Ch. 14 Mktg

Front 1

What are the two types of promotions

Back 1

o Advertising
• Purpose is to get someone to think/feel something about a product
o Direct marketing
• Purpose is to get someone to do something

Front 2

What are the 5 parts of the promotional mix

Back 2

Advertising
sales promotion (stimulus)
public relations
personal selling
integrative marketing communications

Front 3

Advertising

Back 3

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Traditional media (TV, radio, newspapers, magazines, etc) are most commonly used. One of the largest benefits is the ability to communicate to a large number of people at one time making cost per contact very low, but the total cost of the ad campaign is typically high

Front 4

Sales promotion (Stimulus)

Back 4

replace with STIMULUS because we’re trying to stimulate sales short-term
o Sales promotion def: Marketing activities – other than personal selling, advertising, and public relations – that stimulate consumer buying and dealer effectiveness
o Ex: Two guys want to do promotion. One guy says to do advertising and the other says to do a short-term promotion like temporary discounts. This short-term stimulus is better
o Include free samples, contests, premiums, trade shows, vacation giveaways, and coupons
o Can be aimed at end consumers, trade customers, or a company’s employees
o Ex: Sephora offers after hours cosmetics training to customers to promote new products
o Sales promotion complements advertising by yielding faster sales responses

Front 5

Public Relations

Back 5

Influencing how the public feels about a particular company

o PR changes the way consumers feel about the company and their products
o Ex: Companies are coming up with environmental causes
o Ex: Sponsorships of stadiums
o Ex: Sponsorships of events

Front 6

Personal selling

Back 6

A purchase situation involving a personal paid-for communication between two people in an attempt to influence each other
More important for business-to-business

Front 7

Integrative marketing communication

Back 7

Having a consistent message that’s sent to the right people at the right time

Front 8

Rules of the Integrative marketing communication

Back 8

Recognizing what the customer is buying not what we’re selling
Understanding the customer buying process
Understanding all the influencers
Recognizing all the contact points where customers may seek information
Selecting the right medium to carry the message at the right time
Making the message memorable/fresh

Front 9

Bloggs

Back 9

Blogs can be good and bad because consumers can talk trash about the company on a blog but the company can learn from these blogs what they are doing wrong, and what consumers want.

Front 10

What are the 5 goals of marketing communications?

Back 10

Create attention
Build positive images
Identify prospects
Channel relationships
Retain Customers

Front 11

1. create attention

Back 11

Inform markets about products, brands, stores or organizations.

Front 12

2. Build positive images

Back 12

Inform markets about products, brands, stores or organizations.

Front 13

3. Identify prospects

Back 13

Find out the names, addresses and possible needs of potential buyers.

Ex: Chuck Norris is Dave’s hero
Secret of the day: Dave can identify a target market and Chuck can’t

Front 14

4. Channel relationships

Back 14

Increase cooperation among channel members.

There are times manufacturers put out ads for products that are being sold by retailers

Front 15

5. Retain Customers

Back 15

Create value for customers, satisfy their wants and needs, and earn their loyalty.

Front 16

Communication Process

Back 16

Decide what we want the consumer to know about our product and what we should do to create that message.

Front 17

Decoding a message

Back 17

The consumer hopefully will decode the message companies send on their own.

Front 18

Encoding a message

Back 18

The conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs

Front 19

Decoding example

Back 19

It’s 2,000 years ago and there is a mean Russian czar. He is raping and pillaging villages. He is meaner than Dave, Osama Bin Laden, and Sandra Bullock’s husband. A town thinks they will be next so they send someone to plead with him to spare them. He says if you send someone to debate the czar’s high priest and win, then he will spare the town. They went to a local University to get a professor to do the job. All the professors were busy, then they went to the church and no one would do it. The village idiot says I will go!!!! So they get to the debate and the czar says you can’t use words you can only use symbols. The high priest drew a circle and the idiot pounded on the table and the priest gave up and said he couldn’t beat him. The Priest thought that the idiot was a genius for what he thought the idiot’s symbols meant, but in reality the idiot didn’t mean them in that way. The example demonstrated how oftentimes decoding is misinterpreted. So a lot of the time and research has to go into

Front 20

Push strategy

Back 20

Starts at the manufacturer
Ex: - I need to sell Coke. I go to Hy-Vee and say if I sell it to you cheaper will you buy it now. He says, oh yeah sure so he buys extra cases. So he needs to do something to sell those extra products because if we come back and try to sell to Hy-Vee again and he says No I still have extra cases we lose the business. This is a problem

Front 21

Pull Strategy

Back 21

Starts at the consumer
Sugary cereal companies use heavy advertising on children’s TV programs which “pulls” demand from children and encourages retailers to stock those cereals. Then the retailer orders the merchandise from the wholesaler who in turn places an order for the “pulled” merchandise from the manufacturer

Front 22

Do companies use one strategy over the other?

Back 22

No.
Ex: Pharmaceutical manufacturers used to have a push strategy by using pharmaceutical reps. They would go into offices with their product, food, and pens/pencils and say “you need to buy this product”. Now, they go directly to consumers to try to convince us to ask our doctors to prescribe us their medication. They do this because the pull strategy works.