M2 - 07 PROMOTION POLICY Flashcards Preview

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Flashcards in M2 - 07 PROMOTION POLICY Deck (32)
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1
Q

define Marketing Communications Mix

A
a companies total promotioal mix is also called its marketing communication mix. This is a Mix of -
1 - Personal Selling
2-  Direct Marketing,
3 - Advertising,
4 - Sales Promotion 
5 - and Public Relations 
used by any Organization to
pursue its Marketing Objectives. (promotion policy)
2
Q

define IMC

A

Integrated Marketing Communications

  • Concept under which a Company Integrates and Coordinates its Company Communications and Communication Channels to deliver a Clear, Consistent and Compelling message about the Organization and its Products.
  • Integrated marketing communications is an approach used by organizations to brand and coordinate their marketing efforts across multiple communication channels. As marketing efforts have shifted from mass advertising to niche marketing, companies have increasingly used IMC to develop more cost-effective campaigns that still deliver consumer value.
3
Q

Why is IMC getting more and more important?

A

recent shifts towards one to one marketing, information advances, and technology innovation have forced marketers to adopt a richer, but more fragmented media and promotion mixes to reach their diverse markets. to prevent chaos in this new environment, companies are adopting IMC so the company can work out the roles each promotional tool will play and to the extent they will be used.

  • Research and Improved Media led to Consumer Knowledge
    • Consumer Knowledge led to Market Segmentation
    • Segmentation led to Segmented Message (Promises) and Vehicles
    • Segmented Messages and Vehicles led to Specialized Marketers
    • Specialized Marketers may lead to Inconsistent Messages: RISK!!
4
Q

what are the different ways of setting a Communication Budget?

A
1 - Affordable Method
   • Spend as much as you can afford
2 - Percentage-of-sales Method
   • So you sell, so you get…
3 – Competitive-parity Method
    • Monkey see, monkey do
4 – Historic record Method
    • What my ancestors did
5 – Objective-and-Task Method
    • If my grandmother had wheels, she’d be a bicycle
5
Q

define PUSH STRATEGY

A

Using Promo Tools to force the Product through the Distribution Channel, starting from the Origin (Producer) and through its consecutive layers.
or

A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase.
- “Taking the product to the customer”

6
Q

describe how using the personal selling tool in the promo mix can persuasively communicate customer value.

A

the Personal Presentation of the Offering by the firm’s Sales Force, for making sales and building Customer Relationship can increase customer value. This is controlled by sales force management.

Personal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships.

7
Q

define sales force management

A

analyzing, planing, implementing, and controlling sales force activities.

8
Q

describe how using the sales promotion tool in the promo mix can persuasively communicate customer value.

A

Promotional tools are Marketing Activities create short term simulation for Consumer purchases and/or improve retailer or middlemen effectiveness and co-operation. Goals of this communication tool include increasing revenue and cash flow, attracting new customers and clearing out extra inventory.

-consumer promotions, business promotions, trade promotions…

9
Q

give an example of a price promotion a company would use to stimulate consumers.

A

Price promotions are a major category of sales promotions where companies reduce the selling price of a product or service to entice customers to buy.

  • Coupons and Cash refunds Offers
  • Price Packs / bulk sales
  • point of purchase discount
10
Q

describe how using the advertising tool in the promo mix can persuasively communicate customer value.

A

Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

The basic objectives of advertising is to inform [brand knowledge- uses, availability, price], to remind [brand awareness], and persuade possible customers [brand preference].

this is done by creating an advertising message strategy and a media strategy.

11
Q

describe the qualities a an advertising message strategy should have.

A

the first step in creating effective advertising is to plan a message strategy- the general message that will be communicated to consumers. in order to get a reaction from consumers, a message strategy should emphasis consumer benefit.

next, advertisers must develop a creative concept [the compelling big idea that will bring the advertising strategy to life in a distinctive and memorable way.

12
Q

what does the creative concept of an advertising message strategy have to do with advertising appeals?

A

the creative concept will drive the choice of specific appeals used in an advertising campaign. appeals should be:

  • meaningful
  • believable
  • distinctive
    • tell how the product is better than the competing brands.

so that the customer truly believes they will benefit from a product

13
Q

describe the 4 qualities a an advertising media strategy should have.

A
a media strategy should 
1 - define reach, frequency, and impact of target 
2 - choose among major media types 
3 -  select specific media vehicles 
4 - chose media timing
14
Q

what are the benefits and limitations of using television in an advertising promotion

A

+ good mass-market coverage, low cost per exposure, combine sight, sound and motion, appealing to the senses

– high absolute costs, high clutter, fleeting exposure, less audience selectivity

15
Q

define reach [step 1 in media strategy]

A

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.

16
Q

define frequency [step 1 in media strategy]

A

Frequency is a measure of how many times the average person in the target market is exposed to the message

17
Q

define impact [step 1 in media strategy]

A

Media impact is the qualitative value of a message exposure through a given medium. For example, for products that need to be demonstrated, messages on television may have more impact that messages on radio because television uses sight and sound.

