Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
42 Cards in this Set
- Front
- Back
Promotion
|
o Is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior
o Telling target customers that the right PRODUCT is available at the right PLACE at the right PRICE o Needs to reinforce differentiation and positioning of company |
|
Basic Types of Promoting:
|
1. Personal Selling
2. Mass Selling 3. Sales promotion • Typically use them in combination |
|
Personal Selling:
|
o Flexibility is its strength
o Involves direct spoken communication between sellers and potential customers o Can be expensive • Salespeople cost o Usually combined with sales promotion |
|
Mass Selling:
|
o Involves ADVERTISING and PUBLICITY
o Communicating with large numbers of potential customers at the same time. o Less flexible than personal selling o Use when target market is large and scattered • Can be less expensive in this case |
|
Advertising
|
the main form of mass selling
• Any paid form of non personal presentation of ideas, goods, or services by an identified sponsor • Traditional media: magazines, newspapers, radio, TV, signs, and direct mail • New media: internet • Firms spend the LEAST amount of $ on this |
|
Publicity
|
is any unpaid form of non-personal presentation of ideas, goods, or services
• Free • Avoids media costs • _____ people are paid though • Attracts attention to the firm and its offering without having to pay media costs • Examples: coverage in newspaper stories, magazines, television, getting celebrities to talk about product/company, YouTube videos |
|
Sales Promotion
|
refers to promotion activities—other than advertising, publicity and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.
• May be aimed at: • Consumers • Intermediaries • Firm’s own employees • Can be implemented quickly → get results sooner • = designed for immediate results • Actually costs more money than advertising: • Accumulation of coupons, sweepstakes trade shows etc. • Less is spent on advertising than personal selling or this • Tries to spark immediate interest |
|
Sales Managers
|
o Concerned with managing personal selling
o Build good distribution channels and implement PLACE policies o May also be in charge of advertising and sales promotion of small firm |
|
Advertising managers
|
o Manage their company’s mass-selling efforts—in TV, newspapers, magazines and other media
o Choose the right media and develop the ads o May also handle publicity or may be handled by outside agent or whoever handles: • Public relations |
|
Public relations
|
—communication with noncustomers, including labor, public interest groups, stockholders, and the government
|
|
Sales promotion managers
|
o Manage their company’s sales promotion effort
o If firms sales promotion spending is substantial, it should have a specific sales promotion manager o Firms may use inside and outside specialists |
|
integrated marketing communications
|
• Send a consistent and complete message with this
o –The intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message o Ex: GEICO • Sum is greater than its parts → commercials • Build on one another |
|
Basic promotion objectives:
|
1. Informing
2. Persuading 3. Reminding • All try to provide more information to the buyer • More effective to set more specific promotion objectives that state exactly whom you want to inform, persuade, remind, and why. |
|
Informing
|
educating
o Customers need to know about the product if they are going to buy it o objective: • Helps show that it meets consumer needs better than other products o Customers want to learn about a product before they buy it |
|
Persuading
|
usually becomes necessary
o Especially among competitively similar products o objective: • Means the firm will try to develop a favorable set of attitudes so customers will buy, and keep buying, its product • Usually tries to demonstrate how one brand is better than the next • Ex: Bounty paper towel demonstrations in commercials |
|
Reminding
|
may be enough, sometimes
o objective: • Suitable when a target customer already has a positive attitude about the firm’s marketing mix or a good relation with the firm • These loyal customers are targeted by competitors • Don’t want to lose them |
|
How Promotion objectives relate to adoption process:
|
o (How buyers adopt/reject a product)
o Informing and persuading = adoption o Reminding = confirming adoption |
|
AIDA model (and steps)
|
related to adoption process
1. To get Attention • Get consumers aware of the company’s offerings 2. To hold Interest • Give the communication a chance to build the consumers interest in the product 3. To arouse Desire • Affects the evaluation process, perhaps building preference 4. To obtain Action • Includes gaining trial, which may lead to a purchase decision |
|
communication process
|
—a source trying to reach a receiver with a message
o Source→Encoding→Message Channel → Decoding → Receiver → Feedback → Source etc. • Circle all leads to FEEDBACK and starts again • “Noise” in the middle |
|
source
|
sender of a message--trying to deliver a message to receiver
|
|
receiver
|
a potential customer
|
|
personal selling (with communication process)
|
• The source—the seller—can get immediate feedback from the receiver.
