1/124
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
---|
No study sessions yet.
reasons for the increase in sales promotion
growing power of retailers
declining brand loyalty
increased promotional sensitivity
brand proliferation
short-term focus
increased accountability
competition
growth of digital marketing
brand proliferation
occurs when a large company acquires or absorbs multiple smaller brands in similar market areas
trade oriented sales promotions
promotions directed to intermediaries in the marketing channel such as wholesalers, retailers, or distributors
trade oriented sales promotions objectives
obtain distribution for new products
maintain trade support for established brands
encourage retailers to display established brands
build retail inventories
types of trade oriented sales promotions
contest and incentives
trade allowances
display and point of purchase materials
sales training programs
trade shows
consumer oriented sales promotions
provides the customer with an immediate inducement to purchase a product
types of consumer oriented sales promotions
sampling
premiums
contest and sweepstakes
refunds and rebates
bonus packs
price off deals
loyalty programs
event marketing
free standing inserts (FSIs)
advertising booklet that contains consumer packaged-goods coupons offers
how is free standing inserts devilered
delivered with newspapers (usually in sunday editions) and also via direct mail
purpose of free standing inserts
efficient and affordable
sampling
giving some quantity of a product for no charge to indue trail
ex: door to door
couponing
oldest and most widely used sales promotion tool
ex: freestanding inserts
premiums
offer of an item of merchandise or service either free or at a low price
ex: free and self liquidating premiums
contest
consumers compete for prizes or money on basis of skills or ability
sweepstakes
promotion where winners are determined purely by chances
ex: games
refunds and rebates
offers by manufacturer to return a portion of purchase price
bonus packs
offer consumer extra amount of product at regular price by providing larger containers or extra units
price off deals
reduces price of the brand, offered on the package through specially marked price packs
loyalty programs
opportunity to accumulate points for continuing to purchase specific brands
ex: discounts, gifts, prizes, free items
event marketing
promotion that links company or brands to an event, promotions where a themed activity is developed to create experiences for consumers and promote product or service
ex: event sponsorship
contest and incentives
stimulate greater selling effort and support from reseller management or sales
ex: push money (pm)`
trade allowances
deal offered to encourage resellers to stock, promote, or display manufactures products
ex: buying, promotional, and slotting allowances
displays and point or purchase materials
many consumers make purchase decisions in the store
ex: planograms
sales training programs
for sales people to provide consumers with information about features, benefits, and advantages
ex: training classes, detailed manuals, product brochures, reference manuals and DVDs
trade shows
forum where manufactures can display products to current and prospective buyers
ex: new products, generate leads, develop and maintain relationships
failure fees
fee changed to cover cost associated with stocking maintaining inventories and then pulling product
sales promotion trap
If you consistently run promotions, your consumers may come to expect them and only buy products or services when they're on promotion
problems with contest and incentives
can cause conflict between retail sales personnel and management
purpose of loyalty programs
encourage consumers to use products or services on continual basis
how do hobbyists/professionals impact coupons, contest and sweepstakese?
