Chapter 15 Flashcards
(110 cards)
1
Q
To build good customer relationships, is it enough to just develop a good product, price it attractively, and make it available to target customers?
A
No, companies must also engage consumers and communicate their value propositions to customers, and what they communicate should not be left to chance
2
Q
How can companies make sure what they communicate isn’t left to chance?
A
All communications must be planned and blended into carefully integrated programs.
3
Q
What is a crucial element in a company’s efforts to engage customers and build profitable customer relationships?
A
Good communication
4
Q
What is a promotion mix (marketing
communications mix?
A
The specific blend of promotion
tools that the company uses to
persuasively communicate
customer value and build
customer relationships.
5
Q
What are the 5 major promotion tools?
A
- Advertising
- Sales promotion
- Personal selling
- Public relations (PR)
- Direct and digital marketing
6
Q
What is advertising?
A
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
7
Q
What is sales promotion?
A
Short-term incentives to encourage the purchase or sale of a product or a service.
8
Q
What is personal selling?
A
Personal presentation by the firm’s
sales force for the purpose of engaging customers, making sales,
and building customer relationships.
9
Q
What is public relations (PR)?
A
Building good relations with the company’s various publics by obtaining favourable publicity,
building up a good corporate image, and handling or heading off unfavourable rumours, stories, and
events.
10
Q
What is direct and digital marketing?
A
Engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build lasting customer relationships.
11
Q
What are the specific promotional tools used to communicate with customers in advertising?
A
Broadcast, print, online, mobile,
outdoor, and other forms
12
Q
What are the specific promotional tools used to communicate with customers in sales promotion?
A
Discounts, coupons, displays, demonstrations, and events
13
Q
What are the specific promotional tools used to communicate with customers in personal selling?
A
Sales presentations, trade shows, and
incentive programs
14
Q
What are the specific promotional tools used to communicate with customers in public relations?
A
Press releases, sponsorships, events, and webpages
15
Q
What are the specific promotional tools used to communicate with customers in direct and digital marketing?
A
Direct mail, email, catalogues, online and social media, mobile marketing, and more
16
Q
What elements, beyond promotion tools, contribute to marketing communication?
A
The product’s design, its price, the shape and colour of its package, and the stores that sell it—all communicate something to buyers
17
Q
What is the primary activity for engaging and communicating with customers?
A
The promotion mix is the primary engagement and communication activity.
18
Q
What part of the marketing mix must be coordinated for the biggest impact on the message to customers?
A
The entire marketing mix - promotion and product, price, and place—must be coordinated for greatest impact.
19
Q
What does the concept of integrated marketing communications suggest?
A
That the company must blend the promotion tools carefully into a coordinated promotion mix
20
Q
How does a company determine what mix of promotion tools to use?
A
Companies within the same industry differ greatly in the design of their promotion mixes.
Ex. Mary Kay spends mostly on personal selling and direct marketing, whereas CoverGirl spends heavily on consumer advertising
21
Q
What is the nature of each promotion tool like?
A
Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix.
22
Q
What are the characteristics/benefits of advertising?
A
- Can reach masses of geographically dispersed buyers at a low cost per exposure
- Enables the seller to repeat a message many times
23
Q
What is a form of advertising that can reach huge audiences?
A
Television: 103+ million people watched the 2018 Super Bowl, and as many as 26 million avid fans tuned in each week for the 2018 season of This Is Us. A popular TV ad’s reach can be extended through online and social media.
Clash of Clans Super Bowl ad got 100+ million views on TV and 82 million on Youtube
24
Q
What form of advertising should companies use when they want to reach a mass audience?
A
TV
25
Beyond its reach, how can large-scale advertising say something positive about the seller’s size, popularity, and success?
Because of advertising’s public
nature, consumers tend to view advertised products as more legitimate.
26
How is advertising very expressive?
It allows the company to dramatize its products through the artful use of visuals, print, sound, and colour.
27
What's an example of a company that uses ads to build up a long-term image for a product?
Coca-Cola
28
What is an example of a company using ads to trigger quick sales?
