Exam 4 MAR3023 FSU Brady

what a promotion is and understand what the purposes of promotion are?

Promotion - Encouragement of the process, growth, or acceptance of something

influencing, informing, or persuading a potential buyer's purchasing decision

Know the elements of the promotion mix (APPS) and be able to identify examples of each

Advertising- a paid, non-personal communication about an org. and its products transmitted to a target audience through mass media.

Personal Selling- a paid, personal communication that seeks to inform customers to persuade them to purchase product in an exchange situation

Public Relations- is a broad set of communication efforts used to create and maintain favorable relationships between an org and its stakeholders

Sales Promotion - an activity or material that acts as a direct inducement offering added value or incentive for the product to reseller, salespeople, or customers; free samples, games, rebates, sweepstakes, contests, premiums, coupons.

Know what integrated marketing communications (IMC) are and why companies use them

1. IMC- Coordination of promotion and marketing efforts for maximum impact

2. Ex: if Boston Red Sox steal a base Taco Bell gives customers a free taco.

Know the difference between the traditional promotion mix and IMC

Traditional - makes things sort of connected but still spread out

IMC- much more well connected

the goals of IMC and an example

1. Consistent Message to customers

2. Coordinate manage promotional efforts

3. Synchronization of promotional elements

4. Use more precisely targeted promotional tools

Ex: Coca-Cola Zero

Understand the difference between a push and a pull promotion strategy and be able to identify an example of each from a scenario

Push Policy- Promoting product only to the next institution down the marketing channel. Promotes to wholesalers> Retailers>Consumers

Ex: Trade Shoes, Spiffs (offering extra commission to retail employees to sell items)

Pull Policy- Promoting a product directly to consumers to develop strong demand that pulls product through marketing channel

Ex: Ford Australia only produces a car when is ordered by a customer

Understand the communication process and that messages are sent through channels and know what channels are

1.Sender/Source- person/org that has info to share

2.Sender/Source>Encode Info> Message Development> Media> Decoding> Feedback

3.Noise- Bad brand messaging.

4. Non Personal Channels- No personal contact with consumer (Print, Broadcast)

5. Personal Channels- Direct Contact (Direct selling, salespeople, WOM, Buzz Marketing)

6. BUZZ Marketing- A subset of viral marketing wherein companies hire socially active consumers to promote products to friends, relatives etc. without them knowing they work for said company.

the elements of the communication process: Source/sender -> encoding information -> message development -> media -> decoding -> feedback -> source/sender. Know what each of these are, parts of each, and what noise is.

1.Sender/Source- person/org that has info to share

2. Encoding- process of putting words, thoughts, messages together in symbolic, appealing way to consumers. (Symbols are a good example of this)

3. Decoding- Process of transforming the message back into thought.

4. Feedback- Receiver's response to the message

5.Noise- Bad brand messaging

the three parts/stages of response models

1. Cognitive Stage- The "thinking" stage. Where the receiver becomes aware of the message.

2. Selective Stage- The "Feeling" Stage. Where the receiver forms a liking or preference for the ad object

3. Behavioral Stage - The "Doing" Stage. Where the receiver acts on the preference.

what advertising is and what effective adverting can do for a company

1. Advertising - A paid form of non-personal communication that is transmitted to a target audience through mass media.

2. Can influence customers behavior throughout their lifetimes

all parts of the six point advertising strategy

1. Primary Purpose: What is the purpose of the ad?

2. Primary Benefit: What unique benefit can we offer our customers?

3. Secondary Benefit: What other key benefits will customers receive from our products and services?

4. Target Audience: At whom are we aiming this ad?

5. Audience Reaction: What response of we want from our audience?

6. Company Personality: What image do we want to convey in our ads?

Understand different advertising mediums and an example of each

Movies,TV,Video Games, Newspaper, Direct Mail, Magazines, Coupons, Flyers, Classified Ads, Sports

Know what advertising pervasiveness is and why it is so difficult for a company to get a customer to pay attention to their advertisement

1. Advertising Pervasiveness- the ability for a company to successfully spread their advertisement.

2. Hard because there are so many advertisements everywhere.

Product Advertising- Promotes the uses, features, and benefits of specific products

Pioneer/Primary Demand- Focuses on product category.

Ex: Got Milk? Beef

Advocacy Advertising- Conveys firms position on public issue

Ex: "We ID" at gas stations

Competitive Advertising - Points out a brand's advantages relative to competing brands

3 Types:

1. Comparative- Compares 2 or more brands

2. Reminder- Reminds customers of an established brand's characteristics and benefits

3. Reinforcement- Assures current users they have made the right choice.

Understand the different types of advertising and be able to recognize each one; think of an example of each one

Know what the next wave of advertising is and why

1.Mobile Advertising

2. Everyone has a smart phone

Understand new frontiers in advertising: What is the current state? Why is this not working, and What are companies doing that is new?