presence of professional entrants defeats purpose of promotion
coupon usage remained high after recent recession - extreme couponing
product types that work best for sampling
products are of relatively low unit value, so don’t cost much
products are divisible and can be broken into small sizes that reflect the products features and benefits
purchase cycle is relatively short so consumer can soon purchase again
sampling pros
provides consumers risk-fee way to try new products
generates much higher trail rates than other sales promotion techniques
consumers experience the brand directly
sampling cons
brand must have unique or superior benefits
cost can be recovered only if consumers become regular users
may require larger amounts of product to produce favorable results
couponing pros
appeals to price sensitive customers
does not require retailers cooperation
reduces consumer’s perceived risk associated with trail of new brand
encourages repeat purchase
helps coax users to trade up to more expensive brands
couponing cons
estimating how many consumers will use coupon and when is difficult
less effective than sampling for inducing initial product trail in a short period
consumers already using the brand can still use coupons
low redemption rates and high costs
could result in misredemption
refunds pros
consumers are very responsive
create new users
encourage brand switching or repeat purchase behavior
perceived price reduction for consumers who plan to redeem but don’t
well promoted, high value rebate can increase sales significantly
refunds cons
delay and effort to obtain savings is a deterrent
rebates perceived as attempts to sell products that are not faring well
for small refunds, other promotional incentives are more effective
dependence on rebates leads to:
delayed purchases
purchase only if rebates are available
bonus packs pros
direct way to provide extra value
strong impact on purchase decision att time of purchase
effective defense against competitor’s promotion or new brand
may result in larger purchase orders and favorable display space in stores
bonus packs cons
require additional shelf space without providing extra profit margins for retailers
appeal primarily only to current users and promotion sensitive consumers
price off deals pros
ensure discounts reach consumers
present a readily apparent value to shoppers
encourage consumers to purchase larger quantities
price off deals cons
can create pricing and inventory problems
appeal primarily to regular users, not new users
much adhere to regulations set by federal trade commission
loyalty programs pros
encourage consumers to use products or services on continual basis
develop strong customer loyalty
help develop customer databases
loyalty programs cons
consumers drop out as it takes too long to accumulate reward points
many require smartphone apps
public relations
The management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance.
traditional role of PR
maintain mutually beneficial relationships between the organization and its publics
act as a marketing communications function
new role of PR
work together with marketing department
contribute to IMC process that is consistent with marketing goals
publicity
generation of news about a person, product, or service that appears in broadcast or print media
corporate advertising
advertising that describes a company, rather than its products, and that is intended to show the company in a positive way to the public
marketing public relations advantages
it is a cost effective way to reach the market
it is a highly targeted way to conduct public relations
it benefits from the endorsement of independent and objective third parties who have no association with the product
it achieves credibility
it supports advertising programs by making messages more credible
it breaks through the clutter
it circumvents consumer resistance to sales efforts
there can be improved media involvement among consumers
it can create influence among opinion leaders and trendsetters
it can improve ROI
marketing public relations cons
there is a lack of control over the media
it is difficult to tie in slogans and other advertising devices
media time and space are not guaranteed
there are no standard effectiveness measures
internal audiences
people who are connected to a firm with whom the firm communicates on a routine basis
examples of internal audiences
employees of the firm
stockholders and investor
community members
suppliers and customers
external audiences
people who are not closely connected with the organization
examples of external audiences
media
educators
civic and business organizations
governments
financial groups
tools of PR: press release
statement provided to the media
must be factual, true, and of interest to the medium and its audience
tools of PR: press conferences
delivering information by interacting directly with media
tools of PR: exclusives
offering one medium exclusive rights to the story
tools of PR: interviews
interactions involving a spokesperson answering questions directed toward him or her
tools of PR: community involvement
supporting and contributing to a community
tools of PR: internet
disseminate information electronically
tools of PR: social networks and blogs
online social platforms
digital public relations: intersection between traditional public relations actives and new digital marketing functions
how does publicity differ from public relations
being a short term strategy
not always being positive
not always being controlled or paid by the organization
video news release (VNR)
publicity piece produced by publicists so stations air it as a new story
marketers have control over time and place where information is released
advantages of publicity
substantial credibility
news value
significant word of mouth
perception of media endorsement
disadvantages of publicity
lack of control
timing
accuracy
advocacy advertising
spreading ideas and explaining controversial social issue of public importance
indirectly support sponsor’s interests
issue ads: sponsored by organization to bring attention to what they consider to be an important issue
advantages of corporate advertising
excellent vehicle for positioning the firm
takes advantage of benefits derived from public relations
reaches a selected target market
disadvantages of corporate advertising
questionable effectiveness
raises questions of constitutionality and ethics
cause related advertising
linking with nonprofit organizations as contributing sponsors
takes time and effort to be successful
image advertising
promotes organizations overall image
methods:
general image or positioning ads
sponsorships
recruiting
generating financial support
event sponsorships
sponsoring specific events or causes as part of a marketing strategy
builds equity and gains affinity with target audiences
characteristics of economic environment
stage of economic development
economic infrastructure
standard of living
per capita income
distribution of wealth
currency stability
exchange rates
characteristics of cultural environment
language
lifestyles
values
norms and customs
ethics and moral standards
taboos
demographic environment consists of what?
