Promotion Flashcards
(33 cards)
E-commerce
buying and selling (conducting business) over electronic network
E- tailing
electronic commerce used to sell goods and.or services online
E-marketing
synonymous with internet/ digital/ online marketing; using marketing principles and techniques via electronic media
Promotion
the creation and maintenance of communication with a target market
Promotion mix
a strategic mix of advertising, public relations, sales promotion, personal selling and direct marketing
Advertising
any paid form of non-personal communication about an organisation, product, service or idea by an identified sponsor
Product advertisements
inform
persuade
remind
institutional advertisements
build good will for an organization rather than promote a specific product
+ & -
Television
+ reaches extremely large audience, uses picture, print, sound, and motion for effect; can target specific audiences
- High cost to prepare and run ads; short exposure time and perishable message; difficult to convey complex information
+ & -
Radio
+ low cost, can target specific local audiences; ads can be places quickly; can use sound, humor and intimacy effectively
- no visual element; short run exposure time and perishable message; difficult to convey complex information
+ & -
Magazines
+ can target specific audiences, high quality colour, long life of ad, ads can be clipped and saved, can convey complex information
- Long time needed to place as, relatively high cost, competes for attention with other magazine features
+ & -
Newspapers
+ excellent coverage of local markets, ads can be placed and changed quickly, ads can be saved, quick consumer response, low cost
- ads compete for attention with other newspaper features, short life span, poor colour
+ & -
Yellow pages
excellent coverage of geographic segments, long use period, available 24 hours/ 365 days
- Proliferation of competitive directories in many markets, difficult to keep up to date
+ & -
Internet
+ video and audio capabilities, animation can capture attention, ads can be interactive and link to advertiser
- animation and interactivity require large files and more time to load, effectiveness is still uncertain
+ & -
Outdoor
+ low cost, local market focus, high variability, opportunity for repeat exposures
- messages must be short and simple, low selectivity of audience, criticized as a traffic hazard
Sales promotion
short term inducements
can be offered to both end consumers or intermediaries
can be consumer orientated or trade orientated
Consumer Orientated Sales Promo:
Coupons
Objective:
Stimulate demand
+: Encourage retailer support
-: Consumers delay purchases
Consumer Orientated Sales Promo:
Deals
Objective: Increase trial, retaliate against competitors’ actions
+: Reduce customer risk
-: consumers delay purchasers, reduce perceived product value
Consumer Orientated Sales Promo:
Premiums
Objective: Build goodwill
+: Consumers like free or reduced merch
-: consumers buy for premium not product
Consumer Orientated Sales Promo:
Contests
objective: increase consumer purchases, build business inventory
+: encourage consumer involvement with product
-: requires creative and analytical thinking
Consumer Orientated Sales Promo:
Sweepstakes
Objective: Encourage present customers to buy more, minimize brand switching
+: get customers to use the product and store more often
-: sales drop after sweepstakes
Consumer Orientated Sales Promo:
Samples
Objective: encourage new product trial
+: low risk for consumer
-: high cost for company
Consumer Orientated Sales Promo:
loyalty programs
Objective: encourage repeat purchases
+: help create loyalty
-: high cost for company
Consumer Orientated Sales Promo:
Point of Purchase displays
objective: increase product trial: provide in store support for other promotions
+: provide good product visibility
-: Hard to get retailer to allocate good traffic space