18
Q

describe step 3, selecting media vehicles, in the media strategy process.

A

The media planner now must choose the best media vehicles – specific media within each general media type. For example, television vehicles include Scrubs, and News etc. Magazine vehicles include People, Cosmopolitan etc.

19
Q

describe step 4, deciding on media timing , in the media strategy process.

A

DECIDING ON MEDIA TIMING
The advertiser must also decide how to schedule the advertising over the course of a year.
The advertiser has to choose the pattern of the ads. Continuity means scheduling ads evenly within a given period. Pulsing means scheduling ads unevenly over a given time period.

20
Q

describe the percent of sales promotional budgeting method.

A

The simplest method for determining the promotion budget is often merely using a percentage of last year’s sales or the projected sales for the next year. This method does not take into account any changes in the market or unexpected circumstances. However, many firms use this method because it is simple and straightforward.

21
Q

describe the objective and task promotional budgeting method.

A

marketing managers first determine what they want to accomplish (objectives) with their communication. Then they determine what activities—commercials, sales promotions, and so on—are necessary to accomplish the objectives. Finally, they conduct research to figure out how much the activities, or tasks, cost in order to develop a budget.

22
Q

What does an advertising agency’s final presentation of a message strategy for a company include.

A

Advertising Agency will prepare the Message Strategy for you that will include

The Briefing Document:
– Objectives
– Strategy
– Target Group
– Main Benefit(s)
– Support
– Positioning & Tone
– USP

• The Pitch and Presentation
– Concept-Boards
– Story-Boards
– Mock-Ups

  • Pretests: Concept Test, Message Test, Copy Test
  • The final Decision
23
Q

What does an advertising agency’s final presentation of a media strategy for a company include.

A
* The Briefing Document:
– Objectives
– Communication Strategy
– Target Group
– Budget
• The pitch and Presentation
– Media Plan
– Campaign Optic
• Media Negotiation and Buying
• Sending Publishing Materials: Tapes, Final Artworks, Photomechanical…
24
Q

describe the use of PR in the promo mix.

A

PR is Marketing Activities that build good relationships with the Media, to help companies communicate messages to their publics (Customers, Shareholders, Employees, Government and General Public).

the basic objectives of PR are
– Create Public Awareness or the Company, Brand or Product
– Build Brand Image (Goodwill)
– Manage unfavorable rumors, stories or events (Crisis Communication)

25
Q

name some of the basic PR actions

A

– Press Releases
– investor relations
– product publicity
– Other written / audiovisual materials (annual reports, brochures…)
– Events (Press Presentations…)
– Contribution to Public Service Activities / Sponsorship
– Corporate Identity materials (Logos, business cards, uniforms…)
– Mobile Marketing / Road Shows
– social media

26
Q

what are the benefits of using PR in your promo mix

A
  • PR is very believable: news stories, features and events seem more real and convincing to readers than ads do.
  • Public relations can reach many prospects who avoid salespeople and advertisements, since the message gets to the buyers as ‘news’ rather than as a sales-directed communication.
  • And, like advertising, PR can dramatize a company or product. The Body Shop is one of the few international companies that have used public relations as a more effective alternative to mass TV advertising-
27
Q

define direct marketing

A

any direct communications with carefully targeted individuals to obtain an immediate response

Although there are many forms of direct marketing -direct mail, telemarketing, electronic marketing, online marketing and others-they all share four distinctive characteristics.

  • Direct marketing is non-public as the message is normally addressed to a specific person.
  • Direct marketing is immediate and customized, so messages can be prepared quickly and tailored to appeal to specific customers.
  • Direct marketing is interactive: it allows a dialogue between the communicator and the consumer, and messages can be altered depending on the consumer response.
28
Q

give examples of a push promotion strategy

A
  • Trade show promotions to encourage retailer demand
  • Direct selling to customers in showrooms or face to face
  • Negotiation with retailers to stock your product
  • Efficient supply chain allowing retailers an efficient supply
  • Packaging design to encourage purchase
    Point of sale displays
29
Q

define a pull promotion strategy

A

A pull strategy involves motivating customers to seek out your brand in an active process.

“Getting the customer to come to you”

examples -

  • Advertising and mass media promotion
  • Word of mouth referrals
  • Customer relationship management
  • Sales promotions and discounts
30
Q

what are the benefits and limitations using the internet as a media vehicle

A

Internet
+ high selectivity, low cost, immediacy, interactive capabilities

– small, demographically skewed audience, relatively low impact, audience controls exposure

31
Q

what should one consider when making an advertising budget

A

A brand’s advertising budget often depends on its stage in the product life cycle. New products need large advertising budgets to build awareness and to gain consumer trail. Mature brands require lower budgets as a ratio to sales.
Undifferentiated brands – those that closely resemble other brands in their product class (beer, soft drinks, laundry detergents) – may require heavy advertising to set them apart. When the product differs greatly from competitors, advertising can be used to point out the differences to consumers.

32
Q

define value proposition

A

the benefit offered by an organization’s product or service