size of population
number of households
household size
age distribution
occupation distribution
education levels
employment rate
income levels
why companies go global
limited opportunities for expansion in domestic market
economies of scale
growth and profit opportunities
economic necessity
balance of trade deficit
ethnocentrism
culture stresses buying and using products from its home country; discourages supporting other countries products
standardized/global strategy
allows for a cohesive brand image across different markets
localized strategy
a unique market approach a company takes to address purchasing habits, customer behaviors and overall cultural differences in each country it works in
organizing for international advertising
centralization at home office headquarters
decentralization of decision making to local foreign markets
combination of the two
allows for consistency in company’s international advertising
permits local input and adaptation of the promotion program
centralization at home office headquarters
protest foreign investments and control marketing effort and brand image
decentralization of decision making to local foreign markets
local managers know the marketing situation in their countries
international media selection
has multi market coverage
primary focus has been magazines and newspapers
international sales promotions
economic development
market maturity
consumer perceptions
trade structure
legal restrictions and regulations
pattern advertising
ads follow basic approach, but themes, copy and visual elements adapted to differences in local markets
when is globalization appropriate?
brands or messages adapted for visual appeal
emotions such as joy, sentiment, excitement, pleasure
brands promoted with image campaigns that play to universal needs, values and emotions
jewelry, cosmetics, liquor, cigarettes
high tech and new products not steeped in cultural heritage
smart phones, personal computers, HDTV sets, video games, fitness trackers
products with nationalistic flavor if country has a reputation
country of origin effect
in global world, product origin may not be as relevant
products with universally similar tastes, interests, needs and values
wealthy (luxury products) teenagers
purpose of self regulation
way to limit government interference
better business bureau (BBB)
promotes fair advertising and selling practices across industries at local level
federal trade commission (FTC)
regulates advertising at federal level and determines whether it is truthful or deceptive
federal communications commission (FCC)
regulates broadcast communication
enforces laws governing the airing of offensive, indecent, and profane material
involved in issues affecting publicity and public relations
considering regulating use of product placements in television shows
the food and drug administration (FDA)
has authority over the labeling, packaging, branding, ingredient listing, and advertising of:
packaged foods
drug products
cosmetics
requires caution and warning labels on potentially hazardous products
can seize products on charges of false and misleading advertising
polices health-related claims and labeling on food products
regulates advertising and promotion of tobacco products
the U.S. postal service (USPS)
controls deceptive advertising by direct response advertisers
bureau of alcohol, tobacco, firearms and explosives (ATF)
regulates and collects tax for the liquor industry
regulates and controls advertising of alcoholic beverages through federal alcohol administrate
frist amendment
protects commercials speech
freedom of expression must be balanced against commercial speech
commercial speech
speech that promotes commercial transaction
central hudson test
determines restrictions on commercial speech
wheeler-lea amendment
empowered FTC to act if there was evidence of injury to the public
issue cease and desist orders and levy fines on violators
extended jurisdiction
how to determine unfairness on basis of trade practice that:
causes substantial physical or economic injury to consumers
could not reasonably be avoided by consumers
must not be outweighed by countervailing benefits to consumers or competition
deceptive advertising
advertising that is untrue or may mislead the consumer
puffery
deception
puffery
advertising that praises item with subjective opinions, superlatives, or exaggerations, and states no specific facts
ex: papa johns vs. domino
advertising substantiation
requires advertisers to substantiate their claims before ad appears