marketing mix-promotion and place chapter 20 Flashcards

Question

product placement advertising

Answer 1

products are featured in TV shows and films

Answer 2

the chosen shows or films will be targeted at a particular type of consumer this creates a desirable image if the product is associated with famous actors or shows it is not explicit advertising. some consumers assume the product is being used because it is desirable, not because a business has paid for the placement

Answer 3

the show, film or actors may become less popular it is very expensive if the show or film is well known

Answer 4

products are advertised at surprising and unconventional events to make the public take notice

Answer 5

it is low cost it can be creative, inventive and can appeal to young consumers it encourages word of mouth communication between potential consumers a staged event can receive free publicity from the media

Answer 6

the message may be misunderstood it may considered irresponsible and lead to negative backlash it may be remembered for the wrong reasons

Answer 7

this involve payment by a business to become associated with an event, an individual or a sports team. it could lead to the business logo appearing on a team's shirt for example

Answer 8

the good publicity of being associated with big sporting and other events global press and TV coverage of the largest events the success of the team or individual can lead to greatly increased interest in the brand

Answer 9

it can be very expensive, failure of the event, team or individual can reflect badly on the brand

Answer 10

the forms of communication that cost the most are not always the most effective. advertising method chosen depends on cost, the consumer profile of the target audience, the message and image to be communicated, legal constraints and other aspects of the marketing mix

Answer 11

marketing managers must compare the cost of each method, including the cost per target consumer. the use celebrities in adverts greatly increases the total cost. if a TV adverts cost $1m and 5 million people watch it then the cost per target consumer is $0.20.

Answer 12

marketing that uses the Internet and online based digital technologies such as desktop computers, mobile phones and other digital media and platforms to promote products and services. viral marketing through social media can be virtually cost free

Answer 13

advertising decisions must consider the target market. there is little point in advertising a new children's toy after 10:00pm. young consumers are likely to be most accessible via social media and digital marketing.

Answer 14

written forms of communication are likely to be most effective for giving detailed information about a product. this information can be referred to more than once by potential consumers.

Answer 15

a widespread ban on tobacco advertising in Formula One grand prix racing forced many sponsors to use other media for presenting their cigarette advertising. in some countries, there are restrictions on the use of TV advertising aimed at children, claiming that it exercises too much influence over young minds.

Answer 16

the links and integration between the other parts of the marketing mix and the advertising method chosen could be crucial to success. the use of exclusive and glossy women's magazines to advertise a new budget range of ready coked meals could be counter productive.

Answer 17

sales promotion generally aims to achieve short term increases in sales, where as advertising often aims to achieve returns in the long run through building customer awareness of and confidence in the product. a wide range of incentives and activities can be referred to as sales promotion like price offers, loyalty reward programmes, money-off coupons, pos displays in shops, Buy one get one free and games and competitions on packaging.

Answer 18

the final consumer, to encourage purchase the distribution channel like retailer to encourage stocking and display of the product

Answer 19

it is not just about informing consumers, in many cases, consumers already know about a product's existence, so any sales promotion campaign aims to stimulate consumers to try the product or buy more of it.

Answer 20

these are temporary reductions in price, also known as price discounting. the objective is to encourage existing customers to buy more and to attract new customers as the product now appears more competitive

Answer 21

price reductions will reduce the gross profits on each item sold there could be a negative impact on the brand's reputation from the discounted price

Answer 22

these are more versatile and better focused way of offering price discount. coupons can appear on the back of receipts, in newspaper adverts or on an existing pack of the product

Answer 23

these could just encourage consumers to buy what they would have bought anyway retailers may be surprised by the increase in demand and not hold enough inventory, leading to consumer disappointment the number of consumers using coupons might be low if the price reduction is small

Answer 24

the aim is to encourage repeat purchases and discourage consumers from buying from competitors. loyalty cards give the business much information about consumers' buying preferences, which helps in customer relationship marketing

Answer 25

the discount cuts the gross profits on each purchases there are administration cost most consumers now have many loyalty cards from different retailers, so their loyalty impact is reduced

Answer 26

these are offered when the receipt is returned to the manufacturer

Answer 27

these involve the consumer completing and posting a form, which might be a disincentive the delay before a refund is received my act disincentive

Answer 28

this encourages multiple purchases, which reduces the demand for competitors' products too

Answer 29

there could be substantial reduction in the gross profit margin. consumers may conclude that the normal price is too high. consumers may think goods are being sold off because they cannot be sold at normal prices , which may impact on reputation. current sales might increase, but future sales could fall as consumers have stocked up on the product.