When Canadian Tire advertises weekend specials
29
What are the drawbacks of advertising?
- Is impersonal and lacks direct persuasiveness
- Can carry on only a one-way communication with an audience
- Can be very costly
30
Why is mass media advertising impersonal and lacks direct persuasiveness?
Although it reaches many people quickly, mass-media advertising is impersonal and lacks the direct persuasiveness of company salespeople.
31
What is the effect of advertising only carrying a one-way communication with an audience?
Audience does not feel that it has to pay attention or respond
32
How can advertising be very costly?
Although some advertising forms—such as newspaper, radio, or online advertising—can be done on smaller budgets, other forms, such as network TV advertising, require very large budgets
33
What is an example of a very expensive TV advertisement?
90-second Amazon Echo “Alexa Loses Her Voice” Super Bowl ad cost US$14.9 million for media time alone—more than US$165 000 per second—not counting the costs of producing the ad
34
How is personal selling the most effective tool in particular stages of the buying process?
Particularly in building up buyers’ preferences, convictions, and actions.
35
What is the benefit of personal selling involving personal interaction between two or more people?
Each person can observe the other’s needs and characteristics and make quick adjustments
36
What kinds of customer relationships can emerge from personal selling?
Ranging from matter-of-fact selling relationships to personal friendships. An effective salesperson keeps the customer’s interests at heart to build a long-term relationship by solving a customer's problems
37
What kind of attentiveness can personal selling evoke from the buyer?
With personal selling, the buyer usually feels a greater need to listen and respond, even if the response is a polite “No, thank you.”
38
What are the drawbacks of personal sellling?
Sales force requires a longer-term commitment than does advertising
39
Why does the sales force in personal selling requires a longer-term commitment than does advertising?
- Advertising can be turned up or down, but the size of a sales force is harder to change
- Company’s most expensive promotion tool
40
How is personal selling a company's most expensive promotion tool?
Costing companies on average $600 or more per sales call, depending on the industry. Firms spend up to 3x as much on personal selling as they do on advertising.
41
What are the benefits of sales promotion?
- Wide assortment of tools with many unique qualities
- Invite and reward quick response
42
How can the wide of assortment of tools in sales promotion be beneficial?
Attract consumer attention, engage consumers, offer strong incentives to purchase, and can be used to dramatize product offers and boost sagging sales
43
What is the difference between advertisement and sales promotion?
Advertising says, “Buy our product,” sales promotion says, “Buy it now.”
44
What are the drawbacks of sales promotion?
Effects can be short-lived, however, and often are not as effective as advertising or personal selling in
building long-run brand preference and customer relationships
45
What are the benefits of public relations?
- Very believable
- Reach many prospects who avoid salespeople and advertisements
- Dramatize a company or product
46
How is PR very believable?
News stories, features, sponsor-ships, and events seem more real and believable to readers than ads do
47
How can PR reach many prospects who avoid salespeople and advertisements?
The message gets to buyers as “news and events” rather than as a sales-directed communication.
48
What are the drawbacks of PR?
Not really a drawbacks but...
Marketers tend to underuse public relations or use it as an afterthought.
49
How can PR be very effective and economical?
A well-thought-out public relations campaign used with other promotion mix elements
50
What are the distinctive characteristics the many forms of direct and digital marketing all share?
- More targeted
- Immediate and personalized
- Interactive
51
How is direct and digital marketing more targeted?
It’s usually directed to a specific customer or customer community
52
How is direct and digital marketing immediate and personalized?
Messages can be prepared quickly—even in real time—and tailored to appeal to individual consumers or brand groups
53
How is direct and digital marketing interactive?
It allows a dialogue between the marketing team and the consumer, and messages can be altered depending on the consumer’s response.
54
What is direct and digital marketing well suited to?
Highly targeted marketing efforts,
creating customer engagement, and building one-to-one customer relationships
55
What is a push strategy?
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer
promotes the product to channel
members who in turn promote it to final consumers.
56
What are the 2 basic promotion mix strategies marketers can choose from?
1. PUSH promotion
2. PULL promotion
57
True or false: The relative emphasis given to the specific promotion tools differs for push and pull strategies
True
58
In the push strategy, who does the producer direct its marketing activities towards?