|
|
Mass selling (with communication process)
|
usually relies on marketing research or total sales figures for feedback—which can take too long
o Use toll-free numbers and websites to try and get direct-response feedback from consumers into their mass selling efforts |
|
Noise
|
—is any distraction that reduces the effectiveness of the communication process
• Ex: conversations and getting a snack during TV ads, looking at your phone during a salesperson presentation |
|
encoding
|
the source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver
|
|
Decoding
|
the receiver translating the message
|
|
Message channel
|
—the carrier of the message
• Voice—salesperson • Media—magazines, TV, e-mail, websites o Some ad methods work better than others • Ex: Dawn Dish soap→ commercial shows effectiveness more than an email about it would. |
|
Internet
|
• Most common and far-reaching message channel to use for search is the
|
|
Pushing
|
(a product through a channel)
• Means using normal promotion effort—personal selling, advertising, and sales promotion—to help sell the whole marketing mix to possible channel members • This approach emphasizes the importance of securing the wholehearted cooperation of channel members to promote the product in the channel and to the final user • Usually the responsibility of the producers but: • Wholesalers often handle some of the promotion to retailers • Retailers often handle promotion in their local market • Most effective when all of the individual messages are carefully integrated |
|
Pulling
|
• Getting customers to ask intermediaries for the product
• Use when getting little help from intermediaries |
|
The adoption curve
|
o Innovators→early adopters→ early majority→ late majority → Laggards or non adopters
• Shows when different groups accept ideas • Emphasizes the relations among groups and shows that individuals in some groups act as leaders in accepting a new idea • Promotion efforts usually need to change over time to adjust to differences among the adopter groups |
|
innovators
|
• don’t mind taking some risks
o the first to adopt • Eager to try a new idea and willing to take risks • Usually young and well educated • Likely to be mobile and have many contacts outside their local social group and community • Tend to rely on impersonal and scientific information sources or other innovators rather than salespeople • Business firms in this group are often specialized and willing to take the risk of doing something new |
|
Early adopters
|
often opinion leaders; respected by their peers and often are opinion leaders
• Tend to be younger, more mobile, and more creative than later adopters • Unlike innovators, they have fewer contacts outside their own social group or community • Business firms in this category also tend to be specialized • This one tends to have the greatest contact with salespeople • Their acceptance is crucial! → Marketers should be very concerned with attracting them • Spread word of mouth and advice among other customers o OPINION LEADERS HELP SPREAD THE WORD • Reviews/blogs • Online blogs = word of mouse |
|
Late majority
|
is cautious about new ideas.
• Often older and more set in their ways • Less likely to follow early adopters • Strong social pressure from their own peer group may be needed before they adopt a new product • Business firms in this group tend to be conservative, smaller-sized firms with little specialization • Makes little use of marketing sources of information—mass media and salespeople • Oriented more towards other late adopters rather than outside sources they don’t trust |
|
Laggards or non-adopters
|
hang onto tradition; prefer to do things the way they’ve been done in the past and are very suspicious to new ideas
• Tend to be older and less well educated • The smallest businesses with the least specialization often fit this category • They cling to the status quo and think it’s the safe way • Main source of information for laggards is other laggards • Bad news for marketers • May not pay to bother with this group |
|
Market introduction stage
|
—“this new idea is good”
o Must build primary demand • Ex: “smart” appliances and video phone service→ primary demand is just beginning to grow for them |
|
primary demand
|
—demand for the general product idea—not just for the company’s own brand
|
|
Marketing growth stage
|
—“our brand is the best”
o More competitors enter the market and promotion emphasis shifts from building primary demand to stimulating selective demand • Main job is to persuade customers to buy, and keep buying, the company’s product o Mass selling becomes more economical (more potential customers) o Salespeople and personal selling still important too→ expand # of outlets and cementing relationships with channel members |
|
selective demand
|
—demand for a company’s own brand
|
|
Market maturity stage
|
—“our brand is better, really”
o Mass selling and sales promotion may dominate • More aggressive personal selling • More advertising? • Total $$ allocated may rise o May have real advantage is a firm has high sales relative to competitors o Use of reminder type advertising o Some companies resort to price-cutting • May only temporarily increase the number of units sold • May reduce total revenue and money available for promotion • Competitors will retaliate with their own short term sales promotion like price-off coupons |
|
Sales decline stage
|
—“let’s tell those who still want our product”
o Cut costs to remain profitable = cut promotion spending o Need more targeted promotion to get those who still want product o Or spend more on promotion to try to save it |
|
task method
|
—basing the budget on the job to be done
• Helps you to set priorities so that the money you spend produces specific results most sensible approach |