Answer 30

maximum impact on consumer behavior is achieved by attractive, informative and well positioned displays in stores

Answer 31

the best display points are usually offered to the market leaders-products with high market share new products may struggle for the best positions in stores unless big discounts are offered to retailers

Answer 32

direct mail telemarketing personal selling

Answer 33

direct mail is sent out by post

Answer 34

this is low cost and well defined areas/regions can be targeted it is easy to evaluate the success of a campaign by checking response rates

Answer 35

many potential consumers now prefer digital communication the mailing may be viewed as junk mail and quickly thrown away

Answer 36

this includes all marketing activities conducted over the telephone, including selling, market researching and promoting products

Answer 37

telemarketing can be outsourced to an agency. they may charge for the cost of the script to be used and then on an hourly basis, or might charge for each cold call that leads to an interested potential customer being contacted again this is lower cost than personal selling it is easy to monitor the response/rejection rate

Answer 38

many consumers object to cold calling it is very easy to reject a telemarketing message

Answer 39

with this method, a sales person is employed to sell each individual customer

Answer 40

sales success rates are often high with skilled direct sales employees it is often used for expensive industrial products. this is often one of the key differences between consumer marketing and business marketing it is effective with expensive and complex products that require specialist knowledge

Answer 41

customers may complain about being pressured into buying, especially if the sales employees are paid a high bonus for each sale made sales employees need to be well trained . they should avoid selling to a reluctant consumer who later regret the decision this is a high cost method of promotion and selling

Answer 42

the promotion of products using digital technologies, mainly on the internet but also including mobile phones

Answer 43

it is the fastest growing form of promotion. new opportunities for using it are constantly being created. the promotion mix of most businesses is being directed increasingly to digital promotion and away from the traditional advertising.

Answer 44

social media marketing email marketing online advertising smartphone marketing search engine optimization viral marketing

Answer 45

not just a marketing channel but also a way for people to keep in touch for people to keep in touch with friends and family, read the latest news or follow topics they are interested in. there are many social media platforms to choose to use. most use more than one. promotion managers decide what platform is relevant to the target group of consumers and they are trying to communicate with. twitter and Facebook advertisements, hashtag campaigns and influencer marketing are among the most popular methods of scial media marketing

Answer 46

email marketing connects with customers within their own mailboxes. It is a well established method of increasing brand loyalty and selling more products to existing customers. businesses can reach out to customers through newsletter campaigns, purchase confirmation emails, thank you emails and email notifications about new products

Answer 47

displaying pop up banners or advertisements on other websites aiming at the same niche is the most common form of online advertising. businesses can use online platforms such as google AdSense that allows adverts to be automatically delivered to other content sites

Answer 48

one of the most important methods of digital promotion , especially to younger consumers. as well as sending text messages to subscribers, businesses can further appeal to potential consumers by providing them with free apps for all phone types. Apps can send real time push messages to consumers' phones when new products are available on the company website. messaging platforms also allow marketing teams to create marketing bot which are used to gain new customers

Answer 49

businesses that use ecommerce locate their websites on search engines. they need SEO to make sure that their content appears among the first results of a search. Without SEO, it is very difficult indeed for a business trading online to remain competitive. Several SEO methods can be used to ensure high ranking on a search engine results page. search engine algorithms are constantly changing and businesses need to update their SEO methods accordingly

Answer 50

the buying and selling of goods and services by businesses and consumers through an electronic medium

