Exam 4 Review

Promotion involves various forms of communication to ______, ______, or ______

Promotion involves various forms of communication to ______, ______, or ______

inform, persuade, or remind

promotion mix could include:

• digital and social media marketing

• advertising

• sales promotion

• public relations (PR)

• personal selling

Define Digital & Social Media Marketing

Promotion using digital technologies such as desktops, laptops, tablets, and smartphones that does not involve a salesperson. Often called interactive marketing, this approach enables customers to connect with a company directly in a two-way exchange.

Define Advertising

Paid form of relatively less personal marketing communications, often through a mass medium to one or more target markets. Ex: television, radio, magazines, newspapers, and outdoor billboards.

Define Sales Promotion

Provides an inducement for an end-user consumer to buy your product or for a salesperson or someone else in the channel to sell it. Designed to augment other forms of promotion; rarely used alone. Ex: Coupons, rebates, and sweepstakes.

Define Public Relations

Systematic approach to influencing attitudes, opinions, and behaviors of customers and others. Often executed through publicity, which is an unpaid and relatively less personal form of marketing communications usually through news stories and mentions at public events.

Define Personal Selling

One-to-One personal communication with a customer by a salesperson, either in-person or through other means.

What are the pros and cons of Digital and Social Media Marketing?

Pros

• message customization without high costs of personal selling

• strong relationship building, especially when customer can control the interaction

Cons

• spam and other unwanted correspondence when targeting is poorly executed

• reliance on CRM and database marketing requires constant updating

What are the pros and cons of Advertising?

Pros

• many media choices

• efficiently reaches large numbers of customers

• great creative flexibility

Cons

• shotgun approach reaches many outside the target

• over-saturation of ads lessens impact

• high production costs

What are the pros and cons of Sales Promotion?

Pros

• stimulates purchase directly through incentive to buy

• serves as an effective accompaniment to other promotion forms

Cons

• can lead customers to continually wait for next coupon, rebate, etc.

• brand may be impacted by price-cutting image

What are the pros and cons of Public Relations?

Pros

• unpaid communication seen as more credible than paid forms

• association of offering with quality media outlet enhances brand

Cons

• low control of how the message turns out

• highly labor intensive when monitoring PR campaigns

what are the pros and cons of Personal Selling

Pros

• strong two-way communication of ideas

• direct way to ease customer confusion and persuade purchase

Cons

• high cost per customer contact

• salesperson may go “off message” from brand to secure the sale

What are Promotional strategies?

Strategies that involve decisions about which combination of elements of the promotion mix best communicate with customers and potential customers

What are promotion campaigns?

Tools that track effectiveness and efficiency of the promotional strategies for a particular product or product line over a given time period

What are the three goals of Promotion?

• To Inform

• To Persuade

• To remind

What are some examples of the informing capability of promotion?

• indicate features when introducing new products or making product modifications

• provide explanation of product functionality

• articulate what a company and its brands stand for in order to develop a clear image

• discuss various uses and applications for the product

What are some examples of the persuading capability of promotion?

• impact customer perceptions of a product, especially in comparison to competitors’ products

• get customers to try a product, hopefully resulting in a more permanent switch from a competitor

• influence customer to purchase right now due to some benefit or need

• drive customers to seek more information online or through a salesperson

What are some examples of the reminding capability of promotion?

• maintain a customer relationship with a brand

• provide impetus for purchase brand on some impending event

What is the marketing manager’s role in promotional strategy?

the marketing manager needs to understand the basics of promotion to integrate the ad agencies and sales force’s contributions

What are the elements of the marketing manager’s role in promotional strategy?

• identify targets for promotion

• establish goals for promotion

• select the promotion mix

• develop the message

• select media for use in promotion

• prepare promotion budget

• establish measures of results

What is a push strategy?

A strategy with a focus on the channel of distribution and in getting the offering into the channel. Ex: Coca-Cola’s heavy investment in advertising and promotion to create top-down awareness and generate consumer demand.

What is a pull strategy?

A strategy with a focus of stimulating demand for an offering directly from the end user. Ex: Piezano pizza oven from Tik-Tok trying to stimulate demand from consumers.