1. Current State- So much advertising clutter.

2. Advertainment- Let's entertain people then "by the way this is sponsored by..."

3. Branded Entertainment- Ex: Axe Prank Ad

Know the different advertising schedules and an example in which it would make sense to use each one

1. Continuous- Runs steadily throughout year. Good for continually used products

2. Flighting- Runs in Sports. Good for seasonal products

3. Pulsing- a combination. Runs steadily but with bursts at certain times. Ex: Doritos during Super Bowl.

Know how advertising is measured in reach, frequency, and effectiveness

1. Reach- % of consumers in the target audience exposed to a particular advertisement in a stated period

2. Frequency- # of times these targeted consumers are exposed to the advertisement.

3. Effectiveness-

Exposure 1- what is it?

Exposure 2- What of it?

Exposure 3- What is it's?

Pretest

Post Test (Recognition, recall, added recall

Know what Nielsen ratings are, as well as why and how they are used

Nielsen Ratings - audience measurement system designed to assess the size and composition of TV audiences

1. 116 million TV households in US.

2. One ratings point represents 1% of that number.

3. Used to use Audimeter and consumer diaries

4. Now uses People Meter to measure each households viewing habits

5. Program Rating = (HH tuned to show/Total US HH)

6. Share = (HH tuned to show/US HH using TV)

Understand print media and the use of advertising

1. 80% of US HH subscribe to or purchase magazines.

2. 54% of magazine revenue comes from ads

Know what Public Relations is and some companies that are successful in their PR efforts

1. Public Relations- Communication efforts used to create and maintain favorable relations between an org and stakeholders.

Ex: Starbucks, Palm, Botox, Segway

Know the differences between PR and publicity

Public relation comes from the firm. Publicity does not come from the firm and can be positive or negative.

Understand what personal selling is, why companies use it, and why it is so expensive compared to other promotional activities

1. Personal Selling- The use of personal communication skills to uncover needs or wants and provide solutions.

2. Because Personal Selling is more effective than traditional advertising.

3. It is more expensive because it is more individually geared and cost more money to run.

Know the factors affecting advertising vs. personal selling

1. Buyers information Needs

2. Size and importance of purchase

3. Distribution

4. Product Complexity

5. Postpurchase contact required.

Understand the process of personal selling from suspect to advocate

1.Suspect - Research>Identify> Qualify

2. Prospect - Research> Initial Contact> Qualify> Needs Identification> Commitment

3. Customer- Service>Needs Identification>Commitment

4. Client- Service>Needs Identification>Commitment

5. Advocate- Service>Needs Identification>Commitment

Understand how salespeople should plan and prepare and approach potential customers and typical approaches used

1.Identify key decision makers

2.Review account histories and problems

3.Contact other clients for information

4.Assess credit histories and problems

5.Prepare sales presentations

6.Identify product needs

7.Obtain relevant literature

1. Cold Call

Know how salespeople try to overcome customer objections

1. Anticipate and counter them before the prospect raises them

2.Handle objections as they arise

3. Handling Objections

a.Clarify

b.Respond

c. Confirm

Know tactics for closing the sale

1.Gaining commitment-

The stage in the personal selling process when the salesperson asks the prospect for a commitments leading to buying the product

2.Closing Tactics -

Used by dinosaurs***

Know percentage of promotional budgets used on sales promotions and why

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Know the four types of trade promotions and be able to identify an example of each

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Know the five types of sales promotions and be able to identify an example of each

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Understand why coupons are so popular and how widely used they are as a sales promotions

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Understand the demographics of coupon users and categories which have high or low coupon usage and why

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Understand the parts that advertising and sales play in the marketing mix

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Know what a price is and that it does not have to be monetary

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Know definitions and understand all of the pricing concepts

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Understand the way pricing is related to total revenue and profit and that price can be a good control for demand

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Know the difference between elastic and inelastic demand and a typical product whose demand would be elastic and inelastic

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Know and understand the determinates of elasticity

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Know the cost concepts

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Know how to calculate break-even point and what it means

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Understand what a marginal analysis is as well as what marginal cost and marginal revenue are

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Know all of the types of costs

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Understand what a reference price is and how people "know" how much something costs

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Know the specific price strategies framing and bundling , why they are used, and be able to recognize and example

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Understand the different pricing objectives and why firms might use each one

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Know the general pricing strategies skimming, penetration, and neutral and an example of each

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Know the fundamentals of setting prices: markup and perceived price

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Understand and be able to calculate markup as a percentage of cost and as a percentage of selling price

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Know what a perceived price is and why people pay different prices for the same item in different situations

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Know all pricing methods and when and why they might be used

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Understand the two general strategies for pricing new products and why they would be used for new products

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Understand Promotional pricing, product line pricing, psychological pricing, and online pricing

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Know the sub-types of each pricing type, an example, and why it would be used in that type of pricing. For example, why would prestige pricing be used and why would it be considered a type of psychological pricing?

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