Answer 51

viral marketing makes use of all types of marketing. the essence of viral marketing us to create a post, video, meme or similar short form of content that spreads across the web like a virus. to make a successful viral marketing campaign, businesses promote the multiple channels over a short period of time. marketing managers try to identify individuals with high social networking potential, called influencers. the managers create a viral messages that appeal to the influencers. these have a high chance of being passed on to many people who may be impressed that the influencer has contacted them about the product

Answer 52

worldwide coverage relatively low cost easy to track and measure results personalization social media communication builds content marketing website convenience increases slaes

Answer 53

worldwide coverage relatively low cost easy to track and measure results personalization social media communication builds content marketing website convenience increases sales

Answer 54

a website allows businesses to find new markets and trade globally, increasing potential market size

Answer 55

a well planned and well targeted digital marketing campaign can reach the right customers at a much lower cost than traditional forms of advertising

Answer 56

web analytics and other techniques of measuring response rates make it easy to establish how effective a promotion campaign has been. detailed information about how customers use a website or respond to advertising is available, which helps to improve the effectiveness of future campaigns

Answer 57

this is a very important benefit of digital promotion. each customer can be made to feel that only they are being sent a special offer. the business's customer database needs to be linked to the website, then whenever someone visits the site, the business can greet them with targeted offers

Answer 58

involvement with social media and quick responses to customers' messages can build customer loyalty and create a reputation for being easy to converse with

Answer 59

digital marketing allows a business to create engaging campaigns using a content marketing. this means producing varied content such as images, videos and articles, which can help a business gain social currency, especially if it goes viral

Answer 60

the conversion rate of visits to website (when customers buy something) is higher than with other forms of selling. it is more convenient too, unlike other forms of media which require people to get up and make a phone call or got to a shop

Answer 61

time consuming skills and training global competition complaints and feedback

Answer 62

unless a digital promotion agency is used (which can be high cost), tasks such as optimizing online advertising campaigns and creating marketing content can be time consuming. the success of promotions needs to be judged against the cost of preparing them

Answer 63

employees must have up to date knowledge and expertise to carry out digital marketing with success. tools, platform and trends change rapidly. employees may need training to keep their skills at the right level

Answer 64

reaching a worldwide audience is easy but this means competitors can do so too. standing out clearly against a large number of competitors can be difficult and costly. search engine optimization is one way of trying to do this

Answer 65

unhappy customers can quickly send out negative messages about a business or its products. any negative feedback or criticism of a brand can be visible to the target audience through social media and review websites. it is essential for a business to respond quickly and effectively to such criticism

Answer 66

it is vital that marketing managers gather as much evidence as possible about the success (or failure) of existing promotion campaigns to allow them to take better decisions in the future. the best ways of assessing the success of promotions are: sales performance before and after the promotion campaign consumer awareness data consumer panels response rates to advertisements social media feedback

Answer 67

by comparing the sales of product before the campaign was launched, with the daily and weekly sales during and after the campaign

Answer 68

each week, market research agencies publish results of consumer recall or awareness tests, based on answers to a series of questions concerning the advertisements they have seen and responded to. this gives businesses rapid feedback on the progress of a promotion campaign

Answer 69

these are useful for giving qualitive feedback on the impact of promotions and the effectiveness of advertisements

Answer 70

newspaper and magazine adverts often have tear off slips for consumers to request more details. event TV adverts can ask for consumers to ring in, perhaps with the chance of winning a competition. websites can record the number of hits and video sharing sites can record the number of times an uploaded advert has been viewed

Answer 71

the rapid response rate of social media users to new products or new promotions is perhaps now the most widely used measure of marketing success or failure

Answer 72

the quality, design and color of materials used in packaging can have an important supportive role to play in the promotion of a product. cheap and unattractive packaging of goods such as clothes or chocolates will destroy any quality and status images that the firm is attempting to establish. distinctive packaging can help to form the basis of promotional theme, which will endure as long as the product. packaging can advances revolutionize the sale and promotion of products.