What is internal marketing?

the application of marketing concepts within the organization

• knowledgeable employees better communicate the branding message (best brand ambassadors)

• HR departments help train employees in the brand’s message

Where does marketing management need to start?

Inside —> know your offerings, understand your customers, and effectively articulate the branding message

What is the Hierarchy of Effects Model also called?

AIDA model

Hierarchy of Effects (AIDA) Model.

Buyers often pass through purchase decision processes in three stages: cognitive (learn), affective (feel), and behavioral (do). The AIDA model is Attention - Interest - Desire - Action, where attention is the cognitive (learn) stage, interest and desire are the affective (feel) stages, and action is the behavioral (do) stage.

What are promotional examples of the Attention stage in the AIDA model?

Promotion is used to gain awareness with innovators and early adopters

• may have to spend heavily on promotion if category is not well-known

What are promotional examples of the Interest stage in the AIDA model?

Promotion is used to inform customer what the product can do for them

What are promotional examples of the desire stage in the AIDA model?

Examples of desire stage - promotion used to move customer past a “need” to “want” the product. Salespeople and customized direct/interactive marketing are used. Innovators and early adopters show off their products.

What are promotional examples of the action stage in the AIDA model?

Examples of action stage - sales promotions used to stimulate purchase and salespeople closing the sale

Define Digital Marketing

Using technologies like desktops, laptops, tablets, and smartphones to market value offerings. May be the most critical component of promotional strategy.

• Essential because customers control when, where, and how they interact with marketers

• Data collection is easier and less expensive

• More breadth and depth gives marketers a more holistic view of people

• Attribution identifies which media type drove the sale and giving it credit

What is paid media?

Marketing communication channels that require the marketer pays someone else for customer access. In digital marketing, access to paid media can generally be purchased on a per unit basis like cost-per-impression and cost-per-click.

Define cost-per-impression

marketing manager pays a set amount each time a customer is exposed to the promotion

Define cost-per-click

marketing manager pays a set amount each time a customer clicks on a link

What is owned media?

Marketing communications that the marketer’s organization has complete control over. Ex: content created on an organization’s website

What is earned media?

The case where either a customer or a commercial entity chooses to act as a marketing communication channel for the dissemination of information associated with the marketer’s organization at no cost.

Ex: When a customer shares a link to a blog post about a new product’s launch on a social network because she is excited about it.

What are the advantages of paid media?

• speed

• flexibility

• targeting capabilities

• scalability

• control

• measurability

What are the potential issues of paid media?

• difficulty standing out

• declining response rate

• potential credibility issues

What are the advantages of owned media?

• longevity

• flexibility

• ability to speak to niche audiences

• in depth

What are the potential issues of owned media?

• potential credibility issues

• potential for substantial development effort being required

• desired results may be achieved over longer time horizons

What are the advantages of earned media?

• credibility

• potential cost efficiencies

• transparency

what are the potential issues of earned media?

• lack of control

• communications and conversations may be negative

• value can be difficult to measure

What is digital advertising?

the creation and execution of advertisement via any form of digital media

what are the benefits of digital advertising?

• rich data allows for a granular view of the ad’s performance

• strategy can be quickly adjusted

• distribute different information to different customer groups

• ad expense is justified by targeting desired customers

What are digital ads?

Ads that are clearly distinguished from the webpage’s primary content

Ex: Interstitials and banner ads

What are banner ads?

Display ads that are boxes embedded into a website and can include graphics, text, videos, hyperlinks

click through rate is 4 out of 10,000

What are interstitials?

full page ads shown before the viewer is directed to their intended page visit

Define SEM

Search Engine Marketing involves search ads displayed typically at the top, along a column, or to the side of a search results. Marketers bid on specific keywords that are priced at cost-per-click, cost-per-impression, or cost-per-conversion; keywords may be associated with different stages of the buying process.

What are social network ads?

Display ads on various forms of social media like Facebook, Twitter, TikTok, Pinterest. These may resemble the way users communicate with each other while others look like typical display ads.

What are native ads?

Digital ads designed to fit the format and style of content that is offered through the website on which the ad is being displayed. Tend to be articles or posts that are of interest to the viewer. Organizations offering native ads let readers know they come from another source

What are some email best practices?