Toward channel members to induce them to carry the product and promote it to final consumer
59
What are the producer marketing activities in the push strategy?
Primarily personal selling and trade promotion
Used from the producer towards the retailers and wholesalers
60
Give an example of the push strategy?
John Deere does very little promoting of its lawn mowers, garden tractors, and other residential consumer products to final consumers. Instead, John Deere’s sales force works with
Lowe’s, Home Depot, independent dealers, and other channel members, who in turn push John Deere products to final consumers
61
What are the reseller marketing activities in the push strategy?
Personal selling, advertising,
sales promotion, other
Used by retailers and wholesalers towards consumers
62
What is the pull strategy?
A promotion strategy that calls for
spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a DEMAND vacuum that “pulls” the product through the channel
63
What producer marketing activities occur in the pull strategy
Product focuses advertising, sales promotion, online and social media, other on consumers
64
What channels does the demand vacuum go through in the pull strategy?
Producer pulls demand from retailers and wholesalers who originally pulled demand from consumers (after being induced by promotion activities)
65
What is an example of the pull strategy?
P&G promotes its Tide laundry products directly to consumers using TV and print ads, web and social media brand sites, and other channels. If the pull strategy is effective, consumers will then demand the brand from retailers such as Walmart, Shoppers Drug Mart, or Amazon, which will in turn demand it from P&G.
66
What is the ultimate goal of the pull strategy?
Under a pull strategy, consumer demand “pulls” the product through the channels
67
What kinds of companies only use push strategies?
Some industrial-goods companies
68
What kinds of companies only use pull strategies?
Some direct marketing companies
69
What kind of strategy (push or pull) do most large companies use?
Some combination of both
70
What is an example of a large company using a combination of both push and pull strategies?
P&G spends more than US$4.3 billion/year on U.S. consumer advertising to create brand preference and pull customers into stores that carry its products. Also uses its sales force and trade promotions to push its brands through the channels so that they will be available on store shelves when consumers come calling.
71
What considerations do companies make when designing their promotion mix strategies?
Consider many factors when designing their promotion mix strategies, including the type of product and market.
72
What types of markets does the importance of different promotion tools vary between?
Consumer and business markets
73
What type of promotion tool does a business-to-consumer company usually use?
Usually pull more, putting more of their funds into advertising, followed by sales promotion, personal selling, and then public relations
74
What type of promotion tool do business to business marketers usually use?
Tend to push more, putting more of their funds into personal selling,
followed by sales promotion, advertising, and public relations
75
Public relations, a major promotion tool, consists of what kind of activities?
Consists of activities designed to
engage and build good relations with the company’s various publics.
76
PR may include any or all of what 6 functions?
1. Press relations or press agency
2. Product and brand publicity
3. Public affairs
4. Lobbying
5. Investor relations
6. Development
77
What is the function "press relations or press agency" in PR?
Creating and placing newsworthy information in the news media to attract attention to a person, product, or service.
78
What is the function "product and brand publicity" in PR?
Publicizing specific products and brands.
79
What is the function "public affairs" in PR?
Building and maintaining national or local community relationships.
80
What is the function "lobbying" in PR?
Building and maintaining relationships with legislators and government officials to influence legislation and regulation.
81
What is the function "investor relations" in PR?
Maintaining relationships with shareholders and others in the
financial community.
82
What is the function "development" in PR?
Working with donors or members of nonprofit organizations to gain
financial or volunteer support.
83
What is PR used to promote?
Products, people, places, ideas, activities, organizations, and even nations
84
Companies use PR to build good relations with whom?
Consumers, investors, the media, and their communities
85
PR is often used to build support for what?
Build support for newsworthy company events and actions.
86
What is an example of a company using PR?
CVS Health announcing deciding to stop selling cigarettes and tobacco products even though it meant sacrificing $2 billion in revenue. CVS crafted a comprehensive “CVS Quits for Good” public relations campaign to tell consumers, Wall Street, and the health-care community that the decision would benefit both customers and the company
87
What is the difference in the power PR has to engage consumers and make a brand part of their lives and conversation compared to other promotional forms?