Answer 73

expensive and wasteful packaging may add unnecessarily to costs, which could reduce a product's competitiveness. with increasing environmental pressures, packaging that is seen to be too ostentatious or cannot be recycled may result in a negative consumer reaction. for this reason, the use of recycled and recyclable materials in packaging is increasing and this helps to support the image of sustainable brands. as with all other aspects of marketing, packaging decisions need to be blended with the overall objectives of the the business of the product

Answer 74

protect and contain the product, both during transportation and in stores give information-depending on the product- to consumers about the contents, ingredients, cooking instructions, assembly instructions and so on support the brand image of the product created by promotional campaigns make the product attractive and help the consumer to recognize it

Answer 75

aiding consumer recognition making the product distinctive from competitors giving the product an identity or personality that consumers can relate to

Answer 76

it increases the chances of brand recall by consumers it clearly differentiates the product from others including reinforcing the difference by promotion it allows for establishment of a family of closely associated products with the same brand name it reduces the responsiveness of consumer demand to a price increase. consumers often have preferences for well known brands and are prepared to pay a high price for them. this gives the business a high profit margin it increases consumer loyalty to brands, which is a major marketing benefit

Answer 77

an important part of the overall marketing strategy and there are specialist agencies that will advise firms on name suitability. these agencies check that the proposed name has not been registered by another company and that it does not have an unfortunate translation in other languages. they will survey consumers to gauge their reaction to the proposed brand name

Answer 78

these are product ranges launched by retailers under their own store name. it is rare for the retailers to actually produce their own goods. they purchase them from producers who add on the retailers' labels and brand names. often, the goods are made by leading manufacturers that have their own well known brands that compete with the own label brands

Answer 79

creates a more competitive environment for the well known brands, but it can also make use of spare manufacturing capacity. for the retail stores, this strategy gives them a reasonable quality product, bought with bulk discounts, over which they have full marketing control

Answer 80

the chain of intermediaries a product passes through form producer to final consumer

Answer 81

place decisions are about how products should pass from manufacturer to the their final customer. any business, whether it produces goods or provides services, needs to establish a distribution strategy. this explains how a product will move from the point of creation to points of consumption in an efficient and low cost manner so that it is convenient for the consumer to buy

Answer 82

getting the right product to the right consumer at the right time in a way that is most convenient to the consumer

Answer 83

this is a direct routine from manufacturer to consumer. there are no intermediaries, so this is referred to as the zero intermediary channel. the growth of the internet has led to a rapid rise in use of this channel of distribution. when the manufacturer whishes to keep complete control over the marketing mix, then direct routes are more likely to be used when the goods are bought infrequently but in large quantity, or when they are bulky and expensive to transport, or when they have been purpose built for a particular customer.

Answer 84

it has one intermediary usually a retailer. with the increasing size of many modern retailers, the single intermediary channel is becoming more common. big retailers have great purchasing power. they are able to arrange their own systems for storage and distribution to individual stores. this channel of distribution is usually used for consumer goods and where goods can be easily be transported to the whole country but could also be used by an agent selling industrial products to businesses.

Answer 85

This channel of distribution involves two intermediaries to transfer goods from the manufacturer to the customer. until recent developments in retailing and ecommerce, the traditional two intermediaries channel was the most common of all channels of distribution. it is still used when wholesalers buy from producers and sell to retailers

Answer 86

no mark up or profit margin is taken by intermediaries the producer has complete control over the marketing mix it is quicker than other channel so may lead to fresher food products direct contact with consumers offers useful market research

Answer 87

retailers display the products and offer after sales service retailers incur the cost of holding inventories retailers should be in locations that are convenient to consumers producers focus on production, not on selling the products to consumers

Answer 88

wholesalers hold the goods and buy i bulk from producers it reduces producers' inventory costs wholesalers pay for the costs of transport to retailers wholesalers buy in large quantities and sell in small quantities

Answer 89

all storage and inventory costs have to be paid by the producer there are no retail outlets so consumers cannot see and try before they buy it may not be convenient for consumers no after sales service is offered by shops it is expensive to deliver each item to consumers

