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39 Cards in this Set
- Front
- Back
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The Role of Promotion |
Communications by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. |
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Communication Process |
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Components of promotion mix |
Advertising Public Relations Sales Promotion Personal Selling |
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AIDA |
Attention Interest |
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Promotional Goals |
Informing Persuading Reminding |
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factors affecting the promo mix |
nature of the product stage in PLC target market factors type of buying decision promotion funds push or pull strategy |
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Integrated Marketing Communications |
coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer |
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S-Curve |
compares return and money spent |
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Major types of Advertising |
Institutional: corporate identity, advocacy Product: pioneering, competitive, comparative |
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DAGMAR |
Define target audience Define desired percentage change Define the time for change |
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Creative Decisions |
Identify product benefits Develop and evaluate advert. appeals execute the message eval. the campaign's effectiveness |
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Media Scheduling |
Continuous Flighted Pulsing (cont.+flighted) Seasonal |
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Media Decisions in Advertising |
Monitored media Unmonitored media: direct mail, coupons, catalogs |
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Personal Relations |
Consumer Education Crisis Management |
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Marketing |
activity, set of instructions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. |
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Consumer sales promotions vs. trade sales promotions |
Pull vs. push and directed toward marketing channel |
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Objectives of sales promotion |
Loyal customers Competitor's customers Brand switchers Price buyers |
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Tools for consumer sales promotion |
Coupon's and Rebates Premiums Loyalty Marketing Programs Contests and Sweepstakes Sampling Point-of-Purchase Promotion |
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Trade Sales Promotion |
Trade Allowances/Discounts Push Money Training Free Merchandise Conventions and Trade Shows |
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Personal Selling |
F (features) A (advantage) B (benefits) |
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Relationship Selling |
similar to being a consultant |
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Steps in the selling process |
Generate leads Qualify leads Probe customer needs Develop/propose solutions Handle objections Close the sale Follow up |
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Importance of price |
Seller-price is revenue consumer-price is cost profit=revenue-expenses |
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What increases or decreases price? |
Flood of new products Increased availability of bargain-priced private and generic brands Price cutting as a strategy to maintain or regain market share Internet used for comparison shopping |
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Pricing Objectives |
Profit-oriented (long-term, profit max, satisfactory products, ROI) Sales oriented (volume, market share, sales max) Stauts quo (passive, easy) |
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The demand determinant of price |
price dependent of the demand for the good or service and cost to the seller for that good or servie |
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Demand |
Quantity of a product that will be offered to the market by a supplier or suppliers at various prices for a specifies period |
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Supply |
the quantity of a product that will be offered to the market by a supplier or suppliers at various prices for a specified period |
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Elasticity |
Elastic-consumers buy more or less of a product when the price changes Inelastic-no significantly affect demand Factors that affect elasticity of demand availability of substitutes price relative to purchasing power product durability a product's other assets rate of inflation |
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Determinants of price |
Product life cycle competition distribution strategy promotion strategy perceived quality |
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How to set a price on a good or service |
price skimming price penetration status quo |
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Legality and Ethics of price setting |
Unfair trade practices Price fixing Price Discrimination Predatory Pricing |
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Tactics for fine-tuning the base price |
Discounts Geographic pricing Special pricing tactics |
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Value-based pricing |
Quality discounts Cash discounts Functional discounts Seasonal discounts promotional allowances rebates zero percent financing value-based pricing |
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Geographic pricing |
FOB origin pricing uniform delivered pricing zone pricing freight absorption pricing basing-point pricing |
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other tactics |
Single-price tactics Flexible pricing professional services pricing Price lining Leader pricing Bait pricing Odd-even pricing Price bundling Two-part pricing |
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Product line pricing |
primary goal is to achieve maximum profits for the entire line |
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relationship among products |
complementary substitutes neutral |
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pricing during recessions |
cost-oriented tactics (high volume sales with low profit margin, eliminating product to reduce economies of scale) Delayed-quotation pricing Escalator pricing Added fees Demand oriented tactics (price shading) build market share(value based pricing, (un)bundle) negotiating with suppliers (offer help, reduce costs, cut number of suppliers) |