• balance the content of your newsletter to be 80% educational and 20% promotional

• set expectations on your ‘subscribe’ page

• get creative with email subject lines

• pick one primary call to action

What are some advantages of e-mail?

• the marketer controls the e-mail

• easy to target and customize

• immediate

• produces rich amount of data

What are the disadvantages of e-mail?

• easy to delete

• spam filters

• generational differences

What is can-spam act of 2003?

sets restrictions for email messaging

• don’t use misleading subject lines

• postal address must be included on all emails

• affirmative consent - prove the recipient opted in

• clear and conspicuous unsubscribe

• have a process to handle unsubscribers within 10 days

• don’t harvest email addresses or use automated ways to randomly generate awareness

• enforced by the federal trade commission

What is a website used for in promotions?

• performs role of a retail storefront

• most critical form of owned media

• attracts new customers and service existing ones

• primary point of connection with the customer(?)

what is a landing page?

any page the user gets to by following a hyperlink

Define SEO

Search Engine Optimization describes the different actions companies take to maximize the placement of their digital assets in relevant search engine results

• being displayed near the top of searches increases the chance of being found by potential customers and strengthening ties with existing ones

What is retargeting?

display ads for a given product on different websites after the customer has visited the website for a related product

What is mobile marketing?

Marketing of value offerings through a mobile communications device. A central aspect of digital marketing strategies.

• primarily useful with smartphones and tablets

• ads designed for small screens have challenges

• must be mobile-friendly

• m-commerce is key to customer experience

how is text messaging used in promotions?

SMS or short message service is used for instantly redeemable promotional offers, contest voting, sweepstakes participation, informational alerts, and many other real-time offers.

• good way to reach younger audiences

• simple to develop and use

• must have an opt-in or opt-out function

• don’t be intrusive

what are the best practices for text?

• offer exclusives you can’t get in store, in email print ads, etc

• financial alerts, travel alerts, and coupons of all kinds are well received via text

• don’t send after 9pm or before 11am

• day-parting is critical in SMS (prime shopping time or mealtime)

What is location-based targeting?

geolocation marketing is the use of geographic data to drive marketing messaging and other marketing management decisions

• provides promotions when users are nearby; get them to return

• can offer in-store promotions while shopping

• knowing the customer’s location can improve satisfaction by providing real-time service

what are branded mobile apps?

apps that display the brand’s name and logo

what are in-app ads?

ads displayed within an app; another tool for marketers

What apps offer opportunities for communication?

mobile game apps, social media apps, and non-branded productivity apps offer opportunities for communication

What is marketing mix modeling?

a technique which helps in quantifying the impact of several marketing inputs on sales and/or market share

• purpose of using MMM is to understand how much each marketing input contributes to sales, and how much to spend on each marketing input

Define Advertising

A paid form of relatively less personal marketing communications, often through a mass medium to one or more target markets.

What is advertising wearout?

When customers become bored with any given advertising campaign, which occurs relatively quickly and easily.

Beyond a certain ad spending level, diminishing returns tend to set in. Market share stops growing or even declines despite continued spending. This is known as ______ _______ _________

Advertising response function

What is a danger of advertising?

When marketing managers rely too much on it, to the exclusion of other promotional choices.

Why do marketers spend more on advertising early in the product life cycle?

Spending on promotional goals of informing and persuading have higher returns than equal spending on the goal of reminding.

What is institutional advertising?

Advertising that promotes an industry, company, family of brands, or some other issues broader than a specific product.

Ex: Got Milk?

How are institutional ads being used in the Olympics/ Special Olympics?

They are helping to build the corporate identity of P&G and enhance its brands through positive association.

What is product advertising?

advertising designed to increase purchase of a specific offering (good or service); most advertising is product advertising

What are the three types of product advertising?

• Pioneering

• Competitive

• Comparative

What is comparative product advertising?

When two or more brands are directly compared against each other on certain attributes.

When should comparative product advertising be used?

• if you are not the industry leader

• if you are using legitimate claims

What is pioneering product advertising?