Answer 90

the intermediary takes a profit markup, making the product more expensive to consumers producers lose control over the marketing mix the outlet is not exclusive as retailers sell competitors' products too producers pass on delivery costs to retailers

Answer 91

another intermediary takes a profit mark up, making the product more expensive consumers producers lose further control over the marketing mix it slows down the distribution chain

Answer 92

it is relatively inexpensive if the cost is compared to the consumers reached companies can reach a worldwide audience for a small proportion of traditional promotion budgets. Consumers interact with the websites and make purchases and leave important data about themselves. The internet is convenient for consumers to use if they have access to a computer. Businesses can keep accurate records on the number of clicks or visitors, and quickly measure the success rate of different web promotions. Computer and smartphone ownership is increasing in all countries of the world. Selling products on the internet involves lower fixed costs than traditional retail stores. Dynamic pricing - charging different prices to different consumers is easier.

Answer 93

Some countries have low-speed internet connections and, in poorer countries, computer ownership is not widespread. Consumers cannot touch, smell, feel or try on tangible goods before buying, which may limit their willingness to buy certain products online. Product returns may increase if consumers are dissatisfied with their purchases once they have been received. The cost and unreliability of postal services in some countries may reduce the cost advantage of internet selling. Websites must be kept up-to-date and user-friendly, and good websites can be expensive to develop. Worries about internet security (e.g. consumers may wonder who will use information about them or their credit card details) may reduce future growth potential.

Answer 94

Some countries have low-speed internet connections and, in poorer countries, computer ownership is not widespread. Consumers cannot touch, smell, feel or try on tangible goods before buying, which may limit their willingness to buy certain products online. Product returns may increase if consumers are dissatisfied with their purchases once they have been received. The cost and unreliability of postal services in some countries may reduce the cost advantage of internet selling. Websites must be kept up-to-date and user-friendly, and good websites can be expensive to develop. Worries about internet security (e.g. consumers may wonder who will use information about them or their credit card details) may reduce future growth potential.

Answer 95

Should the product be sold directly to customers or through retailers? How long should the channel be (i.e. how many intermediaries should there be)? In which locations should the product be made available? Should the internet (online selling) be the main channel? How much will it cost to keep the product inventory on store shelves and in warehouses? How much control does the business want to have over the marketing mix? How will the distribution channel integrate with other marketing-mix components?

Answer 96

the channel strategy must be integrated with the marketing objectives of the business consumers can benefit from easy access to products. this allows them to see and try products before they buy, makes purchasing easy and allows, if necessary for the return of goods manufacturers need outlets for their products that give a wide geographical market coverage. however they also want the desired image of the product to the promoted effectively retailers, which sell goods to the final consumer, add on a mark up to cover their costs and make a profit. if the price is very important to consumers, using few or no intermediaries is an advantage as the manufacturer should be able to charge a lower price

Answer 97

the delivery or distribution of digital media content such as video, TV programmes, films, software and video games

Answer 98

the activities that combine to achieve the efficient movement of finished products from the end of the production operation to the consumer

Answer 99

get their music distributed globally on platforms avoid the high costs of traditional physical distribution expand a global fan base keep 100% if the revenue earned achieve low carbon footprint method of distribution

Answer 100

the key marketing decisions complement each other and work together to give customers a consistent message about the product

Answer 101

based on marketing objectives and affordable withing the marketing budget integrated and consistent with each other and targeted at the appropriate consumers

Answer 102

the impact a product has on consumers is explained by a range of different messages before we decide on taking an action. consumers will avoid buying products with a confusing and inconsistent marketing mix. this results in low long term sales. far better to have a clear and unambiguous message about the product, relayed through all elements of the marketing mix. the best prepared marketing plans can be destroyed by just one part of the marketing mix not being consistent with the rest.

Answer 103

measurement of the amount of money you pay when a consumer clicks your ads

marketing mix-promotion and place chapter 20 Flashcards

(127 cards)