PR can have a strong impact at a much lower cost than advertising can. Interesting brand stories, events, videos, or other content can be picked up by different media or shared virally by consumers, giving it the same or even greater impact than advertising that would cost millions of dollars.
88
Give an example of how PR can cost less than advertising.
Burger King’s mascot appeared as part of Mayweather’s entourage during the walkout before the “Fight of the Century,” it caused quite a stir. Beyond the 4.4 million viewers who watched the fight, the King’s appearance was all over social media, generating buzz for the burger chain. Burger King paid May-weather an estimated US$1 million, but that was a small fraction of the US$5 million
companies spend for a single 30 sec Super Bowl ad.
89
Why is PR occasionally described as a "marketing stepchild"?
Because of its sometimes limited and scattered use
90
Where is the PR department typically found in companies?
PR department is often located at corporate headquarters or handled by a third-party agency.
91
Why may PR programs to support product marketing objectives be ignored?
PR staff are so busy dealing with various publics—stockholders, employees, legislators, and the press
92
What does "marketing managers and PR practitioners do not always speak the same language" mean?
Many PR practitioners see their jobs as simply communicating
Marketing managers tend to be much more interested in how advertising and PR affect brand building, sales and profits, and customer engagement and relationships.
93
How is PR being used in marketing situation changing?
Although PR's still only a smaller portion of the overall marketing budgets of many firms, It can be a powerful brand-building tool.
Especially today's digital age. Lines between advertising, PR, and other content are becoming more and more blurred
94
What is an example of PR, the internet, and marketing becoming more closely warped together?
Are brand websites, blogs, video content, and social media activities advertising, PR, or something else? All are marketing content.
95
As the use of earned and shared digital content grows rapidly, what are the effects on PR?
PR is playing a bigger role in marketing content management.
96
More than any other department, what has PR always been responsible for?
Creating relevant marketing content that draws consumers to a brand rather than pushing messages out.
97
How has the rise of social media brought PR to the forefront?
Moving PR professionals from the backroom, crafting press releases and organizing events, to the forefront of brand development and customer engagement,
98
Why do PR professionals have an edge over those in advertisement?
Because they have always had to earn attention, while [ad people] have bought attention
99
Who should PR work hand in hand with to help build customer engagement and relationships?
PR should work hand in hand with
advertising within an integrated marketing communications program
100
What are the 6 major tools PR uses?
1. News
2. Special events
3. Written materials
4. Audiovisual materials
5. Corporate identity materials
6. Public service activities
101
How does PR use news as a major tool?
PR professionals find or create favourable news about the company and its products or people. Sometimes news stories occur naturally; sometimes, the PR person can suggest events or activities that would create news
102
How does PR use special events as a major tool?
Ranging from news conferences and speeches, brand tours, and sponsorships to multimedia presentations or educational programs designed to reach and interest target publics.
103
How does PR use written materials as a major tool?
To reach and influence their
target markets. These materials include annual reports, brochures, articles, and company newsletters and magazines.
104
How does PR use audiovisual materials as a major tool?
Audiovisual materials such as videos, are being used increasingly as communication tools.
105
How does PR use corporate identity materials as a major tool?
Can also help create a corporate identity that the public immediately recognizes. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks all become marketing tools when they are attractive, distinctive, and memorable
106
How does PR use public service activities as a major tool?
Companies can improve public goodwill by contributing money and
time to public service activities
107
What kind of web and social media platforms serve as important PR channels?
Websites, blogs, and social media such as YouTube, Facebook, Instagram, Snapchat, Pinterest, and Twitter provide ways to reach and engage people
108
What are core PR strengths, that play well into the use of online, mobile, and social media?
Storytelling and engagement
109
What is considered when management decides when and how to use PR?
Management should set PR objectives, choose the PR messages and vehicles, implement the PR plan, and evaluate the results.
110
How can PR be blended into a company's marketing efforts?
Should be blended smoothly with other promotion activities within the company’s overall integrated marketing communications effort
