Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
What is promotional strategy?
A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling and sales promotion.
What is the main function of a marketer's promotional strategy?
To convince target customers that the goods and services offered provide a competitive advantage over the competition. A competitive advantage is the set of unique features of a company and its products that are perceived as significant and superior to the competition.
What are four primary components of the promotional mix?
What are some pros and cons of Advertising?
Pros: Control over what consumer sees and, with enough funding, the ability to reach a widespread audience for a low cost per contact.
Cons: Extremely high overall cost. May have low credibility. Advertising wearout.
What does Public Relations encompass?
PR is the marketing function that evaluates public attitudes, id's areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance. Marketers use PR not only to maintain a positive image, but also to educate the public about the company's goals and objectives, introduce new products, and help support the sales effort.
What are some pros and cons involved with Public Relations?
Pros: Relatively high credibility. Fairly low cost.
Cons: Lack of control over message. Difficult to evaluate.
What is Personal Selling?
Personal Selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. Primarily used in B2B sales or large/expensive purchases.
What are some pros and cons of Personal Selling?
Pros: Message can be tailored to the receiver. Immediate feedback.
Cons: High cost per contact. Difficult to maintain consistent message across sales reps.
What is Sales Promotion?
All other marketing activities-excluding Ads, PR, and Personal Selling-that stimulate consumer purchasing and dealer effectiveness. (ex) Sephora University
What are some pros and cons of Sales Promotions, as well as some examples of such?
What are the two major categories of Communication and examples of each?
Interpersonal: Direct, face-to-face communication between two or more people. Salesperson to client.
Mass: Large audience. Tv ads.
What are the 5 main factors influencing the Promotional Mix decisions?
Nature of the Product
Stage in the Product Life Cycle
Target Market Characteristics
Push vs. Pull Strategy.
What three tasks does Promotion hope to perform one or more of?
Inform the target audience
Persuade the target audience
Remind the target audience
What is the goal of a promotion aimed at Informing the target audience?
Stimulate interest in a new product
Explain the new product's benefits
What is the goal of a promotion aimed at Persuading the target audience?
Change customers' perceptions
Create brand preference, brand switching
Encourage immediate action
What is the goal of a promotion aimed at Reminding the target audience?
Reinforce the brand awareness
Remind that the brand may be needed
What stage of the life cycle is each method of promotion most prominent?
Informing: early stages of the product life cycle
Persuading: upon entering the growth stage of the product life cycle or for very competitive mature products (soft drinks)
Reminding: the maturity stage of the life cycle
What does AIDA stand for and what does the concept represent?
It is a classic model for reaching promotional goals by using promotion to propel consumers along the four steps in the purchase-decision process.
Name 6 factors that determine which promotional mix will be chosen:
The nature of the product.
The stage in the product's life cycle.
Target market characteristics.
The type of buying decision.
Funds available for promotion.
Whether Push/Pull will be used.
Give an example of how the Nature of the Product could effect the Promotional Mix.
Producers of most business goods rely more heavily on personal selling because business products are often custom-tailored to the buyer's exact specifications and not well suited for mass promotion.
Give an example of how the Stage in the Product's Life Cycle could effect the Promotional Mix.
Preintroduction-small amts of advertising, light PR
Intro-Heavy AD & PR to raise awareness, Sales Promotion to induce trials, Personal Selling to obtain distribution
Growth- Heavy AD & PR to build brand loyalty, decreasing use of Sales Promotion, Personal Selling to maintain distribution
Maturity- ADs slightly decreased (more persuasive aand reminder in nature), increased use of Sales Promotion to build market share, Personal Selling to maintain distribution
Decline- AD & PR drastically decreased, Sales Promotion & Personal selling maintained at low levels.
Give an example of how theTarget Market Characteristics could effect the Promotional Mix.
Although industrial installations may be sold to well-educated ppl w/ extensive work experience, salespeople must be present to explain the product & work out purchase details - therefore Personal Selling
Give an example of howthe Type of Buying Decision could effect the Promotional Mix.
Routine vs. Complex!
In buying toothpaste, ADs and Sales Promotion are the most productive tools.
In buying a car, Personal selling is most effective.
Give an example of how Available Funds could effect the Promotional Mix.
Lots of $$$ = Lg mix of promotional elements
Lil $ = Reliance on free publicity and online strategies as well as PR efforts.
Explain a Push vs a Pull Strategy.
1) Marketer promotes to wholesaler
2) Wholesaler promotes to retailer
3) Retailer promotes to customer
4) Customer buys from retailer
1) Market promotes to customer
2) Customer demands products from retailer
3) Retailer demands products from Wholesaler
4) Wholesaler demands product from Marketer
What is IMC and how is it used?
Integrated Marketing Communications
It is the careful coordination of all promotional messages for a product or service to assure the consistency of messages at every contact point where a company meets the consumer.