Topic 04-Promotional Decisions Flashcards Preview

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Flashcards in Topic 04-Promotional Decisions Deck (32)
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1

Elements of the Promotional Mix (10)

1) Sales Promotion
2) Advertising
3) Product Placement
4) Direct Marketing
5) PR
6) Event Sponsorships
7) Publicity
8) Personal Selling
9) Point of Purchase
10) Digital

2

Definition: Advertising

-Reaches masses of buyers at al low cost per exposure
-Builds long term image
-Can trigger quick scales
-Impersonal and lacks of the direkt persuasiveness of the sales perople

3

Definition: Product Placement

As the name suggests, product placement consists of a company placing a certain product in a movie, series or publication where the actors are seen using the product in one way or another.

4

Definition: Direct Marketing

Direct Markeing is targetet on individual customer or customer groups . That contains sending catalogues, letters, mails, text messages etc. A direct, individual contact is supposed to be established. But the direct marketing is not personalized.
ex.: furniture shop

5

Definition: PR (Public Relations)

-Highly connected with the image of the company
-PR involves word-of-mouth promotion and is often free or extremely low cost
-the customers are made to feel good about buying the product because the business supports a good cause, leading to the customers telling their friends and family about it.

6

Definition: Event Sponsorships

This can often be a win-win situation as a local team or event could profit off a big company whilst the company gets its name out there at the same time.

7

Definition: Publicity

Publicity can be both good or bad, but usually consists of creating a media hype about the product/service, leading to other peopple talking about the company once again being free promotion.

8

Definition: Personal Selling

-Involves 1-on-1 sales with a salesman to customer approach
-building customer-salesman relationship
-Customer can be persuaded
-For example this could be a car salesman in a car dealership. This approach allows all kinds of customer relationships to spring up, whilst the buyer feels a greater need to listen and respond even though it has to be said that this is the most expensive promotion tool.

9

Definition: Point of Purchase

Point of Purchase takes advantage of the consumer being at the store or at the place where they planned to purchase something else, but are lured in by other advertisements (at the counter for example).

10

Definition: Digital

This approach is becoming ever more important in the emerging digital world and consists of social media marketing, banners on websites or in-app advertisements.
-economical
-customizable and believable

11

Definition: Integrated marketing communications

This concept focuses on being consistent with one's marketing, so that the same thing is said on every medium. Although this can be incredibly hard to achieve, it should be seen as a goal for most businesses.

12

Stages of the basic communication model (6) + 1

1) Sender (Ad Agency, Marketing Dep.)
2) Encode (the idea gets converted into ads, words and pictures)
3) Choose message channel (in-stoer, TV, Radio, Website, etc.)
4) Decode (receiver has to decode/interprete the message)
5) Arrives at reciever (customer or consumer)
6) Reciever gives feedback (to sender)

Interference Noise around (friends, other ads, other)
->marketing has to catch the customer

13

Types of media (3) + explanation

1) Paid media
-traditional avertising (print, TV, radio, mail, display...)
2) Owned media
-corporate web site, blog, Facebook page, Instagram, campaign microsite...)
3) Earned media
-word of mouth, Comments on FB Twitter. review sites, forums

14

Lead customers through these stages (7)

1) Unawareness
2) Awareness
3) knowledge
4) Liking or Disliking
5) Preference
6) Conviction
7) Purchase

15

3 models for communication between marketers and consumers

1) One-to-many (Advertising, sales promotion, PR)
2) One-to-one (Database marketing, direct marketing, personal selling)
3) Many-to-many (Publicity, digital)
1. Listening
2. Sharing
3. Serving
4. Engaging
5. Educating

16

Basic communication strategies (2)

1) Push strategy
2) Pull strategy

17

Definition: Push Strategy

This strategy is used for pushing products and communication from the manufacturer to the consumer whilst convincing the wholesaler to stock the product. The wholesaler has to convince the retailer who sels to the customer.

18

Definition: Pull Strategy

This approach is in the direction from customer to manufacturer and the demand is created by customers. The advertising is directed to customers so that they demand the product at the retail outlet.

19

The 5 Ms of Advertising (5)

1) Mission (Set sales goals and advertising objectives)
2) Money (stages ins PLC, market share, competition, substitutability)
3) Message (What do we want to say with our marketing?)
4) Media (What time, what medium, frequency, location?)
5) Measurement (What was the impact?)

20

Advertising objectives tied to PLC

1) Introduction -> to inform
2) Growth -> to persuade
-personal selling to intermediaries
3) Maturity -> to remind
3) Decline -> little money spent for prom.

21

Definition Transactional Selling

Approach that focuses on making immediate sale with little concern for developing a long-term relationship with the customer

22

Definition Relationship Selling

Process by which a salesperson secures, develops, and maintains long-term, profitable customer relationships

23

The sales process (8)

1) Prospecting & Qualifying
2) Pre-approach
3) Approach
4) Need Assesment
5) Presentation/The pitch
6) meeting Objections
7) Closing
8) Follow up and Service

24

Definition Sales Promotion

-Short-term incentives to encourage sales of aproduct or a service
-to make the product known
ex.: coupons, displays, ecents, catalogues

25

Sales Promotion targets (4)

1) Final buyers - consumer promotions
2) Retailers and wholesalers - Trade promotions
3) Business customers - Business Promotions
4) Members of the sales force - Sales force promotions

26

Consumer Promotions

-direct promotion to customer to ecourage sales
-ex.: Coupons, events, collective stickers, raffles

27

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

28

Business Promotions

To generate business leads, stimulate purchases, reward customers, and motivate salespeople

29

Sales Force Promotions

To get more sales force support for current or new products and motivate salespeople to sign up new accounts

30

Objectives of PR (5)

1) Promote Goodwill
2) Promote a product or service
3) Prepare internal communications
4) Counteract negative publicity
5) lobby