EXAM 2 MKTG communication

Sales promotion

Sales promotion

A direct inducement that offers extra incentives anywhere along the marketing route to enhance or accelerate the product’s movement from producer to consumer

Sales promotion

Normally involves a direct inducenment (money, prizes, extra products, gifts)

Why should marketers should use it?

It stimulates demand, measurable results, lessons rish of purchase, encourage brand switching, promotes price orientation

Consumer oriented

Techiques that are used to stimulate demand in the consumer/household market

Trade oriented

Techniques aimed at the distribution channels

Consumer-oriented

Pull

Trade-oriented

Push

Coupons

Legal certifcates offered by manufacturers and retailers that grant specified savings on selected products when presented for redemption at the point of purchase

Sampling

Offering consumers a free trial of the product hoping to convert them to habitual use

Premiums

A tangible reward recived for performing a particular act, such as purchasing a prodict or visiting the point of purchase

Contest

A promotion device in which a prize is awarded to an entrant judged to have qualifies by virtue of superior skill

Sweepstake

A form of sales promotion that offers prizes based on a chance drawing of entrant’s names

Rebate

The practice in which manufacturers give cash discounts or reimbursements to consumers who submit proof of purchase

Point of sale

A display designed by the manufacturer and distributed to retailers in order to promote a particular brand or line of products

Price discount

An inmediate reduction in the price for the purchaser

Continuity program / loyalty program

A program that requires the customer to continue purchasing the product or service in order to recieve a reward

Specialty advertising

Similar to premiums but the consumer does not need to purchase anyting in order to receive the speciality item

Celebrity endorsements

A well known person using their fame to promote a product, service, idea or person.

Cause-related marketing

The public association of a for-profit company with a non-profit organization, intended to promote the company’s product or service and to raise money for the nonprofit

Tie-in promotions

sales promotion tool that is combined with a product of another noncompeting marketer

Product placement

The sales promotion technique of getting a marketer’s brand featured in movies and television shows.

Public Relations

a strategic communication process that builds mutually beneficial relationships between organizations and their public

General functions of public relations

Promote a product, promote goodwill, communicate with audiences, counter negative publicity, provide advice and councel.

Written communications

news release, fact sheets, speeches, advertisements, annual reports

Verbal communication

work with the media - Proactively and reactively attempt to get an organization included in media through publicity efforts

Act as the spokeperson for an organization

Planning

Conceptualize, organize and impletmet events to position an organization favorably

Researching

Understand what the public thinks about an organization and use that information to form opinion

Fundraising

Raise money for non-profits

Monitoring

The profession requieres many different skills depending of the type of organization and its publics

Subspecialties of PR

Consumer relations, Employee relations, Government affairs Investors/finantial relations, Community relations

Consumer Relations

Connecting with and working with an organization’s users

Employee relations

the ambassors for any organization

Government affairs

Working to communicate to the various government deparments and working within the government to communicate to constituencies

Investor/finantial relations

Combining the world of finance with public relations efforts

Community relation

Connecting with and working with an organization’s community

Publicity

A broad term that refers to the publication and broadcast of news about an organization or person for which time or space was not purchased

the term is often used interchangeably with public relations but they are not the same thing

General advertising

Any paid form of nonpersonal communications about an organization, product, service, or idea by an identified sponsor

Paid form of persuasive communication

A form of advertising that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers

Inform/educate

The purpose of advertising to provide information about availability, features, pricing, and comparison

Position in the consumers' minds

The purpose of advertising to differentiate one product from another and identify a market segment

Persuade/sell

The purpose of advertising to encourage purchase, support, or donation

U.S. spending on advertising in 1946

Slightly more than $3 billion

Total advertising expenditure for 2022

Over $300 billion in North America

Predominant media

TV, online, newspaper, radio, out-of-home, on-site, magazine, video, and more

Business-to-Consumer (B2C)

Advertising from an organization to a household user

Business-to-Business (B2B)

Advertising from a business to another business in an effort to promote a product/service for their own use or for another business or household consumer

Brand advertising

Promoting a product, service, person, or idea

Retail advertising

Advertising for national or local retail establishments (stores, restaurants, hotels, more)

Institutional advertising

Advertising that focuses on establishing a corporate identity or winning the public over to the organization's point of view

Non-profit advertising

Advertising used by non-profits to create awareness or solicit funds

Public Service advertising

Advertising that provides a message for a cause and can only be used by non-profits

Pros of advertising

Informs, builds the U.S. economy, provides jobs, and entertains

Cons of advertising

Makes products/services more expensive, builds a greed mentality, encourages overspending, intrudes on media programming, and wastes time

Copy

The words in an advertisement, including headlines, body, captions, and more

Visuals

Videos, photographs, illustrations, graphs, or other visual elements in an advertisement

Media selection

Choosing where to place the advertisement based on the marketer, budget, target audience, and purpose