Advertising used to stimulate primary demand, therefore, its employed during the introductory and early growth stages of the PLC when it is important to gain purchase from innovators and early adopters

When should pioneering product advertising be used?

• new products

• rational appeal

• intro and growth stages

What is competitive product advertising?

Advertising used to build sales of a specific brand, often focusing on emotional appeal in order to persuade and provide information. Building a positive customer attitude toward the brand is a key component of competitive advertising, and this approach is used during the growth and early maturity stages of the PLC.

When should competitive product advertising be used?

• emotional appeal

• when persuading and providing info

• during the growth and maturity stages

What is advertising execution?

the way an ad communicates the information and image

Compare and contrast Reach and Frequency.

Reach measures the percentage of the target market that is exposed to an advertisement, while frequency is the number of times a person in the target market was exposed to the message. Financially, the greater the reach and the higher the frequency, the more expensive overall the advertising campaign will be.

What is the role of the creative agency?

Creative agencies are utilized when advertising and PR, among other functions in marketing, are outsourced to them, allowing the organization to naturally focus on their own product or service expertise.

what are the major trends regarding creative agencies?

• Strategic partnerships between creative agencies and full-service web builders is a major trend today

• Boutique agencies have been very popular for the past 3-5 years. you can find a specialist agency for any nearly any aspect of marketing/advertising you want

What are some examples of advertising media?

• Television

• Radio

• Newspapers

• Magazines

• Outdoor (billboards)

• Direct Mail

• Internet and Social media

What are the pros and cons of television media?

Pros

• combines multimedia

• appeals to multiple senses

• works for both mass coverage and selected markets

• infomercial options

Cons

• impressions are fleeting

• short shelf life

• clutter of competing ads

• DVR effect —> ads getting cut out

• Streaming OTT effect

• High costs

What are the pros and cons of radio media?

Pros

• quick placement and high message immediacy

• easy selectivity by market and station programming

• low cost

• geographic flexibility

Cons

• audio only

• short shelf life

• tons of competition

What are the pros and cons of newspaper media?

Pros

• flexible

• timely

• highly credible

Cons

• short shelf life

• big city and national papers can be costly

• poor reproduction quality, especially in color

• low pass-along rate

what are the pros and cons of magazine media?

Pros

• many titles - high geographic, demographic, and lifestyle selectivity

• good reproduction quality and color

• high pass-along rate

Cons

• long lead time for ad placement due to production

• final location of ad within the publication often cannot be guaranteed

What are the pros and cons of outdoor media?

Pros

• repeat exposure in heavy traffic areas

• relatively low cost

• fewer competing ads

• easy geographic targeting

Cons

• space and structure limit creative execution

• sometimes requires longer-than-desired commitments to a location

• public discontent over environmental clutteer

What are the pros and cons of direct mail media?

Pros

• high audience selectivity

• creates feel of one-to-one marketing

• flexible

Cons

• overuse and “junk mail” image

• too many competing ads

• relatively high cost

What are the pros and cons and online and social media?

Pros

• interactive capabilities

• flexible

• timely

• low cost per exposure

Cons

• reader in control of exposure (click-through)

• spam

• variations in connectivity speed and computers

• privacy concerns

Define Sales promotion

A promotion mix element used at the action stage of the AIDA model that provides an inducement for an end-user consumer to buy a product (B2C) or for a salesperson or someone else in the channel to sell it (B2B). Stimulates “Buy Now!”.

Sales promotion consumers involves the following,

• used to increase product trial, spike distribution, shore up sagging sales, rekindle brand interest

• often many forms of sales promotion are used together

• when relied on too heavily, can backfire —> customers only buy when promotion is offered/leads to cheapening the brand and distrust by customers

What are some examples of consumer sales promotion options?

• product sampling

• coupons

• rebates

• contests and sweepstakes

• premiums

• multiple-purchase offers

• point-of-purchase materials

• product placements

• loyalty programs

What is product sampling?

a physical sample of the product is given to customers

what are coupons?

an instant price reduction at point of sale, available in print media, online, or in-store

what are rebates?

a price reduction for purchase of a specific product during a specific time period

what are contests and sweepstakes?

promotion that appeals to consumers’ sense of fun and luck

must legally be offered without a purchase requirement