficult to control and largely a consumer-controlled medium

Question 41

What is social media marketing?

Answer 41

Independent and commercial online communities where people congregate, to socialize and share messages, opinions, pictures, videos, and other content Marketers engage social media in two ways: - Using the existing ones - Setting up their own

Question 42

What are the advantages and challenges of social media marketing?

Answer 42

Advantages: - Targeted and personal - Interactive - Immediate and timely - Cost effective - Engagement and social sharing capabilities Disadvantages: - Effective usage uncertain - Difficult to measure results - Largely user controlled

Question 43

What is mobile marketing?

Answer 43

Promotional content delivered to consumers through their mobile devices Engages customers anywhere, anytime during the buying and relationship-building processes

Question 44

What are some public policy issues in direct and digital marketing?

Answer 44

Irritation, Unfairness, Deception, and Fraud Consumer Privacy A Need for Action

Question 45

What is integrated marketing communication?

Answer 45

Coordinate across different promotion mix elements to achieve the promotion objectives Factors affecting the promotion mix: - Objectives (e.g., Target Audience, Pull vs. Push) - Unique nature of individual promotion mix elements - Nature of the product - Stages in the Product Life Cycle - Stages in the Consumer Problem Solving Process - Promotion Budget

Question 46

What is integrated social media marketing?

Answer 46

Large companies design social media efforts that blend with and support other elements of a brand’s marketing strategy and tactics. Firms that use social media effectively create brand-related social sharing, engagement, and customer community.